Gross margin rose to 11.5%, Mingming is very busy as scale dividends extend to the efficiency side.

``` Mingming Busy’s scale dividend and capital efficiency are improving simultaneously. On August 24, Mingming Busy released its unaudited 2026 interim results. In the first half of the year, the company achieved revenue of 44.997 billion yuan, a year-on-year increase of 60%; profit during the period was 2.24 billion yuan, a year-on-year increase of 155.4%; adjusted net profit was 2.448 billion yuan, a year-on-year increase of 136.6%. The company attributed the improvement in profitability to economies of scale brought about by business expansion and enhanced cost control. In the first half of the year, Mingming Busy’s gross profit margin rose from 9.3% to 11.5%, and the adjusted net profit margin increased from 3.6% to 5.4%; the inventory turnover period shortened by 0.5 days year-on-year to 11.2 days. Compared to mere revenue and profit growth, changes in inventory and supplier settlement methods show that Mingming Busy is transforming store scale into greater operational capital efficiency. Currently, Mingming Busy owns 66 warehouses with a total area of approximately 1.569 million square meters, with most stores less than 300 kilometers from the nearest warehouse. In its financial report, Mingming Busy stated that some suppliers have shifted from prepayment settlement to settlement on account. This means that as purchasing scale and channel coverage expand, the company is beginning to use order size and sales certainty to replace part of the credit originally provided by prepayments. As of the end of June, the company’s prepayments, deposits, and other receivables dropped from 1.936 billion yuan at the end of last year to 1.72 billion yuan, mainly due to a decrease in purchasing prepayments; trade and bill payables increased from 1.177 billion yuan to 1.376 billion yuan. While operational efficiency improves, Mingming Busy’s store expansion speed has also exceeded market expectations at the beginning of the year. In the first half of the year, Mingming Busy opened 4,590 new franchise stores and closed 121 stores, speeding up store opening while fewer stores were closed than the 128 in the same period last year. As of the end of June, the total number of stores reached 26,405. Management previously stated that the company does not set a rigid KPI for store openings, but opening 5,000 new stores in 2026 “shouldn’t be a problem.” Using this as the previous market reference, about 92% has already been achieved in the first half of the year. On July 20, the number of signed stores with Mingming Busy further exceeded 30,000. Macquarie has previously raised its forecast for Mingming Busy’s new store openings in 2026 to 6,500–7,000, believing that the actual pace will exceed the market’s earlier expectation of 5,000 stores. The company has not yet officially provided a new full-year store opening guidance in the interim report. Scale dividends at the headquarters level have already begun to emerge. The next step is to verify whether such a gross profit margin can be sustained, and whether headquarters efficiency can further translate into same-store growth and franchisee returns. Risk Warning and Disclaimer The market has risks, invest cautiously. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. Investing based on this is at one’s own risk. ```