Hla Group (600398) H2 2025 earnings summary

Executive summary

• Achieved revenue of ¥21.63 billion in 2025, up 3.19% year-over-year; net profit attributable to shareholders was ¥2.17 billion, up 0.34% year-over-year.

• Cash dividend of ¥4.10 per 10 shares proposed, with a payout ratio of 90.91% of net profit.

• Over 7,300 stores at year-end, with international expansion and new business formats such as sportswear and city outlet stores.

Financial highlights

• Operating income: ¥21.63 billion (up 3.19% YoY); net profit attributable to shareholders: ¥2.17 billion (up 0.34% YoY).

• Operating cash flow: ¥4.48 billion (up 93.46% YoY).

• Gross margin: 45.88% (down 0.19 percentage points YoY).

• Basic and diluted EPS: ¥0.45 (down 2.17% YoY).

• ROE: 12.31%; adjusted ROE (excluding non-recurring items): 12.06%.

Outlook and guidance

• Focus on brand strengthening, global expansion, and new retail formats.

• Plans to accelerate sportswear and outlet business, enhance digitalization, and expand international presence, especially in Southeast Asia, Middle East, and Australia.

• Continued investment in R&D and digital transformation to drive product innovation and supply chain efficiency.