Market Overview - The Hang Seng Index (HSI) closed at 26,253.57, up by 125.37 points or 0.48% as of September 26, 16:00 [1] - The index reached a high of 26,319.20 and a low of 26,156.64 during the trading session, with a trading volume of 63.71 million [1] Major Blue-Chip Stocks Performance - HSBC Holdings closed at HKD 108.633, an increase of 1.081% from the previous close [2] - Tencent Holdings closed at HKD 648.733, up by 0.73% compared to the last trading session [2] ADR Performance Summary - Tencent Holdings (ADR: TCEHY) increased by HKD 4.733, or 0.73% [3] - Alibaba Group (ADR: BABA) rose by HKD 0.672, or 0.40% [3] - HSBC Holdings (ADR: HSBC) saw an increase of HKD 1.933, or 1.81% [3] - Xiaomi Group (ADR: XIACY) gained HKD 0.584, or 1.07% [3] - AIA Group (ADR: AAGIY) increased by HKD 0.222, or 0.31% [3] - Meituan (ADR: MPNGY) rose by HKD 0.534, or 0.53% [3] - Ctrip Group (ADR: TCOM) increased by HKD 8.120, or 1.39% [3] - JD.com (ADR: ID) rose by HKD 1.696, or 1.28% [3]

Core Viewpoint - The collectible card market in China is entering a monetization phase, with companies like Hitcard and established players like 卡游 (Kaworld) pushing for IPOs and significant growth in revenue and market presence [1][3]. Company Overview - Hitcard, founded in 2021, focuses on adult collectible cards and has received multiple rounds of funding from notable investors including 泡泡玛特 (Pop Mart), 红杉中国 (Sequoia China), and 阅文集团 (Yuewen Group) [1]. - After a significant investment from Yuewen Group, Hitcard has access to over 1,000 IPs and offline channel resources, enhancing its market position [1]. - In 2024, Hitcard's collaboration on the 《庆余年》 card series generated a GMV of 20 million RMB [2]. Financial Performance - Hitcard achieved approximately 400 million RMB in revenue last year, marking a year-on-year growth of over 600%, with expectations for another 100% growth this year [2]. - The company has already reached profitability, indicating a strong business model and market demand [2]. Market Comparison - Despite Hitcard's growth, it still lags behind the market leader, 卡游, which holds a 71.1% market share and reported revenues of 10.057 billion RMB in 2024 [3]. - The top five companies in the collectible card market account for 82.4% of the total market share, highlighting the competitive landscape [3]. Market Potential - Current spending on collectible cards in China is significantly lower than in developed countries, with per capita spending at 18.7 RMB compared to 119.3 RMB in Japan and 64.0 RMB in the U.S., suggesting substantial growth potential [3]. - The Chinese collectible card market is projected to reach 44.6 billion RMB by 2029, with a compound annual growth rate of 11.1% from 2024 to 2029, indicating a sustained high demand [3].

Core Insights - The secondary market for the Labubu toy is experiencing a significant downturn, with resale prices dropping by half or more, leading to panic-selling among scalpers [2][3] - Pop Mart, the company behind Labubu, views the market crash as a positive development, emphasizing their focus on making art accessible rather than catering to profit-driven resellers [2][3] - The company aims to shift towards a more sustainable business model, moving away from promoting high resale prices that can alienate genuine customers [3][4] Company Strategy - Pop Mart's strategy includes fostering a connection between consumers and the art of their products, rather than encouraging speculative purchases [2][3] - The company acknowledges that a market driven solely by profit is unsustainable and detrimental to long-term customer relationships [3] - The shift in strategy is intended to prevent the company from becoming a "one-hit wonder" and to ensure lasting popularity and customer loyalty [4] Market Dynamics - The initial surge in resale prices significantly boosted the popularity of Labubu, but this model is deemed unhealthy for long-term growth [4] - The company is now focusing on creating a stable market environment that prioritizes genuine customer engagement over speculative trading [3][4]

Core Points - The Beijing Haidian District Market Supervision Administration has cracked down on a retail store selling products that allegedly infringe on the registered trademark rights of "Pop Mart" [1] - The investigation was initiated based on consumer reports, leading to the discovery of multiple blind boxes and plush accessories marked with "POP MART" and "THE MONSTERS" that closely resembled genuine products [1] - The infringing products were confirmed to be unauthorized and of inferior quality, lacking proper anti-counterfeiting measures [1] Summary by Sections Trademark Infringement Case - The involved merchant purchased the infringing products from unofficial online channels and sold them at prices lower than the genuine products [1] - The Haidian District Market Supervision Administration imposed administrative penalties, including confiscation of all infringing goods and fines, and ordered the merchant to cease infringement activities [1] - Confiscated infringing products will be destroyed, and investigations will trace back to the upstream suppliers [1] Consumer Awareness and Protection - The Market Supervision Administration has reminded consumers that "Pop Mart" products have high market recognition, and infringing products often have poor material quality and craftsmanship, posing potential health risks [2] - Consumers are encouraged to report suspected infringing products by calling hotlines 12315 or 12345 to help maintain a fair market environment [2] - Retailers are advised to strictly comply with trademark laws and refrain from purchasing or selling unauthorized products [2]

Group 1: Hang Seng Index (HSI) - Investors believe that the strong support level is at 26,400, holding bull certificates with a redemption price of 25,900. Bearish investors expect a drop to 26,050, holding bear certificates with a redemption price of 27,078 [1] - Technical signals indicate a "sell" recommendation, with support levels at 25,800 and 25,400, while resistance is at 26,900. There are numerous bull certificates near the redemption price of 25,400, with leverage exceeding 21 times [1] - Investors are advised to compare product terms carefully, as some products with higher redemption prices may offer lower leverage and higher premiums, making them less attractive [1] Group 2: Pop Mart (09992.HK) - Investors are inquiring about the possibility of bull certificates dropping to 250 HKD, while others are optimistic about a rise to 268 HKD, holding bull certificates with a redemption price of 240 HKD [8] - The stock price rose to 261.8 HKD, with support identified at 247 HKD. The technical signal is a "buy," with resistance at 283 HKD [8] - Investors are cautioned against short-term products expiring between October and December due to significant time value decay, while longer-term products may offer better leverage [8] Group 3: Zijin Mining (02899.HK) - The stock price has been rising, reaching a high of 31.62 HKD, approaching the upper limit of the Bollinger Bands. Resistance levels are at 32.9 HKD and 33.8 HKD, with a short-term signal indicating a "sell" [15] Group 4: Contemporary Amperex Technology (03750.HK) - The stock price closed at 532 HKD, with a high of 535.5 HKD, nearing the upper limit of the Bollinger Bands. The first resistance level is at 558 HKD, with a potential second resistance at 604 HKD [21] - Investors are advised to consider products with exercise prices between 560-590 HKD, which have lower premiums and higher probabilities of moving from out-of-the-money to in-the-money [21] Group 5: Li Auto (02015.HK) - The stock price has surpassed 100 HKD, closing at 102 HKD, with technical signals indicating a "buy." Resistance levels are at 106 HKD and 110 HKD, with a target of 120 HKD [26] Group 6: AAC Technologies (02018.HK) - The stock has been declining, and the short-term trend is a "sell." Investors looking for entry points should exercise patience, with support levels at 44.2 HKD and 41.1 HKD [31]

Core Insights - Recent surge in gold prices, with spot gold exceeding $3720 per ounce on September 22, leading to increased interest in gold as a value preservation asset [1] - Pop Mart is entering the jewelry market, targeting a market valued at 778.8 billion yuan, with its jewelry brand Popop [1] Company Developments - Popop launched a gold jewelry collection featuring its popular IP, Baby Molly, including items like beads, pendants, and gold bars [1] - Initial sales performance is promising, with noticeable increases in foot traffic and sales at Popop's stores in Shanghai and Beijing within three days of opening [1] Market Trends - Popop's gold jewelry is priced at a premium, with a 0.7-gram heart bead selling for 1380 yuan, approximately 2000 yuan per gram, which is 25% higher than similar products from traditional gold retailers [1] - Despite the high prices, younger consumers are showing interest in "IP gold jewelry," indicating a shift in purchasing behavior from traditional gold to themed jewelry [1] Consumer Behavior - Concerns exist regarding the sustainability of interest in Popop's products, as previous releases from the LABUBU brand saw a decline in popularity after initial excitement [1] - The effectiveness of combining IP branding with gold jewelry to attract the 90s and 00s generation, who are now the main consumers of gold, remains to be seen [1]

Market Overview - The Hang Seng Index closed at 26,404.18, down by 80.50 points or 0.30% on September 25 [1] - The index reached a high of 26,430.39 and a low of 26,319.63 during the trading session, with a trading volume of 66.046 million shares [1] Major Stocks Performance - HSBC Holdings closed at HKD 107.287, up by 0.17% compared to the previous close [2] - Tencent Holdings closed at HKD 648.343, down by 0.25% compared to the previous close [2] - Alibaba Group (W) saw a decline of 1.15%, closing at HKD 172.000 [3] - China Construction Bank dropped by 2.28%, closing at HKD 7.300 [3] - Xiaomi Group (W) increased by 4.48%, closing at HKD 59.450 [3] ADR Performance - Tencent's ADR price was USD 648.343, reflecting a decrease of 0.25% compared to its Hong Kong stock price [3] - Alibaba's ADR price was USD 170.695, down by 0.76% compared to its Hong Kong stock price [3] - HSBC's ADR price was USD 107.287, showing an increase of 0.17% compared to its Hong Kong stock price [3]

Core Viewpoint - The recent surge in spot gold prices has led to increased consumer interest in gold investments, prompting companies like Pop Mart to enter the gold jewelry market with their Popop brand, leveraging their Baby Molly IP to attract customers [1][2]. Group 1: Market Context - Spot gold prices have reached historical highs, influencing consumer psychology towards gold as a valuable investment [1]. - The Chinese潮玩 (trendy toy) market is projected to grow from 727 billion yuan in 2024 to 911 billion yuan by 2028, while the jewelry market is significantly larger, estimated at 778.8 billion yuan in 2024 [2]. Group 2: Product Launch and Strategy - Popop's gold series includes products like gold beads and pendants, priced between 980 yuan and 6,800 yuan, catering to various consumer budgets [2]. - The pricing strategy for Popop's products is based on a "one-price" model, which may limit price-sensitive consumers' willingness to purchase [3]. Group 3: Competitive Landscape - Popop's average price per gram for gold products is approximately 25% higher than that of traditional brands like Lao Pu Gold, which may affect its market competitiveness [3]. - Industry experts express mixed opinions on Popop's pricing strategy, with some suggesting it could deter price-sensitive buyers, while others believe it could leverage the rising gold prices to gain market traction [3]. Group 4: Industry Trends and Future Outlook - The jewelry market presents significant growth potential, with a focus on cross-industry collaborations and IP partnerships to create popular products [5]. - Pop Mart's entry into the gold jewelry sector aligns with the trend of younger consumers, particularly those born in the '90s and '00s, becoming the main demographic for gold purchases [6]. - The company has been actively expanding its global presence, opening several flagship stores in 2025, indicating a commitment to enhancing customer experience [7].

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential details about the company's governance structure and contact information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the composition of the company's Board of Directors (including executive, non-executive, and independent non-executive directors) and its Remuneration, Nomination, and Audit Committees - Executive Directors include Mr. Wang Ning (Chairman of the Board), Ms. Liu Ran, Mr. Si De, and Mr. Wen Dey[3](index=3&type=chunk) - Independent Non-Executive Directors include Mr. Zhang Jianjun, Mr. Wu Liansheng, and Mr. Yan Jinliang[3](index=3&type=chunk) - Mr. Zhang Jianjun chairs the Remuneration Committee, Mr. Wang Ning chairs the Nomination Committee, and Mr. Wu Liansheng chairs the Audit Committee[3](index=3&type=chunk)[4](index=4&type=chunk) [Company Contact Information](index=4&type=section&id=Company%20Contact%20Information) This section provides detailed contact information for the company's headquarters and principal places of business (Beijing, China; Hong Kong), share registrar, principal bankers, legal advisors, and auditors - The company's headquarters are located on the 36th and 37th floors, Tower A, POSCO Center, Hongtai East Street, Dawangjing Science and Technology Business Park, Chaoyang District, Beijing, China[5](index=5&type=chunk)[7](index=7&type=chunk) - The principal place of business in Hong Kong is on the 19th floor, Golden Centre, 188 Des Voeux Road Central[5](index=5&type=chunk)[7](index=7&type=chunk) - Principal bankers include Industrial and Commercial Bank of China, Bank of Communications, and China Minsheng Bank[6](index=6&type=chunk)[7](index=7&type=chunk) - The auditor is PricewaterhouseCoopers[8](index=8&type=chunk)[9](index=9&type=chunk) - The company's stock code is **9992**[9](index=9&type=chunk) [Financial Summary](index=6&type=section&id=Financial%20Summary) In the first half of 2025, the company achieved substantial growth in revenue, gross profit, operating profit, and profit for the period, with significant improvements in gross margin and net profit margin, alongside an increase in total assets and total equity Key Financial Data for H1 2025 (Unaudited) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 13,876,276 | 4,557,831 | 204.4% | | Gross Profit | 9,761,064 | 2,919,105 | 234.4% | | Operating Profit | 6,043,741 | 1,126,417 | 436.5% | | Profit for the Period | 4,681,713 | 964,142 | 385.6% | | Profit Attributable to Owners of the Company | 4,574,368 | 921,333 | 396.5% | | Non-IFRS Adjusted Net Profit | 4,709,630 | 1,017,625 | 362.8% | | Gross Margin | 70.3% | 64.0% | +6.3pp | | Net Profit Margin | 33.7% | 21.2% | +12.5pp | | Non-IFRS Adjusted Net Profit Margin | 33.9% | 22.3% | +11.6pp | Key Balance Sheet Data | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 3,506,097 | 2,634,591 | | Current Assets | 17,850,582 | 12,236,081 | | Total Assets | 21,356,679 | 14,870,672 | | Total Equity | 14,429,574 | 10,884,639 | | Non-current Liabilities | 1,003,907 | 616,005 | | Current Liabilities | 5,923,198 | 3,370,028 | | Total Liabilities | 6,927,105 | 3,986,033 | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive overview of the company's operational and financial performance, strategic initiatives, and future outlook [Business Review](index=7&type=section&id=Business%20Review) The company achieved significant revenue growth in the first half of 2025, driven by IP operations, product R&D, channel expansion, and internationalization strategies, with several core IPs performing strongly and plush products becoming a phenomenal hit - The company was named one of TIME Magazine's **2025** 'Global **100** Most Influential Companies' for the first time[12](index=12&type=chunk)[15](index=15&type=chunk) - Revenue reached **RMB 13,876.3 million** in the first half of **2025**, a **204.4%** year-on-year increase[13](index=13&type=chunk)[15](index=15&type=chunk) - China market revenue was **RMB 8,282.8 million**, growing by **135.2%** year-on-year[13](index=13&type=chunk)[15](index=15&type=chunk) - Asia-Pacific revenue was **RMB 2,850.9 million**, growing by **257.8%** year-on-year[13](index=13&type=chunk)[15](index=15&type=chunk) - Americas revenue was **RMB 2,264.9 million**, growing by **1,142.3%** year-on-year[13](index=13&type=chunk)[15](index=15&type=chunk) - Europe and other regions revenue was **RMB 477.7 million**, growing by **729.2%** year-on-year[13](index=13&type=chunk)[15](index=15&type=chunk) [IP Incubation and Operation](index=7&type=section&id=IP%20Incubation%20and%20Operation) Through differentiated operational strategies, the company continuously enhanced IP popularity and commercialization, successfully creating multiple popular trendy culture IPs, with LABUBU becoming a global hit and core IPs like MOLLY, SKULLPANDA, CRYBABY, and DIMOO also performing strongly - In the first half of **2025**, **13** artist IPs generated over **RMB 100 million** in revenue[18](index=18&type=chunk)[21](index=21&type=chunk) - **THE MONSTERS** (including **LABUBU**) generated **RMB 4,814.0 million** in revenue, **MOLLY** **RMB 1,357.2 million**, **SKULLPANDA** **RMB 1,220.5 million**, **CRYBABY** **RMB 1,218.2 million**, and **DIMOO** **RMB 1,105.1 million**[18](index=18&type=chunk)[21](index=21&type=chunk) - **LABUBU** became one of the most popular global IPs in the first half of **2025** through its 'High Energy Ahead' and 'Strange Flavor Convenience Store' figurine series[19](index=19&type=chunk)[22](index=22&type=chunk) - **MOLLY** maintained strong vitality through premiumization strategies with ANGRY **MOLLY**, BABY **MOLLY** 'Pocket Friends', and ROYAL **MOLLY** and SPACE **MOLLY**[20](index=20&type=chunk)[23](index=23&type=chunk) - Plush product revenue reached **RMB 6,139.2 million**, a **1,276.2%** year-on-year increase, accounting for **44.2%** of total revenue, becoming a phenomenal hit[33](index=33&type=chunk)[35](index=35&type=chunk) - **MEGA COLLECTION** generated **RMB 1,007.1 million** in revenue in the first half, accounting for **7.3%** of total revenue, and opened premium collection stores in Chengdu SKP and Beijing SKP-S[37](index=37&type=chunk)[40](index=40&type=chunk) [Consumer Access](index=11&type=section&id=Consumer%20Access) The company continues to expand its offline and online channels globally, increasing the number of stores and robot stores, improving online platform operational efficiency, and steadily growing its membership base and activity - As of June **30**, **2025**, the company operated **571** stores (net increase of **40**) and **2,597** robot stores (net increase of **105** units) globally[38](index=38&type=chunk)[41](index=41&type=chunk) - The number of stores in mainland China increased from **431** to **443** (net increase of **12**), and robot stores increased by **213** units[42](index=42&type=chunk)[44](index=44&type=chunk)[70](index=70&type=chunk) - The number of stores in the Americas increased from **22** to **41** (net increase of **19**)[42](index=42&type=chunk)[44](index=44&type=chunk) - Online channels (POP MART Draw Box Machine, Tmall, Douyin, JD.com) showed strong sales growth, ranking **first in industry sales** on Tmall, Douyin, and JD.com platforms during the **6.18** shopping festival[43](index=43&type=chunk)[

Core Insights - The Chinese潮玩盲盒 industry has experienced a decline in financing activity in recent years, with a peak of 17 financing events in 2021, dropping to only 2 events in 2024, but showing a slight recovery with 7 events from January to August 2025 [1][2] - The financing amounts have also fluctuated, peaking at 1.36 billion yuan in 2021, but dropping to 60 million yuan in 2024, with 283 million yuan raised in the first eight months of 2025 [2] - The industry is currently in a growth phase, primarily driven by A-round and angel investments, with a total of 30 A-round and 26 angel/seed round financing events [5] - Financing activities are concentrated in major cities such as Shanghai, Beijing, and Zhejiang, with Shanghai leading at 20 events, followed by Zhejiang with 16 and Beijing with 14 [6][8] - The investment focus is predominantly on cultural brands, which account for 54% of the investments, while trendy toys represent 35% [12] - The main investors in the潮玩盲盒 industry are investment firms, with notable participants including Sequoia Seed Fund and Alibaba Entrepreneur Fund, while operational companies like泡泡玛特 and 小红书 also play a role [15] - The industry is witnessing active mergers and acquisitions, with major players like Tencent,泡泡玛特, and万达电影 expanding their market presence through strategic acquisitions [17][19] Financing Trends - The潮玩盲盒 industry is in a growth phase, with A-round and angel investments being the primary focus [5] - The most frequent investment locations are Beijing and Shanghai, followed by Zhejiang [20] - Cultural brands are the main investment hotspots in the潮玩盲盒 sector [20] Mergers and Acquisitions - Large enterprises have a competitive advantage in mergers and acquisitions, with companies like Tencent and泡泡玛特 actively pursuing deals to expand their business footprint [20] - Recent acquisitions include strategic investments by阅文集团 in the毛绒潮玩 brand and万达电影's investment in52TOYS, enhancing their IP development capabilities [19]