Core Insights - Miniso reported a revenue of 9.393 billion RMB for the first half of 2025, representing a year-on-year growth of 21.1% [1] - Operating profit for the same period was 1.546 billion RMB, up 3.4% year-on-year, while net profit decreased to 905.99 million RMB, down 23.1% compared to the previous year [1][2] Financial Performance - For the second quarter of 2025, revenue reached 4.966 billion RMB, a 23.1% increase year-on-year, with operating profit at 836.16 million RMB, an 11.3% rise [2] - The net profit for the second quarter was 489.53 million RMB, down 17.3% from 591.43 million RMB in the same quarter last year [2] Profitability Analysis - The decline in net profit was attributed to a decrease in pre-tax profit, increased financial costs related to stock-linked securities, and losses from the acquisition of Yonghui Superstores [3] - Financial costs for the first half of 2025 amounted to 794 million RMB, significantly higher than the 90 million RMB in the same period last year, primarily due to interest expenses related to stock-linked securities and bank loans for the acquisition [4] Debt and Liabilities - Total liabilities doubled from 7.765 billion RMB at the end of 2024 to 15.749 billion RMB in the first half of 2025, with the debt-to-asset ratio increasing from 42.85% to 59.10% [5] Sales and Distribution Expenses - Sales and distribution expenses rose to 1.16 billion RMB, a 40.4% increase year-on-year, with a 42.8% increase when excluding share-based payment expenses [6] - The increase in expenses is attributed to investments in direct stores, particularly in strategic overseas markets like the United States [6] Market Expansion - The number of Miniso stores increased from 7,504 to 7,612, while TOPTOY stores grew from 276 to 293 as of June 30, 2025 [5] - Revenue from overseas markets increased by 29.4%, accounting for 40.9% of total brand revenue, up from 37.3% in the previous year [6]