MINISO Group Pronounces September Quarter 2022 Monetary Outcomes

GUANGZHOU, China, Nov. 13, 2022 /PRNewswire/ — MINISO Group Holding Restricted (NYSE: MNSO; HKEX: 9896) (“MINISO”, “MINISO Group” or the “Firm”), a worldwide worth retailer providing quite a lot of design-led life-style merchandise, right this moment introduced its unaudited monetary outcomes for the primary quarter of fiscal 12 months 2023 ended September 30, 2022.

Monetary Highlights for the First Quarter of Fiscal 12 months 2023 ended September 30, 2022

• Income was RMB2,772.4 million (US$389.7 million), representing a rise of 4.5% 12 months over 12 months and 19.6% quarter over quarter. 
• Gross revenue was RMB988.6 million (US$139.0 million), representing a rise of 35.7% 12 months over 12 months and 28.1% quarter over quarter. 
• Gross margin was 35.7%, in comparison with 27.4% in the identical interval of 2021 and 33.3% within the earlier quarter.
• Working revenue was RMB509.5 million (US$71.6 million), representing a rise of 138.6% 12 months over 12 months and 87.3% quarter over quarter. 
• Revenue for the interval was RMB404.1 million (US$56.8 million), representing a rise of 161.5% 12 months over 12 months and 93.9% quarter over quarter.
• Adjusted internet revenue⁽¹⁾ was RMB417.4 million (US$58.7 million), representing a rise of 126.6% 12 months over 12 months and 87.3% quarter over quarter. 
• Adjusted internet margin⁽¹⁾was 15.1%, in comparison with 6.9% in the identical interval of 2021 and 9.6% within the earlier quarter.

Operational Highlights for the First Quarter of Fiscal 12 months 2023 ended September 30, 2022

• Variety of MINISO shops was 5,296 as of September 30, 2022, rising by 425 shops 12 months over 12 months and 97 shops quarter over quarter, respectively.
• Variety of MINISO shops in China was 3,269 as of September 30, 2022, rising by 234 shops 12 months over 12 months and 43 shops quarter over quarter, respectively.
• Variety of MINISO shops in abroad markets was 2,027 as of September 30, 2022, rising by 191 shops 12 months over 12 months and 54 shops quarter over quarter, respectively.
• Variety of TOP TOY shops was 109 as of September 30, 2022, rising by 37 shops 12 months over 12 months and 12 shops quarter over quarter, respectively.

The next desk gives a breakdown of the variety of MINISO and TOP TOY shops in addition to their year-over-year and quarter-over-quarter modifications as of the related dates:

Mr. Guofu Ye, Founder, Chairman, and Chief Govt Officer of MINISO, commented, “We kicked off fiscal 12 months 2023 with an encouraging set of outcomes headlined by sturdy margin efficiency. Despite the short-term headwinds introduced on by the pandemic in China, we remained centered on our long-term strategic objectives: delivering on our globalization technique, bolstering the energy of our product choices and optimizing our retailer community. These efforts are yielding optimistic outcomes, and we continued to see our abroad operations transfer additional alongside the trail of restoration. I’m particularly happy to report that our margin profile continued to beat expectations, with adjusted internet revenue rising by 127% year-on-year to RMB417 million within the September quarter, and adjusted internet margin reaching its highest ever stage at 15.1%.”

“On November 11, China’s Nationwide Well being Fee launched a brand new set of refined pandemic prevention and management insurance policies that are extra scientific and extra exact. I imagine that beneath the steerage of those new insurance policies, the offline retail business will see new alternatives for restoration and development. We stay optimistic about our income and revenue development potential. Our optimistic outlook is predicated on our long-term confidence in China’s financial improvement, our steadfast dedication to our imaginative and prescient for the offline retail enterprise, and our dedication to realize a very world attain.” Mr. Ye continued.

Mr. Saiyin Zhang, Chief Monetary Officer and Govt Vice President of MINISO, commented, “Gross margin for the September quarter reached 35.7%, a file excessive for MINISO Group and a rise of greater than 800 foundation factors from 27.4% in the identical quarter of final 12 months, because of our strong execution of MINISO’s model improve, our sturdy bargaining energy and the regular restoration of abroad markets.”

“Trying ahead into the December quarter, we count on our abroad markets will proceed to develop strongly. In the meantime, our margin profile will enhance on a year-on-year foundation as we efficiently execute our model improve, see regular restoration within the abroad market, and break even on our directly-operated abroad enterprise. Our monetary technique will stay disciplined when it comes to budgeting, price controls, and allocation of capital, as we give attention to the constant supply of strong monetary performances.” Mr. Zhang concluded.

Current Developments 

Impression of COVID-19

The COVID-19 pandemic continued to affect the Firm’s operations and leads to the quarter ended September 30, 2022, primarily in China. 

Pandemic prevention and management measures remained in impact throughout China all through the quarter. Through the peak summer season gross sales season of July and August, when the pandemic scenario was comparatively steady, our GMV recovered to about 95% of the degrees from the identical interval of final 12 months. In September, pandemic outbreaks in main cities comparable to Shenzhen and Chengdu negatively impacted our GMV, which reached about 80% of the extent from September of final 12 months. Through the quarter, a mean of two%, 5% and seven% of shops had been unable to function as a result of pandemic in July, August and September, respectively. Excluding the affected shops, we estimate that common GMV per retailer from July to September had been about 85%, 90% and 80% of the degrees from the identical durations final 12 months, respectively. Going into the quarter ending December 31, 2022, the COVID scenario stays unsure, with regional outbreaks persevering with to affect our operations. To deal with this uncertainty, the Firm will depend on contingency planning to stay nimble and able to pivot with altering market situations. 

GMV of MINISO shops in abroad markets within the September quarter elevated by 41% 12 months over 12 months, and have recovered to greater than 95% of the extent in the identical quarter of 2019. With an increasing number of abroad markets having lifted their pandemic management measures, the Firm at present expects the gross sales restoration in abroad markets to proceed.

Unaudited Monetary Outcomes for the First Quarter of Fiscal 12 months 2023 ended September 30, 2022

Income was RMB2,772.4 million (US$389.7 million), representing a rise of 4.5% 12 months over 12 months, primarily pushed by a 47.6% year-over-year development of income from abroad markets, partially offset by a 8.8% year-over-year lower of income from China. 

Income from China was RMB1,852.3 million (US$260.4 million), in comparison with RMB2,030.8 million in the identical interval of 2021. The year-over-year lower was (i) primarily pushed by a lower in income from the MINISO model from RMB1,866.5 million to RMB1,700.4 million (US$239.0 million), because of the resurgence of COVID-19 in China within the September quarter, and (ii) partially offset by a year-over-year improve of 13.3% in income from the TOP TOY model. For extra data on the composition and year-over-year change of income, please discuss with the “Unaudited extra data” on this press launch.

Income from abroad markets was RMB920.2 million (US$129.4 million), accounting for 33.2% of our complete income and representing a rise of 47.6% year-over-year. The rise was primarily because of a year-over-year improve of 9.7% in common retailer rely and a year-over-year development of 34.6% in common income per MINISO retailer in abroad markets. 

Value of gross sales was RMB1,783.9 million (US$250.8 million), representing a lower of seven.4% 12 months over 12 months, primarily attributable to the financial savings measures we adopted to cut back the price of sure merchandise. 

Gross revenue was RMB988.6 million (US$139.0 million), representing a rise of 35.7% 12 months over 12 months. 

Gross margin was 35.7%, in comparison with 27.4% in the identical interval of 2021. The year-over-year improve was primarily attributable to (i) the rise in income contribution from worldwide operations, which generally have greater gross margin than home operations, from 23.5% in the identical interval of 2021 to 33.2% on this quarter, (ii) greater gross margin contributed by newly launched merchandise in relation to our execution of strategic model improve of MINISO in China, and (iii) the financial savings measures we adopted to cut back the price of sure merchandise.

Different earnings was RMB6.4 million (US$0.9 million), in comparison with RMB16.1 million in the identical interval of 2021. 

Promoting and distribution bills had been RMB381.3 million (US$53.6 million), representing a rise of 11.9% 12 months over 12 months. Excluding share-based compensation bills, promoting and distribution bills had been RMB372.6 million (US$52.4 million), representing a rise of 15.5% 12 months over 12 months. The year-over-year improve was primarily attributable to (i) elevated rental and associated bills, (ii) elevated personnel-related bills, and (iii) elevated licensing bills in relation to our enlarged IP product choices, partially offset by diminished promotion and promoting bills because of our deferred advertising actions in China to sort out the resurgence of COVID-19.

Common and administrative bills had been RMB167.6 million (US$23.6 million), representing a lower of 20.7% 12 months over 12 months. Excluding share-based compensation bills, common and administrative bills had been RMB163.2 million (US$22.9 million), representing a lower of 18.4% 12 months over 12 months. The year-over-year lower was primarily because of decreased personnel-related bills. 

Different internet earnings was RMB64.0 million (US$9.0 million), in comparison with RMB33.6 million in the identical interval of 2021. Different internet earnings primarily consists of internet international change acquire, funding earnings from wealth administration merchandise and others. The year-over-year improve was primarily attributable to a internet international change acquire of RMB52.3 million on this quarter, in comparison with RMB4.3 million in the identical interval of 2021, which was partially offset by a lower in funding earnings from wealth administration merchandise because of diminished principal of such merchandise. 

Working revenue was RMB509.5 million (US$71.6 million), representing a rise of 138.6% 12 months over 12 months. 

Revenue for the interval was RMB404.1 million (US$56.8 million), representing a rise of 161.5% 12 months over 12 months. 

Adjusted internet revenue⁽¹⁾, which represents revenue for the interval excluding equity-settled share-based cost bills, was RMB417.4 million (US$58.7  million), representing a rise of 126.6% 12 months over 12 months. 

Adjusted internet margin⁽¹⁾ was 15.1%, in comparison with 6.9% in the identical interval of 2021.

Fundamental and diluted earnings per American Depositary Share (“ADS”) had been RMB1.32 (US$0.19) on this quarter, in comparison with fundamental and diluted earnings per ADS of RMB0.50 in the identical interval of 2021. Every ADS represents 4 of the Firm’s bizarre shares.

Adjusted fundamental and diluted net earnings per ADS⁽¹⁾ had been each RMB1.36 (US$0.19) on this quarter, in comparison with RMB0.60 in the identical interval of 2021.

As of September 30, 2022, the mixed steadiness of the Firm’s money, money equivalents, restricted money, time period deposits, and different investments amounted to RMB6,007.2 million (US$844.5 million).

Convention Name 

The Firm’s administration will maintain an earnings convention name at 7:00 A.M. Jap Time on Monday, November 14, 2022 (8:00 P.M. Beijing Time on the identical day) to debate the monetary outcomes. The convention name may be accessed by way of the next zoom hyperlink or by dialing the next numbers:

Entry 1

Zoom hyperlink: https://dooyle.zoom.us/j/88478292986?pwd=RTVoazJkQytrWnl5R1FkOTBFdlkyUT09

Assembly Quantity: 884 7829 2986 

Assembly Passcode: 9896

Entry 2

Listeners could entry the decision by dialing the next numbers with the identical assembly quantity and passcode with Entry 1.

Entry 3

Listeners can even entry the assembly by the Firm’s investor relations web site at http://ir.miniso.com/.

A replay will likely be out there roughly two hours after the conclusion of the stay occasion on the Firm’s investor relations web site at http://ir.miniso.com/.

About MINISO Group

MINISO Group is a worldwide worth retailer providing quite a lot of design-led life-style merchandise. The Firm serves customers primarily by its massive community of MINISO shops, and promotes a soothing, treasure-hunting and interesting procuring expertise filled with pleasant surprises that appeals to all demographics. Aesthetically pleasing design, high quality and affordability are on the core of each product in MINISO’s huge product portfolio, and the Firm frequently and incessantly rolls out merchandise with these qualities. For the reason that opening of its first retailer in China in 2013, the Firm has constructed its flagship model “MINISO” as a globally acknowledged retail model and established an enormous retailer community worldwide. For extra data, please go to https://ir.miniso.com/.

Change Price

The U.S. greenback (US$) quantities disclosed on this press launch, aside from these transaction quantities that had been truly settled in U.S. {dollars}, are introduced solely for the comfort of the readers. The conversion of Renminbi (RMB) into US$ on this press launch is predicated on the change fee set forth within the H.10 statistical launch of the Board of Governors of the Federal Reserve System as of September 30, 2022, which was RMB7.1135 to US$1.0000. The chances acknowledged on this press launch are calculated primarily based on the RMB quantities.

Non-IFRS Monetary Measures

In evaluating the enterprise, MINISO considers and makes use of adjusted internet revenue, adjusted internet margin, adjusted fundamental and diluted internet earnings per share and adjusted fundamental and diluted internet earnings per ADS as supplemental measures to evaluate and assess its working efficiency. The presentation of those non-IFRS monetary measures isn’t supposed to be thought-about in isolation or as an alternative choice to the monetary data ready and introduced in accordance with IFRS. MINISO defines adjusted internet revenue as revenue for the interval excluding equity-settled share-based cost bills. MINISO calculates adjusted internet margin by dividing adjusted internet revenue by income for a similar interval. MINISO computes adjusted fundamental and diluted internet earnings per ADS by dividing the adjusted internet revenue attributable to the fairness shareholders of the Firm by the variety of ADSs represented by the variety of bizarre shares used within the fundamental and diluted earnings per share calculation on an IFRS foundation. MINISO computes adjusted fundamental and diluted internet earnings per share in the identical manner it calculates adjusted fundamental and diluted internet earnings per ADS, besides that it makes use of the variety of bizarre shares used within the fundamental and diluted earnings per share calculation on an IFRS foundation because the denominator as an alternative of the variety of ADSs represented by these bizarre shares.

MINISO presents these non-IFRS monetary measures as a result of they’re utilized by the administration to judge its working efficiency and formulate enterprise plans. These non-IFRS monetary measures allow the administration to evaluate its working outcomes with out contemplating the impacts of the aforementioned non-cash and different adjustment objects that MINISO doesn’t take into account to be indicative of its working efficiency sooner or later. Accordingly, MINISO believes that using these non-IFRS monetary measures gives helpful data to traders and others in understanding and evaluating its working leads to the identical method because the administration and board of administrators. 

These non-IFRS monetary measures will not be outlined beneath IFRS and will not be introduced in accordance with IFRS. These non-IFRS monetary measures have limitations as analytical instruments. One of many key limitations of utilizing these non-IFRS monetary measures is that they don’t mirror all objects of earnings and expense that have an effect on MINISO’s operations. Additional, these non-IFRS monetary measures could differ from the non-IFRS data utilized by different corporations, together with peer corporations, and subsequently their comparability could also be restricted. 

These non-IFRS monetary measures shouldn’t be thought-about in isolation or construed as options to revenue, internet revenue margin, fundamental and diluted earnings per share and fundamental and diluted earnings per ADS, as relevant, or some other measures of efficiency or as indicators of MINISO’s working efficiency. Traders are inspired to evaluate MINISO’s historic non-IFRS monetary measures in gentle of essentially the most straight comparable IFRS measures, as proven beneath. The non-IFRS monetary measures introduced right here might not be akin to equally titled measures introduced by different corporations. Different corporations could calculate equally titled measures in another way, limiting the usefulness of such measures when analyzing MINISO’s information comparatively. MINISO encourages you to evaluate its monetary data in its entirety and never depend on a single monetary measure. 

For extra data on the non-IFRS monetary measures, please see the desk captioned “Reconciliation of Non-IFRS Monetary Measures” set forth on the finish of this press launch.

Protected Harbor Assertion 

This announcement accommodates forward-looking statements. These statements are made beneath the “secure harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. These forward-looking statements may be recognized by phrases or phrases comparable to “could,” “will,” “count on,” “anticipate,” “intention,” “estimate,” “intend,” “plan,” “imagine,” “is/are more likely to,” “potential,” “proceed” or different related expressions. Amongst different issues, the quotations from administration on this announcement, in addition to MINISO’s strategic and operational plans, comprise forward-looking statements. MINISO may make written or oral forward-looking statements in its periodic experiences to the U.S. Securities and Change Fee (the “SEC”) and The Inventory Change of Hong Kong Restricted (the “HKEX”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to 3rd events. Statements that aren’t historic details, together with statements about MINISO’s beliefs and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. Quite a few elements may trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: MINISO’s mission, objectives and techniques; future enterprise improvement, monetary situations and outcomes of operations; the anticipated development of the retail market and the market of branded selection retail of life-style merchandise in China and globally; expectations concerning demand for and market acceptance of MINISO’s merchandise; expectations concerning MINISO’s relationships with customers, suppliers, MINISO Retail Companions, native distributors, and different enterprise companions; competitors within the business; proposed use of proceeds; and related authorities insurance policies and rules referring to MINISO’s enterprise and the business. Additional data concerning these and different dangers is included in MINISO’s filings with the SEC and the HKEX. All data supplied on this press launch and within the attachments is as of the date of this press launch, and MINISO undertakes no obligation to replace any forward-looking assertion, besides as required beneath relevant legislation. 

Investor Relations Contact: 

Raine Hu
MINISO Group Holding Restricted
E-mail: [email protected] 
Telephone: +86 (20) 36228788 Ext.8039

Eric Yuan
Christensen Advisory
E-mail: [email protected]
Telephone: +86 1380 111 0739

SOURCE MINISO Group Holding Restricted