2023-02-28 21:43Financial Data and Key Metrics Changes - The company's gross margin increased by 8.9 percentage points year-over-year, reaching a record high of 40% [4] - Adjusted net profit increased by 82% year-over-year, with an adjusted net margin of 15% [4][30] - Revenue in the December quarter was approximately RMB 2.5 billion, a decrease of 10% year-over-year, primarily due to a 27% decline in revenue from China [25] - Gross profit was RMB 997 million, an increase of 16% year-over-year [27] Business Line Data and Key Metrics Changes - Revenue from MINISO's offline operations in China decreased by 28% due to a 32% decrease in foot traffic, although average ticket size increased by 6% [5][6] - TOP TOY revenue decreased by 25% year-over-year, with a gross margin of around 45% [13][15] - The overseas business saw a 40% year-over-year increase in GMV, with revenue reaching nearly RMB 1 billion, representing a 38% increase [9][10] Market Data and Key Metrics Changes - In overseas markets, North America recorded the best performance with 66% year-over-year growth, followed by Latin America at 51% [11] - The average GMV per store in overseas markets recovered to 86% of the level achieved in the same period of 2019 [12] - The top five overseas markets were Mexico, the Philippines, Indonesia, the U.S., and Colombia, with India becoming the sixth overseas market [10] Company Strategy and Development Direction - The company aims to upgrade from a channel brand to a product brand and enhance customer loyalty by transforming the shopping experience [16][21] - MINISO plans to focus on strategic categories with emotional resonance, global appeal, and high growth potential, such as perfumes, which have seen significant growth [22] - The company expects to open between 250 and 350 new stores in China and 350 to 450 overseas stores in 2023 [8][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of consumer spending in China and the growth prospects for 2023 [8] - The company has maintained strong profitability despite pandemic challenges, with an average adjusted net margin of 8.6% over the past 18 quarters [31] - Management highlighted the importance of a disciplined financial policy focusing on budgeting, cost control, and capital allocation [31] Other Important Information - The company added a net 56 MINISO stores in China during the December quarter and 88 stores in overseas markets [8][13] - The company has established a global product innovation center to enhance product development capabilities [16] Q&A Session Summary Question: Inquiry about gross margin improvement - Management attributed the strong gross margin performance to a revenue mix shift towards overseas markets and brand strategic upgrades in China [35][36] Question: Inquiry about overseas business performance - Management reported that overseas direct operations have broken even for two consecutive quarters, with mature markets like India and Indonesia showing strong operating margins [40][41]