How much of Miniso's disappeared 13 billion yuan in profits does Yonghui Supermarket account for?

Miniso expects a net profit of approximately 1.32 billion to 1.33 billion yuan for fiscal year 2025, a decline of about 50% compared to 2.635 billion yuan in the same period last year.

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Investment Time Network, Punctuation Finance Researcher Dong Lin

In fiscal year 2025, Miniso Group Holdings Limited (hereafter Miniso, MNSO.N, 9896.HK) experienced its first annual net profit decline since listing on the Hong Kong Stock Exchange.

Data shows that in fiscal year 2025, the company will record revenue of approximately 214.40 billion to 214.45 billion yuan, a year-over-year increase of about 26%. It is expected to achieve operating profit of about 33 billion to 33.05 billion yuan and adjusted operating profit of about 36.65 billion to 36.75 billion yuan, both higher than the same period last year. However, Miniso expects a net profit of about 13.20 billion to 13.30 billion yuan for the year, down roughly 50% from 26.35 billion yuan last year.

Investment Time Network, Punctuation Finance Researcher notes that behind the profit decline are factors such as overseas expansion, acquisition costs, and strategic shifts. Despite short-term pressure on profits, Miniso remains committed to strategic upgrades. Founder, Chairman, and CEO Ye Guofu announced at the 2026 Global Partner Conference that over the next five years, Miniso will close about 80% of its existing stores worldwide and fully shift to “amusement park-style” superstores over 400 square meters centered on IP, accelerating toward becoming a “globally leading IP operation platform.”

The upgrade and iteration of 80% of stores will undoubtedly pose severe challenges to Miniso’s cost control. How will the company balance strategic investments and profitability moving forward?

Miniso Releases Preliminary Financial Results for Fiscal Year 2025

Data source: Company announcement

Since listing on the Hong Kong Stock Exchange in 2022, Miniso’s performance has maintained growth. Wind data shows that from fiscal year 2022 to 2024, the company’s revenue was approximately 10.086 billion, 11.473 billion, and 16.994 billion yuan, respectively, with year-over-year growth of 11.18%, 13.76%, and 48.12%. Net profit was 640 million, 1.782 billion, and 2.635 billion yuan, respectively, turning profitable in 2022, with growth of 178.44% in 2023 and 47.87% in 2024.

However, in fiscal year 2025, Miniso failed to achieve simultaneous growth in revenue and profit. The company attributed the lack of profit growth to several factors in its announcement: First, Yonghui Superstores (601933.SH) is expected to record a net loss of about 2.1 billion yuan in 2025, which may result in about 740 million yuan of investment-related losses for Miniso. Second, the company incurred equity award expenses of 230-240 million yuan for management and employees of TOP TOY, as well as a redemption liability loss of 150-160 million yuan due to strategic financing and preferred stock issuance in 2025. Third, interest expenses related to convertible bonds issued in January 2025 amounted to 192 million yuan, including 173 million yuan of non-cash expenses.

Investment Time Network, Punctuation Finance Researcher notes that in 2024, Miniso invested 6.27 billion yuan to acquire Yonghui Superstores, leading to a significant increase in the company’s debt ratio. As of the end of that year, Miniso’s asset-liability ratio was 42.85%, which rose to 62.23% by the end of Q3 2025, an increase of nearly 20 percentage points in just nine months.

Similarly, as of the end of September 2025, Miniso’s total short-term and long-term borrowings amounted to 7.508 billion yuan. The increase in interest-bearing debt led to a rise in financial expenses, which grew by 296.27%, 477.52%, and 656.57% year-over-year in Q1 to Q3 2025. By the end of Q3, total financial expenses reached 233 million yuan, a 455% increase compared to 42 million yuan in the same period last year, further squeezing profit margins.

Miniso Revenue in the First Three Quarters of 2025 (in thousands, %)

Data source: Company financial reports

Looking at the revenue structure, in the first three quarters of 2025, Miniso’s core brand revenue was approximately 13.87 billion yuan, up 19.8%. Domestic market revenue was 8.024 billion yuan, up 14.1%; overseas revenue was 5.846 billion yuan, up 28.7%, accounting for about 42% of Miniso brand revenue. Additionally, the second growth driver, TOP TOY, achieved revenue of 1.317 billion yuan in the first three quarters, an increase of 87.9%.

As of September 2025, Miniso operated 7,831 stores, a net increase of 645 stores year-over-year. In Mainland China, there were 4,407 stores, a net increase of 157; overseas stores numbered 3,424, a net increase of 488.

The announcement indicates that based on sales data from the first two months of 2026, Miniso continues to show positive momentum. In Mainland China, GMV (Gross Merchandise Value) increased by over 25% year-over-year, with same-store GMV growing at least in double digits. In North America, GMV in the U.S. increased by over 50% year-over-year, with same-store GMV up at least 20%.

However, it is undeniable that the company’s large-scale investment in overseas directly-operated stores, especially in strategic markets like the U.S., has led to a sharp rise in sales and marketing expenses. In Q3 2025 alone, Miniso’s promotional, advertising, licensing, and logistics costs increased by 43.3%, 20.8%, and 23.3%, respectively. In the first three quarters of 2025, operating expenses reached 4.496 billion yuan, up 41.88% year-over-year, exceeding the total for 2024. Sales expenses were 3.611 billion yuan, up 43.4%; general and administrative expenses were 848 million yuan, up 29.4%.

For 2026, UBS forecasts that Miniso’s China market will achieve positive same-store sales growth, though the specific rate is yet to be determined. Due to high consumer price sensitivity in Southeast Asia and an overstock of IP-related inventory in 2025, products are relatively expensive, requiring inventory clearance before new product launches. The overseas ordering fair in September 2025 has shifted back to high-cost-performance products (for Spring/Summer 2026). The U.S. market is expected to reach 350 stores by the end of 2025, with accelerated store openings in 2026. The company’s online retail business achieved profitability in Q3 2025, and profitability in the U.S. and Indonesia markets is expected to improve year-over-year in 2026. Overseas distribution and Chinese operations are expected to maintain stable gross profit margins, but overall gross margin will depend on the expansion pace of the U.S. business, which has relatively lower margins.

Keywords for Investment Timing: Miniso (MNSO.N, 9896.HK) | Yonghui Superstores (601933.SH)

Author’s note: Personal opinions for reference only.