Hla Group Corp.,Ltd. (600398.SH) has submitted an application for listing on the Hong Kong Stock Exchange. According to documents disclosed on November 21, the Chinese apparel retail group filed its listing application with Huatai International acting as the sole sponsor.

On the same day, Hla Group issued an announcement confirming its submission of an H-share listing application to the Hong Kong Stock Exchange. The company noted that the listing remains subject to approvals from regulatory bodies including the Hong Kong Securities and Futures Commission, Hong Kong Stock Exchange, and China Securities Regulatory Commission. The process carries significant uncertainty, and the company emphasized that the announcement does not constitute any investment solicitation.

Hla Group's prospectus reveals that the company ranked fourth in revenue among Chinese apparel groups in 2024, according to Frost & Sullivan. As of June 30, 2025, the company operated over 7,200 stores globally.

**Financial Performance: Core Brand Dependency Persists** Headquartered in Jiangyin, Jiangsu Province, Hla Group originated as Jiangsu Sanmao Group in 1994 before rebranding in 2001. Its flagship menswear label "Hla" launched in 2002, with the company completing a backdoor listing in 2014. Founder Zhou Jianping stepped down as chairman in 2020, succeeded by his son Zhou Lichen.

While historically known for menswear through slogans like "A Man's Wardrobe," Hla Group has expanded into multiple brands including women's wear label OVV, youth streetwear brand HLAJEANS, and children's wear line YeeHoO. The company also holds licensing rights for HEAD sportswear and Adidas FCC series in mainland China, alongside corporate uniform customization services.

Financial data shows revenue of RMB 17.9 billion (2022), RMB 20.75 billion (2023), RMB 20.16 billion (2024), and RMB 15.6 billion (first three quarters of 2025). Net profits attributable to shareholders were RMB 2.16 billion, RMB 2.95 billion, RMB 2.16 billion, and RMB 1.86 billion respectively. Gross margins improved steadily from 43.4% to 46.25% during the same periods.

Despite diversification, the core Hla brand contributed over 70% of total revenue annually, though sales declined 7% in 2024 and 4% year-to-date in 2025. Offline channels dominated with 79.58% of sales (RMB 12.05 billion), while e-commerce accounted for 20.42% (RMB 3.09 billion).

**Operational Metrics and Challenges** The company operated 7,241 stores domestically as of Q3 2025, including 1,583 directly managed stores (net increase of 115) and 4,101 franchised outlets (net decrease of 264). Hla Group reported decreased working capital from RMB 6.58 billion to RMB 6.26 billion between June and September 2025, attributed to dividend payments, seasonal sales fluctuations, and inventory buildup for winter collections.

In investor communications, management acknowledged sluggish apparel market recovery in 2025 and outlined strategies including sports segment expansion, outlet mall formats, and overseas growth. The company plans to enter Australia with a Sydney flagship while developing Middle Eastern and African markets.

The Zhou family maintains 60.13% control through direct holdings and investment vehicles. Notably, MSCI Inc removed Hla Group from its indexes in November 2025 adjustments. Shares closed at RMB 6.28 on November 21, down 14.20% year-to-date.