Miniso (9896) said its interim net profit fell 22.6 percent year-on-year to 1.17 billion yuan (HK$1.27 billion), mainly due to higher finance costs and a loss on its investment in Chinese supermarket operator Yonghui Superstores.
The company said it remains optimistic about the development of mainland China’s offline retail industry and views the Yonghui stake as consistent with its investment strategy, according to an exchange filing.
Revenue climbed 21.1 percent from last year to 7.76 billion yuan, supported by an 11.4 percent rise in sales from the Miniso brand in mainland China, a 29.4 percent increase in overseas sales, and a 73 percent surge in revenue from its Top Toy unit.
The number of Miniso stores in the mainland and overseas rose by 108 from the end of last year to 7,612, including 4,305 in China. Its Top Toy stores increased by 17 to 293, of which 283 are in China.
The company declared a special cash dividend of 7.24 US cents (56.47 HK cents) per ordinary share.
It also disclosed that Top Toy recently completed a round of strategic financing led by Temasek, with the unit's post-transaction valuation reaching about HK$10 billion.
Cost of sales rose 19.8 percent year-on-year to 5.24 billion yuan in the first half, while selling and distribution expenses jumped 43.3 percent to 2.18 billion yuan.
The company said this increase was mainly attributable to its investments into directly operated stores to pursue future business success, especially in strategic overseas markets such as the United States.
Promotion and advertising expenses increased 6.2 percent.
STAFF REPORTER
