Financial Overview - Total revenue for Q1 FY25 was 44.3 billion RMB, showing a year-over-year increase of 18.4% [1] - Gross profit was 19.6 billion RMB with a gross margin of 44.3% [1] - Core operating profit was 7.1 billion RMB, representing a decline of 13.41% year-over-year [1] - Adjusted net profit was 5.9 billion RMB, down 10.11% year-over-year [1] Market Strategy - The company is focusing on improving same-store sales performance, which has shown significant improvement compared to Q3 and Q4 of the previous year [2] - The average customer transaction value remained stable, while foot traffic in physical stores has seen a slight decline [2] - The company is optimistic about achieving positive growth in same-store sales by mid-2025 [2] Expansion Plans - The company opened 5 new large stores in Q1 and has plans for 50 more [5] - Internationally, the company is focusing on expanding in 24 states in the U.S., covering 76% of the population [5] - The company aims to enhance its product differentiation with over 40% of its products being proprietary under the TOP TOY brand [5] Financial Management - The company plans to distribute a dividend of 740 million RMB for the fiscal year 2024 [4] - A total of 260 million RMB has been allocated for share buybacks in 2025, representing 0.7% of total shares [4] - The long-term target for operating profit margin is set at 20%, with a short-term focus on improving the efficiency of direct stores [4]

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]