Good day, everyone. Welcome to MINISO 2025 December quarter and the full year earnings presentation.

2025 was a year for steady growth and a continued breakthrough for the group. Throughout the year, the revenue growth followed a strong and constantly acceleration trajectories, rising from 18.9% YoY in Q1 to 32.7% in Q4, surpassing the upper end of our prior guidance and also reaching 6.25 billion in quarterly revenue, making the first time we have crossed 6 billion revenue quarterly milestone.

Looking at our core brands in details, the MINISO brand recorded its fastest growth rate in nearly eight quarters in Q4, with revenue up by 28%, reaching 5.65 billion RMB. Meanwhile, TOP TOY delivered exceptional momentum, posting 112% YoY growth in Q4, with quarterly revenue approaching 600 million RMB, demonstrating the powerful dynamic of our multi-brand portfolio.

This year, we achieve higher revenue growth with fewer net new store openings than 2025, with greater share of the growth driven by the same-store sales, reflecting a more efficient and higher-quality growth model, reaffirming the resilience and long-term growth potential of our multi-IP plus multi-category and globalization business model. Today, against the backdrop of the group's full year operating performance, I will share with you the significant progress that we made in the past one year regarding MINISO strategy for the past two one year, particularly focused on the breakthrough in brand elevation and the store experience enhancement.

First, let's take a look at MINISO China. In the fourth quarter, the MINISO brand generated a revenue of 5.65 billion.

Mainland China contributed 2.87 billion, grow by 25%, representing 51% of the total. MINISO overseas revenue reached 2.78 billion, up by 31%, accounted for 50% of the total, reflecting a robust, balanced growth driven by both domestic and international operations.

Let's first talk about strategic initiative in MINISO mainland China business. In Q4, MINISO domestic same-store sales grow by mid-teens in Q4, a record high for the year, with average daily sales per store surpassing the level achieved in 2023.

Even 2023 was largely driven by surge in post-pandemic pent-up demands, MINISO's ability to exceed those peak levels, this can tell its genuine structural improvement rather than the cyclical tailwinds. We have every confidence, assuming a more supportive macro environment and gradual recovery in consumer sentiment in 2026, with our stronger brand equity, superior store positioning, more agile supply chain, and competitive standing, we will be able to outperform the industry by a wide margin, capturing a more shares in the market.

By the end of Q4, our domestic franchisee count reaching 1,457, reaching historical high. Franchisees vote with their support.

That is the most authentic market signal, and they partner with us because they have witnessed the first hand and the traffic momentum and the financial returns of our large-format stores. The trust has been earned store by store, IP activation by IP activation.

It is something that we hold in the highest regard. At our 2024 Investor Day, we articulated our vision to make MINISO the go-to happy destination for international consumers worldwide.

Today, the vision is being realized, one MINISO LAND store at a time. By the end of 2025, we have already opened 26 MINISO LAND format stores in mainland China, securing premier location in Tier 1 cities like Beijing, Shanghai, Guangzhou, and Shenzhen, and also distinctive retail destinations in Harbin, Haikou, and Guiyang.

In January, the MINISO LAND opening in Grandview Mall in Guangzhou, attracting nearly 10,000 visitors on its opening day, generating 450,000 in sales, a new record in South China region. Equally impressive is the MINISO LAND flagship opening in the lower-tier cities in Urumqi and Nanjing.

The Nanjing store soft opening drove 80% YoY growth in overall mall footprint traffic. Urumqi store, featuring a three-story impressive space and a portfolio of over 100 IP collaborations, quickly established itself as a regional premier destination.

Such high quality offline experience store are, at their core, the engine for IP operations. Through the authentic spatial design and the curated products presentation, they draw consumer, and such perceivable and tangible offline experience bring IP value to life.

It can also help us to continue to improve our brand IP ecosystem. MINISO LAND store combined with blockbuster IP activation has become go-to platform for creating city-wide mainstream brand momentum.

Tens of thousands consumer share their experience on Xiaohongshu, Douyin, and WeChat Moments. That's the reason I always tell you, our physical store are MINISO's most powerful brand billboard and our most enduring source of the consumer traffic.

MINISO is not the first brand to pursue large-format store trajectory, but why others can falter? The answer come to just one thing: a successful large-format store must build on foundation of strong proprietary product development capacity.

Without in-house design and R&D capacity, a large-format store is nothing but an empty shell. Behind that, we have more than one decade supply chain deployment, a network of more than 1,500 global suppliers, and design team of over 1,000 professionals.

In this process, no one will be able to copy the successful story unless they have to build the core capacities. MINISO moved even further ahead.

In support of our MINISO LAND strategy, we established a seven-tier store format mix in 2024, continued to refine and evolved it through 2025. Our goal is to ensure every city, every trade area, and every consumption scenario will be served by MINISO format precisely.

In the past, I have mentioned MINISO intentions to systematically upgrade its store portfolio. I also would like to share with you the reason behind such initiative, why every new store we open must be large-format, high-quality, and MINISO LAND format store.

If we look at our journey, we navigated two distinctive strategic phase. First, rapid global store expansion to build scale, followed by strategic IP positioning, transitioning ourselves from a value-priced variety store into interest-driven consumption destination.

We achieved milestone in both phases. Now we move into the third phase: an immersive retail transformation centered on MINISO LAND.

It's not only increasing store size; it is an integration of the store capacity built across first two phase, leveraging larger space, creating immersive environment, forging genuine emotional connections, driving repeated visitor. We are solving and translating from selling the product to selling experience, from traffic-driven business to loyalty-driven, consumer-centered ones.

People are never lack of the good product. They are truly seeking for compelling destination, memorable experience, and moments worth sharing.

Our IP-driven LAND are designed precisely to meet those needs, that we can inspire consumers to share and continue to come back for to generate purchase. Regarding international market, our overseas revenue approached 2.8 billion in Q4, all-time high, representing 31% YoY growth.

Our overseas store net add was 159 stores, bringing a full year net increase of 465 stores. Our largest overseas market, the United States, delivered a full year growth more than 60% and 57% in Q4.

Same-store growth was more than 20%, all ahead of our prior expectation. At our Q1 2024 earnings call, I stated improving store operating quality in North America was our top priority in 2025.

A year on, MINISO US business delivered comprehensive improvements on store quality, operational efficiency, and consumer engagement. For stores, with new store quality being further improved, sales of the new store in 2025 have hit all-time high, grew by double-digit number.

Both average transaction value and transaction volume are all improving, driving meaningful higher unit-level profitability and conversion rate. While at the same time, our mature store demonstrated strong operating resilience.

Leveraging a refined same-store performance tracking model, establishing store to deliver YoY growth, both the average daily sales and the transaction improving alongside gains in foot traffic and purchase frequency. Especially for our plaza store format, we opened 48 plaza locations in 2025.

They generate higher attachment rate and average transaction value, ASP. The average ASP outperforming our mall stores, establishing a more flexible and economically return new store expansion channel.

Operationally speaking, we have cluster-based expansion strategy, improving logistics efficiencies and warehouse cost. Employee retention improved.

Revenue per headcount increased. Labor cost as percentage to the sales declined, achieving a dual optimization on cost and productivity.

For consumer side, membership in US market grew by 150% YoY. The member-driven sales exceeding 50% of the total revenue for the first time.

Together, those results mark US market transition from an investment phase into a phase of high-quality, profitable growth, becoming our most resilient and dynamic engine for global expansion, which actually give us great confidence for our global rollout strategy. The operational challenges we encounter in other markets are also encountered and navigated in both China and the US.

We're going to leverage our experience from China and the US, continue to unlocking profit potential for our international operation. Thirdly, let me talk about TOP TOY.

TOP TOY sustained its strong compound growth momentum in Q4, with revenue up by 112%, reaching nearly 600 million revenue in Q4. In terms of the store footprint, by the end of 2025, TOP TOY operated a total 334 stores, including 30 international stores in Thailand, Malaysia, Indonesia, and Japan.

Brand global expansion continued to accelerate. Domestically speaking, TOP TOY growth strategy centered on high frequency of the proprietary product launch to drive same-store sales.

The proprietary IP Nommi actually rapidly gained momentum, with a sales of more than 200 million and likely to be doubled in 2026. By the end of 2025, TOP TOY has built a proprietary IP portfolio of more than 20 brands.

In 2020, I first introduced interest-driven consumption. The consumer's core need is rapidly shifting from the pure functional value to emotional and experiential value, which has been fully validated by the market.

MINISO stand as one of the most significant beneficiary and pioneer of this consumption transformation. With our immersive offline experience, multi-category proprietary development capacity, those are our key and hardest-to-replicate competitive moats in IP-driven consumption era.

MINISO strategic vision is to become the world's leading IP-driven retail platform. My strategy is being even clear.

Along the way, we have demonstrated the execution of our strategic development client, and we also witness the first hand the genuine and sustainable enthusiasm we have from the consumers. For the past one year, we delivered strong result in both China and the US.

The road ahead is long, but with each step forward, we our conviction and confidence only deepen. That's all for my remarks.

Coming next, I'm going to hand over to Eason to walk you through the financial highlights for Q4 and full year. Thank you.

Thanks for Mr. Ye.

Welcome, you all. Coming next, let me just walk you through MINISO Group financial results for Q4 and full year 2025.

I will also provide you the outlook. I should also say that all the units would be RMB, otherwise being stated.

Let me just start by reviewing financial performance against Q4 and full year. In Q4, revenue grew by 32.7%, surpassing the upper end of our prior guidance between 20% to 30%, driven by the outperformance across all business segments.

MINISO Chinese mainland Q4 revenue grew by 25%, exceeding our prior guidance of a high-teens growth. MINISO overseas Q4 revenue grew by close to 31% YoY, ahead of our guidance of a low to high 20s percent percentage growth.

TOP TOY Q4 revenue grew by 112%, above our guidance on 80% to 90% growth. The Q4 momentum lifted the full-year group revenue growth by 26.2%, exceeding our prior full-year guidance of approximately 25% in the interim results.

In Q4, MINISO Chinese mainland same-store sales growth reached a mid-teens, US same-store sales exceed 20%, both surpassing our prior Q4 guidance of a lower double-digit same-store growth. Both market delivered high-single-digit same-store sales growth for the full year, in line with our formal guidance, but ahead of the internal expectation we had when we provided the guidance back in November.

Our adjusted operating profit grew by 12% in Q4, in line with our prior guidance of a double-digit growth. Full-year adjusted operating profit reaching 3.67 billion, aligned with our guidance.

In Q4, adjusted operating profit margin was 17%, especially in H2 of 2025, and we have already narrowed down the margin compression. Let's take a look at the revenue.

We have already created three revenue milestones in this quarter. Single-quarter GMV exceeding 10 billion RMB for the first time.

Quarterly revenue surpassed 6 billion for first time, and full-year revenue crossed more than 20 billion RMB for the first time. Benefited from all the outstanding performance we deliver across all of our business line, a over-expectation performance.

By brand, MINISO brand generated Q4 revenue 5.65 billion, 27.7% increase. MINISO China continued to demonstrate great growth.

In Q4, its average growth is the highest one for the past eight consecutive quarters. MINISO overseas revenue was 2.78 billion, up by 30.5%.

TOP TOY revenue was 600 million, up by 112%, and also having a triple-digit YoY growth, with very strong momentum that exceed our expectation. Turning to the full year, group revenue reached 21.44 billion in 2025.

A few highlight I'd like to share with you: MINISO mainland China full-year revenue crossed 10 billion RMB milestone for the first time in such a consumption background, grew by around 17%. MINISO overseas full-year revenue was 6 8.6 billion, up by close to 30%.

TOP TOY full-year revenue was 1.9 billion, maintained a very strong growth. In terms of the geographic revenue mix, mainland China revenue grew by 22%, accounted for 60% of the total revenue.

Overseas revenue grew by 33%, representing 40% of the total revenue. Take a look at same-store sales performance.

MINISO mainland China Q4 same-store continuous sequential acceleration, reaching a mid-teens, go beyond our expectation. Looking back to the full-year trajectory of the MINISO mainland China same-store sales, from negative mid-single-digit in Q1, to positive low-single-digit in Q2, to high-single-digit in Q3, and finally mid-teens in Q4.

Sequential progression deliver mid-single-digit same-store growth for the full year, already exceeding our initial target in the mid of 2025. As I have already shared with you, delivering the improvement in the domestic same-store sales that we did many hard efforts.

In terms of the internal management, the same-store performance has been built into the KPI. We also have digital infrastructure, making the business flow more digital and intelligent to improve the on-team empowerment.

Thirdly, we have the operation improved, and we improved the store SOP with supply chain optimization and making sure that sustained contribution from the top-selling SKUs and minimizing the potential sales loss. Fourthly, the product development efficiency has been further improved.

We actually have more contribution from new SKU and speed-to-shelf of the new product launch. Fifthly, the inventory kept healthy.

Regarding the operationals, we are also working at three fronts, including consumer, product, and channel. For people and consumer, we improved the in-store conversion.

Our extensive store network served as large-scale testing ground and rich data pool. By deploying additional foot traffic counter, we'll be able to capture high-frequency store-level data that can help to further optimize our store and operation.

We also have diversified marketing activations. For example, for this year, we have the One-Day Store Manager program on RED, artist street pop-ups, as well as in-store meet and greet, signing events, and celebrity store visit, which can actually become the viral moments on the social media, driving organic brand amplification through fan engagement.

Regarding product, let me just give you another two points. We capitalizing on seasonal and holiday product trends, while at the same time, we're also managing IP and non-IP merchandise with profound understanding.

We leverage the traffic-driven power of IP product to generate attachment, purchase, and lift the basket contribution of the non-IP items. Regarding the channel, we improve our existing store portfolio.

We have upgraded and improved 300 stores with tangible results. Regarding MINISO overseas, same-store sales performance are different from region to region.

In Asia and in Latin America, the same-store performance is lagging behind than other international markets. However, our strategic direct-operated market, United States and Europe, delivered very good result, especially our key strategic direct-operated market, US, deliver low-20s-percentage same-store growth in Q4, supporting our prior guidance.

Driven by the strong end-market performance and continued polish of our store, you can also see that we see a healthy improvement of the same-store profit margin. Through disciplined, data-driven site selection and the cluster-based store opening approach, US back-end overhead costs declined by low-single-digits, providing further tailwind to US business profitability.

It is also worth noticing that in 2025, US business faced meaningful tariff headwinds against a backdrop of significant macroeconomic uncertainties. Our team responded with exceptional foresight, sharp market insights, and agile execution to be able to deliver standout set of the results.

Such result validate our robustness and business model. Such strength in and out is actually the foundation for our confidence to navigate an economic circle.

Domestic market and our strategic home base deliver sequential accelerating positive same-store sales growth in a highly competitive market, which demonstrate our strategic model and exceptional execution capacity of the team, creating a solid springboard for further growth. In 2026, successful story and playbook from China and United States will be exported to Southeast Asia.

Respect to the challenges in Southeast Asia market, we believe headwinds already hitting the bottom. In 2026, through comprehensive upgrades of our channel strategy, product assortment, and of organizational structure and talent base, we will be able to continue to improve the business in Southeast Asia.

Regarding the store, and actually, with total store count approach 8,500 by the end of 2025. In mainland China, the net add is 182 stores, compared with 460 in 2024.

Recall MINISO mainland China revenue growth that was around 10% in 2024, however, in 2025, it was close to 17%. In other words, and with a clear indication that we have transitioned towards a higher-quality and more productive growth model by with fewer net new stores.

MINISO overseas new adds was 465, bringing a year-end total to 3,583. TOP TOY new adds was 58 stores.

TOP TOY started global expansion by Q4 of 2024. Just within one year, we have 30 stores international-wide, present in Malaysia, Indonesia, Thailand, Japan, and Macau.

By the end of 2025, our domestic LAND format store portfolio, including MINISO SPACE, MINISO LAND, and MINISO Friends, has reached 26 destinations across 19 cities nationwide. LAND format and flagship large store collectively accounted for 10% of our domestic store count.

They contributed nearly 20% of our domestic GMV. This number will continue to ramp up, which help validate big store drives bigger results logic.

In 2026, we will accelerate the release of this momentum. You can see, including CDF in Sanya, Dennis City in Zhengzhou, and Grand Gateway Plaza in Shanghai, we'll continue to see our new locations being operational.

In Q4 of 2025, we opened our first overseas MINISO LAND at Siam Square in Thailand, with very strong market reception, which helped us to understand the potential of our overseas format remains substantial. In 2026, we'll continue to bring the immersive LAND experience to more retail destinations across the world.

For overseas direct-operated market led by United States, we plan to have the strategic new openings before Q4. In that way, Q4 would be fully concentrated on in-store operational excellence and experience optimization, so that the peak shopping season arrives, we will be able to fully maximize the growth momentum.

Regarding the GP margin, that was 46.4%, compared with 47% same period of last year. 2025, the GP margin was 45%, flat.

For the past five years, our GP margin jumped from 28% to 45%, driven by our brand elevation, globalization, and IP strategy. During the years, we make selective cross-margin adjustments across product categories, which enable better sales performance and overall increase in GP margin.

In the near future, we're going to continue to manage the balance between margin rate and sales volume, maintain a healthy, high-quality growth. Regarding operating expenses, the operating expenses in Q4 grew by 45.3%.

Sales expense grew by 37 47.4%, 3% higher than the same period last year. Administrative expense grew by 36.3%, increased 5% accounted for 5% of the revenue, flat with last year.

The increase in the sales expense was attributable to the growth in direct-operated store cost, licensing fees, and advertising and marketing expenses. Our international expansion is still in the early stage.

Direct-operated stores are in need of the rents and manpower, which was 1% higher than the previous year, accounted for 40% of the total revenue, with the total cost grow by 40%. However, it's already a de-acceleration from 54.5% growth rate in the first nine months of 2025.

Secondly, licensing fee grow by 107% YoY, accounted for 3% of the revenue, up by 1 percentage point compared with 2024. This also helped to reflect our proactive upfront investment in IP strategy.

Thirdly, advertising and marketing expense grew by 30%, slightly below the rate of the revenue growth in Q4, with ratio to revenue remain flat compared with 2024. The increase in G&A, and you can see adjusted operating flow, the Q4 adjusted operating profit grew by 11.7%, and adjusted operating profit margin reaching 17%.

Full-year adjusted operating profit, no matter for MoM or YoY basis, you can also see our operating actually continue to be well-managed. From the P&L perspective, in Q4, GP margin declined by 60 percentage base point because Q4 2024 was our highest GP margin quarter on record.

Also, direct-operated store cost ratio increased by 1 percentage point. Licensing fee ratio increased by 1 percentage point, with a further contribution from the malicious items of a few tens of a percentage point, resulting in a total adjusted operating margin impact by 3%.

For the full year, GP margin flat versus with 2024, mainly due to the direct operation store ratio increased by 2 percentage point, licensing and other fees increased by 1 percentage point, result in a 3 percentage point adjustment. While at the same time, you can also see that in mainland China, from the business unit perspective, the BS business unit part, China franchise business saw a margin decline by only 70 basis point against a backdrop of 70 percentage point of the revenue growth.

This reflect our conservative approach for gross margin exchange for healthy volume, but at the same time, the growth was also contributed by our super warehouse and e-commerce operation, with a modest diluting effect on margin. The group-level margin decline primarily attributable to the compression in overseas margin.

For example, direct-operated store revenue as a proportion to the total gross overseas revenue has been increased from one-third in 2024 to more than half in 2025. Outside the North America, other direct-operated market remain in the early investment phase and carry low margin.

By contrast, our overseas agent and franchise revenue, which carry high margin, grew at a relatively slow pace. In our financial statement, we also have some non-IFRS adjustment.

There are five points. First of one, share-based compensation, SBC.

It was 150 million in Q4 and full year 370 million, and that used to be 85 million in 2024. The increase was mainly because of the equity incentive plan we made for the team.

The second one is loss from the derivatives fair value changes and CB issuance cost. The third one is the interest expense on CB and the YH investment-related loans.

In Q4, convertible bonds interest expense was 51 million, of which 47 million are in non-cash. Interest expense on acquisition loan related to YH was 24 million.

For 2025 full year, you can see the convertible bonds interest expense was 190 million, among which 170 million are non-cash. Interest on YH acquisition loan was 87 million.

Then the fourth point is share of the YH post-tax loss. In Q4, YH estimated net loss was 1.84 billion.

The fifthly, you can also see that we have the fair value changes of the redemption liability arising from the preferred shares. The change was related to 150 to 160 million RMB.

It related to the strategic financing completed last year. In aggregate, the adjusted added back approximately 990 million in Q4 and 1.69 billion for the full year to arrive at adjusted net profit.

Excluding the item discussed above, the adjusted effective tax rate was 20.2% for Q4 and 20.1% for full year. Q4 adjusted net profit was growing 7.6 percentage, reaching 850 million.

However, as a result of our active share repurchase and cancellation program, our adjusted EPS slightly faster than growth. The adjusted diluted EPS in Q4 grow by 9.4%, full year reached 7.8%.

Regarding working capital, by the end of 2025, inventory turnover was 100 days, 91 days the same period of last year. In mainland China, inventory turnover was 74 days.

Internationally speaking, inventory turnover was 228 days. The increase in overseas inventory days reflect a strategic inventory ahead of the anticipated tariff impact, locking the cost at the favorable level.

We also have established local direct sourcing, which can actually help balance inventory pressure and ensure continued new product replenishment. In the near future, we will also going to adjust our overseas inventory and total efficiency.

By the end of 2025, our cash reserve was 7.1 billion, remain healthy. In 2025, full-year net cash generated from operating activity was 2.58 billion, accounted for 90% of the full-year adjusted net profit, a reflection of our business resilience, high earning quality, and strong cash generation.

Capital allocation means we're going to maintain our commitment for rapid business growth. In 2025, we obtained a waiver from Hong Kong Stock Exchange with repurchase up to 1.8 billion.

You can also see that we continue to have the repurchase that can showcase our commitment and confidence for the full year. Looking at the 2025 full year, the return to shareholder account for 1.9 billion, accounted for 66% of the full-year adjusted net profit, including 50 550 million in share purchase and 1.36 billion in dividends.

You can also see the board has already announced final dividends of 810 million, representing 50% of the second-half 2025 adjusted net profit, which will be expected to be paid in April this year. Last but not least, closing remarks and outlook.

Looking back at our financial performance over the past five years from '21 to '25, revenue CAGR reached 21%, adjusted net profit CAGR reached 44%. Look into 2026, we expect group revenue will have a high-teens rate.

A three-year CAGR from '23 to '26 would be no less than 22%. We expect same-store sales continue to ramp up.

In 2026, the same-store sales in key markets like China and North America maintain healthy, low-single-digit growth. We plan to have the new add store 510 to 550 for the full year.

We seek for quality rather than quantity. In 2026, we balance growth and efficiency, pursuing profitable growth and profit backed by strong cash flow.

We expect both adjusted operating profit and adjusted net profit will accelerate the growth rate in 2026. In terms of the profit phasing, the peak retail season for offline retail in North America and Europe is in second half of the year.

For many Western offline brands, 60% to 70% of the annual revenue were generated in H2. Our direct-operated revenue from North America and Europe will continue to grow.

Around 60% of the revenue are coming from H2, and H1 account for 40% of the total contribution. In Q1 2026, the revenue growth will no less than 25%.

China same-store sales maintain high-single-digit growth. North America same-store deliver strong mid-to-high double-digit growth.

It is worth noticing Q1 profit will include a significant investment gain from a specific investment. It was generated from a test investment we made a few years ago.

The company's been quite positive on AI company. We invested in a AI company.

That company is IPO'd. The company's share price appreciated, generating a substantial fair value gain.

It actually bring us an extra 850 to 900 million. It is worth noticing that such extra gains will not showcase our primary business resilience.

We plan to exclude this item from adjusted operating profit and adjusted net profit. That's all for our prepared remarks.

Let's open the floor for Q&A.

Hello, Mr. Ye and Eason.

Thanks for giving me the chance to raise a question. Congratulate on the company of achieving such a nice growth in the volatile market.

I have two questions. The first question regarding domestic market.

Last year, we drove solid same-store sales growth through refined store operation, stronger festive sales execution, and store network upgrades. Looking ahead to 2026, as Eason has already provide a guidance, is it possible for you to be more elaborate on the key lever to drive further same-store sales improvement?

The second question is regarding the US market. We do notice the sales was looking right in the United market.

However, localized sourcing would somewhat pressure your GP margin. What are your priority for merchandise, supply chain, and store expansion this year?

What is expected impact on margin improvement? That's the two question I have.

Thank you.

Thank you. Our core level for driving domestic same-store sales in 2026 are clear.

There are three: the right IP, for example, the Jennie co-branded product, which can actually help to further consolidate our revenue and the brand impact; the second one is right product; the third one is right experience. Regarding the right product, we attach great importance to the product quality, same as ASP.

We also open large stores to provide good customer experience. You can also see that Jennie collaboration was first launched exclusively at MINISO LAND and themed pop-up locations, creating fully immersive IP experience.

The limited-time pop-up at Hong Kong Plaza in Shanghai generated 2.2 million in sales on the opening day alone, setting a new single-day record for any MINISO pop-up in 2025. This not only validate extraordinary pull of our LAND format store as a premier destination for IP launches, it also demonstrate a fundamental truth: prime offline experience combined with top-tier IP content are the golden formula for unlocking global consumer demand and maximizing the IP value.

As many of you may know, the Hong Kong Plaza is actually a top shopping mall, which is quite influential. All these stores and brands are the super-luxury brands.

We will be able to move into such department stores to launch our IP product. This represent the recognition from the top shopping malls and the recognition from the top valuable consumers.

While at the same time, the breakout IP product extend our customer reach beyond existing audience, elevating average transaction value, ASP, and strengthen repeated purchase behavior. Together with our store upgrades, they form a powerful virtuous circle: enhanced store format provide superior showcase and immersion environment for IP, while IP product, in turn, provide targeted and highly loyal customer base, jointly driving sustained high-quality same-store sales growth.

For us, IP business never purely about selling product. We aspire to leverage MINISO global supply chain capacity, category development expertise, omnichannel reach to give every great IP and every talented creator a bigger stage and to build a more enduring IP that stand the test of the time and earning long-term consumer affection.

The Jennie collaboration is actually a new area we tap in of working with international well-known celebrities. In the past, we have the image IP and the content core IP.

However, the collaboration with Jennie actually showcase a new co-brand IP with celebrities, which actually provide ample room for the future cooperation. You see that for one of our peers, they are actually have a co-collaboration with Lisa, which bring a great and extraordinary global value.

By working with celebrities, we will be able to continue to improve and maximize the IP value. They are all the world top artists and the KOL.

At the same time, I also would like to share with you, based upon our latest operating data, we expect domestic same-store sales growth in Q1 would be quite aggressive. In 2026, we hope that we're going to delivering more surprise.

We hope more investor will keep a look at that and working with more celebrities in the near future. The second question you asked about is product and IP strategy.

We will continue to deepen our dual-engine approach of top-tier IP collaboration plus local market adaptation. On one side, we'll intensify our partnership with leading global IP.

On the other side, we will further expand our assortment on high-margin categories like home goods, plush, and blind box. Just now you mentioned about the US market, in terms of the local direct sourcing, we will optimize our SKU architecture to focus on high velocity and high-margin items, achieving a better balance between scale expansion and GP margin.

I have just traveled from the United States back. In 2026, we're going to have a more precise analysis on what product need to be sourced locally and what need to be shipped there from domestic China.

Sometimes sourcing from domestic China will present high margin. In 2025, due to the volatile tariff policy, we actually release more room for local sourcing.

However, in 2026, we believe the tariff turmoil has already gone. We will be more certain and clear on what are going to be exported from China to US and what are going to have the localized sourcing.

Regarding the margin, let me to be frank, at procurement, asset, and headquarter sourcing, we need to further improve our efficiency, optimize the merchandise mix, and then to improve the GP margin structure as a whole. Our target was to further improve operating margin in 2026, with a more pronounced recovery expected in H2 of the year.

We provide a six-month buffer in H1 of this year. I believe H2 of 2026 would be great, including our LAND store format.

Internally, we keep looking at increasing ASP and also the price per item. We are working very hard in order to further improve the ASP as well as the price of the per product, same as GP margin per product.

Thank you.

Thank you. Thanks for giving me the chance to raise a question.

I'm Samuel from UBS. I have a few small questions.

The first question, Mr. Ye, in your prepared remarks, you mentioned something regarding IP.

I'd like to ask you regarding your proprietary IP. What's the progress on proprietary IP?

What are the sales target and strategic plan for 2026? What are the key third-party IP priorities?

Anything you can share with us? My second question was regarding overseas market, that is specifically talking about Mexico market.

In 2025, Mexico market faced headwinds. What is the outlook for 2026?

My final question, I also would like to ask Mr. Ye, you mentioned you invested in an AI company.

Can you disclose the name of that company? Thank you.

Thank you. Three good questions.

Let me respond to the first one. Let me talk about our IP, first starting by YOYO.

With less than six months of its launch in 2025, YOYO has already surpassed revenue of more than 100 million milestone. From January to March of 2026, YOYO-related sales was already 165 million, around 50 million per year.

According to this trend, in 2026, for YOYO only, our sales would be 600 million. If we also combine international market, it's going to be 800 or even 1 billion, likely to hit the 1 billion revenue milestone.

The revenue was beyond our expectation. YOYO is actually a Chinese proprietary IP.

If you take a look at our IP portfolio, and YOYO is the first one to have a revenue exceeding 100 million, it takes less than six months. There's no other Chinese proprietary IP that could run such a revenue growth fast as YOYO, which can truly demonstrate our product and IP operation tactics and strategy and our robust confidence and the operations of the IP management.

Once we are working on that, we will be able to deliver faster growth. In terms of the product approach, we will carry forward the successful logic.

We redefine the structural landscape for designer toy market, maintain the category innovation as primary driver of the IP growth. All three product generation of YOYO released outstanding commercial results.

First generation remain most popular. Till now, the average transaction value is still about 400 RMB today.

The third generation product, the demand is go beyond our supply. While at the same time, we also be clear that product sales are not one dimension of IP management.

We place great emphasis on healthy, sustainable development of our IP. We will not sacrifice an IP longevity for the sake of short-term sales revenue.

I believe 2026 would be a great year for YOYO. We are very likely to have more product working with international outstanding IPs.

For example, IP from the Disney family, we are going to have a co-branded work with YOYO. That is how our proprietary IP working with the international IP for co-branding.

Till now, we have completed a full pipeline of 30 to 40 proprietary IPs. Among them, we have IPs from South Korea, from Japan, and from Thailand, or even all parts of the world, especially Guobao, Q-Bao, and Chuchu have completed the full proprietary process from creative design to the product readiness.

They will be introduced to global consumer in months ahead. Through those pipelines, we aim to fundamentally reshape the market perceptions of the MINISO IP categories and the product potential, creating more blockbuster IPs that deeply resonate with consumer needs.

I also would like to tell you, on 17th of May, we're going to have the MINISO photo gallery put into operation in Shanghai. That is going to be another key artist we're going to work with.

That artist, one painting masterpiece can sell tens of millions of RMB. Once our MINISO art gallery is being put into operation, we're going to engage more artists to work with us.

If we reflect on why YOYO's a great success, I think we do three things right. We constantly hold to our core conviction of category innovation to drive explosive IP growth.

Product innovation is quite important. First generation of YOYO is outstanding.

The success of YOYO have really allowed us to recalibrate our direction for product innovation and how category innovation going to be for IP business. MINISO has been deeply dived in the industry for many years.

We have built world-class capacity in multi-category product development, and that's of consumer insights that can help us to rapidly convert a creative IP concept into best-selling product. Secondly, we work on IP narrative first, product commercialization second, ensuring that IP develop its own soul and emotional resonance with consumer before product are launched to crystallize the value, not the other way around.

Thirdly, we built a fully integrated, end-to-end closed loop from the upstream creative ideation to the back-end supply chain to all-way omnichannel distribution, enabling rapid response to consumer demand and efficient product iteration and launch. The IP incubation model is also the way underpins our future capacity of next-generation blockbuster IPs.

This is also MINISO's three-part competitive moats: world-class category development capacity, early-stage IP potential detection capacity, and high-momentum, multi-channel global distribution capacity. Those are the three strands that will continue to empower the growth of our all IPs.

As you may already noticed, our flagship and the new LAND format store are having many YOYO installations. That is quite important for IP promotion.

That we do have a store in Causeway Bay, Hong Kong. We don't have our proprietary IP.

We can only show the Disney IP. The next month, we're going to have the YOYO artist installations at the store.

For any IP, you have to make sure expose the IP, especially your proprietary IP, at the store. That is our unique advantage of 8,000 stores worldwide.

With the installations and the YOYO presence in the store, that would be the best way to promote the IP at our own store and make it visible and touchable by the consumer. The third point regarding the third-party IP and proprietary IP portfolio, I have nine words: more IP, more portfolio, globalization.

In other words, we need to have the global licensed IP plus the proprietary IP. International IP, they have their advantage.

Some of them already have the themed movie, well-curated content, and their own strengths. Proprietary IP also are having the tribute of scarcity.

If it is only a MINISO proprietary IP, it's going to protect our business strengths. By having international IP plus proprietary IP, that would be the best business combination.

As we're working together, we will be able to make sure we have a stable business, and more was to be done. For example, recently, we have the Jennie collaboration, and we saw the Instagrammable moment on WeChat and the Xiaohongshu a lot.

If we're only do proprietary IP, I don't think the popularity will be that good. That's the reason I believe multi-IP, multi-category which, for sure, improve the consumer experience and also contribute to the business stability in long runs.

We need to be forward-looking rather than short-sighted. We market really validated.

Third-party IP plus proprietary IP would be the golden formula. We hope you can see up to two to three years whether my words will be validated by the market or not.

Till now, we also contracted with some incubation of independent original content artists, and we're also incubating the IP projects. Starting from '26, in '27 or beyond '28, our proprietary IP development is going better.

From the financial performance standpoint, proprietary IP outperforms third-party IP on gross margin contribution owing to the stronger consumer loyalty, greater pricing power, and absence of the licensing cost. The third-party IP, in other words, is powerful complementary benefits in new customer acquisition, audience expansion beyond our existing base.

It also provide us very good content marketing advantage. The two are highly synergistic, together driving sustained and high-quality growth of our IP-related business.

That, for MINISO LAND, the brand impact continue to ramp up. Many international IP are proactively take approach us of working together, even Jennie, the international top artist, to work with us.

Jennie has a nickname as Miss Chanel because Jennie's actually be the brand ambassador for many luxury product. Jennie's been happy with MINISO because of our strong brand awareness and the customer experience.

Let me just attend to the question regarding Mexico market. I was just coming back from Mexico.

I'm fully confident on that market. I believe it's going to be better in the near future.

Mexico market going to be the top three in the global arena. You can see that I went to Mexico, and I have a face-to-face guidance to the GM of Mexico market.

We need to do brand upgrading in Mexico market, develop the LAND store format. We need to have the MINISO LAND and Friends stores in the top 100 shopping malls in Mexicos with GFA more than 800 square meters.

In that way, the Mexico market going to see explosive growth. That I went to Mexico, and they have 100 stores have brand Zara.

All those stores have been taken as good shopping malls. Mexico landscape is very much like China.

Their GDP per capita and consumption structure is very much like China, with lower manpower cost. Mexico is actually in the best time for the offline business development.

We hope Mexico could actually become a benchmark market we have in Latin American country. When Mexico thrive, the Latin America market would be driven.

We're fully confident in the Mexico market. We have a high expectation over Mexico market.

Now we define Mexico market as our benchmark market. We will spend more effort and resources to make this market right.

We have a very clear strategy for Mexico market: same-store sales growth, and future growth will be quite promising. My fourth point: you can see in Q1 of 2026, Mexico also have a high-single-digit growth.

However, it's still before the excessive growth of Mexico market, still taking the old business model, old store format. If follow my line of thinking, I believe old stores could be transformed into LAND or Friends stores.

There's one store with Hermes, Chanel, and Dior as the neighborhood. This store is just to buy something unique and rather than the value for money.

I ask them, please just close down that store, renovate it, and sell the popular IP and the premier product. Mexico is been taken as back garden of the United States.

People come to Mexico really want to shop something unique. We find Mexico is a market with great opportunities.

We find out Mexico have a great array of the high-quality shopping malls and with a very strong traffic flow. We're not going to sell the daily necessities.

We're going to translate them into the flagship stores and selling the IP and the trendy toys along with the immersive experience and then to drive the interest consumption to improve ASP. I believe, after Q2, Q3 and Q4 performance is truly expected in Mexico.

If we're able to renovate our store into upgraded ones in top 100 shopping malls in Mexico, I believe the performance of that 100 store in Mexico will be doubled. Fourth question was asking about our investment.

We're been quite lucky. We invested in a company named MiniMax.

That is a AI company. MiniMax being applied at our company very well, and I also would like to continue to work with MiniMax.

We invested MiniMax when they still have a very low evaluation. Now the returns still looking pretty good.

The name of that company is MiniMax. That's all.

Thank you Samuel for your question.

Hello, Mr. Ye and Eason.

Thanks for giving me the chance to raise a question. My name is Yang Ranbo from CICC.

Just one question from me. In 2025, it seems YH is pressure your margin and financial statement.

What would be your plan for YH business?

Thank you very much. I need to clarify to all MINISO shareholders, my primary focus has always been and will always be MINISO.

It's our foundation and the core driver of our future growth going forward. It is also the foundation to make MINISO great.

You can sit and be reassured, 90% of my energy and time would be on MINISO. MINISO would always be my highest priority.

My investment in YH will not distract my attention from that. Regarding YH, we have completed the management team transition, with Wang Shoucheng be appointed as YH CEO.

Under his leadership, YH has its own complete management team that are now independently responsible for the day-to-day operation and strategic execution of the business. Regarding YH future, and we still feel confident.

For MINISO, and me myself, I still would like to say MINISO still be my highest priority. It's also the cornerstone for the company to further expand and making MINISO truly great.

I always notice the market development and momentum of MINISO is quite unique worldwide. We will seize the opportunity, continue to ramp up our business, and making MINISO great.

Thank you.

Thank you. I'm Shuting from Huatai Securities.

Congratulate on the company of delivering a satisfying scorecard to the market, which is truly in line of the refined operation. Mr.

Ye, you have already introduced proprietary IP strategy. We have already noticed in 2026, you take it as an operating year for proprietary IP or the dynamic elevation for proprietary IP.

What is organizational structure of proprietary IP team now? What pipeline and marketing initiatives should we look forward in 2026?

Thank you. We define 2026 as the elevation year for our proprietary IP.

The foundational first step is in the comprehensive organizational restructuring and top-level design of our IP business. We established a dedicated IP business group with full accountabilities from the IP value chain, from creative incubation to product development to omnichannel operation.

Actually, our leader of the merchandise has been placed into the IP business group. We're just using the very experienced people to take lead of the IP business group, the best and most capable people to run the IP business.

You can already notice how important IP business would be for MINISO. Many people are just using new manager run new business, it's going to be quite risky.

We are still remain confident in our new business. We're just using the most capable team and individuals to run the new business.

That's what we do at MINISO. The most capable individual and the capable team running the new business, IP business.

That business is fully independent and is a new business group business. Regarding the team build-out, we have completed targeted headcount expansion regarding IP operation, product management, creative design.

We also established two new back-end R&D department, including CMF, color, material, finish, and ink and color department. We are among a few companies that started to enter into material study.

For our trendy toys, we're not only do IP, we also do product design and material study and color study and finish study. We strengthen IP product manufacturing from supply chain, building the product quality, continue to consolidate the foundation for long-term IP growth.

That's what we did in H2 of 2025. We have the fabrics and the raw material expert.

We have the CMF, color, material, finish, a unit that is established in Dongguan, very close to our headquarter. Regarding marketing and communication, we're going to build global IP influence through diversified range of activations, for example, attend international art fair and fashion week.

On the 17th of May, we're going to have the MINISO photo galleries put into operation in one of the best art center in Shanghai. That also help to showcase our standing within the artist community for continued elevate.

We're going to have our own photo galleries, not only one in Shanghai, but also a new one in Hong Kong, because Hong Kong is actually the hub for global artists. We're going to build such photo galleries in Hong Kong, too.

By leveraging those photo galleries, we're going to engage with artists worldwide, continue to ramp up the collaboration. We're also going to leverage the KOLs to continue to amplify our brand reach.

Last year, for Chiikawa as well as other international artists started to work with us for the marketing event. Even some of the short videos and secondary creations being quite popular on Xiaohongshu.

There are many secondary creation content of YOYO. You can also see that even within the secondary information or content creation, YOYO is actually ranking number one among all IPs.

The fans are quite active. Thirdly, at MINISO, we actually have the IP-specific zones, translating the brand impact into actual sales in Guangzhou.

We also have the artist street that is accounted for 50 square meters GFA. We're going to allow new artist and new products being shelved in those new artist street by having the interactions with the consumer.

I believe, by so doing, we will be able to continue to scale our investment in proprietary IP incubation, create ecosystem, and back-end R&D capacity. All investment would working for long-term, healthy development of IP, not short-term traffic speculation, with focus on building high-quality IP that accumulate enduring brand value and generate sustainable cash flow, cementing a robust second growth curve for the company's long-term future.

That's what the strategy we have now. In the near future, as we continue to improve our business capacity, we're going to have new IP and new strategies to truly unlock the value of IP.

Thank you, Mr. Ye.

Thank you very much. I have a question for your SSSG, and what is the current SSSG, same-store sales performance?

What about the store expansion for site selection and also the operating margin level in different markets, especially in the directly operated stores in overseas? In the past, you are still in the investment stage, and when we're going to expect on the operating return improvement?

Thank you.

Thank you. I'm Eason.

Let me help to respond to your question, Anne. I think, for the past 12 months, our growth philosophy is getting more clear: same-store sales growth as a foundation, and new store expansion, especially high-quality ones, as incremental upside.

Both are working in tandem. For the SSSG, our 2026 is to deliver a positive SSSG globally.

It's quite a challenging. However, we have ways to make it happen, because in international market, we still have some agency stores.

It's not easy to make their growth positive. However, have good assortment, we have every confidence we will be able to have it happen.

Regarding store expansion, I have already mentioned a net increase of 510 to 550 high-quality store globally. As China and international markets serving twin engine for growth, in China, we plan to new add 120 stores.

Majority of them would be the LAND format and large-format stores. We're also going to close down underperforming small stores and continue to optimize existing portfolio.

In 2026, besides the same-store sales growth, the high-quality new store opened in '25 and '26 will contribute to meaningful in sequential years as they mature. In China, we're still going to harvest a good growth.

Net growth store only need 120. For international market, net store growth would be 450 stores, covering North America, Europe, Southeast Asia, and Latin America, deploying a combination of LAND format flagship store plus high-quality standard stores in prime retail destinations.

As Mr. Ye mentioned, we need to move into the world-class business street to improve the brand potential.

Regarding North America, the same-store growth is already exceed 20% in January, February this year. We will accelerate store openings in 2026.

OPM expected to have a low-single-digit improvement. In Europe, since the start of 2026, we see SSSG grow by double digits.

Store expansion is progressing steadily. For example, in Poland, we open two stores, which is quite efficient, working on trendy toys only, that is making lucrative profits.

In Europe, we have another four direct-operated market. Those are still in the early-stage investment.

We hope its OPM could be improved further. In Mexico, since the start of 2026, we will see SSSG growth be a positive number.

We believe Mexico with agent model still providing a simple operating profit margin. Southeast Asia, we see some challenge.

However, for MINISO, our business model is globalization. No matter some market's being challenged, we would be able to have our global expansion to diversify our investment portfolio.

May some challenge in Southeast Asia, however, we're going to return to positive for SSSG, working on Indonesia premier location to have the new stores. Overall speaking, the SSSG and OPM trajectory across all key markets still remain healthy, which can also help to showcase we're still in the fast expansion and growth period.

For the key driver, there are four: optimizing store, product upgrading, scale expansion, and fourthly, we should also well-maintain the cost and expenses. Thank you.

Thank you, Mr. Ye and the management team.

I have a question regarding Southeast Asia market. Southeast Asia market is your first stop for international expansion.

In '25, I made a visit in Southeast Asia. The performance of Southeast Asia market has been a concern of the investor.

What would be the inventory of the Southeast Asia market? Are you going to adjust operation and product strategy there in 2026?

Thank you. Regarding the question for Southeast Asia market, I think in 2026, there will be a huge adjustment.

MINISO started our global expansion for 10 years. We made major investment in mainland China.

2026, we're going to adjust the four key markets: Thailand, Malaysia, Philippines, and Indonesia. In Thailand, we have been quite successful, and the LAND format stores being delivered thank-full result.

Indonesia is going to copy the Chinese model. Southeast Asia are quite close to China, and their consumption pattern is very much impacted by China.

The lesson and success we make from China can help guarantee success in Southeast Asia. Recently, we went to Malaysia to have a MINISO LAND store with a very nice performance.

In 2026, we're going to continue to copy what we do in China to the key market in Southeast Asia. I believe, after the 2026 adjustment in H1, then in H2, Southeast Asia going to provide you a good turnaround.

We have a very clear strategy and very transparent strategy. We're going to make execution by team.

Thank you, Mr. Ye.

No further question from me.

Thank you. Thanks for the team, Mr.

Ye and the management team. I'm Qingyang from Yangtze River Securities.

I have a question to you regarding store renovation and upgrade program. Is it possible for you to tell us what would be the strategy for 2026?

How many stores do you expect to renovate in '26? What's the result from the completed renovations so far?

Thank you very much. In 2025, we completed renovation for 290 stores.

The result was highly impressive. Renovated store, the average sales uplifted by 40% to 50%.

The improvement is not attributable to a single factor, rather than a simultaneous improvement of foot traffic, conversion rate, and ASP. They are all being improved.

While at the same time, rent as a percentage to the sales has declined meaningfully, staff productivity and sales per square meter rising significantly. Single-store profitability is improved, too.

More importantly, you can see last year, MINISO LAND has been getting popular. We also got greater support from the landowner.

They're happy to provide better locations and larger locations to allow us to have the LAND stores and the larger format. With premier location, the cheaper rent has been provided.

Then in 2026, with our proprietary IP development, some of the shopping malls and department stores are happy to present the best location for us to do aesthetic IP exposure and the IP presence. That can really showcase how scale the resources we would be.

In 2026, we're going to accelerate renovation and adjustment. Underperformed stores would be upgraded and be changed to the premier location.

2026 is a year for accelerated renovation. I have already mentioned, in the near future, 80% of the stores need to be renovated and upgraded.

With our proprietary IP development, in the near future, our stores are going to be quite unique, quite differentiated. They are going to be more influential in the landowner mind and be able to get a good leasing term.

In that way, I believe that also going to contribute to our business growth and profitability in China.

Thank you.

Thanks for all the investors and analysts for your time for this conference. If you have any further questions, please reach out to the IR team.

Thanks for your attention and support to MINISO Group. See you next quarter.

Thank you.