Hong Kong and US-listed budget retailer Miniso reports 155 per cent profit rise as Chinese consumers turn to affordable goods amid slowing economy

Guangzhou-headquartered company’s net profit rises to 1.84 billion yuan (US$252.8 million) from 722.6 million yuan in the same period last year

Firm to also repurchase up to US$200 million worth of its outstanding ordinary shares over the next 12 months

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A Miniso store in Shanghai. More than 60 per cent of the budget retailer’s stores are located in China. Photo: Getty Images

Published: 9:05pm, 15 Sep 2023

Miniso Group Holdings, the Hong Kong and US dual-listed Chinese budget retailer, has seen its net profit grow by 155 per cent year on year, as consumers increasingly turn to affordable items amid China’s slowing economy.

The Guangzhou-headquartered company announced its annual results for the financial year that ended on June 30 on the Hong Kong stock exchange’s website on Friday. Its adjusted net profit rose to 1.84 billion yuan (US$252.8 million) from the 722.6 million yuan it recorded in the same period last year.

Its total annual revenue increased by 13.8 per cent from 10.1 billion yuan in 2022 to 11.5 billion yuan this year, and was mainly attributable to an increase of nearly 50 per cent in revenue from overseas markets, according to the company’s filing. Its revenue from China grew by 2.8 per cent.

“In spite of the uncertainties brought by the macro environment, looking forward to the financial year 2024, we will remain focused on our long-term strategic goals: delivering on our globalisation strategy, bolstering the strength of our product offerings and optimising our store network,” the company said in its annual results announcement.

In a separate statement, Miniso said it would repurchase up to US$200 million worth of its outstanding ordinary shares over the next 12 months, saying that the share buy-back would “demonstrate the company’s confidence in its business outlook and prospects and would benefit the company”.

Driven by a gloomy economic outlook and record-high unemployment, Chinese consumers are increasingly cautious about loosening their purse strings and are more inclined to hunt for bargains, according to a study. by global consultancy Bain & Co and market research firm Kantar Worldpanel in June.