MINISO Group Holding Ltd. Q1 FY2025 earnings call

Domestic Market - Continued optimization of same-store performance: Narrowed Y-o-Y decline in Q1, shifted from negative to positive during holidays, maintained guidance for positive same-store growth for the year. - Strengthened IP strategy: Enhanced product development precision, expanded IP partnership, focused on creating heat products around IP. - China upgrade with large stores: Opened new stores, renovated existing ones, closed underperforming stores, with larger stores' performance contribution gradually increasing. ### International Market - Overseas revenue contribution rose 3 percentage points, implemented diversified strategy in different markets, optimized cooperation models with agents, held global new product exhibition. ### TOP TOY: Continued steady development, self-developed products proportion over 40% in Q1, continued brand building and in-house product development.

In Q1 2025, MINISO Group's overall revenue was RMB 4.43 billion, growing 90% year-on-year. MINISO China net revenue was RMB 2.49 billion, up 9%, and MINISO overseas revenue was RMB 1.59 billion, up 30%. Top Toy brand achieved RMB 340 million revenue, up 59%. Revenue structure: China mainland accounted for 56% of total revenue, overseas 36%. Gross margin was 44.2%, up nearly 1 percentage point year-on-year.

Confident in Q2 and full-year performance. Continue refined operational strategy, strengthen IP partnership, upgrade channels and stores, enhance supply chain management. Maintain shareholder return policies with dividends and share repurchase. Aim for positive same-store growth for the full year and reasonable operating profit margin around 20%.

Factors affecting profit margin: Increase in financial expenses from convertible bonds, bank loans, and store lease for directly opened stores. Tariff fluctuations in the U.S. market posing challenges.

Q: Regarding MINISO domestic China business, elaborate on same-store improvement, store opening plan.

A: In Q1, domestic same-store had mid-single-digit decline but improved from Q3/Q4 last year. Confident in double-digit growth for the year, will optimize store network.

Q: Targeting U.S. market, strategy for tariff fluctuation and supply chain adjustment.

A: Built inventory in U.S., adjusted supply chain for direct sourcing from U.S. market, and tax planning to reduce tariff burden.

Q: Impact of YH on MINISO's profit and growth.

A: YH's performance in line with expectation, with adjusted stores showing good profit, future growth from efficiency improvement.

Q: Overseas same-store performance and IP partnership strategy.

A: Overseas same-store performance improved in April, confident in further improvement. For IP, continue expanding partnerships, focus on product design and quality, and work on in-house IP.

Q: MINISO Mainland China business GP margin and third-party products.

A: GP margin stable, show third-party merchandise in specific categories to convert organic traffic, with dynamic control to maintain margin.

Q: Store closures and net openings in China.

A: Closed underperforming stores, aim for more growth from same-store performance improvement in 2025, with net openings to be dynamically adjusted.