MINISO Reports Strong Revenue Growth and Increased Profit in Q2 2025

MINISO (MNSO.US) announced its unaudited financial results for Q2 2025, with revenue increasing 23.1% year-over-year to RMB4,966.1 million (US$693.2 million), surpassing the Company's guidance range. Adjusted diluted earnings per ADS for the quarter were RMB2.24 (US$0.31), reflecting a 12.0% year-over-year increase, outperforming the analyst estimate of RMB1.75. The Company’s adjusted net profit rose 10.6% year-over-year to RMB691.5 million (US$96.5 million).

Strong Brand Performance and Expansion

MINISO Brand's revenue saw a significant increase of 19.5% year-over-year, reaching RMB4,563.2 million (US$637.0 million). This growth was notably driven by a 28.6% increase in revenue from overseas markets, which now contribute 42.6% of MINISO brand revenue. In mainland China, MINISO Brand's same-store GMV (SSSG) turned positive for the quarter, with the Company expecting continued positive growth for the full year 2025.

The TOP TOY brand demonstrated exceptional growth, with revenue surging 87.0% to RMB402.2 million (US$56.1 million). This performance was supported by robust sales of pop toy products and a strengthened store network, with the number of TOP TOY stores increasing by 98 net new stores year-over-year to 293. The brand has also begun strategic expansion into overseas markets.

Operational Investments and Profitability

The Company's gross margin improved to 44.3% from 43.9% in the prior-year period, primarily due to a higher revenue contribution from overseas markets and the strong gross margin of TOP TOY. Operating profit increased 11.3% year-over-year to RMB836.2 million (US$116.7 million), with adjusted operating profit growing 8.5% to RMB851.8 million (US$118.9 million).

Selling and distribution expenses increased by 40.4%, largely attributed to investments in directly operated stores, especially in strategic overseas markets like the U.S. As of June 30, 2025, the total number of directly operated stores reached 637, compared to 393 in the prior year. Despite increased expenses, revenue from these stores grew by 78.7%.

Management Outlook and Capital Allocation

Management expressed optimism for the remainder of 2025, anticipating accelerated revenue growth. They expect investments in directly operated businesses to unlock sales potential and optimize margin profiles, particularly overseas. The Company's strong cash position, which reached RMB7,466.1 million (US$1,042.2 million) as of June 30, 2025, supports these strategic expansions.

The board approved an interim cash dividend of US$0.2896 per ADS, representing approximately 50% of the Company's adjusted net profit for the first half of 2025. This dividend, along with share repurchases, resulted in a total return to shareholders of approximately RMB1,071 million for the first half of 2025, emphasizing a balanced capital allocation strategy.