【Earnings Highlights】
- Total revenue reached RMB 4.43 billion, up 19% year-over-year
- MINISO China revenue was RMB 2.49 billion, up 9% year-over-year
- Overseas revenue was RMB 1.59 billion, up 30% year-over-year
- Gross margin improved by 1 percentage point year-over-year to 44.2%

【Q&A Highlights】

Q1: Can you provide more details on the improvement in same-store sales growth (SSG) in China and the outlook for store openings?

A:
- China SSG improved significantly in Q1, narrowing to a mid-single-digit decline year-over-year. As of yesterday, the decline has further narrowed to a low single-digit.
- The company is confident in achieving positive SSG growth for the full year 2024 in China.
- SSG improvement was more pronounced in first- and second-tier cities in Eastern and Southern China.
- The company maintains its focus on store network optimization rather than aggressive expansion. It still aims for double-digit growth in China, driven by SSG improvement and higher productivity of existing stores.

Q2: How is the overseas market, especially the U.S., performing in terms of SSG? What strategies are being implemented to improve performance?

A:
- Overseas SSG in Q1 was similar to China's performance. However, when considering the high base (21% growth) from last year, the two-year compound growth remains strong.
- The U.S. and Mexico markets have shown signs of improvement since April.
- For the U.S. market, MINISO is focusing on two aspects:
1. Channel: Concentrating store openings in 24 states that cover 76% of the U.S. population to achieve better economies of scale and operational efficiency.
2. Products: Enhancing product development specifically for the U.S. market, focusing on creating regular best-sellers, and improving supply chain management.

Q3: What is MINISO's strategy regarding IP (Intellectual Property) collaborations and development?

A:
- MINISO continues to deepen partnerships with top-tier global IPs, gaining access to better resources and exclusive category authorizations.
- The company emphasizes the importance of product design and quality in IP collaborations.
- MINISO is also developing its own IPs. A recent example, Jidemao Bear, is expected to achieve sales of RMB 400-500 million this year.

Q4: How is MINISO balancing the introduction of third-party products with maintaining gross margins?

A:
- The introduction of third-party products has not negatively impacted gross margins. In Q1, MINISO China's gross margin remained stable year-over-year.
- Third-party products are introduced in specific categories to enhance the "treasure hunting" experience for customers and capitalize on natural foot traffic.
- The company maintains a balance between third-party products and its own branded items to cater to different customer needs and shopping motivations.

【Future Outlook】
- MINISO remains confident in achieving double-digit growth in China for the full year 2024.
- The company expects to see continued improvement in overseas markets, particularly in the U.S.
- MINISO will continue to focus on store network optimization, product development, and enhancing operational efficiency both in China and overseas markets.

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.