Core Viewpoint - Miniso's (09896.HK, MNSO.US) performance has shown a significant adjustment, with a notable decline in net profit for the first half of 2025, marking the first drop in four years [2][8]. Financial Performance - For the first half of 2025, Miniso reported revenue of approximately 9.4 billion yuan, a year-on-year increase of about 21%, while net profit attributable to shareholders was 906 million yuan, a decrease of 23% [2][6]. - The adjusted net profit for the same period was 1.279 billion yuan, reflecting a 3% increase year-on-year [6]. - In comparison, the revenue for the first half of 2024 was 7.759 billion yuan, with a net profit of 1.170 billion yuan, which had shown a growth of 16.45% [6]. Investment Impact - The decline in net profit has been attributed to losses from the investment in Yonghui Supermarket, where Miniso holds a 29.4% stake, resulting in a loss of 119 million yuan for the first half of 2025 [3][11]. - Yonghui Supermarket's performance has been underwhelming, with a reported revenue of 29.948 billion yuan, down 20.73%, and a net loss of 24.1 million yuan for the same period [10]. Expansion and Future Outlook - Miniso continues to expand rapidly, with a total of 7,612 stores globally as of June 30, 2025, an increase of 108 stores from the end of 2024 [3][13]. - The company has provided a positive outlook for the remainder of 2025, expecting revenue growth of no less than 25% and adjusted operating profit between 3.65 billion and 3.85 billion yuan [13]. IP Development - Miniso's CEO, Ye Guofu, is focusing on enhancing the company's IP capabilities, with the independent brand TOP TOY recently receiving strategic financing from Temasek, valuing it at approximately 10 billion HKD [4][16]. - TOP TOY has shown significant growth, with a revenue increase of 87% year-on-year for the second quarter, and the company anticipates a 70%-80% growth in revenue for the full year [16].