, which started its IPO program in 2018, finally officially submitted an IPO prospectus to the U.S. Securities and Exchange Commission (SEC) on September 24, and plans to be listed on the New York Stock Exchange with the code MNSO. The underwriters of this IPO are Goldman Sachs and Bank of America Securities.
As a retail brand that grew up from Guangzhou, Miniso has always fully utilized its scale effect with its rapid store opening and expansion pace. The disclosure of this prospectus finally allowed the outside world to glimpse the development of this "Internet celebrity" company in the retail industry.
GMV reached 19 billion yuan, and more than 90% of the products were less than 50 yuan
prospectus shows that as of June 30, 2020, Miniso's revenue in the 2020 fiscal year reached about 8.98 billion yuan, a decrease of 4.4% compared with 9.39 billion yuan in the same period in 2019, which is related to the impact of the global COVID-19 epidemic.
prospectus shows that although as of June 30 this year, more than 95% of China's stores have resumed normal business, due to the impact of the epidemic, the revenue of the Chinese market has decreased by 5% compared with the same period last year. As of June 30 this year, more than 20% of stores were closed in overseas markets, and revenue from overseas markets decreased by 3.2% compared with the same period.
In addition, the gross profit in fiscal year 2020 was 2.732 billion yuan, an increase of 8.8% compared with fiscal year 2019 of 2.511 billion yuan, and the gross profit margin in fiscal year 2019 was 26.7%, and increased to 30.4% in fiscal year 2020. It is worth noting that the overseas market's contribution to Miniso accounts for nearly one-third of its total revenue. The prospectus shows that in fiscal 2019 and fiscal 2020, Miniso's overseas market revenue accounted for 32.3% and 32.7% of its annual revenue respectively.
From the perspective of income structure, Miniso's main source of income is the sales of daily necessities, accounting for 89.7% of its revenue in fiscal year 2020, followed by "licensing fees, royalties and management and consulting service fees", accounting for 6.6% of its revenue, and the remaining "others" accounted for 3.7%.
prospectus shows that the global comprehensive retail GMV of private brands reached US$52 billion in 2019, and Miniso accounted for 5.2% of the total retail GMV of private brands (about RMB 19 billion). However, Miniso said in its prospectus that more than 95% of its products are retailing at less than 50 yuan in China.
Currently, Miniso has 22.3 million members, which can provide consumers with about 8,000 core SKU, and launches more than 600 SKUs per month on average, most of which are their own brands.
Tencent and Hillhouse Chengwei two external shareholders
As of June 30, 2020, the total number of Miniso stores reached 4,222, of which 129 direct stores were directly operated, 7 were in China, and 122 were located in overseas markets; there were 2,526 third-party stores in China, and 1,567 third-party stores in more than 80 countries and regions overseas.
It is worth mentioning that since the end of 2019, the total number of stores in both domestic and overseas markets has almost not changed much. The prospectus mentioned that in the first half of 2020, due to the impact of the new crown epidemic, the company's store network expansion in the international market slowed down, while the number of domestic stores decreased during the same period. However, in March this year, when a reporter from Nandu conducted an exclusive interview with the global co-founder and CEO of Miniso, Ye Guofu , he said that the store cost is lower during the epidemic period, so he will continue to promote the store opening plan. At that time, he said that the global store opening target was 600 in 2020 before the epidemic, but the target number had been adjusted to 1,200 because "think this time is the best opportunity to find a store."
Under the influence of the epidemic, the revenue of Miniso per store decreased by 19.8% from RMB 2.7 million in fiscal year 2019 to RMB 2.2 million in fiscal year 2020. However, in addition to the reasons for the epidemic, to a certain extent, Miniso has expanded to low-tier cities and regions with low penetration in the past two years, as well as the market competition it faces, which has also led to a decline in store revenue.
It is worth mentioning that the prospectus clearly mentioned that Miniso has begun to focus more on e-commerce channels, while Ye Guofu has always been relatively resistant to e-commerce channels earlier. Miniso said that they will expand the online sales channels of online products by cooperating with e-commerce platforms, and will make full use of its huge offline store network to create an omni-channel shopping experience.In previous interviews in Nandu, Ye Guofu also said that he would focus on social marketing based on the store and create another Mini-Chuang.
is different from other companies choosing to accelerate financing before going public. Miniso has rarely accepted external investment since its establishment. The only external investment was a 1 billion yuan strategic investment jointly invested by Tencent and Hillhouse Capital in 2018. Judging from the equity structure disclosed in the prospectus, these two are also the only two external shareholders among Miniso’s shareholders. The prospectus shows that Tencent and Hillhouse Capital each hold 5.4% of the shares, and Ye Guofu's personal shareholding ratio reaches 80.8%.
It is understood that the funds raised by Miniso’s listing in the United States will be mainly used to expand global store and retail networks, upgrade warehousing and logistics networks, and further enhance digital operation systems.
edited and written by Nandu reporter Xu Bingqian
