Miniso (MNSO) Booming Membership Growth Collides With A Struggling Global Expansion

On August 28, Miniso Group Holding Limited (NYSE: MNSO ) held its interim earnings call, and the numbers told two very different stories under one roof. In China, the company posted its fastest first-half growth in three years, built on a membership base that just crossed 130 million people. Overseas, the picture looked rougher, with profit contribution shrinking to a fraction of what it was three years earlier. Investors now have to weigh a booming home market against a global expansion still finding its footing.

Miniso's China business grew revenue 26.2% in the first half of 2026, a pace management called its fastest in three years and one that dwarfed the 1.3% growth in the country's broader retail sales over the same stretch. That gap matters because it points to market share gains rather than a rising tide lifting all boats. Behind the growth sits a membership program that reached 130 million people in China as of June 30, up 31% year over year and an all-time high. Members are no longer a side benefit either. Their spending accounted for 77% of total China sales in the first half, up sharply from 60% a year earlier, giving the company a more predictable base of demand to build on.

The company's push into proprietary intellectual property adds another layer to that story. Its YOYO brand, launched just over a year ago, has expanded into 53 countries and generated close to RMB 500 million in revenue during the first half, including a collaboration tied to Disney's Toy Story 5. MINISO said it hit its company-wide target of RMB 1 billion in proprietary IP sales by the end of July, weeks ahead of the original year-end schedule. The payoff shows up in loyalty too. Members acquired in 2025 through IP products were retained at a rate 80% higher than non-IP members in the first half of 2026, and they purchased twice as often. TOP TOY, the company's separate collectibles brand, grew revenue 32.7% over the same period, adding another growth lever beyond the core Miniso banner.

The costs of that expansion are showing up on the bottom line. Adjusted operating profit fell 6% year over year to RMB 1.49 billion in the first half, a decline management tied to a structural shift toward directly operated stores and away from higher-margin distributor revenue. Selling expenses climbed to 25.8% of revenue from 23.1% a year earlier, driven largely by higher rent and depreciation tied to those company-run locations. Adjusted net profit, excluding foreign exchange effects, slipped 1.7% to RMB 1.22 billion even as the top line grew by double digits.