The first quarter net profit of mingchuang premium products was US $24 million, reversing losses year-on-year

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Tencent technology news on November 18, mingchuangyou products (NYSE securities code: MnSO) released its unaudited financial report for the first quarter of fiscal year 2022 as of September 30, 2021 before Thursday. According to the financial report, the total net revenue of famous creative products in the first fiscal quarter was 2.654.1 billion yuan (about US $411.9 million), a year-on-year increase of 28.1%; The net profit was 154.5 million yuan (about 24 million U.S. dollars), up from the net loss of 1676.3 million yuan in the same period last year.
Summary of first quarter results:
–The total net revenue of mingchuang premium products in the first quarter reached RMB 2.654.1 billion (about US $411.9 million), exceeding the company’s previous expectation of RMB 2.450 billion to RMB 2.650 billion, a year-on-year increase of 28.1% and a month on month increase of 7.4%.
–The first quarter gross profit of famous creative products was 728.4 million yuan (about 131.1 million US dollars), a year-on-year increase of 39.4% and a month-on-month increase of 14.0%; The gross profit margin was 27.4%, compared with 25.2% in the same period last year and 25.8% in the previous quarter.
–The first quarter operating profit of mingchuang premium products was 213.5 million yuan (about US $33.1 million), compared with an operating loss of 2.1 million yuan in the same period last year and 187.8 million yuan in the previous quarter.
–The first quarter net profit of mingchuang premium products was 154.5 million yuan (about 24 million US dollars), compared with a net loss of 1676.3 million yuan in the same period last year and 111.2 million yuan in the previous quarter.
–Not in accordance with U.S. GAAP, the adjusted net profit of mingchuang premium products in the first quarter was 184.2 million yuan (about US $28.6 million), a year-on-year increase of 80.3% and a month on month increase of 27.0%. Not in accordance with U.S. GAAP, the adjusted net interest rate of mingchuang premium products in the first quarter was 6.9%, compared with 4.9% in the same period last year and 5.9% in the previous quarter.
–As of September 30, 2021, the total number of famous and innovative premium stores was 4871, with a net increase of 122 stores in a single quarter, compared with a net increase of 108 stores in the same period last year and 162 stores in the previous quarter.
–As of September 30, 2021, the total number of stores of famous creative products in China was 3035, with a net increase of 96 stores in a single quarter, compared with a net increase of 100 stores in the same period last year and 127 stores in the previous quarter.
–As of September 30, 2021, the total number of overseas stores of famous creative products was 1836, with a net increase of 26 stores in a single quarter, compared with a net increase of 8 stores in the same period last year and 35 stores in the previous quarter.
Executive comments
Ye Guofu, founder, chairman and CEO of mingchuangyou products, said: “We started fiscal year 2022 with a sound fiscal quarter. Despite the adverse effects of epidemic recovery, rainstorm disaster and weak consumption data in the domestic market this quarter, we have well implemented our strategy, our domestic business has achieved encouraging results, and our overseas business is further on the road of recovery.”
“In the fiscal quarter, our global store network increased by 161 stores, including 122 miniso stores and 39 top toy stores. The revenue of mingchuang superior products group reached RMB 2.654.1 billion, which exceeded our high-end expectations and demonstrated the resilience and core competitive advantages of our business model,” Ye Guofu said.
Zhang Saiyin, executive vice president and chief financial officer of mingchuang premium products, said: “The adjusted net profit of mingchuangyou products group in this quarter reached RMB 184.2 million, with a year-on-year increase of 80.3% and an adjusted net profit margin of 6.9%, the highest in nearly six quarters since the outbreak of the epidemic. Looking ahead, our financial strategy will be to maintain discipline in our budget, cost control and capital distribution, because we focus on continuously providing stable financial performance.”
financial analysis
The total net revenue of mingchuang premium products in the first quarter reached RMB 2.654.1 billion (about US $411.9 million), exceeding the company’s previous expectation of RMB 2.450 billion to RMB 2.650 billion, a year-on-year increase of 28.1% and a month on month increase of 7.4%.
The domestic operating revenue of mingchuang premium products in the first fiscal quarter was RMB 2.030.8 billion (about US $315.2 million), a year-on-year increase of 17.9%. Among them, the revenue from miniso brand was RMB 1.873.5 billion (about US $290.8 million), a year-on-year increase of 12.8%; the revenue from top toy brand was RMB 109.2 million (about US $16.9 million).
In the first fiscal quarter, the international operating revenue of mingchuang premium products was 623.3 million yuan (about 96.7 million US dollars), a year-on-year increase of 78.0%.
The sales cost of famous creative products in the first quarter was RMB 1925.7 million (about US $298.9 million), a year-on-year increase of 24.3%.
The first quarter gross profit of famous creative products was 728.4 million yuan (about 113.3 million US dollars), an increase of 39.4% year-on-year. The first quarter gross profit margin of famous creative products was 27.4%, compared with 25.2% in the same period last year.
Other revenue of mingchuang premium products in the first fiscal quarter was 16.1 million yuan (about 2.5 million US dollars), compared with 36 million yuan in the same period last year.
In the first fiscal quarter, the sales and channel expenditure of famous creative products was 340.8 million yuan (about 52.9 million US dollars), a year-on-year increase of 18.9%; in the first fiscal quarter, the sales and channel expenditure of famous creative products was 322.5 million yuan (about 50.1 million US dollars), a year-on-year increase of 40.0%.
In the first fiscal quarter, the general and administrative expenditure of famous creative products was 211.3 million yuan (about 32.8 million US dollars), a year-on-year decrease of 16.2%; in the first fiscal quarter, the general and administrative expenditure of famous creative products was 199.9 million yuan (about 31 million US dollars), a year-on-year increase of 28.7%.

The first quarter operating profit of mingchuang premium products was 213.5 million yuan (about US $33.1 million), compared with an operating loss of 2.1 million yuan in the same period last year and 187.8 million yuan in the previous quarter.
The first quarter net profit of mingchuang premium products was 154.5 million yuan (about 24 million US dollars), compared with a net loss of 1676.3 million yuan in the same period last year and 111.2 million yuan in the previous quarter. Mingchuang premium products had a diluted earnings per American depositary receipt of 0.50 yuan (about US $0.08) in the first fiscal quarter, compared with a diluted loss per American depositary receipt of 7.08 yuan in the same period last year.
Not in accordance with U.S. GAAP, the adjusted net profit of mingchuang premium products in the first quarter was 184.2 million yuan (about US $28.6 million), a year-on-year increase of 80.3% and a month on month increase of 27.0%. Not in accordance with U.S. GAAP, the diluted earnings per American depositary receipt of mingchuang premium products in the first fiscal quarter was 0.60 yuan (about US $0.09), compared with 0.40 yuan per American depositary receipt in the same period last year. Not in accordance with U.S. GAAP, the adjusted net interest rate of mingchuang premium products in the first quarter was 6.9%, compared with 4.9% in the same period last year and 5.9% in the previous quarter.
Balance sheet
As of September 30, 2021, the cash, cash equivalents, restricted cash and other investments held by mingchuang premium products totaled RMB 6138.5 million (about US $952.7 million).
Performance outlook
Mingchuang premium products expects that the company’s total net revenue in the second quarter of 2022 will be between RMB 2.5 billion and RMB 2.7 billion, equivalent to a year-on-year increase of 8.8% to 17.5%. This outlook reflects the current preliminary view of famous creative products, which may be adjusted in the future. (compiled by Tencent technology / Wuji)