Core Viewpoint - Miniso has successfully implemented a global layout for lifestyle goods collection stores, leveraging mature IP operation capabilities and offline development experience, particularly in the U.S. market, which provides a guarantee for the company's continued growth [1] Group 1: Financial Performance - In Q1 2025, the company achieved operating revenue of 4.427 billion yuan (+18.9%), operating profit of 710 million yuan (-4.51%), and net profit attributable to shareholders of 416 million yuan (-28.5%) [1] - Adjusted net profit for the same period was 587 million yuan (-4.81%) [1] Group 2: Domestic Store Performance - The same-store sales decline in domestic Miniso locations improved from a high single-digit decrease to a mid-single-digit decrease, with a positive same-store sales performance during the May Day holiday [2] - The number of domestic Miniso stores decreased by 111 to 4,275, with reductions in first, second, and third-tier cities of 18, 49, and 44 stores respectively [1] Group 3: Strategic Initiatives - The company continues to execute a strategy of opening larger stores and encourages franchisees to exit smaller, less profitable locations, aiming for more IP-dominant stores and flagship stores [2] - In Q1 2025, the company added 95 overseas stores, reaching a total of 3,213, with overseas business revenue growth exceeding 30% [2] Group 4: Supply Chain and Cost Management - The U.S. direct sales system is expanding, focusing on densely populated states to enhance scale effects, although initial costs have pressured Q1 performance [2] - The company has increased its local sourcing in the U.S. to nearly 40%, minimizing the impact of tariffs [2] Group 5: Profitability and Future Outlook - The company's gross margin continued to rise, but net profit margin declined due to increased financial expenses from convertible bond issuance and bank loans for acquiring Yonghui Superstores [2] - The company maintains projected net profits for 2025-2027 at 3.074 billion, 3.645 billion, and 4.074 billion yuan, corresponding to PE ratios of 16X, 13X, and 12X [2]