MINISO: POSITIVE PROFIT ALERT – Form 6-K

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POSITIVE PROFIT ALERT

This announcement is issued by MINISO Group Holding Limited (“MINISO“or the”Company“) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the “Registration rules“) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap 571 of the Laws of Hong Kong).

The Board of Directors of the Company (the “Plank“) wishes to inform shareholders and potential investors of the Company that based on a preliminary review of the unaudited consolidated management accounts, the Company expects to record adjusted net income, a non-IFRS measure, which is defined as profit for the period excluding (i) changes in the fair value of shares redeemable with other preferential rights, and (ii) share-settled share-based payment expenses, of at least RMB 200 million for the quarter ended June 30, 2022 (“June term“), compared to an adjusted net profit of approximately RMB 142 million1 for the same quarter last year, representing a year-over-year increase of at least about 40%. For the full fiscal year ending June 30, 2022, the Company currently expects to record adjusted net profit of at least RMB 700 million, compared to adjusted net profit of approximately RMB 477 million for the fiscal year ended. on June 30, 2021, representing a year-on-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 of a year-over-year, which resulted from a higher revenue contribution from our international operations and higher gross margins from certain products launched after our strategic upgrade of the MINISO brand in China; and (ii) the expense control measures taken by the Company to address the resurgence of COVID-19 in China.

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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.

The information contained in this announcement is based solely on the Company’s preliminary assessment with reference to the Company’s unaudited consolidated management accounts for the June quarter and is not based on financial data or other information that has been audited or reviewed by the Company’s independent committee. auditor or the audit committee of the board of directors. 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 cautioned not to place undue reliance on the information disclosed herein and to exercise caution when trading in the Company’s securities. Any shareholder or potential investor who is in doubt is advised to seek advice from professional advisers.

Non-IFRS Financial Measures

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 expenses.

MINISO presents the non-IFRS financial measure because it is used by management to assess its operating 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 that 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 comparable 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.

By order of the council

MINISO Holding Group Limited

Mr. YE Guofu

Executive Director and President

Hong Kong, August 3, 2022

On the date of this announcement, the Board of Directors of the Company is composed of Mr. YE Guofu, Mr.LI Minxin, Mr.ZHANG Saiyin as executive directors, Mrs.XU Lili, Mr.ZHU Yonghua and Mr.WANG Yongping as independent non-executive directors.

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