2023-05-16 19:43Financial Data and Key Metrics Changes - Revenue for Q3 2023 increased by 26% year-over-year, reaching RMB 2.95 billion, driven by strong recovery in offline operations and overseas business [4][21] - Gross profit margin improved to 39.3%, a 9 percentage point increase from the same period last year [4][24] - Adjusted net profit reached RMB 418 million, a 336% year-over-year increase, with an adjusted net profit margin of 16.4%, up 12 percentage points from last year [4][27] Business Line Data and Key Metrics Changes - MINISO brand China business recorded RMB 2 billion in revenue, a 19% year-over-year increase, with offline store revenue increasing by 25% [5][21] - Revenue from overseas markets was RMB 800 million, a 55% year-over-year increase, with GMV in overseas markets growing by 45% [13][21] - TOP TOY revenue was RMB 114 million, a 24% year-over-year increase, with exclusive products contributing to improved gross profit margin [17][18] Market Data and Key Metrics Changes - In China, retail sales of consumer goods increased by 4.9% year-over-year, while MINISO's offline business outperformed with over 25% growth [6][21] - North America saw GMV growth of over 100%, while Latin America experienced over 60% growth [14][35] - Asian markets, excluding China, recorded about 30% GMV growth, with notable increases in Singapore (90%) and the Philippines (50%) [15][37] Company Strategy and Development Direction - The company is focused on high-quality growth and improving store performance through better merchandise and operations [8][20] - MINISO is committed to its IP strategy, launching successful collaborations, including a series of Pokémon products [9][10] - The company aims to transform into a super brand, with plans for a global flagship store in New York City [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained strong performance and improvement in store-level metrics, despite external challenges [28] - The company anticipates continued sales growth driven by store network expansion and improved margin profiles [28] - Management highlighted the importance of globalization to mitigate country-specific risks [15] Other Important Information - The company opened 58 new stores in Q3 2023, with a record low store closure rate of 0.6% [7] - The average number of orders and average order value increased by 8% year-over-year [22] - The cash position at the end of the quarter was approximately RMB 7 billion, up from RMB 6.2 billion at the end of 2022 [27] Q&A Session Summary Question: Comments on gross margin and IP products contribution - Management indicated that merchandise gross margin is expected to approach 60% by the end of Q2 2023, with IP products contributing around 20% [32][34] Question: Insights on overseas operations and market drivers - North America showed over 100% GMV growth, while Latin America and Asian markets also performed well, with varying recovery rates [35][37] Question: Store openings and consumer behavior changes - The company is confident in exceeding its store opening target, with a focus on Tier 1 and Tier 2 cities [40][41] Question: Best-selling items and operating margins - Best-selling SKUs accounted for 40% of total sales in China, with significant year-over-year growth [46] Question: Profitability expectations for TOP TOY - TOP TOY is expected to narrow its losses significantly in the coming year, focusing on product innovation [55]