Huali Group Profit Nearly Halves as First-Half Revenue Falls 13.71%

Huali Group, the Nike and Adidas shoe manufacturer listed in Shenzhen, reported first-half net profit of 953 million yuan, down 42.98% year on year, as revenue fell 13.71% to 10.925 billion yuan and shoe shipments dropped 8.99% to 104 million pairs, according to Jiemian News. Gross margin fell to 17.73% in the first half from 21.89% in 2025, marking a post-listing low. The company said weaker consumer demand, cautious brand orders, new factory ramp-up costs and tariff-related concessions weighed on profitability. Jiemian News reported that capacity utilization fell to 90.3% in the first half from 91.6% in 2025 and 96.72% in 2024, while the debt ratio rose to 34.38% at the end of June from 22.27% in 2023. North America generated 8.084 billion yuan of revenue, or 74% of total sales, and the top five customers contributed 18.1 billion yuan in 2025, equal to 72.55% of revenue. The article also said controlling shareholder Hong Kong Junyao cut its stake to 81.85% from 84.85% starting in the second quarter of 2025.