On August 21, MINISO Group Holding Limited (NYSE: MNSO; HKEX: 09896) released its 2Q and 1H 2025 results. On August 22, the Hong Kong stock opened sharply higher and at one point surged more than 20%, hitting a near six-month high, supported by faster revenue growth, margin improvement, a strong performance at TOP TOY, and cash returns via dividends and buybacks. Overnight, its NYSE ADR advanced about 6%.

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Key Takeaways: Faster Revenue Growth, Higher Gross Margin, Double-Digit Growth in Adjusted Net Profit

In 2Q, revenue reached RMB 4.97 billion, up 23.1% year over year and above the top end of prior guidance; quarterly gross margin was 44.3%, up about 0.4 percentage point year over year; adjusted net profit was RMB 690 million, up 10.6% year over year. For 1H, revenue was RMB 9.393 billion, up 21.1% year over year. The Company also declared an interim cash dividend of USD 0.2896 per ADS (USD 0.0724 per ordinary share).

Note that under IFRS, net profit attributable to shareholders for 1H was approximately RMB 906 million, down about 22%–23% year over year, mainly due to finance costs and fair-value changes related to share-linked securities; on an adjusted basis, earnings remained positive year-over-year.

Segments and Stores: Solid MINISO Core + High-Growth TOP TOY; Mainland Store Openings Resume, Overseas Expansion Accelerates

Group revenue in 2Q was RMB 4.966 billion (+23.1% YoY) with a 44.3% gross margin. By brand, the “MINISO” brand delivered revenue of RMB 4.563 billion (+19.5% YoY), including RMB 2.621 billion in Mainland China (+13.6%) and RMB 1.942 billion overseas (+28.6%); TOP TOY recorded RMB 402 million (+87.0% YoY), the fastest 2Q growth on record. The Company said like-for-like GMV turned positive in the June quarter: MINISO brand comps were flat overall (low-single-digit growth in Mainland China and low-single-digit decline overseas), while TOP TOY comps were in low-single-digit growth—indicating a dual-engine recovery driven by the core brand and the designer-toy business.

Store network: clear “restart after pause” in Mainland China—net +30 MINISO stores in 2Q to 4,305 in total; by city tier: Tier-1 at 572, Tier-2 at 1,774, and lower-tier cities at 1,959. Overseas stores were net +94 in the quarter to 3,307: Asia ex-China 1,695, North America 394, Latin America 661, Europe 319, and Others 238. TOP TOY stores totaled 293, modestly up year-to-date. With the large-format/flagship strategy and new concepts such as MINISO LAND and MINISO SPACE, “lighthouse stores + IP-themed spaces” are becoming key levers to lift traffic and basket size in both domestic and overseas markets.

Overseas operating quality improved as well. The Company opened flagships in prime districts of Seoul, Melbourne, and Bangkok; in the U.S., the large-format model drove revenue growth of over 80% year over year in 2Q, pointing to better sales per square foot and rent-to-sales ratios in high-energy trade areas.

Market Reaction and Outlook: Strong Rally with Rising Turnover; Watch SSS Sustainability and Cash-Return Intensity

In the morning session, MINISO (09896) opened higher and extended gains to around 16% at one point, with the share price briefly approaching HKD 45 and turnover quickly expanding to roughly HKD 700–850 million, lifting broader “new consumption” names. The overnight ADR gain further supported sentiment. Management reiterated the recovery cadence in same-store sales at the results briefing. The market’s focus centers on the synergy of SSS improvement + efficient store expansion + product/IP mix optimization.

On operations, management raised full-year revenue growth guidance to “no less than 25%”, more upbeat than before; it also declared an interim dividend of USD 0.2896 per ADS. For 1H, buybacks plus dividends totaled about RMB 1.07 billion, underscoring a steady shareholder-return stance. Near term, if Mainland SSS continues to accelerate into 3Q, overseas replication of large-format stores in top trade areas proceeds, and TOP TOY maintains high growth, fundamentals could support further re-rating. Key variables to monitor include FX and finance costs related to share-linked securities impacting IFRS earnings, changes in expense ratios from store-mix optimization, and the sustainability of sell-through for key IPs and new products.

How to Buy MNSO on uSMART

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