Financial Data and Key Metrics Changes - In Q1 2025, Miniso Group's total revenue reached RMB 4.43 billion, representing a 90% year-over-year growth, exceeding the upper limit of the guidance of 50% to 80% [6][27] - Miniso's revenue from Mainland China was RMB 2.49 billion, growing by 9%, while overseas revenue was RMB 1.59 billion, growing by 30% [6][27] - The gross margin increased by nearly one percentage point to 44.2% compared to the same period last year [33] - Adjusted net profit for Q1 was RMB 590 million, with an adjusted net profit margin of 30.3% [41] Business Line Data and Key Metrics Changes - The Miniso brand generated RMB 3.84 billion in revenue, growing by 16.5% [27] - The Top Toy brand achieved revenue of RMB 1.01 billion, up by 59% [28] - Same store sales in Mainland China showed a mid-single-digit decline, significantly improved from previous quarters [30][49] Market Data and Key Metrics Changes - Overseas revenue contribution increased by three percentage points year-over-year, now accounting for 36% of total revenue [29] - In Q1, 95 new overseas locations were added, expanding the international network [32] - The U.S. market is a key focus, with strategies to optimize store operations and improve inventory efficiency [17][20] Company Strategy and Development Direction - The company is focusing on enhancing same store performance as a core strategy, aiming for a 10% growth in domestic same store sales for the year [8] - Miniso is transitioning from rapid store openings to a strategy focused on larger, better-performing stores [13][15] - The company plans to deepen its IT strategy and enhance product development precision to maintain a competitive edge [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive same store growth despite current challenges in the Chinese market [49] - The company is committed to long-term growth, focusing on refined operations and strict expense management [45] - Management highlighted the importance of innovation and high-quality products to meet evolving consumer needs [12][24] Other Important Information - The company paid out RMB 740 million in dividends and completed nearly RMB 260 million in share repurchases since the beginning of the year [24][44] - Miniso is exploring new business models and enhancing partnerships with agents to improve market dynamics [20][25] Q&A Session Summary Question: Regarding same store improvement in China - Management noted a significant improvement in same store performance, with a decline narrowing to mid-single digits, and expressed confidence in achieving positive growth [49][50] Question: U.S. market strategies amid tariff fluctuations - Management discussed preparations for tariffs, including building inventory in the U.S. and optimizing the supply chain to reduce dependency on Mainland China [56][58] Question: Impact of YH on profit and loss - Management confirmed that YH will be consolidated into overall performance starting Q2, with a focus on reducing financial losses and improving efficiency [60][61] Question: Same store performance trends in overseas markets - Management indicated that overseas same store performance is improving, particularly in the U.S. and Mexico, and emphasized the importance of channel optimization and merchandise improvement [63][65] Question: IP partnership strategies - Management highlighted the importance of exclusive licensing and in-house IP development to enhance market presence and consumer engagement [76][79]

Financial Data and Key Metrics Changes - In Q1 2025, Miniso Group's total revenue reached RMB 4.43 billion, representing a 90% year-over-year growth, exceeding the upper limit of the 50% to 80% growth guidance [6][27] - Miniso's revenue from Mainland China was RMB 2.49 billion, growing by 9%, while overseas revenue was RMB 1.59 billion, growing by 30% [6][27] - The gross margin increased by nearly one percentage point to 44.2% compared to the same period last year [33] - Adjusted net profit for Q1 was RMB 590 million, with an adjusted net profit margin of 30.3% [41] Business Line Data and Key Metrics Changes - The Miniso brand generated RMB 2.84 billion in revenue, growing by 16.5% [27] - The Top Toy brand achieved revenue of RMB 1.1 billion, up by 59% [28] - Directly operated stores contributed 22% of revenue, with revenue growing 86% year-over-year [36] Market Data and Key Metrics Changes - In Q1, overseas revenue contribution rose to 36%, up from 33% in the same period last year [29] - The company opened 95 new overseas locations, expanding its international network [32] - Same store sales in the U.S. faced pressure but showed improvement in April and May [66] Company Strategy and Development Direction - The company is focusing on high-quality channel development and large store expansion, with plans to open larger, better-performing stores [13][15] - Miniso aims to enhance its product development precision and strengthen its IT strategy to support high-quality growth [10][12] - The company is committed to deepening existing partnerships while exploring new ones, particularly in the IP space [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive same store growth for the full year despite challenges in the micro consumption environment in China [50] - The company anticipates healthy operating profit growth in 2025, focusing on expense control and improving the profitability of directly operated stores [45] - Management highlighted the importance of adapting to tariff fluctuations and optimizing the supply chain to enhance competitiveness in the U.S. market [58][59] Other Important Information - The company paid out RMB 740 million in dividends and completed nearly RMB 260 million in share repurchases since the beginning of the year [24] - Miniso's journey is built on exceptional merchandise, with a commitment to innovation and high-quality products to meet evolving consumer needs [12] Q&A Session Summary Question: Can you elaborate on the recent same store improvement in China? - Management noted a significant improvement in same store performance, with a decline narrowing to mid-single digits compared to previous quarters, driven by operational strategies and product offerings [49][50] Question: What is the payback period for franchisees? - Franchisees have seen improvements in ROI alongside same store performance, with a positive outlook for new store formats [52][53] Question: What strategies are in place regarding tariffs and supply chain adjustments in the U.S.? - The company has built up inventory in the U.S. to prepare for sales peaks and is adjusting its supply chain to reduce dependence on Mainland China [56][58] Question: How will YH impact Miniso's profit and loss starting Q2? - YH is expected to reduce financial losses through efficiency improvements, with a dedicated team managing the transition [60][61] Question: What is the outlook for same store performance in the U.S.? - Management is optimistic about improvements in same store performance in the U.S., leveraging successful practices from the Chinese market [66][69] Question: How does sourcing from third parties affect GP margins? - Management reassured that sourcing third-party products will not burden GP margins, as they focus on specific categories that enhance customer experience [83][84] Question: What is the strategy for net store openings in China? - The company plans to dynamically adjust store openings, focusing on quality over quantity, with expectations for double-digit growth from same store performance [92][94]

Core Viewpoint - Miniso's stock dropped 8.6% in pre-market trading despite reporting a year-on-year revenue growth of 18.9% in Q1, reaching 4.427 billion yuan, and an adjusted EBITDA increase of 7.5% to 1.0373 billion yuan [1] Financial Performance - Q1 revenue increased by 18.9% year-on-year to 4.427 billion yuan [1] - Adjusted EBITDA rose by 7.5% year-on-year to 1.0373 billion yuan [1]

Core Insights - The company reported a revenue increase of 18.9% year-on-year to RMB 4.427 billion (USD 610.1 million) for the three months ending March 31, 2025 [1] - Same-store sales decline in mainland China significantly narrowed to a mid-single-digit percentage [1] - Gross margin reached 44.2%, an increase of 0.8 percentage points year-on-year [1] - Adjusted EBITDA grew by 7.5% year-on-year to RMB 1.037 billion (USD 142.9 million) [1] - Year-to-date shareholder returns amounted to approximately RMB 0.987 billion [1]

Revenue Growth - Revenue increased by 18.9% year-on-year to RMB 4,427.0 million (USD 610.1 million) for the quarter ended March 31, 2025[9]. - Revenue for the quarter reached RMB 4,427.0 million (USD 610.1 million), marking an 18.9% year-over-year increase, primarily driven by a 16.5% increase in average store count[16]. - Revenue from the Miniso brand reached RMB 3,506,657 thousand in 2024, representing a year-on-year growth of 16.5%[49]. Profitability - Gross profit increased by 21.1% year-on-year to RMB 1,958.0 million (USD 269.8 million), with a gross margin of 44.2%, up from 43.4% in the same period last year[9]. - Adjusted EBITDA rose by 7.5% year-on-year to RMB 1,037.3 million (USD 142.9 million), with an adjusted EBITDA margin of 23.4%[11]. - Adjusted net profit was RMB 587.2 million (USD 80.9 million), compared to RMB 616.9 million in the same period last year, with an adjusted net profit margin of 13.3%[9]. - Operating profit was RMB 709.8 million (USD 97.8 million), slightly down from RMB 743.3 million in the previous year[20]. - Adjusted net profit margin decreased to 13.3% from 16.6% year-over-year[22]. Store Expansion - Total number of stores reached 7,768 as of March 31, 2025, with a net addition of 978 stores year-on-year[11]. - The number of MINISO stores in mainland China was 4,275, with a net addition of 241 stores year-on-year[11]. - The number of overseas MINISO stores reached 3,213, with a net addition of 617 stores year-on-year[11]. - TOP TOY store count reached 280, with a net addition of 120 stores year-on-year, and began expanding into overseas markets starting from the December 2024 quarter[11]. - The total number of stores increased to 6,790 as of March 31, 2024, from 5,812 a year earlier, representing a growth of 16.5%[13]. Cash Position - Cash position as of March 31, 2025, was RMB 7,255.3 million (USD 999.8 million), up from RMB 6,698.1 million as of December 31, 2024[11]. - Cash and cash equivalents stood at RMB 7,255.3 million (USD 999.8 million) as of March 31, 2025, compared to RMB 6,698.1 million at the end of 2024[24]. - Cash and cash equivalents are expected to rise from RMB 6,328,121 in 2024 to RMB 6,839,406 in 2025, showing a growth of about 8%[37]. Future Projections - Revenue for 2024 is projected to be RMB 3,723,531, increasing to RMB 4,427,044 in 2025, representing a growth of approximately 19%[42]. - Gross profit for 2024 is RMB 1,616,458, with an increase to RMB 1,958,037 in 2025, indicating a gross margin improvement[42]. - Operating profit for 2024 is RMB 743,285, expected to decrease to RMB 709,787 in 2025, reflecting a decline of about 4.5%[42]. - The company anticipates a decrease in net profit from RMB 585,954 in 2024 to RMB 416,459 in 2025, a decline of approximately 29%[42]. - Basic earnings per share are expected to decrease from 0.47 in 2024 to 0.34 in 2025, a decline of approximately 28%[43]. Inventory and Liabilities - The company reported a significant increase in inventory from RMB 2,750,389 in 2024 to RMB 2,833,354 in 2025, reflecting a growth of about 3%[37]. - The total liabilities are projected to increase from RMB 7,764,606 in 2024 to RMB 15,507,801 in 2025, indicating a growth of about 99%[41]. Company Strategy and Operations - The company has established a significant global retail presence since opening its first store in China in 2013, now operating a vast network of stores worldwide[29]. - The company emphasizes high-quality, aesthetically pleasing, and cost-effective products as core attributes of its offerings[29]. - The company plans to continue expanding its product offerings and enhancing its IP design capabilities to attract a broader consumer base[29]. - The company aims to provide a pleasant shopping experience that appeals to all demographics through its diverse product range[29]. - The management team will discuss financial performance during the earnings call scheduled for May 23, 2025[26]. Financial Metrics and Definitions - The adjusted net profit is defined as excluding certain non-cash and other adjustments, providing a clearer view of operational performance[31]. - The adjusted EBITDA is calculated by adding back depreciation, amortization, and financial costs to the adjusted net profit, allowing for a more comprehensive assessment of profitability[31]. - The adjusted net profit margin is calculated based on the adjusted net profit divided by revenue, providing insight into profitability relative to sales[31]. - The company encourages investors to review its financial data comprehensively rather than relying solely on individual financial metrics[33].

Group 1 - The company's revenue for the first quarter reached 4.43 billion RMB, slightly above the estimated 4.41 billion RMB [1] - Adjusted net profit was reported at 587.2 million RMB, lower than the forecast of 661.3 million RMB [1] - The adjusted EBITDA margin stood at 23.4% [1]

Core Viewpoint - MINISO Group reported a strong financial performance for the March Quarter of 2025, with revenue growth of 18.9% year over year, driven by improvements in same-store sales and an increase in store count, particularly in overseas markets [1][6][9]. Financial Highlights - Revenue increased to RMB4,427.0 million (US$610.1 million), up 18.9% year over year [6][11]. - Gross profit rose by 21.1% to RMB1,958.0 million (US$269.8 million), with a gross margin of 44.2%, an increase of 0.8 percentage points from the previous year [6][14]. - Adjusted EBITDA grew by 7.5% year over year to RMB1,037.3 million (US$142.9 million), with an adjusted EBITDA margin of 23.4% [6][22]. - Profit for the period was RMB416.5 million (US$57.4 million), down from RMB586.0 million in the same period last year [6][21]. Operational Highlights - The total number of stores reached 7,768, representing a year-over-year increase of 978 stores, with 70% of new stores located in overseas markets [6][7]. - The number of MINISO stores in mainland China increased to 4,275, with a net addition of 241 stores [6][8]. - Revenue from MINISO brand in overseas markets grew by 30.3%, contributing 39.0% to total revenue from the brand [12][9]. Strategic Insights - The company emphasized its commitment to product mix optimization and strategic store network refinement to achieve sustainable growth [9][10]. - Investments in directly operated stores have led to an 85.5% increase in revenue from these locations, although related expenses also rose significantly [16][18]. - The company maintained a strong cash position of RMB7,255.3 million (US$999.8 million) as of March 31, 2025, and returned approximately RMB986.9 million to shareholders year to date [10][24].

Core Insights - The global toy market is entering a golden era, with significant growth opportunities for Chinese brands in overseas markets, particularly in Southeast Asia and Europe [3][4][6] - The market size of the global toy industry is projected to reach approximately 773.1 billion yuan in 2023, with a CAGR of about 5.1% from 2024 to 2028 [4] - The transformation in consumer demographics and preferences is driving the demand for collectible toys, with notable growth in the 12+ age group in the US and Europe [5][7] Group 1: Market Dynamics - The global toy market is experiencing a profound transformation characterized by changes in consumer demographics, marketing strategies, and distribution channels [5][6] - The collectible toy segment is rapidly gaining market share, with companies like LEGO and MGA Entertainment seeing significant increases in their market shares [4][5] - The rise of social media and online shopping has facilitated the growth of new brands, allowing them to bypass traditional retail monopolies [5][7] Group 2: Regional Insights - Southeast Asia is witnessing rapid growth in the toy market, driven by a young population and strong entertainment consumption trends [7] - The North American and European markets present substantial opportunities for growth, with high consumer spending and acceptance of diverse cultures [7] - Chinese brands are successfully localizing their marketing strategies in Southeast Asia, leveraging influencer collaborations and e-commerce platforms [7] Group 3: Competitive Landscape - The emergence of new collectible toy brands is reshaping the competitive landscape, with domestic brands like Pop Mart and Blokko gaining international traction [4][5] - The shift from traditional toy consumption to a focus on collectibles is creating a new market dynamic, where emotional and social factors play a significant role in purchasing decisions [5][6] - The ability of Chinese brands to innovate in product design and quality is enhancing their competitiveness on a global scale [4][5]

Summary of Conference Call Notes Industry Overview - The conference call discusses the **Chinese consumer market**, highlighting its transition into a new consumption era characterized by emotional consumption and the integration of AI applications. [1][2][5] Key Insights and Arguments - The **fifth consumption era** in China emphasizes "well-being," which includes both physical and emotional health, leading to a diversification of emotional consumption patterns, especially in first-tier cities. [1][7] - The **media sector** is positioned as a dual attribute of technology and discretionary consumption, benefiting from both new consumer trends and AI applications, which are expected to drive valuation reassessment. [1][6][10] - **Policy support** from the government is crucial in driving market growth, with a focus on urban renewal and the application of new technologies to stimulate economic activity. [1][9] - The **Japanese experience** in transitioning through consumption eras serves as a model for China, particularly in understanding consumer behavior and the importance of emotional value in purchasing decisions. [2][3][6] Emerging Trends - Emotional consumption is gaining traction as it reflects changes in social and economic cycles, aligning with the "well-being" concept introduced in Japan's fifth consumption era. [8] - The **rise of new consumer demands** in sectors such as beauty care, fitness, and card games is noted, particularly in lower-tier markets, indicating potential growth opportunities. [1][5] Important but Overlooked Content - The **impact of AI and new media** on the media sector is highlighted, with a focus on the integration of AI applications in enhancing consumer engagement and content delivery. [3][10] - The **China Securities Regulatory Commission's** policies on mergers and acquisitions are expected to invigorate the market, allowing companies to leverage strategic partnerships for growth. [3][11] - Specific **media sector companies** to watch include cinema chains like Wanda Film and Hengdian Film, as well as companies involved in IP derivatives and digital marketing, indicating a diverse investment landscape. [12][13] Conclusion - The conference call emphasizes the importance of understanding the evolving consumer landscape in China, driven by emotional values and supported by government policies, while also recognizing the potential of AI applications in reshaping the media sector. [1][2][10]

Group 1 - The core focus of the Shenzhen Stock Exchange's 2025 Global Investor Conference is to promote cross-border investment opportunities in the Greater Bay Area, emphasizing the digital economy and consumption sectors [1][2] - The collaboration between Shenzhen Securities Information Co. and Hang Seng Index Co. resulted in the launch of the National Index Hang Seng Greater Bay Area Digital Economy Index and the National Index Hang Seng Greater Bay Area Consumption Index, aimed at providing distinctive cross-border investment targets [1][2] - The digital economy index includes 50 companies with high market capitalization and liquidity from sectors such as electronic components, telecommunications equipment, and internet services, featuring major players like Tencent Holdings and ZTE Corporation [2][3] Group 2 - The consumption index also comprises 50 companies from sectors like home appliances and personal care, including industry leaders such as Gree Electric Appliances and TCL Technology [2] - The initiative is seen as a positive innovation practice to enhance the interconnectivity between Shenzhen and Hong Kong's capital markets, facilitating high-level bilateral openness [2][3] - The CEO of Hang Seng Index expressed enthusiasm for the collaboration, highlighting the potential for increased liquidity and dual development between Hong Kong and mainland capital markets [3]