MINISO's IP-Driven Evolution: From Variety Store to Experience Destination
Record revenue, proprietary IP breakout, and a strategic bet on AI redefine the growth playbook.
MNSO · Earnings Call · 2026-03-31
The numbers: acceleration beyond guidance
MINISO Group delivered a December quarter that blew past its own targets, with revenue growing 32.7% year-over-year to a record RMB 6.25 billion—the first time it crossed the RMB 6 billion mark. CFO Eason Zhang noted, “In Q4, revenue grew by 32.7%, surpassing the upper end of our prior guidance of 20% to 30%.” — Eason Zhang, Management, likely CFO or Financial Officer · 2026-03-31 Full-year revenue crossed RMB 20 billion, and the company added 465 net new overseas stores, while same-store sales in China reached mid-teens growth in the fourth quarter, a record high for the year. But the more interesting story is how MINISO is expanding: not by simply opening more small stores, but by transforming its footprint into large-format, experience-driven destinations. The Land format stores—flagship locations of over 1,000 square meters—now account for only 10% of domestic store count yet contribute nearly 20% of domestic GMV. Founder Guofu Ye explained the logic bluntly:This is the crux of the company's moat-building strategy—and it's already paying off in the numbers. The evolution from a value-priced variety retailer to an IP-driven experience company is what makes this quarter distinct. The Proprietary IP Youyou has exploded: “Youyou is actually a Chinese proprietary IP. If you take a look at our IP portfolio, Youyou is the first one to have revenue exceeding RMB 100,000,000; it took less than six months.” — Guofu Ye, Management, likely CEO or Chairman · 2026-03-31 In 2026, the company expects Youyou to generate RMB 600 million to 1 billion in sales, including international markets. This is a company that a year ago was mostly licensing third-party IP; now it's incubating its own. The store renovation program is another engine. 290 stores were renovated in 2025, and management reported that renovated stores see 40-50% sales uplift. Guofu Ye described the results: “Renovated stores’ average sales uplifted by 40% to 50%.” — Guofu Ye, Management, likely CEO or Chairman · 2026-03-31 This ties into the broader strategy of migrating the network toward larger, more immersive locations.MINISO is not the first brand to pursue a large-format store trajectory. But why can others not follow? The answer comes down to just one thing: a successful large-format store must be built on the conditions of owning proprietary product development capacity.
AI windfall, YH drag, and the path to 2026
MINISO also surprised the market with an investment gain: the company had earlier invested in AI startup MiniMax, which has now IPO'd, generating a fair value gain of RMB 850-900 million in Q1 2026. “We were quite lucky to invest in a company named MiniMax.” — Guofu Ye, Management, likely CEO or Chairman · 2026-03-31 While this is a one-off, it provides a nice cushion for the year, though management plans to exclude it from adjusted earnings. The drag on the P&L remains the Yonghui (YH) acquisition, with YH posting a net loss of RMB 1.84 billion in Q4. Guofu Ye sought to reassure investors: “My primary focus has always been and will always be MINISO. It is our foundation and the core driver of our future growth going forward.” — Guofu Ye, Management, likely CEO or Chairman · 2026-03-31 But the market will watch how quickly YH can be turned around without distracting from the core retail business. Looking ahead, management guided to high-teens revenue growth in 2026 and an acceleration in profit growth, with same-store sales expected to remain positive across key markets. The AI company investment is a nice-to-have, but the real engine is the IP-driven store transformation. The company's prior calls showed a gradual shift. In March 2025, Guofu Ye admitted the need to convert small stores to larger formats: “In the near future, we may consider of rectify those small stores into larger stores.” — Guofu Ye, CEO · 2025-03-21 By August 2025, the U.S. strategy had crystallized around large stores and localized teams: “So large store, concentrated new store opening and product power improvement and localized team would be the 4 key pillar to help us to improve our U.S. operations.” — Guofu Ye, CEO · 2025-08-21 These themes have now coalesced into the MINISO Land and proprietary IP blueprint. In November 2025, Guofu Ye further outlined the next step:One market to watch is Mexico, which management has designated a "benchmark" for Latin America. The Mexico market is expected to see a re-formatting of top-tier locations into flagship stores, following the same playbook. And the store renovation program, which will accelerate in 2026, is a key driver of same-store sales growth. In summary, MINISO is making a decisive pivot from being a "value-priced" retailer to an immersive, IP-driven experience platform. The numbers are strong, the strategic direction is clear, and the proprietary IP engine, if it continues, could redefine the company's economics. The risk remains execution—especially with YH and the broader macro environment—but the evidence from this quarter suggests MINISO is ahead of its own trajectory.In the near future, we're going to have 2 kinds of the store models... We're going to leverage 8,000 stores to have a good and high-frequency consumer feedback to provide us the market data and continue to empower our channel upgrading.