Hla Group (600398) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 11.37 billion, up 1.53% year-over-year; net profit attributable to shareholders was RMB 1.64 billion, down 2.54% year-over-year.

• Gross margin improved to 46.91%, with main brand HLA contributing RMB 8.92 billion in revenue.

• Online sales surged 47% year-over-year, accounting for 20.28% of total revenue.

• Board approved an interim cash dividend of RMB 2.30 per 10 shares, representing 67.5% payout of H1 net profit.

• Completed full conversion and redemption of convertible bonds, increasing total share capital to 4.80 billion shares.

Financial highlights

• Operating income: RMB 11.37 billion, up 1.53% year-over-year.

• Net profit attributable to shareholders: RMB 1.64 billion, down 2.54% year-over-year.

• Basic EPS: RMB 0.35, down 10.26% year-over-year.

• Operating cash flow: RMB 2.77 billion, down 27.84% year-over-year.

• Gross margin: 46.91%, up 0.67 percentage points year-over-year.

Outlook and guidance

• Company expects continued pressure on apparel consumption due to macroeconomic headwinds and rational consumer behavior.

• Plans to expand international presence, especially in Central Asia and the Middle East, and further enhance digital and product innovation.

• Focus remains on optimizing channel structure, product upgrades, and supply chain efficiency.