Hla Group (600398) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥20.96 billion in 2024, down 2.65% year-over-year; net profit attributable to shareholders was ¥2.16 billion, down 26.88%.

• Main business segments: HLA series revenue ¥15.27 billion, HLA Group Customization ¥2.22 billion, other brands ¥2.67 billion.

• HLA remains the leading menswear brand in China, with 5,833 stores and strong digital transformation.

• Significant expansion in overseas markets, with overseas revenue up 30.75% to ¥355 million and 101 stores.

Financial highlights

• Gross margin improved to 46.07%, up 0.21 percentage points year-over-year.

• Operating profit was ¥2.78 billion, down from ¥3.61 billion last year.

• Basic and diluted EPS were both ¥0.46, down from ¥0.68 and ¥0.64, respectively.

• Net cash from operating activities was ¥2.32 billion, down 55.7% year-over-year.

• Inventory increased 28.38% to ¥11.99 billion; inventory turnover days rose to 330 days.

• R&D investment rose 43.82% to ¥288 million, representing 1.37% of revenue.

Outlook and guidance

• Strategic focus for 2025–2030: brand innovation, global expansion, and value-for-money lifestyle products.

• Plans to deepen domestic channel quality, accelerate international market entry, and enhance digital and supply chain capabilities.

• Continued investment in R&D, digitalization, and new retail formats (e.g., sports, outlet, and international brands).