On March 20th, POP MART, a trendy toy company based in Beijing and listed on the Hong Kong Stock Exchange under the ticker 9992, announced its full-year performance for 2023: Revenue grew by 36.5% year-on-year to RMB 6.301 billion, and profitability increased steadily with operating profit soaring by 128.8% year-on-year to RMB 1.089 billion. Net profit attributable to the parent company jumped by 127.5% year-on-year to RMB 1.082 billion, setting new records for both revenue and net profit.
As the company accelerates its internationalization, changes have occurred in its internal organizational structure. POP MART is now divided into two reporting segments: The Chinese Mainland business, and Hong Kong, Macau, Taiwan, and overseas business.
In 2023, the revenue from the Chinese Mainland business increased by 35.6% year-on-year to RMB 5.81 billion. The Hong Kong, Macau, Taiwan, and overseas business performed even better, with revenue reaching RMB 1.066 billion, a significant increase of 134.9% year-on-year, accounting for 16.9% of total income. This marked the first time this segment surpassed the RMB 1 billion milestone.
For the Hong Kong, Macau, Taiwan, and overseas business, offline channels were a key engine for rapid growth: sales in these channels rose from RMB 151 million to RMB 640 million, an increase of 324.7% year-on-year.
As of December 31, 2023, POP MART had 80 stores (including joint ventures) in Hong Kong, Macau, Taiwan, and overseas, and 159 robot stores (including joint ventures and franchises). In 2023, POP MART opened its first offline stores in France, Malaysia, Thailand, and the Netherlands, and in December, opened the world’s third flagship store in Ximending, Taiwan, setting a new sales record for global stores on its opening day.
IP operation and creative design remain key factors driving POP MART’s development.
The financial report revealed that in 2023, there were 10 artist IPs with revenues exceeding RMB 100 million each, with SKULLPANDA and MOLLY each surpassing RMB 1 billion in revenue, at RMB 1.025 billion and RMB 1.02 billion respectively, and DIMOO exceeding RMB 500 million with RMB 738 million.
The group’s in-house design team, PDC (Pop Design Center), also saw strong performances from several IPs in 2023, with Xiao Ye‘s revenue increasing by 149.5% year-on-year to RMB 351 million.
Moreover, as part of POP MART’s effort to promote art toys, the high-end product line MEGA Collection launched its first ceramic trendy toy, MEGA SPACE MOLLY 1000% Pure Flame·Burning, in 2023. It also collaborated with renowned brands from different fields such as CLOT and Lamborghini, achieving a total revenue of RMB 682 million for the MEGA Collection series in 2023.
Looking ahead, Wang Ning, the founder and CEO of POP MART, revealed that the revenue growth rate for the first quarter of this year is higher than that of last year, with an expected overall increase of more than 30% for 2024, and overseas growth expected to exceed 100%.
As of the close of March 20th, POP MART’s stock price had risen by 7.39% to HK$24.7 per share, with a total market value of HK$33.2 billion.
| Source: POP MART financial report
| Image Credit: POP MART official website
| Editor: LeZhi
