Hla Group (600398) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥11.57 billion, up 1.73% year-over-year, with net profit attributable to shareholders at ¥1.58 billion, down 3.42% year-over-year.

• Main business lines include apparel retail, group customization, and international brand agency, with continued expansion in sportswear and outlet channels.

• The company maintained a strong cash position and continued to invest in digitalization, product innovation, and overseas market expansion.

Financial highlights

• Operating income: ¥11.57 billion, up 1.73% year-over-year.

• Net profit attributable to shareholders: ¥1.58 billion, down 3.42% year-over-year.

• Operating cash flow: ¥2.72 billion, up 36.11% year-over-year.

• Gross margin: 47.47%, up 0.56 percentage points year-over-year.

• Basic and diluted EPS: ¥0.36, up 2.86% year-over-year.

Outlook and guidance

• The company expects continued market challenges due to weak consumer confidence and intensified competition but aims to strengthen its position through product innovation, channel optimization, and overseas expansion.

• No interim dividend or capital increase from reserves is planned for the reporting period.