IPO News | Global Horticulture reports that the Hong Kong Stock Exchange is the largest exporter among Chinese flower pot manufacturers

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on December 19, Global Horticulture Co., Ltd. (Global Horticulture for short) submitted a listing application to the main board of the Hong Kong Stock Exchange, and CMB International is its sole sponsor. The prospectus mentioned that according to Insight Consulting data, Global Horticulture is the world's largest manufacturer of decorative plastic flower pots in terms of revenue in 2024 (market share is 4.6%), and the decorative plastic flower pot industry is a subdivision of the decorative flower pot industry (accounting for about 51.1% of the decorative flower pot market in terms of revenue). Global Horticulture is also the largest exporter among Chinese flower pot manufacturers by revenue in 2024.

Company profile

According to the prospectus, Global Horticulture is a leading manufacturer and exporter of decorative horticultural products, focusing on decorative plastic flower pots suitable for indoor and outdoor use. Through long-term commercial relationships, the company supplies large mass goods and home improvement retailers in North America, including Lowe's, Walmart, Sam's Club and Costco (Costco). In the record period, most of the revenue came from sales to the US, as well as sales to Canada, Mexico, and Australia. Global Horticulture currently operates five production plants in China. Furthermore, the company has set up a production plant in Cambodia and is currently in the preparation phase. The company manages product design, mold development, material procurement and manufacturing processes in an integrated manner.

Global Horticulture's products include outdoor decorative flower pots (generally 12 inches or more in diameter), indoor decorative pots (generally 12 inches or less in diameter), and other horticultural products. With large-scale production capacity covering six production plants in China and Cambodia, the company benefits from cost-effective production, export resilience and deep interaction with customers, making it an important global player in the decorative plastic flower pot supply chain, and has a leading position in this field. Global Horticulture's products are EQA certified, audited by BSCI and SCAN programs, and meet RCS standards.

Global Horticulture mainly produces decorative plastic flower pots for indoor and outdoor use, which form the core of the company's product portfolio. Outdoor decorative flower pots are generally 12 inches or more in diameter, suitable for terraces and gardens, while indoor decorative flower pots are generally 12 inches or less in diameter for indoor decoration and interior decoration. In addition to flower pots, Global Horticulture also produces a series of other horticultural products, including simple flower pots, pressure-resistant resin flower pots, trays, self-watering flower pots, vertical gardening products and water pipe storage pots, which can cover a wider range of application scenarios, covering fields such as home gardening, landscape beautification and seasonal decoration.

Financial data

revenue

The Company recorded revenue of approximately HK$423 million, HK$358 million, HK$474 million and HK$186 million in 2022, 2023, 2024 and 2025 respectively for the six months ended June 30.

Profit for the year/period

The company recorded yearly/period profits of approximately HK$82.612 million, HK$797.25 million, HK$126.041 million and HK$33.88 million in 2022, 2023, 2024, and 2025 for the six months ended June 30, respectively.

Mōri

The company recorded gross profit of approximately HK$212 million, HK$200 million, HK$282 million and HK$112 million in 2022, 2023, 2024, and 2025 for the six months ended June 30, respectively.

Industry Overview

The global horticultural market has been booming over the past few years. According to retail sales statistics, the global horticultural market grew from US$91.6 billion in 2020 to US$104.6 billion in 2024, with a compound annual growth rate (CAGR) of 3.4%. This growth trajectory reflects people's enthusiasm for continued investment in home beautification and the “garden economy” around the world, particularly in the post-pandemic era.

In the future, the garden economy will continue to expand and drive steady growth in the global horticultural market. The overall market is expected to grow from US$104.6 billion in 2024 to US$128 billion in 2029, with a compound annual growth rate of 4.1% during this period. Among all product categories, horticultural flower pots account for about 7.1% of the market share, and the compound annual growth rate is expected to reach 6.9% from 2024 to 2029, which is the core driving force for overall market growth.

At the same time, with the rise of the “garden economy” and the increase in people's demand for beautifying the living environment, decorative gardening products are becoming more and more popular among global consumers. The global market for decorative horticultural products reached US$34 billion in 2024 and is expected to grow to US$47.1 billion by 2029. The compound annual growth rate during this period is about 6.7%, showing a strong and sustainable growth momentum. Among them, North America is the main core market, accounting for about 45.0% of the global market.

Board Information

The Board consists of six (6) directors, including three (3) executive directors and three (3) independent non-executive directors.

Shareholding structure

As of the last practical date, Mr. Lu Jingzhang held an interest in a total of 78.2% of the company's issued share capital and controlled such share capital. Therefore, Mr. Lu is the controlling shareholder.

Yusan International Limited and Mr. Choi Wai Shun own 50% and 50% of the interests of Yusan International Limited, respectively. Yusan International Limited is wholly owned by Mr. Choi Wai Shun. Therefore, as far as the securities and futures regulations are concerned, Yusan International Limited and Mr. Choi Wai Shun are each deemed to have an interest in shares held by Yusheng Industrial Co., Ltd.

Intermediary team

Sole sponsor: CMB International Finance Co., Ltd.

Industry Advisor: Insight Industry Consulting Co., Ltd.

Sole Sponsors and Legal Advisors: Hogan Lovell Law Firm, Jia Yuan Law Firm

Company Legal Advisors: German and International Limited Liability Partnership, Li Weibin Law Firm, Harney Westwood & Riegels, Rajah & Tann Sok & Heng Law Office, Nixon Peabody LLP

Auditor and reporting accountant: Deloitte Guan Huang Chen Fang

Compliance Advisor: Mango Finance Co., Ltd.