freeplayslotsnodeposit| Mingchuang Premium Products accelerates expansion of 6630 stores around the world, with revenue of 3.724 billion yuan in the first quarter, an increase of 52.6% in overseas markets

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SourceFreeplayslotsnodepositChangjiang Commercial Daily

Pan Ruidong, reporter of Changjiang Business Daily

Focus on interest consumption and create quality products (MNSO)Freeplayslotsnodeposit.US, 09896FreeplayslotsnodepositHK) achieve performance growth.

On May 14, Mingchuang announced on the Hong Kong Stock Exchange that the company's Q3 (January-March 2024) revenue in fiscal 2024 was 3.724 billion yuan, an increase of 26% over the same period last year, while adjusted net profit was 617 million yuan, an increase of 27.7% over the same period last year. Flush data show that famous quality products have achieved a high profit growth for two consecutive years in the 2022-2023 fiscal year.

Changjiang Business Daily reporter noted that with the help of IP joint name, global store expansion, famous and high-quality products to achieve simultaneous growth of markets at home and abroad. By the end of March 2024, the number of famous premium products worldwide has reached 6630, including 4034 in China and 2596 overseas.

Both the number of stores and store sales rose. From January to March this year, revenue from mainland China rose 16.2 per cent to 2.502 billion yuan, while revenue from overseas markets increased significantly, up 52.6 per cent to 1.222 billion yuan.

In the secondary market, the share price of famous quality products has also increased significantly. At present, the total market capitalization of Mingchuang's premium US stocks is US $7.852 billion, while that of Hong Kong stocks is HK $61.141 billion.

Income both at home and abroad has increased

On May 14, Mingchuang released its unaudited financial performance from January to March 2024, with outstanding operating data.

According to the report, Mingchuang's operating income in the first quarter of this year was 3.724 billion yuan, an increase of 26 percent over the same period last year, while the adjusted net profit was 617 million yuan, an increase of 27.7 percent over the same period last year. The company said it was mainly due to a 19.3 per cent year-on-year increase in the average number of stores at the group level and an increase of about 9 per cent in same-store sales.

In terms of revenue structure, revenue from mainland China rose 16.2 per cent to 2.502 billion yuan, with revenue from offline stores in mainland China up 15.6 per cent.

It is worth mentioning that the sales revenue of the trendy brand TOP TOY, which was hatched by famous products in December 2020, has increased significantly. TOP TOY focuses on 10 Mel consumer groups of 40-year-old men and women, focusing on blind boxes, building blocks, handmade and other core categories, with commodity prices ranging from 39 yuan to tens of thousands of yuan.

From January to March 2024, the average number of TOP TOY stores increased by 32.2% year-on-year, and same-store sales increased by about 26%. Driven by an increase in the number of stores and per-store sales, the company's revenue from TOP TOY rose rapidly to 214 million yuan from a year earlier.

Compared with the mainland market, the overseas market of Mingchuang quality products has increased even more. According to the report, the company's revenue from overseas markets increased by 52.6% to 1.222 billion yuan in the first quarter compared with the same period last year, and the share of overseas market revenue also increased to 32.8% from 27.1% in the same period in 2023. The company explained that the growth in overseas markets was mainly due to a 19.7% year-on-year increase in the average number of stores and a strong growth of about 21% in same-store sales. Among them, direct revenue accounted for 58% of the total overseas market revenue, up from 46% in the same period in 2023.

There are 6630 stores worldwide.

Founded in 2013, after more than a decade of development, Mingchuang has become a collection of fashion and lifestyle goods based on a variety of IP designs, with two brands: "Mingchuangyubin" and "TOP TOY".

From 2019 to 2021, the performance of famous quality products was under pressure, with operating income of 9.395 billion yuan, 8.979 billion yuan and 9.072 billion yuan respectively, while net profit lost for three consecutive years, with losses of 291 million yuan, 262 million yuan and 1.415 billion yuan respectively. Among them, the large loss in 2021 is the loss caused by changes in the fair value of preferred shares.

Since 2022, there has been a turning point in the performance of famous quality products. In fiscal year 2022, the company achieved operating income of 10.09 billion yuan, breaking through the 10 billion mark for the first time, an increase of 11.2% over the same period last year. The adjusted net profit was 720 million yuan, an increase of 51.4% over the same period last year. In fiscal year 2023, the company achieved operating income of 11.473 billion yuan, an increase of 13.8% over the same period last year, and adjusted net profit of 1.845 billion yuan, an increase of 155.3% over the same period last year.

Profits have achieved rapid growth for more than two years in a row, and a reporter from the Yangtze River Business Daily noted that this has something to do with the growth in the number of stores that create high-quality products.

Data show that at the end of June 2021, the number of famous high-quality stores was 4749, including 2939 in China and 1810 overseas. By June 30, 2023, the total number of stores of Mingchuang quality products had reached 5791, an increase of 1042 in two years, including 665 in China and 377 in overseas.

At the end of September 2023, the number of famous high-quality stores exceeded 6000, reaching 6115. By the end of March 2024, that number continued to increase to 6630. In the first quarter of 2024 alone, the company added 217 stores, of which the number of stores in China increased by 108 to 4034, exceeding 4000 for the first time, and overseas stores increased by 109 to 2596.

It is understood that the substantial growth in overseas markets and the strong development momentum of TOP TOY have pushed the company's gross profit margin to rise significantly. In the fourth quarter of 2023, the gross profit margin of famous quality products was 39.8%. By the third quarter of fiscal year 2024 (January-March 2024), the company's gross profit margin had risen to 43.4%.

In the secondary market, the share price of famous quality products has also increased significantly. On the Hong Kong stock market, Mingchuang's shares rose 568.16% from HK $7.386 per share on September 29 to HK $49.35 on May 14 this year, while in the US stock market, Mingchuang's shares rose from US $4.473 to US $25.35 per share, an increase of 466.73%.