Chinese fashion leading brand Hailan Home has been removed from MSCI China Index, with the change set to take effect after the market closes on November 24. This move indicates that its market liquidity and capital attention will be under pressure.
On November 6, the international index compilation company MSCI announced the results of its November 2025 index review. In the latest adjustment of the MSCI China Index, 26 Chinese companies have been newly included while 20 have been removed, including the men’s clothing brand Hailan Home (600398.SH).
The MSCI index is an important benchmark for global investment managers. A company being included in the MSCI China Index usually means that it will attract significant international capital attention and placements. Conversely, being removed could impact its market liquidity and capital attention.
According to the third quarter report of 2025, the company’s overall revenue was 15.599 billion yuan, a year-on-year increase of 2.23%; however, the main brand “Hailan Home” revenue was 10.849 billion yuan, a year-on-year decrease of 3.99%. This brand has seen a continuous decline in financial performance since the second half of 2024.
The report indicates that as of the end of September 2025, Hailan Home had a total of 7,241 brand stores. Among them, 2,220 were self-operated stores, accounting for 30.66%. Offline stores are spread across 31 provinces, autonomous regions, and municipalities, covering over 80% of counties and cities, with further expansion into Southeast Asian markets.
China Newsweek reported that the removal of Hailan Home from the MSCI China Index may stem from its recent performance.
The report stated that Hailan Home had signed contracts with new-generation stars such as Pan Zhanle, Chen Zheyuan, Cao Jun, and Zeng Shunxi in an attempt to connect with young consumers. From 2020 to the first half of 2025, its cumulative advertising costs exceeded 2.5 billion yuan.
However, the high-intensity marketing investment did not lead to corresponding revenue growth. After reaching a revenue high of 21.97 billion yuan in 2019, Hailan Home entered into a cycle of “increase one year, decrease the next.” By 2024, revenue had dropped to 20.957 billion yuan. The downward trend in profitability is even more pronounced, with net profit attributable to shareholders falling from 3.211 billion yuan in 2019 to 2.159 billion yuan in 2024, representing only about 60% of the peak period in 2018.
According to the financial reports of previous years, Hailan Home’s net profit attributable to shareholders was 1.785 billion yuan in 2020, a year-on-year decrease of 44.42%; it rose to 2.491 billion yuan in 2021, an increase of 39.60%; dropped to 2.155 billion yuan in 2022, a decrease of 13.49%; rebounded to 2.952 billion yuan in 2023, an increase of 36.96%; and once again declined to 2.159 billion yuan in 2024, a decrease of 26.88%.
In the first half of 2025, its net profit attributable to shareholders continued its downward trend, dropping by 3.42% to 1.58 billion yuan year-on-year, reflecting the insufficient stability of its profitability.
Founded in 1997, Hailan Home has long held a significant position in the men’s clothing market, known as the “wardrobe for men.”
In 2014, Hailan Home went public by shell listing on the A-share market. In 2015, Hailan Home’s market value reached a peak of 82.5 billion, becoming a leading enterprise in the textile and clothing industry.
In 2017, Hailan Home began to expand its overseas market, focusing on Southeast Asia. By the first half of 2025, Hailan Home had 111 overseas stores, but its overseas market revenue has never exceeded 2%.
From 2020 to 2024, Hailan Home’s overseas market revenue was 111 million yuan, 86 million yuan, 219 million yuan, 272 million yuan, and 355 million yuan, accounting for 0.6%, 0.4%, 1.2%, 1.3%, and 1.7% of total revenue, respectively.