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spk00: Ladies and gentlemen, thank you for standing by and welcome to Minnesota group holding limited earnings conference call for the third quarter of fiscal year 2021 that ended March 31st, 2021. At this time, all participants are in a listen only mode. After the management's prepared remarks, we will conduct a question and answer session. Please note this event is being recorded. Now I'd like to hand the conference over to your host speaker today, Mr. Ethan Zhang, Director of Investor Relations. Please go ahead, Ethan.
spk05: Thank you, Jason. Hello, everyone, and thank you all for joining us on today's call. The company has announced its quarterly financial results earlier today. An earnings release is now available on our Investor Relations website at ir.minto.com. Then you will hear from our Chairman and CEO, Ms. Guo Huiye, who will start the call with an overview of our business. He will be followed by our CFO, Mr. Steven Zhang, who will draft our financial results in more detail before we take your questions. Before we continue, I would like to refer you to the State Harbor State Statement in our earnings press release, which also applies to this call as we will be making forward-looking statements. Please also know that we will discuss non-IFRS measures today, which we have explained and reconciled to the most comparable measures reported under the International Violent Reporting Standard in the Council's earliest release and violence recently SEC. During the Q&A session, please repeat your question in Chinese if it is asked in English. Management will answer in Chinese and I will translate it in English. With that, I will now turn the call over to Mr. Ye to give you a business update. Please go ahead, sir. 各位投资人大家好, 本季度MiniSoft实现合并收入22.3亿人民币, 同比增长37%, 符合公司收入预期, 其中国内各项业务总收入
spk01: Hello, everyone. For the March quarter of 2021, Minnesota recorded a revenue of RMB 2.23 billion,
spk05: up 37% year-over-year, and in line with the company's guidance. Automatic Business delivered a combined revenue of $1.79 billion, up 75% year-over-year, and 12% compared to the same period of 2019. In today's conference call, I share the major developments we have achieved for both MISO and TopToy this quarter.
spk01: First of all, the domestic business is recovering strongly in this quarter. Although the beginning of the year was affected by the epidemic in some areas, some stores could not operate normally. The company adopted a series of effective operating measures in February and March and released many new products. Miniso's brand this quarter achieved a domestic business income of 17.2 yuan, which is 71% of the total growth. In 2019 before the epidemic,
spk05: For Minso, our domestic operations continue to deliver an encouraging recovery this quarter. While occasional cases of COVID-19 in early January result in shutdowns for certain stores, we took a number of measures and launched a series of new products in the following months to achieve a healthy recovery. As a result, Domestic operations of Minsu Brand recorded revenue of RMB 1.72 billion, up 71% year-over-year, and 12% compared to the same period of 2019.
spk01: There are nearly 70% from three lines to one city. We noted that the turnover rate of the lower market stores, the price of goods, and the trade rate are basically the same as that of the first and second-tier city stores. And the rent level of these cities is lower, which provides more attractive investment returns for business owners. As of the end of March, the number of stores in three lines and one city accounts for nearly 40% of domestic stores. At present, China's three-line We added 44 new Minnesota stores in China during the quarter, with more than 90%
spk05: of new stores located in Tier 3 and below cities. During the past 12 months, we made significant progress in executing our strategy to patch treatment into lower tier cities, with 70% of new stores located in Tier 3 and below cities. We noted that nearly all key operating metrics for new stores, such as average ticket size, conversion rate, And cross-selling rates are similar in lower tier cities with tier 1 and tier 2 cities, where rental expenses are more attractive, providing a better ROI for our retail partners in the long term. As of March 31st, less than 40% of our stores were located in lower tier cities. At lower tier cities, account for more than 70% of China's consumer spending, nearly 60% of GDP, and contributed two-thirds of the country's economic growth. Going forward, we see a lot of opportunities in lower tier cities, and will continue to unlock new opportunities there.
spk01: In terms of overseas business income, 4.4 billion yuan, and a decline of 28%. Taiwan. China. China. China. China. China. As for overseas operations, revenue was RMB 441 million, down 28% in the year and 5% in the quarter.
spk05: During the same period of the previous year, COVID had not fully rounded. However, during this border, many countries have experienced major setbacks on the path to pandemic recovery, especially in Southeast Asia and Latin America, where many overseas stores are concentrated. In these areas, many countries have continuously reported new records in case of emergency and have adopted stricter control measures. By the end of March, 228 overseas stores were temporarily closed and many others were forced to reduce business hours due to the big impact of COVID-19, resulting in the year-over-year relative decline.
spk01: In spite of this, we have made considerable progress in the overseas market. This quarter, the number of overseas stores continues to increase by 29 stores, exceeding the 20-storey score of the 2020 quarter. This fully shows that overseas partners have a high level of recognition for the long-term prospects. Less than that, we have made encouraging progress in our overseas market expansion. The number of overseas stores increased by 29 in this quarter.
spk05: surpassing the daily increase of 20 in the same period in 2020, demonstrating our overseas partners' confidence in Minso's long-term competitiveness. The daily increase in new stores came mainly from countries in the Middle East and Europe, where the pandemic recovery went well. This includes Spain, where we opened six new stores during the quarter. In January, Minso opened its first store in Porto, The second largest city in Portugal, which was the 94th largest market we have entered.
spk01: In this video, I would like to talk about a few aspects that I would like to share with you.
spk05: The mission of Minso is to provide global consumers with high-quality and affordable livestock products. In this quarter, we'll continue to focus on product and innovation. So I'd like to share additional details on this front.
spk01: The first is product development. Continuous development of strategic new products, including strategic new products for toys and snacks, has led to a significant increase in domestic sales in this quarter. For example, First of all, in product development, we focus on strategic new categories. In this quarter in China,
spk05: Sales of strategic new categories such as toys and snacks increased significantly year-over-year. Specifically, sales of toys were up nearly two-fold year-over-year, in which building blocks were up more than three-fold. Sales of snacks were up 104% year-over-year, in which sugar candy sales increased by 168% year-over-year.
spk01: Second,
spk05: we kept innovating our business. Take our first damage store, Fashion Mask Store, as an example. It sold in a single day exceeded 10,000 RMB, which is a very encouraging number for a vertical retail store, and provided us with confidence and experience in expanding damage stores in other categories. And we'll translate this new successful business to other cities in the near future.
spk01: Let me give you another example.
spk05: During the pandemic, we proactively leveraged innovative ways such as live streaming to distribute merchandise to overseas partners. It has been proved to be quite effective in promoting the recovery of overseas business. The two live streaming events in this quarter generated revenue of RMB $116 million. The third is to strengthen the IP strategy.
spk01: We have recently released the QQDD Second,
spk05: We strengthened our IP advantage by successfully launching products with new IP partners such as Chip and Dell, ZoomZoom, Heaven Official's Blessing, and Bilibili during this quarter. So far, we have fully covered six major IP sectors such as global trendy IPs, ACG IPs, Chinese traditional IPs, creative art toys IPs, sports and gaming IPs, and have solidified Microsoft's position as a leading IT player in the industry.
spk01: In terms of the operating level outside of the product, by introducing information systems and combining more detailed electrical operation tests, we have always tried to improve the operating efficiency. For example, the average number of employees equipped with each Microsoft store has dropped from 10 a few years ago to 6 in the last quarter. In this quarter, the number has dropped further by 10%, and it does help to increase
spk05: On the operational side, we have been dedicated to improving the efficiency of municipal stores by introducing information systems and detailed tactics during the past several years. For example, average number of employees per store in China dropped from 10 a few years ago to 6 in the last quarter and dropped further by nearly 10% during this quarter. effectively reduce the cost burden of our retail partners.
spk01: We have continued to receive good support from all channels in this quarter. We have been trying to continue to reach and activate members through the use of free traffic, WeChat, small programs, and real-time vouchers. We have been trying to increase the flow rate and recovery rate of members. Since the end of March, in the past 12 months, the number of active members has been about 3,020 million yuan increased by more than 2 million yuan. In June 2020, Mock increased by nearly 8 million yuan. This is the effort of all aspects. The income from the online channel is more than 10% in this quarter. Among them, e-commerce business contribution 1.7 billion yuan income is 7.7%. Auto business contribution nearly 70 million yuan income is 3.1%.
spk05: Minnesota's omni-channel strategy continues to be well executed during this quarter. We continue to region and activate members through various ways, such as private traffic operations and giving incentives, such as coupons, in reach and mini-programs to improve retention and repurchase rate of day. As of March 31st, members who had made at least one purchase during the past 12 months were about $30.2 million, an increase of $2 million sequentially and nearly $8 million from the end of June 2020. As a result of above-mentioned measures, revenue contributions from online channels exceeded 10% for the first time in this quarter, with e-commerce contributors remaining $171 million, or 7.7% of net revenues. And O2O contributed about 17 million or 3.1 of net revenues. 下面我介绍一下TopToy在本季度的进展。 这里公司X战略孵化的第一项一群业务。 这是TopToy在经历的第一个完整年度季度。 完整季度,很高兴看到它继续表现出健康的发展态势。 具体表现在经济模型不断优化,产品频率不断拓展。 Now, I'd like to share more about TopToy. As the first new business incubated on the app strategy, this is TopToy's first full quarter. We continue to see healthy trends in each aspect of its operation, including optimization of its economic model, expansion of product categories, Improvement of Omni-Channel Strategy and Positive Initial Results of IP Strategy.
spk01: The first DreamWorks dual-top toy has been in operation for five months.
spk05: Our team has been refining its business model. So far, we have opened four DreamWorks stores, each of which has created a very good opening performance among peers, giving us great confidence in the success of DreamWorks stores. At the same time, we are also testing smaller stores, such as collection stores, as well as flash stores, and will continue to review Top Toys operations on a dynamic basis. And we'll provide more updates on last quarter's call.
spk01: TopToy still insists on multilevel development. This is in line with our position as a global Chinese-American integrated brand. It is also conducive to expanding the space in the Chinese market and reducing dependence on single products. In this quarter, we have added a sculpture as the eighth category, which makes TopToy's product line even richer. The first three categories, such as hand-made, machine-made, and high-end, are all in line with the consumer's expectations. Top Toys is committed to building the world's largest and most comprehensive collection shop of art toys.
spk05: To achieve this, it has been adopting a multiple category strategy to expand the addressable market of art toys while reducing reliance on any single category. In this quarter, we added sculptures as the eighth category of TopToy to enrich its product line. Garage keys, building bulbs, and assembly gundams were three rising categories figured by consumers during the quarter, and their revenue contributions continued to increase. So far, TopToy has about 2,500 SPUs, increased from 1,500 when it got started.
spk01: At the end of April, the Qianbao flagship store was opened, and in the afternoon, the Douyin Chaoyuan flagship store was opened.
spk05: In terms of channels, TopToy has been building its omni-channel capabilities since day one. Today, it covers 15 cities in China with 25 offline stores. Meanwhile, it plans to open rubber shops as the first overseas store within this year. In terms of online channels, it has accumulated more than 300,000 members in its WeChat Meet program. In addition, it opened its Tmall flagship store in late April and will cooperate with other e-commerce giants such as J&J.com and Doreen to open more stores.
spk01: On April 28, Tmall also held a joint purchase and link event in Shanghai. On April 28, TopToy held a Zami branding event in Shanghai to introduce its proprietary IPs such as Twinkle, Kami, and Yoyo. I'd like to take this opportunity to share TopToy's IP strategies.
spk05: We estimate 30% of TopToy's products will be through self-owned IPs or through cooperation with IP partners, and the other 70% will be through third-party IPs. Proprietary and exclusive IPs, because of its originality and uniqueness, are much easier to communicate with fans. They have high growth margins and enable TopToy to build competitive advantages. To focus on IP development, TopToy has cooperated with nearly 300 designers and supply partners, including talented designers such as Ko Yokoyama, Japan's top designer.
spk01: This is the first complete year since TopToy was launched. We continue to promote product development and business innovation, encouraging domestic business to recover quickly, gain profit, and restore stability. New business, TopToy, will continue to In 2021, the next time, Miniso will continue to go down in China's vast three-line and down-to-earth market, opening new stores and occupying a larger market share. In the overseas market, we will closely monitor the epidemic and resume progress. We will adjust business plans in the future and strive to support the resurgence of overseas business as soon as possible.
spk05: The March quarter was Mintel's first full quarter as a public company. We have experienced accelerating recoveries in domestic operations and profitability as we continue to focus on product innovation. TopToy continues to achieve new milestones as we continue to sharpen our business model, products, sales channels, and proprietary IPs. Looking forward in 2021, Minnesota will continue to penetrate further into Chinese low-tier cities by opening more stores and capture more greater market share in these high ROI regions. Meanwhile, we will continue monitoring the pandemic recovery in overseas markets carefully and rapidly adapt our expansion plan as necessary to embrace its recovery.
spk01: This concludes my travel business update.
spk05: I now turn the call to CFO for financial review.
spk04: Thank you. I will start my remarks with a view of March quarter financial results and then provide additional color regarding the June quarter. Please note that I will be referring to non-IFRS measures, which have excluded share-based compensation expenses. Revenue was 2,229 million RMB, representing a year-over-year increase of 37 percent and a quarter-over-quarter decrease of 3 percent. Year increase in revenue was driven by the recovery of our domestic operations, which increased 75% to 1,788 million RMB. Within our domestic operations, revenue of municipal offline stores was 1,544 million RMB, increased 69% year-over-year, Revenue over e-commerce was 171 million RMB, increased 86 percent year-over-year. In overseas markets, revenue declined by 28 percent year-over-year, as compared to a decline of 51 percent year-over-year in the previous quarter. The quarter-over-quarter decrease was mainly due to seasonality. and the influence of pandemic. Our business is subject to seasonal fluctuation, typically with a strong performance in December quarter than in March quarter. However, we took several effective measures, such as launching more popular products to boost the sales and penetrating further into low-tier cities in China in this quarter. The sequential decline of revenue was only 3%, compared with the sequential decline of 11% in March quarter 2019, which represented a normalized seasonality before pandemic. Gross profit was 627 million RMB, increased 19% year-over-year, and decreased slightly quarter-over-quarter. Gross margin was 28.1% the highest in the past four quarters since the outbreak of pandemic, showing a positive sign of our continued business recovery. Gross margin was 32.4% a year ago and 28.0% a quarter ago. As we have explained in last quarter, the fluctuations in gross margin were due to change in our revenue mix The year-over-year decrease was due to a decrease in revenue contribution from our more profitable overseas operation, which was 19.8% of net revenue in this quarter, as compared to 37.3% a year ago. The significant increase in gross margin was mainly attributed to an increase in revenue contribution from our high-margin online channels, such as e-commerce and O2O in this quarter, despite the decrease in revenue contribution from our overseas operation, which was 20.1 percent of net revenue a quarter ago. Selling and distribution expenses was 275 million RMB, increased 18% year-over-year, but decreased 10% over quarter. The year-over-year increase was attributed to increased logistic expense, which was in line with the recovery of our business during this quarter, and the increased marketing expenses as we continued to strengthen brand recognition for Miniso and StockToys. The quarter-over-quarter decrease was primarily due to the decrease in marketing-related expense and personal-related expense, such as the payroll and the travel expenses caused by Cincinnati. G and A expense were 157 million RMB, increased 29 percent year-over-year, and the flat quarter-over-quarter. The year-over-year increase was primarily due to increase in personnel-related expense and IT expenses. We took measures to reduce G and A expense when the COVID-19 pandemic broke out during the same period of 2020, such as trimming down the personnel-related expense and IT expense, resulting a low comparison base for these expenses. Turning to our profitability, operating profit was 161 million RMB increased by three-fold year-over-year and two-fold quarter-over-quarter. The year-over-year improvement in operating profit was primarily due to our business recovery in China, while the quarter-over-quarter improvement was due to the deduction in operating expense and other net income outlaws, which was a loss of 55 million RMB in the previous quarter, but an income of 8 million RMB in this quarter. Adjusted net profit was 149 million RMB, increased by 10 percent year-over-year and 77 percent quarter-over-quarter. Adjusted net margin was 6.7 percent, the highest in the past four quarters since the outbreak of the pandemic, compared to about 8.3 percent a year ago and 3.7 percent a quarter ago. Basic and diluted earnings from continued operations per ADS were both 40 cents compared to 76 cents a year ago and $0.08 a quarter ago. Adjusted basic and diluted earnings per ADS were $0.52 a year compared to $0.44 a year ago and $0.28 a quarter ago. Turning to our balance sheet, as of March 2021, The combined balance of companies' cash equivalents, restricted cash, and other investments were 7 billion RMB, compared to 6.9 billion a quarter ago. The increase was primarily due to the cash flow generated from the operation. Turning to working capital, the turnover of inventories and trade receivables remained flat sequentially. Looking ahead into June quarter of 2021, we expect our total revenue to be between 2.3 billion RMB and 2.5 billion RMB, which is representing an increase of 48% to 61% year over year. As we continue to operate in a time of significant uncertainty, In regards of the timetable of pandemic recovery in our overseas market, we remain cautious in our sales outlook in this market. However, we are encouraged by our efficient working capital management, steady recovery of gross margin, disciplined investment and expense in the new business, all of which has laid a solid foundation for us to deliver consistent strong financial performance, and long-term shareholder value. This concludes our prepared remarks for today. Operator, we are now ready to take questions.
spk00: Thank you. We'll now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. At this time, we'll pause momentarily to assemble our roster. Our first question is from Michelle Chang from Goldman Sachs. Please go ahead.
spk03: Thank you. 那能不能再分享一下说未来在发展其他品类跟一些领域的想法 那在过去这个五六个月top toy的这个过程中有什么经验可以跟我们分享一下呢 这是我的第一个问题 那第二个问题是关于海外这一边的话 海外的复苏因为疫情这边反复还是比较慢一点 The third question is about the recent records of our domestic low-end cities actively opening up. Mr. Ye also mentioned that some of our stores are doing well. Can you share with us more about the situation of these mature stores, such as GMB? Overall, how do we see the development of low-end cities in the future? I have three questions for management. First one is the company introduced a new retail platform X-Strategy and we successfully developed TopToy. So can management share the thoughts about the future development and also what experience we can learn from TopToy development? The second question is about the overseas recovery. On the one hand, we control the inventory and also the expansion, but have we reviewed the overseas distributor's financial situation and the business environment and how this will impact our expansion in the future? Thirdly, for the domestic business, we have been expanding aggressively in the lower tier And can you share with us, for those stores open in the past few quarters, operational situation and also how do we see the business opportunities in the lower tier city going forward? Thank you.
spk01: Hello. Okay, Michelle, thank you for your question.
spk05: For your first question on app strategy, we certainly have some arguments on our new categories, but You know, Top Toys has gained preliminary success at this moment, and we are actually in the planning and preparation process of our new categories, and we'll share more when we have an update from you. Thank you. Let me answer the second one. It's about overseas risks.
spk04: Uh, At present, although the impact of this epidemic is relatively long, their days are not very comfortable, very uncomfortable. But from the financial point of view, they actually have no problem. Because many agents, whether they are from the shareholder structure or local financing ability, or under the epidemic, the ability to control this cost is actually very, very strong. So this part of our overall judgment is not a big risk. Of course, the epidemic has also increased some difficulties for small overseas agents. But just like what we just shared, we have actually entered more than 90 countries and regions around the world. In fact, there are more than 80 overseas agents. There are individual small agents. For example, from a scale, it is equivalent to a small farmer in a small city in China. Maybe a country, for example, three or four million people, from a market scale, is to open 20 or 30 stores. Now, for example, two or three stores are open. In this case, there is a possibility that it will be more risky. But overall, we think that its impact on us, even if there are some situations, the impact of the company's overall overseas business is very significant. At the same time, I would like to emphasize that if you look at the past four seasons, the climb of our entire overseas market business, whether from income or profit, can be found very clearly. In fact, the most difficult time in the overseas market has passed. Last year, it was 331 to 630. That was the most difficult time. Now, many agents can see that they think that the most difficult time is coming. For example, in recent months, we have entered several new markets, including the grape seed market, including a new market in Italy, which has signed overseas agents. For example, in the market of Spain, Okay, Michelle, for your second question, for the overseas, I think these questions need to be analyzed case by case.
spk05: You know, we had more than 1,700 overseas stores by now. And in terms of overseas distributors, the top 10 distributors accounted for more than 60% of our overseas stores. So the concentrated is quite high and stable. You know, for these big distributors, they're absolutely uncomfortable at this moment. But outside, they are very strong in cash acquisition, in shareholder structure, and in their cost control abilities. So our judgment is that there's no big risk for these big distributors. For the smaller ones, absolutely, some of them will be even bigger difficulties. And as we showed before that, we now have 80 distributors in our overseas market. Certain distributors' financial difficulties will not influence the whole big picture of our overseas market. And if you look at the past four quarters performance of our overseas business, no matter in revenue or in net income, I think the most difficult time has passed. And we even see some of overseas markets, some distributors are accelerating their pace of expansion, such as Italy and Portugal, which we have entered during the first four and second four in this year. And for example, Spain, This country alone has opened six stores in the first quarter. So that's the answer for the second question.
spk04: The third question you asked is about the downtrend market. Indeed, in the past few seasons, Miniso's downtrend market strategy has been very good. In fact, the most fundamental reason is that Miniso's products are very competitive in the downtrend market. Mr. Ye just shared that. Miniso, regardless of whether it is a high-end or low-end city, our price-to-market conversion rate is actually unrivaled in all aspects. This is the real foundation for us to be able to go down. We really think that the potential of the whole down market is very large. For example, cities below the three lines of China, not including lines, actually have 270 of them. There are more than 1,000 lines in China. And Miniso, now the whole city that enters China, including lines, actually has a total of more than 300. So there are actually more than 1,000 blank spots in the market. These blank spots require us to go step by step to execute the downfall and fill it up. As for the single chain model of the downfall market, in fact, in the past year or so, we have been continuously observing. In fact, I also gave a similar example before. Its turnover is relatively high. Of course, there is no one-line city. For example, its average turnover may be around 3 million to 4 million a year. But his rent level is very low. Usually it's less than eight percent. The staff is also very low. Of course, the opening cost was also very low at the beginning. So the return of the whole furniture shop is very, very good. Even if the furniture shop often appears, for example, it can be returned in 12 months or even six months. In this case, it is often in the mini store. It was very, very often seen in the early 13 14 15 years. And now in high-end cities, because the market competition is very intense, it is difficult to see, for example, the return of six months and nine months. But now, in low-level cities, this kind of situation often occurs.
spk05: So, this is why we think it is a very good space for the next down-to-earth market. First of all, we think Minnesota's product and our business model are both very competitive in lower-tier cities. As Ms. Ye mentioned just now, The key operating metrics such as average sales price, cross-selling rate, and conversion rate, they are all very similar with the high tier cities. And in terms of adjustable market, you know, as for today, MISO has entered about less than 300 cities in China. But if we look at the Tier 3 and below cities alone, there are 270 more in China, not to mention the 10,000 countries in China. So the addressing market is big enough. In terms of EUE, we have been continuously monitoring during the past year. as we talked before that. In these cities, the revenue may not be as high as in the first-tier cities, but a typical store sale can generate sales of 3 to 4 million annually, and the rental cost can be controlled within 8% of sales, so the payback period can be as as short as in six to eight months. It's very similar to Minnesota's first stage in 2013 to 2015. Thank you.
spk00: The next question is from Lucy Hughes from Bank of America. Please go ahead.
spk02: Hello, Mr. Zhang. Hello, Mr. Yi. I'm Lucy from the US government. I have three questions. You mentioned the members. We've been paying attention to the members, so can you share with us what kind of information we've got from the members' big system and big data? In addition, do we have more ideas about how to use these member systems in the future? This is the first question. The second question is about the resumption of China and overseas since April and May. And for the second half of 2021, can you do a little bit of an overview? This is the second question. The third is about this top toy side. Because we also held this press conference in Shanghai. So I don't know about this year, which is 2021. Our opening plan includes The first question is about membership. So we have accumulated members for a while. So what we have learned from this big data and how are we going to more utilize this data to help with our operations? Second question is about the GMV recovery in China and the overseas market in April and May? And how should we think about the recovery trajectory for the second half? Third question is about TopToy. So what's the opening plan for this year as well as more operating matrix? Thank you.
spk01: Okay, let me answer the first one, the number of members. During the past three months, in the past 12 months, the number of members has increased by more than 2 million. In June 2022, it increased by nearly 8 million. Through the mobilization of members and the improvement of the efficiency of members, we found that the number of members
spk04: This is a positive point. I would like to add one more thing. Mr. Ye mentioned a few key numbers just now. From the middle, we can see that membership is very important to us because it obviously contributes a lot to us. In fact, in the past year, we have gradually increased the importance and understanding of membership, including the establishment of our membership system. We have gradually established it in the past year. Now, relatively speaking, it is relatively complete. The second is that we are now using all kinds of forms to actively activate members, including small files, including text messages, including sending messages. At the same time, we actually manage the members according to the cycle of life. Divide it into prenatal period, growth period, maturity period, death period, and so on. Because one of the benefits of managing the cycle of life for members is actually like managing products. When you find that this member, for example, is very potential, you can actively engage with him. so that our platform is not enough, whether it's online or offline. If it's in a drop-off period, you can actually carry out all kinds of authentic marketing. So overall, just like what Mr. Ye mentioned, we think that members and self-discipline are actually complementary. Because self-discipline is actually a better way to reach out to members. Overall, we now have a relatively complete and mature way to enhance the value of members.
spk05: Okay, Lucy, thank you for your questions. For your questions on member, as we showed that by the end of this quarter, and we have accumulated 30.2 members, and we have using various ways to outreach and activating things. So, we have some members figures to show. In terms of average sales price, the members were double that of non-members. And in terms of repurchase rate, non-ordinary customers of the municipal average, they come and buy for 1.5 times each year versus three times of members. So as Stephen added that we have realized the important role that members have played in our improvement of approval. So our understanding of the importance of members have been improving during the past year, and we'll make more efforts to improve that. So we have improved. For example, we have managed our members in different stages in their life cycles so that we can carry out more targeted marketing to outreach and keep them and increase the retention and repurchase rates of these members.
spk04: This is the second question you mentioned. In April and May, it has been more than a month, a development situation in China and overseas. Simply put, in China, there are two holidays in April and May. From the holiday period, we can see that sales in all aspects are actually very good. Whether it is from a scale growth or from the perspective of the same store, it is better than before the epidemic. At the same time, we also found that if After the holiday becomes a normal day, a working day, its performance will drop again. So what I want to emphasize is that before the epidemic, the epidemic, the epidemic, in fact, the impact of this economy has not been 100% gone yet. The total performance is in the holiday, including consumption, the income is actually increasing, but when it comes to working days, it can only go back to about 95%. This is the state of the country. What about the international situation? In fact, everyone can also notice that it is still highly related to the entire epidemic. The average is about 5.5% lower than March. This is the latest domestic and foreign prices. Then look at the second half of the year, which is the second half of this year's opening year. We think that the domestic market is actually probably still one of the trends I just mentioned. Of course, is it possible to recover 100% during the normal day? We think we may have to wait another one or two months before we can make this conclusion. But overall, the domestic market The performance is actually very stable. We are also very confident. The international market is indeed more turbulent. As for when there will be a more obvious recovery of performance, it will depend on the recovery of these major countries and the control of the country's epidemic. For example, India has 150 stores. Let me quickly update our business in China and overseas markets.
spk05: You know, in April and May, we have two public holidays in China, so we can see very strong sales increase during these two holidays. But after the holidays, we can see a quick decrease and get normalized of the sales. So we believe that in China, the pandemic influence is still there, so the overall recovery is still at 95% or so. In overseas markets, you know, by the end of last month, by April 30th, the overseas market as a whole is a little bit worse than we were in the end of March. We had more than 300 stores were temporarily shut down because of stricter cost control measures. control measures by the related countries. For those in business, the sales recovery rate on average was 5% lower than in the last month. If you look at the second half of this year, We see stable growth and stable recovery in China and unstable situations in overseas. And the pandemic recovery for overseas market is still way to see. For example, in India, well, we have 150 stores. As for now, 90 of them cannot open. And for some developed countries, such as the U.S., where the vaccine rejection is quite good, we actually see a good recovery of the sales trend. But, you know, in the U.S., we now have only more than 30 stores, so the influence is quite significant for all of these markets.
spk04: Thank you. As for the third question, it's about the top-top development plan. This year, we actually shared it before. In the past one or two months, we haven't had a particularly big change. We still have about 90 to 100 stores this year. So far, from the perspective of a single store model, it has been improving continuously. For example, our Dream Factory store has now opened four stores. Although the time is not long, we still have a lot of hope for Dream Factory stores in the future. Of course, at the same time, we are also discussing more of the Chaoan集合店, which is B store. This B store, we hope that it will be able to, uh, uh, uh, probably be the turnover. The turnover is about 600,000. Uh, uh, now, uh, uh, uh, uh, uh, uh, uh, uh, uh. In terms of top toy, in terms of the expansion plan, we have no big change with our update. We maintain our guidance of
spk05: 90 to 100 stores by year end, calendar year end. In terms of economic model, it is continuously being refining. I want to share our dream work stores, the four dream work stores. The monthly sales of each has been quite stable at 2 million in a month. And we are also testing our type B stores, which monthly sales can be stable at 600,000 per month. In terms of the retail partners, we also held quite a big roadshow of our retail partners by the end of the year. at the end of April, and we saw strong willingness of our retail partners to open top toy stores. And we have been receiving positive feedback and quite positive proposals, effective proposals from them.
spk00: There are no more questions in the queue. This concludes our question and answer session. I'd like to turn the conference back over to management for any closing remarks.
spk05: Okay. Thank you again for joining us today. If you have any further questions on Minnesota, please feel free to contact Minnesota's IR team, and all contact information can be found on today's press release. We'll see you next quarter. Have a good day.
spk00: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
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