26H1
Filed Aug 31, 202626H1 revenue grew by 22.4% YoY to RMB11,498.9 million, while adjusted net profit excluding FX declined by 1.7% YoY to RMB1,221.6 million amid higher selling and distribution expense.
Revenue, operating cash flow, Chinese mainland growth and store expansion were strong, but expense deleverage compressed margins, adjusted profit excluding FX declined, and 26Q2 reported a loss driven by investment fair-value losses and foreign exchange losses.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, 26H1other | RMB11,498.9 million (US$1,694.7 million) | – | 22.4% |
| Gross profit, 26H1other | RMB5,093.7 million (US$750.7 million) | – | 22.5% |
| Gross margin, 26H1other | 44.3% | – | flat year over year |
| Cost of sales, 26H1other | RMB6,405.2 million (US$944.0 million) | – | 22.3% |
| Selling and distribution expenses, 26H1other | RMB3,045.0 million (US$448.8 million) | – | 39.6% |
| Selling and distribution expenses excluding SBC, 26H1non-GAAP | RMB2,961.5 million (US$436.5 million) | – | 36.7% |
| General and administrative expenses, 26H1other | RMB590.9 million (US$87.1 million) | – | 17.3% |
| General and administrative expenses excluding SBC, 26H1non-GAAP | RMB550.8 million (US$81.2 million) | – | 15.5% |
| Operating profit, 26H1other | RMB1,639.9 million (US$241.7 million) | – | 6.1% |
| Operating margin, 26H1other | 14.3% | – | – |
| Adjusted operating profit, 26H1non-GAAP | RMB1,486.2 million (US$219.0 million) | – | – |
| Adjusted operating profit excluding FX, 26H1non-GAAP | RMB1,628.6 million (US$240.0 million) | – | 5.0% |
| Adjusted operating margin excluding FX, 26H1non-GAAP | 14.2% | – | – |
| Net finance costs, 26H1other | RMB212.0 million (US$31.2 million) | – | – |
| Effective tax rate, 26H1other | 26.2% | – | – |
| Adjusted effective tax rate, 26H1non-GAAP | 24.8% | – | – |
| Profit for the period, 26H1other | RMB956.6 million (US$141.0 million) | – | 5.6% |
| Net profit margin, 26H1other | 8.3% | – | – |
| Adjusted net profit, 26H1non-GAAP | RMB1,079.1 million (US$159.0 million) | – | – |
| Adjusted net profit excluding FX, 26H1non-GAAP | RMB1,221.6 million (US$180.0 million) | – | (1.7)% |
| Adjusted net margin excluding FX, 26H1non-GAAP | 10.6% | – | – |
| Adjusted EBITDA, 26H1non-GAAP | RMB2,255.5 million (US$332.4 million) | – | 3.1% |
| Adjusted EBITDA margin, 26H1non-GAAP | 19.6% | – | – |
| Basic earnings per ADS, 26H1other | RMB3.16 (US$0.47) | – | 6.8% |
| Diluted earnings per ADS, 26H1other | RMB3.16 (US$0.47) | – | 8.2% |
| Adjusted basic and diluted earnings per ADS, 26H1non-GAAP | RMB3.56 (US$0.52) | – | – |
| Net cash from operating activities, 26H1other | RMB1,475.4 million (US$217.4 million) | – | 45.5% |
| Capital expenditure, 26H1other | RMB724.6 million (US$106.8 million) | – | – |
| Free cash flow, 26H1other | RMB750.8 million (US$110.6 million) | – | – |
| Revenue, 26Q2other | RMB5,810.5 million (US$856.4 million) | – | 17.0% |
| Gross margin, 26Q2other | 45.3% | – | – |
| Operating profit, 26Q2other | RMB118.5 million (US$17.5 million) | – | – |
| Loss for the period, 26Q2other | RMB291.5 million (US$43.0 million) | – | – |
| Adjusted net profit excluding FX, 26Q2non-GAAP | RMB588.4 million (US$86.7 million) | – | – |
| Net cash from operating activities, 26Q2other | RMB1,110.2 million (US$163.6 million) | – | – |
| Free cash flow, 26Q2other | RMB656.2 million (US$96.7 million) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| MINISO Brand, 26H1Chinese mainland revenue increased by 26.2%, powered by mid-single digit SSSG, while overseas markets revenue increased by 14.9% with low-single-digit decline in same-store GMV. | RMB10,513.2 million (US$1,549.5 million) | – | 21.6% |
| MINISO Chinese mainland, 26H1Powered by mid-single digit SSSG. | RMB6,453.955 million (US$951.195 million) | – | 26.2% |
| MINISO overseas markets, 26H1Low-single-digit decline in same-store GMV; overseas markets revenue contributed 38.6% of revenue from MINISO brand, compared to 40.9% in the same period last year. | RMB4,059.270 million (US$598.262 million) | – | 14.9% |
| TOP TOY Brand, 26H1Revenue from TOP TOY brand only represents revenue generated from external parties. | RMB984.6 million (US$145.1 million) | – | 32.7% |
| MINISO Brand, 26Q2Chinese mainland revenue increased by 22.9% and overseas markets revenue increased by 9.1%. | RMB5,339.8 million (US$787.0 million) | – | 17.0% |
| TOP TOY Brand, 26Q2Revenue from TOP TOY brand only represents revenue generated from external parties. | RMB470.1 million (US$69.3 million) | – | 16.9% |
Capital returns
- Share repurchase of RMB517.6 million deployed by the Company in 26H1.
- In June 2026, the Board approved 2026 share repurchase program of up to HK$2.0 billion.
- The Company returned a total of RMB1.31 billion to shareholders by cash dividends and share repurchases.
- Returns accounted for 121% of the adjusted net profit for 26H1, compared with the 50% payout ratio per the current dividend policy.
What drove it
- Total store count reached 8,674 as of June 30, 2026, a net increase of 769 YoY and 189 YTD.
- MINISO Brand totaled 8,309 stores, up 697 YoY and 158 YTD. Chinese mainland had 4,665 stores and overseas markets had 3,644 stores.
- TOP TOY Brand totaled 365 stores, up 72 YoY and 31 YTD.
- About 48.4% of new MINISO stores in the past twelve months were located in overseas markets.
- YOYO achieved monthly sales exceeding RMB100 million in both June and July 2026.
- Members of MINISO Chinese mainland grew 31.0% YoY to about 130 million and contributed 77.4% of local sales. United States members grew 107.1% YoY to about 5.8 million and contributed 60.1% of local sales.
- The Company entered Switzerland in 26Q2, extending its footprint to accumulative 113 countries and regions. TOP TOY entered the United States and Taiwan, China.
Concerns
- Selling and distribution expenses excluding SBC were 25.8% of revenue in 26H1, compared with 23.1% in the same period last year. The 2.7-percentage-point increase was the main driver of the YoY decline in adjusted net profit margin excluding FX.
- 26Q2 selling and distribution expenses excluding SBC were 27.0% of revenue, compared with 23.2% in the same period last year.
- 26Q2 operating profit was RMB118.5 million and operating margin was 2.0%, compared with RMB836.2 million and 16.8% in the same period last year.
- 26Q2 loss for the period was RMB291.5 million, driven in part by an unrealized mark-to-market loss of RMB597.2 million on an investment in a limited partnership investing in the AI industry and a net foreign exchange loss of RMB59.9 million.
- Net finance costs increased to RMB212.0 million in 26H1 from RMB128.4 million in the same period last year.
- Overseas markets had a low-single-digit decline in same-store GMV in 26H1.
What to watch
- The realization of the estimated more benefit in coming quarters of about US$4.1 million from tariff refunds.
- Selling and distribution expense as a percentage of revenue, including depreciation and amortization and rental, promotion and advertising, licensing, and payroll expenses.
- Chinese mainland mid-single digit SSSG and overseas same-store GMV.
- The performance and fair-value movements of the limited partnership investment in the AI industry.
- Store rollout and localization across overseas markets, including North America, where MINISO stores totaled 536 as of June 30, 2026.
- Execution of the up to HK$2.0 billion 2026 share repurchase program.
Balance sheet and cash flow
- Cash position was RMB7,394.2 million (US$1,089.8 million) as of June 30, 2026, compared to RMB7,087.9 million as of December 31, 2025.
- Cash and cash equivalents were RMB7,046,857 thousand as of June 30, 2026, compared to RMB6,817,129 thousand as of December 31, 2025.
- Total loans and borrowings were RMB6,287,885 thousand in non-current liabilities and RMB2,352,982 thousand in current liabilities as of June 30, 2026.
- Net cash from operating activities was RMB1,475.4 million (US$217.4 million) for 26H1, with a cash conversion ratio of 1.4.
- Net cash from operating activities was RMB1,110.2 million (US$163.6 million) for 26Q2, with a cash conversion ratio of 2.1.
Analysis
MINISO delivered 26H1 revenue growth of 22.4% to RMB11,498.9 million, led by MINISO Chinese mainland, where revenue increased 26.2% on mid-single digit SSSG. TOP TOY grew 32.7%, ahead of the group rate. Overseas MINISO revenue rose 14.9%, but the business recorded a low-single-digit decline in same-store GMV and its contribution to MINISO Brand revenue decreased to 38.6% from 40.9% in the prior-year period.
The gross-profit result broadly matched revenue growth, with gross profit up 22.5% and gross margin flat at 44.3%. The period included a benefit of about 0.6% from tariff refunds. Profit conversion weakened below gross profit. Selling and distribution expenses excluding SBC rose 36.7% and reached 25.8% of revenue, versus 23.1% a year earlier, reflecting directly operated store depreciation, amortization and rent, promotion and advertising, IP licensing, and overseas payroll. As a result, adjusted operating profit excluding FX rose 5.0%, while adjusted net profit excluding FX declined 1.7% and its margin fell to 10.6% from 13.2%.
Reported 26H1 profit for the period nevertheless increased 5.6% to RMB956.6 million. This included an unrealized RMB277.4 million mark-to-market gain on an investment in a limited partnership investing in the AI industry and RMB60.3 million of share of profit from Yonghui. Those items were partly offset by a RMB142.4 million net foreign exchange loss, higher selling and distribution expense, and higher net finance costs. The second quarter was materially weaker on reported measures: operating profit was RMB118.5 million, loss for the period was RMB291.5 million, and the operating margin was 2.0%, as the limited partnership investment generated an unrealized RMB597.2 million loss and the Company incurred a RMB59.9 million foreign exchange loss.
Cash generation was stronger than earnings. Net cash from operating activities increased 45.5% to RMB1,475.4 million in 26H1, with a cash conversion ratio of 1.4; free cash flow was RMB750.8 million after RMB724.6 million of capital expenditure. The Company ended June with a cash position of RMB7,394.2 million and returned RMB1.31 billion through dividends and repurchases, including RMB517.6 million of share repurchases. The Board also approved a 2026 share repurchase program of up to HK$2.0 billion.
Store expansion remained active, with the group network rising to 8,674 stores, up 769 YoY. The release provides no formal forward financial guidance. Near-term reported margins will be affected by the estimated more tariff-refund benefit of about US$4.1 million in coming quarters, while the central operating issues are whether Chinese mainland SSSG remains positive, overseas same-store GMV recovers, and selling and distribution expense growth moderates relative to revenue.
Management, verbatim
Despite a challenging consumer environment in the domestic market during 26H1, we are pleased to see that MINISO Chinese mainland delivered a standout performance, with revenue growing 26.2% YoY, our fastest first-half growth rate in the past three years, driven by mid-single-digit SSSG. MINISO overseas markets grew 14.9% YoY, while TOP TOY grew 32.7% YoY.
Guofu Ye, Founder, Chairman and CEO of MINISO
During 26H1, revenue on group level grew by 22.4%. Adjusted operating profit excluding FX grew 5.0% YoY to RMB1,628.6 million. Net cash generated from operating activities reached RMB1,475.4 million, while adjusted net profit excluding FX was RMB1,221.6 million in the same period, demonstrating strong resilience and robust operational cash flow generation of our business.
Eason Zhang, CFO of MINISO
We have returned a total of RMB1.31 billion to shareholders by cash dividends and share repurchases, accounting for 121% of the adjusted net profit for 26H1, which far exceeded the 50% payout ratio per our current dividend policy.
Eason Zhang, CFO of MINISO
Not in the filing
stated, not guessed- Formal forward financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, cash flow, capital expenditure, store openings, or other operating metrics was not provided.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Prior-quarter figures and quarter-over-quarter changes for the reported metrics were not provided on the relevant line items.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.