HEILAN HOME(SH:600398) Xin Lang Cai Jing·2025-09-20 01:29Core Viewpoint - The company, HLA, is planning to issue shares overseas (H-shares) and list on the Hong Kong Stock Exchange to enhance its global strategy, accelerate overseas business development, and improve its international brand image while addressing challenges in its performance and transformation [3][4]. Group 1: Financial Performance - In the first half of 2025, HLA reported revenue of 11.566 billion yuan, a year-on-year increase of 1.73%, but net profit decreased by 3.42% to 1.580 billion yuan [4][5]. - The company's revenue structure shows that offline revenue accounted for 79.46% (8.929 billion yuan) while online revenue made up 20.54% (2.308 billion yuan) [4][5]. Group 2: Challenges and Transformation - HLA faces challenges in brand perception, with its main brand experiencing a revenue decline of 5.86% to 8.395 billion yuan in the first half of 2025, leading to concerns about brand aging and consumer disconnect [6][7]. - The company is attempting to attract younger consumers through new brand initiatives and marketing strategies, but faces significant hurdles due to entrenched consumer perceptions of its products as outdated [6][7]. Group 3: Market Competition and Expansion - The men's apparel market in China is projected to grow, with retail sales reaching 561.65 billion yuan in 2023 and expected to rise to 568.75 billion yuan in 2024, driven by increasing consumer demand for personalized and high-quality products [8][9]. - HLA is expanding its overseas presence, with 111 stores abroad and a 27.42% increase in overseas revenue to 206 million yuan in the first half of 2025, focusing on markets in Southeast Asia, Central Asia, the Middle East, and Africa [9].