MINISO had Passed the HKEX’s Listing Hearing
- Chaileedo Press
- Jun 30, 2022
- 3 min read
Recently, MINISO had passed the HKEX’s listing hearing.According to the post-hearing data, the revenue of MINISO in fiscal 2021 was $ 1.353 billion, with a gross margin of 26.8%; MINISO had opened over 5000 stores, with a coverage of about 100 countries and regions.
Recently, CHAILEEDO learned from the website of HKEX that MINISO Group Holdings Limited (hereinafter referred to as "MINISO ") has passed the HKEX listing hearing on June 27, Beijing time, with Bank of America Securities, Haitong International and UBS as co-sponsors.
If MINISO gets listed in Hong Kong, it will become a dual-listed company, meaning that it is listed on two stock exchanges and enjoys equal listing status, if it gets delisted in one, the listing status of the other will not be affected. However, a dual listing company is also required to comply with the different regulatory rules within the respective stock exchange, the shares issued in two exchanges are not allowed for cross-market circulation.
According to information, MINISO went public on the New York Stock Exchange(NYSE) for an offering price of $ 20 per share in October 2020. As of June 28th at 16:00 (EST), MINISO's stock price stands at USD 8.72, down by 0.34%, with its total market value of USD 2.672 billion.
MINISO, a global retailer founded in 2013, owns two brands, MINISO and TOP TOY, according to the dataset post-hearing. According to Frost & Sullivan, GMV sold via MINISO store network totaled about $ 2.8 billion in 2021, making MINISO the world's largest lifestyle product retailer under its own label.
Among them, products of its flagship brand "MINISO" cover 11 main categories, including beauty tools, makeup, personal care, etc., with a total of 8800 core SKUs.According to Frost & Sullivan, as of 2021, MINISO had opened more than 5,000 stores worldwide, entering about 100 countries and regions.
According to the post-hearing dataset, MINISO's revenue for the fiscal years2019, 2020 and 2021 ending by June 30 was respectively USD 1.401 billion, 1.339 billion and 1.353 billion, while net profits for the same period registered 44 million, 39 million and 213 million respectively, with accumulated losses of nearly USD 300 million.
Amid the COVID-19 pandemic, MINISO is also undermined by shutdowns of outlets.MINISO revealed that as of March, it had closed more than 300 stores in China and 11 of TOP TOY, its independent designer toy brand.
On top of that, its single-store revenue is undergoing a continuous drop. MINISO's single-store revenue fell by 19.8 percent from $ 402.6 thousand to $ 328 thousand in fiscal 2019 through fiscal 2020. From fiscal 2020 to fiscal 2021, the revenue dropped again by 11.3% to USD 283.3 thousand, a reflection of flagging consumer enthusiasm for MINISO products.
And not long ago, MINISO was pummelled by some unwished lawsuits. A few days ago, the two disputes between MINISO and Intercos Technology (Suzhou SIP) Co., Ltd (hereinafter referred to as "Intercos ") were made public with MINISO losing both. According to the adjudication documents, Intercos prepare and produce the goods in line with MINISO's instructions while the latter took no delivery of the goods all the time or finish the corresponding payment.
The court held that MINISO had constituted a breach of contract after repeated reminders of failing payment and taking delivery of the goods by Intercos. The court decided to rescission the contract of ordered manufacturing by both parties, and MINISO shall pay to Intercos the money for ordered products and resulting losses over USD 257.9 thousand and the interest on overdue payment.
MINISO also noted the risk factors in the post-hearing dataset that "any adverse development of the relationship with the supplier may have a negative impact on the business and the growth prospect".
In addition, a source familiar with the matter revealed that "MINISO has always been seeking solutions to the potential delisting risk in the US due to the Foreign Corporate Accountability Act, and this round of listing in Hong Kong can be seen as MINISO's initiative in response to this risk."
MINISO's performance has been on the decline, mainly because of the staggering brand influence and unappealing price tag. Listing in Hong Kong will enable more financing for MINISO, promote the expansion and upgrading of the MINISO store network and enhance the brand's global reach. By improvement of its supply chain and product development, MINISO will produce more products that offer good value for money.
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