MINISO Group Announces Positive Earnings Alerts

0

GUANGZHOU, China, August 3, 2022 /PRNewswire/ — MINISO Group Holding Limited (NYSE: MNSO; HKEx: 9896) (“MINISO”, “MINISO Group” or the “Company”), a global retailer offering a variety of design-driven lifestyle products , today announced earnings alerts for the June quarter of 2022 and the full fiscal year of 2022.

The Board of Directors of the Company (the “Board”) wishes to inform shareholders and potential investors of the Company that, based on a preliminary review of the unaudited consolidated management accounts, the Company intends to register a adjusted net income, a non-IFRS measure, which is defined as profit for the period excluding (i) changes in fair value of shares redeemable with other preferential rights, and (ii) payment expenses based on equity-settled shares, not less than 200 million RMB for the quarter ended June 30, 2022 (“June Quarter”), compared to adjusted net earnings of approximately RMB142[1] million for the same quarter last year, representing a year-over-year increase of at least approximately 40%. For the full fiscal year ended June 30, 2022the Company currently expects to record adjusted net income of at least 700 million RMBcompared to an adjusted net profit of approximately 477 million RMB for the year ended June 30, 2021which represents a year-over-year increase of at least approximately 46%.

Based on currently available information, the Board believes that the expected year-over-year increase in adjusted net income in the June quarter was primarily due to (i) an increase in gross margin year-over-year on the other, which resulted from a higher revenue contribution from our international operations and higher gross margins thanks to certain products launched after our strategic upgrade of the MINISO brand in China; and (ii) the expense control measures taken by the Company to deal with the resurgence of COVID-19 in China.

Mr. Guofu YeFounder, Chairman and CEO of MINISO, said: “Despite the ongoing challenges of the pandemic in Chinaparticularly in April and May, our business demonstrated great resilience and flexibility in extreme market environments, and our globalized operation provided us with more room and flexibility for future growth compared to comparable companies.”

“Global retailers face cost pressures as we enter one of the highest inflation rates in four decades. History has reminded us time and time again that consumers tend to seek value in a high inflation environment, and this is a good opportunity for us. We will leverage MINISO’s core capabilities to strengthen our value proposition globally,” Mr. Ye continued.

The information in this announcement is based solely on the Company’s preliminary estimate of the highest inflation with reference to the Company’s unaudited consolidated management accounts for the June quarter and is not based on any financial or other information that has been audited or reviewed. by the Company’s independent auditor or the Audit Committee of the Board. The data above may therefore differ from the figures to be published in the audited or unaudited consolidated financial statements to be published by the Company. Accordingly, the figures above are strictly indicative and not for any other purpose.

Shareholders and potential investors are advised not to place undue reliance on the information disclosed herein and to exercise caution when trading in securities of the Company. Any shareholder or potential investor who is in doubt is advised to seek advice from professional advisers.

[1] After reviewing its non-IFRS financial measures and the reconciling items with the corresponding IFRS financial measures, the Company has adjusted the calculation of the non-IFRS financial measures and modified the definition of its adjusted net income as profit for the period excluding (i) changes in the value of shares redeemable with other preferential rights, and (ii) equity-settled share-based payment expenses as of the fiscal quarter ended March 31, 2022. As a result of this change, the Company has restated adjusted net income for the fiscal Quarter June 2021 to approximately RMB 142 million.

About MINISO Group

MINISO is a global retailer offering a variety of design driven lifestyle products. The company serves consumers primarily through its extensive network of MINISO stores and promotes a relaxing, treasure-hunting and engaging shopping experience full of delicious surprises that appeals to all demographics. Aesthetic design, quality and affordability are at the heart of every product in MINISO’s extensive product portfolio, and the company continually and frequently rolls out products with these qualities. Since opening its first store in China in 2013, the company built its flagship brand “MINISO” as a globally recognized retail brand and established an extensive store network around the world. For more information, please visit https://ir.miniso.com/.

Non-IFRS financial measure

When evaluating the business, MINISO considers and uses adjusted net profit as an additional measure to review and evaluate its operational performance. The presentation of the non-IFRS financial measure is not intended to be considered in isolation or as a substitute for financial information prepared and presented in accordance with IFRS. MINISO defines adjusted net profit as profit for the period excluding (i) changes in the fair value of shares redeemable with other preferential rights and (ii) equity-settled share-based payment charges.

MINISO presents the non-IFRS financial measure because it is used by management to assess its operational performance and formulate business plans. The non-IFRS financial measure allows management to assess its results of operations without considering the impacts of the aforementioned non-cash and other adjusting items which MINISO does not consider indicative of its future operating performance. Accordingly, MINISO believes that the use of the non-IFRS financial measure provides useful information for investors and others to understand and evaluate its results of operations in the same way as management and the board of directors.

Non-IFRS financial measure is not defined in accordance with IFRS and is not presented in accordance with IFRS. Non-IFRS financial measurement has limitations as an analytical tool. One of the major limitations of using the non-IFRS financial measure is that it does not reflect all revenue and expense items that affect MINISO’s operations. Additionally, the non-IFRS financial measure may differ from non-IFRS information used by other companies, including peer companies, and therefore their comparability may be limited.

The non-IFRS financial measure should not be considered in isolation or construed as an alternative to profit/(loss), as applicable, or any other performance measure or as an indicator of MINISO’s operational performance. Investors are encouraged to review MINISO’s historical non-IFRS financial measures in light of the most directly comparable IFRS measures. The non-IFRS financial measure presented herein may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly named metrics differently, which limits the usefulness of those metrics when benchmarking MINISO data. MINISO encourages you to review its financial information in its entirety and not rely on any single financial measure.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words or phrases such as “may”, “will”, ” expects”, “anticipates”, “aims”, “estimates”, “intends”, “plans”, “believes”, “is/are likely to”, “potential”, “continues”, or other similar expressions MINISO may also make written or oral forward-looking statements in its periodic reports to the United States Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about MINISO’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including, but not limited to, the following: MINISO’s mission, objectives and strategies; future business developments, financial conditions and results of operations; the expected growth of the retail market and the retail market for branded varieties of lifestyle products in China and globally; expectations regarding market demand for and acceptance of MINISO’s products; expectations regarding MINISO’s relationships with consumers, suppliers, MINISO’s business partners, local distributors and other business partners; industry competition; the proposed use of the product; and relevant government policies and regulations relating to MINISO’s business and industry. Further information regarding these and other risks is included in MINISO’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and MINISO undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Contact with Investor Relations:

Raine Hu
MINISO Holding Group Limited
E-mail: [email protected]
Telephone: +86 (20) 36228788 extension 8039

SOURCE MINISO Group Holding Limited

Share.

Comments are closed.