Core Viewpoint - The article highlights the performance of Huali Group, a leading domestic sports shoe manufacturer, emphasizing its revenue growth despite facing pressure on profit margins due to new factory ramp-ups. Group 1: Company Overview - Huali Group (300979.SZ) is a leading domestic sports shoe OEM, producing a range of products including sports casual shoes, outdoor boots, sports sandals, and slippers, serving well-known global brands such as Nike, Adidas, and Puma [4]. - In the first three quarters of 2025, Huali Group achieved operating revenue of 18.68 billion yuan, representing a year-on-year growth of 6.67%. During the same period, the sales volume of sports shoes reached 168 million pairs, an increase of 3.04% year-on-year, indicating continuous expansion of the company's core business [4]. Group 2: Profitability Challenges - However, the company is facing pressure on profitability, with an overall gross margin of 21.83% in the first half of 2025, a significant decline of 6.38 percentage points year-on-year. This decline is attributed to several new factories, such as those in Vietnam, Indonesia, and Sichuan, China, being in the ramp-up phase, which has lowered the overall gross margin [6]. - There was a marginal improvement in the situation during the third quarter, suggesting potential recovery in profitability [8].