Hla Group (600398) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 6.19 billion, up 0.16% year-over-year; net profit attributable to shareholders was RMB 935.2 million, up 5.46% year-over-year.

• Operating cash flow increased 14.91% year-over-year to RMB 1.59 billion.

• Gross margin improved slightly to 47.42% for the quarter.

Financial highlights

• Revenue: RMB 6,186,981,848.33 (up 0.16% year-over-year).

• Net profit attributable to shareholders: RMB 935,199,788.22 (up 5.46% year-over-year).

• Basic and diluted EPS: RMB 0.21 (up 5% year-over-year).

• Operating cash flow: RMB 1,587,212,734.45 (up 14.91% year-over-year).

• Total assets at quarter-end: RMB 33.08 billion; shareholders' equity: RMB 17.95 billion.

Segment performance

• HLA main brand revenue: RMB 4.64 billion, down 9.52% year-over-year; gross margin 49.25%, up 2.85 pts.

• HLA Group Customization revenue: RMB 646 million, up 17.58% year-over-year; gross margin 40.31%, down 7.95 pts.

• Other brands revenue: RMB 743 million, up 100.22% year-over-year; gross margin 42.16%, down 16.54 pts.

• Direct stores revenue: RMB 1.59 billion, down 2.12% year-over-year; gross margin 64.50%, up 1.31 pts.

• Franchise and others revenue: RMB 3.79 billion, down 4.05% year-over-year; gross margin 41.46%, down 7.37 pts.

• Online sales accounted for 16.82% of revenue, up from 14% last year.