2022-11-14 19:24Financial Data and Key Metrics Changes - Revenue for the September quarter reached RMB 2.77 billion, increasing by 5% year-on-year, primarily due to a 48% growth in revenue from overseas markets, partially offset by a 9% decrease in revenue from China [23][28] - Gross profit in the September quarter was RMB 989 million, representing a 36% year-on-year increase, with a gross margin of 35.7%, a record high for MINISO Group, up from 27.4% in the same quarter last year [28][34] - Adjusted net profit was RMB 417 million, representing an increase of 127% year-on-year, with an adjusted net margin of 15.1% compared to 6.9% in the same quarter of last year [34] Business Line Data and Key Metrics Changes - MINISO China's revenue was RMB 1.7 billion, with offline business revenue at RMB 1.54 billion, a 9% year-on-year decrease but a 20% quarter-over-quarter increase [8][23] - E-commerce revenue was RMB 163 million, decreasing by 12% year-on-year but increasing by 23% quarter-over-quarter, accounting for 6% of total revenue [9][23] - Revenue from overseas markets was RMB 920 million, accounting for 33% of total revenue, with a year-on-year increase of 48% [26] Market Data and Key Metrics Changes - North America saw store sales growth of nearly 50% year-on-year, matching levels from the same period in 2019 [13] - Europe experienced a 20% year-on-year increase in store sales, doubling the level from the same period in 2019 [14] - Latin America recorded nearly 40% year-on-year growth and 20% from the same period in 2019 [14] Company Strategy and Development Direction - The company remains focused on its globalization strategy, enhancing product offerings, and optimizing its store network [6][7] - MINISO's international operations have turned profitable, contributing to a strong recovery in overseas business [7][21] - The company plans to continue localized product strategies and sophisticated operations to ensure sustainable growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue and profit growth potential, citing new pandemic control policies in China as a positive factor for recovery in the offline retail industry [21][22] - The company is cautious about new store openings due to pandemic uncertainties but expects store performance to improve [38] - Management highlighted the importance of cost control and disciplined financial strategy to maintain solid financial performance [35] Other Important Information - The company added 43 stores in China during the quarter, primarily in lower-tier cities, and plans to adjust store openings based on pandemic dynamics [11] - The merchandise gross margin for TOP TOY was about 42%, with a significant narrowing of net loss [19] - MINISO released its first ESG report, enhancing transparency regarding governance and social responsibilities [20] Q&A Session Summary Question: Domestic business performance and store expansion outlook - Management acknowledged the uncertainty of the pandemic but noted that store closures have decreased, and they expect healthy store network growth [38] Question: Gross profit margin outlook - Management indicated that gross margin increased due to a better revenue mix and cost-cutting measures, with expectations for continued improvement [39][40] Question: Operating expense savings and sustainability - Management explained that labor cost reductions contributed to decreased general expenses, and they plan to maintain expense control moving forward [45] Question: Performance during Double 11 shopping holiday - Management reported total GMV exceeding RMB 100 million during Double 11, with significant growth in key product categories [47] Question: Impact of RMB depreciation on gross profit margins - Management clarified that while overseas gross margins are high, RMB depreciation does not directly affect GP margins [50][51] Question: Future GP margin targets - Management expressed optimism about maintaining GP margin improvements through cost reductions and strategic supplier relationships [52][54]