# MINISO Dragged Down by Yonghui Supermarket, Net Profit Drops 50% as Debt Surges, Nine-Month Financial Expenses Reach 233 Million

Yangtze Business Daily News ● Yangtze Business Reporter Shen Yourong

Since listing in Hong Kong, MINISO (09896.HK, MNSO.US) has experienced its first decline in operating performance.

On the evening of March 13, MINISO disclosed preliminary financial results for fiscal year 2025. The company expects to achieve operating revenue of approximately 21.44 billion to 21.445 billion yuan, a year-on-year increase of about 26%; estimated operating profit of 3.3 billion to 3.305 billion yuan, and adjusted operating profit of 3.665 billion to 3.675 billion yuan, both showing growth compared to the same period last year.

However, MINISO forecasts net profit of 1.32 billion to 1.33 billion yuan, down about 50% from 2.635 billion yuan in the same period last year.

Revenue growth and operating profit increase, why did net profit drop sharply? While multiple factors contributed, the main reason lies with A-share company Yonghui Superstores (601933.SH).

In 2024, MINISO spent 6.3 billion yuan to acquire the position of largest shareholder in Yonghui Superstores. In 2025, Yonghui Superstores is expected to incur a loss of 2.14 billion yuan. The projected loss of Yonghui Superstores is expected to result in an investment loss of about 740 million yuan for MINISO.

Yangtze Business Daily found that MINISO also faces financial pressure. As of the end of September 2025, the company’s asset-liability ratio rose to 62.23%, the highest since 2021. In the first nine months, the company’s financial expenses reached 233 million yuan, a sharp year-on-year increase.

Three factors combined lead to a sharp decline in net profit

Despite ongoing global expansion, the performance of the global retail brand MINISO has significantly declined.

According to the latest disclosures, for the full year 2025, MINISO expects to achieve operating revenue of approximately 21.44 billion to 21.445 billion yuan, a year-on-year increase of about 26%; estimated operating profit of 3.3 billion to 3.305 billion yuan, slightly below the 3.316 billion yuan in the same period last year; and adjusted operating profit of 3.665 billion to 3.675 billion yuan.

Previous disclosures showed that as of the end of September 2025, MINISO operated 7,831 stores, net opening 645 stores year-on-year. Among them, mainland China stores numbered 4,407, net opening 157; overseas stores numbered 3,424, net opening 488.

By the end of September 2025, another well-known brand, TOP TOY, had 307 stores, net opening 73.

The continuous addition of global stores and expansion of sales channels have driven steady growth in revenue. However, the company’s net profit has declined.

MINISO forecasts that net profit for fiscal year 2025 will be between 1.32 billion and 1.33 billion yuan, down 49.91%–49.53% from 2.635 billion yuan in the same period last year.

The decline in net profit is mainly due to three factors. First, in 2025, MINISO issued equity-based compensation of about 230 million to 240 million yuan to TOP TOY management and employees, and in the 2025 strategic financing, the redemption liability of preferred shares issued by TOP TOY changed, resulting in a loss of about 150 million to 160 million yuan. Second, the company’s interest expenses related to stock-linked securities issued in 2025 amounted to about 192 million yuan, including approximately 173 million yuan of non-cash expenses.

The biggest impact comes from investment losses related to the stake in Yonghui Superstores. In September 2024, MINISO invested around 6.3 billion yuan to acquire a 29.40% stake in Yonghui Superstores. In 2025, Yonghui Superstores is expected to lose 2.14 billion yuan.

This investment is projected to generate an investment loss attributable to MINISO of about 740 million yuan.

However, for fiscal year 2025, MINISO’s adjusted net profit is expected to be between 2.89 billion and 2.9 billion yuan, an increase from 2.721 billion yuan last year. The company states that the adjusted net profit excludes share-based compensation expenses. This performance is mainly due to a continuously enriched product mix, increased brand awareness, and ongoing expansion and optimization of sales channels.

Rapid growth in financial expenses

The decline in MINISO’s net profit is also closely related to rising expenses.

2025 marks the first year since MINISO’s listing in Hong Kong that net profit has decreased. From fiscal years 2022 to 2024, the company achieved revenues of 10.086 billion, 11.473 billion, and 16.994 billion yuan, with year-on-year growth of 11.18%, 13.76%, and 48.12%; net profits were 640 million, 1.782 billion, and 2.635 billion yuan, respectively, with 2022 turning profitable after losses, and 2023 and 2024 showing growth of 178.44% and 47.87%.

Along with expanding sales channels, MINISO’s expenses have increased significantly. For example, in the first three quarters of 2023 to 2025, revenues were 8.221 billion, 12.281 billion, and 15.19 billion yuan, with growth rates of 5.83%, 49.39%, and 23.67%. Corresponding sales expenses were 1.237 billion, 2.519 billion, and 3.611 billion yuan, with growth rates of 13.69%, 103.64%, and 43.35%.

It is evident that sales expenses have grown faster than revenue. In the first three quarters of 2025, sales expenses accounted for 23.77% of revenue, up 3.26 percentage points from the same period in 2024, when it was 20.51%. In 2023, this ratio was 15.05%.

MINISO’s debt has increased sharply. As of the end of September 2025, total short-term and long-term borrowings reached 7.508 billion yuan, compared to just 70 million yuan in the same period last year.

The surge in debt has led to a rapid increase in financial expenses. In the first three quarters of 2025, financial expenses were 233 million yuan, compared to -73 million and -42 million yuan in the same periods of 2023 and 2024.

The sharp rise in debt and financial expenses is directly related to the investment in Yonghui Superstores. In 2024, the company invested about 6.3 billion yuan to become the largest shareholder, significantly increasing its debt.

Since acquiring the stake, Yonghui Superstores has continued to incur losses, and MINISO has not gained any returns, but has had to bear substantial funding costs annually.

Of course, MINISO’s own financial pressure is not very severe. As of the end of September 2025, the company’s cash (cash and cash equivalents, restricted cash, time deposits over three months to maturity, and other investments classified as current assets) totaled 7.766 billion yuan. Nonetheless, as it continues global expansion, MINISO cannot ignore financial security.