Image Source: Visual China

Beijing, June 23 (TMTPOST) – Chinese lifestyle product retailer MINISO will reportedly pass the hearing of Hong Kong Stock Exchange and go public in Hong Kong next Monday.

It is reported that the company aims to raise US$100 million through a public listing in Hong Kong. The fund raised will be used for operation expansion, service upgrade, branding, marketing and training.

MINISO is also listed in the United States. The company went public on New York Stock Exchange in 2020, raising around US$656 million. Its market valuation surged to nearly US$7 billion on the listing day and later went over US$10 billion.

The company’s market performance has been dissatisfying after the public listing in New York. According to the company’s prospectus submitted to Hong Kong Stock Exchange, the company’s profits between 2019 and 2021 were -294 million yuan, -260 million yuan and -1.429 billion yuan. This means that the company lost 1.983 billion yuan in total in the past three years.

MINISO’s market valuation has shrunk by over 50%. The company’s share price on New York Stock Exchange closed at US$8.2 per share on June 21, registering a slight increase of 6.91%. However, the company’s market valuation has gone down by 64% when compared with the US$6.992 billion in October 2020.

MINISO’s loss might be caused by the company’s continuous expansion globally, some analysts pointed out. As of December 31, 2021, MINISO already has over 5,000 outlets across the globe, with more than 3,100 located in China. The rapid expansion had increased operating costs for the company. Revenues coming from each outlet have been decreasing.

The resurging Covid-19 pandemic in China has dealt a devastating blow to MINISO, a retail company that relies heavily on brick-and-mortar outlets. As of March this year, the company has temporarily shut down over 300 outlets in China. In the overseas market, 4% of the stores have remained closed. There are also problems with the logistics. The supply chain for overseas outlets has been disrupted as well.