Financial Data and Key Metrics Changes - Revenue increased to $134 million, representing a 6% growth compared to the previous year [10][4] - Underlying EBITDA grew by 34% to $19.3 million, marking the strongest financial performance since the pandemic [10][11] - Underlying net profit after tax before goodwill impairment was $2.1 million, the first underlying profit since the pandemic [11][4] - Cash position improved by $2.8 million year-over-year [4] Business Line Data and Key Metrics Changes - The Skydive segment reported a revenue growth of 5% and underlying EBITDA growth of 27%, driven by improved volumes and site efficiencies [12][11] - Adventure Experiences segment saw a revenue increase of 7% and underlying EBITDA growth of 14%, with Treetops and Reef Unlimited leading the performance [15][16] - All business units reported improved earnings performance compared to previous periods [7] Market Data and Key Metrics Changes - The overall improvement in domestic and international tourism in Australia and New Zealand was a key driver for the group's performance [8][11] - The return of international visitation, particularly from the UK and Europe, was noted as a significant factor in trading performance [28] Company Strategy and Development Direction - The company will focus on four key areas: business performance improvement, sustaining trading momentum, future growth, and quality of the portfolio [23][24] - Plans for organic growth include new products and expansion of existing experiences, particularly in the marine and treetops divisions [25][26] - The company is actively looking for bolt-on acquisitions in the Outdoor Adventure and Marine segments [27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the trading outlook due to improved operating margins and a focus on direct bookings [35][36] - The company is optimistic about the recovery of the international market, particularly from China, and expects continued growth in inbound visitation [36][40] - Management acknowledged the impact of weather on trading but remains confident in the overall business performance [71] Other Important Information - The Board declared a fully franked dividend of $0.25, the first since FY 2018, reflecting confidence in future trading momentum [4][29] - The company maintained a modest net debt and gearing level, with a closing cash balance of CAD 11.1 million [18] Q&A Session Summary Question: What is driving the company's confidence? - The confidence stems from improved operating margins, increased direct bookings, and a positive outlook for international visitation [35] Question: How does the company manage skydiving operations across different locations? - The company can transfer customers and tandem masters between locations to optimize operations based on weather conditions [38] Question: What is the rationale behind the dividend declaration? - The Board felt confident in the trading performance and outlook for FY 2026, believing the company has the capacity to pay the dividend [53] Question: What are the expectations for the Skydive segment's recovery? - The company remains confident in recovering to pre-COVID levels, despite some changes in the business structure [56] Question: How is the company managing capital expenditures? - Maintenance CapEx is driven by scheduled activities, while growth CapEx is focused on strategic investments to support future growth [60]

Core Viewpoint - The Hainan Province has released a three-year action plan (2025-2027) aimed at high-quality development of marine tourism, with a goal to upgrade marine tourism products by 2027 [1][2] Group 1: Development Goals - By 2027, Hainan aims to have 35 marine A-level tourist attractions, 8 tourist resorts, 20 intangible cultural heritage projects, 10 marine ranch tourism projects, over 100 coastal rural tourism resorts and points, and 500 marine-themed guesthouses [1] - The province targets to receive over 18 million tourists and achieve tourism revenue exceeding 40 billion yuan [1] Group 2: Implementation Actions - The action plan includes eight key initiatives, such as developing marine-themed A-level tourist attractions and encouraging the creation of national-level tourist resorts in areas like Sanya and Haikou [2] - Plans to enhance cruise tourism, explore international routes, and introduce themed cruise lines are also outlined [2] - The establishment of five yacht bases and a smart service platform for yacht management is part of the strategy [2] - Development of various marine activity bases, including surfing, diving, and fishing, is emphasized [2] - The plan promotes a "low-altitude + marine" tourism model and aims to create new coastal tourism experiences [2] Group 3: Support Mechanisms - Hainan will strengthen organizational leadership and establish a scheduling mechanism to ensure the plan's implementation [2] - Financial support will be increased, and social capital will be encouraged to participate in the development [2] - The province will focus on attracting and training marine tourism professionals to enhance talent availability [2]

Core Viewpoint - The acceleration of maritime economic connectivity and cooperation between China and ASEAN is expected to significantly impact sustainable economic development and promote a new regional maritime cooperation framework led by collaboration [1][2]. Group 1: Blue Economy as a Common Market - The construction of a China-ASEAN blue economy common market is seen as a "blue engine" for economic growth and regional economic integration [2][3]. - Currently, approximately 30% of ASEAN countries' GDP comes from the maritime economy, while China's maritime economy contributes about 8% to its GDP. By 2024, China's marine production value is projected to exceed 10 trillion yuan, growing by 5.9% year-on-year [4]. - Investment of $2 trillion to $3.7 trillion in blue economy sectors from 2020 to 2050 could yield net returns of $8.2 trillion to $22.8 trillion, with an investment return rate of 450% to 615% [4]. Group 2: Economic and Trade Cooperation - Since the signing of the China-ASEAN Free Trade Area 1.0 in 2010, trade cooperation has deepened, with China maintaining its position as ASEAN's largest trading partner for 16 consecutive years [5]. - In 2023, the trade volume between China and ASEAN increased 16.8 times over 20 years, but cooperation in the maritime sector remains fragmented [5]. - The share of marine product trade in total bilateral trade is only 0.6%, indicating significant potential for growth [5]. Group 3: Industry Transformation - Both China and ASEAN face the challenge of industrial transformation, particularly in fisheries, where they account for 80% of global aquaculture and 60% of global fish catch [6]. - The demand for renewable energy in the ASEAN region is expected to increase by 3 to 4 times by 2050, with an annual growth rate of about 6% in renewable power installations from 2021 to 2023 [6]. Group 4: Development of Marine Tourism - Developing maritime tourism cooperation is a significant step to meet market demand and promote connectivity in marine industries [6]. - The global cruise tourism market is expected to recover to a growth rate of about 5% by 2028, with China's cruise tourism market projected to reach 14 million passengers by 2030 [6]. Group 5: Marine Fisheries and Renewable Energy Markets - ASEAN is a major producer and exporter of marine products, with 25% of its total exports going to China in 2024 [8]. - China has invested significantly in renewable energy projects in ASEAN, accounting for about 60% of foreign public investment in the region from 2000 to 2020 [10]. Group 6: Infrastructure and Governance - The development of maritime infrastructure is crucial, as ASEAN countries' port infrastructure is lagging behind, with only 2 out of the top 20 global ports located in the region [15]. - The Regional Comprehensive Economic Partnership (RCEP) is seen as a foundational framework for integrating blue economy rules and standards [16]. - Establishing a cooperative governance framework for ecological resource protection is essential for sustainable development in the South China Sea [18].

Core Viewpoint - The acceleration of maritime economic connectivity and cooperation between China and ASEAN is expected to significantly impact sustainable economic development and promote a new regional maritime cooperation framework led by collaboration [1][2]. Group 1: Blue Economy as a Common Market - The construction of a China-ASEAN blue economy common market is seen as a "blue engine" for economic growth and regional economic integration [2][3]. - Currently, approximately 30% of ASEAN countries' GDP comes from the maritime economy, while China's maritime economy contributes about 8% to its GDP. By 2024, China's marine production value is projected to exceed 10 trillion yuan, growing by 5.9% year-on-year [4]. - Investment in blue economy sectors between 2020 and 2050 could yield net returns of $8.2 trillion to $22.8 trillion, with an investment return rate of 450% to 615% [4]. Group 2: Economic and Trade Cooperation - Since the signing of the China-ASEAN Free Trade Area 1.0 in 2010, trade cooperation has deepened, with China maintaining its position as ASEAN's largest trading partner for 16 consecutive years [5]. - In 2023, the trade volume between China and ASEAN increased 16.8 times over 20 years, but cooperation in the maritime sector remains fragmented [5]. - The share of marine product trade in total bilateral trade is only 0.6%, indicating significant potential for growth [5]. Group 3: Industry Transformation - Both China and ASEAN face the challenge of industry transformation, particularly in fisheries, where they account for 80% of global aquaculture and 60% of global fish catch [7]. - The demand for renewable energy in ASEAN is expected to increase by 3 to 4 times by 2050, with an average annual growth rate of 6% in renewable power installations from 2021 to 2023 [7]. Group 4: Promoting Marine Tourism - Developing marine tourism is a significant initiative to meet market demand and promote connectivity in the maritime sector [8][9]. - The global cruise tourism market is expected to recover to a growth rate of around 5% by 2028, with China's cruise tourism market projected to reach 14 million passengers by 2030 [9]. Group 5: Renewable Energy Cooperation - From 2000 to 2020, China's public investment in renewable energy projects in ASEAN accounted for about 60% of total foreign public investment received by ASEAN [12]. - In 2023, China's offshore wind power capacity represented 47% of the global total, highlighting the potential for collaborative development in renewable energy [12]. Group 6: Emerging Fields and New Markets - The global marine emerging industries are expected to grow by up to 107% over the next decade, with over 1,000 marine species in the South China Sea identified for medicinal use [15]. - Establishing marine innovation laboratories and public platforms for marine biological resources is recommended to facilitate resource sharing and research [15]. Group 7: Infrastructure and Governance - The development of maritime infrastructure, particularly ports, is crucial as ASEAN countries lag in infrastructure to meet growing trade demands [17]. - The Regional Comprehensive Economic Partnership (RCEP) is seen as a foundational framework for integrating maritime economic rules and standards [18]. Group 8: Hainan as a Hub - Hainan is positioned as a strategic hub for China-ASEAN maritime economic connectivity due to its location and policy advantages [21]. - Initiatives include establishing offshore warehouses and hosting trade expos to enhance trade and cultural exchanges between China and ASEAN [21].

Core Insights - The "14th Five-Year Plan" focuses on expanding consumption, new productive forces, common prosperity, deepening reforms, and green transformation, with an emphasis on emerging future industries, services, marine and green low-carbon sectors, and potential beneficiaries such as private tech firms and state-owned enterprises in emerging industries [1] Summary by Sections Economic Growth and Innovation - The GDP annual growth target for the "14th Five-Year Plan" period is expected to be set between 4.5% and 5.0%, with a bottom line of over 4.5% to ensure the successful completion of the 2035 long-term goals [2] - The innovation-driven target for the "14th Five-Year Plan" is anticipated to be significantly higher than that of the "13th Five-Year Plan," emphasizing the national innovation system and the vitality of various innovation entities and talent support [2] Common Prosperity and Reforms - The plan aims to enhance the well-being of citizens by adding new targets related to housing, healthcare, elderly care, and childcare, with a focus on investing more resources in human capital and public services [3] - Over 300 reform measures from the 20th National Congress are expected to be key focuses of the "14th Five-Year Plan," targeting the reduction of logistics costs and promoting a unified national market [4] Green Transformation - The green low-carbon goals may include a primary focus on controlling carbon emission intensity, with supplementary total control measures, aiming to reduce carbon emissions per unit of GDP [5] - The plan aims to achieve carbon peak by 2030, with clear frameworks for the development goals of energy-saving and environmental protection industries, new energy, and low-carbon transportation [9] Industry Opportunities - Emerging and future industries such as electronic information manufacturing, humanoid robots, and brain-computer interfaces are expected to see rapid market penetration and technological breakthroughs [6] - There is significant potential for growth in service consumption sectors like retail, healthcare, elderly care, telecommunications, and internet services, as well as in productive service industries like science and technology, finance, and information services [7] - The marine industry, particularly in marine tourism, transportation, shipbuilding, electricity, and biomedicine, is projected to accelerate due to favorable policies and market conditions [8]

Economic Growth and Policy Goals - The GDP annual growth target for the "15th Five-Year Plan" is set between 4.5% and 5.0%, with a minimum of 4.5% to ensure the 2035 vision is achieved[2]. - The focus on developing new productive forces will see a significant increase in innovation-driven targets compared to the "14th Five-Year Plan"[2]. - The plan aims to enhance living standards with new targets in housing, healthcare, and elderly care, emphasizing investment in human resources[2]. Reform and Green Transition - Over 300 reform measures from the 20th Central Committee will be prioritized in the "15th Five-Year Plan," focusing on comprehensive reforms[2]. - The green transition will shift from energy consumption control to carbon emission control, aiming for a 65% reduction in carbon intensity by 2030 compared to 2005 levels[19]. Industry Opportunities - Emerging industries such as electronic information manufacturing and humanoid robots are expected to see rapid market penetration and technological breakthroughs[3]. - The service sector, including retail, healthcare, and telecommunications, has significant growth potential, driven by rising consumer demand[3]. - The marine economy, particularly in tourism and transportation, is projected to grow rapidly, with a focus on policy support[3]. Risks and Challenges - There are risks related to misinterpretation of policies and unexpected changes in domestic and international macroeconomic conditions[39].

Core Viewpoint - The event held in Dongshan County, Fujian Province, focused on promoting marine culture and fisheries investment, showcasing the region's potential for economic development through marine resources and cultural heritage [1][3][7]. Group 1: Event Overview - The event took place from August 15 to 17, organized by various governmental and educational institutions, highlighting the importance of marine culture and fisheries [1]. - The theme of the event was "Cultural Prosperity at Sea, Striving for Marine Strength," featuring the awarding of "National Marine Awareness Education Base" and "Zero Carbon Conference" certifications [3]. Group 2: Key Activities - Significant activities included the release of the book "Silk Road Sail Song - A Brief History of Southeast Marine Civilization," which provides insights into the maritime history of the southeastern coast of China [3]. - A total of 10 marine fisheries projects were successfully signed, with a total investment amounting to 2.16 billion yuan, indicating substantial progress in industrial cooperation [3]. Group 3: Regional Development - Dongshan County is positioned as a key area for marine economic development, with initiatives in new industries, cultural tourism, and marine economy, including the establishment of marine biotechnology parks and economic industrial parks [4]. - The county aims to enhance its development prospects by leveraging its geographical and resource advantages, promoting high-quality growth in marine culture [4]. Group 4: Expert Insights - Experts from various institutions discussed themes related to China's maritime culture and economic strategies, providing historical perspectives and contemporary insights for Fujian's maritime ambitions [5]. - The discussions emphasized the integration of marine culture with economic development, aiming to foster a deeper connection between marine tourism and cultural exchange [7].

Core Insights - The National Development and Reform Commission of China is working on the "14th Five-Year" marine economic development plan, aiming to break through key core technologies in the marine sector, marking a new chapter in building a marine power [3] - In 2024, China's marine GDP is expected to exceed 10 trillion yuan, growing at a rate 0.9 percentage points higher than the overall GDP, with international shipping accounting for about one-third of the global total [3][7] - Guangdong province is projected to be the first in the country to surpass 2 trillion yuan in marine GDP, followed by Shandong, Fujian, Zhejiang, Shanghai, and Jiangsu, which are also significant marine economies [7][8] Marine Economic Development - Guangdong has established a Marine Strong Province Committee, aiming for innovation in mechanisms and systems to enhance marine economic growth [4] - The marine economy in Guangdong has maintained its position as the largest in the country for 30 consecutive years, with a marine GDP share of 14.1% in 2024 [6][8] - The marine economy's scale in the top three provinces accounts for half of the national total, showcasing distinct development characteristics and advantages [8] Key Statistics - In 2024, the marine GDP of China is projected to reach 10.54 trillion yuan, with Guangdong contributing significantly [5][7] - Guangdong's marine industry added value is expected to be 739.51 billion yuan in 2024, with a nominal growth rate of 7.4% [10] - The marine tourism sector is projected to see a decline of 110.01% in 2024, while other sectors like marine engineering and marine power are expected to grow [10][11] Emerging Industries - Guangdong has over 80,000 marine-related enterprises, with a stable growth of high-tech marine enterprises, contributing to the province's new productive forces in the marine economy [13] - The offshore wind power capacity in Guangdong is expected to exceed 12 million kilowatts in 2024, leading to double-digit growth in the marine power sector [14] - Significant advancements in deep-sea technology include the launch of the "Dream" deep-sea drilling vessel and the construction of the world's first deep-sea ecological system research facility [15][17]

Core Viewpoint - The company aims to enhance its existing tourism routes and explore new marine tourism opportunities, leveraging its resources and policy advantages in Hainan [1] Group 1: Company Initiatives - The company will continue to optimize its current Xisha tourism routes [1] - The company plans to introduce themed voyages and upgrade onshore activities [1] - The company is developing marine entertainment projects to enrich onboard and destination experiences [1] Group 2: Market Exploration - The company is actively exploring the opening of other marine tourism routes and tourism products [1]

Core Viewpoint - Haixia Co., Ltd. is positioned as a leading marine tourism operator in Hainan, emphasizing its established qualifications and experience in domestic marine tourism route operations [1] Company Overview - The company has a long-standing operation of the Sanya to Xisha route, showcasing a comprehensive management system in ship management, route operation, safety assurance, and tourism services [1] - Haixia Co., Ltd. has developed a significant brand advantage in the marine tourism sector [1] Future Plans - The company is actively conducting preliminary research on various marine tourism projects, recognizing new opportunities for the development of marine tourism in Hainan [1] - Future project approvals and implementations will be driven by project maturity, with a commitment to timely information disclosure [1] - The company aims to leverage its strengths to deepen its engagement in the marine tourism market and explore innovative products and service models [1] - Haixia Co., Ltd. is dedicated to contributing to the construction of Hainan as an international tourism consumption center and the high-quality development of marine tourism [1]