Where is the next growth driver for MINISO, which has been nurtured by overseas markets and TOP TOY?

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At a time when the global consumer market still faces many uncertainties, MINISO released its annual results announcement for the fiscal year ended December 31, 2025, on March 31.

During the reporting period, the company achieved total revenue of 21.444 billion yuan, an increase of 26.2% year-on-year compared to 2024. Among this, revenue from its main brand MINISO reached 19.525 billion yuan, growing by 22%, while its sub-brand TOP TOY achieved revenue of 1.916 billion yuan, up by 94.8%.

Judging from the financial data, this is a report card with double growth in scale and speed.

However, behind the rapid rise in revenue, the profit side revealed a contradiction of "increased revenue without increased profit."

The financial report shows that during the period, net profit attributable to the parent company was only 1.205 billion yuan, a sharp decrease of 53.96% year-on-year. The main reason for this “halved” profit was due to heavy investment losses related to Yonghui Superstores (holding 29.4%).

However, if such non-recurring items are excluded, its adjusted net profit was 2.898 billion yuan, up 6.53% year-on-year, proving that the core profitability of its main business remains intact.

Butif we look past the surface-level high growth rate and examine the evolution of the revenue structure, it's clear to see the real business context MINISO currently faces: the domestic base has entered a stock competition phase, the overseas market is taking on the role of a “pioneer,” and new business lines are searching for a balance between scale expansion and profit models.

Within the main brand’s 19.525 billion yuan revenue, a signal that can’t be ignored is that the growth momentum isshifting outward.

The financial report specifically points out that this growth is mainly driven by both Mainland China and overseas markets, with overseas revenue growing a substantial 29.3% year-on-year, significantly outpacing the main brand’s overall growth rate of 22%.

Objectively, the overseas market is indeed becoming MINISO's primary source of incremental growth at this stage.

Given the intense competition in domestic retail channels and the peak of lower-tier market dividends, seeking growth from North America, Europe, and Southeast Asia is MINISO’s inevitable choice. Leveraging its domestic supply chain’s cost advantage to achieve success abroad is the underlying logic behind maintaining almost 30% overseas revenue growth.

However,on the flip side, cross-border operations bring marginal costs and potential risks.

High growth in overseas markets typically comes with heavy asset investments in directly operated stores, more complex local compliance costs, and persistently high logistics and warehousing expenses.

In 2025, with intensifying global trade frictions and more complex geopolitical situations, a model relying solely on the Chinese supply chain to fuel global expansion is facing dual pressure from tariff barriers and exchange rate fluctuations.

For MINISO to move from “channel expansion” to “brand deepening” overseas, its refined operations and cross-cultural management capabilities are being tested more rigorously than ever before.

The most eye-catching indicator in the report is TOP TOY’s extraordinary 94.8% revenue growth. Its annual revenue of 1.916 billion yuan signals that the sub-brand has fully passed the early concept incubation stage and is now capable of making a substantial impact on the group’s total revenue.

The capital market has also highly valued its stage achievements. Reportedly, TOP TOY has already secured strategic investment from Temasek, with a valuation of about 10 billion HKD. On the channel side, its global store count has expanded to 334, with 30 overseas locations, marking the initial shape of its overseas presence.

But in the trendy toy industry, doubling revenue doesn’t equate to having established a moat. TOP TOY’s rapid growth still largely depends on quick store network expansion, i.e. channel-driven growth, and a wide-ranging, all-category approach (blind boxes, building blocks, figurines, etc.).

Unlike major competitors who rely on strong proprietary IP, TOP TOY currently retains a significant “trend toy collection” attribute and still relies heavily on external well-known IPs.

Although its own IP has started to gain traction and has made some waves in niche markets recently, looking at the broader product portfolio, authorized IPs still dominate, and an absolute original IP barrier is yet to form.

This raises a core financial and strategic concern: the procurement cost of externally licensed IP will continue to suppress its gross margin. As revenue nears the 2 billion threshold, the marginal benefits brought simply by expanding stores will gradually decrease.

If TOP TOY cannot prove to the market within the next year or two that it can continuously incubate headline-grabbing “proprietary IP,” both the quality of its high growth and its long-term profitability will be questioned.

MINISOis indeedtrying to tell a new story to the capital market: it's no longer just a “ten-yuan store” based on extreme value-for-money sales, but a global “IP design and consumer operation company.”

Revenue of 21.444 billion yuan proves the initial success of its strategic transformation. But in the coming cycle, the indicators by which the market judges it will become more stringent:

First, is the high growth in overseas markets coming at the cost of cash flow or overly high marketing expenses? Are single store performances healthy?

Second, after building scale, can TOP TOY successfully run a profitable model and transform from a “channel provider” to a true source of IP?

For the 2025 fiscal year,MINISO faces a breakthrough as consumption cycles shift. It has won by decisively entering blank overseas markets and preemptively targeting the value of emotional consumption.

But after crossing the 20 billion yuan threshold, the real test has just begun. How to stabilize its base amid a volatile global environment will determine the future course of this retail giant.

Risk warning and disclaimerThe market comes with risks; investments need to be cautious. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial situation, or needs. Users should consider whether any views, opinions, or conclusions in this article apply to their specific situation. Any investment accordingly is your own responsibility. ```