Hla Group (600398) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 12.42 billion, up 7.38% year-over-year, while net profit attributable to shareholders was RMB 1.49 billion, down 5.86% year-over-year.

• Gross margin remained robust at 47.05%, with the main brand maintaining its leading position in the Asian menswear market for 12 consecutive years.

• The company continued to expand its multi-brand portfolio, international presence, and digital transformation, with over 7,400 offline stores and more than 60 million online members.

Financial highlights

• Operating income: RMB 12.42 billion, up 7.38% year-over-year.

• Net profit attributable to shareholders: RMB 1.49 billion, down 5.86% year-over-year.

• Gross profit: RMB 6.41 billion; gross margin: 47.05%.

• Basic EPS: RMB 0.31, down 6.06% year-over-year.

• Net cash from operating activities: RMB 2.66 billion, down 2.24% year-over-year.

Outlook and guidance

• The company plans to distribute a cash dividend of RMB 2.70 per 10 shares, representing 87.16% of H1 2026 net profit.

• Management remains focused on brand strengthening, global expansion, and digital innovation to drive long-term growth.