Hla Group (600398) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached ¥6.66 billion, up 7.66% year-over-year, with net profit attributable to shareholders at ¥949 million, a 1.51% increase year-over-year.

• Operating cash flow remained robust at ¥1.58 billion, nearly flat compared to the previous year.

• Store network expanded by a net 53 stores, totaling 7,383 at quarter-end.

Financial highlights

• Gross margin for the main business was 45.93%, down 1.49 percentage points year-over-year.

• Basic EPS was ¥0.20, up from ¥0.19 in Q1 2025.

• Total assets stood at ¥33.49 billion, down 1.66% from year-end 2025.

• Owner's equity attributable to shareholders increased 5.11% to ¥19.26 billion.

• Net cash from investing activities turned positive at ¥349.7 million, compared to a net outflow last year.

Outlook and guidance

• Management highlighted ongoing expansion and optimization of store formats and channels.

• Focus remains on improving profitability and operational efficiency amid a competitive retail environment.