On Aug 19–20, POP MART (09992.HK) reported its 1H 2025 results: revenue reached RMB 13.876 billion (+204.4% y/y); profit attributable to owners was RMB 4.574 billion (+396.5% y/y); adjusted net profit was RMB 4.710 billion (+362.8% y/y)—all significantly above market expectations. Management said at the results briefing that the full-year revenue target may be raised from RMB 20 billion to no less than RMB 30 billion. Flagship IP LABUBU remains the primary growth engine, while overseas business and the store network continue to scale rapidly.

(Image: POP MART Q2 report)

Highlights: revenue and profit beat; margins expanded markedly

For the first half, revenue was RMB 13.876 billion (+204.4% y/y), net profit attributable to owners RMB 4.574 billion (+396.5% y/y), and adjusted net profit RMB 4.710 billion (+362.8% y/y), all ahead of prior consensus. Management attributed the outperformance to hot-selling SKUs and channel expansion, which amplified both volume and ASP elasticity.

Profitability improved sharply: gross margin rose to 70.3% and adjusted net margin to 33.9%, both record highs. Drivers cited included higher overseas pricing versus the domestic market, a lower share of outsourced sourcing, and declining ratios of licensing and mold expenses.

Products & Regions: LABUBU leads; overseas acts as a growth “multiplier”

By product, LABUBU remained the dual engine for traffic and revenue. According to management, the LABUBU series generated about RMB 4.81 billion in 1H, accounting for ~34.7%; other IPs such as MOLLY and CRYBABY also crossed the “billion-yuan” threshold. Persistent blockbuster attributes, paced launches, and cross-over collaborations reinforced high sentiment and rapid inventory turns.

By region (first disclosed under a new split), revenue was: China RMB 8.28 billion (+135.2%), Asia-Pacific RMB 2.85 billion (+257.8%), Americas RMB 2.26 billion (+1142.3%), and Europe & others RMB 0.48 billion (+729.2%). As of Jun 30, POP MART operated 571 stores across 18 countries/regions; net adds in 1H included 40 physical stores and 105 ROBO SHOP vending units. The scaling of overseas stores and channels further optimized the “premium pricing × high margin” geographic mix.

Operations & Outlook: FY revenue may reach RMB 30bn; dual flywheels of categories and content

Chairman Wang Ning said FY2025 revenue is expected to be no less than RMB 30 billion, a notable lift from the initial RMB 20 billion target. The company will step up in North America—planning roughly 10 additional U.S. stores this year—while exploring the Middle East, Central Europe, and Latin America. Around LABUBU, mini charms and other peripherals will roll out to extend the blockbuster lifecycle and broaden shelf width across the IP portfolio.

Over the medium term, POP MART is also exploring content-driven avenues such as animation and themed spaces/parks. In the near term, however, “IP × retail network × overseas expansion” remains the core source of cash flow and profit, with content playing a brand-building and mindshare role.

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