The world's largest decorative plastic flower pot manufacturer, Global Garden, is applying for a listing in Hong Kong, with over 90% of its revenue coming from the United States, and clients including Lowes, Walmart, and Costco Wholesale.
<h4>Key Points:</h4>
<ul>
<li>The company's revenue and net profit both declined in the first half of the year.</li>
<li>Focused on the U.S. market, products are not affected by tariffs.</li>
</ul>
Bai Xinrui
China has long been known as the world's factory, holding a leading advantage in multiple manufacturing industries. Global Garden Co., Ltd., which specializes in decorative plastic flower pots suitable for indoor and outdoor use, is the world's largest manufacturer of decorative plastic flower pots and has recently submitted its listing application documents.
Global Garden was founded in 2004 by the current chairman and CEO, Lu Jingzhang, who previously worked as a programmer. He recognized the potential of the decorative gardening industry and began producing gardening products in Shenzhen in 2006, starting direct sales to major U.S. retailers in 2011. Lu Jingzhang is the largest shareholder before the listing, holding 78.2% of Global Garden's shares.
The group's products include outdoor and indoor decorative plastic flower pots, accounting for 65.3% and 21% of revenue in the first half of the year, respectively. Outdoor decorative flower pots generally have a diameter of over 12 inches, suitable for patios and gardens. Indoor decorative flower pots typically have a diameter of less than 12 inches, used for indoor decoration and interior display.
The vast majority of the company's revenue comes from the U.S. market, accounting for over 90% of the group's revenue from 2022 to the first half of 2025, establishing long-term partnerships with leading U.S. retailers, including Lowes (LOW.US), Walmart (WMT.US), Costco Wholesale (COST.US), and Home Depot (HD.US). Global Garden supplies decorative plastic flower pots and gardening products to retailers on a B2B (business-to-business) basis and does not sell directly to end consumers.
<h4>Strong Growth in the U.S. Gardening Market</h4>
Undeniably, the U.S. gardening market is vast, with over 55% of households having gardens or yards. The retail sales of decorative gardening pots alone have reached $1.5 billion, and it is expected to grow at a compound annual growth rate of 6.1% from 2024 to 2029, with the entire market likely reaching $2 billion by 2029.
Especially with the increasing urban population density, gardening has gradually become an important way to relieve stress and enhance mental health. In 2023, 81% of U.S. households participated in gardening activities, which is 10 percentage points higher than before the pandemic, indicating a growing consumer preference for creating a natural atmosphere and sustainable lifestyle.
Currently, Global Garden operates five factories in China, covering a total area of 123,800 square meters, with an annual production capacity sufficient to supply over 18 million products. Although most of the company's products are shipped to the U.S. for sale, U.S. tariff exemption clauses include decorative gardening products, thus they are not affected by tariffs. However, to mitigate the aforementioned risks, Global Garden has also begun establishing a new factory in Cambodia, which will start production next year, optimizing cost structure and alleviating geopolitical risks such as trade restrictions and tariffs
As for Global Horticulture, revenue in the first half of 2025 decreased by 4.1% to 186 million yuan. The group explained that customers adopted a more cautious approach, especially for larger outdoor products. However, the increase in automation rates improved production efficiency and reduced production costs, coupled with the depreciation of the yuan against the dollar, which drove the gross profit margin up by 3.5 percentage points year-on-year to 60%, resulting in a gross profit growth of 1.8% to 110 million yuan in the first half of 2025.
<h4>Rising Costs Weigh on Net Profit Decline</h4>
Despite the increase in gross profit in the first half of the year, the company faced issues such as increased administrative expenses and rising sales and distribution costs. The sales and distribution costs alone surged by 22.6% to 21.7 million yuan, mainly due to increased transportation costs and the launch of new SKUs (stock-keeping units), leading to higher employee costs and commission expenses, causing Global Horticulture's net profit to decline by 15.7% to 33.88 million yuan in the first half of the year.
It is worth noting that Global Horticulture's revenue is affected by seasonal factors, with peak sales occurring from October each year to April of the following year. Since products are mainly shipped to the U.S. market by sea, it generally takes about two months, so the revenue and profitability in the second half of the year are usually stronger than in the first half. The company also commits to an annual dividend of no less than 20% of the profit attributable to shareholders.
Overall, Global Horticulture belongs to the traditional manufacturing industry, with products primarily for export. Compared to the valuations of export stocks listed in Hong Kong, including Techtronic Industries (0669.HK), VTech Holdings (0303.HK), and Minghua (1999.HK), the expected price-to-earnings ratios are 16.9 times, 14 times, and 8.4 times, respectively. However, the revenues of these three stocks are significantly higher than those of Global Horticulture, and with the decline in net profit in the first half of the year, it is difficult to achieve a high valuation upon listing. If it lists at a price-to-earnings ratio of 10 times, it is believed that there is a high possibility of the stock price falling below the issue price after listing

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Global Horticulture, the world's largest producer of decorative plastic flower pots, is applying for a listing in Hong Kong. The company's revenue and net profit both declined in the first half of the year, with the main market being the United States, and its products are not affected by tariffs. The company was founded by Lu Jingzhang, and its major clients include Lowes, Walmart, and Costco Wholesale

Global No. 1 in Plastic Flower Pots, Global Gardening Plans to Go Public in Hong Kong