Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][6][23] Core Views - The company is showing signs of a turning point in its main business operations, with mid-year performance beginning to validate this trend. The ongoing implementation of the large store model and proprietary IP strategy is expected to drive continuous improvement in both domestic and international performance [2][3][23] - The domestic large store strategy is optimizing store structure and improving operational efficiency, leading to gradual improvements in same-store sales. The IP strategy is enhancing global competitiveness and significantly driving overseas business and the TOP TOY brand development [2][3][23] Summary by Sections Financial Performance - In Q2, the company achieved revenue of 4.966 billion, a year-on-year increase of 23.1%, exceeding the previous guidance of 18%-21%. Operating profit reached 836 million, up 11.3% year-on-year, while adjusted net profit was 692 million, reflecting a 10.6% increase year-on-year [3][23] - The management has raised the full-year guidance, expecting Q3 overall revenue growth of 25-28%, with domestic MINISO brand revenue growth in the mid to high double digits and overseas revenue accelerating to 30%-35% [3][23] Domestic Business - The domestic revenue for the MINISO brand in Q2 was 2.62 billion, a year-on-year increase of 13.6%. Same-store sales have turned positive, with a net increase of 30 stores in Q2, reversing the previous trend of store closures [9][10] - Same-store growth is driven by improved customer spending and enhanced store conversion rates, despite a slight decline in foot traffic [9][10] Overseas Business - Overseas revenue for the MINISO brand reached 1.94 billion, a year-on-year increase of 28.6%. The company plans to add over 500 new stores globally this year, with significant growth in the North American market [13][14] - The North American strategy focuses on large stores and cluster openings, enhancing brand presence and operational efficiency [14][16] TOP TOY Brand - TOP TOY achieved revenue of 400 million in Q2, a year-on-year increase of 87%. The brand is focusing on enhancing its own brand and IP sales contributions, with plans for global expansion [17][19] Strategic Initiatives - The company is advancing its large store strategy both domestically and internationally, with significant investments in MINISO LAND and flagship stores, which have shown higher sales efficiency compared to smaller stores [18][19] - The proprietary IP strategy has evolved into a dual-driven model, focusing on both artist IP and top international licensed IP, with plans to launch self-owned IP products in overseas markets [19][23]