Ladies and gentlemen, thank you for standing by, and welcome to MINISO's earnings conference call for the first half of twenty twenty-four. At this time, all participants are in a listen-only mode. After the management's prepared remarks, we will conduct a question and answer section. Before joining the question and answer section, please state your name and institution, and kindly note that this event is being recorded. We have announced our June quarters and interim financial results earlier today, and earnings release is now available on our investor relations website at ir.MINISO.com. Joining us today are our founder and CEO, Mr. Ye, and our CFO, Mr. Eason Zhang. Before we continue, I would like to refer you to the Safe Harbor Statement in our earnings press release, which also applies to this call as we will be making forward-looking statements.
Please also note that we will discuss non-IFRS financial measures today, which we have explained and reconciled to the most comparable measures reported under the International Financial Reporting Standards in the company's earnings press release and filings with the U.S. SEC and Hong Kong Stock Exchange. The currency unit is Chinese yuan, unless otherwise stated. In addition, we have prepared a PowerPoint presentation for today's call, which contains financial and operational information. If you are using Zoom Meetings, you should be seeing it right now. You can also revisit it on our IR website later. Now, I'd like to hand over the conference to Mr. Ye and Mr. Alvis Cheng from MINISO, who will translate for Mr. Ye. Please go ahead, sir.
[Foreign Language] 大家好，欢迎参加名创优品集团2024年上半年财报电话会议。报告期内，我们的全球市场版图持续扩张，门店数量突破了七千家，这一里程碑，这距离我们突破六千家门店过去还不到一年的时间。
Hello, everyone. Welcome to MINISO Group's earnings conference call for the first half of 2024 . During the reporting period, our global market footprints continued to expand. We achieved a milestone of seven thousand stores globally, which is less than a year since we surpassed six thousand stores.
In the first half of 2024, the Group's stores net increased 502, among which MINISO Overseas and TOP TOY both welcomed the historically fastest store opening first half year, respectively net increased 266 stores and 47 stores. These two businesses also all maintained same-store sales double-digit growth, continuing to serve as the company's growth engines. Domestic MINISO net increased 189 stores, same-store sales recovery rate for last year level's 98.3%, continuing to lead the industry, achieved steady growth. Therefore, first half year company revenue year-over-year increased 25%, reaching CNY 77.6 billion, among which comparable same-store sales growth 7%, average store number increased 19%.
In the first half of 2024, the group's net store networks have seen 502 net new units, with both MINISO Overseas and TOP TOY experiencing their fastest store opening period in history, adding 266 and 47 new units on a net basis in the first half of the year, respectively. These two business segments also maintained double-digit growth in same-store sales, continuing to lead robust growth and act as growth engines in the group. MINISO Mainland China achieved steady growth by adding 189 net new stores, including a best-in-class same-store sales performance of 98.3% of previous year's level.
As a result, the group's revenue for the first half increased by 25% to RMB 7.76 billion, including a 7% same-store sales growth and a 90% growth in average store count.
[Foreign Language] 产品能力是我们的核心竞争力，我们在产品端继续紧扣IP和战略品类两个抓手，有效地将毛利率从去年同期的39.6%提高到了43.7%，增加了10.1个百分点。渠道能力对我们在未来的竞争中脱颖而出至关重要，特别是海外，特别是直营市场，特别是美国。美国渠道拓展速度持续超出预期，门店数量翻了一倍，同店销售双位数增长。虽然海外市场还处于投入阶段，但通过有效的费用投入管理，2024年上半年调整后净利润仍然同比增加了18%。扣除汇率影响后，净利润同比增加26%，略快于收入增速。
Product capability is our core competitive strength. We continue to focus on IP and strategic categories, increasing gross margin from 39.6% in the first half last year to 43.7%, respectively, adding 4.1 percentage points. Channel capability is crucial for us to stand out in future competitions, especially in overseas markets, especially in direct operating markets, and especially in the United States. The pace of store expansion in the United States have exceeded expectations continuously, with double store counts and a double-digit same-store sales growth. Even though we are still at investment stage in overseas markets, under our effective cost control measures, adjusted net profit in the first half of 2024 still increased 80% year over year. Excluding net foreign exchange impacts, adjusted net profit increased 26% year over year, slightly faster than the growth of revenue.
[Foreign Language] 在今年年初的投资人日上，我向大家分享了公司使命、愿景、未来五年的发展战略和实现路径。我们的使命是为开心而生，愿景是成为世界第一个IP设计零售集团。为了实现这一愿景，公司将始终坚持性价比，坚持全球化，坚持IP创新和......
[Foreign Language] 和产品设计，我们设定了三大目标，2024年到2028年，每年净增900到1,100家门店，保持不低于20%的收入复合增长和CNY 6以上的每股收益增速，以及到2028年IP产品的销售占比超过50%。
On our investor day earlier this year, I shared our mission, vision, long term strategy and implementing paths in the next five years. Our mission is Life is for fun, and our vision is to become the world's number one IP design retail group. To realize this vision, we adhere to affordability, globalization, and product innovation IP designs. We have established three targets: 900-1,100 net new store in each year from 2024 to 2028. No less than 20% CAGR for revenue and a higher CAGR for EPS from 2024 to 2028, and having no less than 50% of IP product sales contribution by the end of 2028.
[Foreign Language] 2024年上半年，尽管全球市场纷纷变化，我们的商业模式继续在展现出强大的韧性，业绩表现达到了年初预期。未来，各业务板块将依旧按照五年战略坚定推进。
In the first half of 2024, despite involving global markets, our business model demonstrates strong resilience and our financial performance met our earlier expectations. Going forward, all of our businesses will make firm progress in accordance to the five-year strategic plan.
[Foreign Language] 下面我们将分别为MINISO国内、MINISO海外和TOP TOY三大业务板块，为大家详细介绍上半年的业务的发展情况。
Now, I will walk you through 2024, our first half business update for our three major segments, MINISO Mainland China, MINISO Overseas, and TOP TOY.
First, MINISO Group's domestic business. The offline business, based on high-quality channel expansion, continued to maintain resilient store sales performance, with revenue up 16% year over year. According to data from the National Bureau of Statistics of China, the domestic retail sales growth rate for the same period was 4.1%. Store sales recovered to 98.3% of the same period last year, with average ticket size up 0.9% and transaction volume down 2.5%, but the store conversion rate remained stable.
If we consider the Q2 hot-selling Chiikawa flash store sales, domestic store sales in the first half of the year would achieve positive year-over-year growth, which is a very outstanding performance in the entire domestic offline retail industry. The instant retail business also developed rapidly, with year-over-year growth of nearly 80%. Entering Q3, domestic year-to-date sales still maintain slightly negative growth. We expect domestic MINISO revenue to continue at last year's high level of 14%, with continued growth of 4%-15%, in line with expectations at the beginning of the year.
Firstly, MINISO Mainland China continued to achieve a robust and resilient same store sales based on high quality channel expansions, with a 60% year over year increase in offline GMV. According to National Bureau of Statistics, the growth rate of domestic retail sales of goods was 4.1% during the same period last year. In particular, same store sales were at 98.3% of the previous levels, with a 0.9% increase in ticket size and a 2.5% decrease in traffic. Meanwhile, purchase conversion rates have remained stable. If including the Q2 half sales of Chiikawa products in our pop-up stores, the same store sales growth for H1 in domestic markets would have a positive growth year over year, which would be an impressive performance in domestic offline retail industry.
Offline to online models also developed rapidly, with a nearly 80% increase in GMV for the first half years. Entering the third quarter, our year-to-date domestic sales have continued to maintain a double-digit growth. We expect MINISO Mainland China will continue to grow by 10% to 15%, in line with our earlier expectation.
[Foreign Language] 门店网络扩展也在高质量推进。上半年国内竞争门店189家，保持门店的开店速度，向全年350-450家竞争门店的目标努力。一、二线城市的门店竞争占比接近60%。同时，我们看到上半年高线城市，特别是是一线城市，门店恢复情况优于低线城市，接近100%。一方面说明了MINISO在高线城市仍有广阔的开店空间，另一方面证明了我们的IP战略在高线城市成效显著，对门店业绩有非常明显拉动。而中国三线及以下城镇共有2,000个，MINISO累计进入超过1,000个，依然还有很大的覆盖下沉空间。我们的加盟商结构也非常稳定，近四年来，前50的加盟商营业门店数量一直保持50%，有超过600位加盟商合作年份超过三年，门店的发展离不开这些合作伙伴们一直以来的支持。未来我们将继续携手共赢，布局更多更好的门店。
The expansion of our store networks is healthy. In the first half of 2024, we had 189 net new stores, maintaining a steady pace towards our annual target of 350-450 net new stores. The portion of new stores in the first and second tier cities were close to 60%. Meanwhile, we are thrilled to see that in the first half years, the same-store recovery of higher tier cities, especially first tier cities, nearly 100% of the previous year's level, which recovered better than the lower tier cities. On one hand, this indicates that MINISO still has sufficient space for store openings in higher tier cities. On the other hand, this also indicated that our IP strategies have been notably effective in higher tier cities, significantly driving the performance of same-store sales.
There are a total of nearly 2,000 cities and towns in China, county-level areas , and MINISO have entered over 1,000 of them, indicating that there is still a significant untapped market for future penetration. Our retail partners structure is also very stable. In recent four years, store concentration rate for top 50 retail partners remain at 50%, and more than 600 of them have been in cooperation with MINISO for more than three years. The development of MINISO is inseparable from the support of our partners, and we will continue on a win-win cooperation for more and better MINISO store. Next, let's discuss the MINISO's overseas business update. In the first half of 2024, revenue from overseas exceeded CNY 2.7 billion, a year-over-year increase of 43%.
In particular, revenue from the direct operation market increased by 70% year over year on a comparable basis. The direct operation market accounting for 56% of overseas revenue in the first half of this year, surpassing the distributor's market. Excitingly, the overseas markets added a net of 266 stores in the first half year, which marked the fastest store opening pace for the first half of the year since MINISO's globalization nine years ago, boosting our confidence in our goal of 550-650 net new stores for the whole year. Amongst these net new stores, the number of directly operated stores has been set at a record of 105, with more than 50% of them from United States.
Last week, we celebrated the opening of the 200th MINISO store at the Santa Monica Beach in California, turning MINISO as Asia's consumer brand with the largest store network in the United States. We have entered 40 states in the United States, along with the rapid growth in the numbers of the U.S. stores. Same store sales have also achieved healthy growth in the first half of 2024. Going forward, we will pay more attention to our store operation management, aiming to achieve sustainable same store sales growth through product localization, operations localization, and consumer localization. The IP strategies have been further strengthened and implemented in 2024. In the first half years, IP product sales contribution exceeded 30%. In our domestic market, IP products contributions have been further increased nearly to 30%, with a nearly 40% year-over-year growth.
In our overseas markets, IP products contributions have been increased to nearly 50%, and the revenues have been doubled. We uphold IP strategy as a core of the brand and continuously explore innovative IP collaborations. To summarize, the three news of IP operation in the first half of twenty twenty-four, they are new models, new store types, and new series. Firstly, in the first half of twenty twenty-four, the GMV of the IP themes models increased by about 400% year over year, contributing to more than 30% of the IP product sales, compared to less than 10% contribution in the same period last year. Secondly, our new store formats, the IP pop-up stores, were launched in the first half of the year. They provided consumers with brand new shopping experience and have become a new channel for IP product sales.
The upgrades and developments of product series of the same IP brands will prolong the promotion heat, extend the IP operation service cycles, and create more sales opportunities to a greater extent.
[Foreign Language] 在海外，我们负责淘宝为BT21这个热门IP造势，接连刷新了多个海外市场IP销售记录。智能IP系列运营的大获成功，不仅为我们带来了更好的产品销售和更强的品牌曝光，更重要的是让我们在全球市场合作伙伴深深感受了IP消费的潜力和MINISO的品牌价值。感谢我们的渠道合作伙伴在活动中给予的支持，我相信随着未来和渠道方深入合作，将有机会创造更多的营销爆点和销售奇迹。
In overseas markets, we replicated our IP operation strategies and created momentums for the popular IP BT21, continuously setting new records for IP sales in multiple overseas markets. The great success of such IP series operations not only brought us better product sales and stronger brand exposure, but more importantly, allowed our global commercial rental partners to fully perceive the potentials of IP consumption and the brand values of MINISO. We are grateful for the support from our partners during these events. I believe that with in-depth cooperation with them in the future, there will be opportunities to create more marketing highlights and sales miracles.
[Foreign Language] 得益于IP策略的有效执行，截至六月三十日，IP MINISO全球注册会员超过一亿人，逐步完善了全球会员体系，未来更大实现IP粉丝和品牌会员的相互转化，也为MINISO未来业绩增长提供潜力。
Thanks to the effective implementation of our IP strategies, as of June thirtieth, the numbers of registered members of MINISO worldwide exceeded one hundred million. Gradually improving global membership system will help convert more IP fans into our brand members and vice versa, fueling business growth of MINISO in the future.
The Super Store strategy is also being steadily advanced globally. Taking advantage of the Olympic momentum, we opened a global flagship store on the most famous Champs-Élysées in Paris, France, and because of the support for the Chinese Olympic team as brand promotion, we attracted countless global consumers. Using the store as a window, they learned more about products and culture from China.
The number of stores in Indonesia had already exceeded 300 by the end of June this year, and tomorrow the largest MINISO flagship store in the world, covering 3,000 sq m, will also meet everyone in Jakarta, Indonesia. We hope these global flagship stores are not just shopping venues, but also magical paradises, wonderful spaces where global consumers linger and discover surprises while exploring the stores. We believe that happiness is a power that can be shared, and we are committed to creating this power for every consumer who enters our stores.
The Super Store strategy is also steadily advancing globally. Taking advantage of Olympics momentums, we opened a global flagship store at the most famous Champs-Élysées Avenue in Paris. The brand promotions of cheering for Chinese Olympics athletes attract countless consumers from all over the world to get to know more about the products and culture from MINISO, from China via MINISO stores. MINISO has over 300 stores located in Indonesia as of June thirtieth, and the largest MINISO flagship store in the world, covering an area of 3,000 square meters, will also be unveiled in Jakarta, Indonesia, tomorrow. We hope that these global flagship stores are not just shopping destination, but also magical paradise and a wonderful land that captivated global consumer and leave them with a sense of wonder, allowing everyone to be treasure hunters in our stores.
We believe that happiness is a force that can be passed on. We are committed to creating this force for every consumer who enters MINISO stores.
[Foreign Language] 同时，我们也对外供应链积极布局。经过今年上半年的努力，我们绝大部分销往美国的市场产品都可以利用东南亚、日韩及美国当地供应链充分替换，应对充满变化和挑战的全球化市场，保持供应链极强灵活性是出海企业重点的修炼的基本功。
Meanwhile, we are also actively deploying the overseas supply chain. Through the efforts in the first half years, most of the product categories we sell in the United States markets can be fully replaced by the supply chains from Southeast Asia, Japan, South Korea, and United States. Operating a highly agile supply chain is a must-have approach for the global companies to cope with the evolving and challenging global markets.
[Foreign Language] 接下来为大家介绍一下 TOP TOY 的进展。
Let's move on to TOP TOY.
[Foreign Language] 上半年 TOP TOY 收入同比增长 38%，可比同店销售额实现了高质量的 4%-14% 的同比增长。上半年竞争 TOP TOY 门店数量 47 家。
In the first half of twenty twenty-four, TOP TOY's revenue increased by 38% year over year, including a high-quality same-store sales growth of 14%, coupled with a net increase of 47 TOP TOY stores in the first half of twenty twenty-four.
[Foreign Language] TOP TOY自研产品继续取得突破，2024年上半年自研产品占比超过了35%。自研产品平均终端毛利率约60%，无疑对提升整体毛利率起到了积极作用。对于毛利率的提升和经营杠杆，TOP TOY已经连续三个季度实现，业务拐点已经确立。
TOP TOY self-developed products continue to have breakthroughs, with the proportions of self-developed products exceeding 35% in the first half years. The average merchandise gross profit margin of self-developed products is about 60%, which undoubtedly plays a positive role in improving the overall gross profit margin. TOP TOY has been profitable for three consecutive quarters, reconfirming its tipping point.
[Foreign Language] 产品方面，Q2上新的自研产品库洛米模拟系列登顶今年全品类销量TOP 1。最近刚刚上市36唐娇毛绒系列，更是上市15天销量突破10万只，实现超过1000万的GMV。未来我们将持续提升自有品牌的产品的占比，进一步优化商品利润率。
As for the products, the self-developed Kuromi Beach series launched in Q2 have topped the sales of all categories in Top Toy this year. The recently launched Sanrio vinyl series have exceeded thousand, hundred thousand units of sales within just 50 days in launch date, achieving over 10 million sales. In the future, we will continue to increase the proportions of self-developed brand products and further optimize the product's [Foreign Language] profit margin.
[Foreign Language] 2024年，我们专注于业务的同时，更加注重企业文化的建设。我在内部反复强调的是，战略大致正确，团队必须充满活力的观念。为了使名创优品适应的的发展进程，人才是我们企业发展最坚实的后盾和。截至六月三十日，我们全球员工数量已突破五千二百位，超过两千八百位是我们海外员工。今年三月份，我们发布了公益奖励方案，首期投入一千万元人民币作为员工公益基金。刚过去的七夕，我们也举办了首届名创优品集体婚礼，为十七对新人送上了真诚的祝福。
In 2024, while focusing on business, we also laid more emphasis on fostering our corporate culture. I repeatedly emphasized right strategy and dynamic teams internally. Looking back at the 11 years development history of MINISO, talent is the most solid strength for our enterprise development. As for June thirty, the numbers of our global employees have exceeded 5,200. Over 2,800 some more of which are from the overseas. In March, we launched a marriage and fertility reward plan with over CNY 10 million in initial fundings. On Qixi Festival, we held the very first MINISO Group wedding ceremony for 17 couples, sending our sincere blessings.
[Foreign Language] 我一直在内部强调热爱与坚持两个价值观。我们在追求人生和事业的成功，需要正确的价值观，足够的专业能力以外，更需要强烈的热爱和不懈的坚持。这份热爱与坚持，便是名创优品能够不断地创造行业记录、不断地推进企业发展的核心源泉。
I have always emphasized the values of passion and persistence within the group. In our pursuit of success, both in life and in our career, in addition to the correct values and sufficient professional ability, we also need a strong passions and persistence. The passion and persistence are also the core of MINISO employees to create industrial records and promote enterprise development continuously.
[Foreign Language] 零售行业是长跑的赛道，我们坚持长期主义，坚持实事求是，坚持零售的胸怀与抱负，胸怀和抱负。名创优品希望未来能够一直给全球消费者带来好看、好玩又好用的产品，给员工带来有竞争力的职业发展机会，也给股东带来长期可持续的回报。
Given the huge potential for development and profitability in retail industry, we commit ourselves to long-termism, to seeking truth from facts, to operating with good faith and strong ambitions. MINISO hopes to provide playful, appealing, and useful products to our global consumers in the future continuously, offering competitive career development opportunities to our employees, and bringing long-term and sustainable returns to our shareholders.
[Foreign Language] 以上是我讲话内容。下面请Eason为大家介绍上半年的财务情况。
That concludes my remarks. Next, please allow Eason to introduce the company's financial situation in the first half of the year.
Okay. Thank you, Jack, and welcome everyone for joining us today. I'm pleased to see that our business has made firm progress in accordance with the five-year strategic roadmap, and our performance has met the expectations at the beginning of the year. Our business model has demonstrated great resilience despite the softness of the domestic consumption market. In overseas markets, where we don't directly operate store network, we managed to balance growth and margin, and we can surely do better in the second half, because the initiatives we adopted recently to improve operational efficiency have begun to pay off. Although the economic data remains mixed, we see structural opportunities in IP retailing and globalization. We have full confidence to deliver our year-beginning targets. Now, let me walk you through our financials for the first half.
Please note that all numbers are in renminbi unless otherwise stated. I will also refer to some non-IFRS measures, which have excluded share-based compensation expenses or SBC expenses. Revenue saw a robust increase of 25% on last year's high base, and at high end of our expectation. We are thrilled to see both drivers of revenue performed very well in the first half. In terms of store network, we delivered record net addition in overseas and TOP TOY, and we expected acceleration in the second half in many. In mainland China, we are on track to deliver our guidance of 350-450 net new units while making necessary training to our existing store formats and franchisee structure. When it comes to same-store sales, we delivered a 7% year-over-year growth at group level.
We are particularly encouraged by our achievement in mainland China. Well, SSG was ninety-eight point three percent completed by level, outperforming domestic retail sector. Our product team kept introducing best-selling SKUs as they have been doing during the past 11 years. Our operation team has launched several initiatives to make sure MINISO same-store sales is best in class. For example, our O2O business or instant retail increased by nearly 80% in the first half because our 4,115 stores are easily accessible to our customers, and we have right products and a comprehensive set of fast and convenient digital fulfillment solutions. Overseas, same-store sales growth was 16%. We are still at very early stage to uncover sales potentials of overseas stores. It will grow very fast, but inevitably fluctuates.
The mission critical here is localized products and operations. Although MINISO is a pioneer in Chinese consumer brands going overseas, our attempts at retail localization are merely at the beginning stage. In addition, top-line same-store sales growth was remarkably at 14% in the first half. Next, let me talk about channel mix. Overseas DTC market is now 20% of our total revenue, compared to fourteen percent in the first half last year. The revenue contribution from MINISO China offline stores decreased by four percentage points. This shift in revenue mix is one of the reasons why we had another record-high GP margin, and it also changed operating profit distribution within a year, as more profits will be made in the second half.
In terms of GP margin, the year-over-year hike of 4.1 percentage points is a result of not only revenue mix shift, but also improvements in GP margin at every single line of business, notably in TOP TOY and overseas. Going forward, we have enough reason to believe our GP margin can be optimized further because of above reasons. Yet, we will keep an eye on value proposition and make dynamic adjustments. SG&A expense increased 56% in total, including a 66% increase in selling and distribution expenses, and a 27% increase in general and administrative expenses. SG&A represented 24% of our total revenue, 5 percentage points higher than the same period last year, among which 3 percentage points were directly related to our new DTC stores opened in the past 12 months, including rents, D&A, and payroll.
As we discussed in press release, the investment into DTC stores is to make sure the future success of our business, especially in strategic overseas markets, such as the U.S., U.S. market. As of June 30, 2024, number of DTC stores in overseas markets was 343, nearly doubling such figure compared to a year ago. In the first half, revenue from DTC stores increased by 111%, while related SG&A expenses, such as rents, D&A expenses, and payroll, excluding SBC expenses, increased 83%. These new stores are expected to contribute more substantial sales in the second half of 2024. We are taking effective measures to improve operational efficiency in these DTC stores and control costs. So the initial results is very good, so we believe the hike in operating expense ratios won't last too long.
Promotion and advertising expenses increased by 46% in the first half. P&A expenses as a percentage of revenue stabilized at around 3% in both periods. License expense increased 24%, consistent with our revenue growth. Logistics expenses increased by 54% compared to 43% of revenue growth in overseas, reflecting to a certain extent the rising freight costs caused by tension in international shipping during the first half. Turning to profitability, operating profit increased 18% year over year. OP margin was 19.3%, compared with 20.4% in the first half of last year. Notably, there was a 12 million net foreign exchange loss in this first half, compared with a 55 million net foreign exchange gain in the same period last year.
Excluding SBC expenses and FX impact, adjusted OP margin was 20.3 percentage points compared with 20.1% last year. Adjusted net profit was RMB 1.2 billion, up 18% year-over-year. Adjusted net margin was 16%, compared with 17% last year. Excluding FX impact, adjusted net margin was 16.2%, compared with 16.1% last year, implying our stable profitability on the scalable growth. Adjusted EBITDA increased by 26% year-over-year, outpacing the growth in revenue. Adjusted EBITDA margin was 25.4%, compared to 25.2% in the same period of last year. Adjusted basic and diluted earnings per ADS increased by 18% and 19% respectively. Turning to cash. By the end of June, we maintained a strong cash position of RMB 6.9 billion.
Net cash flow generated by operation in the first half was about CNY 1.3 billion. CapEx was CNY 303 million, and free cash flow was above CNY 1 billion. Turning to working capital. The channel inventory turnover remains efficient. By the end of first half, 26% of MINISO's brand's inventory were located in overseas DTC market, compared to 21% a year ago. Inventory turnover days were 81 days, including 70 days in China and 147 days for MINISO overseas DTC markets. Structurally, inventory over 180 days accounted for about 12% on group level. Turning to capital allocation, we are committed to a dividend payout ratio of no less than 50%. Our capital allocation strategy will also continue to balance fast growth and our commitment to bring stable and foreseeable returns to shareholders.
The Board of the Company has approved an interim cash dividend for the first half of 2024, with a total amount of approximately CNY 621 million. Upon the payment of the interim dividend, the Company will have returned CNY 1.4 billion in cash to shareholders through dividends and share repurchases year to date. Since 2020, we have returned 3.6 billion to our shareholders upon the payment of the interim dividend, accounting for 62% of adjusted net profit accumulated from 2020 until the first half of this year. We are confident in accomplishing our full-year business plan and five-year strategy, and believe that our share price has been trading below its intrinsic value.
Accordingly, the board of company has approved share repurchase program to make the best of the general mandate granted at our general annual general meeting held in June this year. Under this general mandate, the company may repurchase its shares and ADS in the next 12 months, not exceeding 10% of the total outstanding shares, and execute share repurchase in the open market, subject to market conditions. We believe that the share repurchase program is in the best interest of the company and its shareholders as a whole, and create value for shareholders. Our performance for the first half once again demonstrates the strengths and resilience of our business model and reflects our ability to execute on our IP and globalization strategy. I'm very confident that we will once again meet our full year targets.
Our financial strategy will continue to remain disciplined in terms of budgeting, cost control, and allocation of capital as we commit to delivering stable profit and healthy cash flows. Our targets for the year of 2024 remain unchanged from our expectations at the beginning of the year. The revenue is expected to increase by 20%-30% on a year-over-year basis, and adjusted net profit target is RMB 2.8 billion or higher. Thank you, and this concludes our prepared remarks. We are now ready to take questions.
Thank you. The first questions are coming from Lucy Yu from Bank of America Merrill Lynch. Please go ahead.
Yeah. Hi, management. Thanks for taking my question. So two question here. Firstly is on the domestic market. In July and August, we have witnessed some weakness in the domestic demand. So could you please update us how is your performance in the first two months of July and August? And how should we think about the pop-up store contribution to these two months, as well as for the rest of the year? So that's the first question. And the second one is for the selling and distribution expense as a percentage of revenue, which has exceeded 20% this quarter. So this is the highest, you know, since we have listed. So I believe this is due to faster overseas DTC expansion during the low season.
But how should we think about this ratio, going forward in the second half? Should we expect that to go back to maybe like first quarter level or last year level? Thank you.
[Foreign Language] 关于国内门店，第一中国上半年门店恢复超过98%，客单价同比增加0.9%，客单量下降2.5%，门店状况也保持稳定。在整个国内消费疲软的环境下，我们有信心继续保持行业领先的门店销售水平。具体来说，一到七月份，门店销售恢复率维持在97%以上，进入九月份之后直到下半年，节奏会变，会变得积极，叠加我们的IP产品运营策略，及时零售等方面的能力，我们的目标继续把门店恢复保持在100%这个上下两个百分点。中国业务的整年的销售增长目标不变，仍然是10%-15%之间。未来，关于未来中国门店提升，我们还是继续精细化运营的策略。一，提升产品力。产品力是我们最核心的竞争，我们紧抓IP和战略比例，通过产品结构调整来实现销售的提升，特别是随着快闪店的表现。随着兴趣消费品类占比提升，对门店的销售会有积极的作用，包括盲盒品类、公仔品类和其他各种IP产品。第二个是提升渠道力。这有前几个季度讲的，名创优品有近4000家门店，存在渠道结构性升级的机会。从去年年底开始，执行小店改大店，老店改新店，差店改好店的正在稳步推进之中。第三个是提升品牌力，包括继续推进品牌升级工作，打造一批业绩好、形象好、运营好的旗舰店铺。同时，我们打造品牌渠道矩阵的策略也在积极推进之中。前两周在天津开的IP Land的蓝之日，销售反馈非常不错，还有通过名创店铺的积极布局，未来还有一批新门店将继续和消费者见面。
So I will translate for Mr. Ye. So about your questions on the performance in recent months. First, MINISO same-store sales in China in first half it was about 98%, with ASP increased by 0.1% and traffic down by 2.5%, and our conversion rate from store visit to purchase stabilized. Now we are facing and challenged by a very soft domestic consumer market, but MINISO has very, very high confidence to keep the best in class same-store sales in China, specifically in the first seven months same-store sales was about 97% year to date. And we will see a relative lower base entering into September. And we also are working on our IP products, improving operational and investment in instant resale.
So our target for full year is to stabilize our same-store sales with, you know, 100% recovery or, you know, higher or lower than 2 percentage points on that base. And our target for the whole year for our MINISO online China business remain unchanged with 10%-15% yearly growth. And about the same-store sales in China, we have, you know, more initiatives going forward. The first is improving our product capabilities and which is our very focus, and we'll focus on IP and strategic categories to improve our, you know, to optimize our product structure.
We will have a lot more and more interest-driven product categories going forward, which will help our increase in same-store sales, including blind box or lucky draw box and, you know, IP and other IP products. The second is increase, improve our capabilities in channel expansion, as we have talked in the past several quarters.
Now we have, you know, thousands of stores in China, that have, you know, we need-- we can improve by, structurally, you know, operate the store format or inside and so on. So since last year, we have been executing this improvement. Our plan is to finish this improvement in the next couple years. And the third is to improve MINISO brand awareness, including our, you know, strategic brand upgrade. And we want to build, lots of, flagship stores with, you know, better image and better performance. For example, two weeks ago, we have a newly launched IP Land opened in Tianjin, and we have received very, very positive initial feedback from consumers there.
And we have also China Mingchuang, this new kind of store formats launched this year. And going forward, we will have another, you know, store format try and experiment, which we are, you know, very looking forward to see that. Thank you. And Lucy, about the second question about existing store selling and distribution expenses?
... A quick answer is will decrease. As I mentioned, the hike of our expense, especially those expenses with DTC stores, won't last long, because if you remember, we have talked that MINISO stores in the U.S. now are already in 40 states already. Considering that we have only like 200 stores, that means our stores in the United States are very, you know, separated. That means we will need, you know, to open more stores before we can get these, you know, logistics expenses or related expenses to the way, you know, leverage. So because our, you know, store expansion plan in the U.S. is very quick.
For example, by the end of this year, we will have doubled our store base compared to one year ago so we think that when we have three hundred stores or four hundred stores or, you know, even five hundred stores, we can fully leverage these, you know, logistic expenses or and other, you know, rent and other expenses such as the store rents and labor costs are also in on the way to be optimized so I think in the second half, you will see that our operating expense ratio be, you know, be significantly reduced. Thank you.
The next questions are coming from Miss Michelle Cheng from Goldman Sachs. Please go ahead.
[Foreign Language] Mr. Ye ，Eason，你们好，那我这边也是很快两个问题啊。那第一个问题是，关于美国市场这一块，那我们这几个月其实也看到说有一些，美国零售公司像Five Below这些的同店压力也变得比较大嘛，那能不能分享一下我们现在看到的一些机会跟挑战在美国这边，那这个怎么会影响到我们的这个扩展策略跟门店模型？那第二个问题，想聊一下这个欧洲这一边，那我们年初的时候其实有提到说欧洲是我们这个发展的重心嘛，那能不能再给我们更新一下，说今年到目前为止，这个主要的几个市场里面，包括这个开店的情况啊，跟伙伴的合作关系等等，有没有一些我们已经看到，比较好的结果，那有一些，有哪些地方我们觉得有机会做得更好？那我简单翻译一下哦。So, I have two questions for management.
For the first one is on US market. Given the volatile consumption market in US in the past few months, do we see any new opportunities or risk? And how this will impact the strategic, in expansion and store format? And also, the second question is about Europe, Europe market. This is one of the key focus we mentioned early of the year, and can you update us, the key, any development, for different markets, and in terms of the store format, partnership with different, partners and also the store format, etc. And any good progress we are seeing so far and, any room for further improvement? Thank you.
[Foreign Language] 关于这个美国这边呢，海外，整体海外同店至今仍然保持低个位的增长，由于我们还处于海外市场本地化经营的早期，在品牌知名度、产品本地化运营本地化方面还有很多工作可以改进。我相信海外同店还会经历一个快速增长的时期，但是季度之间增长会有波动的。第二个是，2023年美国业务增长的动力主要来自于同店销售增长，我们今年在美国的目標是业务规模翻倍，主要增长动力是开店。上半年美国同店增长了14%，门店数量翻倍，符合预期。美国市场截至七月底，美国2024年竞争门店69家，预估2024年全年竞争门店不少于100家，未来我们会看到美国市场开店会逐步加速，并且我们会积极探索直营、加盟、代理等多元化并存的运营模式，这种门店迅速拓展同时保证利用率在可控范围内波动，维持相对稳定的利用率。上半年美国同店增长14%，我们未来在同店竞争方面，产品方面，我们积极调整扩盘，加大本地供应链的供应。一方面，本地供应链可以提高我们的增长效率，减少走货周期，另一方面可以加大本地素材研究，重点集中 在本地IP零食和IP美妆和IP玩具的爆品采购。第二个是扩充全球其他供应链产品，包括日韩IP的彩妆产品、美妆工具等，为顾客带来更加丰富的商品供应。第三个是加强IP产品研究，为顾客带来更好的IP产品体验，持续打造全球IP联名的这种集合店的模式。门店方面，门店升级，店铺升级分为两个部分，从店铺形象升级来提高店铺产品体验和品牌形象，全面升级数字化系统，提高门店运营效率。会员系统方面，全面升级会员系统，加强消费者洞察，针对消费者的偏好进行货盘规划、门店运营等，增加顾客粘性，增加复购。团队建设方面，加大本地团队化，本地化团队建设，例如商品买手的团队逐渐本地化。...
成立海外商学院，本地运营人才培养，由专业导师培训，按照阶段培训分层的分配培训课程，并且逐步搭建复杂化培训。所有的课程均可在现场重复考核，观看考核来节约培训的成本。运营组织架构未来会以外招和内聘并用的进程方式来培养本地人才的梯队。关于海外人才培养，目前集团有东南亚人才培养中心，马来西亚已经搭建完成，第一批人才培养已经开始，未来会输入至美国。美国在2024到2025年会启动北美人才培养中心，为北美的发展战略做人才培养储备。
Let me quickly translate. So, overall, in the overseas system market, the same-store sales was double-digit growth in the first half, and we're at very early stage, as I mentioned, we have a lot of improvements in brand awareness, product localization, operational localization, and so on. So we strongly believe that we will have, you know, we'll still have lower room to growth or same-store sales growth, but we'll grow fast, but it will inevitably fluctuate, especially on core basis. In last year, 2023, the major driver of our US business was same-store sales growth. But in this year, our target is to double this business. So I think our major driver will be in-store network expansion. So in the first half, the US same-store sales growth increased by 14%, one four.
The store network, the store numbers double, and which is in line with our expectation. By the end of July, we already added about 69%, 69 new stores in the United States, and we'll have about 100 for full year in this year. In future, we'll see that United States will accelerate in terms of store open, and we will open to discuss to have, you know, more franchisees or distributors come to join us to have a very rapid store network expansion while maintaining a healthy profit in United States. Since we increased 14% in terms of same-store sales growth in the United States, in the future, we will have in several side to increase, but the first is product side.
We will, you know, adjust our product structure to increase the local supply chain, and then increase our inventory turnover and reduce the product lead time. And on our side, we want to increase more local sourcing, especially in IP-related snacks, IP-related cosmetic products, and vinyl toys. And we will also introduce best-in-class supply chain suppliers in other parts of the world, including cosmetic and beauty tools in Japan and Korea. And we will also increase our, you know, IP related product research and development, which will increase our, you know, treasure hunting experience with IP products. And in terms of storefront, we will upgrade our stores there, including image and product experience. We will upgrade our digital system to improve the store efficiency as we did in China several years ago.
And on loyalty customer, on loyalty program, we will increase our loyalty program, as we mentioned, we will improve our customer insight capabilities, and we will tailor products, you know, our product structure, and tailor our store operation measures to increase the customer stickiness and increase repurchase. We will have a strong team in the overseas, especially in the US. We will have localized team, including the buyers, and we will have a business doing overseas and including training localized operational staff, operational team. And we will have a lot of online course and training course. And we are now building you know our department in Southeast Asia to train new staff, new overseas team in Malaysia.
The first batch of this project has finished, and this new team will be the core team of our expansion in the United States. In the next two years, I mean, in 2024 to 2025, we will also set up a training center in North America and get fully prepared for our expansion there. Thank you.
Compared with the United Kingdom, first, channel upgrade. The company is actively promoting channel upgrades in overseas markets, opening larger stores and better stores. The number of stores in the United Kingdom increased by nearly 50% year over year in 2023, and the market size grew by more than 150%.
[Foreign Language] Super Stores, super Stores have effectively driven the overall market performance improvement. Second, in the first half of the year, the U.K. stores have already achieved daily average sales of CNY 20,000 per day, with a year-over-year increase of more than 50%. According to the U.S. market, it is CNY 30,000 per day, and the Mexico market is nearly CNY 40,000 per day, still with significant room for improvement. The U.K. market will become the benchmark for the European market in the future. We believe the European market will have at least 1,000 stores in scale in the future, and the European market still has very significant growth potential.
Second, focus on IP. Use IP differentiation to create products that meet the needs of the European market. From the data, the European market is vigorously promoting the IP strategy, with the proportion of IP products increasing from 49% last year to 65%, among which the French flagship stores are over 80%. The gross margin of agent market products has also improved significantly. Focus on core categories, third, focus on core categories. The Top 100 series contribute more than 90% of the performance, and in each series and each channel, there are good performances. In the future, the trend of core category operation zoning strategies will gradually and step by step make the stores more specialized, and the shopping experience and category structure that are accumulated will effectively improve the performance.
On your second question, we have three measures. The first is to upgrade our store formats. Let's take U.K. as example, where we have been, you know, proactively help them to increase and upgrade their channels, to open bigger stores and to open better stores. So in the first half, its same-store sales increased by 50%, and its total sales increased by 150%. And that has once again demonstrated that our Super Store strategy has helped increase the overall performance of the market. And in terms of per store sales per day, U.K. now is about 20,000 and increased by 50% year over year.
It still has room, you know, compared with the United States, compared with the Mexican market, but it's already a huge jump for itself, and it's the best in Europe already. In the future, U.K. will be the benchmark market in Europe for MINISO. I think for Europe market, ultimately we can open 1,000 stores in the future. It's a huge potential. The second is we want to still reiterate our focus on IP and differentiate, differentiate IP is a key to our future success in Europe. From our data, IP is now 49% of total sales in there, and year over year increases about 65%, especially our flagship store in France, which has an 85% of our IP sales.
This has robustly helped the overall distributor market to increase its GP margin. The third is stay core. Our you know top 100 SKU contribute about 90% of our total sales in Europe, and each segment has performed very well. In the future, our key product categories in this will you know make MINISO stores in Europe getting more professional and provide more immersive shopping experience to our customers. Thus, help us to increase our store conversion rate. Thank you. [Foreign Language] 谢谢 叶总，谢谢 Eason。 Thank you, Michelle.
Thank you. We shall conclude our call now. Thank you all for joining us today. We will see you in the next quarter. Goodbye.