Group 1: PDD Holdings Inc. (PDD) - PDD Holdings provides an e-commerce platform focused on group buying deals primarily through Tencent's Wechat app [1] - The company has a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 18% over the last 60 days [1] - PDD Holdings has a PEG ratio of 0.34, significantly lower than the industry average of 0.58 [1] - The company possesses a Growth Score of A [1] Group 2: MINISO Group Holding Limited (MNSO) - MINISO offers design-led lifestyle products and holds a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 10.7% over the last 60 days [1] - MINISO has a PEG ratio of 1.05, compared to the industry average of 1.29 [1] - The company possesses a Growth Score of B [1] Group 3: Royal Caribbean Cruises (RCL) - Royal Caribbean operates three global brands: Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises [2] - The company has a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 9.5% over the last 60 days [2] - Royal Caribbean has a PEG ratio of 0.43, significantly lower than the industry average of 1.60 [2] - The company possesses a Growth Score of B [2]

[Company Information](index=3&type=section&id=Company%20Information) Details the company's leadership and public listing status - The company is led by Executive Director, Chairman, and CEO Mr. YE Guofu. The board includes three Independent Non-Executive Directors: Ms. XU Lili, Mr. ZHU Yonghua, and Mr. WANG Yongping[5](index=5&type=chunk) - MINISO Group Holding Limited is a publicly traded company listed on the Hong Kong Stock Exchange (Stock Code: 9896) and the New York Stock Exchange (NYSE Symbol: MNSO)[20](index=20&type=chunk) [Change of Financial Year end Date](index=6&type=section&id=Change%20of%20Financial%20Year%20end%20Date) The company changed its financial year-end from June 30 to December 31, impacting comparability of current period figures - On January 17, 2024, the Board changed the company's financial year-end date from June 30 to December 31. Consequently, this annual report covers the six-month period from July 1, 2023, to December 31, 2023, and some comparative figures may not be directly comparable[21](index=21&type=chunk) [Financial Performance Highlights](index=7&type=section&id=Financial%20Performance%20Highlights) Overview of key financial metrics showing significant growth in revenue and profitability for the six-month period Key Financial Metrics for the Six Months Ended December 31, 2023 | Financial Metric | For the six months ended Dec 31, 2023 (RMB thousands) | For the six months ended Dec 31, 2022 (RMB thousands) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | 7,632,467 | 5,266,878 | +44.9% | | **Gross Profit** | 3,241,039 | 1,985,660 | +63.2% | | **Operating Profit** | 1,553,707 | 957,070 | +62.3% | | **Profit for the period** | 1,256,077 | 763,911 | +64.4% | | **Adjusted Net Profit (Non-IFRS)** | 1,302,509 | 790,491 | +64.8% | - The company uses Adjusted Net Profit as a non-IFRS supplemental measure to assess operating performance. It is defined as profit for the period excluding equity-settled share-based payment expenses[23](index=23&type=chunk)[24](index=24&type=chunk) Reconciliation of Profit to Adjusted Net Profit (RMB thousands) | Description | For the six months ended Dec 31, 2023 (RMB thousands) | For the six months ended Dec 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | **Profit for the period** | 1,256,077 | 763,911 | | Add back: Equity-settled share-based payment expenses | 46,432 | 26,580 | | **Adjusted Net Profit (Non-IFRS)** | **1,302,509** | **790,491** | [Business Review and Outlook](index=10&type=section&id=Business%20Review%20and%20Outlook) Comprehensive review of operational performance, store network expansion, and strategic outlook for future growth [Business Review for the Six Months Ended December 31, 2023](index=10&type=section&id=Business%20Review%20for%20the%20Six%20Months%20Ended%20December%2031%2C%202023) During the six months ended December 31, 2023, MINISO demonstrated strong growth, expanding its global store network and achieving significant GMV. The company continued to innovate its product offerings under its two main brands, MINISO and TOP TOY, launching an average of 930 new SKUs per month for MINISO - The total number of MINISO stores globally increased from **5,791 to 6,413**, while TOP TOY stores grew from **118 to 148** in the six-month period[32](index=32&type=chunk) - The aggregate Gross Merchandise Volume (GMV) for the Group reached approximately **RMB 14.3 billion** for the six months ended December 31, 2023[32](index=32&type=chunk) - MINISO offered around **9,500 core SKUs** across 11 major categories, while TOP TOY offered around **8,400 SKUs** in categories like blind boxes, toy bricks, and model figures[33](index=33&type=chunk) [Store Network and Operations](index=11&type=section&id=Store%20Network%20and%20Operations) The company significantly expanded its store network both in China and overseas. In China, growth was driven by the MINISO Retail Partner model, with a strategic focus on penetrating lower-tier cities. Overseas expansion utilized a flexible mix of directly operated stores, retail partners, and distributors MINISO Store Count by Region and Model | Region/Model | As of Dec 31, 2023 | As of June 30, 2023 | | :--- | :--- | :--- | | **China** | **3,926** | **3,604** | | - Directly operated | 26 | 15 | | - Retail Partner | 3,878 | 3,569 | | - Distributor | 22 | 20 | | **Overseas** | **2,487** | **2,187** | | - Directly operated | 238 | 176 | | - Retail Partner | 283 | 252 | | - Distributor | 1,966 | 1,759 | | **Total** | **6,413** | **5,791** | - In China, the number of MINISO stores in third-tier or lower cities grew from **1,634 to 1,787**, reflecting the company's focus on penetrating these markets[44](index=44&type=chunk) - The number of MINISO Retail Partners in China increased from **1,040 to 1,064**, while the number of overseas distributors remained stable at **230**[47](index=47&type=chunk)[55](index=55&type=chunk) [Key Operating Data](index=17&type=section&id=Key%20Operating%20Data) Key operating metrics for the six-month period showed strong performance. MINISO China's GMV reached RMB 6.9 billion with an average spending per transaction of RMB 37.6. Overseas GMV was RMB 6.5 billion, led by the Americas. The TOP TOY brand also saw significant growth, with GMV reaching RMB 445 million MINISO China Operating Data (Six Months Ended Dec 31, 2023) | Metric | Value | | :--- | :--- | | Total GMV | RMB 6,895 million | | Avg. revenue per store | RMB 1.2 million | | Number of transactions | 183.2 million | | Avg. spending per transaction | RMB 37.6 | MINISO Overseas GMV by Region (Six Months Ended Dec 31, 2023) | Region | GMV (RMB millions) | | :--- | :--- | | Americas | 3,235 | | Asian countries (ex-China) | 2,323 | | Europe | 575 | | Others | 319 | | **Total** | **6,452** | TOP TOY Operating Data (Six Months Ended Dec 31, 2023) | Metric | Value | | :--- | :--- | | Total GMV | RMB 445 million | | Avg. revenue per store | RMB 2.8 million | | Avg. spending per transaction | RMB 118.7 | [Recent Developments and Business Outlook](index=20&type=section&id=Recent%20Developments%20and%20Business%20Outlook) Post-reporting period data indicates continued strong momentum, with significant year-over-year GMV growth in both China and overseas markets in early 2024. The company's future strategy focuses on globalization, product innovation with an emphasis on IP design, and store network optimization. Key initiatives include the "Super Store" strategy and targeting "Big Beauty," "Big Toys," and "Big IPs" as super categories - For the two months ended February 29, 2024, GMV of MINISO's offline stores in China increased by approximately **13% year-over-year**, while overseas business GMV grew by around **40% year-over-year**[70](index=70&type=chunk) - At its January 2024 Investor Day, the company announced its vision to become the **world's No.1 IP design retail group**, emphasizing product innovation, affordability, and globalization[73](index=73&type=chunk) - Future strategies include implementing a **"Super Store" strategy**, focusing on **"Big Beauty," "Big Toys," and "Big IPs"** as super categories, expanding into lower-tier cities in China, and continuing to grow in strategic overseas markets like North America, Asia, and Europe[74](index=74&type=chunk)[75](index=75&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) Detailed analysis of financial performance, liquidity, capital resources, and other key financial information for the period [Comparison of Six Months Ended Dec 31, 2023 vs. Six Months Ended Dec 31, 2022](index=25&type=section&id=Comparison%20of%20Six%20Months%20Ended%20Dec%2031%2C%202023%20vs.%20Six%20Months%20Ended%20Dec%2031%2C%202022) The company achieved substantial year-over-year growth across all key financial metrics. Total revenue increased by 44.9%, driven by strong performance in both China (+44.1%) and overseas markets (+46.3%). Profitability improved significantly, with gross profit rising 63.2% and profit for the period increasing by 64.4%. The gross margin expanded from 37.7% to 42.5%, attributed to product optimization, a higher contribution from directly operated overseas markets, and the brand upgrade strategy in China Year-over-Year Financial Performance (Six Months Ended Dec 31) | Metric | 2023 (RMB millions) | 2022 (RMB millions) | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 7,632.5 | 5,266.9 | +44.9% | | - China Revenue | 4,843.1 | 3,360.2 | +44.1% | | - Overseas Revenue | 2,789.3 | 1,906.7 | +46.3% | | **Gross Profit** | 3,241.0 | 1,985.7 | +63.2% | | **Operating Profit** | 1,553.7 | 957.1 | +62.3% | | **Profit for the Period** | 1,256.1 | 763.9 | +64.4% | - Gross margin increased from **37.7% to 42.5%** year-over-year, driven by product optimization, higher revenue from directly operated overseas markets, the brand upgrade in China, and a more profitable product mix for TOP TOY[109](index=109&type=chunk) - Selling and distribution expenses rose by **70.8% to RMB 1,363.1 million**, primarily due to increased personnel, logistics, IP licensing, and promotion expenses related to business growth and brand upgrades[111](index=111&type=chunk) [Liquidity, Capital Resources, and Other Financial Information](index=28&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Other%20Financial%20Information) The company maintained a strong liquidity position, primarily funded by cash from operations, with cash and other liquid assets totaling RMB 6.9 billion. The gearing ratio was extremely low at 0.1%. Key contingent liabilities include a tax payment commitment in Guangzhou and an ongoing securities class action lawsuit in the U.S. The company employed 4,964 full-time staff as of December 31, 2023 - As of December 31, 2023, cash, cash equivalents, restricted cash, term deposits, and other current investments totaled **RMB 6,887.0 million**[130](index=130&type=chunk) - The gearing ratio was **0.1%** as of December 31, 2023, calculated as loans and borrowings divided by total equity[141](index=141&type=chunk) - The company has a contingent liability related to a commitment to pay aggregate taxes of no less than **RMB 965.0 million** in Guangzhou over a five-year period ending in 2025. It is also facing a putative federal securities class action lawsuit in the U.S., for which the outcome cannot be assessed[144](index=144&type=chunk)[149](index=149&type=chunk) - The company had **4,964 full-time employees** as of December 31, 2023, with **2,375 in China** and **2,589 overseas**[154](index=154&type=chunk) [Directors' Report](index=33&type=section&id=Directors%27%20Report) Outlines principal risks, connected transactions, and dividend policy, providing insights into governance and shareholder returns [Principal Risks and Uncertainties](index=34&type=section&id=Principal%20Risks%20and%20Uncertainties) The company identifies three main categories of risks: business and industry risks, risks related to doing business in China, and risks related to its securities. Key business risks include dependence on brand strength, consumer discretionary spending, and successful product innovation. China-specific risks involve the legal system, potential government intervention, and regulatory scrutiny of U.S.-listed Chinese companies, including risks under the Holding Foreign Companies Accountable Act (HFCAA) - Business risks include dependence on brand strength, consumer demand, product innovation, and the performance of MINISO Retail Partners and distributors[169](index=169&type=chunk)[174](index=174&type=chunk) - Risks of doing business in China include potential delisting of ADSs under the HFCAA if the PCAOB cannot inspect auditors, PRC government regulatory oversight, and uncertainties in the legal system[177](index=177&type=chunk) [Connected Transactions](index=39&type=section&id=Connected%20Transactions) The company engaged in a continuing connected transaction with MINISO Lifestyle Nigeria Limited, an entity controlled by the company's Chairman and CEO, Mr. Ye Guofu. The transaction, governed by an IP Licensing, Sales and Distribution Framework Agreement, was reviewed by independent non-executive directors and the auditor, who confirmed it was conducted on normal commercial terms and within the approved annual cap - The transaction involves granting exclusive IP licenses and distribution rights in Nigeria to MINISO Nigeria, an associate of Controlling Shareholder Mr. Ye[191](index=191&type=chunk)[195](index=195&type=chunk) - For the six months ended December 31, 2023, the transaction amount was approximately **RMB 11.6 million**, which was below the pro-rated annual cap of **RMB 18.0 million**[196](index=196&type=chunk) [Dividends](index=43&type=section&id=Dividends) On March 12, 2024, the Board approved a special cash dividend of US$0.0725 per ordinary share (US$0.2900 per ADS). The total dividend payment amounted to approximately US$90.5 million, representing about 50% of the company's adjusted net profit for the six-month period - A special cash dividend of **US$0.0725 per ordinary share** was approved on March 12, 2024, for shareholders of record as of March 28, 2024[216](index=216&type=chunk) - The total dividend of approximately **US$90.5 million** represented about **50% of the adjusted net profit** for the six months ended December 31, 2023, and was distributed from additional paid-in capital[216](index=216&type=chunk) [Directors and Senior Management](index=47&type=section&id=Directors%20and%20Senior%20Management) Profiles the key individuals leading the company, including the Board of Directors and senior executives - Mr. YE Guofu is the founder, Chairman of the Board, and Chief Executive Officer, responsible for the overall strategy and management of the Group[248](index=248&type=chunk) - The senior management team includes Mr. YE Guofu (CEO), Ms. DOU Na (Executive VP, Product), Ms. YANG Yunyun (VP, Risk Management), and Mr. ZHANG Jingjing (CFO & VP)[262](index=262&type=chunk) - Mr. ZHANG Jingjing has served as the Chief Financial Officer and Vice President since January 2023 and also serves as a Joint Company Secretary[266](index=266&type=chunk)[269](index=269&type=chunk) [Corporate Governance Report](index=53&type=section&id=Corporate%20Governance%20Report) Details the company's governance structure, including board composition, risk management, and shareholder communication policies [Board Composition and Committees](index=54&type=section&id=Board%20Composition%20and%20Committees) The Board consists of one executive Director and three independent non-executive Directors, meeting the HKEX requirements for independence and board composition. The company deviates from the code provision of separating the Chairman and CEO roles, with Mr. Ye Guofu holding both positions to ensure consistent leadership. The Board has established an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee, each with a majority of independent directors - The company deviates from code provision C.2.1 of the Corporate Governance Code, as Mr. Ye Guofu serves as both Chairman and CEO. The Board believes this ensures consistent leadership and efficient strategic planning[289](index=289&type=chunk)[290](index=290&type=chunk) - The Audit Committee, chaired by Ms. XU Lili, comprises three independent non-executive Directors and is responsible for monitoring financial integrity and internal controls[312](index=312&type=chunk)[315](index=315&type=chunk) - The company has adopted a Board Diversity Policy and targets maintaining at least the current level of female representation (**1 out of 4 directors**) on its Board[329](index=329&type=chunk)[334](index=334&type=chunk) [Risk Management, Internal Control, and Shareholder Relations](index=68&type=section&id=Risk%20Management%2C%20Internal%20Control%2C%20and%20Shareholder%20Relations) The Board is responsible for the Group's risk management and internal control systems, which it reviewed and considered effective and adequate for the reporting period. The company has adopted a dividend policy effective July 27, 2023, targeting an annual dividend of no less than 50% of its annual adjusted net profit. Communication with shareholders is managed through a formal policy, an investor relations website, and annual general meetings - The Board, supported by the Audit Committee, reviewed the risk management and internal control systems for the period and considered them effective and adequate[341](index=341&type=chunk)[347](index=347&type=chunk) - A formal Dividend Policy was adopted on July 27, 2023, targeting an annual dividend of no less than **50% of the company's annual adjusted net profit**[360](index=360&type=chunk)[361](index=361&type=chunk) - The company maintains a Shareholders' communication policy to ensure effective two-way communication and provides up-to-date information on its investor relations website[362](index=362&type=chunk)[365](index=365&type=chunk) [Other Information](index=75&type=section&id=Other%20Information) Covers details on shareholding interests, incentive plans, share repurchases, and the utilization of offering proceeds [Disclosure of Interests](index=75&type=section&id=Disclosure%20of%20Interests) As of December 31, 2023, the company's founder, Chairman, and CEO, Mr. Ye Guofu, held a controlling interest. Through various entities and trusts, he and his spouse, Ms. Yang, are deemed to be interested in approximately 62.5% of the company's shares Interests of Directors and Substantial Shareholders (as of Dec 31, 2023) | Shareholder | Capacity/Nature of Interest | Number of Shares (Long Position) | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Ye Guofu & Ms. Yang | Interest in controlled corporations, trusts, and spouse's interest | 789,541,061 | 62.5% | [2020 Share Incentive Plan](index=79&type=section&id=2020%20Share%20Incentive%20Plan) The company operates a 2020 Share Incentive Plan to attract and retain talent. During the reporting period, RSUs representing 125,672 underlying shares were granted. As of December 31, 2023, 5,169,104 options and 5,958,256 RSUs were outstanding under the plan - The maximum aggregate number of shares that may be issued under the plan is **147,301,128**. As of December 31, 2023, awards representing **7,071,028 shares** were available for grant[397](index=397&type=chunk)[401](index=401&type=chunk) Movement of Share Options (Reporting Period) | Description | Number of Options | | :--- | :--- | | Outstanding as of July 1, 2023 | 5,701,396 | | Lapsed during the period | (104,800) | | Exercised during the period | (427,492) | | **Outstanding as of Dec 31, 2023** | **5,169,104** | Movement of Restricted Share Units (RSUs) (Reporting Period) | Description | Number of RSUs | | :--- | :--- | | Outstanding as of July 1, 2023 | 6,165,460 | | Granted during the period | 125,672 | | Lapsed during the period | (123,760) | | Vested during the period | (208,116) | | **Outstanding as of Dec 31, 2023** | **5,958,256** | [Share Repurchases and Use of Proceeds](index=85&type=section&id=Share%20Repurchases%20and%20Use%20of%20Proceeds) During the reporting period, the company repurchased shares on both the HKEX and NYSE under its share repurchase program. The use of proceeds from the July 2022 Global Offering is largely complete, with a remaining unutilized amount of HK$20.6 million designated for strengthening technology capabilities Share Repurchases (Six Months Ended Dec 31, 2023) | Exchange | Shares/ADSs Repurchased | Aggregate Consideration | | :--- | :--- | :--- | | HKEX | 708,400 Shares | HKD 26,290,421 | | NYSE | 362,527 ADSs (1,450,108 Shares) | USD 6,981,016 | - From the **HKD 482.1 million** net proceeds of the Global Offering, **HKD 461.5 million** has been utilized as of December 31, 2023. The remaining **HKD 20.6 million** is expected to be fully used within 48 months from the Listing Date[426](index=426&type=chunk)[429](index=429&type=chunk) [Independent Auditor's Report](index=89&type=section&id=Independent%20Auditor%27s%20Report) Presents the auditor's unqualified opinion on the consolidated financial statements and highlights key audit matters - The auditor, KPMG, issued an **unqualified opinion**, stating that the consolidated financial statements give a true and fair view of the Group's financial position as of December 31, 2023, and its financial performance for the six months then ended[435](index=435&type=chunk) - The Key Audit Matters identified were: 1. Assessment of write-down of inventories, due to the high degree of subjective judgment required in forecasting future product demand and selling prices 2. Assessment of impairment of property, plant and equipment, and right-of-use assets related to self-operated stores, due to the subjectivity and sensitivity of assumptions like forecasted sales and market rentals[439](index=439&type=chunk)[441](index=441&type=chunk)[446](index=446&type=chunk) [Consolidated Financial Statements](index=97&type=section&id=Consolidated%20Financial%20Statements) Presents the comprehensive consolidated financial statements, including profit or loss, financial position, and cash flows Consolidated Financial Statement Summary (RMB thousands) | Statement Item | For the six months ended Dec 31, 2023 (RMB thousands) | As of Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | **Profit or Loss:** | | | | Revenue | 7,632,467 | - | | Profit for the period | 1,256,077 | - | | **Financial Position:** | | | | Total Assets | - | 14,485,309 | | Total Liabilities | - | 5,294,092 | | Total Equity | - | 9,191,217 | | **Cash Flows:** | | | | Net cash from operating activities | 1,097,541 | - | | Net cash from investing activities | 177,073 | - | | Net cash used in financing activities | (1,320,899) | - | [Five Year Financial Summary](index=243&type=section&id=Five%20Year%20Financial%20Summary) Provides a historical overview of key financial data over the past five years for trend analysis Historical Financial Data (RMB thousands) | Metric | FY 2021 (RMB thousands) | FY 2022 (RMB thousands) | FY 2023 (RMB thousands) | 6M ended Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 9,071,659 | 10,085,649 | 11,473,208 | 7,632,467 | | **Profit/(loss) before taxation** | (1,216,192) | 906,813 | 2,333,614 | 1,652,742 | | **Total assets** | 10,705,030 | 11,281,788 | 13,447,713 | 14,485,309 | | **Total liabilities** | 4,052,876 | 4,254,388 | 4,529,445 | 5,294,092 |

Financial Performance - Revenue for the quarter ended March 31, 2024, was RMB 3,723.5 million (USD 515.7 million), representing a year-over-year increase of 26.0%[10] - Gross profit for the same period was RMB 1,616.5 million (USD 223.9 million), with a year-over-year growth of 39.1%[10] - The gross margin improved to 43.4%, up from 39.3% in the same quarter of 2023[10] - Operating profit reached RMB 743.3 million (USD 102.9 million), reflecting a year-over-year increase of 29.1%[10] - Adjusted net profit for the quarter was RMB 616.9 million (USD 85.4 million), a year-over-year increase of 27.7%[10] - Adjusted EBITDA for the quarter was RMB 965.3 million (USD 133.7 million), reflecting a year-over-year growth of 36.7%[10] - The adjusted EBITDA margin improved to 25.9%, compared to 23.9% in the same quarter of 2023[10] - Revenue for the three months ended March 31, 2024, increased by 26.0% to RMB 3,723,531, compared to RMB 2,954,148 in the same period of 2023[42] - Gross profit for the same period rose to RMB 1,616,458, reflecting a gross margin of 43.4%, up from RMB 1,161,745 and a margin of 39.3% in 2023[42] - Operating profit increased to RMB 743,285, representing a growth of 29.1% from RMB 575,921 in the previous year[42] - Adjusted net profit for the three months ended March 31, 2024, was RMB 616,891, up 28.0% from RMB 483,016 in 2023[44] - The company reported a net profit of RMB 585,954 for the three months ended March 31, 2024, compared to RMB 470,927 in the same period of 2023, representing a year-over-year increase of 24.4%[43] Store Expansion - The number of MINISO stores reached 6,630 as of March 31, 2024, with a net addition of 217 stores in the quarter, nearly tripling the net additions from the same period last year[13] - The number of stores in mainland China surpassed 4,000, reaching 4,034, with a net addition of 108 stores in the quarter, close to double the net additions from the previous year[13] - The overseas store count increased to 2,596, with a net addition of 109 stores in the quarter, significantly up from 16 stores added in the same period last year[13] - The number of MINISO stores in mainland China reached 4,034 as of March 31, 2024, an increase of 651 stores year-over-year[48] - The number of overseas MINISO stores grew to 2,596, marking an increase of 465 stores compared to the previous year[50] - The company plans to open 900 to 1,100 new stores in 2024, building on the fastest store opening pace in its history during the March quarter[15] Revenue Sources - Revenue from overseas markets grew by 52.6% to RMB 1,221.9 million (USD 169.2 million), accounting for 32.8% of total revenue, up from 27.1% in the same period last year[16] - Total revenue reached RMB 3,723.5 million (USD 515.7 million), a year-on-year increase of 26%, driven by a 19.3% increase in average store count and approximately 9% same-store sales growth[16] - The average store count in mainland China increased by 18.7%, contributing to a 15.6% revenue growth from offline stores[16] - The company’s overseas revenue surged by 52.6% to RMB 1,221,866, compared to RMB 800,916 in the same period of 2023[46] Expenses and Costs - Sales and distribution expenses grew by 58.5% to RMB 696.0 million (USD 96.4 million), primarily due to increased personnel-related costs and logistics expenses[19] - Sales and distribution expenses increased to RMB 696,027, up from RMB 439,018 in the previous year, reflecting a growth of 58.7%[42] Strategic Goals - The company remains committed to a long-term growth strategy, targeting a compound annual revenue growth rate of no less than 20%[15] - The company plans to continue expanding its market presence and enhancing product offerings in the future[36] - The company has outlined its strategic goals and operational plans, which include addressing market demand and improving relationships with consumers and suppliers[36] Asset Management - As of March 31, 2024, total assets amounted to RMB 14,905,726 thousand, an increase from RMB 14,485,309 thousand as of December 31, 2023, representing a growth of approximately 2.9%[39] - Non-current assets increased from RMB 4,157,675 thousand to RMB 4,326,624 thousand, reflecting a rise of about 4.1%[39] - Cash and cash equivalents rose from RMB 6,415,441 thousand to RMB 6,737,918 thousand, indicating an increase of approximately 5%[39] - Inventory decreased from RMB 1,922,241 thousand to RMB 1,873,861 thousand, showing a decline of around 2.5%[39] - Trade and other receivables decreased from RMB 1,518,357 thousand to RMB 1,440,199 thousand, a reduction of about 5.1%[39] Financial Metrics - The adjusted net profit margin is calculated based on adjusted net profit divided by revenue, providing a clearer view of operational performance[32] - The company reported a significant increase in adjusted EBITDA, which is defined as adjusted net profit plus depreciation, amortization, finance costs, and income tax expenses[32] - The company emphasizes the importance of non-IFRS financial metrics for evaluating operational performance and business planning[33]

Core Viewpoint - MINISO Group reported strong financial results for the quarter ended March 31, 2024, with significant year-over-year growth in revenue, gross profit, and store expansion, driven by effective IP and globalization strategies [1][7]. Financial Highlights - Revenue reached RMB3,723.5 million (US$515.7 million), a 26.0% increase year over year [2][8]. - Gross profit was RMB1,616.5 million (US$223.9 million), reflecting a 39.1% year-over-year increase [2][10]. - Gross margin improved to 43.4%, up from 39.3% in the same period of 2023 [2][11]. - Operating profit increased by 29.1% to RMB743.3 million (US$102.9 million) [2][14]. - Profit for the period was RMB586.0 million (US$81.2 million), a 24.4% increase year over year [2][14]. - Adjusted net profit rose by 27.7% to RMB616.9 million (US$85.4 million) [2][14]. - Adjusted EBITDA was RMB965.3 million (US$133.7 million), marking a 36.7% increase year over year [2][14]. Operational Highlights - As of March 31, 2024, MINISO operated 6,630 stores globally, with a net addition of 217 stores in the March Quarter, nearly tripling the previous year's figure [3][5]. - The number of MINISO stores in mainland China reached 4,034, with a net addition of 108 stores in the March Quarter [3][5]. - Overseas stores totaled 2,596, with a net opening of 109 stores, significantly up from 16 in the same period last year [3][5]. - TOP TOY stores increased to 160, with a year-over-year growth of 44 stores [3][5]. Revenue Breakdown - Revenue from mainland China increased by 16.2% to RMB2,501.7 million (US$346.5 million), driven by a 15.6% increase in offline store revenue [8][9]. - Revenue from overseas markets surged by 52.6% to RMB1,221.9 million (US$169.2 million), attributed to a 19.7% expansion in average store count and a robust same-store sales growth of around 21% [9][10]. - Revenue from directly operated overseas markets contributed approximately 58% to total overseas revenue, indicating strong performance in these regions [10][11]. Management Commentary - The CEO highlighted the fastest pace of store openings in the first quarter ever and expressed confidence in achieving a net addition of 900 to 1,100 stores in 2024 [7]. - The CFO noted that gross margin reached 43.4%, higher than the previous peak season, and emphasized the company's focus on improving gross margin through core capabilities [7][12].

Summary of Conference Call Company and Industry - The discussion revolves around the new consumption sector, specifically focusing on Ming Chuang You Pin and Pop Mart as leading companies in this industry [1] Core Points and Arguments - The current market sentiment is positive, with a recovery in the Hong Kong stock market, prompting investors to seek recommended stocks [1] - Ming Chuang You Pin is highlighted as a top recommendation for investors, indicating strong growth potential [1] - The overseas market is identified as the primary growth driver for Ming Chuang You Pin, suggesting that international expansion is a key strategy for the company [1] Other Important Content - The mention of Pop Mart alongside Ming Chuang You Pin suggests a competitive landscape in the new consumption sector, indicating that both companies are recognized leaders [1] - The call emphasizes the importance of understanding market trends and consumer behavior in driving investment decisions in this sector [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to capitalize on established price movements for profitable trades [1] Company Overview: MINISO Group Holding Limited (MNSO) - MNSO currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2] - The stock has shown significant price increases, with a 1.65% rise over the past week and a 14.16% increase over the past month, outperforming its industry [3] Price Performance - Over the past quarter, MNSO shares have risen by 45.84%, and by 43.57% over the last year, significantly outperforming the S&P 500, which increased by 3.78% and 27.1% respectively [3] Trading Volume - MNSO's average 20-day trading volume is 1,411,682 shares, which serves as a bullish indicator when combined with rising stock prices [4] Earnings Outlook - In the last two months, 2 earnings estimates for MNSO have been revised upwards, increasing the consensus estimate from $1.17 to $1.24 [5] - For the next fiscal year, 2 estimates have also moved upwards with no downward revisions, indicating positive earnings momentum [5] Conclusion - Given the strong performance metrics and positive earnings outlook, MNSO is positioned as a strong buy candidate with a Momentum Score of A [6]

股 票 研 究 [Table_industryInfo] 批零贸易业 [ Table_Main[名I Tnaf 创bol]e 优_Ti品tle]（ 9896） [评Tab级le_：Inv est] 增持 当前价格（港元）： 45.15 海外驱动 IP 提振，2024Q1 业绩或超预期 2024.05.02 海 ——名创优品FY2024Q1 业绩前瞻 [ 交Ta易bl数e_M据a rket] 外 刘越男(分析师) 苏颖(分析师) 52周内股价区间（港元） 29.15-58.45 当前股本（百万股） 1,264 公 021-38677706 021-38038344 当前市值（百万港元） 57,056 司 liuyuenan@gtjas.com suying@gtjas.com 证书编号 S0880516030003 S0880522110001 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 2024Q1业绩或好于前期指引，Chiikawa上新引爆同店拉动可期；海外拓店提速、直 名创优品 恒生指数 香 营业务持续高增，IP销售占比提升仍有较大空间，IP设计零售集团值得期待。 7 ...

MINISO Group Holding Limited Unsponsored ADR (MNSO) closed the last trading session at $23.14, gaining 9.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $29.59 indicates a 27.9% upside potential.The average comprises three short-term price targets ranging from a low of $27.90 to a high of $31.86, with a standard deviation of $2.04. While the lowest estimate indicates an increase ...

GUANGZHOU, China, April 30, 2024 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO; HKEX: 9896) ("MINISO", "MINISO Group" or the "Company"), a global value retailer offering a variety of trendy lifestyle products featuring IP design, today announced that it plans to release its March quarter 2024 financial results before the U.S. market opens on Tuesday, May 14, 2024. The Company's management will hold an earnings conference call at 5:00 A.M. Eastern Time on Tuesday, May 14, 2024 (5:00 P.M. Beijing T ...