Core Viewpoint - Nanjing Agricultural University is leveraging genetic engineering and gene editing technologies to develop new chrysanthemum varieties, including potential "blue chrysanthemums" and "fluorescent chrysanthemums" that can glow in the dark [1][7][8] Group 1: New Varieties - The newly developed chrysanthemum varieties include "Nannong Danxin," "Nannong Fenying," and "Nannong Hongrui," which have unique flower shapes and colors, with some individual varieties achieving annual sales of millions of stems [3][5] - "Nannong Danxin" features a peach-pink flower color, while "Nannong Hongrui" has pink petals with a deep pink center, both noted for their excellent ornamental qualities [5][7] Group 2: Research and Development - The research team at Nanjing Agricultural University is addressing key issues in chrysanthemum cultivation, such as unclear mechanisms of important traits, limited commercial varieties, and poor resistance [7] - The team has made breakthroughs in gene editing and whole-genome selection, focusing on creating new varieties that are resistant, have longer blooming periods, and feature unique colors and shapes [7][8] Group 3: Genetic Resources - The Lake Shushu Chrysanthemum Base at Nanjing Agricultural University is home to the largest collection of chrysanthemum genetic resources globally, preserving over 5,300 resources, including wild species and various cultivated types [8] - This extensive genetic resource collection supports the breeding of new chrysanthemum varieties and innovation across the entire industry chain, reinforcing the foundation for a robust chrysanthemum industry in China [8]

Core Viewpoint - The article discusses the harvesting of chrysanthemums in Huaibei, Anhui, highlighting the agricultural practices and economic significance of this crop in the region [1][2][3][4][6] Group 1: Agricultural Practices - The harvesting process of chrysanthemums is described, emphasizing the techniques used by local farmers to ensure quality and yield [1][2] - The article notes the timing of the harvest, which is crucial for maximizing the flower's market value [3][4] Group 2: Economic Significance - Chrysanthemums are identified as a key cash crop for the local economy, contributing significantly to the income of farmers in Huaibei [1][6] - The demand for chrysanthemums in both domestic and international markets is mentioned, indicating a growing trend in consumption [2][4]

Financial Data and Key Metrics Changes - The group reported full year revenue of $430.5 million, reflecting an 8% year-on-year growth, exceeding updated guidance [10][2] - Group EBITDA reached $43.2 million, up 9% from the previous year, with cash conversion for the year at 96% [10][11] - The total dividends for the year increased to $0.14, up $0.02 from the previous year, resulting in a dividend yield of 7.8% [11][12] Business Line Data and Key Metrics Changes - Australian revenue increased by 6.4% year-on-year to $350.6 million, driven by strong demand for floral products in the supermarket channel [12][5] - China's revenue grew by 18% year-on-year to $101 million, primarily due to strong performance in the tulip category and increased export volumes [15][16] - EBITDA for Australia was $33.5 million, up 8.1% year-on-year, while China's EBITDA improved by 12.7% to $9.7 million [13][16] Market Data and Key Metrics Changes - In Australia, revenue growth for the first seven weeks of the new financial year was up 4%, indicating positive momentum for floral products [22] - In China, revenue for the first seven weeks of FY '26 was down 14% due to adverse weather conditions affecting volume [24] Company Strategy and Development Direction - The company is focusing on efficiency projects and the relocation of its West Australian site, with plans for modest capacity expansion in China [23][24] - The group has entered into a scheme of implementation agreement with Hasfarm Holdings Limited for acquisition, with shareholders set to receive $2.24 per share [4][10] Management's Comments on Operating Environment and Future Outlook - Management noted steady improvement in consumer demand and confidence, although demand remains patchy outside of event windows [4][6] - The outlook for Australian revenue growth remains positive, while China's performance is closely tied to consumer confidence and spending recovery [26][22] Other Important Information - The company is investing in automated bouquet lines to improve efficiency and has made progress on its ERP system upgrade [6][14] - The impact of the Queensland cyclone in March resulted in an estimated lost revenue of around $2 million [14] Q&A Session Summary Question: How goes the seller return mix, and are you seeing better grocery engagement? Is shrink under control? - Management expressed satisfaction with waste levels and noted an increase in seller return mix from 26% to 29% [28][30] Question: How has progress in new farms in China gone? Any risk of displacement of existing farms, and does the ROIC still stack up? - Management indicated that they are not pursuing new farms currently but are making modest adjustments to existing production [31][32] Question: What have you assumed regarding repricing in the Australian margin comments? - Management clarified that pricing in Australia is less relevant for margin attainment, focusing instead on maintaining target margin rates [34] Question: Bid price is materially below the IPO price. How was the price set? - Management refrained from commenting on valuation but noted that an independent expert will assess the bid [36][37]

Financial Performance - Group revenue reached $430.5 million, an increase of 8.2% compared to FY24[9, 26] - Group EBITDA amounted to $43.2 million, up 9.1% from FY24, exceeding the guidance range of $42 million to $43 million[9, 26] - NPATA increased by 11.4% to $10.2 million compared to FY24[26] - A final dividend of 9.0 cents fully franked was declared for FY25, bringing the total dividends for the year to 14.0 cents, representing a dividend yield of 7.8% based on the 30-day VWAP[10, 26] Segment Performance - Australia's revenue grew by 6.4% to $350.6 million, with EBITDA at $33.5 million and a margin of 9.6%, reflecting an 8.1% increase in EBITDA and a 20bp margin improvement[9, 13] - China's revenue increased by 18.3% to $101.0 million, with EBITDA at $9.7 million and a margin of 9.6%, representing a 12.7% increase in EBITDA but a 50bp margin contraction[10, 18] - Tulip revenue in China increased by approximately 40%, driven by both volume and ASP growth, while export volume and revenue rose by about 25%[20] Cash Flow and Capital Expenditure - Cash conversion stood at 96%, with a seasonal unwind of working capital achieved in the second half of the year[26, 44] - Capital expenditure for FY25 totaled $7.2 million, including $3.9 million in growth CAPEX and $3.2 million in maintenance CAPEX[46, 47] - Net debt to EBITDA ratio decreased to 1.5x from 1.7x in June 2024[52] Outlook - Revenue for the first seven weeks of FY26 is up 5% in Australia and down 14% in China compared to the same period in FY25[56, 58] - FY26 revenue growth is expected in both Australia and China, with Australia's margin rate anticipated to be in line with FY25[60]