Huali Group H1 2026 Revenue Falls 13.71% to RMB 10.925 Billion, Net Profit Down 42.98%

Huali Group released its 2026 semi-annual report on August 20. The company achieved operating revenue of RMB 10.925 billion in the first half, down 13.71% year-on-year. Net profit attributable to shareholders of the listed company was RMB 953 million, a decrease of 42.98%. Net profit after deducting non-recurring gains and losses was RMB 837 million, down 50.27%.

The company attributed the decline to external factors, including weaker consumer demand, trade disputes, and geopolitical turmoil, which led brand owners to place orders more cautiously.

By product segment, sports and casual shoes generated revenue of RMB 9.934 billion, accounting for 90.93% of total operating revenue. Sports sandals, slippers, and other products contributed RMB 784 million, while outdoor footwear brought in RMB 195 million. Geographically, North America accounted for RMB 8.084 billion, Europe RMB 2.430 billion, and other regions RMB 399 million.

The company plans to distribute a cash dividend of RMB 10 per 10 shares based on a share base of 1.167 billion shares, totaling RMB 1.167 billion. The proposal will be submitted for review at the shareholders' meeting on September 8, 2026. Since its listing in 2021, the company's annual cash dividends for 2021 through 2025 were RMB 2.451 billion, RMB 1.400 billion, RMB 1.400 billion, RMB 2.684 billion, and RMB 2.451 billion respectively, with cumulative dividends exceeding RMB 11 billion.

Huali Group is a leading global professional manufacturer of athletic footwear, providing product development, design, and production services to brands such as NIKE and adidas. Headquartered in Zhongshan, Guangdong, the company operates factories in China, Vietnam, Indonesia, the Dominican Republic, and Myanmar. As of the end of 2025, it employed approximately 185,000 people worldwide, with over 169,000 employees in Vietnam, representing 91.31% of the group's total workforce.