MINISO Group Holding Limited (09896) has announced a positive profit alert. Based on a preliminary review and assessment of the unaudited consolidated management accounts for the quarter ended March 31, 2026, the Group expects to record: (i) Revenue of approximately RMB 5.678 billion to RMB 5.728 billion, representing a year-on-year increase of about 28% to 29%; (ii) Operating profit of approximately RMB 1.511 billion to RMB 1.531 billion, representing a year-on-year increase of about 113% to 116%; and (iii) Profit for the period of approximately RMB 1.228 billion to RMB 1.248 billion, representing a year-on-year increase of about 195% to 200%.

The increase in operating profit for Q1 2026 is primarily attributable to an unrealized, mark-to-market gain of RMB 870 million to RMB 880 million arising from the fair value change of an investment in a limited partnership. This gain is mainly due to the partnership's early-stage strategic investments in the artificial intelligence sector prior to its initial public offering. This positive impact was partially offset by (i) increased equity-settled share-based payment expenses related to TOP TOY compared to the same period last year, and (ii) a net foreign exchange loss, whereas a net foreign exchange gain was recorded in the same period last year.

The increase in profit for the period in Q1 2026 is primarily attributed to the following factors: (i) The aforementioned unrealized, mark-to-market gain from the fair value change of the investment in the AI-focused limited partnership; (ii) A share of profit from its investment in Yonghui of approximately RMB 78 million; and (iii) The absence of a one-time derivative issuance cost related to equity-linked securities issued in 2025, which was recorded in the same period last year.

These positive factors were partially offset by: (i) Increased equity-settled share-based payment expenses related to TOP TOY compared to the same period last year; (ii) A net foreign exchange loss, whereas a net foreign exchange gain was recorded in the same period last year; (iii) A loss arising from the fair value change of the redemption liability related to preferred shares issued by TOP TOY for its strategic financing in 2025; and (iv) Increased interest expenses related to equity-linked securities and bank loans used for the acquisition of Yonghui equity compared to the same period last year.

The Company expects to record: (i) Adjusted operating profit, excluding foreign exchange gains/losses, of approximately RMB 829 million to RMB 849 million, representing a year-on-year increase of about 13% to 16%; and (ii) Adjusted net profit, excluding foreign exchange gains/losses, of approximately RMB 624 million to RMB 644 million, representing a year-on-year increase of about 7% to 10%.