Core Insights - Hainan Wanning is emerging as a vibrant tourism destination, leveraging its coastal resources and diverse activities to attract young travelers [2][9] - The city is focusing on integrating sports and tourism, particularly through water sports like surfing, diving, and motorboating, to enhance its appeal [4][9] Tourism Development - Wanning has a coastline of 109 kilometers and over 200 days suitable for surfing each year, making it a prime location for water sports [3] - In the first half of 2025, Wanning received 5.21 million tourists, generating a total tourism expenditure of 4.96 billion yuan [3] - The city plans to host 45 international and national sports events, including surfing competitions, to solidify its status as a global surfing destination [3][4] Low-altitude Economy - Wanning is actively developing a low-altitude economy, offering experiences such as skydiving and helicopter tours, which are gaining popularity among young tourists [5][6] - The low-altitude tourism projects have shown explosive growth in visitor numbers and spending, becoming a significant driver for the local tourism industry [5] Coffee Industry - Wanning's coffee industry has developed a comprehensive supply chain, from cultivation to sales, with the Xingle Coffee Cultural Park recognized as a national AAA-level tourist attraction [8] - The city is promoting a coffee-themed tourism route that integrates cultural experiences and hands-on activities, enhancing visitor engagement with the coffee production process [8] - The local population has a high coffee consumption rate, with over 200 coffee shops in a town of just 30,000 residents, averaging more than 230 cups per person annually [8]

Financial Data and Key Metrics Changes - Revenue increased to $134 million, representing a 6% growth compared to the previous year [11] - Underlying EBITDA grew by 34% to $19.3 million, marking the strongest financial performance since the pandemic [11][12] - Underlying net profit after tax before goodwill impairment was $2.1 million, the first underlying profit since the pandemic [12] - Cash position improved by $2.8 million compared to the previous 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 [13] - Adventure Experiences segment saw a revenue growth of 7% and underlying EBITDA growth of 14%, with Treetops and Reef Unlimited leading the performance [17][18] - 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 [9] - The return of international visitation, particularly from the UK and Europe, was noted as a significant factor in the growth [31] Company Strategy and Development Direction - The company will focus on four pillars: improving business performance, sustaining trading momentum, future growth, and quality of the portfolio [26] - There is an emphasis on organic growth opportunities, particularly in the marine and treetops business units [28][29] - The company plans to continue reviewing business operations and asset returns, with a focus on enhancing existing experiences and developing new ones [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future due to improved operating margins and a better handle on business levers [38] - The outlook for inbound visitation to Australia and New Zealand is positive, with expectations of continued growth [39] - Management is focused on free cash flow generation and operational efficiencies to support future growth [32] 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][32] - The company announced an on-market share buyback and is assessing opportunities for the disposal of non-performing assets [6] Q&A Session Summary Question: What is driving the company's confidence? - The confidence stems from improved operating margins, increased direct bookings, and positive macro settings for international visitation [36][38] Question: How does the company manage customer volumes between locations? - The company can transfer customers and tandem masters between drop zones to optimize operations based on weather conditions [42] Question: What is the Board's rationale for declaring a dividend? - The Board felt confident in the trading performance and outlook for FY 2026, believing the company had the capacity to pay the dividend [58] 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 [61][62] Question: What is the expected CapEx outlook? - Maintenance CapEx is expected to remain stable, while growth CapEx will be driven by new investments like the vessel and hangar [66]

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 Insights - The low-altitude tourism sector is experiencing a surge in popularity, particularly among young people seeking unique experiences and emotional consumption [1][3][5] - The jump experience has become a new choice for stress relief and self-challenge, with an increasing number of participants during peak summer months [1][3] Industry Overview - The low-altitude economy is driven by both policy openness and new consumer demands, leading to a rise in extreme sports like skydiving across various regions in China [1][5] - The jump training industry has matured, with improvements in coach training, equipment safety, and operational management, fostering consumer trust [3][5] Market Potential - The Chinese low-altitude economy market is projected to reach 1.5 trillion yuan by 2025 and 3.5 trillion yuan by 2035, indicating significant growth potential [5] - Low-altitude tourism is being innovatively applied in the tourism sector, providing new experiences for tourists and stimulating regional economic development [5] Regional Development - Various regions in Zhejiang are developing attractive low-altitude tourism products that leverage local resources, such as paragliding and hot air ballooning [5] - The low-altitude tourism trend not only meets consumer demand for novelty but also injects new vitality into local economies [5]

Core Insights - Young consumers have become a significant force in the cultural tourism market, seeking unique life experiences and emotional value beyond traditional sightseeing [1][4] - Low-altitude tourism scenarios are not limited to scenic spots but can effectively channel traffic between different attractions, enhancing tourism consumption frequency [1][6] Group 1: Consumer Trends - The majority of visitors to the Sichuan aviation base are under 30 years old, with a 30% increase in visitor experiences year-on-year and a 40% increase during peak holiday periods [2][4] - The "Air View of Shihai" helicopter tour project in Yibin has become a new hotspot in the local cultural tourism market since its launch during the May Day holiday [3][4] Group 2: Technological Advancements - Advances in low-altitude flying technology have significantly reduced noise levels, improving the passenger experience [4][5] - The company plans to introduce new air routes to connect scenic spots, reducing travel time and enhancing the attractiveness of aerial views [5][6] Group 3: Market Development - The company aims to establish vertical take-off and landing networks in every town, offering flight training and themed flight experiences, which will also support emergency rescue services [7] - Sichuan has formed a low-altitude flight network that connects various regions, promoting the development of low-altitude tourism and short-distance transportation [7]

Core Viewpoint - Hainan is positioning itself as a premier tourist destination, leveraging its natural resources and cultural heritage to attract both domestic and international visitors, with a focus on enhancing the overall tourist experience and service quality [3][5][9]. Tourism Development - Hainan's tourism industry is one of its four pillar industries, and it is seen as a "golden business card" for the province [3][5]. - The province has a favorable climate for aviation, with over 300 days suitable for flight each year, making it a prime location for aerial tourism activities like skydiving [5][8]. - In 2024, Hainan is expected to receive 97.21 million tourists, a year-on-year increase of 8%, with total tourist spending surpassing 200 billion yuan, reaching 204.01 billion yuan, a 12.5% increase [8]. Diverse Tourist Experiences - Hainan is expanding its range of tourist activities, including low-altitude tourism options such as paragliding and skydiving, which have become increasingly popular among visitors [5][6]. - The province is promoting a blend of tourism with cultural performances, sports, and heritage, creating a rich tapestry of experiences for tourists [5][6]. Service Quality and Visitor Satisfaction - Hainan has implemented various initiatives to enhance visitor services, including a "reassuring travel" platform and luggage storage services, aimed at providing a seamless travel experience [6][8]. - The province has received positive feedback from returning visitors, indicating an improvement in the variety of attractions and services available [6]. Cultural Integration - Hainan is actively integrating cultural elements into its tourism offerings, with plans for over 2,000 exhibitions and educational activities in 2024, reflecting the growing influence of its cultural heritage [7][8]. - The province is focusing on deepening the connection between culture and tourism, showcasing local traditions and historical sites to enrich the visitor experience [7][9].