Core Insights - The article highlights the strategic focus of Hema on the flower market, particularly the hydrangea, as it prepares for the peak sales season [1][2] - Hema has established its first hydrangea village in Yunnan, aiming to strengthen its supply chain control and competitive advantage in the flower sector [1][4] - The overall flower retail market in China is projected to reach a total scale of 220 billion yuan in 2024, with online consumption accounting for approximately 120 billion yuan [2] Company Strategy - Hema's business model has transitioned to a positive cycle, achieving its first annual adjusted EBITA profit in the fiscal year from April 2024 to March 2025, with a GMV exceeding 75 billion yuan [1] - The introduction of hydrangeas in 2021 has led to significant sales growth, with over 2 million units sold in a summer season, making it the highest repurchased flower at Hema [2][4] - Hema is continuously innovating its product offerings, introducing seasonal flowers like peach blossoms and tulips to enhance customer experience and drive sales [2][3] Market Dynamics - The flower market in China has seen rapid growth, with over 5 million industry workers and nearly 220,000 seedling flower enterprises, generating an annual output value of over 520 billion yuan [1][2] - Hema faces increasing competition from other platforms like Seven Fresh and Little Elephant Supermarket, prompting the company to innovate its products and business models [2] - The average wholesale price of hydrangeas has significantly decreased due to Hema's direct partnerships with quality cultivation bases, stabilizing market prices [4]

Core Viewpoint - The article highlights the rapid development of the flower industry in Lingyuan City, Liaoning Province, emphasizing its transformation into a modern agricultural hub and the integration of technology and digital solutions to enhance production and sales [1][5][14]. Industry Development - Lingyuan City is recognized as the largest production base for bulb flowers in northern China, with a flower planting area of 25,000 acres and an annual output value of 1 billion yuan [5]. - The city has over 20 varieties and 200 species of flowers, with lilies being particularly popular and exported to various domestic and international markets [5][9]. Technological Integration - The introduction of smart systems in greenhouses has allowed farmers to manage their operations more efficiently, increasing productivity and profitability [8][9]. - The establishment of a flower technology research center has facilitated the development of new lily varieties and the domestic production of seed bulbs, reducing reliance on imports [9]. Economic Impact - The flower industry has become a primary source of income for approximately 10,000 local households, significantly contributing to their economic well-being [5][14]. - The integration of the flower industry with e-commerce has enabled rapid distribution to nearly 200 cities across the country, enhancing market reach [13]. Cultural and Tourism Integration - Lingyuan City is exploring new development models by combining the flower industry with tourism and local culture, exemplified by the opening of the China Lily Expo Park [13][14]. - The annual "Lingyuan Lily Festival" promotes the flower industry and serves as a key component of the local cultural tourism sector [14].