Hello, everyone. In H1, MINISO Group revenue reached 11.5 billion, up 22.4%.

EPS grew 8.2%, and operating cash flow rose 46%. Our global store account accounted 6-- 8,674.

MINISO today stand at a pinnacle moment as we operate a larger and a better store, building our own proprietary IP, and develop our overseas organizational capacity. Opportunities and challenges coexist.

I firmly believe the strategic direction and the stage-by-stage significance of those initiative matter far than the near-term number. I will walk you through our business performance this quarter across three segments, including MINISO China, MINISO overseas, and TOP TOY.

Official data showed that China total retail sale of the consumer goods grew by 1.3% on YoY basis in H1 of this year. Against this macro backdrop, MINISO China H1 revenue grew by 26.2%, not only far outpacing broad retail sales, but also exceeding our prior guidance.

This was our fastest H1 growth rate in the past three years. Importantly, the quality of the growth is truly high, driven primarily by the mid and high single-digit gross number.

On the channel side, as of the end of 2022-- the Q2, MINISO China store count reached 4,665, with a net addition of 97 stores in H1. Among which, land-format store addition, net addition, 59; flagship-format store, 159; regular store recorded a net closure of 121.

On August the 22nd, MINISO Land Chengdu Eastern Suburb Memory store officially opened, marking our 100th Land store here in China. Store count number was growing solid, but the quality is even more important.

At the end of June, our China store count was up 8%, but the revenue grew by 26%, reflecting a substantial increase in per store output and healthy growth in the overall sales per square meter. I'd like to show you three sets of data.

Sales per square meter and the rental ratio varied each month. The Land-format store delivers sales per square meter roughly twice as that of the regular store.

Compared with the existing store, the store newly opened in 2026 are significantly larger, yet the sales per square meter held steadily, with rent-to-sales ratio improved. To malls, our new store model is no longer a mere tenant, but also the engine for foot traffic.

Secondly, our store renovation pace continued to accelerate. We completed 189 store renovations in H1.

Post-renovation, store net performance been doubled YoY. Against a full-year renovation target of 355, we have every confidence to exceed it by the end of this year.

Thirdly, franchise return continued to improve. Whether measured by the payback period, the profit margin, or proportion of the profitable store, the profitability of the MINISO Land worldwide and MINISO store nationwide in H1 reached its best level since 2019.

Franchisees are increasingly willing to open larger and better store, which is the most direct endorsement for our channel strategy. From swapping the cage to bring the better birds to large store-driven growth, our channel upgrade strategy has underway for 2 years, 2 years, and remains significantly for the future.

This assessment weighs the two facts. First, the proportion of the renovated store in China remained low.

The second, we continue to innovate on the store format. This year, we introduced a new member to our store matrix, that is Super MINISO, the most important innovation of 2026.

Looking back to the evolution of our channel upgrades over the past 2 years, in 2024, MINISO Land validated the IP-immersive flagship store. In 2025, MINISO Friends entered into mid- and high-end shopping districts in the affordable luxury tiering.

In 2026, Super MINISO store bring the IP experience to the broader mass consumer base. Its product matrix was 50% IP merchandise plus 50 general lifestyle products.

Since its launch, it has become one of the most popular store formats among the consumers. The clever aspect of our Super MINISO is not-- it's not overturn the consumer existing brand perception.

Rather, it's build upon them. It retain consumer's familiarity with MINISO, value-for-money merchandise, while injecting freshness and treat-driven experience through IP.

Other formats like Friends, Land, and the Space progressively deepen the IP merchandise and mind-mindshare share, helping consumer move from lifestyle general merchandise to IP wonderland as part of the brand upgrade. I'd like to say, the success of the large store is not merely channel innovation.

It's a systematic innovation by having content plus space and operation. The store is a space.

IP is a soul to fuel it. The momentum of the large store and value of the IP reinforce each other, forming an ever-accelerating flywheel.

In June last year, we launched DUDU, our first proprietary IP. Within just 1 year, DUDU has entered into 15-- 3 countries worldwide, generating nearly RMB500 million in related revenue in H1.

The most iconic milestone was DUDU plus Disney Toy Story 5 collection. DUDU version of Woody, Buzz Lightyear, and Slinky Dog sold strongly across stores in multiple countries.

In just 1 year, DUDU success has propelled its validated proprietary IP to a new stage where it can engage top-tier global IP as an equal. Beyond the MINISO flagship store and the brand, the TOP TOY has also built its own IP matrix.

Its flagship IP, Nommi, has surpassed RMB300 million in cumulative GMV. You can see that while DUDU validated the methodology within our flagship brand, Nommi, Yoyo, and Twinkle has proven different style under the TOP TOY Land brand.

Around proprietary IP, we have accumulated a full-chain SOP spanning artist signing, product definition, design to development, supply chain scheduling all the way to pre-launch, standing, debug channel, in-store events, and the fan operation. Our group-wide target of RMB1 billion in proprietary IP sales, set at the beginning of this year, was achieved ahead of schedule by the end of July.

This all proven our multi-IP, multi-category globalization strategy is successful. They fully demonstrate MINISO's unique resources endorsement in building proprietary IP.

We have the full-category coverage, all-channel penetration, global footprint, and the full-chain operation. Looking across the globe, MINISO only possesses the greatest flexibilities and expandabilities in product categories, the strongest control and innovation capacity in channel, the broadest and the highest quality global store network in terms of the footprint.

On the operation front, MINISO leverage its full-chain advantage from signing scientists, to design to development, to marketing, and selling product. We deeply empower artists at every stage, maximize the potential of each IP.

Those are precisely MINISO's highly differentiated and scarce resources, and they are also the key to MINISO's leap-forward development and overtaking in the proprietary IP. There are four fulls enable us to complete the entire process from IP concept to shelf more efficiently than the vast majority of the companies.

Everyone, DUDU is just the beginning. On August the 22nd, we newly launched artist IP, Chouchou, sold out entirely on its debut day, far exceeding expectation.

We have already signed multiple designer toys. You can see on the evening of 26th, 5,000 sets of Chouchou was sold live within 1 second.

At the same time, we have already signed multiple designer toy artists, recruiting top creative talents worldwide through our IP Prodigy program. Our ambition is going forward leading 100 Chinese IP onto the global stage.

At the moment, global IP market is entering to unprecedented boom. The rise of the great nation is inevitably accompanied by the birth of the cultural symbol and their global export.

MINISO were backed by our world-leading channel, product, and IP operation to secure our top position in this historical moment. Our vision is to become the world's leading IP operating platform.

Measured by channel scale, we are already the world's largest retailer of the IP products, and our proprietary IP business is building a new growth engine that is at once distinctive, explosive, and replicable. Our strategic pivot towards proprietary IP is a long-term choice grounded in the trend of our era.

We will sustain long-term investment. Even in the short term, the proprietary IP product line has deliver excellent report card.

We not only have DUDU proven to be success, same as Chouchou, our second IP. In its H1 profit margin was above company average.

Inventory turnover was kept within 30 to 40 days. Proprietary IP strategy has placed no pressure on overall profitability, laying a solid foundation to continue our IP ecosystem.

Coming next, I'm going to talk about membership strategy. Last year, I said membership would become another important engine for MINISO growth.

The value of the strategic membership is steadily materialized. Member scale and contribution continue to reach new level.

In H1, our China membership grew by 31%, reaching 130 million, the all-time high. Member contribution sales rose to 57% in the same period of last year to 60% for the full year last year and 33% in Q1 and further 77% now.

While at the same time, membership is the latest evidence of MINISO's growth shifting from the opportunity-driven to the system-driven. The value of the membership manifested in two sides: the core engine of lifting average transaction value.

Average transaction value rose by 5%. Working with global IP, for example, like Sanrio, Disney, and Harry Potter, as well as Chiikawa, combined with the blockbuster effect of our proprietary IP, large store has become the core stronghold of the high-value members.

As a result, per-customer contribution of China member was two times higher of the non-member. Average transaction value of IP member is more than three times of the non-IP members.

Secondly, the top-level engine to improve the retention through the precise targeting and benefit-driven retention that can help to further extend the active lifetime. Our precise identification of the member consumption preference and the category needs enable new product to reach targeted consumer efficiently.

We'll upgrade the benefits such as the cashback credit turn into the purchase into direct momentum for the next purchase. IP member newly acquired in 2025, the retention rate in H1 of this year was 80% point higher than non-IP members, with purchase frequency two times higher than the non-IP members.

Member who used cash back credit repurchased 1.6 times frequent than those no members. IP-driven acquisition and a large store quality upgrade and repurchase extension is our underlying formula to achieve highly sustainable membership value.

When we have scale, structure, and frequency driving together, they would be able to sustain the long-term success. Let's also take a look at the overseas market.

In H1 of this year, overseas revenue grew by 40.9% to RMB4.06 billion. Store number accounted for 3,644.

Frankly speaking, overseas performance fell short of our expectation, weighted somewhat our group profit. The overseas contribution to company profit declined from 35 to 40 in 2023 to 10 to 15% in H1 of this year.

The impact are coming from two factors: first of all, a decline in distributor business revenue; and secondly, our direct-operated market outside North Europe-- US-- America still remain in early investment stage. The store model are still in the refinement and not yet profitable.

We also made some internal review for those issues. In expanding our overseas directly-operated store, we will be more focused and more prudent, rigorously assessing ROI of the new stores, concentrating resources to deepen our presence in priority markets.

I ask them to slow down the pace of the store openings unless you have 100% confidence. In H2, we will first concentrate on operating our existing 800 existing overseas directly-operated store and replicate after a single-store model matures.

Overseas market is our vast horizon. Short-term fluctuation won't change our long-term growth trend.

We are correcting our past growth approach that overemphasized on scale and the store count so that the terminal sales growth, inventory turnover, and headquarter shipment once again would form a closed loop in a healthy way. That now it is also the time for us to really improve the performance in overseas market.

Our overseas mini-- business is now in the holding stage. We would like to make sure we refine our store model.

More importantly, we need to make sure the China transformation will be successfully validated in the international market. It's actually the time for another upgrade for the international market.

That's the reason we have already made significant adjustment and the transformation for international business. I would like to take this opportunity to encourage our overseas teams.

From 2015 to now, our overseas journey has been spanned 11 years. The deeper we go overseas, the more profound I can realize how difficult it is for a Chinese company to truly gain a solid foothold and earn sustainable profit abroad.

It was not a product strength and supply chain, but also organizational capacity, management control model, and localization strategy. MINISO overseas business has been profitable from day one.

Yet, we must recognize overseas challenges today are precisely a sign that MINISO globalization has entered into deep-water stage. As a share of the direct-operated business rise, we must settle in and pursue refined operation, localization, stronger organizational capacity, and a globalized management control model while solidifying our management fundamentals.

We see many international consumer brands entered into China did well in the past one decade, but started to incurring losses in recent years. No matter international brands come to China or Chinese brands go for international market, we have to be adaptive.

Otherwise, profit would be nothing to be talked about. This is also the so-called secondary upgrading and transformation every company need to have face if they go for internationalization.

MINISO China transformation over the past few years achieved a great success. We have a preliminarily realized brand upgrade and business model iteration.

China business started to burst with fresh vitality. The challenge we are facing for overseas business today is essentially the same as China 3 years ago, shifting from the scale-first to quality-first.

Over the past 3 years, China delivered its transformation report card from land-grabbing expansion to Wonderland-style upgrade and then the refined operation. This methodology applies equally to overseas market.

We are never short of the product, supply chain, or channel. What we lack of is more patience to fully refine the single-store model.

Going global is marathon. Every adjustment and every investment we made today lays a solid foundation for the long-term value.

Every additional good store MINISO open overseas, every additional consumer well served, every additional member accumulated brings us one step closer to our vision of becoming a world-leading IP operating platform. I have faith in my overseas team.

Give them time. Give them patience.

I believe that overseas market tomorrow will surely better than what we have today. Coming next, please allow me to talk about TOP TOY.

In H1, TOP TOY revenue was grow by 32.7%. Global store number 365, including 48 overseas.

This quarter, TOP TOY first US store is being located in Times Square of New York, making it the first China designer toy brand entered into the crossroad of the world. In H1, proprietary IP accounted for 10% of TOP TOY sales, with proprietary IP matrix continue to expand.

We have some pop-up events that are quite popular, especially DUDU, especially in Hangzhou debut. A single month GMV is already more than 50 million.

Coming next, I'm going to welcome Eason to walk you through the financials in H1 of this year, please.

Okay. Thanks for Mr.

Ye. Now, I will walk you through our key financial metrics.

Today, rather than going through the financial lines by line, I will offer some explanation on several data points that are top of the mind for you. Let's review how we performed against H1 2026 guidance we give to you in the May earnings call.

H1 revenue, which is in line with China's same-store guidance, but not that for the North America market. H1 revenue grew by 22.4%, slightly ahead of our guidance, that is 20% to 22%.

On that, China revenue grew by 26.2% in H1, with Q2 in particularly grew by 23% versus our earlier expectation of only a low double-digit growth in China for Q2. This upside in China came from two factors: first of all, an accelerated channel upgrade.

China saw net addition of 25 stores in Q1, but 72 in Q2, far exceeding our projection of around 40. Secondly, the sales contribution from proprietary IP, especially DUDU.

China same-store sale also achieved the guided mid-single-digit growth. For DUDU, the proprietary IP saw a very good growth.

As Mr. Ye has already mentioned, for the short run, our proprietary IP deliver excellent results.

The profit of our proprietary IP product is higher than the company's average level, and the inventory turnover has been controlled within 30 to 40 days. For sure, 30 and 40 days may still be short of the supply now.

We are improving. In that way, proprietary IP is not pressuring our overall financial of the company.

Overseas revenue grew 15% in H1, below our guidance of a high double-digit growth. The main reason was a 10% decline in distributor business revenue.

Both Asia and Latin America markets experienced temporary revenue declines. As I have already shared with you, North America mid single-digit same-store sales growth came in below our prior guidance of the high single to low double digits, largely because we see the weakening of the same-store performance in North America in June.

I will walk you through the reason later. Adjusted operating profit, excluding the forex gains and loss, grew by 5% on YoY basis, slightly below our earlier projection of the high single-digit growth, mainly due to the decline in distributor revenue, a high-margin part of our business.

In H1, MINISO overseas offline GMV grew by 40% on YoY basis to RMB8.29 billion billion. The revenue grew by 50%, reaching 4.06 billion.

Let me just break down by region. Let's take a look at Asia.

In H1, Asia terminal GMV grew by low single digit YoY, while revenue declined a low single digit YoY. Markets such as Indonesia, India, and the Philippines were the main driver weighting on Asia overall performance.

Objectively speaking, those markets are facing macro challenges, but it is undeniable that our localized operating capacity still have some further room to improve. Our localized understanding of the market shifts and the product-to-channel matching are not deep enough.

Our merchandise planning, channel strategy, and terminal execution are not as efficient as what we have made in China business. At the same time, we proactively cleaned up a batch of underperforming, low-efficiency stores.

For example, in markets such as Philippines, we closed stores with outdated formats and persistently weak output, which had some short-term impact on the revenue. This clean up of the low-efficiency store in overseas distributor market will continue for another two quarters.

We can also see that for market like Vietnam, following an earlier phase of the pioneer and store closure and the product mix adjustment, it already started to show improvement. In H1 of this year, its efficiency has been continued to improve, the best in the past three years.

Vietnam same-store sale grew by 20% in Q2, with continued positive growth momentum. This shows our future direction is correct.

Going forward, we will continue to deepen our understanding of the Asia market, enhancing our localized operating capacities in market-specific manner, focusing on channel upgrades and product mix adjustment, actively explore product assortment and price brands adapting to the change of the local consumption market. Let's talk about Latin America.

In H1, Latin America terminal GMV grew by high single digit YoY, but revenue declined by low double digit YoY. These were several reasons for this divergence.

For example, a number of the core market, including Colombia, faced multiple external challenges, such as political volatilities, rising freight cost, natural disaster, which had a fierce impact on the overseas orderings and the shipments. However, the terminal demand remain resilient.

For example, the top four Latin American countries contribute 80% of our performance here, all delivering solid terminal GMV growth in H1, with Mexico also post high single-digit growth, excluding the forex in- impact. Actually, if you use the local currency, the Mexico local GMV was grown by nearly 20%.

As external adjustment fading away, disruption fading away, we have our confidence for the long-term development. The third part would be the North America market.

North America market, in H1, revenue grew by 37%, reaching close RMB1.8 billion, broadly in line with our expectation, with a single-- with a mid-single-digit same-store growth. By Q-- quarter, Q2 revenue grow moderately, slightly to 25%, where 2-year CAGR held at around 50%.

However, in Q2, the 2-year CAGR was still around 50%, 5-0, resilient performance against the high base. The moderation was mainly due to three factors.

A temporary gap in the cadence of IP product launches. North America has a high share of IP product and is therefore more sensitive to the IP launch cadence.

In H1 of this year, we didn't maintain a sufficiently steady launch frequency, which impacted the store traffic and conversion to a certain extent. This was a providing valuable lesson for optimizing our IP product cadence planning going forward.

Secondly, the sales share of the locally-directed-sourced product in the US market used to exceed 50%, but not fully in line with our plan at the very start of this beginning. Earlier this year, against the backdrop of the tariff policy changes, we set out to control and gradually reduce the share of overseas direct sourcing.

You can see the direct sourcing are focusing on the category that are not operated by the headquarter. However, it takes time to adjust the product matrix, which was not being reflected in H1.

Going forward, we will further improve the advanced planning of the overseas merchandise. Thirdly, the out upfront cost investment for the newly-directed directly-operated store.

We have a net increase of 75 stores in H1, nearly double the same period of last year. The upfront investment will have some short-term impact on the profitability.

A good news is that the new stores opened for this year deliver significantly higher profit margin and sales per square meter than older ones, outperforming in site selection, quality, channel matching. Enter into H2, we will shift our focus to deepen our store operation and running our already opened store deep and thorough.

For the full year, North America and Europe market will still maintain relatively high growth. As for North American store will continue to prove out the success rate.

We expect North America will reach close to RMB4 billion in scale, with 10% net margin for the full year. Europe is also a market we are positive on, but is still in the early stage for direct operation development, fluctuation is expected.

In H1, Europe revenue growth moderated to 26%, with same-store sales down by single-- mid- to single-digit. Our European team is building organizational capacity, refine the store model.

Let's give them the confidence and the patience to allow the market to proven our strategy. In H1 of 2026, MINISO Mainland China achieved a mid-high mid-single-digit same-store growth, in line with our expectation, leaving ample room for our full-year target of low single-digit same-store growth.

MINISO overseas same-store sale declined low single digit, with North America achieving a mid-single-digit same-store growth. North America same-store performance was quite strong in Q1, grew by 10%, but moderated in Q2, particularly because the stockout of the certain bestseller, especially the best-selling IP product.

We expect this stockout would be eased in September. In H1 of 2026, the GP margin was 44.3%, flat versus same period of last year.

For the GP margin, it was including approximately 0.6 percentage point from the US tariff refunds. For Q2, the GP margin was 45.3%, 1 percentage improvement compared with last year.

This was due to the tariff refunds, which bring 1.2 percentage positive growth. Based upon the refunds received to date, the company expects tariff refunds will also have the 20 bps to 30 bps support to the overall GP margin for the next two quarters.

Excluding the extraordinary investment and convertible bonds financing, the profitability of our core business in H1 was as follows: adjusted operating profit was RMB1.49 billion versus RMB1.59 billion in H1 last year, down by 6%. Excluding the forex effect, the figures was RMB1.63 billion and RMB1.55 billion, grew by 5%.

Excluding the forex exchange effect, the adjusted net profit was RMB1.22 billion and RMB1.24 billion, down by 1.7%. The corresponding adjusted net margin declined by 2.6 percentage on YoY basis.

This was also proving that our selling expense ratio rose 2.7 percentage this period with. Last year, it was 23.1%.

To be specific, rental and depreciation expenses related to directly-operated store rose from 7.1% of the revenue to the same period in the same period of last year and to 8.1% in H1 of this year, grew by 1%. Advertising promotion expense grew by 2.8%, where regarding IP licensing fees rose from 2.6% in H1 last year to 3.1% in H1 of this year, grew by 0.5%.

The increase in the two items largely reflect our strategic investment in proprietary IP. Selling-related labor cost rose from 6.8% last year to 7.2% this year, up by 0.4 percentage point.

The growth of the above four expenses altogether contribute to 2.6% of the expenses increase. By business unit, on this slide, it shows very clearly.

The main reason for the YoY margin decline was a structural shift in the revenue. For example, in H1 of 2026, the revenue contribution from high-margin franchise and distributor business, the margin was more net profit margin was more than 30%, but is now fell 6 percentage point, while the contribution from the overseas directly-operated business rose by 3 percentage point.

However, last year, this number was a single-digit loss. Let's also take a look at the working capitals.

Inventory turnover in H1 was 102 days versus 97 days in same period of last year. MINISO China inventory turnover was 67 days, which was 73 days last year.

MINISO overseas inventory turnover for international market was 27 3 273 days, which was 240 days last year. Going forward, our overseas business must prioritize inventory health and take decisive measures to react to support the inventory.

Besides that, in the peak seasons, we have to leverage on the IP launches and holidays for those sales peak time. Coordinate membership promotion and gifting activities to use blockbuster products to drive the monetization of the slow-moving inventory.

At the end of June, our cash reserve was RMB7.39 billion. Net cash inflow of operating activity in H1 was RMB1.48 billion, grew by 45.5%.

We constantly play high priority on cash flow management. This robust level can also provide solid support for the company's transformation.

On shareholder return, in H1 of 2026, the company returned RMB1.31 billion to shareholder, including dividends and buybacks, of which the company repurchased 520 million, combined with Mr. Ye's personal share purchase approximately 54 million in H1.

Our buyback scale in H1 was already exceeding the full-year total of 2025, which fully demonstrate the confidence into the future business. We did not declare any interim dividend this time because of the company believe the current valuation is highly attractive.

We will conduct the substantial buybacks over the coming period and make a reasonable dividend decision by the end of this year based upon the full-year profit. The company's shareholder return policy for this year is buybacks plus dividend of the no less than 50% of adjusted net profit excluding forex effect.

Looking back on H1, our domestic business exceeding expectation, once again validating our pass for opening large store, building IP, and pursue high-quality development works. Overseas market sustain a compound growth rate of nearly 40%.

Now, we are in a transition period from the scale expansion to quality upgrade. We certainly need time to build up organizational capacity.

Based upon the company's current projection, we expect the company's revenue to grow by high single digit YoY in H2, mid-double digit for the full year. On this, in H2, MINISO China revenue expected to grow by mid-double digit YoY, but overseas revenue will grow by low single digit.

Overseas distributor revenue to decline by low double digit. Overseas directly-operated business will grow low double digit.

TOP TOY revenue is expected to flat in H2 with low double-digit growth for the full year. Compared with our full-year outlook at the start of this year, both domestic revenue and profit are somewhat better, with the differences mainly coming from overseas and TOP TOY.

In H2, we'll proactively slow down overseas, continue to close a batch of low-efficiency distributor store, and also controlling the pace of the directly-operated stores opening. We expect a net reduction of 50 to 70 stores across overseas market in H2: a net addition of 40 to 50 directly-operated stores and a net reduction of 100 to 110 distributor stores.

For the full year, our guidance for the low single-digit same-store growth for MINISO China and MINISO North America remain unchanged. Excluding forex, the adjusted operating profit is expected to decline by a high single digit YoY.

The adjusted operating profit margin expected to decline 3 to 4 percentage point on YoY. Our profit outlook is more cautious than the guidance we gave at the start of this year when we expected accelerated full-year profit growth versus last year with an implied margin assumption of a 1 to 2 percentage point decline.

However, we now believe it's going to be down by 3 to 4 percentage point. If in the overseas distributor market revenue were decline over the next two quarter, there will be some impact our margin.

This concludes my remarks. Now let's move to the Q&A session.

Hello, Mr. Ye and Eason.

Thanks for giving me the chance to raise a question. I have a question regarding your large-store format in Mainland China.

Mr. Ye has already mentioned the large store was performing out of our expectation.

We know that for many of the large store, when they first opened, the performance was pretty well. If the store opened dividend or the first store impact gradually digested, what would be the normal performance of those large stores, especially on the compared with the normal stores, what would be the difference on the sales, efficiencies, and the sales per square meter?

Whether you have any target in your mind and you have any criteria in selecting the regions or the sites for those large stores? The question is mainly regarding the large-store format, please.

Thank you. Let me just start with my overall view.

The large store model continues to outperform company expectation because our first large store has been opened for 2 years. It's not going to be a short-term action.

At the same time, we have multiple large stores at the same time. It's not just for 1 to 2 stores.

From this perspective, we're not a short-lived bust driven by the opening halo. It is a sustained growth trend.

Our store matrix keeps evolving, and now we have the park-format, flagship, regular, and pop-up. Let me just break down the large store unit model with a few metrics.

On our store performance, the park-format family is very healthy. MINISO Land, our earliest format in this family, still deliver the store performance above 3 million baseline, while the Super MINISO, newly launched in 2026, has already surprised us a lot, which can basically steady above 1 million baseline.

On the sales per square meter, the park-format was running twice as that of the regular stores. The rent-to-sales ratio, the park-format really slightly higher than the regular store by a single-digit number, but the YoY trend was downward thanks to the prime treatment after talking to the malls.

On the paybacks, the park-format store achieved payback within 6 months in early stage, and now average speaking, 1 year, faster than 16 to 18 months of the of the regular stores. Franchisee profit margin and the share of the profitable store has risen in tandem.

In H1, the profitability of the MINISO store nationwide reached its best level since 2019. In H1, more than 30 the Land-format store entered into the same-store base, with average daily sales per store up to 30% growth YoY.

Flagship-format 400 stores saw average daily sales per store grow mid- and double-digit YoY. Let me just talk about how we choose a site.

We will stick to the quality over speed. The share of the large store and the flagship store will keep rising.

Based upon our analysis, MINISO China total store number would reach 7,000 to 8,000. Land-format family would be 100 to 2,000-- 1,200, with 95 in Super MINISO and MINISO Friends; flagship format reach 2,000; regular format, 4,500.

On site selection, location value and the traffic will always be our key criteria. We will take a look at the commercial district district, prioritize on top traffic versus a prime commercial area.

For example, we will look at the store structure, prioritizing the corner position, the street-facing front. Thirdly, we'll take a look at the consumer circulation, making sure that a store is stayed right on the main customer traffic corridor.

Thank you. Thanks for Mr.

Ye.

Hello, Eason and Mr. Ye.

I'm Yang Runbo from CICC. I have a question.

In H1 of this year, MINISO China performance was truly ideal. However, the domestic retail environment in China volatile in July to August.

Some of the retail company said they are pressured. Can you share the consumption trends you were seeing in the market and how the company is going to respond to that with concrete measures?

Thank you.

This is a very good question. According to the data from the National Bureau of Statistics, as many of you can see, you can see that in June, it was declining, and in July, it was only grow by 0.6%, which is not ideal at all.

For MINISO China, we remain strong. Since July, MINISO China GMV has grew about 20% YoY, driven by both rising shares of the large store and also the Land format in our store mix and steady same-store development.

You can see that in July, the same-store average daily sales has grown by mid-single-digit. At this point, we say MINISO China will have a mid-double-digit revenue growth in H2.

Those results are inseparable from our strategy has been mentioned. Let me just share with you people, product, and the stores.

Even if you see the social retail was going down, however, I see for traditional retail business will still need the consumer to work. However, you see that for emotional sales, the sales was going up.

For example, outdoor products, trendy toys, the sales was growing up, but traditional retail business was not growing that fast. That's the reason we have to continue to build our MINISO Land, because we are building immersive IP scene.

That is the future trend. Let's also talk about people.

Membership operation are key growth lever for us, especially build out the catch the the the the membership system. We share some progress on membership program during the earnings call, including the growth in membership number, membership contribution to the sales.

We need to have the refined operation of the store. Secondly, we need to talk about the product.

Our product mix are now be truly aligned with IP, for example, our proprietary IP, which can actually provide the most interest-driven product with mainly emotional value. Those products sales was growing very fast.

Especially in H1 of this year, proprietary IP led by DUDU become another incremental driver with designer toy category. Proprietary IP now has already have a mid-single-digit share of offline sales and a double-digit share of the online sales, growing very fast.

Especially in top-tier stores such as MINISO Land and MINISO Space. In the Genie collaboration, we have been deliberately pushing into higher price band to test a more prime merchandise.

Also, we're going to have the first LISA-branded pop-up store, which will be available starting from the 1st of September. Many international celebrities and superstars are happy to embrace and working with MINISO, and hope they will be able to work with us to continue to work on the interest-driven consumption market in China.

The economy was not good, but China's population still huge. China have 1.4 billion bi- billion people.

Generation Z and people born after 1980s and 1990s are still going to be a big proportion. Those people are never short of the material consumption.

They need emotional value, and they need the interest consumption. Our competitors are also growing very fast, which showcasing China has a huge potential to go further.

In terms of the channel, I was talking about swapping the cage to bringing the better birds strategy, which will provide ample room for sustainable development of our domestic business in the upcoming years. Upholding the principle of quality over quantity, our domestic business is still in a fairly ideal state.

We will keep advancing the renovation with existing store. I have already highlighted MINISO China 4,665 store span a variety of the store formats.

We're going to go for the lower-tier stores. You can see, young people's in China, they all need the interest-driven consumption with emotional value.

If we're going to build good stores and outdoors, immersive experience, our trendy toy product and IP product are more attractive. That can actually help us to continue to improve the consumption and continue to draw the designer toy enthusiasm and move the price band further.

I was coming back from the northeast part of China. I see many of the stores being well positioned.

I was mentioning about our store efficiency is no less of our competitors. Some of our store can even outperform POP MART.

That is our internal goal. If you have time, I'd like to suggest you to take a look at our store at the Harbin Parkson store.

We have two stores there facing each other. You can see that our performance outperform POP MART at Harbin Parkson shopping mall, which actually boost our great confidence for the larger stores.

We internally proposed we need to improve the sales per square meter over the competitors. That is indeed the internal target we have.

We have every confidence to make this target happen because you know that for our product, and our trendy toy product in the Land was more than 35%, and we're going to make it more than 40%. We only have two proprietary IPs now, including DUDU and the Chouchou.

Chouchou was just launched 2 days ago. If our proprietary Chouchou proved to be successful, then we're going to have a two proprietary IPs with annual sales of more than 1 billion.

If we'll be successfully hit this target, then I believe our diversified format plus proprietary IP, it's going to be a 50% performance from the trendy toys IP collaboration product for another half. In that way, our business model will be more stable, more sustainable, and more immersive and more expan- experimental.

Majority of our store are having more than 800 square meters, including two floors. I have every confidence in our large-store format, especially the Land format, even if we are facing challenges now.

However, I sure believe we are still in the pain stage of the transformation. The profit is being under pressure.

However, we have a promising future, and I surely believe the business model we're running are still make us feel excited. That's for domestic market.

For international market, we are facing many problems. That starting from H2 of this year, I will spend more time working on the international market.

In H1, we are working for the store format refinement in China. In H2 of this year, we're going to move to the rest of the Chi- international market.

In Mexico, from 10th to 15th of September, we're going to also have the MINISO Land format in Mexico. Problems happened in China also been faced in international market.

In Mexico, we're going to celebrate the anniversary. The Latin American consumer preference are similar to that of China.

Their income, population structure, and population density are very close to that of China. It's also the time for them to embrace the transformation and upgrading.

You see the macroeconomic picture, as far as I believe, interest-driven consumption, emotional value would be the next driver for the future growth. We probably don't need too much material value.

Only in some African countries were still in great need of the so-called material value. However, some developing countries like China and ASEAN country, Asian countries, we have been shifted from the material value to the emotional value for interest-based consumption.

Thank you.

Hello, Mr. Ye and Eason, and the IR team.

I have a question. That was about your latest performance.

What are the latest same-store sales SSS figure for July and August? Has weather been a factor?

Could you split same-store sales into average selling price, ASP, and traffic? How much have a store upgrade, renovation, and a product mix shift contributed to the growth?

Which product categories are performing best? Given the softer retail and last year's high base, what's your outlook for the same-store sales in H2 of 2026?

Are there any difference between the higher-tier and lower-tier cities? Thank you.

In July and August, the MINISO China same-store perform were very steady, which is beyond our expectation, especially when we have the Super MINISO store. The performance was quite competitive.

The product, the store format, breaking it down, order value, a volume contribution 80%, average transaction value grew by 20%. The volume and the price are rising, which is very healthy.

We also mentioned, we're going to have a higher consumer unit price and higher gross margin, which is not being started yet. We actually opened more high-end stores in the MixC as well as the Taikoo shopping malls.

The products still in the refining stage, need to be further improved. I also would like to mention, same-store growth is driven by multiple engines, including the store upgrades and the product upgrades, along with the memberships.

Where for the upgrades are not the sole source. Within a single a mid-single-digit same-store growth, store renovation contributed roughly low single digit.

The rest are coming from the better refined operation, including the optimizing the product to channel matching, making sure the right product in the right channel, and also tailoring the product mix to different store style or types. I have already mentioned to you, we have more high-end stores, but we are still going to improve our product.

Product adjustment takes time, but that's not for the store adjustment. When we're talking about store adjustment, we're still building the infrastructure, building it right, and then we're going to count on our product to continue to grow.

We have our proprietary product along with the accelerated development of the product mix. As you can see, no matter for large store model or designer toy, they are now in the Tier 1 and Tier 2 cities.

Penetration ratio in the lower-tier cities are very low. This means lower-tier cities offer broad room for expansion and are a potential source of the future same-store growth.

Let's talk about the category performance. Big toys is one of our best-performing category, with share of the total sell up to 1 percentage point.

On IP shares, IP products overall accounted for around one-quarter of the sales. The share from the proprietary IP and artist IP rose by 4%.

Let me talk about H2 outlook. The high base mainly coming from the Zootopia craze in November and December last year, and we also have a decent IP lineup for the same period of this year.

Broadly speaking, with same-store sale growing mid-single-digit year to date, we remain confident in delivering full-year low single-digit same-store growth in China and the mid-double-digit revenue growth in H2. We also see several important levers.

Keep optimizing low-efficiency store. Second, on the product front, back-to-school season is a key focus.

We did not do particularly well last year, and we will make sure we capture it this year. We're seeing opportunities for cultural creative categories, and we're going to work on that further.

It's also going to be a good opportunity for us. Thirdly, on holiday, we will capture the sales surge window around National Day and Mid-Autumn Day.

Fourthly, strengthening repurchase and the mindshare through the membership cashback credit mechanism.

Okay. Thank you, Mr.

Ye.

Thank you. Can you hear me?

Yes. Okay.

Good evening. Thanks for giving me the chance.

My name is Shidi from Huatai Securities. That, thanks for providing us a very clear guideline.

In H1 of this year, the company have many new IP and many new products. For example, collaboration with Genie that generated a strong buzz in H1.

Your proprietary IP, Chouchou and DUDU, are also performing very well. What IP types and category extension are planned going forward in H2?

What are the levers for creating the blockbusters in H2? Any holiday season you have in your pipeline?

Our IP strategy remains driven by two engines: licensed IP and proprietary IP. Each has its own plans.

For licensed IP, we have partnered with 180 global IPs, spanning anime, film, and TV and celebrity IP, accumulating end-to-end experience from IP selection to product development to operation. You also talk about the Genie collaboration.

Our product, for example, like accessories, blind box, and plush, designing and producing 70 SKUs, also you see, from the 1st of September, those product would be available. We also have more IPs in the pipelines.

Where at the same time, we also have a Chouchou, which just started to release its great potential. At the same time, you can see, for Chouchou, the demand is far go beyond than the need.

Which is actually, is stoked it out. We never expect it's going to be that popular from the very beginning, which is another way to look forward to that.

It was very, very popular on the RED book, which enjoy very good progress. On 12th of September, was going to officially launch collaboration with LISA in Thailand.

At the same time, on 9th of September, we're going to have the LISA collaboration IP exhibition. You all know how impactful this might be.

We're going to be the IP collaborator and IP exhibition worldwide. We have already mentioned we're going to have the product, for example, the blinded box, as well as the plush product or the patent, and the price would also be quite friendly to the normal consumer.

You can see the price would actually be further improved compared with what we have last year. The GP margin contribution is also reaching the best level.

We are actually continue to improve that, and continue to improve the product, the price, and be more experienced for the global layout. Regarding the proprietary IP, that is our long-term strategy lever.

We're going to work with the large-store format. As I have already mentioned, for DUDU, in June and July, its sales was more than 100 million for two consecutive months.

We're also going to have a major IP collaboration later. That's going to go beyond the Disney collaboration.

As you can see, DUDU also have a collaboration with McDonald's and also working with Luckin Coffee. All those advertisement could be identified on Xiaohongshu yesterday.

We also notice that DUDU is indeed a very popular ones. All the consumer brands would like to work with us for that.

Take a look at the Xiaohongshu, you will see how popular DUDU would be. You'll see that the success of Chouchou proved again our proprietary IP model is truly successful and feasible.

We're also going to have a good design. The team is getting more confidence.

Success could be luck, but there are two success, it's not luck at all. You need the methodology and a set of the strategy to be mature.

We're also working with different celebrities, especially our collaboration with Li Yuchun, which is very, very well established, which is also the global-leading strategy. As you can feel, that is already go beyond the doubt.

We're learning, but we're also surpassing. That is a greater strategy of my team.

We're going to launch better and good marketing innovation in the near future. Go beyond our peers, really surprise the industry society and the consumers.

This can also help us to further clarify our commercial proprietary IP are actually going from stage to stage to a more mature phase. To summarize my answer to your question, I think we have a few levers.

We continue to work with the top licensed IP, celebrity IP, insist on incubating our proprietary IP. With our existing IP matrix, we're going to have the IP and the products working together.

We're going to work with different categories and SKU, leveraging our large store and a different format to continue to convert the IP sales and continue to advance our proprietary IP. You can even come to our store to take a look at that.

You can see that for Disney and DUDU, we're now having a blind box being working together. You can also see that for Chouchou, the blind box was also being well created, very much professional.

As far as I believe, our blind box is making huge progress. Regarding the collaborations, which is no inferiors than our peers.

This is also something we're progressing very fast. As long as we have a good use case, good IP, if the consumers come to our store, they believe we are professional, especially after working with Li Yuchun.

We surely believe the MINISO trendy toy consumer measure is continue to progress. That could also help to build future collaboration.

At the same time, it's going to be a great driver for our future growth. That's all for me.

Thank you.

Thank you. Thanks for Mr.

Ye and Eason for the question. I have a question regarding the US market.

As being show and talked, and you have already proposed a target for $4 billion USD for revenue and $400 million for profit. In Q2, we see the sales being somewhat slowed down.

How you are going to complete this target? Is there any driver you have?

At the same time, regarding the profit, how you're going to improve the profit?

Thank you very much. Internally speaking, we actually make US and Canada as a whole.

I have already mentioned, and for North America, our performance target was 4 billion, and we hope that it's going to be 10% of our net profit margin. Excluding the short-term data, if you take a look at the US only, the MINISO was the fastest-growing retail in US in 2025.

It was being covered by Forbes. However, it's not only just for the that.

When we converted our sales from direct to the indirect, US business posted a CAGR of 120 from 2022 to 2025. For same-store performance, we're going to maintain a full-year target of low single-digit growth, which is in line with our expectation.

Improving US margin still going to count on the operating leverage, even optimizing the store numbers. For the past 2 years, we actually opened some stores with large foot traffic.

At the same time, as you have already mentioned, we're going to slow down, slow down a little bit, and also continue to work together and make improving the profit and revenue as a whole.

Thank you. Thanks for the question to raise a question.

Hello. I have a question.

In H1 of this year, you have already mentioned that you opened stores in peak season and operating your business. We I was talking to you, for Eason and for Mr.

Ye, you are quite confident about that. What be your expenses planning and look into H2 of this year, whether the interest are going to be accelerated?

Thank you.

I was reporting a few numbers. You can see that in H1 of this year, in North America, the store net addition was 75.

In other words, we really want to make sure the stores being opened before the peak season, making sure that we accelerate the growth of the North America store. For the full year sales and profit, which is very typical to the retailer in North America, we're not making money in H1 of this year.

All the time, we count on H2 or even Q4 to help to drive the overall sales. In my prepared remarks, I have already showed you a slide.

That is a by-BU profit rate. You can also see that for 2025, if you took take a look at the last year, as you can see that the number was around 30% for franchise and agents business, which really in line with what I have already mentioned.

The sales peak season for the seasonality, looking to H2 of this year, as you can see that our profit will continue to steadily increase. International agency remain stable.

However, we'd like to split the direct sales into two parts, including the North America direct sales, which was 10%. At the same time, we also have direct sales business that are still in the growth stage, for example, Europe, Australia, and ASEAN Asian market.

We're going to continue to optimize North America back office expenses. In H1 of this year, the back end expenses ratio in United States decreased slightly.

Profit margin will continue to grow. At the same time, you can see you can

see that the adjusted profit margin will decline by 3 to 4 percentage point YoY. We hope that 2027 would be the turning point of our profit margin.

Thank you.

Okay. Taken.

You see hope that in 2027, we're going to have a good performance and improvement on net profit. Thank you.

Thanks for the team. Thanks for the opportunity of raising the question.

My name is Qin Yang from Changjiang Securities. I have a question regarding your US business.

As some investors has already asked the question, I'd like to ask you for US merchandise strategy. That as we're adjusting our product matrix, I would like to ask for the management team, what would be our key focus next year in a United States in H2 of this year?

How you are going to comment on the balance between the domestic direct and the indirect sales?

For US, refining the product mix is something we do continuously, particularly amid the macro policy change. We have constantly adjusting our overseas profit product mix.

In terms of the sales contribution, designer toy remained our largest category in US, contributing over one-third of the sales. Especially vinyl plush performing especially well.

You can see that majority of that in the US are built on the licensed IP. We plan to relaunch proprietary IP next, which should contribute incremental growth going forward.

At the same time, in Q2, some best-selling IP product were out of stock due to merchandise planning. We bridged the sales gap through rapid direct sourcing.

As a result, due to the product planning, some of these product are out of the store stock. That is not going to be our key.

We're going to continue to differentiate the product. You can see that in US, the source was declining from 60 to 70 in early 2024 to close 40 in H1, while the share of the directly-sourced product rose considerably.

Among those directly sourced, snacks have significantly improved the conversion and attachment rates in store. While US is actually under pressure, we're still adjusting our product matrix.

Even we slow down the store openings in the United States. For US, our headquarter is now actually making huge investment on the merchandise center.

Regarding the GP margin, the US market GP margin was around 65% to 70%, part due to the tariff rebates, which will also give us some positive contribution in H2 of this year. At the same time, the asset ratio is well under control with launch of the blockbuster IP and increase in the proportion of the IP, and we believe the GP margin in US would increase in H2 of this year.

Thank you.

Okay. Thank you.

My name is Wu Chenxi. Thanks for giving me the chance to raise a question.

As you have already mentioned about the distributor operation are still facing some resilience, I'd like to ask you what's the company's outlook and plan for the distributor market growth? Thank you.

Okay. Thank you.

I'm Eason. In H1 of this year, distributor slowed their restocking.

However, it's being slowed down. The revenue was growing.

Looking to H2 of this year, and you see that distributor revenue was still going to down by 10%. I think a negative growth in revenue won't necessarily mean the end demand was problematic.

What's the situation of the distributor market? For the full year of 2025, overall sales of the distributor business was more than 10 billion.

The CAGR was more than 10%, which was always robust. Excluding the forex reason, you can also see that the GMV still maintained a high single digit in H1.

We see the gap, which can see some of the channel are still digesting the inventory. In that way, the distributor restocking lags behind their own sell-through, a normal phenomenon in inventory digestion process.

Secondly, behind the negative growth, there were also external factors and our own issues. Externally, some markets in Middle East and Asia were affected by geopolitical conflict, currency swings, and other macro factors.

The inventory turnover in those market came under pressure in H1. Latin America market also faced macro currency and natural disaster headwinds, but its inventory turnover improved in H1.

We operated in 80 distributor market overseas, with top 80 accounted for 80% of the overall business. In H1, inventory turnover in the top 80 market was roughly flat versus last year, and somewhat better than the directly-operated market over broadly speaking.

Internally, as we have already candidly acknowledged, you can see that internally we have the candid acknowledge of previous communication, and we just want to maintain long-term health of the channel rather than pushing inventory into short-term result. Terminal sales will be normalized today.

At the same time, we also further reduce the store number. For example, in New Zealand, in Philippines, well, at the same time, in the middle of this year, and also due to the healthy channel issue, we actually made the strategic investment, closing down some of the low-efficiency stores.

We look forward for international market. We're going to have another 100 to 110 in H2 net closure.

This decision make short-term pressure on distributor revenue. However, in the long run, it can also help to ensure healthy and sustainable development of the entire business ecosystem.

As you can see that Latin America market is our key place. The local distributor are actually having very strong background and operation capacity.

The retail location of those market are actually seeing a low single digit in H1. Terminal performance was steady.

In Latin America, likewise, we will not trade short-term revenue for channel health. You can see that Mexico market, in Q3 and Q4, it's going to celebrate the 10th anniversary.

The market will also continue to roll out the improved format. We're going to have a MINISO Land and a Super MINISO in those cool malls in key cities.

In terms of the product and operation for distributor regions with established scale, we will deploy localized product. On IP product, we fully recognize the launch cadence needs stronger planning.

We have now built a more complete launch calendar that clearly marks the key local holidays and launch timing for different stage IP. Through this way, we will be able to maximize the incentivize the sales momentum.

For category with growth potential, we will help distributor markets iterate their marketing plans, offering better plans, iteration, and empowerment in scenario-based content, closing the content gap, lifting the sell-through of the high-momentum categories. For the overall product mix, we will phase out low-efficiency, low-margin SKUs, adding value for value-for-money, everyday product to make up the volume and also bringing high value-for-money, local best seller to drive the sales.

Okay. Thank you, Eason, very clearly explained.