Core Viewpoint - The article discusses the financial performance and strategic direction of MINISO, emphasizing the importance of a strong business model for long-term returns and the challenges faced in maintaining competitive pricing and profitability in the retail sector [1][12]. Financial Performance - MINISO reported Q3 2025 revenue of 5.797 billion RMB, a year-on-year increase of 28.2%, achieving a record high for a single quarter. Gross profit rose by 28% to 2.58 billion RMB, with a gross margin of 44.7%. However, net profit attributable to shareholders decreased by 31% to 441 million RMB, while adjusted net profit increased by 12% to 767 million RMB, with an adjusted net profit margin of 13.2% [1]. - For Q1 2025, MINISO's revenue was 4.427 billion RMB, up 18.9%, but operating profit fell by 4.51% to 710 million RMB, and net profit dropped by 28.92% to 417 million RMB. Adjusted net profit was 587 million RMB, down 4.81%, with a net profit margin of 13.3% [3]. - In Q2 2025, total revenue reached 4.97 billion RMB, a 23.1% increase, with a gross margin of 44.3%. Operating profit grew by 11.3% to 836 million RMB, while net profit was 489.5 million RMB, down from 591.4 million RMB in the previous year [3]. Business Segments - MINISO brand revenue was 5.22 billion RMB, reflecting a 23% increase, while TOP TOY brand revenue surged by 111.4% to 570 million RMB. The total number of stores globally reached 8,138, with 7,831 MINISO stores and 307 TOP TOY stores [1]. - The same-store GMV showed single-digit growth across the group, with MINISO in China experiencing high single-digit growth, indicating a stable base in the domestic market [1]. Business Model Analysis - The article critiques MINISO's business model, questioning whether it aligns more with unique product offerings or cost efficiency. The current strategy appears to lean towards the former, aiming for distinctive product strength rather than merely competing on price [5][12]. - The founder's past assertion of a "quality at low price" model is challenged, as the current gross margin exceeds 50%, suggesting that the pricing strategy may not be as competitive as claimed [6][8]. - The company is seen as focusing on brand and IP management rather than traditional retail efficiency, which may limit its ability to compete on price against discount retailers [12][9]. Competitive Landscape - The article highlights the competitive pressures faced by MINISO, particularly from established players in the market. The potential for competitors to offer lower prices poses a significant risk to MINISO's market position [12][15]. - The discussion includes comparisons with other brands, such as Bubble Mart, which operates on a unique product model with higher gross margins, suggesting that MINISO's strategy may not be sustainable in the long term [14][15].

Core Insights - MINISO Group reported a total revenue of 5.8 billion yuan for Q3 2025, representing a year-on-year growth of 28% [1] - The MINISO brand revenue reached 5.22 billion yuan, with a year-on-year increase of 23%, while the TOP TOY brand revenue surged to 570 million yuan, marking a significant growth of 111% [1] - The group's gross profit for the quarter was 2.59 billion yuan, also reflecting a year-on-year growth of 28%, with a gross margin of 44.7% [1] - Adjusted net profit (Non-IFRS) stood at 770 million yuan, up 12% year-on-year, resulting in an adjusted net profit margin of 13.2% [1] Store Expansion - As of the end of the reporting period, MINISO Group has surpassed 8,000 global stores [1] - The company is launching its upgraded store model, MINISO LAND, in key cities such as Guangzhou, Hangzhou, Chongqing, and Wuhan, with 17 locations opened domestically [1] - The first overseas MINISO LAND opened in Bangkok, Thailand, at Siam Square pedestrian street at the end of October [1] IP Development - By November 2025, MINISO has signed contracts with 16 trendy toy artist IPs, creating a diverse and rich proprietary IP matrix [1]