Gelonghui, May 14, 丨 Mingchuang Premium (09896.HK) announced that for the three months ending March 31, 2024, revenue for the first quarter of 2024 was RMB 37.23.5 billion, up 26.0% year on year; gross profit was RMB 1,616.5 billion, up 39.1% year on year; gross margin was 43.4%, or 39.3% for the same period in 2023; adjusted net profit was RMB 616.9 million, up 27.7% year on year; adjusted EBITDA was RMB 965.3 million, up 36.7% year on year.

In the first quarter of 2024, revenue from mainland China increased 16.2% year on year to RMB 2,501.7 billion; revenue from overseas markets increased 52.6% year over year to RMB 1,221.9 billion. The sharp increase was mainly due to the 19.7% increase in the average number of stores and a strong increase of about 21% in same-store sales. In the March quarter, revenue from overseas markets accounted for 32.8% of total revenue, a significant increase from 27.1% in the same period in 2023. It is also worth noting that revenue from overseas direct sales accounted for 58% of total overseas market revenue in the March quarter. Whether year-on-year or month-on-month, this ratio increased, highlighting the strategic importance and strong performance of such markets.

During the reporting period, the retail business of Mingchuang Premium brand reached an important milestone of 6,630 stores as of March 31, 2024. There was a significant net addition of 217 stores in the March quarter alone, a nearly threefold increase compared to the net number of new stores in the same period of the previous year. The number of Mingchuang Premium brand stores in mainland China surpassed 4,000 for the first time as of March 31, 2024, reaching 4,034. There was a net increase of 108 stores in the March quarter, nearly double the number of net new stores added in the same period of the previous year. The number of Mingchuang Premium stores in overseas markets was 2,596 as of March 31, 2024, with a net addition of 109 stores in the March quarter, a significant increase compared with the net addition of 16 stores in the same period last year. The number of TOP TOY stores as of March 31, 2024 was 160, an increase of 44 year-on-year and an increase of 12 month-on-month.

Mr. Ye Guofu, founder, chairman and CEO of Mingchuang Premium, said, “The past March quarter was the fastest first quarter in our history. This has laid a solid foundation for achieving our goal of a net increase of 900 to 1,100 stores in 2024. Compared to the high base for the same period in 2023, our performance was stronger this quarter, which also marks a steady progress towards our five-year strategic goals. We are pleased to see that our IP and globalization strategy is already paying off. As a result, our total revenue reached RMB 3.7 billion, an increase of 26% year over year, mainly due to a 19% increase in the average number of stores and a 9% increase in same-store sales.”

Mr Yip added, “Revenue from overseas markets increased 53% year over year, exceeding our most optimistic expectations and setting a new record for the first quarter. This is mainly due to a 92% year-on-year increase in revenue in our direct sales market, which is also the fourth consecutive quarter where the business grew by more than 80%. We have not only maintained the rapid development of the direct sales market, but also achieved steady results of an adjusted net profit increase of 28% and an adjusted net profit margin of 16.6%. Our strong financial and operational performance in all areas continues to reflect the relevance and resilience of our business model and the broad appeal of the products we offer. We have the necessary patience and perseverance, and are firmly committed to long-term principles, taking each step carefully and diligently to achieve our five-year development plan and maintain a compound annual revenue growth rate of no less than 20%.”