Huali Industrial Group (Zhongshan Huali Industrial Group Co., Ltd.) (300979)

Individual stock analysis report | Sector: Textile & Apparel—Textile Manufacturing—Textile Footwear Manufacturing | Report date: September 13, 2026 | The research notes do not specify a unified price-data cutoff date; market snapshots in the source links are dated September 4, 2026, September 11, 2026 and other dates. The specific date should be determined from the timestamp shown on each source page. There is no consistent, verifiable closing-price snapshot date.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Huali Industrial Group’s latest results are clearly under pressure. In the first half of 2026, the company generated revenue of RMB 10.925 billion, down 13.71% year on year, and attributable net profit of RMB 952–953 million, down 42.98%; non-recurring-item-adjusted attributable net profit fell 50.27%. In 2025, the company had already exhibited “revenue growth without profit growth”: full-year revenue was RMB 24.980 billion, up 4.06%, while attributable net profit was RMB 3.207 billion, down 16.50%. Revenue and profit declines widened further in 2026 Q1 and H1, indicating that orders, capacity utilization and profitability remain in an adjustment phase.

The company is a pure-play athletic-footwear ODM/contract manufacturer with no proprietary brand. Revenue is highly concentrated in athletic and casual footwear, which accounted for 90.93% of revenue in 2026 H1. Its competitive advantages mainly derive from large-scale manufacturing, product development, vertical integration and a multi-country footprint spanning Vietnam, Indonesia and China. However, its business remains highly exposed to changes in orders from international brand customers. In 2025, the ramp-up of new factories and lower utilization at mature factories drove full-year gross margin down to approximately 21.89%–21.87%; gross margin declined by a further approximately 4.12 percentage points year on year in 2026 H1.

The customer mix is changing. Cooperation with Adidas began in H2 2024, with mass production and shipments from factories in China, Vietnam and Indonesia in 2025. New Balance entered the top-five customer list in 2025, while growth customers such as Asics are also viewed as potential sources of growth. Meanwhile, the share of revenue from the top five customers declined from 79.13% to 72.55% in 2025, indicating progress in customer diversification. Nevertheless, the historical share of the top five customers remains high, and revenue from all three major product categories declined year on year in 2026 H1. Volume growth from new customers has not yet offset order contraction from traditional customers.

Current valuation data suffer from inconsistent market-data dates. Third-party pages show a share price of approximately RMB 33 and a total market capitalization of approximately RMB 38.6 billion. Based on TTM attributable net profit of approximately RMB 2.489 billion, the estimated P/E ratio is approximately 15.5x. The company has a strong cash-dividend policy: it proposes to distribute RMB 10 per 10 shares for 2026 H1, totaling RMB 1.167 billion, equivalent to approximately 122.51% of attributable net profit for the period. Regarding technicals, the available information lacks a complete price series, moving averages, Bollinger Bands, 52-week high and low points, and turnover data; therefore, no clear trend, support or resistance levels can be determined.

2. Company Overview

2.1 Basic Information

2.2 Core Business and Product Mix

• Athletic and casual footwear: 2026 H1 revenue of RMB 9.934 billion, accounting for 90.93%, down 12.36%; FY2023 share was 90.20% (revenue of RMB 17.807 billion)
• Outdoor boots and footwear: 2026 H1 revenue of RMB 195 million, accounting for 1.78%, down 25.55%; FY2023 share was 4.92% (RMB 1.354 billion)
• Athletic sandals/slippers and other products: 2026 H1 revenue of RMB 784 million, accounting for 7.18%, down 25.40%; FY2023 share was 4.31% (RMB 917 million)
• Other: 2026 H1 revenue of RMB 11 million, accounting for 0.10%; FY2023 share was 0.57% (RMB 35.71 million)

2.3 Position in the Value Chain and Cost/Profit Structure

Huali Industrial Group is a pure-play contract manufacturer of athletic footwear, with no proprietary brand. Its core activities are product development and design, production and sales of athletic footwear. It was described by the media as the world’s second-largest athletic-footwear manufacturer at the time of its 2021 listing and is the largest supplier of footwear products for several international brands, including Converse, UGG, Vans, Puma, Columbia, HOKA ONE ONE and Cole Haan. Its business scope also includes the supporting manufacture and trading of soles, footwear materials, molds, knitted and woven uppers, yarn, synthetic fibers and hardware. The product mix is highly concentrated in athletic and casual footwear, which has historically represented approximately 90% of revenue. Its business model is that of a typical branded contract manufacturer.

• Direct raw-material mix: leather, textile fabrics, chemical materials and rubber materials account for relatively high shares, while synthetic fibers account for a relatively small share (source: Eastmoney announcement, “Investor Relations Management Information 20260908”).
• Key mechanism: most major raw materials are sourced from suppliers designated by customers, with purchase prices mainly negotiated between customers and suppliers. The company independently purchases only certain materials, such as rubber, under customer-specified quality standards and negotiates prices with suppliers based on market prices.
• Pricing model: cost-plus pricing; raw-material price increases are ultimately reflected in selling prices.
• Implications: Huali is essentially a price pass-through party with limited exposure to raw-material price spreads. The cost-plus mechanism partially offsets commodity-price volatility, but unit gross profit is effectively capped by the markup, limiting the ability to expand profits through raw-material arbitrage. Bargaining power at the raw-material end is effectively held by brand customers.
• Top-five customer revenue concentration under the prospectus definition: 83.01% in 2017, 84.57% in 2018, 86.14% in 2019 and 89.47% in 2020 H1. The FY2020 figure has been cited as approximately 95% (source: Forbes China). These figures are mainly secondary quotations from the prospectus and broker reports rather than original annual-report disclosures. The 2020 H1 and full-year definitions also differ; the latest annual report should be used.
• Historical core customers: the early top five were Nike (Converse), VF (Vans), Deckers (HOKA/UGG), Puma and Columbia. In 2020, their approximate shares within the top-five customer group were Nike 33%, VF 21%, Deckers 16%, Puma 13% and Columbia 6% (sources: Hanghangcha citing the prospectus/China Merchants Securities).
• New-customer progress: cooperation with Adidas began in H2 2024, with mass production and shipments from factories in China, Vietnam and Indonesia in 2025. Adidas is expected to become one of the core pillars of volume growth over the next 2–3 years. New Balance entered the top-five customer list in 2025. The company also benefits from growth customers such as Asics (sources: Shanxi Securities and Huatai Securities reports dated 2026-04).
• Bargaining dynamics: contract manufacturers have weak bargaining power with major brand customers. Under the prospectus definition, gross margin on sales to the top five customers was approximately 25% in 2017–2019 and 2020 H1, while gross margin for non-major customers was only approximately 10%. This indicates that although major customers purchase in large volumes, they have significant influence over prices and terms (source: Blue Whale Finance).
• Customer-mix comparison (2022 data, source: Guotou Securities February 2024 sector report): Yue Yuen’s top-five customer concentration was approximately 52%, with its largest customer accounting for approximately 25%; Feng Tay’s largest customer accounted for approximately 85%; Huali’s largest customer accounted for approximately 39% and its top five approximately 91%. Huali’s customer base is relatively more balanced, but remains highly concentrated.
• Risk warning: the company explicitly warns that a material adverse change in the operations of major customers, or an inability of its products to meet customer requirements, could have a material adverse impact on its business.
• The present search did not retrieve specific figures for Huali’s accounts-receivable turnover days or accounts receivable as a percentage of revenue. No quantitative evidence can therefore be provided, and these items remain unverified pending the latest annual report. Indirect clues include Sohu Securities’ figures of RMB 11.56 of cash income per RMB 100 of operating revenue and RMB 10.88 of capital expenditure per RMB 100 of operating revenue, both on a TTM basis, as well as high recent capital expenditure (RMB 1.378 billion paid for the purchase and construction of fixed assets in 2025 H1, source: Dongxing Securities). These figures indicate that cash is primarily tied up in capacity construction rather than abnormal receivables; however, the relative duration of receivables and payables remains unsupported by data.
• Customer concentration: top-five customer revenue shares were 83.01% in 2017, 84.57% in 2018, 86.14% in 2019 and 89.47% in 2020 H1 under the prospectus definition. The FY2020 figure has been cited as approximately 95% (source: Forbes China; single-source and not cross-verified, with a half-year/full-year difference from the prospectus 2020 H1 figure). In 2022, Huali’s largest customer accounted for approximately 39% and its top five approximately 91% (source: Guotou Securities February 2024 sector report).

Huali occupies the midstream manufacturing/contract-manufacturing segment of the smile curve. It is neither an upstream resource provider—it purchases leather, rubber and fabrics according to customer specifications under cost-plus pricing—nor a downstream brand owner, as it has no proprietary brand and weak bargaining power with major customers such as Nike and Adidas. It earns returns from scale, efficiency and product-development capabilities. Future gross-margin improvement is unlikely to come primarily from price increases, given the limited room under cost-plus pricing, but rather from: ① recovery in capacity utilization after new-factory ramp-up; ② upgrading toward higher-priced products and brands such as Adidas, Asics, New Balance and On; and ③ customer diversification to reduce dependence on Nike-related orders.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest reporting period is the 2026 interim report, disclosed on 2026-08-21. The 2026 third-quarter report had not been released when this report was written, so Q3 data are unavailable. FY2023 data are from Jiemian News; FY2024 data are from Jiemian News; FY2025 data are consistent across multiple sources including Securities Times, Eastmoney and Phoenix Finance; 2026 Q1 data are from the Eastmoney Data Center and Securities Star; and 2026 H1 data are from Tonghuashun, aijingu.com and Sohu Securities. Different sources report net profit of RMB 952 million or RMB 953 million, a difference of RMB 1 million due to presentation conventions. During 2025, H1 revenue was RMB 12.661 billion (+10.36%) and attributable net profit was RMB 1.671 billion (-11.06%); Q3’25 revenue was RMB 6.02 billion (-0.3%) and attributable net profit RMB 765 million (-20.7%); Q4’25 revenue was RMB 6.30 billion (-3.0%) and attributable net profit RMB 771 million (-22.6%), according to a Huatai report. 2026 H1 segment revenue: athletic and casual footwear RMB 9.934 billion (90.93%, -12.36%); athletic sandals/slippers and other products RMB 784 million (7.18%, -25.40%); outdoor boots and footwear RMB 195 million (1.78%, -25.55%). The company stated that foreign-exchange losses of approximately RMB 94 million in January–June 2026 temporarily affected net profit.

Revenue and net profit declined slightly in 2023. In 2024, the company delivered solid growth, with revenue up 19.35% and attributable net profit up 20.00%. In 2025, revenue increased 4.06% but attributable net profit declined 16.50%; the profit decline was concentrated in the second half, with attributable net profit down 11.06% in 2025 H1, 20.7% in Q3 and 22.6% in Q4. Results came under clear pressure in 2026: revenue and attributable net profit declined 19.40% and 49.60%, respectively, in Q1, and 13.71% and 42.98%, respectively, in H1. 2026 H1 EPS was RMB 0.82, book value per share RMB 13.23 and ROE approximately 5.86%–6.17%. Revenue from all three major product categories declined year on year in 2026 H1, with athletic sandals/slippers and other products (-25.40%) and outdoor boots and footwear (-25.55%) falling more sharply. The company stated that foreign-exchange losses of approximately RMB 94 million in January–June 2026 temporarily affected net profit. The 2025 payout ratio was 76%, with a proposed cash dividend of RMB 11 per 10 shares. For 2026 H1, the company proposes RMB 10 per 10 shares, totaling RMB 1.167 billion, equivalent to 122.51% of attributable net profit for the period.

3.2 Earnings Forecast

Institutional earnings forecasts: (1) Haitong International (2026-03-12) forecast FY26E/FY27E/FY28E EPS of RMB 2.80/3.40/3.90, maintained an “Outperform” rating and set a target price of RMB 56.5, corresponding to 17x 2026 P/E. (2) Tonghuashun iFinD consensus as of 2026-05-06, covering 24 institutions over the preceding six months, showed average 2026 net-profit forecasts of RMB 3.402 billion (+6.08%), with a high of RMB 4.015 billion and a low of RMB 2.867 billion; the average 2026 target price was RMB 57.51, with a range of RMB 47.92–75.48. (3) Another Tonghuashun iFinD snapshot as of 2026-04-10, covering 26 institutions over the preceding six months, showed average 2026 net-profit forecasts of RMB 3.833 billion (+19.53%), with a high of RMB 4.281 billion and a low of RMB 3.493 billion; the average target price was RMB 65.42. (4) Latest single-broker forecast after the 2026 H1 disclosure: Orient Securities (2026-08-24) cut its target price from RMB 44.03 in May to RMB 35.54, corresponding to 17x 2026 P/E, implying 2026 attributable net profit of approximately RMB 2.44 billion and EPS of approximately RMB 2.09, while maintaining a “Buy” rating. Important: both multi-institution consensus sets (RMB 3.402 billion versus RMB 3.833 billion) were compiled in April–May 2026 before the 2026 H1 results. With 2026 H1 attributable net profit of only RMB 953 million (-43%), well below the prior earnings trajectory, these 2026 forecasts appear materially optimistic and outdated and should not be used directly.

3.3 Valuation and Institutional Ratings

Current valuation, with price and market capitalization taken from third-party pages such as Sohu Securities, is based on market pages dated approximately late August to September 2026. The specific trading date is uncertain, and these market data may differ from the latest figures. The share price is approximately RMB 33.09 (Sohu: RMB 33.09, -0.69%); total shares outstanding are 1.167 billion and total market capitalization approximately RMB 38.6 billion (Sohu: RMB 38.616 billion). Estimated TTM attributable net profit is approximately RMB 2.489 billion (Sohu reports TTM net profit of RMB 2.489 billion, down 31.5%; calculated as 2026 H1 net profit of RMB 953 million plus approximately RMB 1.536 billion in 2025 H2), implying a TTM P/E of approximately 15.5x. P/B is approximately 2.5x, based on book value per share of RMB 13.23. Other third-party figures include enterprise value/non-recurring-item-adjusted net profit of 18.8x on Sohu and a “median P/E of 42.53x” on CFi; the latter refers to the median for the leather, fur, feather and footwear industry rather than Huali’s valuation and should not be confused with it. Based on Orient Securities’ post-interim-report implied 2026 net profit of approximately RMB 2.44 billion, forward P/E is approximately 15.8x, close to the TTM multiple and indicating no 2026 profit growth. Regarding dividends, the 2025 payout ratio was 76%, or approximately RMB 2.44 billion; based on a market capitalization of RMB 38.6 billion, the estimated dividend yield is approximately 6%. For 2026 H1, the proposed dividend is RMB 10 per 10 shares, totaling RMB 1.167 billion, or 122.51% of attributable net profit for the period.

Uncertainties include: 1) the latest reporting period is the 2026 interim report, disclosed on 2026-08-21; the 2026 third-quarter report had not been released, so Q3 data are unavailable; 2) multi-institution consensus forecasts of RMB 3.4–3.8 billion for 2026 were formed before the 2026 H1 results, which were materially below expectations, and should not be used directly; after the interim report, only Orient Securities’ update was identified, implying 2026 net profit of approximately RMB 2.44 billion; 3) market data such as price, market capitalization and P/E/P/B are from third-party aggregation pages dated approximately late August to September 2026 rather than real-time exchange data, and P/E/P/B are calculated estimates; 4) it is unclear whether the proposed 2025 dividend of RMB 11 per 10 shares includes the interim dividend and what full-year dividend amount corresponds to the 76% payout ratio; 5) some overseas data sources record FY2025 revenue as RMB 24.960 billion, versus the official RMB 24.98013 billion. The company’s RMB 24.980 billion figure should be used.

4. Recent News and Announcements

4.1 2026 Interim Report: Revenue and Net Profit Both Declined

Huali Industrial Group’s 2026 interim report was disclosed between August 19 and August 21, 2026. Sources differ slightly: Securities Star cites August 19, while NBD and Jiemian cite the evening of August 20/August 21; the company announcement should be treated as authoritative. The report showed revenue of RMB 10.925 billion (RMB 10,925,079,226.28), down 13.71% year on year from RMB 12,660,864,433.32; attributable net profit of RMB 953 million (RMB 952,538,106.86), down 42.98% from RMB 1,670,596,211.27; non-recurring-item-adjusted attributable net profit of RMB 837 million (RMB 837,221,400.85), down 50.27%; basic EPS of RMB 0.82 versus RMB 1.43 in the prior-year period; gross margin down approximately 4.12 percentage points; and net margin of approximately 8.7%, down 4.5 percentage points. By quarter, Q1 revenue was RMB 4.32 billion (-19.4%) and attributable net profit RMB 380 million (-49.6%); Q2 revenue was RMB 6.61 billion (-9.5%) and attributable net profit RMB 570 million (-37.4%). The declines narrowed in Q2, with both revenue and attributable net profit approximately 50% higher sequentially. The company and brokerages cited weak global consumer demand, trade disputes and tariff concessions, cautious brand ordering, slower-than-expected new-factory capacity release, increased foreign-exchange losses, and shrinking North American orders. One source, Securities Star, stated that financial expenses increased by RMB 140 million, but this has not been reconciled item by item with the financial statements. North America generated more than RMB 8 billion of revenue and accounted for a high proportion.

4.2 Implementation of the 2026 Interim Dividend: RMB 10 per 10 Shares, RMB 1.167 Billion in Total

The company’s second extraordinary general meeting of shareholders in 2026 was held on September 8, 2026, and approved the proposal on 2026 H1 profit distribution and the proposal to amend the remuneration-management policy for directors and senior executives. Shares represented at the meeting totaled 1,007,780,279, or 86.3565% of voting shares; online voting accounted for 1,007,768,879 shares, or 86.3555%; and minority shareholders represented 21,875,279 shares, or 1.8745%. Under the 2026 H1 distribution plan, based on total shares of 1,167,000,000, the company will pay a cash dividend of RMB 10.00 per 10 shares, including tax, totaling RMB 1.167 billion, with no bonus shares or capitalization issue. The dividend represents approximately 122.51% of attributable net profit for the period. Key dates are: record date September 16, 2026; ex-dividend date September 17, 2026; and payment through the Shenzhen branch of China Securities Depository and Clearing Corporation Limited on September 17, 2026. Announcement No. 2026-038 was dated September 10, 2026.

4.3 Participation in the 2026 Guangdong Investor Collective Reception Day and Interim-Report Results Briefing

The company will participate in the 2026 Guangdong investor collective reception day and the interim-report results briefing for listed companies in the jurisdiction from 15:30 to 17:00 on September 15, 2026.

4.4 Reduction in Holdings by Controlling Shareholder Junyao Group (Requires Verification)

According to Eastmoney’s company-events summary, which is primarily a single source and should be checked against exchange equity-change announcements, Junyao Group Co., Ltd. sold approximately 17.51 million shares on November 12, 2025, representing approximately 1.50% of tradable shares, at an average transaction price of RMB 55.66. A block trade on the same day was completed at a 6.56% discount, involving 17.51 million shares and proceeds of approximately RMB 974.3 million. From June 27 to July 4, 2025, Junyao Group sold approximately 17.51 million shares, or approximately 1.50% of tradable shares, at an average price of approximately RMB 51.11. The July 4 block trade had an average price of RMB 51.19, a 3.76% discount, volume of approximately 16.91 million shares and proceeds of approximately RMB 865.6 million. The two reductions both involve 17.51 million shares and 1.50%, suggesting possible template duplication. The block-trade volume of 16.91 million shares also differs from the reported reduction of 17.51 million shares. These figures require cross-verification. The controlling shareholder’s latest reported holding is 81.85% as of 30/06/2026 and should be reconciled with the post-reduction position.

4.5 Warning Letter Issued to Controlling Shareholder (Important Risk, Requires Regulatory-Source Verification)

According to Eastmoney’s company-events record, on December 31, 2025, Junyao Group Co., Ltd., the controlling shareholder, was cited for failure to disclose material company events in a timely manner and for irregular trading. The handling authority was the Guangdong Regulatory Bureau of the China Securities Regulatory Commission. The measure was the issuance of a warning letter, recorded in the integrity files of the securities and futures markets. This item appears only in one Eastmoney company-events record and was not cross-verified against an original CSRC or exchange announcement during this search. Its nature and specific cause remain unclear and should be confirmed against the regulatory source. The timing is closely related to the 2025 block trades and disclosure issues described above and may involve the disclosure of the share reduction.

4.6 Board Re-election and Acting Secretary-of-the-Board Responsibilities (Pending Verification)

The second session of the 18th Board meeting was held on December 22, 2025, and considered proposals concerning the re-election of the Board, among others. The closing price that day was RMB 53.29. In addition, the contact-information section of the 2025 annual-report summary (Announcement No. 2026-012, disclosed on April 10, 2026) identifies Zhang Congyuan as acting secretary to the Board, implying that the chairman was performing the secretary’s duties and that the position may have been vacant or undergoing a change. Some information pages still identify Guo Yihang as secretary to the Board. This point lacks direct announcement support and remains subject to verification.

4.7 Changes in Shareholder Accounts (Some Data Require Verification)

According to Eastmoney, at year-end 2025 there were approximately 9,600 shareholder accounts as of November 28, down approximately 800, or 7.69%, from November 20; approximately 10,400 as of November 20; approximately 11,000 as of November 10; approximately 10,800 as of October 31, down 16.28% from October 20; and approximately 12,900 as of October 20. Another source, hx168/the company-information page, reports approximately 17,300 shareholders as of 30/06/2026, up approximately 900 from the previous period. This represents a significant increase from approximately 9,600 in November 2025 and may reflect an increase in retail holders following the share-price decline. However, the date definition of the latter figure is unclear and remains subject to verification.

4.8 Institutional Research Meetings (November–December 2025)

According to Eastmoney, the company hosted targeted research meetings on December 4, 2025 (including Dymon Asia), November 27 (Citigroup Global Markets), November 20 (Point72), November 12–13 (including CyberAtlas Fund L.P. and brokerage strategy meetings), and November 3–5 (including Baoying Fund). No research meeting records after 2026 were identified.

4.9 Important Announcements in the Previous Cycle: 2025 Earnings Flash and Annual Report

The 2025 earnings flash was disclosed on March 10, 2026, and the 2025 annual report on April 9/10, 2026. Revenue in 2025 was RMB 24.980 billion (+4.06%), attributable net profit RMB 3.207 billion (-16.50%), non-recurring-item-adjusted net profit RMB 3.257 billion (-13.87%), and gross margin 21.87% versus 26.71% in the prior year. The company sold 227 million pairs of athletic footwear in 2025, up 1.59%. Controlling shareholder Junyao Group proposed a 2025 cash dividend of RMB 11 per 10 shares, including tax, totaling approximately RMB 1.284 billion, or approximately 76% of attributable net profit. The report noted that New Balance had entered the top-five customer list and that the top-five customer concentration had declined from 79.13% to 72.55%. The 2025 interim dividend of RMB 10 per 10 shares, including tax, was approved by the extraordinary general meeting on September 8, 2025. The 2025 H1 earnings flash was disclosed on August 8, 2025.

4.10 Items Not Identified

Share repurchases: the present search did not identify any 2026 share-repurchase or share-increase announcement by Huali Industrial Group. The company’s main method of returning capital to shareholders is frequent, high-payout cash dividends: RMB 10 per 10 shares for 2025 H1, RMB 11 per 10 shares for FY2025 and RMB 10 per 10 shares for 2026 H1. The 300979 repurchase search was not completed because of procedural limits; “not identified” may mean that no such announcement exists, but this is not exhaustive confirmation. M&A: no material 2026 acquisition or asset-restructuring announcement was identified. Policy/tariffs: the interim report and broker commentary repeatedly cited tariff concessions and trade disputes as drags on performance, but no specific policy document directed at the company was identified.

4.11 Uncertainties and Limitations

1) Disclosure date: sources cite August 19, 20 or 21 for the interim report; the exchange announcement should be used. 2) Reduction data appear duplicated or mismatched: both transactions are reported as 17.51 million shares/1.50%, while block-trade and reduction volumes differ. The data should be checked against exchange equity-change reports; the controlling shareholder’s latest reported holding is 81.85% as of 30/06/2026 and should be reconciled. 3) The warning-letter item is based on a single Eastmoney summary and has not been cross-verified against the regulatory source; its nature, amount and specific cause are unclear. It is an important risk point but is not confirmed. 4) The shareholder-account count of approximately 9,600 on November 28, 2025 differs materially from approximately 17,300 in 2026; the latter’s date is unclear. 5) The statement that the chairman acted as secretary to the Board comes from the contact-information section of the annual-report summary, with no separate personnel announcement identified. 6) The RMB 140 million increase in financial expenses comes from a single Securities Star article and was not reconciled item by item with the financial statements. 7) Most information came from financial portals and broker reports rather than original exchange announcements. The specific dividend dates and amount—record date September 16, 2026, ex-dividend date September 17, 2026 and cash payment of RMB 1.167 billion—are consistent across multiple sources and therefore relatively reliable.

4.12 Security Identification Reminder

Security code 300979 corresponds to Zhongshan Huali Industrial Group Co., Ltd., short name Huali Industrial Group, listed on the Shenzhen Stock Exchange ChiNext board on April 26, 2021. Its core business is the development, design, production and sale of athletic footwear. It manufactures for Nike, Adidas, Converse, Vans, UGG, HOKA, On, New Balance, Puma, Asics, Under Armour and Lululemon, among others. Its production bases are located in Vietnam, Indonesia, the Dominican Republic and Myanmar, and its actual controller is the Zhang Congyuan family. Identification reminder: announcements concerning Shenzhen Ruijie (300977), including a restricted-share incentive-plan vesting announcement, were mixed into the search for 300979. The codes are adjacent but the companies are entirely unrelated; those items have been excluded and should not be conflated.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

According to the research notes, Huali Industrial Group (300979) is a ChiNext athletic-footwear ODM/manufacturer. Its recent share price has alternated between gains and losses, while trading value and main-fund flows have reversed direction across trading days. The notes do not provide a complete price series, moving-average values, Bollinger Band values, 52-week high/low points, turnover, top-10 shareholder concentration or institutional holdings, nor do they establish a unified market-snapshot date. Accordingly, this section cannot provide a data-supported conclusion regarding trend direction, support/resistance, or overbought/oversold conditions. Confirmed facts include the company name Huali Industrial Group, stock code 300979, ChiNext listing and athletic-footwear ODM/manufacturing business; the 2026 H1 dividend plan of RMB 10 per 10 shares, with a record date of September 16, 2026; and the company’s 70% stake in Emeishan Yongbang Footwear Co., Ltd. The above is an objective compilation of the available research notes. Missing fields are disclosed as such and do not constitute investment advice.

5.3 One-Week Outlook: Scenario Analysis for the Short Term, for Reference Only

⚠️ Risk warning: The following is a subjective scenario analysis based on limited data in the research notes and does not constitute investment advice. The notes do not provide moving averages, Bollinger Bands, 52-week highs and lows, turnover, shareholder structure or other key technical and fund-flow data. Price ranges and triggers in the scenarios cannot be quantified because of missing data. Please refer to the latest market information and assume investment risks independently.

① Key Technical Levels

② One-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (subjective weight: relatively high, approximately 60%; a subjective heuristic based on limited technical and fund-flow information, not a statistical probability): Trigger—no major news catalyst, trading value remains within its recent range and main-fund flows continue to reverse. Price action—narrow fluctuations within support and resistance zones that the research notes cannot define. No specific price range can be given because the notes provide no support or resistance values.
• Weaker decline (subjective weight: medium; a subjective heuristic based on limited technical and fund-flow information, not a statistical probability): Trigger—contracting trading value or sustained net outflows from main funds, combined with a break below the first support zone that the research notes cannot define. Price action—seeking support at a stronger support zone. No specific price range can be given because the notes provide neither support values nor the 52-week low.
• Stronger rebound (subjective weight: low; a subjective heuristic based on limited technical and fund-flow information, not a statistical probability): Trigger—a clear catalyst such as the approaching dividend record date, positive institutional research signals or broad sector strength, together with a marked increase in daily trading value above its recent normal range. Price action—testing the short-term resistance zone that the research notes cannot define. No specific price range can be given because the notes provide no resistance value.

③ Fund-Flow and Liquidity Background

The research notes do not provide a specific recent turnover figure for Huali or a systematic range for daily trading value. They only cite scattered figures in link titles, including RMB 43.1822 million, RMB 36.2106 million and RMB 9.9721 million, with inconsistent date definitions. Top-10 shareholder concentration and holdings by public funds, social-security funds and QFII are entirely absent, making it impossible to determine whether shares are concentrated among institutions or the controlling family/private-equity holders. Shareholder-structure data are generally disclosed with a delay of at least one quarter; even if later obtained, the cutoff year and potential changes must be stated. Based on confirmed information, Huali is a ChiNext athletic-footwear ODM/manufacturer. The research notes do not provide free-float market capitalization or liquidity-tier data, so no supported conclusion can be made regarding order-book depth or slippage.

The notes do not provide Huali’s normal daily trading-value range, so no stock-specific threshold for a trading-value expansion can be calibrated. As a follow-up, the 20-day average daily trading value could be used as a benchmark; a sustained daily trading value above 1.5x that benchmark, accompanied by price strength, could serve as an observation signal. The specific threshold should be determined after data are supplemented.

④ Items to Monitor (Observation Framework Only, Not Trading Instructions)

• Monitor whether the missing technical levels—moving-average cluster, upper and lower Bollinger Bands, and 52-week high and low—can be added to define short-term support and resistance; this is an observation framework, not a trading instruction.
• Monitor whether daily trading value remains persistently above its recent normal range and whether main-fund flows shift from reversals to sustained one-way movement; this is an observation framework, not a trading instruction.
• Monitor changes in market sentiment and fund flows before and after the 2026 H1 dividend record date of September 16, 2026; this is an observation framework, not a trading instruction.
• Monitor whether top-10 shareholder and institutional-holding data can be supplemented, bearing in mind the usual delay of at least one quarter, to assess shareholding structure and liquidity; this is an observation framework, not a trading instruction.

The above scenario analysis is based on limited historical-price and technical-indicator information available in the research notes. Short-term share prices are also affected by news, fund flows and broader market conditions. Technical indicators themselves are lagging and limited. Because the notes do not provide moving averages, Bollinger Bands, 52-week highs and lows, turnover or shareholder structure, the relevant ranges and thresholds cannot be quantified. This content does not guarantee future performance or constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and assume investment risks.

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

Global athletic-footwear manufacturing has a dual-concentration structure: brands and contract manufacturers are both concentrated. Nike, Adidas, Deckers, VF, Puma, New Balance and Anta are concentrated buyers, while a small number of large manufacturers, mainly Taiwan- and Hong Kong-based, fulfill orders. Scale and development capabilities are the key barriers to entry. Huali was positioned as the world’s second-largest athletic-footwear manufacturer under the 2021 definition. Its customers mainly demand athletic and casual footwear, with relatively low-to-mid pricing. For example, in 2020 H1 its average selling price was RMB 72.50 per pair for Nike (Converse) and RMB 80.20 per pair for the Nike brand, compared with approximately RMB 120–140 per pair for Feng Tay’s Nike products, or approximately twice Huali’s level (source: China Leather Net).

6.2 Competitive Landscape

• Industry characteristics: dual concentration of brands and contract manufacturers; scale and development capabilities are the key barriers.
• Huali’s positioning: the world’s second-largest athletic-footwear manufacturer under the 2021 definition, with a customer base focused on athletic and casual footwear and relatively low-to-mid pricing.
• Price comparison: RMB 72.50 per pair for Nike (Converse) and RMB 80.20 per pair for the Nike brand in 2020 H1, compared with approximately RMB 120–140 per pair for Feng Tay’s Nike products, or approximately twice Huali’s level (source: China Leather Net).
• Huali’s differentiation: ① a product line focused on athletic and casual footwear, unlike Feng Tay’s professional athletic footwear; ② the most balanced customer base, with the top five accounting for 91% but the largest customer only 39%, providing stronger resilience to single-customer volatility than Feng Tay; ③ large single-factory scale and vertical integration, including in-house soles and uppers; and ④ production locations in Vietnam, Indonesia and China, mitigating tariff and trade risks.
• Capacity and production footprint: total capacity in 2025 was 247.57 million pairs, or approximately 248 million pairs, up 8.3%; total output was 226.77 million pairs, up 2.6%; capacity utilization was 91.60%, down 5.12 percentage points from 96.72% in 2024; overseas capacity accounted for 98.75%; and new factories in Vietnam, Indonesia and China shipped a combined approximately 14.52 million pairs in 2025. Vietnam remains the primary production base, while Indonesia is a new focus. Indonesian factories began coming online in H1 2024 and produced 5.66 million pairs in 2025. The company plans combined Phase I and Phase II Indonesian capacity of 50–60 million pairs. It also has a new factory in Sichuan, which began production in February 2025 and shipped 670,000 pairs in H1.

6.3 Major Competitors

Compared with peers, Huali: ① focuses on athletic and casual footwear, unlike Feng Tay’s professional athletic footwear; ② has the most balanced customer base, with the top five accounting for 91% but the largest only 39%, giving it greater resilience to single-customer volatility than Feng Tay, whose largest customer accounts for approximately 85%; ③ operates large factories with vertical integration, including in-house soles and uppers; and ④ has production locations in Vietnam, Indonesia and China, mitigating tariff and trade risks. In terms of price, Huali’s 2020 H1 average selling price was RMB 72.50 per pair for Nike (Converse) and RMB 80.20 per pair for the Nike brand, versus approximately RMB 120–140 per pair for Feng Tay’s Nike products, or approximately twice Huali’s level, indicating a mid-to-low-end positioning. The direct comparison with Ching Feng-KY was not completed because of search-step limitations, and Ching Feng-KY’s concentration data were not retrieved. Some customer-concentration figures are secondary quotations from the prospectus and broker reports rather than original annual-report disclosures; the latest annual report should be used.

7. Risk Factors

• Customer concentration remains high and bargaining power with major customers is weak. Historically, the top five customers accounted for a high share of revenue. In 2022, the largest customer represented approximately 39% and the top five approximately 91%. If Nike, Converse, VF, Deckers or other major customers reduce orders, change suppliers or suffer operational deterioration, the company’s revenue and capacity utilization could be materially affected.
• Slower-than-expected new-factory ramp-up could continue to depress gross margin. New factories in China, Vietnam and Indonesia were built and commissioned intensively in 2025, resulting in low initial efficiency and high fixed costs. If capacity ramps more slowly than expected or orders are insufficient to absorb new capacity, unit costs and profit pressure may persist.
• There is a transition risk between shrinking legacy-customer orders and new-customer volume ramp-up. Adidas achieved mass production in multiple locations in 2025, and New Balance entered the top-five customer list, but athletic and casual footwear revenue still fell 12.36% in 2026 H1, indicating that new customers had not fully offset the decline in existing orders. If new-customer orders ramp more slowly than expected, revenue recovery could be delayed.
• Overseas operations and trade-policy changes may affect profits. Overseas capacity represented 98.75% of total capacity in 2025, primarily in Vietnam and Indonesia. Trade disputes and tariff concessions were cited as drags on performance during the reporting period. Changes in tariffs, trade rules or brands’ sourcing regions could cause order transfers, higher costs or greater profit concessions.
• Foreign-exchange volatility may have a significant short-term impact on profit. The company stated that foreign-exchange losses of approximately RMB 94 million affected 2026 H1 attributable net profit. If overseas operations expand and currency volatility continues, financial expenses and foreign-exchange gains/losses could create greater earnings volatility.
• The business and product mix remains concentrated. Athletic and casual footwear accounted for 90.93% of revenue in 2026 H1, while outdoor boots and footwear and athletic sandals/slippers both declined by more than 25%. If demand for athletic and casual footwear does not recover, other categories may not provide sufficient offset.
• There is a potential mismatch between large dividends, capital expenditure and operating cash requirements. The 2026 H1 proposed dividend of RMB 1.167 billion equals approximately 122.51% of attributable net profit for the period. At the same time, the company remains in a phase of overseas capacity construction and new-factory ramp-up. If operating cash flow does not improve as expected, funding pressure could increase.
• Corporate-governance and disclosure matters present verification risks. Existing information indicates that controlling shareholder Junyao Group was recorded as having received a warning letter from the Guangdong Regulatory Bureau of the CSRC, but the specific cause has not been cross-verified against the original regulatory document. Historical reduction data also contain duplicated quantities or inconsistencies with block-trade volumes. Subsequent formal announcements and equity-change disclosures should be monitored.

8. Conclusion and Outlook

Huali Industrial Group’s medium- to long-term growth depends on recovery in capacity utilization after new-factory ramp-up, sustained volume growth from new customers such as Adidas and New Balance, and further optimization of its customer and product mix. Because the company uses cost-plus pricing, margin improvement will depend more on production efficiency, capacity utilization and product mix than on raw-material-price movements or active price increases. If new-capacity utilization improves, brand orders recover and foreign-exchange pressure eases, profitability has room to recover.

The short-term operating inflection point is not yet clear. Revenue and profit declines remained significant in 2026 H1. Shrinking North American orders, weak global consumer demand, cautious brand ordering, trade disputes and tariff concessions jointly pressured performance. Earlier institutional forecasts for 2026 earnings were largely formed before the interim report and have been materially overtaken by the latest results. The latest single-broker forecast reduced implied full-year attributable net profit to approximately RMB 2.44 billion. The key items to monitor are order recovery, mature-factory utilization, new-factory ramp-up efficiency and gross-margin trends.

The company’s high payout ratio reflects a shareholder-return orientation, but the 2026 H1 dividend exceeds attributable net profit for the period. Its sustainability should therefore be assessed alongside future operating cash flow, capital expenditure and capacity-construction plans. Overall, the company has a foundation in large-scale manufacturing and customer expansion, but is currently in a phase where order adjustment and capacity conversion overlap. Future earnings sensitivity and uncertainty will mainly center on customer demand, overseas capacity efficiency and profit recovery.

Data Sources

• Huali Industrial Group (300979)_Company Overview_Share Price_Real-Time Market Data_Chart_News_Research Reports_FinScope-AI Makes Investing Simpler
• Huali Industrial Group (300979)_Stock Quote_CFi
• Huali Industrial Group to Pay RMB 10 per 10 Shares for 2026 H1; Record Date September 16, 2026
• Huali Industrial Group Company Limited (300979.SZ) Company Profile & Facts - Yahoo Finance - Skip to navigation Skip to main content Skip to right column
• 300599 Xiongsu Technology
• Huali Industrial Group: 33.09 -0.69% -0.23 300979 Sohu Securities
• Huali Industrial Group (300979.SZ): FY2023 Net Profit RMB 3.2 Billion, Down 0.86% - Jiemian News
• Huali Industrial Group Company Limited (300979.SZ) - Yahoo Finance Spain
• Huali Industrial Group: Investor Relations Management Information 20260908
• “Betting” on Humanoid Robots! 002979 Raises More Than RMB 1.1 Billion for Capacity Expansion
• Huali Industrial Group: Resolution of the Second Extraordinary General Meeting of Shareholders in 2026
• Huali Industrial Group: Resolution of the Second Extraordinary General Meeting of Shareholders in 2026
• Huali Industrial Group: 2026 H1 Dividend Implementation Announcement
• Huali Industrial Group
• Huali Industrial Group: 2026 H1 Dividend Implementation Announcement
• Huali Industrial Group: 2026 H1 Dividend Implementation Announcement_9F Wealth Management
• Securities Information - Huali Industrial Group - Tonghuashun
• Orient Fortune Securities
• 2025 Profitability Under Pressure; New Balance Enters the Top Five Customers
• Huali Industrial Group (300979): 2025 Profitability Under Pressure; New Balance Enters the Top Five Customers
• Shanxi Securities: Huali Industrial Group 2025 Annual-Report Review
• Huali Industrial Group: Stable Volume and Pricing, but Profitability Pressured by Capacity Ramp-Up and Allocation
• Shanxi Securities Gives Huali Industrial Group a Buy Rating
• Shanxi Securities—Huali Industrial Group—300979—2025 Profitability Under Pressure; New Balance Enters Top Five—260413 Research Report
• Annual-Report Review: Huali Industrial Group Grows Revenue Without Profit Growth; New-Factory Ramp-Up Weighs on Gross Margin
• Net Profit Plunges 16.5%! Athletic-Footwear Manufacturing Giant Posts Revenue Growth Without Profit Growth in 2025
• New Customers Drive Revenue Growth; Profit Margin Temporarily Pressured
• Huali Industrial Group (300979): New Customers Drive Revenue Growth; Profit Margin Temporarily Pressured
• Actual Revenue Mix by Product Category at Huali Industrial Group
• Huali Industrial Group: Financial Report Summary
• Huali Industrial Group (300979) Gross Margin - GuruFocus
• Huali Industrial Group (300979) Gross Margin
• Huali Industrial Group: The Contract-Manufacturing Challenge
• Huali Industrial Group (300979.SZ): FY2024 Net Profit RMB 3.840 Billion
• Huali Industrial Group Company Limited Reports Earnings Results for the Full Year Ended December 31, 2024
• Huali Industrial Group Company (SHE:300979) Income Statement
• 300979.SZ - Financials
• Huali Industrial Group Company (SHE:300979) Financials & Income Statement
• Huali Industrial Group (SZSE:300979) - Past Performance
• Huali Industrial Group Co Ltd (300979) Income Statement - Investing.com UK
• Huali Industrial Group Co Ltd (300979) Income Statement
• SZ:300979 Financials
• Huali Industrial Group: 2025 Net Profit Down 16.5%; Proposes RMB 11 per 10 Shares
• Huali Industrial Group: 2025 Net Profit RMB 3.207 Billion; Proposes RMB 11 per 10 Shares
• Huali Industrial Group: 2025 Net Profit Down 16.5%; Proposes RMB 11 per 10 Shares
• Huali Industrial Group: 2025 Net Profit Down 16.5%; Proposes RMB 11 per 10 Shares
• Annual-Report Review: Huali Industrial Group Revenue Up, Profit Down
• Huali Industrial Group (300979): 2025 Revenue Stable, Profit Weakened; Awaiting Recovery
• Huali Industrial Group: 2025 Net Profit RMB 3.207 Billion; Proposes RMB 11 per 10 Shares
• Huali Industrial Group (300979): 2025 Revenue Resilient, Attributable Net Profit Under Pressure
• Huali Industrial Group (300979): Stable Volume and Pricing, but Profitability Pressured by Capacity Ramp-Up
• Huali Industrial Group: 2025 Net Profit Down 16.5%; Proposes RMB 11 per 10 Shares
• Huali Industrial Group (300979) Earnings Data Center
• Huali Industrial Group (300979) Financial Analysis
• Huali Industrial Group (SZSE:300979) - Earnings and Revenue Performance
• Huali Industrial Group - Shanghai Securities Journal
• 300979 Huali Industrial Group Shenzhen K-Line Analysis
• 300979 Huali Industrial Group Shenzhen
• Huali Industrial Group (SZSE:300979) - Earnings and Revenue Performance
• Huali Industrial Group: 2026 H1 Management Discussion and Analysis
• Huali Industrial Group Company Information
• Huali Industrial Group Company Events
• Announcement on Participation in the 2026 Guangdong Investor Collective Reception Day
• Huali Industrial Group (300979.SZ) 2026 H1 Net Profit RMB 953 Million, Down 42.98%
• Huali Industrial Group (300979): 2026 H1 Performance Under Pressure; Interim Dividend Above Earnings
• Huali Industrial Group: 2026 H1 Interim Report Summary
• Huali Industrial Group H1 Net Profit Down 43%; Financial Expenses Up RMB 140 Million; Interim Payout Ratio 122%
• Huali Industrial Group (300979): Order Contraction and Foreign-Exchange Losses Weigh on Short-Term Profitability
• “Contract-Manufacturing Giant” Huali Industrial Group’s H1 Net Profit Plunges 43%, Yet It Still Pays RMB 1.167 Billion in Interim Dividends
• Huali Industrial Group Announces 2026 H1 Dividend Implementation Plan
• Huali Industrial Group
• Huali Industrial Group: Resolution of the Second Extraordinary General Meeting of Shareholders in 2026
• Huali Industrial Group: Resolution of the Second Extraordinary General Meeting of Shareholders in 2026
• Huali Industrial Group: Resolution of the Second Extraordinary General Meeting of Shareholders in 2026
• Huali Industrial Group: RMB 10 per 10 Shares; Record Date September 16
• Huali Industrial Group Establishes Emeishan Yongbang Footwear with 70% Stake
• Huali Industrial Group: Investor Relations Management Information 20260908
• Huali Industrial Group (300979) Quote
• Huali Industrial Group 32.94 +0.80%
• Market Data
• Huali Industrial Group Stock Report — 300979.SZ | Roic AI
• Huali Industrial Group (300979)
• Huali Industrial Group ROE
• Huali Industrial Group Stock Scoreboard
• Huali Industrial Group Company Limited Stock Price
• Peer Stocks
• Huali Industrial Group Up 2.05%, Trading Value RMB 43.1822 Million
• Huali Industrial Group Fund Flows
• Huali Industrial Group Up 2.11%, Trading Value RMB 36.2106 Million
• Huali Industrial Group Down 2.01%, Trading Value RMB 9.9721 Million
• Huali Industrial Group: Main-Fund Net Purchases of RMB 1.9895 Million on September 4
• Huali Industrial Group 33.09 -0.69%
• Huali Industrial Group 32.94 (+0.80%) Latest Price
• Huali Industrial Group 32.94 (+0.80%) Intraday Trades
• Huali Industrial Group (300979) Stock Commentary
• Huali Industrial Group (300979) Latest Price
• Huali Industrial Group Technical Analysis
• Huali Industrial Group (300979.SZ)
• Huali Industrial Group Technical Analysis
• Huali Industrial Group (300979)_Company Overview
• Bank of China (Hong Kong) Limited
• Huali Industrial Group (300979)
• Huali Industrial Group (300979)
• Huali Industrial Group (SZSE:300979) - Stock Analysis
• Huali Industrial Group Co. Ltd. A Financials

This report was automatically researched, compiled and generated by AI based on publicly available sources. The information cutoff is not specified by a unified price-data date in the research notes; market snapshots in the source links are dated September 4, 2026, September 11, 2026 and other dates, with the specific date determined by each source page. There is no consistent, verifiable closing-price snapshot date, and timeliness may vary. Specific data should be verified against the company’s official announcements and authoritative data terminals. This report is for information and research purposes only and does not constitute investment advice. Investors should make independent judgments and assume investment risks.