A：In this conference call, Miniso announced the performance for the second quarter and first half of 2025, and discussed financial indicators under non-international financial reporting standards. The meeting was hosted by the founder and CEO Mr. Ye Guofu and CFO Ms. Zhang Jingqing, who shared the second quarter sales revenue, operating profit, adjusted EPS exceeding expectations, as well as the growth rates of overseas and domestic business departments reaching or exceeding the previous guidance range. In addition, significant progress made in the AP strategy and large store model was introduced, especially the group's overall GMV growth of 21% year-on-year, revenue growth of 23.1% year-on-year, and achieving positive growth for the first time in four quarters.

A：In the second quarter, Miniso Group achieved strong growth in sales revenue, operating profit, and adjusted EPS. Both of its major brands, Miniso and Top Ten, showed accelerated growth in revenue, with Miniso growing by close to 20% and Top Ten achieving an 87% growth in revenue. The gross profit margin was 44.3%, with the year-on-year improvement mainly attributed to the increase in overseas revenue and the optimization of Top Ten's gross profit margin. Adjusted operating profit reached 850 million, showing significant year-on-year growth; and the adjusted net profit margin was 17.2%, an improvement from the previous quarter. It is expected that the sales during the peak season in the second half of the year will further boost the operating profit margin.

A：Domestic business continues to maintain high-quality growth, with sales increasing by 13.6% year-on-year, significantly higher than the overall retail industry and online channels during the same period. It is particularly worth mentioning that domestic comparable store sales have been steadily recovering since the beginning of the year, achieving overall profitability in the second quarter. As we enter the third quarter, growth momentum is accelerating significantly. In order to achieve long-term high-speed growth, the company is upgrading its channels. Despite short-term concerns, after a quarter of adjustment, stores have quickly resumed positive growth, with the number of franchisees reaching a historical high. With only a small increase in store numbers, revenue has achieved double-digit growth, fully demonstrating the importance of channel upgrades in driving revenue growth and the development of the company.

A：In the second quarter, overseas market revenue exceeded 1.9 billion yuan, an increase of 28.6% year-on-year, with the revenue in the US market increasing by over 80%. This is mainly due to the precipitation and improvement of existing stores, the driving effect of newly added high-quality stores this year, and the optimization of product structure. 37 new stores were added in the US market this year, with the average store efficiency and sales per square meter significantly higher than the old stores, laying a solid foundation for accelerated performance and long-term growth in the second half of the year.

A：In the second quarter, Top brand's revenue increased by 87% year-on-year, with a net increase of 13 stores, reaching a total of 293 stores, 283 of which are located domestically and 10 overseas. Thanks to the effective implementation of product differentiation strategy and continuous enhancement of product competitiveness, Top brand's precipitation achieved a growth in the single digits in the second quarter, with a significant improvement in gross profit margin. In the future, Top brand will continue to expand stores and network with high recognition, and constantly strengthen the sales contribution of its own brand and own IP.

A：In terms of the big store strategy, as of the end of June, Miniso has set up 11 MiShao bright spot stores nationwide, with an average monthly store efficiency reaching millions. Especially the Nanjing Road store in Shanghai, the world's No. 1 store, broke 100 million in sales in nine months after opening, setting a new record for single store sales. The big stores not only achieved excellent profit performance, but also provided a core position for brand incubation of explosive products and the creation of model special zones, continuously injecting new growth momentum for flagship stores and regular stores. At the same time, flagship stores are also the cornerstone of the big store strategy, with more than half of them newly opened in 2024, and their area efficiency, store efficiency, and profitability are higher than the average level.

A：In the overseas market, the large store format is constantly improving in terms of operation and brand momentum, especially driven by the market in the United States. New store openings have a 1.5 times higher consumption rate than existing stores, with a nearly 30% higher sales per square foot ratio. Large stores are able to meet the interests and needs of all age groups in a family, becoming a one-stop shopping destination for lifestyle products for the entire family. The strong supply chain and product capabilities support the multi-category, high turnover large store model. With continuous optimization of the model and global scale, the overseas development space will further open up and performance will become more stable.

A：The Free IP strategy is the core carrier of Miniso's deepening IP layout, enriching IP image through continuous innovation in spatial experience. For example, through cooperation with artist IPs, a global IP ecosystem is built, and nine trendy art artists have been successfully signed, among which products launched by Yoyo Sauce quickly sold out, demonstrating good market response. In the future, Miniso will continue to explore potential artist IPs, steadily advance the strategic goal of launching 100 Chinese IPs overseas, leveraging its advantages in product flexibility and expansibility, channel control and innovation, global layout breadth and quality, as well as end-to-end operational capabilities, to empower the Free IP incubation with the polished products and operational capabilities accumulated in the past, unleashing greater potential value.

A：When I proposed the concept of interest-based consumption in 2020, IP became an important carrier of this concept. Through the successful operation of IP series, we not only achieved an increase in product sales and brand exposure, but also fully experienced the potential of IP consumption in global channel cooperation. In the future, as IP and brands further integrate, I believe we can create more marketing highlights and sales miracles.

A：Currently, the IP market in China has made significant development, but it is far from reaching its limit, with vast future development opportunities. Referring to the global development process, China may in the future see the emergence of a powerful platform-type IP enterprise, which is an inevitable product of the country's rise and cultural confidence. With advantages in full category coverage, channel penetration, globalization layout, and full-chain operation, it will occupy a leading position in the Chinese IP market and have influence worldwide.

A：The strategic vision of Miniso is to become the world's leading IP design retail group. Currently, we are the largest IP product retailer globally, with projected annual sales exceeding 38 billion and revenues exceeding 21 billion by 2025. Next, we will focus on enhancing our IP-related capabilities to ensure the vision is achieved.

A：In the first half of 2025, we have returned 470 million RMB to shareholders through buybacks and dividends, accounting for 84% of adjusted net profit for the first half of the year. In the future, we will continue to maintain a dividend of 50% of adjusted net profit annually, and will continue to engage in dynamic repurchases to achieve the expected shareholder return. In the second quarter, the overall revenue of the group reached 4.97 billion RMB, a year-on-year growth of 23%, exceeding the previous guidance. Among them, the revenue of the Miniso brand was 4.56 billion RMB, a year-on-year growth of 20%. Miniso's revenue in Mainland China and overseas increased by 14% and 29% respectively. The revenue of the Top Toy brand was 400 million RMB, a year-on-year growth of 87%.

A：In the first half of 2025, domestic Miniso stores achieved positive growth in sales, with significant improvement in Q2 performance compared to Q1. Since Q3, the growth of domestic Miniso stores has further accelerated, and it is expected to achieve positive growth for the whole year. At the same time, 30 new stores were added in Q2 in domestic market, with the store network continuing to expand. The proportion of large stores is 5%, and plans are in place to increase the number of stores by 100 to 150 for the whole year. In overseas markets, 94 new stores were added in Q2, and plans are in place to add over 500 stores for the whole year, with approximately 35% being self-operated stores.

A：In Q2, the gross profit margin was 44.3%, an increase of 0.6 percentage points year-on-year, mainly due to factors such as the increase in the proportion of overseas income and effective execution of IP strategy. The sales expense ratio increased by 3%, with sales expenses increasing by 43% year-on-year due to increased investment in direct stores. Management expenses increased by 19%, growing slightly slower than income growth, mainly due to an increase in employee costs. With refined operations and strict cost management, the growth rate of direct store direct expenses has significantly decreased, and profitability is expected to be optimized in the second half of the year.

A：We account for our investment in Yonghui using the equity method. Yonghui had a 1.19 billion RMB impact on our net profit in this quarter. This amount will be excluded from the financial indicators under non-IFRS, mainly from our 29.4% shareholding in the Q20 conference's net loss portion, as well as approximately 5 million RMB in acquisition-related amortization expenses.

A：Our adjusted operating profit margin is 17.2%, up 0.6 percentage points from Q1, but down 2.3 percentage points compared to last year. The decrease in profit margin compared to Q1 has narrowed, and I am confident in the improving trend of profit margin. The core domestic franchise business profit margin remains stable, but the overall profit margin has decreased due to new businesses such as warehouse stores and e-commerce with lower profit margins, although it is manageable. The decline in overseas financial profit margin is due to changes in income structure, with a contribution from direct sales revenue. After the peak sales season in the second half of the year, it is expected that the impact of overseas direct sales business will weaken, and the profit margin will improve. At the same time, there is great room for improvement in the profit margin of overseas direct sales business itself, and in the future, we will increase the operational profit margin of the business by improving efficiency and fine-tuning operations.

A：The TT brand's gross profit margin has significantly increased this quarter, but upfront investment (in product research and development, expanding overseas, and IT, etc.) is necessary. Looking at the medium to long term, a management profit margin of around 20% is a reasonable goal. Currently, the company is giving new businesses ample room and time for growth. Adjusted net profit for Q2 is 690 million, with a net profit margin of 13.9%. Adjusted EBITDA has increased by 14.7%, with an adjusted EBITDA margin of 23.1%.

A：Our inventory turnover remains stable and efficient. As of June 30, the group's inventory turnover days were 93 days, compared to 102 days in the previous quarter, showing a significant improvement. Both MINISO Overseas, TT, and domestic MINISO have reduced their inventory turnover days. By optimizing the SKU structure control at the procurement end, strengthening the standardization of product categories, and implementing a dynamic inventory level monitoring mechanism, we have effectively improved the efficiency of turnover for long-tail products, and have laid a solid foundation for the healthy cash flow and efficient operation of working capital.

A：As of the first half of the year, our cash reserves stand at 7.47 billion, maintaining stability. The net cash flow from operating activities in the first half of the year was 1.01 billion, with 260 million in Q1 and 750 million in Q2. The quarter-on-quarter trend shows a significant improvement, thanks to the efficiency of working capital. The capital allocation strategy will continue to balance rapid growth and provide stable returns for shareholders.

A：Today we jointly announced that the mid-year dividend for 2025 is expected to be approximately 640 million yuan, accounting for around 50% of the adjusted net profit for the first half of the year. It is estimated to be paid to shareholders in September. During the first half of this year, we have already repurchased stocks worth 340 million yuan, and have paid a total dividend of 1.07 billion yuan, accounting for 84% of the adjusted net profit for the first half of the year. The board of directors has approved to continue repurchasing up to 10% of the total outstanding shares in the future, and plans to conduct repurchases through various methods.

A：Group revenue is expected to increase by 25% to 28%, with same-store sales expected to grow in the low single digits. Adjusted operating profit margin is expected to increase by double digits compared to the previous year and improve sequentially. For the full year, group revenue is expected to increase by no less than 25%, with adjusted operating profit projected to be in the range of RMB 3.65 billion to 3.85 billion, and the adjusted operating profit margin is expected to improve gradually.

A：The improvement of the US market mainly reflects in several aspects: focusing on the quality of stores, adopting a large store strategy and concentrating on opening stores; vigorously developing the Chang'an category; strengthening product and brand promotion, especially during holidays and localized operations. In the second half of the year, the focus will be on refining the single store model, improving the performance of single stores, especially through optimizing product combinations and refined operations. The annual store opening target is 80, with a focus on store quality and large store models, improving store productivity and overall performance.

A：The main driving factors for the increase in domestic copper prices include the combined effect of quantity and price. At the same time, promotional activities on platforms have indeed played a certain auxiliary role in the growth of copper prices.

A：In terms of overseas sales, specific proportions for the United States, Europe, and Asia have not been provided with detailed data yet. However, it was mentioned that targeted growth strategies will be developed based on the characteristics of each region, and the strategy for the American market was explained in detail, while further understanding and analysis will be needed for other regions. Currently, the number of Top Toys stores overseas and its focus on growth are not clearly stated. However, it was mentioned that Top Toys is a professional trendy toy brand with a focus on high-end positioning, while mini so leans more towards affordable prices and a diverse range of products, with both adopting different display formats and positioning strategies.

A：The company has shifted its focus from solely licensing international IPs in the past to a dual IP-driven strategy, which includes significant development of their own IPs. Currently, their own IP "Youyou Sauce" is performing well, and is expected to become a billion-level IP this year. The company has also mastered the methodology for operating their own IPs. In addition, they have signed contracts with multiple artist IPs and acquired the promising IP "Lomin", which are expected to bring significant GMV growth to the company.

A：It has not been clearly indicated which markets are performing below or above expectations at the moment. However, it is emphasized that despite copper turning positive in Q2, overseas markets still face certain pressures on a same-store basis, and measures will be taken to address market fluctuations by monitoring the performance of relevant markets and taking corresponding actions.

A：Currently, there are two companies in China with platform capabilities, namely me and the top three. In terms of short-term performance contribution and profit assessment, we place more emphasis on the high-quality development of IP and the enhancement of IP value.

A：In the first half of this year, markets such as the United States, Canada, and Australia showed a clear trend of reversal, demonstrating rapid growth. However, revenues in the Latin American market have declined, but the growth of GMV in local retail terminals is mainly due to customers adjusting inventory levels and the impact of exchange rate fluctuations. At the same time, some smaller markets such as Hong Kong, China are also facing issues such as decreased foot traffic and high rent, but their overall proportions are relatively small. Overall, in the first half of the year, overseas markets showed a generally positive trend.

A：The impact of tariffs has been evident since the second quarter, but it has not significantly affected the profit margin in the United States. In order to deal with tariffs, we have taken the following measures: pre-reserving inventory in the United States, leveraging our supply chain management integration capabilities to establish local procurement sanctions, and conducting reasonable tax planning. These measures effectively safeguarded profits from the impact of tariffs.