Hla Group (600398) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 reached ¥15.60 billion, up 2.23% year-over-year, with net profit attributable to shareholders at ¥1.86 billion, down 2.37% year-over-year.

• Gross margin improved slightly to 46.25% for the period, with direct-operated stores showing strong growth in both revenue and profitability.

• The group expanded its store network, ending the period with a net increase of 63 stores, driven by direct-operated store openings.

Financial highlights

• Q3 revenue was ¥4.03 billion, up 3.71% compared to the same quarter last year.

• Net profit attributable to shareholders for Q3 was ¥282 million, up 3.95% year-over-year.

• Operating cash flow for the first nine months was ¥2.03 billion, a significant increase due to reduced cash outflows for goods and services.

• Basic and diluted EPS for the first nine months was ¥0.39, down from ¥0.41 year-over-year.

• Total assets at period end were ¥33.09 billion, down 1.03% from the previous year-end.

Segment performance

• HLA brand revenue was ¥10.85 billion, down 3.99% year-over-year, but gross margin improved by 2.35 percentage points to 47.68%.

• Group-buying/customization segment revenue grew 28.75% year-over-year, with a gross margin of 40.56%.

• Other brands saw revenue rise 37.19% year-over-year, with a gross margin of 44.26%.

• Direct-operated stores' revenue increased 17.64% year-over-year, with gross margin up to 63.22%.

• Franchise and other channels' revenue declined 3.94% year-over-year, with gross margin at 40.29%.