MINISO Group Holding Limited's stock soared 5.46% during intraday trading on Wednesday, following the company's release of a positive profit alert for the quarter.
The company announced it expects first-quarter revenue to increase 28-29% year-on-year, operating profit to rise 113-116%, and net profit to jump approximately 195-200% compared to the same period last year. This substantial growth is primarily attributed to an unrealized mark-to-market gain of RMB 870-880 million from a pre-IPO strategic investment in an artificial intelligence-focused limited partnership.
While the profit increase was partially offset by higher share-based payment expenses and foreign exchange losses, the strong performance indicators, including adjusted operating profit growth of 13-16% and adjusted net profit growth of 7-10%, have generated positive investor sentiment toward the company's financial outlook.
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