MINISO (MNSO) Q4 2025 Earnings Call Transcript

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DATE

Tuesday, March 31, 2026 at 5 a.m. ET

CALL PARTICIPANTS

• Chairman & Chief Executive Officer — Guofu Ye
• Chief Financial Officer — Eason Zhang

TAKEAWAYS

• Revenue -- RMB 6.25 billion for Q4, a 32% increase; first time exceeding the RMB 6 billion mark.
• MINISO Brand Revenue -- RMB 5.65 billion in Q4, up 28%; fastest growth rate in nearly eight quarters.
• TOPTOY Revenue -- RMB 600 million in Q4, up 112% year over year, showing triple-digit acceleration.
• Overseas Revenue -- RMB 2.78 billion in Q4, up 31%, reaching a record high; now accounts for 50% of core brand revenue.
• China Revenue -- RMB 2.87 billion in Q4 for the MINISO brand, up 25%, representing 51% of the core brand total.
• Same-Store Sales (SSS) -- Domestic Q4 SSS grew by mid-teens; U.S. Q4 SSS grew by over 20%.
• Full-Year Revenue -- RMB 21.44 billion, a 26.2% increase; Mainland China revenue exceeded RMB 10 billion for the first time, growing by about 70%.
• Net New Stores -- Total store count approached 8,500; Mainland China net adds: 182 stores; overseas: 465; TOPTOY: 58 global, with 30 international stores opened in one year.
• Large-Format ("MINISO Land") Stores -- 26 domestic locations across 90 cities; these accounted for 10% of China's store base but contributed nearly 20% of domestic gross merchandise value (GMV).
• Gross Profit Margin -- Q4 GP margin was 46.4% versus 47% a year ago; full-year GP margin stable at 45%.
• Operating Expenses -- Q4 operating expenses rose 45.3%; sales expense up 47.4%; administrative cost up 36.3%; licensing fees up 107% to 3% of revenue; advertising/marketing up 30%, flat as a percentage of revenue.
• Adjusted Operating Profit -- Q4 adjusted operating profit up 12%; margin 17%; full-year adjusted operating profit RMB 670 million.
• Adjusted Net Profit -- Q4 adjusted net profit up 7.6% to RMB 850 million; adjusted diluted EPS up 9.4% in Q4.
• Inventory Turnover -- Group average: 100 days (vs. 91 last year); China: 74 days; international: 228 days, reflecting strategic inventory build for tariff policy.
• Dividend and Shareholder Returns -- Final dividend of RMB 810 million (50% of 2H 2025 adjusted net profit); total returns to shareholders RMB 1.9 billion, equaling about 66% of full-year adjusted net profit.
• 2026 Guidance -- Group revenue expected to grow at high-teens percentage; net new stores: 510-550; same-store sales in China guided to maintain high single-digit growth, North America mid- to high-double-digit growth in H2; major profit recovery expected in H2.
• AI Investment Impact -- A one-time fair value gain from MiniMax investment to yield an extra RMB 850-900 million in Q1 profit but excluded from adjusted results.
• Proprietary IP Success -- "Youyou" proprietary IP reached over RMB 100 million in less than six months; estimated to surpass RMB 1 billion globally by end of 2026 with expansions and co-branding.
• Store Renovation Effect -- 290 stores renovated in 2025; average sales uplift per renovated store was 40%-50%; rent as a percentage of sales declined; staff productivity, sales per square meter, and single-store profitability increased.

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RISKS

• Group gross profit margin declined by 60 basis points sequentially due to higher direct-operated cost ratio, increased licensing fees, and mix shift; margin compression primarily from overseas markets.
• Inventory turnover in international operations increased to 228 days, indicating higher working capital requirements and exposure to demand or supply volatility.
• Significant Q4 and full-year non-cash charges, including RMB 1.84 billion net loss from YH, elevated share-based compensation, and sizable fair value changes, impacted bottom-line GAAP profitability.

SUMMARY

Management highlighted a shift to higher-quality, productivity-driven growth, with record revenue milestones achieved despite a material reduction in net new store openings. The expanded proprietary IP portfolio—led by Youyou and landmark MINISO Land stores—drove engagement, brand equity, and GMV outperformance, especially in China and the United States. Overseas businesses, particularly in North America, are transitioning from investment to profitability phases, evidenced by strong same-store growth and higher member-driven sales. High dividend payout, increased share repurchases, and full transparency on extraordinary investment gains reinforced the company’s focus on cash flow discipline and shareholder return. Guidance indicates further acceleration in revenue and profit, with a strategic emphasis on immersive retail, proprietary IP incubation, and rapid international expansion into high-potential markets including Mexico and Southeast Asia.

• Guofu Ye said, "prime offline experience combined with top-tier IP content is the golden formula for unlocking global consumer demand and maximizing IP value."
• Management disclosed that "Member-driven sales exceeded 50% of total revenue for the first time." in the U.S, highlighting successful loyalty initiatives.
• The board’s final dividend represents "50% of second-half 2025 adjusted net profit," with payout expected in April.
• Renovated stores saw staff productivity and average sales per square meter increase substantially following format upgrades and location shifts.

INDUSTRY GLOSSARY

• MINISO Land: Large-format, experience-driven retail stores integrating immersive merchandising, flagship IP launches, and enhanced brand experiences, distinct from standard store formats.
• TOPTOY: MINISO subsidiary brand specializing in collectible toys, blind boxes, and designer figures, with a proprietary and third-party IP portfolio.
• Proprietary IP: Intellectual property owned, developed, and commercialized by the company, providing unique product categories and higher margin potential compared to licensed IPs.
• GMV (Gross Merchandise Value): Total value of merchandise sold through the company’s retail network during a reporting period, regardless of revenue recognition method.

Full Conference Call Transcript

Guofu Ye: Good day, everyone. Welcome to MINISO Group Holding Limited’s 2025 December quarter and full year earnings presentation. 2025 was a year of steady growth and continued breakthroughs for the group. Throughout the year, revenue growth followed a strong and constantly accelerating trajectory, rising from 80.9% year-over-year in Q1 to 32% in Q4, surpassing the upper end of our prior guidance and also reaching RMB 6.25 billion in quarterly revenue, marking the first time we have crossed the RMB 6 billion quarterly revenue milestone. Looking at our core brands in detail, MINISO brand recorded its fastest growth rate in nearly eight quarters in Q4 with revenue up by 28%, reaching RMB 5.65 billion.

Meanwhile, TOPTOY delivered exceptional momentum, posting 112% year-over-year growth in Q4, with quarterly revenue approaching RMB 600 million, demonstrating the powerful dynamics of our multi-brand portfolio. This year, we achieved higher revenue growth with fewer net new store openings than 2025, with a greater share of the growth driven by same-store sales, reflecting a more efficient and higher-quality growth model, reaffirming the resilience and the long-term growth potential of our multi-IP plus multi-category and globalization business model.

Today, against the backdrop of the group's full-year operating performance, I will share with you the significant progress that we made in the past year regarding meaningful strategy, particularly focused on the breakthrough in brand innovation and store experience enhancement. First, let us take a look at MINISO China. In the fourth quarter, the MINISO brand generated revenue of RMB 5,650,000,000. Mainland China contributed RMB 2,870,000,000, growing by 25%, representing 51% of the total. MINISO’s overseas revenue reached RMB 2,780,000,000, up by 31%, accounting for 50% of the total, reflecting robust, balanced growth driven by both domestic and international operations.

Let us first talk about strategic initiatives in MINISO Mainland China business. In Q4, MINISO domestic same-store sales grew by mid-teens, a record high for the year, with average daily sales per store surpassing the level achieved in 2023. Given 2023 was largely driven by a surge in post-pandemic pent-up demand, MINISO’s ability to exceed those peak levels demonstrates structural improvement rather than cyclical tailwinds. We have every confidence that, assuming a more supportive macro environment and a gradual recovery in consumer sentiment in 2026, with our stronger brand equity, superior store positioning, more agile supply chain, and competitive standing, we will be able to outperform the industry by a wide margin, capturing more share in the market.

By the end of Q4, our domestic franchisee count reached 1,157, a historical high. Franchisees vote with their support. That is the most authentic market signal, and they partnered with us because they have witnessed firsthand the traffic momentum and the financial patterns of our large-format stores. The trust has been earned store by store, IP activation by IP activation. It is something that we hold in the highest regard.

At our 2024 Investor Day, we articulated our vision to make MINISO the go-to happy destination for international consumers worldwide. Today, the vision has been realized, one MINISO Land store at a time. By the end of 2025, we had already opened 26 MINISO Land format stores in Mainland China, securing prime locations in tier-one cities like Beijing, Shanghai, Guangzhou, and Shenzhen, and also distinctive retail destinations in Haikou and Guiyang. In January, the MINISO Land opening in Grandview Mall in Guangzhou attracted nearly 10,000 visitors on its opening day, generating RMB 450,000 in sales, a new record for the South China region. Equally impressive is the MINISO Land flagship opening in lower-tier cities in Urumqi and Nantong.

The Nantong store soft opening drove 80% year-over-year growth in overall mall foot traffic. Urumqi’s store, featuring a three-story impressive space and a portfolio of 100 IP collaborations, quickly established itself as a regional premier destination.

Such high-quality experience stores are, at their core, the engine for IP operations. Through authentic spatial design and curated product presentation, mature consumer and sensory, perceivable and tangible experiences bring IP value to life. They can also help us continue to improve our brand IP ecosystem. MINISO Land stores combined with robust IP activations have become the go-to platform for creating citywide mainstream brand momentum. Tens of thousands of consumers share their experiences on Xiaohongshu, Douyin, and WeChat Moments. That is the reason I always tell you our physical stores are MINISO’s most powerful brand billboards and our most enduring source of consumer traffic.

MINISO is not the first brand to pursue a large-format store trajectory. But why can others not follow? The answer comes down to just one thing: a successful large-format store must be built on the conditions of owning proprietary product development capacity. Without in-house design and R&D capacity, a large-format store is nothing but an empty shell. Behind that, we have more than one decade of supply chain deployment, a network of more than 1,500 global suppliers, and a design team of over 1,000 professionals. In this process, no one will be able to copy the successful story unless they build the core capacities.

MINISO moved even further ahead. In support of our MINISO Land strategy, we established a seven-tier store format mix in 2024 and continued to refine and evolve it through 2025. Our goal is to ensure every city, every trade area, and every consumption scenario will be served by the MINISO format precisely. In the past, I mentioned the intention to systematically upgrade our store portfolio. I also would like to share with you the reason behind such initiative: why every new store we open must be a large-format, high-quality MINISO Land format store. If we look at our journey, we navigated two distinctive strategic phases: first, rapid global store expansion to build scale; followed by strategic IP positioning, transitioning ourselves from a value-priced variety store into an interest-driven consumption destination. We achieved milestones in both phases. Now we move into the third phase, an immersive retail transformation centered on MINISO Land. It is not only about increasing store size; it is the integration of the store capacities built across the first two phases.

Leveraging larger space, creating immersive environments, forging genuine emotional connections, and driving repeated visitors, we are transforming from selling products to selling experiences, from a traffic-driven business to a loyalty-driven, consumer-centered one. People never lack good products. They are truly seeking compelling destinations, memorable experiences, and moments. With our IP-driven formats and designs precisely meeting those needs, we can inspire consumers to share and continue to come back to generate purchase.

Regarding international markets, our overseas revenue approached RMB 2,800,000,000 in Q4, an all-time high, representing 31% year-over-year growth. Our overseas store net adds were 159 stores, bringing a full-year net increase of 465 stores. Our largest overseas market, the United States, delivered a full-year growth of more than 60% and in Q4, same-store growth was more than 20%, ahead of our prior expectations. At our Q1 2024 earnings call, I stated improving store operating quality in North America was our corporate priority in 2025. A year on, MINISO U.S. business delivered comprehensive improvements in store quality, operational efficiency, and consumer engagement. For stores, new store quality was further improved.

New stores in 2025 have all-time high growth by double-digit numbers; average transaction value and transaction volume are improving, driving meaningfully higher unit-level profitability and conversion rates. At the same time, our mature stores demonstrated strong operating rigor. Leveraging a refined same-store performance tracking model, we established stores to deliver revenue growth in both average daily sales and transactions, improving alongside gains in foot traffic and purchase frequency, especially for our Plaza store format. We opened 48 Plaza locations in 2025. They generate higher attachment rates and average transaction value. The average ASP outperformed most of our estate, establishing a more flexible and economically resilient new store expansion channel.

Operationally speaking, we have crossed the base expansion strategy, improving logistics efficiencies and warehouse cost. Employee retention improved, revenue per headcount increased, and labor cost as a percentage of sales declined, achieving a dual optimization on cost and productivity. On the consumer side, membership in the U.S. market grew by 150% year-over-year. Member-driven sales exceeded 50% of total revenue for the first time. Together, those results mark the U.S. market’s transition from a new investment phase into a phase of high-quality, profitable growth, becoming our most resilient and dynamic engine for global expansion. This actually gives us greater confidence for our global rollout strategy.

The operational challenges we encounter in other markets were also encountered and navigated in both China and the U.S. We are going to leverage our experience from China and the U.S. to continue unlocking profit potential for international operations.

Thirdly, let me talk about TOPTOY. TOPTOY sustained its strong compound growth momentum in Q4 with revenue up 112%, reaching nearly RMB 600,000,000 in Q4. In terms of store footprint, by the end of 2025, TOPTOY operated a total of 334 stores, including 30 international stores in Thailand, Malaysia, Indonesia, and Japan. Brand global expansion continued to accelerate. Domestically speaking, TOPTOY’s growth strategy is centered on a high frequency of proprietary product launches to drive same-store sales. The proprietary IP, Youyou, rapidly gained momentum with sales of more than RMB 200,000,000 and is likely to double in 2026. By 2025, TOPTOY has built a proprietary IP portfolio of more than 20 brands.

In 2020, I first introduced interest-driven consumption. The consumer’s core needs are rapidly shifting from pure functional value to emotional and experiential value, which has been fully validated by the market. MINISO stands as one of the most significant beneficiaries and pioneers of this consumption transformation. With our immersive experience and multi-category proprietary development capacity, those are our key and hardest-to-replace competitive moats in the IP-driven consumption era. Our strategic vision is to become the world’s leading IP-driven retail platform. My strategy has been ever clearer. Along the way, we have demonstrated the execution of our strategic development is right. We also witnessed firsthand the genuine and sustainable enthusiasm we have from consumers.

For the past year, we delivered strong results in both China and the U.S. The road ahead is strong, but with each step forward, our conviction and confidence only deepen. That is all for my remarks. I will now turn the call over to Eason to walk you through the financial highlights for Q4 and full year. Thank you.

Eason Zhang: Thank you. Thanks to Mr. Ye. Welcome, you all. Coming next, let me walk you through MINISO Group Holding Limited’s financial results for Q4 and full year 2025. I will also provide you the outlook. I should also say that all the units would be RMB unless otherwise stated.

Let me start by reviewing financial performance for Q4 and full year. In Q4, revenue grew by 32.7%, surpassing the upper end of our prior guidance of 20% to 30%, driven by the outperformance across all business segments. MINISO Chinese Mainland Q4 revenue grew by 25%, exceeding our prior guidance of high-teens growth. MINISO’s overseas Q4 revenue grew by close to 31% year-over-year, ahead of our guidance of low- to high-20s percentage growth. TOPTOY Q4 revenue grew by 112%, above our guidance of 80% to 90% growth. Q4 momentum lifted full-year group revenue growth by 26.2%, exceeding our prior full-year guidance of approximately 25% in the interim result. In Q4, MINISO Chinese Mainland net and same-store sales growth reached mid-teens.

U.S. same-store sales exceeded 20%, both surpassing our prior Q4 guidance of lower double-digit same-store growth. Both markets delivered high single-digit same-store sales growth for the full year, in line with our formal guidance but ahead of the internal expectations we had when we provided the guidance back in November. Adjusted operating profit rose by 12% in Q4, in line with our prior guidance of double-digit growth. Full-year adjusted operating profit reached RMB 670,000,000, aligned with our guidance. In Q4, our adjusted operating profit margin was 17%. Especially in 2025, we have already narrowed down the margin compression.

Let us take a look at revenue. We have already created three revenue milestones in this quarter. First of all, single-quarter GMV exceeded RMB 10 billion for the first time. Quarterly revenue surpassed RMB 6,000,000,000 for the first time, and full-year revenue crossed RMB 20,000,000,000 for the first time, benefiting from outstanding performance across all of our business lines and over expectations. By brand, MINISO generated Q4 revenue of RMB 5,650,000,000, a 27.7% increase. MINISO China continued to demonstrate great growth. In Q4, its average growth is the highest for the past eight consecutive quarters. MINISO overseas revenue was RMB 2,780,000,000, up by 30.5%.

TOPTOY revenue was RMB 600,000,000, up by 112%, also having a triple-digit year-over-year growth with very strong momentum that exceeded our expectations.

Turning to the full year, group revenue reached RMB 21.44 billion in 2025. A few highlights I would like to share with you: MINISO Mainland China full-year revenue crossed the RMB 10,000,000,000 milestone for the first time. In such a consumption background, it grew by around 70%. Overseas full-year revenue was RMB 6.86 billion, up by close to 30%. TOPTOY full-year revenue was RMB 1.9 billion, maintaining very strong growth. In terms of geographic revenue mix, Mainland China revenue grew by 22%, accounting for 60% of total revenue. Overseas revenue grew by 33%, representing 40% of total revenue.

Let us take a look at the same-store sales performance. MINISO Mainland China Q4 same-store sales continued sequential acceleration reaching mid-teens, beyond our expectation. Looking back to the full-year trajectory of MINISO China same-store sales: from a negative mid-single digit in Q1 to positive low single digit in Q2, to high single digit in Q3, and finally mid-teens in Q4. Sequential progression delivered mid-single-digit same-store growth for the full year, already exceeding our initial target in 2025. As I have already shared with you, delivering the improvement in domestic same-store sales required many hard efforts. In terms of internal management, same-store performance has been built into KPIs. We also have the digital infrastructure making the business flow more digital and intelligent to improve one-team empowerment. Operationally, we improved store SOPs with supply chain optimization, ensuring sustained contribution from top-selling SKUs and minimizing potential sales losses. The product development efficiency has been further improved.

We actually have more contribution from new SKUs and speed-to-shelf of new product launches. Lastly, inventory was kept healthy.

Regarding operations, we are also working on three fronts including consumer, product, and channel. For consumers, we improved in-store conversion. Our extensive store network serves as a large-scale testing ground and rich data pool. By deploying additional foot-traffic counters, we are able to capture high-frequency store-level data that help to further optimize our store and operations. We also have diversified marketing activations. For example, this year, we have the One-Day Store Manager program on RED, outdoor street pop-ups, as well as in-store meet-and-greet signing events and celebrity store visits, which became viral moments on social media, driving organic brand amplification through fan engagement. Regarding product, let me give you two points.

We capitalize on seasonal and holiday product trends while at the same time managing IP and non-IP merchandise with profound understanding. We leverage the traffic-driving power of IP products to generate attachment purchases and lead the basket contribution of non-IP items. Regarding channel, we improved our existing store portfolio. We upgraded and improved 300 stores with tangible results.

Regarding MINISO overseas, same-store sales performance differs from region to region. First of all, in Asia and in Latin America, same-store performance lagged behind other international markets. However, our strategic direct-operated markets, the United States and Europe, delivered very good results. Especially our key strategic direct-operated market, the U.S., delivered low-20s percentage same-store growth in Q4, supporting our previous guidance. We are driven by a strong end market and continued polish of our stores. You can also see healthy improvement of same-store profit margins. Through disciplined dollar-driven site selection and cost-based store opening approaches, U.S. back-end overhead costs declined by low single digits, providing further tailwinds to U.S. business profitability.

It is also worth noting that in 2025, the U.S. business faced meaningful tariff headwinds. Against a backdrop of significant macroeconomic uncertainties, our team responded with exceptional foresight, sharp market insights, and agile execution, and still delivered standout results. Such results validate our robust business model. Such strength in and out is actually the foundation for our confidence to navigate economic cycles. Where the domestic market, as our strategic home base, delivered sequentially accelerating positive same-store sales growth in a highly competitive market, which demonstrates our strategic model and exceptional execution capacity of the team, creating a favorable spot for further growth. In 2026, successful stories and playbooks from China and the United States will be exported to Southeast Asia.

With respect to the challenges in Southeast Asia, we believe the headwinds already met the bottom, and in 2026, through comprehensive upgrades of our channel strategy, product assortment, and organizational structure in Thailand and beyond, we will be able to continue to improve the business in Southeast Asia.

Regarding stores, total store count approached 8,500 by the end of 2025. In Mainland China, the net adds were 182 stores compared with 460 in 2024. Recall, MINISO Mainland China revenue growth was around 10% in 2024; however, in 2025, it was close to 70%. In other words, with a clear indication that we have transitioned toward a higher-quality and more-productive growth model with fewer net new stores. MINISO overseas net adds were 465, bringing the year-end total to 3,583. TOPTOY net adds were 58 stores. TOPTOY started global expansion in 2024; within one year, we have 30 stores internationally, present in Malaysia, Indonesia, Thailand, Japan, and Macau.

By the end of 2025, our domestic MINISO Land format store portfolio included 26 destinations across 90 cities nationwide. The large-format and flagship stores collectively accounted for 10% of our domestic store count, yet contributed nearly 20% of our domestic GMV. This number will continue to ramp up, which helps validate that big stores drive speed, results, and margin. In 2026, we will accelerate the release of this momentum. You will see locations including SDF in Sanya, David City in Zhengzhou, and Grand Gateway Plaza in Shanghai continue to come online.

In 2025, we opened our first overseas MINISO Land at Samyan Mitrtown in Thailand with very strong market reception, which helps us understand the substantial potential of our overseas formats. In 2026, we will continue to bring the immersive brand experience to more retail destinations across the world. For our overseas directly operated markets led by the United States, we plan to have strategic new openings before Q4, so that Q4 will be fully concentrated on in-store operational excellence and experience optimization. When the peak shopping season arrives, we will be able to fully maximize the growth momentum.

Regarding gross profit margin, it was 46.4% compared with 47% in the same period last year. For 2025, the GP margin was 45%, flat. For the past five years, our GP margin jumped from 28% to 45%, driven by our brand innovation, globalization, and IP strategy. During the year, we made selective gross margin adjustments across product categories, which enabled better sales performance and overall increases in GP margin. In the near future, we are going to continue to manage the balance between margin rate and sales volume, maintaining healthy, high-quality growth.

Regarding operating expenses, operating expenses in Q4 grew by 45.3%. Sales expense grew by 47.4%, 3% higher than the same period last year. Administrative expense grew by 36.3%, accounting for 5% of revenue, flat with last year. The increase in sales expense was attributable to the growth in direct-operated store costs, licensing fees, and advertising and marketing expenses. First of all, our international expansion is still in the early stage. Direct-operated stores need rent and manpower, which was 1 percentage point higher than the previous year, accounting for 40% of total revenue, with the total cost growth at 40%. However, it is already a deceleration from the 54.5% growth rate in the first nine months of 2025.

Secondly, license fees grew by 107% year-over-year, accounting for 3% of revenue, up by 1 percentage point compared with 2024. This also reflects our proactive upfront investment in IP strategy. Thirdly, advertising and marketing expense grew by 30%, slightly below the rate of revenue growth in Q4, with the ratio to revenue remaining flat compared with 2024. The increase in A&M then led to adjusted operating flow. Q4 adjusted operating profit grew by 7.7% and adjusted operating profit margin reached 17%.

For the full year, adjusted operating profit, no matter on an M/M or Y/Y basis, continued to be well managed. From the P&L perspective in Q4, GP margin declined by 60 basis points because Q4 2024 was our highest GP margin quarter on record, and also direct-operated store cost ratio increased by 1 percentage point, licensing fee ratio increased by 1 percentage point, with a further contribution from miscellaneous items of a few tens of basis points, resulting in a total adjusted operating margin impact of 3 percentage points.

For the full year, GP margin was flat versus 2024, mainly due to the direct-operated store ratio increasing by 2 percentage points, licensing and other fees increasing by 1 percentage point, resulting in a 3 percentage point impact. At the same time, you can also see that in Mainland China, from the business unit perspective, the China franchise business saw a margin decline by only basis points against a backdrop of approximately 70% revenue growth, reflecting our conservative approach for gross margin in exchange for healthy volume. At the same time, the growth was also contributed by our super warehouse and e-commerce operation, with a modest dilutive effect on margin.

The group-level margin decline was primarily attributable to compression in overseas margin. For example, direct-operated store revenue as a proportion of total gross overseas revenue increased from one-third in 2024 to more than half in 2025. Outside of North America, other directly operated markets remain in the early investment phase and carry lower margins. By contrast, our overseas agent and franchise revenue, which carry higher margins, grew at a relatively slower pace.

In our financial statements, we also have some non-IFRS adjustments. There are five points. First, share-based compensation (SBC) was RMB 150,000,000 in Q4 and RMB 370,000,000 for full year 2025, which used to be RMB 85,000,000 in 2024. The increase was mainly because of the equity incentive plan we made for the team. The second is the loss from the derivative fair value changes and the CB issuance cost. The third is the interest expense on CB and the YH investment-related loans. In Q4, convertible bonds interest expense was RMB 51,000,000, of which RMB 47,000,000 are non-cash. Interest expense on the acquisition loan related to YH was RMB 24,000,000.

In 2025 full year, the convertible bonds interest expense was RMB 190,000,000, among which RMB 170,000,000 were non-cash interest; on the YH acquisition loan it was RMB 867,000,000. The fourth point is share of YH post-tax loss. In Q4, YH’s net loss was RMB 1,840,000,000. Fifth, we also had fair value changes of the redemption liability arising from preferred shares. The change was related to RMB 150,000,000 to RMB 160,000,000, related to the strategic financing completed last year. In aggregate, the adjustments impacted approximately RMB 900,000,000 in Q4 and RMB 1,690,000,000 for the full year to arrive at adjusted net profit. Excluding the items discussed above, the adjusted effective tax rate was 20.2% for Q4 and 20.1% for full year.

Q4 adjusted net profit grew 7.6%, reaching RMB 850,000,000. However, as a result of our active share repurchase and consolidation program, our adjusted EPS grew slightly faster. The adjusted diluted EPS in Q4 grew by 9.4%; full-year reached 7.8%.

Regarding working capital, by the end of 2025, inventory turnover was 100 days versus 91 days in the same period last year. In Mainland China, inventory turnover was 74 days. Internationally, inventory turnover was 228 days. The increase in overseas inventory days reflects strategic inventory built ahead of the anticipated tariff impact, booking the cost at favorable levels. We also established local direct sourcing that can help finance inventory pressure and ensure continued new product replenishment. In the near future, we will also adjust our overseas inventory and overall efficiency. By the end of 2025, our cash reserve was RMB 7.1 billion, remaining healthy.

In 2025, full-year net cash generated from operating activities was RMB 2,580,000,000, accounting for 90% of full-year adjusted net profit, a reflection of our business’s high earnings quality and strong cash generation.

On capital allocation, we will maintain our commitment to rapid business growth. In 2025, we obtained a waiver from the Hong Kong Stock Exchange to repurchase up to RMB 1,800,000,000. We continued repurchases to showcase our commitment and confidence. Looking at 2025 full year, returns to shareholders accounted for RMB 1,900,000,000, about 66% of full-year adjusted net profit, including RMB 540,000,000 in share repurchases and RMB 1.36 billion in dividends. The Board has announced a final dividend of RMB 810,000,000, representing 50% of second-half 2025 adjusted net profit, which is expected to be paid in April.

Last but not least, closing remarks and outlook. Looking back at our financial performance over the past five years from 2021 to 2025, revenue CAGR reached 21% and adjusted net profit CAGR reached 44%. Looking to 2026, we expect group revenue will have a high-teens growth rate; three-year CAGR from 2023 to 2026 would be no less than 22%. We expect same-store sales to continue to ramp up. In 2026, same-store sales in key markets like China and North America will maintain healthy low single-digit growth. We plan to have net new store adds of 510 to 550 for the full year, sticking to quality rather than quantity.

In 2026, we will balance growth and efficiency, pursuing profitable growth and profit backed by strong cash flow. We expect both adjusted operating profit and adjusted net profit will accelerate their growth rates in 2026. In terms of seasonality, the peak rate season for offline retail in North America and Europe is in the second half of the year. For many Western offline brands, 60% to 70% of annual revenue is generated in H2. Our direct-operated revenue from North America and Europe will continue to grow. Around 60% of the revenue is expected to come from H2, and H1 to account for 40% of total contribution. In 2026, revenue growth will be no less than 25%.

China same-store sales will maintain high single-digit growth. North America same-store will deliver strong mid- to high-double-digit growth. It is worth noting Q1 profit will include a significant investment gain from specific investments. It was generated from a test investment we made a few years ago. The company is quite positive on AI. We invested in an AI company. That company has been IPO-ed. The company’s share price appreciated, generating a substantial fair value gain, bringing us an extra RMB 850,000,000 to RMB 900,000,000. It is worth noting that such gains will not showcase our primary business. We plan to exclude this item from adjusted operating profit and adjusted net profit. That is all for our prepared remarks.

We will now open for questions.

Operator: Ladies and gentlemen, please change your Zoom display name to include your institution name. In order to accommodate more analysts and investors, please raise no more than two questions each time. Thank you. First, let us welcome Michelle from Goldman Sachs, please.

Michelle (Goldman Sachs): Hello? Mr. Ye and Eason, thanks for giving me the chance to raise a question. Congratulations on the company achieving such nice growth in a volatile market. I have two questions. First, regarding the domestic market: last year, we drove solid same-store sales growth through refined store operations, stronger faster sales execution, and store network upgrades. Looking ahead to 2026, as Eason has already provided guidance, is it possible for you to be more elaborate on the key levers to drive further same-store sales improvement? The second question is regarding the U.S. market. We do notice the sales were looking right in the United States market. However, localized sourcing would somewhat pressure your GP margin.

What are your priorities for merchandise supply chain and store expansion this year? What is the expected impact on margin improvement? That is the two questions I have. Thank you.

Guofu Ye: Thank you. Our core levers for driving domestic same-store sales in 2026 are clear. There are three: the right IP, for example the Jennie co-branded product, which can help to further consolidate our revenue and brand impact; the second one is the right product; the third one is the right experience. Regarding the right product, we attach equal importance to product quality and ASP, and we also open large stores to provide full customer experience. You can also see that the Jennie collaboration was first launched exclusively at MINISO Land and select pop-up locations, creating a fully immersive IP experience.

The limited-time pop-up at Hong Kong Plaza in Shanghai generated RMB 2,200,000 in sales on the opening day, setting a new single-day record for any MINISO in 2025. This not only validates the extraordinary power of our Land format store as a primary destination for IP launches, it also demonstrates a fundamental truth: prime offline experience combined with top-tier IP content is the golden formula for unlocking global consumer demand and maximizing IP value. As many of you may know, Hong Kong Plaza is a top shopping mall, which is quite influential, and all these stores and brands are super luxury brands. We were able to move into such department stores to launch our IP product.

This represents recognition from the top shopping malls and recognition from top, valuable consumers. At the same time, breakout IP products expand our customer reach beyond existing audiences, elevating average transaction value and strengthening repeat purchase behavior. Together with our store operations, they form a powerful virtuous circle. Enhanced store formats provide superior showcases and a vibrant environment for IP, while IP products, in turn, provide targeted and highly loyal customer bases, jointly driving sustained high-quality same-store sales growth.

For us, IP business is never purely about selling product. We have sought to leverage MINISO’s global supply chain capacity, category development, equity, and omnichannel reach to give every great IP and every talented creator a bigger stage, and to build more enduring IPs that stand the test of time and earn long-term consumer affection. The Jennie collaboration is a new area we are tapping into, working with internationally well-known celebrities. In the past we had image IP and content co-IP; however, the collaboration with Jennie showcases a new co-branded IP with CDPR release, which provides ample room for future cooperation. You see that for one of our peers, they had a collaboration with Lisa which brought extraordinary global value.

Working with celebrities, we will be able to continue to improve and maximize IP value. They are all world top artists and KOLs. At the same time, I would also like to share with you, based upon our latest operating data, we expect domestic same-store sales growth in Q1 will be quite aggressive. In 2026, we hope that we will deliver more surprises. We hope more investors will keep a look at that and our working with more celebrities in the near future.

The second question you asked about is product and IP strategy. We will continue to deepen our dual-engine approach of top-tier IP collaboration plus local market adaptation. On one side, we will intensify our partnership with leading global IPs. On the other side, we will further expand our assortment in high-margin categories like home goods, plush, and blind box. Just now you mentioned the U.S. market. In terms of local direct sourcing, we will optimize our SKU architecture to focus on high-velocity and high-margin items, achieving a better balance between scale expansion and GP margin. I just traveled back from the United States.

In 2026, we are going to have a more precise analysis on what products need to be sourced locally, and what need to be shipped from China. Sometimes sourcing from China represents higher margin. In 2025, due to volatile tariff policy, we actually already left some room for local sourcing. However, in 2026, we believe tariff turmoil has already gone. We will be more certain and clear on what will be exported from China to the U.S. and what will have localized sourcing. Regarding margin, let me be frank. At the procurement and headquarters sourcing level, we need to further improve our efficiency, optimize the merchandise mix, and then improve the GP margin structure as a whole.

Our target is to further improve operating margin in 2026, with a more pronounced recovery expected in H2 of the year. We provide a six-month buffer in H1 of this year. We believe H2 of 2026 will be great, including our Land store format. Internally, we keep a look at increasing ASP and also the price per item. We are working very hard to further improve ASP as well as per-product GP margin. Thank you.

Operator: Thanks to Mr. Ye. Coming next, let us welcome Samuel from UBS. The floor is yours, Samuel.

Samuel (UBS): Thank you. Thanks for giving me the chance to raise a question. I am Samuel from UBS. I have a few small questions. First, Mr. Ye, in your prepared remarks, you mentioned something regarding IP. I would like to ask you regarding your proprietary IP. What is the progress on proprietary IP? What are the sales targets and the strategic plan for 2026? What are the key third-party IP priorities? Anything you can share with us? My second question is regarding overseas markets, specifically the Mexico market. In 2025, Mexico faced headwinds. What is the outlook for 2026? My final question, I would also like to ask Eason. You mentioned you invested in an AI company.

Can you disclose the name of that company? Thank you.

Guofu Ye: Three good questions. Let me respond to the first one. First of all, let me talk about our IP, starting with Youyou. With less than six months of its launch in 2025, Youyou has already surpassed revenue of more than RMB 100,000,000. From January to March 2026, Youyou-related sales were already RMB 165,000,000, around RMB 50,000,000 per month. According to this trend, in 2026, for Youyou only, our sales will be RMB 600,000,000. If we also combine the international market, it is going to be RMB 800,000,000 or even RMB 1,000,000,000, likely to hit the RMB 1,000,000,000 revenue milestone. The revenue was beyond our expectation. Youyou is actually a Chinese proprietary IP.

If you take a look at our IP portfolio, Youyou is the first one to have revenue exceeding RMB 100,000,000; it took less than six months. There is no other Chinese proprietary IP that could ramp such revenue growth as fast as Youyou. It truly demonstrates our product and IP operation tactics and strategy and our robust confidence and operations of IP management. As we are working on that, we will be able to deliver faster growth.

In terms of product approach, we will carry forward the successful logic. We will define the structure and landscape for the designer toy market, maintaining category innovation as a primary driver of IP growth. All three product generations of Youyou released outstanding commercial results. The first generation remains most popular; till now, the average transaction value is still about RMB 400, and the third-generation product demand goes beyond our supply. At the same time, we are also clear that product sales are not the only dimension of IP management. We place greater emphasis on healthy, sustainable development of our IP. We will not sacrifice IP longevity for the sake of short-term sales revenue.

I believe 2026 will be a great year for Youyou. We are very likely to have more products working with internationally outstanding IPs. For example, IPs from the Disney family are going to have a co-branded wave with Youyou. That is how our proprietary IP works with international IP for co-branding.

Up to now, we have completed a full pipeline of 30 to 40 proprietary IPs. Among them, we have IPs from South Korea, Japan, and Thailand, and from all parts of the world. Especially Kumado, Chiba, and Chuchu have completed the full proprietary process from creative design to product readiness, and they will be introduced to global consumers in the months ahead. Through those pipelines, we aim to fundamentally reshape market perceptions of the MINISO IP category and product potential, creating more robust IPs that deeply resonate with consumer needs. I also would like to tell you, on May 17, we are going to have the MINISO Photo Gallery put into operation in Shanghai.

That is going to be another key artist we are going to work with. That artist’s one painting masterpiece can sell for tens of millions of RMB. When our MINISO art gallery is put into operation, we are going to engage more audiences to work with us.

Reflecting on what led Youyou to break through successfully, I think we did three things right. First, we constantly held to our core conviction of category innovation to drive explosive IP growth. Product innovation is quite important. The first generation of Youyou is outstanding. The success of Youyou readily allows us to recalibrate our direction for product innovation and how category innovation will be for the IP business. MINISO has been deeply dialed into the industry for many years. We have built world-class capacity in multi-category product development and adapted to consumer insights that help us rapidly convert a creative IP concept into best-selling products. Secondly, we work on IP narrative first and product commercialization second, ensuring that IPs develop their own soul and emotional resonance with consumers before products are launched, to crystallize the value, not the other way around. Thirdly, we build a fully integrated, end-to-end closed loop from upstream creative ideation to back-end supply chain to all the omnichannel distribution, enabling rapid response to consumer demand and efficient product iteration and launch. The IP incubation model is also the way that underpins our future capacity for next-generation blockbuster IPs. This is also a meaningful three-part competitive moat: world-class category development capacity, early-stage IP potential detection capacity, and high-momentum multichannel global distribution capacity. Those are the three strengths that will continue to empower the growth of our OIPs.

As you may already note, our flagship and new Land format stores have many Youyou installations. That is quite important for IP promotion. You know that we have a store in Causeway Bay, Hong Kong. When we did not have our proprietary IP, we could only showcase Disney IP. Next month, we are going to have the Youyou artist installations at that store. For any IP, you have to make sure you expose the IP, especially your proprietary IP, at the store. That is our unique advantage of over 8,000 stores worldwide.

With installations and Youyou’s presence in the store, that will be the best way to promote the IP at our own stores and make it visible and touchable by the consumer.

The third point regarding the third-party IP and proprietary IP portfolio, I have nine words: more IP, more portfolio, globalization. In other words, we need to have global licensed IP plus proprietary IP. International IPs have their advantages. Some already have movies, well-curated content, and strong fanbases. Proprietary IPs also have the attribute of scarcity. If it is only a MINISO proprietary IP, it will protect our business strengths. By having international IP plus proprietary IP, that would be the best business combination. As we are working together, we will be able to make sure we have a stable business and more work to be done. For example, recently, we have the Jennie collaboration and we saw the Instagram movement on WeChat and Xiaohongshu a lot.

If it were linked only to proprietary IP, I do not think the popularity would be that good. That is the reason I believe multi-IP, multi-category works for sure. Improving consumer experience also contributes to business stability in the long run. We need to be forward-looking rather than short-sighted. We must fully validate that third-party IP plus proprietary IP is the golden formula. We hope you can see after two to three years whether my words will be validated by the market or not. Till now, we also contracted some incubation of independent original artists and we are also incubating IP projects. Starting from 2026, in 2027 or beyond 2028, our proprietary IP development is going better.

From the financial performance standpoint, proprietary IP outperforms third-party IP on gross margin contribution, owing to stronger consumer loyalty, pricing power, and absence of licensing cost. Third-party IP, in turn, provides powerful complementary benefits in new customer acquisition, audience expansion beyond our existing base, and also provides us very good content marketing advantages. The two are highly synergetic, together driving sustained and high-quality growth of our IP-related business. You know that for MINISO, the brand impact continues to ramp up. Many international IPs proactively approach us to work together. Even Jennie, the international top artist, worked with us. Jennie has a nickname as Miss Chanel because Jennie is the brand ambassador for many luxury products.

Jennie has been happy with MINISO because of our strong brand and customer experience.

Let me now attend to the question regarding the Mexico market. I just came back from Mexico. I am fully confident in that market. I believe it is going to be better in the near future. Mexico is going to be top three in the global arena. I met face to face with the GM of Mexico. We need to do brand operations in Mexico and develop the Land store format. We need a mix of Land and franchise stores. The top 100 shopping malls in Mexico should have GFA more than 800 square meters. In that way, the Mexico market will see explosive growth. You know that I went to Mexico and they have 100 Zara stores.

All those stores have been taken in good shopping malls. Mexico’s landscape is very much like China. Their GDP per capita and the consumption structure are very much like China, with lower manpower cost. Mexico is actually in the best time for offline business development. We hope Mexico could become a benchmark market we have in Latin America. When Mexico thrives, the Latin America market will be driven. We are fairly confident in the Mexico market, and we have high expectations. We now define Mexico as our benchmark market. We will spend more effort and resources to make this market right.

We have a very clear strategy for Mexico; same-store sales growth and future growth will be quite promising. My first point: you can see in 2026, Mexico will also have fast high-single-digit growth. However, it is still before the explosive growth of the Mexico market. It is still taking the old business model, old format. If they follow my line of thinking, a few stores could be transformed into Land or flagship stores. There is one store with Hermès, Chanel, and Dior as the neighborhood, and these stores should satisfy something unique rather than value for money. So I asked them to please close down that store and reformat it to sell popular IP and premium products. Mexico is often taken as a backyard of the United States. People come to Mexico who really want to shop something unique.

We find Mexico is a market with great opportunities. We found that Mexico has a great array of high-quality shopping malls with very strong traffic flow. So we are not going to sell daily necessities. We are going to translate them into flagship stores, sell IP and trendy toys along with immersive experience, and drive interest consumption to improve ASP. I believe after Q2, Q3, and Q4, performance in Mexico will meet expectations. We will retrofit our stores and upgrade top 100 shopping mall locations in Mexico. I believe the performance of that 100 in Mexico will be doubled.

The first question was asking about our investment. We were quite lucky to invest in a company named MiniMax. That is an AI company. MiniMax is being applied at our company very well, and I also would like to continue to work with MiniMax. We invested in MiniMax when they still had a very low valuation. Now the return is looking pretty good. So the name of that company is MiniMax. That is all. Okay?

Operator: Thank you, Samuel, for your question. Due to time, ladies and gentlemen, please make sure you raise just one question per time. Coming next, let us welcome Renbo from CICC.

Yanran Bo (CICC): Hello, Mr. Ye and Eason. Thanks for giving me the chance to raise my question. My name is Yanran Bo from CICC. Just one question from me. In 2025, it seems YH is pressuring your margin and financial statement. What would be your plan for YH business? Thank you very much.

Guofu Ye: First of all, I need to clarify to all MINISO investors: my primary focus has always been and will always be MINISO. It is our foundation and the core driver of our future growth going forward, and it is also the foundation to make MINISO great. So you can be reassured 90% of my energy and time will be on MINISO. MINISO will always be my highest priority. My investment in YH will not distract my attention from that. Regarding YH, we have completed a management team transition with Wang Shouchen appointed as YH CEO. Under his leadership, YH has its own complete management team that is now independently responsible for the day-to-day operation and strategic execution of the business.

Regarding YH’s future, we still feel confident. For MINISO and me, myself, I still would like to say MINISO will still be my highest priority, and it is also the cornerstone for the company to further expand and make MINISO truly great. I always notice the market development and momentum of MINISO is quite unique worldwide. We will seize the opportunity, continue to ramp up our business, and make MINISO great. Thank you. Okay?

Operator: Thanks to Mr. Ye. Coming next, let us welcome Shu Di from Huatai Securities.

Shu Di (Huatai Securities): Okay. Thank you. I am Shu Di from Huatai Securities. Congratulations on the company delivering a satisfying scorecard to the market, which is truly in line with refined operations. Mr. Ye, you have already introduced a proprietary IP strategy. We have already noticed in 2026 you take it as an operating year for proprietary IP. For the dimensional elevation for proprietary IP, what is the organizational structure of the proprietary IP team now? What pipeline and marketing initiatives should we look forward to in 2026? Thank you.

Guofu Ye: We define 2026 as the evolution year for our proprietary IP. The foundational first step is the comprehensive organizational restructuring and level design of our IP business. We established a dedicated IP business group with full accountabilities across the IP value chain from creative incubation to product development to omnichannel operation. Our leader of merchandise has been placed into the IP business group. We are putting very experienced people to take the lead of the IP business group—the best and most capable people to run the IP business—so you can already notice how important IP business will be for MINISO. You can see that, directly, in many companies people are just using new managers to run new businesses.

It is quite risky. We remain confident in our new business. We are using the most capable individuals to run the new business. That is what we do at MINISO. The most capable individuals and the capable team are running the new business, IP business, and that business is fully independent as a new business group.

Regarding team build-out, we have completed targeted headcount expansion in IP operation, product management, and creative design, and we also established two new back-end R&D departments including CMF (color, material, finish) and ink and powder development. We are among a few companies that started to enter into material study. So for our trendy toys, we not only do IP, we also do product design and material study and color study and finish study, stressing that IP product manufacturing from supply chain building to product quality continues to consolidate the foundation for long-term IP growth. That is what we did in 2025.

We will have the fabrics and raw material aspects, and we have a CMF unit that is established in Dongguan, very close to our headquarters.

Regarding marketing and communication, we are working to build global IP influence through a diversified range of activations. For example, attending international art fairs and fashion weeks. On May 17, we are going to have the MINISO Photo Gallery put into operation in one of the best art centers in Shanghai. That also helps to showcase our standing within the artist community. For continued updates, we are going to have our own photo gallery not only in Shanghai, but also a new one in Hong Kong, because Hong Kong is actually the hub for global artists. We are going to build such photo galleries in Hong Kong too.

By leveraging those photo galleries, we are going to engage the best artists worldwide, continue to ramp up collaborations, and also leverage KOLs to amplify our brand reach. Last year, for Credit Katy Kitty as well as other international artists, we started to work with them for marketing events. Even some of the short videos and secondary creations have been quite popular. There are many secondary creation contents of Youyou, and even within secondary incubation or content creation, Douyin is actually ranking number one among all IPs. The fans are quite active. Certainly, at retail we actually have IP-specific zones, translating brand impact into actual sales.

In Guangzhou, we also have the Artist Street that is about 50 square meters GFA. We are going to allow new artists and new products to be showcased in those Artist Streets, having interactions with consumers.

I believe that by so doing, we will be able to continue to scale our investment in proprietary IP incubation, creating an ecosystem and back-end R&D capacity. Our investment is for long-term healthy development of IP, not short-term traffic speculation. We focus on building high-quality IP that accumulates enduring brand value and generates sustainable cash flow, cementing a robust second growth curve for the company’s long-term future. That is our strategy now. In the near future, as we continue to improve our business capacity, we will have new IPs and new strategies to truly unlock the value of IP.

Operator: Coming next, let us welcome Anne from Jefferies, please.

Anne (Jefferies): Thank you. Mister Ye, thank you very much. I have a question for your SSSG. What is the current same-store sales performance? What about store expansion or site selection? And also the operating margin level in different markets, especially in the directly operated stores overseas. In the past, you were still in the investment stage. When are we going to expect operating return improvement? Thank you.

Eason Zhang: Thank you. I am Eason Zhang. Let me help respond to your question. I think for the past 12 months, our growth philosophy is getting more clear: same-store sales growth as a foundation and new store expansion, especially high-quality ones, as incremental upside. Those are working in tandem. For SSSG, our 2026 goal to deliver a positive SSSG globally is quite challenging; however, we have ways to make it happen. Because in international markets, we still have some agent stores. It is not easy to make their growth positive. However, with good assortment, we have every confidence we will be able to handicap them.

Regarding store expansion, I have already mentioned a net increase of 510 to 515 high-quality stores globally, with China and international markets serving as a twin engine for growth. In China, we plan net new adds of 120 stores; the majority of them will be the Land format and large-format stores. We will also close our underperforming small stores and continue to optimize the existing portfolio. In 2026, besides same-store sales growth, the high-quality new stores opened in 2025 and 2026 will contribute meaningfully in subsequent years as they mature. In China, we will still harvest good growth, but net growth will be only 120.

In international markets, net store growth will be 250 stores, covering North America, Europe, Southeast Asia, and Latin America, deploying a combination of Land format flagship stores plus high-quality standard stores in prime retail destinations. As Mr. Ye mentioned, we need to move into the world-class business streets to improve the brand potential. Regarding North America, same-store growth already exceeded 20% in January and February 2026. We expect OPM to have a low single-digit improvement. In Europe, since the start of 2026, we see SSSG grow by double digits. Store expansion is progressing steadily. For example, in Poland, we opened two stores which are quite efficient working on 20 toys only, making lucrative profits. In Europe, we have another four direct-operated markets. Those are still in the early-stage investment. We hope OPM could be improved further. In Mexico, since the start of 2026, we see SSSG growth being a positive number, and we believe Mexico with the agent model still provides a stable operating profit margin. In Southeast Asia, we see some challenges. However, for MINISO, our business model is globalization. No matter if some markets have been challenged, we can leverage our global expansion to diversify our investment portfolio. We have some challenges in Southeast Asia; however, we are going to return to positive SSSG, working on Indonesia, primary locations, to have new stores. Overall, SSSG and OPM trajectory across all key markets remain healthy, which also showcases that we are still in a fast expansion and growth period. The key drivers are four: optimizing stores, product operations, scale expansion, and, lastly, well maintaining cost and expenses. Thank you.

Operator: Thank you, Eason. Next question, let us welcome Madam Xu from CCB International. Please.

Madam Xu (CCB International): Thank you. Mr. Ye and the management team, I have a question regarding the Southeast Asia market. Southeast Asia was the first start for international expansion. In 2025 I made a visit in Southeast Asia. The performance of Southeast Asia has been a concern of investors. What is the inventory in the Southeast Asia market? Are you going to adjust operations and product strategy there in 2026? Thank you.

Guofu Ye: Regarding the question for the Southeast Asia market, I think in 2026 there will be a huge adjustment. MINISO started our global expansion ten years ago. We made major investments in Mainland China. In 2026, we are going to adjust four key markets: Thailand, Malaysia, Philippines, and Indonesia. In Thailand, we were quite successful and the Land format stores delivered tangible results. Indonesia is going to copy the Chinese model. Southeast Asia is quite close to China, and the consumption pattern is very much impacted by China. The lessons and success we made in China can help guarantee success in Southeast Asia. Recently, we went to Malaysia to have a MINISO Land store with very nice performance.

In 2026, we are going to continue to copy what we do in China to key markets in Southeast Asia. I believe after the 2026 adjustment in H1, then in H2, Southeast Asia is going to provide you a good turnaround. We have a very clear and transparent strategy. We are going to execute it right.

Madam Xu (CCB International): Thank you, Mr. Ye. No further questions from me.

Operator: Okay? We are going to accommodate the final question. Jingyi Yang from Yangtze River Securities, please.

Tina Yang (Yangtze River Securities): Thank you. Thanks to the team. Mr. Ye and the management team, I am Tina Yang from Yangtze River Securities. I have a question for you. Regarding the store renovation and upgrade program, is it possible for you to tell us what the strategy for 2026 will be? How many stores do you expect to renovate in 2026? What are the results from the completed renovations so far? Thank you very much.

Guofu Ye: In 2025, we completed renovation for 290 stores. The results were highly impressive. Renovated stores’ average sales uplifted by 40% to 50%. The improvement is not attributable to a single factor, rather a simultaneous improvement of foot traffic, conversion rate, and ASP. They are all being improved. At the same time, rent as a percentage of sales has declined meaningfully. Staff productivity and sales per square meter are rising significantly. Single-store profitability has improved too. More importantly, you can see that last year, major landlords have been getting more supportive, and we also got greater support from landlords who are happy to provide better and larger locations to allow us to have Land stores and larger formats.

With prime locations, cheaper rent has been provided. In 2026, with our proprietary IP development, some shopping malls and department stores are happy to present the best locations for us to do aesthetic IP exposure and IP presence. That can really showcase how the resources we will be offered. In 2026, we are going to accelerate renovation and adjustment. Underperforming stores will be upgraded and moved to prime locations. 2026 is a year for accelerated renovation. I have already mentioned in the near future 80% of stores need to be renovated and upgraded.

With our proprietary IP development, in the near future our stores are going to be quite unique, quite differentiated, and they are going to be more influential in the landlord’s mind and be able to get good leasing terms. That way, I believe assets will contribute to our business growth and profitability in China. Thank you.

Operator: Thanks to all the investors and analysts for your time for this conference. If you have any further questions, please reach out to the IR team. Thanks for your attention to MINISO Group Holding Limited. See you next quarter. Thank you.

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