MINISO Group Holding Limited (09896) saw its shares rise by over 4% in the afternoon session. As of writing, the stock was up 3.03% to HKD 28.54, with a trading volume of HKD 122 million.

The company issued a positive profit alert during the midday break, forecasting first-quarter revenue of approximately RMB 5.678 billion to RMB 5.728 billion, representing a year-on-year increase of about 28% to 29%. Operating profit is expected to be between RMB 1.511 billion and RMB 1.531 billion, a significant rise of roughly 113% to 116% compared to the same period last year. Profit for the period is projected to reach RMB 1.228 billion to RMB 1.248 billion, marking an increase of about 195% to 200%.

Adjusted net profit, which excludes the impact of foreign exchange gains and losses, is estimated to be in the range of RMB 624 million to RMB 644 million, indicating a year-on-year growth of approximately 7% to 10%.

The company attributed the substantial increase in operating profit primarily to an unrealized fair value gain of RMB 870 million to RMB 880 million from a pre-IPO strategic investment in the artificial intelligence sector made through a limited partnership. This gain was partially offset by higher share-based compensation expenses related to TOP TOY compared to the same period last year, as well as a net foreign exchange loss, whereas a net foreign exchange gain was recorded in the prior-year period.