MINISO Group Holding Limited

MINISO Group H1 revenue was RMB 11.5 billion, up 22.4% year over year. EPS grew 8.2%, and operating cash flow rose 46% to RMB 1.48 billion. Gross margin in H1 was 44.3%, flat year over year; Q2 gross margin was 45.3%, up 1 percentage point year over year, helped by U.S. tariff refunds. Adjusted operating profit was RMB 1.49 billion in H1, down 6% year over year, or up 5% excluding foreign exchange. Adjusted net profit was RMB 1.22 billion, down 1.7% excluding foreign exchange. For the full year, management expects revenue to grow by mid-double digits, China same-store sales to grow low single digits, North America same-store sales to stay at low single digits, adjusted operating profit to decline by a high single digit year over year excluding FX, and adjusted operating margin to decline 3 to 4 percentage points. For H2, revenue is expected to grow by high single digits, China revenue by mid- to upper-single digits, overseas revenue by low single digits, and TOP TOY revenue by low single digits in H2 and low double digits for the full year.

Ye Guofu framed the quarter as a validation of MINISO’s long-term shift toward larger stores, proprietary IP, and a more system-driven membership model. He said large-store formats are outperforming expectations, proprietary IP is becoming a new growth engine, and the group has already reached its RMB 1 billion proprietary IP sales target ahead of schedule. His tone was confident on China and the company’s strategic direction, but more measured on overseas execution, which he described as requiring patience, localization, and stronger organizational capacity.

Zhang Jingjing focused on the earnings quality and the reasons the company came in above or below prior guidance. He said H1 revenue beat the 20% to 22% guidance, China outperformed thanks to faster store upgrades and proprietary IP, while overseas revenue lagged because distributor revenue fell 10% and North America same-store sales weakened in June. He also highlighted H1 cash reserves of RMB 7.39 billion, operating cash inflow of RMB 1.48 billion, inventory turnover of 102 days versus 97 days last year, and shareholder returns of RMB 1.31 billion in H1, including RMB 520 million of buybacks. He noted tariff refunds supported gross margin by about 0.6 points in H1 and could add 20 to 30 bps over the next two quarters.

Analysts focused on the durability of China’s large-store performance, the softer July/August retail backdrop, North America’s slowdown, and the outlook for distributor markets. Management said China same-store sales remained steady in July and August, average transaction value rose 20%, and lower-tier cities still offer runway because penetration is low. On North America, they pointed to a temporary gap in IP launch cadence, product mix adjustments, stock-outs of key IP items, and higher upfront costs from new directly operated stores; management still targets about RMB 4 billion in North America revenue and a 10% net margin, but now expects 2027 to be a turning point for profit margin. On distributor markets, the company said the decline mainly reflects inventory digestion and some macro/geopolitical headwinds, and emphasized it would prioritize channel health over forcing restocking.