March 25 (midday) – POP MART (HKEX: 9992) released its 2025 annual results: full-year revenue surged 184.7% year-on-year to RMB 37.12 billion (USD 5.16 billion), while net profit attributable to shareholders rose 308.8% year-on-year to RMB 12.776 billion (USD 1.77 billion). However, despite these striking financial figures, POP MART’s share price experienced a sharp correction over the following two trading days.
Concerns in the capital markets focused on two key points: first, the company’s guidance of “no less than 20% growth in 2026” was viewed as relatively conservative; second, investors worried that performance was overly reliant on the blockbuster IP LABUBU. In response to these concerns, POP MART’s management provided clear explanations at the 2025 annual results briefing. Luxe.CO summarises the discussion into four key takeaways:
I. Strategic positioning: Even an “F1 race car” needs pit stops—avoiding reckless growth that increases revenue without improving profits
II. Multi-pronged growth: The “gold mine” LABUBU enters the 4.0 era, while other IPs also demonstrate strong growth
III. Advancing global expansion: From “passive order surges” to refined restructuring
IV. Expanding boundaries: Advancing across multiple categories and business formats to achieve “Happy for All”
I. Strategic Positioning: Even an “F1 Race Car” Needs Pit Stops—Avoiding Reckless Growth That Increases Revenue Without Improving Profits
Regarding the “no less than 20%” growth guidance for 2026, Wang Ning, Chairman and CEO of POP MART, used an “F1 race car” metaphor to emphasise the company’s strategic focus on long-term, healthy growth rather than short-term bursts.
“We often say that 2025 is like a rookie driver being quickly pulled onto the F1 circuit. Although we are operating at extremely high speed, both as drivers and as a race car, we are under tremendous pressure. Nevertheless, the journey has been truly exciting.”
“However, throughout this process, we have identified many areas for improvement, whether in organisational management, cross-regional information integration, or collaboration between the middle and front offices. Looking back, 2025 was an exciting and rewarding year, but our focus is more on 2026. We hope that 2026 will be like an F1 race car entering the pit lane—to refuel and change tyres.“
Explaining the rationale behind the 20% growth target, Wang further elaborated on the company’s long-term operating philosophy:
“We aspire to become a company that approaches each year’s development and opportunities with a long-term strategic perspective. Therefore, the core strategic direction of the company is sustained and healthy growth. Growth remains extremely important to us. As a relatively young company founded just 15 years ago and soon entering its 16th year, we still have much to learn from outstanding enterprises around the world. Maintaining a solid growth rate is therefore essential. This year, we aim to achieve no less than 20% growth, but we will not pursue overly aggressive expansion that increases revenue without improving profitability. Ensuring the company’s long-term, steady, and healthy development remains our primary goal.”
II. Multi-Pronged Growth: The “Gold Mine” LABUBU Enters the 4.0 Era, While Other IPs Also Demonstrate Strong Growth
The financial report shows that in 2025, THE MONSTERS series—led by LABUBU—recorded revenue of RMB 14.161 billion (USD 1.97 billion), a year-on-year increase of 365.7%, contributing 38.1% of total revenue. In response to concerns over reliance on a single IP, management provided detailed data on the growth of other IPs and previewed LABUBU’s upcoming “4.0 era.”
Wang Ning noted, “LABUBU was extremely popular in 2025, achieving its best performance ever and driving the company’s overall development. However, I want to emphasise that POP MART is more than just LABUBU. Although its performance was outstanding last year, if LABUBU’s results were entirely excluded, we would still have achieved exceptionally rapid growth.”
According to calculations, even after completely excluding the contribution of THE MONSTERS series led by LABUBU, POP MART still achieved a 130% year-on-year growth in 2025.
Wang added, “I hope everyone will recognise our platform’s ability to operate multiple IPs. For example, SKULLPANDA and even DIMOO both experienced very rapid growth last year, exceeding our expectations. We are highly confident in the continued operation of our leading IPs and the incubation of new ones. Our platform-based operations and experience in IP management will continue to mature.”
“Returning to LABUBU, it is fortunate to have become a world-class IP, which is both rare and a valuable opportunity for us. I often compare it to a gold mine—its value has only just begun to be unlocked. With the continuous launch of new products and deeper integrated operations, its sustained value will continue to grow, and its lifecycle will be extended.”
Chu Yin, President of POP MART China, further substantiated this with data from the Chinese market:
“In the Chinese market, LABUBU’s sales contribution—including plush toys, blind boxes, and peripheral products—accounts for only about one-third of total sales. In other words, 70% of our sales are driven by multiple IPs and categories, which is a defining characteristic of our sustained growth.”
Regarding LABUBU’s future product and content roadmap, Chief Operating Officer Sid Si revealed key developments:
“We have many exciting products planned this year. First is the newly announced collaboration with the FIFA World Cup, which football fans will surely appreciate. During the FIFA World Cup in the United States, Canada, and Mexico this June, audiences will see LABUBU on the global stage.“
“In the second half of this year, we will launch two outstanding new series. The first will be what we internally consider the true ‘4.0 series.’ Last year’s Alphabet Series and the recently released Kitty and FIFA collaborations are not classified as 4.0 internally—the genuine 4.0 series will debut in the second half. The other series will be a major artist collaboration.”
“From a mid- to long-term perspective, our focus will be on content and offline park experiences. We aim to enrich LABUBU’s universe through diverse content and strengthen the emotional connection between fans and the IP. This year, we will republish Mr Kasing Lung’s first three picture books, while the fourth is in its final stages of preparation. The previously mentioned film project has now entered the scriptwriting phase. Through these initiatives, we hope to better present LABUBU’s universe.”
III. Advancing Global Expansion: From “Passive Order Surges” to Refined Restructuring
In 2025, POP MART’s overseas business (including Asia-Pacific, the Americas, Europe, and other regions) maintained rapid growth, generating total revenue of RMB 16.268 billion (USD 2.26 billion). The Americas market alone recorded a remarkable year-on-year increase of 748.4%. In response to the surge in demand, management acknowledged the supply chain and channel pressures brought by growth beyond expectations and outlined its restructuring strategy for overseas markets.
Wende Yi, Chief Growth Officer of POP MART, summarised the company’s global expansion:
“In terms of offline channels, 2025 marked a comprehensive upgrade aligned with our brand elevation strategy, reflected in three key dimensions. First, market entry: we entered five new countries—Denmark, Germany, Qatar, the Philippines, and Canada—and expanded into more than 30 renowned cities, including Berlin, Rome, Copenhagen, and Toronto. New stores were not only located in prime commercial districts but also strategically positioned in tourist destinations such as Pattaya, Chiang Mai, and Bali, as well as international hubs including Narita Airport in Japan and Hamad International Airport in Qatar, all delivering performance beyond expectations.”
“Second, experience renewal: we continued to advance the site selection and development of global flagship stores, launching two global flagships in Thailand and Australia in August and December, respectively, establishing national-level landmarks for trendy consumption.”
“Third, scenario expansion: our first overseas HIRONO-themed store opened in Bangkok in December. Centred on apparel, home goods, accessories, and lifestyle products, and integrated with HIRONO-themed coffee and beverages, the store offers a brand-new consumer experience, further expanding customer reach and IP influence.”
Addressing the closely watched North American market, Sid Si reviewed the operational pressures of the 2025 order surge and outlined future channel plans:
“We opened our first store in the second half of 2022, restructured the team in 2023, and formally accelerated operations in 2024, achieving revenue of over RMB 800 million. In 2025, our second year, revenue surged from over RMB 800 million to nearly RMB 7 billion, reflecting extremely rapid growth. However, under such high growth and the sudden popularity of our IPs, it was difficult to clearly gauge the market’s true demand.”
“The team worked extremely hard throughout the past year and faced tremendous pressure. We had allocated resources based on a budget of RMB 2 billion, yet achieved RMB 6.8 billion in revenue, placing enormous strain on talent reserves, systems, warehousing, and logistics.”
“Due to surging traffic last year, the capacity of our 50 to 60 offline stores was insufficient, forcing us to shift a large volume of products to online sales, resulting in an excessively high online proportion. In the long term, this is not our desired ratio. Going forward, we will continue opening new stores and adjust product allocation strategies, aiming for offline sales to slightly exceed online sales. There remains significant room for offline expansion—we have now opened 72 stores and expect to exceed 100 this year. If all proceeds smoothly, two flagship stores in Times Square and on Fifth Avenue in New York will open in the fourth quarter.”
IV. Expanding Boundaries: Advancing Across Multiple Categories and Business Formats to Achieve “Happy for All”
In 2025, POP MART’s product categories reached a historic turning point. The plush category recorded revenue of RMB 18.708 billion (USD 2.60 billion), a year-on-year increase of 560.6%, becoming the largest contributor to group revenue for the first time (50.4%). No longer limited to blind boxes and figurines, the company is expanding its commercial footprint into lifestyle and entertainment ecosystems.
Wang Ning described POP MART’s vision:
“Many outstanding consumer brands have achieved ‘Fashion for All,’ meeting the needs of the mass market. From the beginning, we defined our mission around ‘happiness,’ and we hope one day to achieve ‘Fun for All’ or ‘Happy for All.’ A key difference between us and many consumer brands is that when families visit our stores with their children, both parents and children can enjoy a satisfying shopping experience. This allows us to see the enormous market potential rooted in joy and beauty.”
“Next month, we will collaborate with JD.com to launch our small home appliance business, which is highly anticipated and will go on sale next month.”
At the same time, POP MART City Park and new offline formats are progressing steadily. Sid Si introduced the latest developments:
“In terms of new category expansion, we currently operate seven POPOP jewellery stores in China. Following trials at the park, the Thailand flagship store, and multiple pop-up locations, our dessert business will officially launch standalone offline stores in the first half of this year. After its debut in Shanghai, HIRONO’s themed store has also opened its first permanent location in Bangkok, Thailand.”
“The Phase 1.5 upgrade of the park is progressing smoothly and is expected to be completed this summer. Even with nearly half of the park temporarily closed, both visitor traffic and revenue have achieved rapid growth, far exceeding expectations, particularly with a significant increase in non-family visitors and tourists from outside the region. With a relatively small operating area, we have focused on service details and operational excellence, earning strong customer reviews and high repeat visitation rates.”
“Regarding expansion, Phase II of the park is currently in the detailed design stage and is expected to commence construction in 2027. The new phase will introduce immersive scenes featuring SKULLPANDA and MOLLY. We will focus on building around the IP universe, aiming to deliver a theme park with enhanced experiences, greater entertainment value, and deeper IP immersion.”
| Source: POP MART Annual Results Briefing
| Image Credit: POP MART Official Website
| Editor: Luxeplace
