Hla Group (600398) investor relations material

Executive summary

• 9M 2026 revenue rose 7.20% YoY to RMB16.72bn; net income attributable to shareholders fell 7.24% to RMB1.73bn.

• Q3 revenue grew 6.70% YoY to RMB4.30bn, while attributable net income declined 14.98% to RMB239.8m; adjusted attributable net income increased 5.03% to RMB262.6m.

Financial highlights

• 9M operating profit was RMB2.18bn versus RMB2.41bn a year earlier; total profit fell 9.93% YoY to RMB2.18bn.

• 9M operating cash flow was RMB1.79bn, down 11.84% YoY; ending cash and cash equivalents were RMB5.22bn versus RMB5.55bn a year earlier.

• 9M asset impairment losses were RMB236.0m versus RMB283.2m in the prior-year period.

Segment performance

• HLA Series 9M revenue rose 12.35% to RMB12.19bn; gross margin was 48.72%, up 1.04 percentage points YoY.

• Group custom revenue fell 33.61% to RMB1.25bn; gross margin declined 7.74 percentage points to 32.82%.

• Other-brand revenue rose 18.82% to RMB2.87bn; gross margin was 43.07%, down 1.19 percentage points YoY.

• Online sales were RMB3.71bn, 22.78% of channel revenue, with a 48.75% gross margin; offline sales were RMB12.59bn, 77.22% of revenue, with a 45.84% margin.

• Direct-store revenue rose 26.26% to RMB4.94bn with a 62.70% gross margin; franchise and other-store revenue rose 8.20% to RMB10.11bn with a 40.28% margin.