The Fortune Wealth Memorial Park operates a cemetery in Sihui with a site area of approximately 518 mu agreed by the local government authorities. Development of the project is conducted by phases. Phase I of about 100mu has been completed with 5,485 grave plots, one mausoleum providing 550 niches, as well as an administrative and customer service building. Development of the remaining 418 mu will be divided into Phase II to Phase V.
Based on the existing master layout plan of Phase II to Phase V, about 41,815 grave plots will be constructed covering land area of 268 mu whereas road access and greenbelts will cover 150 mu. For Phase II and Phase III, land use rights of approximately 143 mu had been obtained, which will accommodate a total of 22,569 grave plots. For Phase IV and Phase V, land use rights of approximately 5.2 mu had been obtained and additional land quota of about 119.8 mu shall be required, for the construction of a total of 19,246 grave plots.
Fortune Wealth will follow-up with the local authorities for the grant of the remaining 119.8 mu land use rights. As at 31 March were recorded based 2020 , the cemetery assets(including non-controlling interests) on the book cost of about RMB623.3 million (equivalent toapproximately HK$679.7 million). Fortune Wealth has full license for sale not only in the PRC, but also includes overseas Chinese as well as residents of Hong Kong, Macau and Taiwan. As at 31 March 2020, about 3,465 grave plots and 535 niches were available for sale. Fortune Wealth will review its sales and marketing strategy and will take more proactive steps in its brand building and customer services.