MNSO (09896) reported a shareholders' profit of approximately 962 million yuan for the first half of the year, representing a year-on-year increase of 6.13%. The performance in mainland China was impressive.

MNSO (09896) announced its performance for the first half of 2026, with revenue of approximately 11.499 billion yuan, representing a year-on-year increase of 22.4%. Gross profit was 5.094 billion yuan, up 22.5% year-on-year. Profit for the period grew by 5.6% year-on-year to 957 million yuan, while adjusted net profit decreased by 15.66% to approximately 1.079 billion yuan. Profit attributable to equity shareholders was about 962 million yuan, up 6.13% year-on-year. As of June 30, 2026, the total number of the companys stores reached 8,674, a net increase of 769 stores year-on-year, with a net increase of 189 stores from the beginning of the year. Among them, revenue from the MNSO brand grew by 21.6% year-on-year to 10.513 billion yuan, mainly driven by the following factors: (i) 26.2% growth in revenue from mainland China, benefiting from mid-single-digit same-store sales growth; and (ii) 14.9% growth in overseas market revenue, with a low single-digit decline in same-store GMV. Revenue from overseas markets accounted for 38.6% of MNSO brand revenue, compared to 40.9% in the same period last year. Revenue from the TOP TOY brand grew by 32.7% year-on-year to 985 million yuan. Mr. Ye Guofu, the founder, chairman, and CEO of MNSO, stated: Despite the challenging consumer environment in the domestic market in the first half of 2026, we are pleased to see MNSO's impressive performance in mainland China, with revenue growth of 26.2% year-on-year driven by mid-single-digit same-store sales growth, marking our fastest first-half growth rate in three years. MNSOs overseas market also grew by 14.9%, while TOP TOY saw a growth of 32.7% year-on-year. In addition to our financial performance, we would also like to share our progress in our proprietary IP and membership operations. The recently launched YOYO achieved monthly sales of over 100 million yuan each in June and July 2026, and completed our first cross-border cooperation with a world-class IP, gradually evolving into an IP asset capable of interacting on equal terms and co-creating with international IPs. The number of MNSO members in mainland China grew by 31.0% year-on-year to approximately 130 million, with members contributing 77.4% of local sales; in the United States, our membership increased by 107.1% year-on-year to about 5.8 million, with members contributing 60.1% of local sales. Our membership program demonstrates strong user retention capabilities, laying a solid foundation for sustainable commercialization and long-term brand equity. In terms of global expansion, we successfully entered the Swiss market in the second quarter of 2026, expanding our global footprint to 113 countries and regions; at the same time, TOP TOY officially entered the US and Taiwan markets, further enhancing its global influence. Looking ahead, MNSO will continue to focus on the dual-drive strategy of IP and large stores. We aim to unlock deep brand equity through our IP ecosystem and reshape the retail experience through a large store model. Guided by long-termism, we will continue to advance global expansion while deepening high-quality localization. With strong operational resilience, MNSO will create lasting and cyclical value for global stakeholders, Mr. Ye added. Mr. Zhang Jingjing, CFO of MNSO, stated: In the first half of 2026, group-level revenue grew by 22.4%. Excluding foreign exchange gains and losses, adjusted operating profit increased by 5.0% year-on-year to 1.6286 billion yuan. During the same period, net cash generated from operating activities reached 1.4754 billion yuan, while adjusted net profit, excluding foreign exchange gains and losses, was 1.2216 billion yuan, fully demonstrating our business resilience and healthy cash flow generation capacity. Our capital allocation highlights include: In the first half of 2026, the company repurchased 517.6 million yuan worth of shares, accounting for over 90% of the total repurchase amount for the entire year of 2025. Additionally, in June 2026, the Board approved a share repurchase plan of up to 2 billion Hong Kong dollars for 2026 and simultaneously launched an automatic share repurchase plan to ensure that the pace of repurchases can continue even during restricted periods in the Hong Kong and US markets, highlighting our rigorous capital deployment and reflecting our strong confidence in MNSO's intrinsic value. We have returned a total of 1.31 billion yuan to shareholders through cash dividends and share buybacks, representing 121% of adjusted net profit for the first half of 2026, far exceeding our current dividend policys payout ratio of 50%. Looking ahead, our capital allocation strategy will continue to balance the high growth trajectory with a commitment to providing stable and predictable returns to shareholders, Mr. Zhang concluded.