Summary of Miniso (MNSO) Investor Meeting Company Overview - **Company**: Miniso (MNSO) - **Industry**: Retail, focusing on IP (Intellectual Property) products and lifestyle goods Key Points from the Meeting 1. Growth and Performance - Management expressed confidence in achieving solid topline growth and operational improvements, particularly in the US market, supporting margin performance for Q3 and the upcoming holiday season [1][8] - The company is on track for healthy and quality growth, with expectations for better performance than the previous year due to improved product planning and execution [8][9] 2. Strategic Focus Areas - **Self-owned IP Development**: Miniso aims to become a global leading IP platform, leveraging its supply chain and marketing strengths to attract IP artists [1][9] - **Store Strategy**: Transitioning from fragmented store openings to cluster openings to enhance brand awareness and marketing efficiency [6][8] - **Real Estate Strategy**: Focus on larger store formats (7,000 to 12,000 square feet) in high-traffic areas, with a target of 1,500 to 2,000 stores in the US market [8][9] 3. Market Positioning - Miniso's diversified product offering positions it as a one-stop shopping destination for families, with a mix of competitive IP goods and value products [8][9] - The company has a competitive advantage in product quality and affordability compared to local peers [8][9] 4. Operational Improvements - Implementation of a data-centric operation system has improved inventory turnover by 10% compared to the previous year [6][8] - Hiring local talents and building a data-driven labor model to enhance labor allocation and efficiency [6][8] 5. Financial Outlook - Management reiterated a commitment to sustainable same-store sales growth (SSSG) and expects to deliver better performance in Q4 due to well-planned products and marketing strategies [8][9] - The company is well-prepared for the second half of the year with inventory management strategies to mitigate tariff impacts [8][9] 6. Recent Developments - Miniso opened an IP Land store in Guangzhou, achieving monthly sales of RMB 7 million to 8 million with a payback period of only 3-4 months [9][10] - The company is considering channel upgrades in markets like Indonesia, where it entered earlier [10] Additional Insights - Management believes that 2/3 of Miniso's stores in China are worth upgrading to enhance brand equity and attract better rental terms [10] - The company is positioned to capture synergies with its Top Toy brand, which focuses on pop toys, while Miniso covers a broader category range [10] Investment Thesis - Miniso is rated as a "Buy" with a 12-month price target of $29 for ADR and HK$56 for H-share, reflecting a near-term growth outlook and potential for a 20% adjusted net income CAGR from 2024 to 2026 [15][16] Risks - Key risks include lower store productivity due to competition, geopolitical risks, and higher-than-expected operational expenses [15][16]

Group 1 - The new CEO of Yonghui Supermarket, Wang Shoucheng, has been appointed after a vacancy of nearly six months [2][4] - Wang Shoucheng, born in April 1991, holds a master's degree from Peking University and joined Yonghui in 2017 as a management trainee [2][4] - Following the acquisition of 29.4% of Yonghui's shares by Miniso's subsidiary Jun Cai International for 6.27 billion yuan, Miniso became the largest shareholder of Yonghui [4] Group 2 - The management structure of Yonghui has been adjusted after Miniso became the largest shareholder, with the establishment of a reform leadership group led by Miniso's founder Ye Guofu [4] - The previous CEO, Li Songfeng, was not reappointed during the temporary shareholders' meeting held on March 17, 2025, leading to the interim delegation of CEO responsibilities to the reform leadership group [4]

[Company Information](index=3&type=section&id=Company%20Information) [Directors and Committees](index=3&type=section&id=Directors%20and%20Committees) The company discloses its board members, including Executive Director Mr. Ye Guofu (Chairman and CEO) and three independent non-executive directors, along with the composition and chairs of the Audit, Remuneration, Nomination, and Corporate Governance Committees - Mr. Ye Guofu serves as Executive Director, Chairman, and Chief Executive Officer[4](index=4&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination and Corporate Governance Committee are all chaired or primarily composed of independent non-executive directors[4](index=4&type=chunk)[5](index=5&type=chunk) [Corporate Details](index=4&type=section&id=Corporate%20Details) This section provides essential company information, including its principal place of business, registered office, auditor, share registrar, principal bankers, stock codes, and company website - The company's auditor is Ernst & Young[6](index=6&type=chunk)[7](index=7&type=chunk) - Hong Kong stock code is **9896**, and NYSE stock code is **MNSO**[8](index=8&type=chunk)[9](index=9&type=chunk) [Financial Performance Highlights](index=6&type=section&id=Financial%20Performance%20Highlights) [Key Financial Metrics](index=6&type=section&id=Key%20Financial%20Metrics) During the reporting period, the company's revenue increased by **21.1%** year-over-year to **RMB 9,393.1 million**, gross profit grew by **22.6%**, but profit for the period decreased by **23.1%** year-over-year, while adjusted net profit and adjusted EBITDA both increased For the six months ended June 30, Key Financial Data (RMB'000) | Metric | 2024 (RMB'000) | 2025 (RMB'000) | Year-over-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 7,758,743 | 9,393,112 | 21.1% | | Gross Profit | 3,389,786 | 4,156,918 | 22.6% | | Operating Profit | 1,494,809 | 1,545,949 | 3.4% | | Profit for the Period | 1,177,379 | 905,990 | (23.1)% | | Basic Earnings Per Share (RMB) | 0.94 | 0.74 | (21.3)% | | Adjusted Net Profit (Non-IFRS) | 1,241,886 | 1,278,674 | 3.0% | | Adjusted EBITDA (Non-IFRS) | 1,967,354 | 2,186,776 | 11.2% | [Non-IFRS Financial Measures](index=6&type=section&id=Non-IFRS%20Financial%20Measures) The company uses adjusted net profit, adjusted EBITDA, and adjusted basic and diluted net earnings per share as supplementary metrics to evaluate operating performance and formulate business plans, excluding non-cash and other adjustment items - Adjusted net profit excludes equity-settled share-based payment expenses, fair value changes in derivative instruments, issuance costs of derivative instruments, interest expenses related to equity-linked securities and bank loans for Yonghui equity acquisition, and share of loss from Yonghui (net of tax)[11](index=11&type=chunk)[12](index=12&type=chunk) - Adjusted EBITDA is adjusted net profit plus depreciation and amortization, finance costs (excluding interest expenses related to equity-linked securities and bank loans for Yonghui equity acquisition), and income tax expense[11](index=11&type=chunk)[12](index=12&type=chunk) Adjusted Net Profit and Adjusted EBITDA Reconciliation (RMB'000) | Metric | 2024 (RMB'000) | 2025 (RMB'000) | | :--- | :--- | :--- | | Profit for the Period | 1,177,379 | 905,990 | | Add back: Equity-settled share-based payment expenses | 64,507 | 40,586 | | Add back: Fair value changes in derivative instruments | – | 39,748 | | Add back: Issuance costs of derivative instruments | – | 44,664 | | Add back: Interest expenses related to equity-linked securities and bank loans for Yonghui equity acquisition | – | 128,351 | | Add back: Share of loss from Yonghui, net of tax | – | 119,335 | | **Adjusted Net Profit** | **1,241,886** | **1,278,674** | | Add back: Depreciation and amortization | 333,131 | 554,016 | | Add back: Finance costs (excluding specific interest expenses) | 40,595 | 65,885 | | Add back: Income tax expense | 351,742 | 288,201 | | **Adjusted EBITDA** | **1,967,354** | **2,186,776** | [Business Review and Outlook](index=10&type=section&id=Business%20Review%20and%20Outlook) [Business Overview](index=10&type=section&id=Business%20Overview) As a global value retailer, the company offers IP-designed trendy lifestyle products under its two main brands, MINISO and TOP TOY, with a total Group GMV of approximately **RMB 16.7 billion** as of June 30, 2025 - The company primarily operates two brands, **MINISO** and **TOP TOY**, offering IP-designed trendy lifestyle products[23](index=23&type=chunk)[27](index=27&type=chunk) - For the six months ended June 30, 2025, the Group's total GMV was approximately **RMB 16.7 billion**[24](index=24&type=chunk)[27](index=27&type=chunk) - The MINISO brand launches approximately **1,800 SKUs** monthly across **11** main categories, while the TOP TOY brand offers over **11,000 SKUs**[25](index=25&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk) [Store Network & Operations](index=11&type=section&id=Store%20Network%20%26%20Operations) As of June 30, 2025, MINISO had **7,612** global stores and TOP TOY had **293** stores, with the company expanding its overseas market share, particularly in North America and Europe, through direct operation, MINISO Partner, and agent models MINISO Store Count (As of June 30) | Region | 2024 | 2025 | | :--- | :--- | :--- | | Mainland China | 4,115 | 4,305 | | Overseas | 2,753 | 3,307 | | **Total** | **6,868** | **7,612** | TOP TOY Store Count (As of June 30) | Operating Model | 2024 | 2025 | | :--- | :--- | :--- | | Direct-operated Stores | 21 | 38 | | MINISO Partner Stores | 174 | 250 | | Agent Stores | – | 5 | | **Total** | **195** | **293** | - Overseas MINISO store count significantly increased, with North America stores growing from **234** to **394**, and Europe from **244** to **319**[48](index=48&type=chunk) [Key Operating Data](index=16&type=section&id=Key%20Operating%20Data) During the reporting period, MINISO's GMV in mainland China grew to **RMB 7.8 billion**, with increases in total transactions and SKU sales, but a decrease in same-store GMV growth rate; overseas MINISO GMV grew to **RMB 7.33 billion**, also with a decrease in same-store GMV growth rate, while TOP TOY brand GMV significantly increased to **RMB 1.048 billion** Key Operating Data for MINISO Stores in Mainland China (For the six months ended June 30) | Metric | 2024 | 2025 | | :--- | :--- | :--- | | GMV (RMB millions) | 7,097 | 7,800 | | Total Transactions (millions) | 184.3 | 198.9 | | Total SKU Sales (millions) | 486.4 | 527.4 | | Average Transaction Value (RMB yuan) | 38.5 | 39.2 | | Average Selling Price (RMB yuan) | 14.6 | 14.8 | | Same-store GMV Growth Rate (%) | Low single-digit decrease | Low single-digit decrease | Overseas MINISO Store GMV (RMB millions) (For the six months ended June 30) | Region | 2024 | 2025 | | :--- | :--- | :--- | | Total | 6,401 | 7,330 | | Asia (excluding China) | 2,353 | 2,567 | | North America | 844 | 1,414 | | Latin America | 2,383 | 2,257 | | Europe | 527 | 744 | | Other | 294 | 348 | Key Operating Data for TOP TOY Brand (For the six months ended June 30) | Metric | 2024 | 2025 | | :--- | :--- | :--- | | TOP TOY Store GMV (RMB millions) | 521 | 795 | | Total Transactions (millions) | 4.7 | 7.2 | | Total SKU Sales (millions) | 8.9 | 14.2 | | Average Transaction Value (RMB yuan) | 111.2 | 109.8 | | Average Selling Price (RMB yuan) | 58.8 | 56.1 | | Same-store GMV Growth Rate (%) | Mid-teen increase | Low single-digit decrease | [Recent Developments](index=19&type=section&id=Recent%20Developments) Post-reporting period, the TOP TOY brand completed a strategic financing round led by Temasek, valuing the brand at approximately **HKD 10 billion**, indicating market recognition of its business model and global expansion - The **TOP TOY** brand completed a strategic financing round led by Temasek[63](index=63&type=chunk)[66](index=66&type=chunk) - Post-transaction, TOP TOY's valuation is approximately **HKD 10 billion**[63](index=63&type=chunk)[66](index=66&type=chunk) [Business Outlook](index=19&type=section&id=Business%20Outlook) The company will continue to uphold its core philosophies of high cost-effectiveness, globalization, and product innovation, aiming for high-quality growth in mainland China through store network expansion and upgrades, steadfastly pursuing its globalization strategy in overseas markets, and continuously optimizing TOP TOY's product supply and operational efficiency - In the second half of 2025, the company will focus on **high cost-effectiveness**, **globalization**, and **product innovation**[64](index=64&type=chunk)[67](index=67&type=chunk) - The MINISO brand in mainland China will achieve high-quality growth by expanding and upgrading its store network, providing immersive shopping experiences, and continuously innovating products[65](index=65&type=chunk)[67](index=67&type=chunk) - The overseas MINISO brand will steadfastly pursue its globalization strategy, expand its store network, adopt diversified localization strategies, and strengthen IP collaborations and star product launches[68](index=68&type=chunk)[70](index=70&type=chunk) - The TOP TOY brand will continue to optimize product supply and enhance operational efficiency to increase market share and strengthen brand image[69](index=69&type=chunk)[71](index=71&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Performance Analysis](index=21&type=section&id=Financial%20Performance%20Analysis) During the reporting period, the company's total revenue increased by **21.1%** year-over-year, primarily driven by strong growth in overseas markets and the TOP TOY brand, with gross margin improving by **0.6** percentage points to **44.3%**; however, profit for the period decreased by **23.1%** year-over-year due to a significant increase in selling and distribution expenses from increased direct store investments, as well as finance costs and losses from the Yonghui investment Key Items from Unaudited Consolidated Statement of Profit or Loss for the six months ended June 30 (RMB'000) | Metric | 2024 (RMB'000) | 2025 (RMB'000) | Year-over-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 7,758,743 | 9,393,112 | 21.1% | | Cost of Sales | (4,368,957) | (5,236,194) | 19.8% | | Gross Profit | 3,389,786 | 4,156,918 | 22.6% | | Selling and Distribution Expenses | (1,522,088) | (2,181,022) | 43.3% | | General and Administrative Expenses | (418,573) | (503,656) | 20.3% | | Operating Profit | 1,494,809 | 1,545,949 | 3.4% | | Net Finance Income/(Costs) | 34,011 | (128,400) | (477.5)% | | Share of Profit/(Loss) of Equity-Accounted Investees | 301 | (138,946) | (46294.0)% | | Profit for the Period | 1,177,379 | 905,990 | (23.1)% | - Revenue growth was primarily driven by the MINISO brand in mainland China (**+11.4%**), overseas MINISO brand (**+29.4%**), and the TOP TOY brand (**+73%**)[73](index=73&type=chunk)[76](index=76&type=chunk) - Gross margin increased from **43.7%** to **44.3%**, mainly due to increased revenue contribution from overseas markets and a shift in TOP TOY's product portfolio towards higher-margin products[75](index=75&type=chunk)[78](index=78&type=chunk) - Selling and distribution expenses increased by **43.3%** year-over-year, primarily due to investments in direct stores (especially in the US market), with the number of direct stores increasing from **393** to **637**[79](index=79&type=chunk)[82](index=82&type=chunk) [Key Financial Ratios & Cash Flow](index=25&type=section&id=Key%20Financial%20Ratios%20%26%20Cash%20Flow) During the reporting period, the company's net cash from operating activities and free cash flow both decreased, and the current ratio fell from **2.4** to **1.9**, mainly due to increased short-term loans, lease liabilities, and trade payables Cash Flow and Ratios for the six months ended June 30 (RMB'000) | Metric | 2024 (RMB'000) | 2025 (RMB'000) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,293,800 | 1,014,200 | | Capital Expenditure | 302,800 | 434,800 | | Free Cash Flow | 991,000 | 579,400 | | Current Ratio (Period-end) | 2.4 | 1.9 | - The decrease in current ratio was primarily due to increased short-term loans and borrowings, lease liabilities related to direct stores, and trade payables related to inventory[102](index=102&type=chunk)[105](index=105&type=chunk) [Liquidity and Funding](index=26&type=section&id=Liquidity%20and%20Funding) As of June 30, 2025, the company's liquid assets, including cash and cash equivalents, totaled **RMB 7.4661 billion**; in January 2025, the company issued **USD 550 million** in equity-linked securities and entered into a call option spread, raising net proceeds of **USD 457 million** for overseas store expansion, supply chain optimization, brand building, and share repurchases - As of June 30, 2025, cash, cash equivalents, restricted cash, time deposits, and other investments totaled **RMB 7,466.1 million**[106](index=106&type=chunk)[109](index=109&type=chunk) - In January 2025, the company issued **USD 550 million** in equity-linked securities and entered into a call option spread, raising net proceeds of **USD 457 million**[107](index=107&type=chunk)[110](index=110&type=chunk)[113](index=113&type=chunk)[116](index=116&type=chunk) - The raised funds will be used for overseas store network expansion, supply chain optimization, brand building and promotion, additional overseas working capital, and share repurchases[113](index=113&type=chunk)[116](index=116&type=chunk) [Material Acquisitions and Investments](index=28&type=section&id=Material%20Acquisitions%20and%20Investments) In Q1 2025, the company completed the acquisition of a **29.4%** equity stake in Yonghui Superstores Co., Ltd. for **RMB 6.2701 billion**, which was treated as a very substantial acquisition and accounted for using the equity method, resulting in an investment loss of **RMB 119.3 million** during the reporting period - In Q1 2025, the company completed the acquisition of approximately **29.4%** equity in Yonghui Superstores Co., Ltd[117](index=117&type=chunk)[118](index=118&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - The acquisition consideration was **RMB 6,270.1 million**[117](index=117&type=chunk)[122](index=122&type=chunk) - For the six months ended June 30, 2025, the investment in Yonghui recorded a loss of **RMB 119.3 million**[121](index=121&type=chunk)[124](index=124&type=chunk) - The company remains optimistic about the development of the offline retail industry in mainland China, believing the investment in Yonghui aligns with the Group's investment strategy[121](index=121&type=chunk)[124](index=124&type=chunk) [Risk Management and Policies](index=29&type=section&id=Risk%20Management%20and%20Policies) The company has established a cash management policy to primarily invest in low-risk wealth management products to enhance capital utilization, with a gearing ratio of **66.9%** as of June 30, 2025; its international business primarily generates revenue in USD, making it susceptible to RMB-USD exchange rate fluctuations, but currently, no derivative financial instruments are used to hedge exchange rate risks - The cash management policy stipulates investment in low-risk wealth management products, such as time deposits and principal-protected interest-bearing products, strictly prohibiting high-risk financial instruments[129](index=129&type=chunk)[133](index=133&type=chunk)[139](index=139&type=chunk) - As of June 30, 2025, the gearing ratio was **66.9%**[135](index=135&type=chunk)[137](index=137&type=chunk) - International business primarily generates revenue in USD, and fluctuations in the RMB-USD exchange rate affect operating results, with the company not hedging exchange rate risks[136](index=136&type=chunk)[138](index=138&type=chunk) [Contingencies and Commitments](index=31&type=section&id=Contingencies%20and%20Commitments) The company committed to paying no less than **RMB 965 million** in taxes to the Guangzhou local government between 2021-2025, having met its commitments for 2021-2024; as of June 30, 2025, capital commitments totaled **RMB 630.9 million**, primarily for headquarters building construction, and the company faces a securities class action lawsuit whose outcome or potential loss cannot be assessed by the board - The company committed to paying no less than **RMB 965.0 million** in taxes to the Guangzhou local government during 2021-2025, having met its commitments for 2021-2024, and expects to meet the 2025 commitment[140](index=140&type=chunk)[141](index=141&type=chunk)[143](index=143&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - As of June 30, 2025, capital commitments totaled **RMB 630.9 million**, primarily for headquarters building construction[146](index=146&type=chunk)[148](index=148&type=chunk) - The company faces a securities class action lawsuit, and the Board is unable to assess its outcome or reliably estimate potential losses[142](index=142&type=chunk)[144](index=144&type=chunk)[99](index=99&type=chunk)[440](index=440&type=chunk)[441](index=441&type=chunk) [Employees and Remuneration](index=32&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company had **7,204** full-time employees, an increase year-over-year, with total remuneration costs of **RMB 929.9 million**, providing compensation, bonuses, share awards, and share options based on individual performance - As of June 30, 2025, the company had **7,204** full-time employees, an increase from **5,245** a year ago[147](index=147&type=chunk)[149](index=149&type=chunk) - For the six months ended June 30, 2025, total remuneration costs were **RMB 929.9 million**[151](index=151&type=chunk)[153](index=153&type=chunk) Employee Count by Function as of June 30, 2025 | Function | Number of Employees | | :--- | :--- | | Product Development and Supply Chain Management | 1,183 | | General and Administrative | 565 | | Operations | 4,699 | | Sales and Marketing | 184 | | Technology | 216 | | Business Development | 204 | | Logistics | 153 | | **Total** | **7,204** | [Corporate Governance](index=33&type=section&id=Corporate%20Governance) [Governance Compliance](index=33&type=section&id=Governance%20Compliance) The company complies with all applicable provisions of the Corporate Governance Code, although the roles of Board Chairman and CEO are combined in Mr. Ye Guofu, an arrangement the company believes ensures consistent leadership and efficient strategic planning within the Group - The company complies with all applicable provisions of the Corporate Governance Code, but the roles of Board Chairman and Chief Executive Officer are combined in Mr. Ye Guofu[155](index=155&type=chunk)[160](index=160&type=chunk) - The Board believes that combining these roles helps ensure consistent leadership and efficient strategic planning within the Group[156](index=156&type=chunk)[160](index=160&type=chunk) - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[158](index=158&type=chunk)[162](index=162&type=chunk) [Board Committees](index=34&type=section&id=Board%20Committees) The Board has established an Audit Committee, a Remuneration Committee, and a Nomination and Corporate Governance Committee, each with clear written terms of reference to oversee specific areas of company affairs - The Board has an Audit Committee, a Remuneration Committee, and a Nomination and Corporate Governance Committee[163](index=163&type=chunk)[167](index=167&type=chunk) - The Audit Committee comprises three independent non-executive directors, chaired by Ms. Xu Lili, with primary responsibilities including overseeing financial statement integrity, internal controls, and reviewing connected transactions[164](index=164&type=chunk)[165](index=165&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) - The Remuneration Committee comprises three independent non-executive directors and Executive Director Mr. Ye, chaired by Mr. Zhu Yonghua, with primary responsibilities to review director and senior management remuneration[171](index=171&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[177](index=177&type=chunk) - The Nomination and Corporate Governance Committee comprises three independent non-executive directors and Executive Director Mr. Ye, chaired by Mr. Wang Yongping, with primary responsibilities to establish board member criteria, recommend candidates, and ensure company compliance with governance requirements[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) [Auditors](index=36&type=section&id=Auditors) KPMG retired upon the expiration of its term, and Ernst & Young and Ernst & Young Hua Ming LLP (a special general partnership) were appointed as the company's new auditors - KPMG retired, and Ernst & Young and Ernst & Young Hua Ming LLP (a special general partnership) were appointed as the company's auditors[179](index=179&type=chunk)[180](index=180&type=chunk) [Other Information](index=37&type=section&id=Other%20Information) [Shareholding & Incentive Plans](index=37&type=section&id=Shareholding%20%26%20Incentives) As of June 30, 2025, Mr. Ye Guofu and his spouse Ms. Yang Yunyun held **63.1%** of the company's equity through controlled corporations; the company has a 2020 Share Incentive Plan, with **3,873,361** share awards available for grant and **22,858,998** unexercised Restricted Share Units (RSUs) at the end of the reporting period Directors' and Chief Executive's Interests in Shares (As of June 30, 2025) | Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Company's Equity | | :--- | :--- | :--- | :--- | | Mr. Ye | Interest in controlled corporation/Founder of discretionary trust/Beneficiary of trust/Spouse's interest | 789,541,061 (L) | 63.1% | | Ms. Xu Lili | Beneficial interest | 20,000 (L) | 0.002% | | Mr. Zhu Yonghua | Beneficial interest | 32,700 (L) | 0.003% | Major Shareholders' Interests in Shares (As of June 30, 2025) | Name/Entity | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Company's Equity | | :--- | :--- | :--- | :--- | | YYY MC Limited | Beneficial interest | 257,849,197 (L) | 20.6% | | YGF MC Limited | Beneficial interest | 203,401,382 (L) | 16.3% | | Mini Investment Limited | Beneficial interest | 328,290,482 (L) | 26.2% | | Mr. Ye | Interest in controlled corporation/Founder of discretionary trust/Beneficiary of trust/Spouse's interest | 789,541,061 (L) | 63.1% | | Ms. Yang | Interest in controlled corporation/Founder of discretionary trust/Beneficiary of trust/Spouse's interest | 789,541,061 (L) | 63.1% | | The Bank of New York Mellon Corporation | Interest in controlled corporation | 116,173,426 (L) | 9.3% | | HSBC Holdings plc | Interest in controlled corporation/Custodian | 112,509,223 (L) | 9.0% | | UBS Group AG | Interest in controlled corporation | 104,075,883 (L) | 8.3% | | Citigroup Inc. | Interest in controlled corporation/Approved lending agent | 64,946,480 (L) | 5.2% | - As of June 30, 2025, under the 2020 Share Incentive Plan, **3,873,361** share awards were available for grant, and **22,858,998** Restricted Share Units (RSUs) were unexercised[202](index=202&type=chunk)[206](index=206&type=chunk)[392](index=392&type=chunk)[393](index=393&type=chunk) [Share Repurchase & Dividends](index=44&type=section&id=Share%20Repurchase%20%26%20Dividends) During the reporting period, the company repurchased a total of **8,167,600** shares and **824,961** American Depositary Shares (ADSs) on the HKEX and NYSE, for a total consideration of **HKD 262.7 million** and **USD 14.1 million**, respectively; the company has paid its 2024 final cash dividend and approved a 2025 interim cash dividend totaling approximately **USD 89.3 million**, representing **50%** of adjusted net profit Share Repurchase Details for the six months ended June 30, 2025 | Exchange | Number of Shares Repurchased | Total Consideration (HKD/USD) | | :--- | :--- | :--- | | HKEX | 8,167,600 | 262,677,000 (HKD) | | NYSE | 824,961 (ADSs) | 14,146,000 (USD) | - The 2024 final cash dividend of **USD 0.3268** per ADS or **USD 0.0817** per share was paid, totaling approximately **USD 101.3 million**[224](index=224&type=chunk)[228](index=228&type=chunk) - The 2025 interim cash dividend of **USD 0.2896** per ADS or **USD 0.0724** per share was approved, totaling approximately **USD 89.3 million**, representing **50%** of adjusted net profit[225](index=225&type=chunk)[228](index=228&type=chunk) [Other Corporate Matters](index=46&type=section&id=Other%20Corporate%20Matters) There were no changes in director and senior management information during the reporting period, the net proceeds from the global offering were fully utilized by December 31, 2024, and the company was not involved in other significant litigation or arbitration - No changes in director and senior management information[223](index=223&type=chunk)[227](index=227&type=chunk) - Net proceeds of **HKD 482.1 million** from the global offering were fully utilized by December 31, 2024[229](index=229&type=chunk)[232](index=232&type=chunk) - The company was not involved in other significant litigation or arbitration[230](index=230&type=chunk)[233](index=233&type=chunk) [Independent Review Report](index=48&type=section&id=Independent%20Review%20Report) Ernst & Young reviewed the unaudited interim financial report for the six months ended June 30, 2025, concluding that it was prepared in all material respects in accordance with International Accounting Standard 34 - Ernst & Young reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[236](index=236&type=chunk)[238](index=238&type=chunk) - The review concluded that the interim financial report was prepared in all material respects in accordance with International Accounting Standard 34[239](index=239&type=chunk)[240](index=240&type=chunk) [Unaudited Consolidated Statement of Profit or Loss](index=50&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the unaudited consolidated statement of profit or loss for the six months ended June 30, 2025, detailing financial data such as revenue, cost of sales, gross profit, various expenses, operating profit, net finance income/costs, profit before tax, income tax expense, and profit for the period Unaudited Consolidated Statement of Profit or Loss (For the six months ended June 30, RMB'000) | Metric | 2024 | 2025 | | :--- | :--- | :--- | | Revenue | 7,758,743 | 9,393,112 | | Cost of Sales | (4,368,957) | (5,236,194) | | Gross Profit | 3,389,786 | 4,156,918 | | Operating Profit | 1,494,809 | 1,545,949 | | Profit Before Tax | 1,529,121 | 1,194,191 | | Profit for the Period | 1,177,379 | 905,990 | | Basic Earnings Per Share (RMB) | 0.94 | 0.74 | | Diluted Earnings Per Share (RMB) | 0.94 | 0.73 | [Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=51&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the unaudited consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, showing a profit for the period of **RMB 906 million** and total comprehensive income of **RMB 917.7 million**, primarily including exchange differences on translating financial statements of overseas operations Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, RMB'000) | Metric | 2024 | 2025 | | :--- | :--- | :--- | | Profit for the Period | 1,177,379 | 905,990 | | Exchange differences on translating financial statements of overseas operations | 6,845 | 11,675 | | Total Comprehensive Income for the Period | 1,184,224 | 917,665 | [Unaudited Consolidated Statement of Financial Position](index=52&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the unaudited consolidated statement of financial position as of June 30, 2025, showing total assets increased to **RMB 26.6478 billion**, total liabilities increased to **RMB 15.7489 billion**, and total equity increased to **RMB 10.8989 billion**, with a significant increase in equity-accounted investees within non-current assets Unaudited Consolidated Statement of Financial Position (As of June 30, RMB'000) | Metric | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 6,464,627 | 13,915,114 | | Current Assets | 11,655,501 | 12,732,674 | | **Total Assets** | **18,120,128** | **26,647,788** | | **Equity** | | | | Equity Attributable to Owners of the Company | 10,314,974 | 10,852,107 | | Non-controlling Interests | 40,548 | 46,812 | | **Total Equity** | **10,355,522** | **10,898,919** | | **Liabilities** | | | | Non-current Liabilities | 2,037,417 | 9,133,474 | | Current Liabilities | 5,727,189 | 6,615,395 | | **Total Liabilities** | **7,764,606** | **15,748,869** | - Equity-accounted investees significantly increased from **RMB 38.567 million** as of December 31, 2024, to **RMB 6,171.304 million** as of June 30, 2025[248](index=248&type=chunk) [Unaudited Consolidated Statement of Changes in Equity](index=54&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the unaudited consolidated statement of changes in equity for the six months ended June 30, 2025, showing total equity increased from **RMB 10.3555 billion** at the beginning of the period to **RMB 10.8989 billion** at the end, primarily influenced by profit for the period, share repurchases, equity-settled share-based payment transactions, and recognition of capped call options Unaudited Consolidated Statement of Changes in Equity (For the six months ended June 30, RMB'000) | Metric | Balance as of January 1, 2025 | Balance as of June 30, 2025 | | :--- | :--- | :--- | | Share Capital | 94 | 94 | | Capital Reserve | 4,683,577 | 3,956,803 | | Merger Reserve | 117,912 | 117,912 | | Treasury Shares | (84,049) | (428,539) | | Equity Call Options | – | 650,711 | | Share-based Payment Reserve | 1,045,090 | 1,085,676 | | Exchange Reserve | 42,034 | 53,405 | | China Statutory Reserve | 208,139 | 207,838 | | Retained Earnings | 4,302,177 | 5,208,207 | | **Total Equity Attributable to Owners of the Company** | **10,314,974** | **10,852,107** | | Non-controlling Interests | 40,548 | 46,812 | | **Total Equity** | **10,355,522** | **10,898,919** | [Unaudited Consolidated Statement of Cash Flows](index=56&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the unaudited consolidated statement of cash flows for the six months ended June 30, 2025, showing net cash from operating activities of **RMB 1.0142 billion**, net cash used in investing activities of **RMB 6.4100 billion**, net cash from financing activities of **RMB 6.1774 billion**, and cash and cash equivalents increasing to **RMB 7.1152 billion** at period-end Unaudited Consolidated Statement of Cash Flows (For the six months ended June 30, RMB'000) | Metric | 2024 | 2025 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,293,756 | 1,014,223 | | Net Cash Used in Investing Activities | (387,957) | (6,410,039) | | Net Cash from Financing Activities | (1,095,826) | 6,177,417 | | Net Increase in Cash and Cash Equivalents | (190,027) | 781,601 | | Cash and Cash Equivalents at End of Period | 6,226,732 | 7,115,183 | - Net cash used in investing activities significantly increased, primarily due to payments for other investments and investments in equity-accounted investees[255](index=255&type=chunk) - Net cash from financing activities turned positive, mainly due to proceeds from loans and borrowings and issuance of equity-linked securities[255](index=255&type=chunk) [Notes to the Unaudited Interim Financial Report](index=57&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [Basis of Preparation & Accounting Policies](index=57&type=section&id=Basis%20of%20Preparation%20%26%20Accounting%20Policies) This interim financial report is prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34, adopting accounting policies consistent with the 2024 annual consolidated financial statements, with the exception of the initial adoption of revised International Financial Reporting Standards - The report is prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34[257](index=257&type=chunk)[262](index=262&type=chunk) - Accounting policies are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of revised International Financial Reporting Standards[258](index=258&type=chunk)[264](index=264&type=chunk) [Segment Reporting](index=58&type=section&id=Segment%20Reporting) Effective January 1, 2025, the company segmented the MINISO brand into mainland China and overseas, presenting three reportable segments: MINISO brand - mainland China, MINISO brand - overseas, and TOP TOY brand, with each segment's performance measured by profit before tax and detailed disclosures of revenue, operating profit, assets, and liabilities - Effective January 1, 2025, the company segmented the MINISO brand into mainland China and overseas, forming three reportable segments: MINISO brand - mainland China, MINISO brand - overseas, and TOP TOY brand[265](index=265&type=chunk)[268](index=268&type=chunk) Segment Revenue for the six months ended June 30, 2025 (RMB'000) | Segment | External Revenue | Segment Revenue | | :--- | :--- | :--- | | MINISO Brand - Mainland China | 5,114,987 | 6,557,970 | | MINISO Brand - Overseas | 3,534,017 | 3,536,700 | | TOP TOY Brand | 742,058 | 765,044 | | Unallocated Amounts | 2,050 | 228,379 | | **Consolidated Revenue** | **9,393,112** | **11,088,093** | Segment Assets as of June 30, 2025 (RMB'000) | Segment | Segment Assets | | :--- | :--- | | MINISO Brand - Mainland China | 9,152,135 | | MINISO Brand - Overseas | 6,784,685 | | TOP TOY Brand | 891,207 | | Unallocated Assets | 9,564,711 | | **Total Consolidated Assets** | **26,647,788** | [Revenue Recognition](index=64&type=section&id=Revenue%20Recognition) The company's revenue primarily derives from the sale of lifestyle and trendy toy products, including direct store retail, sales to franchisees and agents, and online sales, with other revenue sources including licensing fees, royalties, and management consulting service fees, and revenue is mainly recognized at a point in time - Revenue primarily comes from the sale of lifestyle and trendy toy products, as well as licensing fees, royalties, and management consulting service fees[285](index=285&type=chunk)[287](index=287&type=chunk) Revenue Classification for the six months ended June 30, 2025 (RMB'000) | Major Product/Service Line | 2024 | 2025 | | :--- | :--- | :--- | | Direct Store Retail Sales | 1,205,709 | 2,190,668 | | Sales to Franchisees | 3,995,768 | 4,298,817 | | Sales to Offline Agents | 1,395,170 | 1,512,084 | | Online Sales | 402,688 | 573,208 | | Licensing Fees, Royalties, and Management Consulting Service Fees | 438,017 | 507,685 | | **Total Revenue** | **7,758,743** | **9,393,112** | - Revenue is primarily recognized at a point in time (**RMB 8,873.311 million** in 2025)[291](index=291&type=chunk) [Expense Analysis](index=67&type=section&id=Expense%20Analysis) During the reporting period, the company's total cost of sales, selling and distribution, and general and administrative expenses combined increased to **RMB 7.9209 billion**, primarily comprising inventory costs, salaries and employee benefits, depreciation and amortization, licensing fees, promotion and advertising expenses, and logistics expenses Expenses by Nature for the six months ended June 30 (RMB'000) | Expense Item | 2024 | 2025 | | :--- | :--- | :--- | | Cost of Inventories | 4,256,426 | 5,081,747 | | Salaries and Employee Benefits | 685,492 | 929,882 | | Rent and Related Expenses | 113,395 | 185,788 | | Depreciation and Amortization | 333,131 | 554,016 | | Licensing Fees | 183,158 | 240,795 | | Promotion and Advertising Expenses | 247,158 | 262,544 | | Logistics Expenses | 225,974 | 292,963 | | **Total Costs and Expenses** | **6,309,618** | **7,920,872** | - Salaries and employee benefits increased to **RMB 929.9 million**, with salaries, wages, and bonuses accounting for **RMB 778.2 million**[309](index=309&type=chunk)[310](index=310&type=chunk) - Depreciation and amortization increased to **RMB 554.0 million**, primarily from property, plant and equipment and right-of-use assets[311](index=311&type=chunk) [Financial Income & Costs](index=69&type=section&id=Financial%20Income%20%26%20Costs) During the reporting period, other net income increased to **RMB 98.2 million**, mainly due to increased net exchange gains and investment income, while net finance costs shifted from finance income last year to a net cost of **RMB 128.4 million**, primarily due to increased interest on equity-linked securities and lease liabilities Other Net Income for the six months ended June 30 (RMB'000) | Item | 2024 | 2025 | | :--- | :--- | :--- | | Net Exchange (Loss)/Gain | (12,392) | 36,570 | | Investment Income from Other Investments | 18,360 | 43,809 | | **Other Net Income** | **41,696** | **98,239** | Net Finance Income/(Costs) for the six months ended June 30 (RMB'000) | Item | 2024 | 2025 | | :--- | :--- | :--- | | Finance Income | 74,606 | 65,836 | | Finance Costs | (40,595) | (194,236) | | **Net Finance Income/(Costs)** | **34,011** | **(128,400)** | - Increased finance costs were primarily due to higher interest on loans and borrowings, interest on equity-linked securities (**RMB 89.885 million**), and interest on lease liabilities[315](index=315&type=chunk) [Income Taxes](index=70&type=section&id=Income%20Taxes) During the reporting period, income tax expense was **RMB 288.2 million**, a decrease from the prior year, with the difference between actual and nominal income tax expense primarily influenced by the tax impact of share-based payment expenses, preferential tax treatments, additional R&D cost deductions, and deductible temporary differences Income Tax Expense for the six months ended June 30 (RMB'000) | Item | 2024 | 2025 | | :--- | :--- | :--- | | Current Tax Provision | 364,138 | 324,216 | | Deferred Tax | (12,396) | (36,015) | | **Income Tax Expense** | **351,742** | **288,201** | - The difference between actual and nominal income tax expense primarily arose from the tax impact of share-based payment expenses, preferential tax treatments, additional R&D cost deductions, and deductible temporary differences[319](index=319&type=chunk) [Earnings Per Share](index=72&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were **RMB 0.74** and diluted earnings per share were **RMB 0.73**, both decreasing from the prior year Earnings Per Share for the six months ended June 30 (RMB yuan) | Metric | 2024 | 2025 | | :--- | :--- | :--- | | Basic Earnings Per Share | 0.94 | 0.74 | | Diluted Earnings Per Share | 0.94 | 0.73 | Weighted Average Number of Ordinary Shares for the six months ended June 30 | Metric | 2024 | 2025 | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares (Basic) | 1,242,154,721 | 1,230,765,469 | | Dilutive Effect of Share Incentive Plans | 5,349,402 | 5,237,699 | | Weighted Average Number of Ordinary Shares (Diluted) | 1,247,504,123 | 1,236,003,168 | [Assets](index=73&type=section&id=Assets) As of June 30, 2025, net property, plant and equipment increased to **RMB 1.7021 billion**, net right-of-use assets increased to **RMB 4.6351 billion**, inventory increased to **RMB 2.8363 billion**, trade and other receivables increased to **RMB 2.4303 billion**, and cash and cash equivalents increased to **RMB 7.1152 billion** Net Property, Plant and Equipment as of June 30, 2025 (RMB'000) | Item | Carrying Amount as of January 1, 2025 | Carrying Amount as of June 30, 2025 | | :--- | :--- | :--- | | Apartments | 213,754 | 209,716 | | Leasehold Improvements | 505,786 | 599,358 | | Office Equipment | 37,549 | 41,979 | | Store Operating Equipment | 34,467 | 34,716 | | Motor Vehicles | 2,804 | 3,369 | | Molds | 12,791 | 7,791 | | Construction in Progress | 629,788 | 805,133 | | **Total** | **1,436,939** | **1,702,062** | Net Right-of-Use Assets as of June 30, 2025 (RMB'000) | Item | Carrying Amount as of January 1, 2025 | Carrying Amount as of June 30, 2025 | | :--- | :--- | :--- | | Properties | 2,533,228 | 3,008,724 | | Warehouse Equipment | – | 10,164 | | Land Use Rights | 1,638,855 | 1,616,251 | | **Total** | **4,172,083** | **4,635,139** | Inventories as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Finished Goods | 2,742,092 | 2,828,637 | | Low-value Consumables | 8,297 | 7,711 | | **Total** | **2,750,389** | **2,836,348** | Trade and Other Receivables as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Non-current Portion | 341,288 | 212,750 | | Current Portion | 2,207,013 | 2,430,263 | | **Total** | **2,548,301** | **2,643,013** | Cash and Cash Equivalents as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Cash on Hand | 4,465 | 3,941 | | Bank Deposits | 6,323,656 | 7,111,242 | | **Total** | **6,328,121** | **7,115,183** | [Equity-Accounted Investees](index=80&type=section&id=Equity-Accounted%20Investees) As of June 30, 2025, the company's total equity-accounted investees amounted to **RMB 6.1713 billion**, primarily comprising share of net assets from associates and goodwill retained in associates' equity, with the investment in Yonghui Superstores Co., Ltd. representing a **29.4%** equity stake and a fair value of **RMB 13.0739 billion** Equity-Accounted Investees as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Share of Net Assets from Associates | 38,567 | 2,888,268 | | Share of Net Assets from a Joint Venture | – | 4,000 | | Goodwill Retained in Associates' Equity | – | 3,279,036 | | **Total** | **38,567** | **6,171,304** | - The investment in Yonghui Superstores Co., Ltd. represents a **29.4%** equity stake, with a fair value of **RMB 13,073.863 million**[350](index=350&type=chunk)[352](index=352&type=chunk) - Associate investments with a carrying amount of **RMB 4,308.190 million** are pledged as collateral for certain bank borrowings[351](index=351&type=chunk)[352](index=352&type=chunk) [Liabilities](index=81&type=section&id=Liabilities) As of June 30, 2025, total loans and borrowings increased to **RMB 7.2966 billion**, primarily including bank loans and the liability component of equity-linked securities; total trade and other payables were **RMB 3.5615 billion**, and total lease liabilities were **RMB 3.0607 billion** Loans and Borrowings as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Non-current Portion | 4,310 | 5,589,413 | | Current Portion | 566,955 | 1,707,170 | | **Total** | **571,265** | **7,296,583** | - Bank loans (**RMB 3,457.0 million**) are collateralized by equity-accounted investees[354](index=354&type=chunk)[357](index=357&type=chunk) Trade and Other Payables as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Non-current Portion | 59,842 | 73,586 | | Current Portion | 3,943,988 | 3,561,523 | | **Total** | **4,003,830** | **3,635,109** | Present Value of Lease Liabilities as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Within One Year | 635,357 | 883,423 | | After One Year but Within Two Years | 623,330 | 652,841 | | After Two Years but Within Five Years | 806,325 | 1,052,064 | | Over Five Years | 473,482 | 472,384 | | **Total** | **2,538,494** | **3,060,712** | [Capital and Reserves](index=84&type=section&id=Capital%20and%20Reserves) As of June 30, 2025, the company had **1,251,337,357** total issued shares; during the reporting period, the company repurchased a total of **8,167,600** shares and **3,299,844** American Depositary Shares (ADSs) under its 2024 share repurchase program, and has declared and paid the 2024 final dividend and approved the 2025 interim dividend Analysis of Issued Shares as of June 30, 2025 | Item | Number of Shares Outstanding | Number of Treasury Shares | Total Number of Issued Shares | | :--- | :--- | :--- | :--- | | January 1, 2025 | 1,233,993,805 | 15,878,028 | 1,249,871,833 | | Impact of Share Issuance and Repurchase | (9,560,000) | 11,025,388 | 1,465,524 | | June 30, 2025 | 1,224,433,941 | 26,903,416 | 1,251,337,357 | - During the reporting period, the company repurchased a total of **8,167,600** shares and **3,299,844** American Depositary Shares under its 2024 share repurchase program[369](index=369&type=chunk)[370](index=370&type=chunk) - The 2024 final cash dividend of **USD 101.3 million** was declared and paid, and the 2025 interim cash dividend of **USD 89.3 million** was approved[371](index=371&type=chunk)[372](index=372&type=chunk)[373](index=373&type=chunk) [Equity Settled Share-Based Payments](index=86&type=section&id=Equity%20Settled%20Share-Based%20Payments) The company operates a 2020 Share Incentive Plan, granting share options and Restricted Share Units (RSUs) to employees, directors, and consultants; as of June 30, 2025, **3,646,456** share options and **22,858,998** RSUs remained unexercised, with total share-based payment expenses of **RMB 40.966 million** recognized during the reporting period Overview of Share Option Activity as of June 30, 2025 | Item | Number of Share Options | Weighted Average Exercise Price (USD per share) | | :--- | :--- | :--- | | Unexercised as of January 1, 2025 | 3,907,464 | 0.036 | | Exercised | (196,008) | 0.036 | | Forfeited | (65,000) | 0.036 | | **Unexercised as of June 30, 2025** | **3,646,456** | **0.036** | Overview of Restricted Share Units (RSUs) Activity as of June 30, 2025 | Item | Number of Restricted Share Units | Weighted Average Purchase Price (USD per RSU) | | :--- | :--- | :--- | | Unexercised as of January 1, 2025 | 24,718,284 | 0.008 | | Granted | 1,076,158 | 0.010 | | Vested | (1,711,572) | 0.005 | | Forfeited | (1,223,872) | 0.002 | | **Unexercised as of June 30, 2025** | **22,858,998** | **0.008** | - For the six months ended June 30, 2025, share-based payment expenses recognized for share options were **RMB 0.38 million**, and for RSUs were **RMB 40.966 million**[378](index=378&type=chunk)[392](index=392&type=chunk) [Equity Linked Securities & Derivatives](index=90&type=section&id=Equity%20Linked%20Securities%20%26%20Derivatives) In January 2025, the company issued **USD 550 million** in equity-linked securities and entered into a capped call option spread; the equity-linked securities were bifurcated into liability and derivative components, the floor call option was recognized as a financial derivative asset, and the capped call option was recognized as an equity instrument - In January 2025, **USD 550 million** in equity-linked securities were issued, bearing an annual interest rate of **0.5%** and maturing in approximately seven years[394](index=394&type=chunk)[396](index=396&type=chunk)[397](index=397&type=chunk)[398](index=398&type=chunk) Changes in Equity-Linked Securities Liability and Derivative Components as of June 30, 2025 (RMB'000) | Item | Liability Component | Derivative Component | | :--- | :--- | :--- | | January 1, 2025 | – | – | | Issuance of Equity-Linked Securities | 2,352,383 | 1,600,962 | | Issuance Costs | (65,740) | (44,741) | | Interest Expense | 89,885 | – | | Fair Value Change for the Period | – | (319,917) | | Exchange Rate Adjustment | (9,593) | (5,377) | | **June 30, 2025** | **2,366,935** | **1,230,927** | - The floor call option amounted to **USD 168 million** and was recognized as a financial asset measured at fair value through profit or loss[405](index=405&type=chunk)[406](index=406&type=chunk)[408](index=408&type=chunk)[409](index=409&type=chunk) - The capped call option amounted to **USD 90.5299 million** and was initially recognized as an equity instrument, subsequently measured at historical cost[410](index=410&type=chunk)[411](index=411&type=chunk)[414](index=414&type=chunk) [Fair Value Measurement](index=93&type=section&id=Fair%20Value%20Measurement) The fair value measurement of the company's financial instruments is categorized into three levels; as of June 30, 2025, Level 3 assets included investments in unlisted limited partnerships and financial derivative assets (floor call options), while Level 3 liabilities included financial derivative liabilities (embedded derivatives in equity-linked securities) - Fair value measurement is categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (significant unobservable inputs)[416](index=416&type=chunk)[420](index=420&type=chunk) Financial Assets and Liabilities by Fair Value Hierarchy as of June 30, 2025 (RMB'000) | Item | Fair Value | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Investments in Unlisted Limited Partnerships | 122,570 | – | – | 122,570 | | Financial Derivative Assets | 799,751 | – | – | 799,751 | | **Liabilities** | | | | | | Financial Derivative Liabilities | 1,230,927 | – | – | 1,230,927 | - The fair values of Level 3 assets and liabilities are determined using a binomial option pricing model or sum-of-the-costs method, with the assistance of independent valuers[426](index=426&type=chunk)[427](index=427&type=chunk)[428](index=428&type=chunk) [Commitments and Contingencies](index=97&type=section&id=Commitments%20and%20Contingencies) As of June 30, 2025, the company's capital commitments totaled **RMB 630.9 million**, primarily for construction projects; the company committed to paying no less than **RMB 965 million** in taxes to the Guangzhou local government between 2021-2025, having met its commitments for the first four years, and faces a securities class action lawsuit whose outcome and potential losses cannot be reliably estimated Capital Commitments as of June 30, 2025 (RMB'000) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Contracted for Construction Projects | 557,180 | 519,380 | | Authorized but Not Contracted for Construction Projects | 76,366 | 111,489 | | **Total** | **633,546** | **630,869** | - The company committed to paying no less than **RMB 965.0 million** in taxes to the Guangzhou local government during 2021-2025, having met its commitments for 2021-2024, and expects to meet the 2025 commitment[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk) - The company faces a securities class action lawsuit, and the Board is unable to assess its outcome or reliably estimate potential losses[440](index=440&type=chunk)[441](index=441&type=chunk) [Related Party Transactions](index=100&type=section&id=Related%20Party%20Transactions) During the reporting period, the company engaged in various related party transactions, including product sales, IT support and consulting services, licensing fee income, product purchases, catering service purchases, short-term lease rentals and related expenses, lease liability payments, rental deposits, and loans to related parties Related Party Transactions for the six months ended June 30 (RMB'000) | Transaction Type | 2024 | 2025 | | :--- | :--- | :--- | | Income from Related Parties (Product Sales, Services, Licensing Fees) | 55,015 | 93,939 | | Purchases of Goods or Services from Related Parties (Products, Catering, Leases) | 8,733 | 6,426 | | Payments to Related Parties (Lease Liabilities, Rental Deposits, Loans) | 25,141 | 47,951 | - Key management personnel compensation includes short-term employee benefits and equity-settled share-based payment expenses[444](index=444&type=chunk)[446](index=446&type=chunk) [Definitions](index=102&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the report, including company brands, financial metrics, operating models, geographical regions, legal entities, and relevant regulations, to ensure clear understanding of the report's content - Definitions are provided for key terms such as '2020 Share Incentive Plan', 'GMV', 'Equity-Linked Securities', 'MINISO Partner', and 'Yonghui'[453](index=453&type=chunk)[455](index=455&type=chunk)[456](index=456&type=chunk)[457](index=457&type=chunk)[458](index=458&type=chunk)[459](index=459&type=chunk)[460](index=460&type=chunk)

Summary of Conference Call Records Industry Overview - The service consumption in China is significantly lower than in developed countries, currently at approximately 30% compared to 70% in the US, indicating substantial growth potential [1][2] - The new policies aim to enhance service consumption, particularly in the cultural and tourism sectors, with local governments actively improving service quality [1][2] Key Policy Insights - Five major increments in the new policy include: 1. Optimizing student holiday arrangements to explore spring and autumn breaks, benefiting tourism [1][4] 2. Encouraging IP collaborations to promote cross-industry partnerships [1][4] 3. Linking sports events with cultural tourism to boost consumer engagement [1][4] 4. Promoting AI applications in various sectors such as e-commerce and education [1][4] 5. Regulating non-academic training institutions to encourage market-oriented vocational training [1][4] Impact on Specific Sectors - **Tourism and Hospitality**: - The expansion of the visa-free entry policy is expected to significantly boost inbound tourism, particularly benefiting major cities like Beijing and Shanghai, as well as OTA platforms and hotels [3][9][12] - **Cultural and Sports Events**: - The policy encourages the introduction of international sports events and supports local sports activities, which will benefit event organizers and related industries, enhancing investor expectations [1][6] - **Education and Training**: - The new regulations for non-academic training institutions will favor companies like New Oriental and others in the vocational training sector [7][8] Financial and Economic Support - The government plans to utilize central budget investments and local special bonds to support cultural tourism and elderly care facilities, which will attract social capital investment [13] - Financial tools will be employed to increase credit availability, directly benefiting companies involved in consumer lending, such as Chongqing Department Store [13] Additional Considerations - The adjustment of student holiday schedules is anticipated to increase tourism frequency while alleviating congestion during peak seasons [11][12] - The integration of AI in service sectors is expected to enhance operational efficiency and reduce costs, indicating a significant trend in future consumption development [10]

Core Insights - MINISO LAND, the first global IP collaboration store of MINISO in Northeast China, opened in Harbin on September 10, attracting a large number of young consumers eager to experience this new retail space [1][3][9] - The store spans nearly 1,300 square meters and features various IP-themed areas, showcasing products from popular franchises like Disney and Sanrio, covering categories such as household goods, stationery, beauty, and home decor [1][4] Company Overview - Since its establishment in 2013, MINISO has rapidly expanded its presence as a global retail brand, with a total of 7,905 stores worldwide as of June 30, 2025, marking a net increase of 842 stores year-on-year [3] - The brand's operating profit for the first half of 2025 was 1.546 billion yuan, reflecting a 3.4% increase from the previous year [3] Strategic Development - MINISO LAND represents a strategic store format that focuses on immersive IP consumer experiences, differing from traditional MINISO stores by offering a larger space, thematic design, and a wider product range [4][7] - The collaboration with the Harbin shopping center aims to create a trendy and engaging shopping environment that resonates with the target demographic of young consumers [5][9] Market Trends - The opening of MINISO LAND in Harbin highlights several market trends, including a significant shift towards younger consumers, an increase in emotional and social consumption needs, and the rise of IP-driven economic growth [9][11] - The establishment of this store is expected to enhance Harbin's commercial ecosystem, attract more quality commercial resources, and meet the evolving consumption demands of the younger population [11]

Investment Rating - The report maintains an investment rating of "Synchronize with the market" for the textile and apparel industry [2][27]. Core Insights - In August 2025, domestic retail sales (社零) grew by 3.4% year-on-year, slightly below market expectations, with a total retail sales amounting to 3.97 trillion yuan [5][6]. - The retail sales growth for the textile and apparel sector in the first eight months of 2025 was 2.9%, with a notable increase in sports and entertainment products, which saw a growth of 20.6% [8][10]. - The online retail channel continues to outperform the overall retail market, with a year-on-year growth of 6.4% in physical goods online sales [6][10]. Summary by Sections Retail Performance - In August 2025, the year-on-year growth rates for dining and goods retail were 2.1% and 3.6%, respectively [5]. - The consumer confidence index in July 2025 was 89.0, reflecting a 1.1 point increase [5]. Channel Analysis - Online channels showed a year-on-year growth of 6.4% in physical goods, while offline channels like convenience stores and supermarkets demonstrated stable performance [6]. - For the first eight months of 2025, retail sales in convenience stores, supermarkets, department stores, specialty stores, and brand stores grew by 6.6%, 4.9%, 1.2%, 5.2%, and 1.7%, respectively [6]. Sector-Specific Insights - The jewelry sector saw a significant year-on-year growth of 16.8% in August 2025, with gold prices reaching an average of 775.92 yuan per gram, up 36.7% year-on-year [7][11]. - The textile and apparel sector's year-on-year growth was 3.1% in August 2025, with a marginal improvement compared to previous months [7][10]. Investment Recommendations - The report recommends focusing on brands like 361 Degrees, with a noted increase in revenue growth among major sports brands [8][10]. - For the textile manufacturing sector, it suggests tracking the recovery of Nike, which could positively impact overall sector valuations [10].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - In Q2 2025, the company achieved revenue of 4.966 billion yuan, representing a year-on-year growth of 23%. However, the net profit attributable to the parent company was 490 million yuan, a decrease of 17% year-on-year. The adjusted net profit was 691 million yuan, reflecting an 11% increase year-on-year [2][4]. Revenue Performance - The company reported that both domestic and U.S. same-store sales have turned positive. As of Q2 2025, the company had 4,305 domestic stores, 3,307 overseas stores, and 293 TOPTOY stores, with a net increase of 30, 94, and 13 stores respectively in the quarter. Domestic same-store sales grew by 14% year-on-year, while overseas and TOPTOY saw increases of 29% and 87% respectively [7]. Profitability Analysis - The decline in net profit was primarily due to losses from Yonghui Supermarket, which amounted to 120 million yuan. Despite this, the adjusted net profit showed a double-digit growth of 11% year-on-year, with a gross margin increase of 0.4 percentage points. The sales and management expense ratios changed by -2.9 and -0.4 percentage points respectively, indicating improved operational efficiency [7]. Strategic Developments - The company has optimized its operations significantly in both domestic and overseas markets. The domestic strategy focuses on transitioning from small to large stores and refining inventory management, which has led to improved same-store sales. The overseas business, particularly in the U.S. and Europe, is expected to continue growing due to enhanced direct operations [7]. Future Outlook - The company is expected to maintain a solid growth trajectory, with projected adjusted net profits of 3.12 billion, 3.73 billion, and 4.28 billion yuan for 2025, 2026, and 2027 respectively. The long-term investment highlights include a stable domestic business foundation, expansion of direct overseas operations, and the development of proprietary IP [7].

Core Insights - The Guangdong-Hong Kong-Macao Greater Bay Area has launched its first China-Europe freight train to Turkey, reflecting the region's expanding international trade capabilities [1] - Guangdong's foreign trade has shown steady growth despite external pressures, with private enterprises leading the way [1][3] - Emerging markets are becoming key targets for Guangdong companies, with significant investments and exports directed towards countries involved in the Belt and Road Initiative [2][3] Group 1: Trade and Export Data - In the first eight months of this year, Guangzhou International Port operated 233 international freight trains, shipping 19,800 TEUs valued at 5.209 billion RMB, accounting for 40% of Guangdong's total [1] - Guangdong's private enterprises reported an import and export value of 3.99 trillion RMB, a growth of 4.8%, representing 64.2% of the province's total [1] - Guangdong's trade with Belt and Road countries reached 1.79 trillion RMB, growing by 3.8%, and accounted for 39.3% of the province's total trade [3] Group 2: Market Expansion and New Opportunities - Guangzhou Qingtian Intelligent Equipment Technology Co., focusing on smart factory equipment, has seen exports exceed 450 million RMB this year, with over 160 million RMB directed to BRICS countries [2] - Guangdong companies are increasingly investing in emerging industries, particularly in the Middle East, where there is a push for energy diversification and collaboration in the electric vehicle sector [3] Group 3: Innovative Business Models - Guangdong enterprises are shifting from traditional product exports to collaborative industrial chain strategies, enhancing their global competitiveness [5] - The success of Miniso, with overseas revenue reaching 6.68 billion RMB and a 42% growth, exemplifies the effective use of supply chain advantages to support international expansion [6] - Digital trade is also on the rise, with companies like Tencent Cloud and Huawei Cloud providing essential services to support Chinese businesses going global [7] Group 4: Case Studies and Collaborations - Numerous collaborations highlight Guangdong's international outreach, such as EHang's electric aircraft factory in the Middle East and TCL's solar silicon factory in Saudi Arabia [4] - The establishment of a self-driving vehicle license in Abu Dhabi by WeRide showcases Guangdong's role in advancing smart transportation in the region [4] Group 5: Digital and Cultural Exports - The success of games like "Black Myth" and "Mushroom Warrior" illustrates Guangdong's growing influence in the global digital culture market [7] - The evolution of Guangdong's export strategies reflects a transition towards higher-value participation in global markets, leveraging innovation and supply chain strengths [7]

Group 1: Industry Overview - The retail and toy industry in China is experiencing a significant strategic differentiation, marking a critical shift from high-frequency data-driven approaches to a focus on fundamentals [1] - Goldman Sachs has adjusted target prices for various companies based on their growth prospects, with Pop Mart's target price set at HKD 350, Miniso raised to USD 29/HKD 56, and Blokus lowered to HKD 93 [1] Group 2: Pop Mart - Pop Mart's stock price volatility in August reflects market concerns over slowing high-frequency data, particularly in the secondary market [2] - The initial launch of the Mini Labubu series saw a significant production volume of approximately 1 million units, supporting revenue growth despite limited price premiums [3] - The secondary market price premiums for the Macaron/Have a Seat series ranged from 40%-60% to single digits, while the Big into Energy series generally saw single-digit premiums [3][7] Group 3: Blokus - Blokus accelerated its new product launches in August, introducing over 50 SKUs, more than double the number from July [8] - The new products primarily focus on existing IPs, with notable sales growth in adult product lines and specific new releases like the Naruto product achieving approximately 1,500 units sold in August [8] Group 4: Miniso - Miniso's Q2 performance exceeded expectations, leading to a valuation recovery to a high double-digit P/E ratio for 2025, with a focus on its proprietary IP initiatives [9] - The Yoyo product launch is projected to generate sales of RMB 40 million this year, and the Kumaru blind box product has received positive market feedback [9] Group 5: Overseas Market Insights - In the overseas market, U.S. labor data showed weakness, but companies reported resilient consumer demand, indicating a positive trend for IP-related firms [12] - Miniso's U.S. credit card sales grew by 97%, slightly down from 98% in Q2, while Top Toy's first store in Tokyo achieved sales of JPY 11 million (approximately RMB 500,000) on its opening day [12]

Core Viewpoint - Goldman Sachs reports that after Pop Mart disclosed its first-half performance, strong outlook led to a rise in stock price, followed by volatility, reflecting sentiment fluctuations regarding slowing high-frequency data, particularly in the secondary market prices, indicating that this correction is more related to the company's increased monetization efforts [1] Group 1: Pop Mart - The release volume of the first batch of mini Labubu was significantly higher than previous series, supporting profit growth [1] - Goldman Sachs believes that strong earnings will continue to provide some support for valuation [1] - Goldman Sachs sets a target price of HKD 350 for Pop Mart and maintains a "Neutral" rating [1] Group 2: Miniso - Following the second-quarter performance exceeding expectations, Miniso's valuation has rebounded to a forecasted price-to-earnings ratio in the high teens (approximately 16x to 19x), boosting market confidence [1] - The new self-developed IP launched by Miniso is a focal point for management and investors [1] - Goldman Sachs raises Miniso's 12-month target price from USD 25.3 to USD 29 for US stocks, and from HKD 49 to HKD 56 for Hong Kong stocks, maintaining a "Buy" rating [1]