According to the Star Daily on November 30 (Reporter Xu Cihao), last night (29th), miniso released its third quarter financial report for the period ending September 30, 2024.

The financial report shows that miniso's third-quarter revenue was 4.523 billion yuan (approximately 0.645 billion usd), a year-on-year increase of 19.3%; profit for the period was 0.648 billion yuan (92.4 million usd), a year-on-year increase of 4.9%; adjusted EBITDA was 1.14 billion yuan (0.162 billion usd), a year-on-year increase of 12.4%.

In the first nine months of this year, revenue was 12.281 billion yuan (1.75 billion usd), a year-on-year increase of 22.8%; profit for the period was 1.826 billion yuan (approximately 0.26 billion usd), a year-on-year increase of 11.6%; adjusted net profit was 1.928 billion yuan, an increase of 13.7% compared to the same period last year.

As of the time of writing, miniso's stock closed at 20.01 usd, up 8.22%; miniso's Hong Kong stock closed at 38.7 HKD, up 8.4%.

Overseas revenue increased by 39.8% year-on-year, deepening the IP strategy.

The financial report shows that miniso's revenue from mainland china in the third quarter of 2024 increased by 8.7% year-on-year to 2.71 billion yuan, mainly due to a 5.7% increase in miniso brand revenue in mainland china; and a 50.4% increase in revenue from TOP TOY.

Miniso's revenue from overseas markets in the third quarter of 2024 was 1.81 billion yuan (approximately 0.258 billion usd), a year-on-year increase of 39.8%, mainly due to a 55.4% comparable growth in revenue from overseas direct markets; and a 26.5% comparable growth in revenue from overseas agency markets.

In terms of store expansion, as of September 30, 2024, miniso has entered a total of 112 countries and regions globally, with 4,250 stores in china, a net increase of 324 stores in the first three quarters, maintaining a steady opening pace towards the annual target of a net increase of 350-450 stores; there are 2,936 overseas stores, with a net increase of 449 stores in the first three quarters, and the net increase for the entire year is expected to reach 650-700.

In addition, miniso continues to deepen its IP strategy. As of now, miniso has cooperated with over 150 well-known IP images globally. Among the top 10 global IP licensors, 6 have collaborated with miniso, and among the top 20, 9 have reached cooperation with miniso.

Ye Guofu, founder, chairman of the board of directors, and chief financial officer of the miniso group, stated that the IP consumer goods market is a trillion-level large market, and miniso's IP strategy has great potential. In the future, miniso will closely partner with leading global IP licensors, leveraging its global store network, global design capabilities, and global supply chain integration capabilities to launch more "good-looking, fun, and useful" products.

Under the continuous guidance of this strategy, TOP TOY, a subsidiary of miniso, has also entered a high-speed development track. Financial report data shows that TOP TOY's revenue in the third quarter reached 0.27 billion yuan, with a growth rate of over 50% year-on-year, having achieved profitability for four consecutive quarters. In terms of store expansion, as of September 30, TOP TOY has 234 stores, including 29 direct stores and 205 partner stores, with a net increase of 86 stores in the first three quarters of 2024.

At the same time, TOP TOY has also begun to accelerate its entry into overseas markets. In August of this year, TOP TOY made its appearance in the Central Park flagship store of miniso in Jakarta, Indonesia, in a store-in-store format. In October of this year, TOP TOY opened its first overseas store in Bangkok, Thailand. TOP TOY has revealed that it will further expand its overseas market territory in the future.

It is worth noting that in response to the potential risk of increased tariffs by the usa, Ye Guofu stated at last night's earnings conference that miniso is actively taking various measures, including increasing the proportion of local assets and seeking alternative supply chains in Southeast Asia, Japan, and South Korea, to ensure the stability of its supply chain.

Over 60% of the investment to acquire yonghui is intended to be financed through external loans.

On September 24, miniso and yonghui superstores both announced that a wholly-owned subsidiary of miniso intends to acquire 29.4% equity of yonghui superstores for 6.27 billion yuan. After the trade is completed, miniso will become the largest shareholder of yonghui superstores.

During this earnings conference, miniso disclosed the progress of its acquisition.

The acquisition of yonghui project is progressing steadily, and the overall project timeline is in line with expectations, with the trade expected to be completed in the first half of 2025,” said miniso's chief financial officer Zhang Jingjing at last night’s earnings conference, adding that two of the five prerequisites have been met: the transaction circular has received no objection from the Hong Kong Stock Exchange, and the public consultation period for the concentration of operators has ended.

According to Zhang Jingjing, miniso expects to resolve no less than 60% of the investment amount, approximately 3.76 billion yuan, through external borrowing to support this acquisition. According to the financial report, in the first nine months of this year, miniso generated a net cash flow from operating activities of 2.03 billion yuan and a free cash flow of 1.47 billion yuan. As of September 30, 2024, miniso held 6.28 billion yuan in cash.

Since acquiring yonghui shares, investors have been concerned about miniso's future strategy regarding yonghui.

Ye Guofu revealed in the financial report earnings conference that miniso has proposed four strategies for yonghui: first, joint procurement, as both teams have started to connect; second, assist in creating their own brand to increase the proportion of self-produced products and improve gross margin; third, optimize store products and services to enhance operational efficiency, control operating expenses to reduce costs and increase efficiency, improve labor efficiency, and ensure that adjusted stores are profitable; fourth, focus resources, prioritize the adjustment and closure of loss-making stores, adhere to high-quality development, concentrate on quality resources to operate stores well, and ensure that adjusted stores are profitable, even if the number of stores decreases, overall performance can still be improved by enhancing single-store performance.

Products like millet will be a key development direction next year.

Recently, miniso announced a deep strategic cooperation with Meituan, focusing on instant retail business to accelerate the layout of lightning warehouses.

It is reported that since opening its first store in January of this year, miniso has opened about 500 24-hour superstores, achieving cumulative performance of over 100 million yuan. Miniso will launch more than 800 lightning warehouse 24-hour superstores on Meituan this year, serving consumers with instant needs of "placing orders online and delivering in the quickest 30 minutes."

The Meituan warehouse stores are rapidly developing, representing miniso's strategic layout in instant retail. Ye Guofu stated at last night's earnings conference that the current profitability and ROI trends of the warehouse stores confirm previous judgments, and more information will be disclosed externally when the data model is more stable.

Discussing the currently booming millet economy, Zhang Jingjing revealed at last night's earnings conference that miniso added 300 stores in the second dimension zone in the third quarter of 2024 compared to the second quarter, with sales performance in the second dimension category increasing by 50% month-on-month.

We have noticed the strong rise of second dimension culture, so we plan to make this category an important development direction for next year. Zhang Jingjing stated at the earnings conference in the financial report that it is expected to launch miniso's self-developed millet-themed peripheral products each month next year, creating differentiated creative products through secondary creation and other means.