Summary of Conference Call Notes Company Overview - The company discussed is Pop Mart, a leading player in the collectible toy industry, particularly known for its IP (Intellectual Property) products. Key Points Recent Performance and Growth - Pop Mart's stock increased by 7%, indicating a confirmed operational turning point, with a strong recommendation for continued investment [1] - The company held its annual meeting on February 6, revealing that sales volumes for LABUBU and total categories reached 100 million and 400 million units respectively, with over 700 global stores, surpassing market expectations [1] Product and IP Development - The SP* My Little Pony product received a record number of likes on Instagram, and its North American website is sold out, showcasing strong consumer interest [1] - The company has launched several hit products in 2026, including PUCKY and Starry People, which validate Pop Mart's decreasing reliance on single IPs and demonstrate its strong capability in IP "star-making" [1] Strategic Insights - Pop Mart has developed a mature methodology for IP incubation and promotion, with a broad and deep IP matrix that is expected to help the company mitigate trend risks and achieve steady performance growth [1] International Expansion - The company has opened over 700 stores globally, covering more than 100 countries, indicating potential for accelerated growth in overseas channels [2] - A new European headquarters will be established in the UK, aiming to launch products that are more aligned with local culture and customs, which is expected to enhance user engagement in the European and American markets [3] Additional Important Information - The company is focusing on diversifying its IP portfolio to reduce dependency on individual products, which is a critical strategy for long-term sustainability and growth in the competitive collectible toy market [1]

Summary of Company and Industry Insights Company: Pop Mart (泡泡玛特) Key Points 1. **Sales Performance** - Total sales volume across all categories exceeded 400 million units for the year - Sales volume of the Labubu single product reached over 100 million units, accounting for 25% of total sales [1] 2. **Global Store Expansion** - The company operates over 700 stores globally, with more than 200 located overseas [1] 3. **Membership Growth** - Global registered members surpassed 100 million, with nearly 60 million members in mainland China as of the first half of 2025 - Overseas members represent a smaller proportion compared to mainland China; 49% of new members are only familiar with Labubu 3.0 [1] 4. **Visitor Trends** - Visitor traffic to amusement parks increased by 77% year-on-year, with non-family visitors making up 59% of the total - Non-local visitors accounted for 58%, indicating a larger-than-expected potential customer base - Plans for a second phase of urban amusement parks are underway, potentially including amusement projects [1] 5. **Product Category Performance** - Plush toys have become the largest product category, accounting for approximately 40% of total sales - The category's share is expected to remain stable compared to the first half of 2025 [1] 6. **Supply Chain Development** - Six major supply chain bases have been established, creating 200,000 job opportunities - Compared to July 2024, overall production capacity is expected to increase by 2.5 times, with plush production capacity increasing by 7 times [2] 7. **Valuation Insights** - Current international valuation comparisons show favorable ratios, with the company in a growth phase enhancing its safety margin - Historical PE ratios for Disney and Sanrio range from 10-30 or 10-40 times, with below 10 times typically associated with significant internal IP failures or external economic shocks [2] 8. **Future Growth Potential** - The company is still in the early stages of growth, with competitive barriers being validated, suggesting a valuation safety margin better than 10x PE - China's cultural output is on an upward trajectory, increasing the likelihood of success for Pop Mart as it expands globally, similar to Japan's cultural success in the 1980s and Coca-Cola's global popularity in the 1950s-70s [2] 9. **Profit Forecast and Investment Recommendation** - The adjusted net profit for the company is projected to be approximately 17.4 billion RMB by 2026 - A valuation of 25 times earnings for 2026 suggests a market cap of 440 billion RMB or about 480 billion HKD, maintaining a buy rating [2] Additional Reports - Detailed reports referenced include: - "Pop Mart Deep Dive 3: The Flywheel Effect Has Formed, Moving Towards Greater Horizons" - "Pop Mart Initial Coverage Report: IP Expansion and Monetization Growth, Overseas Breakthroughs" - "Emotional Value Framework Report: Starting with Emotion, Ending with Sentiment, Respecting Time and Management" [2]

Market Overview - The Hong Kong stock market opened higher on February 10, with the Hang Seng Index rising by 0.65% to 27,202.96 points, the Hang Seng Tech Index up by 0.82% to 5,461.96 points, and the National Enterprises Index increasing by 0.64% to 9,226.56 points [1] - Major technology stocks saw gains, with Alibaba up 1.14%, Tencent Holdings up 0.54%, JD Group up 1.2%, Xiaomi up 0.85%, NetEase up 2.35%, and Kuaishou up 1.01% [1] - The new consumption concept stocks showed mixed results, with Pop Mart rising over 2% and Weilon falling over 2% [1] Corporate News - Pop Mart (09992.HK) expects global sales of all IP products to exceed 400 million units by 2025, with THE MONSTERS product line projected to sell over 100 million units [2] - Youjia Innovation (02431.HK) has secured a contract with a leading domestic automotive brand to provide several key products, including the iPilot 4 Plus driving controller and driver monitoring systems [2] - Ruifeng New Energy (00527.HK) signed an investment framework agreement to build the largest inference computing cluster park in North China, with a total investment of approximately RMB 240 billion [2] Earnings Forecasts - Hong Kong Telecom (06823.HK) reported a 5% increase in total revenue to HKD 36.553 billion for 2025, with EBITDA growing by 4% to HKD 14.234 billion and net profit attributable to shareholders increasing by 4% to HKD 5.286 billion [4] - China Nuclear International (02302.HK) anticipates revenue for 2025 to exceed HKD 2.46 billion, with gross profit expected to reach at least HKD 260 million, driven by increased uranium trading volumes [4][6] - Mingyuan Cloud (00909.HK) expects a net profit of approximately HKD 26.9 million to HKD 32.8 million for 2025, representing a growth of about 114% to 117% [4] - China Oriental Education (00667.HK) forecasts a 46% to 51% increase in net profit for 2025 [5] Market Dynamics - Several companies are actively repurchasing shares to boost market confidence, including Xiaomi Group-W (01810.HK), which repurchased 1.5 million shares for HKD 52.7268 million, and Geely Automobile (00175.HK), which repurchased 1.408 million shares for HKD 23.4587 million [8] - China Smart Energy (01004.HK) announced a share consolidation effective February 10, pending approval from the Stock Exchange [8] Institutional Insights - Galaxy Securities noted a significant "Spring Festival effect" in the Hong Kong market, with optimistic market sentiment and early capital positioning [10] - Dongwu Securities indicated that while short-term challenges remain, the market should be monitored for overseas risks and domestic AI catalysts [10] - Bank of China International believes that after the recent negative factors have subsided, market sentiment is at a low point, with potential rebounds in the AI multi-modal industry chain [10]

Group 1 - Tesla's Elon Musk announced that SpaceX is shifting focus to building a "self-sustaining city" on the Moon, with plans to initiate a Mars colonization project within the next 5-7 years [2] - Alphabet raised $20 billion through a bond issuance, exceeding the initial target of $15 billion, with over $100 billion in subscription orders [2] - TSMC plans to increase its investment in the Kumamoto plant in Japan to $17 billion for mass production of 3nm technology, marking a significant step in the semiconductor supply chain and geopolitical landscape [2] Group 2 - OpenAI's CEO Sam Altman reported strong growth, with ChatGPT's monthly growth rate surpassing 10%, and the launch of the new Codex model GPT-5.3-Codex [2][3] - Alibaba revealed its new model Qwen3.5, which features a novel mixed attention mechanism and is likely to be a vision-language model [3] Group 3 - Pop Mart aims to sell over 400 million products globally by 2025, with the THE MONSTERS product line expected to exceed 100 million units [5] - Zhongke Shuguang plans to raise up to 800 million RMB through convertible bonds for AI-related projects, including advanced computing systems and next-generation AI training machines [5] - 16 companies, including Meituan and JD, are receiving guidance from government departments to improve labor management and protect workers' rights [6] Group 4 - Nvidia's CEO Jensen Huang stated that AI infrastructure capital expenditures could exceed $600 billion by 2026 due to strong demand for computing power [8] - Apple's CEO Tim Cook emphasized that AI will be a core pillar for the future, acknowledging user feedback issues with Apple Intelligence [8] - Amazon's Q4 results showed increased capital expenditures impacting short-term profits, but AWS continues to grow strongly [9]

Investment Rating - The report assigns a positive investment rating to Pop Mart (9992.HK), indicating a favorable outlook for the company's growth and market position [4]. Core Insights - The market perception of Pop Mart is evolving from a "blind box company" to a "global IP full industry chain group," reflecting a significant transformation in its business model and market strategy [4]. - The report addresses key concerns regarding the extension of IP lifecycle, breakthrough in the North American market, and the transition of valuation systems [4]. Summary by Sections Q1: Sustainability of Labubu's Growth - Labubu's strong growth is deemed sustainable due to proactive product rhythm adjustments, supply chain optimization, and the promotion of an IP family strategy, transitioning from a phenomenon to a core IP [5]. - Healthy growth is characterized by a decline in secondary market prices, which is seen as a positive clearing rather than a collapse, laying the foundation for long-term growth [5]. Q2: Capability of Mass Producing "Medium IP" - The company has established an industrialized and replicable IP incubation system, enabling it to mass-produce medium-sized IPs [6]. - The new IP, represented by "Twinkle Twinkle," achieved revenue of 390 million yuan in the first half of 2025, complementing Labubu and ensuring continuous product iteration [6]. Q3: Growth Potential in North America - The North American market presents significant growth potential, driven by strategic store expansion and localized operations [7]. - Pop Mart plans to open approximately 270-550 stores in North America, with a focus on a multi-store network to enhance regional penetration [7]. Q4: Market Penetration in Europe - The European market is rapidly penetrating, with revenue reaching 478 million yuan in the first half of 2025, a year-on-year increase of 729% [8]. - The strategy emphasizes "cultural output" by collaborating with art landmarks and enhancing brand tone through localized marketing [8]. Q5: Progress in New Business Layouts - New business initiatives like POP BAKERY and POPOP are designed to extend consumption scenarios around IP, creating high-frequency consumption opportunities [9]. - POP BAKERY offers themed desserts priced between 39-199 yuan, while POPOP features luxury jewelry priced from 249-2699 yuan, enhancing customer value [9]. Q6: Performance Growth Outlook for 2026 - The company anticipates steady growth in 2026, with total revenue projected to reach 51 billion yuan and adjusted net profit of 18 billion yuan, driven by overseas market expansion and domestic store renewal strategies [10].

动作流畅有力，员工们连连称师。 年会上还总结了泡泡玛特过去一年的年度数据，全球员工伙伴超1万人，注册会员超1亿人，LABUBU 全年销量超1亿只，全品类全IP产品销量超4亿只，业务覆盖100+国家和地区，全球门店超700家。（来 源：大象新闻编辑：尚骏翼） 责任编辑：张恒星 2月6日，泡泡玛特2026年年会变身巨星派对，多位明星现身与泡泡玛特创始人王宁同台互动，引发热 议。 创始人王宁亲自在年会舞台表演了一段完整的咏春拳。 动作流畅有力，员工们连连称师。 年会上还总结了泡泡玛特过去一年的年度数据，全球员工伙伴超1万人，注册会员超1亿人，LABUBU 全年销量超1亿只，全品类全IP产品销量超4亿只，业务覆盖100+国家和地区，全球门店超700家。（来 源：大象新闻编辑：尚骏翼） 责任编辑：张恒星 2月6日，泡泡玛特2026年年会变身巨星派对，多位明星现身与泡泡玛特创始人王宁同台互动，引发热 议。 创始人王宁亲自在年会舞台表演了一段完整的咏春拳。 ...

Group 1 - The top three stocks with the highest short-selling ratios are New World Development Co. Ltd. (80016) at 100.00%, SenseTime Group Inc. (80020) at 80.12%, and Great Wall Motor Co. Ltd. (82333) at 75.14% [1][2] - The highest short-selling amounts are recorded for Xiaomi Corporation (01810) at 1.731 billion, Alibaba Group Holding Ltd. (09988) at 1.550 billion, and Meituan (03690) at 1.518 billion [1][3] - The top three stocks with the highest deviation values are New World Development Co. Ltd. (80016) at 44.46%, SenseTime Group Inc. (80020) at 35.88%, and China National Offshore Oil Corporation (80883) at 26.39% [1][3] Group 2 - The detailed short-selling ratio rankings show New World Development Co. Ltd. (80016) leading with a short-selling amount of 345,900 and a deviation value of 44.46% [2][3] - SenseTime Group Inc. (80020) follows with a short-selling amount of 257,500 and a deviation value of 35.88% [2][3] - Great Wall Motor Co. Ltd. (82333) has a short-selling amount of 70,700 and a deviation value of -3.29% [2] Group 3 - The short-selling amount rankings indicate Xiaomi Corporation (01810) at 1.731 billion with a short-selling ratio of 39.72% and a deviation value of 21.05% [3] - Alibaba Group Holding Ltd. (09988) has a short-selling amount of 1.550 billion with a short-selling ratio of 16.68% and a deviation value of 4.47% [3] - Meituan (03690) shows a short-selling amount of 1.518 billion with a short-selling ratio of 39.18% and a deviation value of 22.10% [3]

Group 1 - Major blue-chip stocks mostly rose, with HSBC Holdings closing at HKD 141.801, up 1.8% from the previous close [2] - Tencent Holdings closed at HKD 561.139, reflecting a 0.2% increase from the previous close [2] Group 2 - Tencent Holdings (00700) latest price is HKD 560.000, with an increase of HKD 12.500 or 2.28% [3] - Alibaba Group (09988) latest price is HKD 157.900, up HKD 2.900 or 1.87% [3] - HSBC Holdings (00005) latest price is HKD 139.300, up HKD 4.500 or 3.34% [3] - AIA Group (01299) latest price is HKD 86.350, up HKD 2.850 or 3.41% [3] - Meituan (03690) latest price is HKD 91.050, down HKD 0.350 or 0.38% [3] - China Ping An (02318) latest price is HKD 73.000, up HKD 3.400 or 4.89% [3] - Hong Kong Exchanges (00388) latest price is HKD 418.600, up HKD 11.000 or 2.70% [3] - Baidu Group (09888) latest price is HKD 142.200, up HKD 4.400 or 3.19% [3] - Kuaishou Technology (01024) latest price is HKD 69.300, down HKD 1.950 or 2.74% [3]

Group 1: Hang Seng Index (HSI) - The market is currently exhibiting a typical game of tug-of-war regarding the future direction of the Hang Seng Index, with some investors expecting the index to oscillate between 26,000 and 27,000 points [1] - The Hang Seng Index closed at 27,027 points, successfully reclaiming the 27,000 psychological level, and is positioned above the middle band of the Bollinger Bands on the daily chart [1] - Short-term key support is around 26,500 points, while major resistance is at 27,500 points, creating a core oscillation range of approximately 500 points [2] Group 2: Bubble Mart (09992.HK) - Investors are closely monitoring Bubble Mart for a potential new upward trend, with key resistance identified at 276 HKD [7] - The stock has rebounded from recent lows, reaching a high of 264 HKD during the day, and closed at 257 HKD, near the upper band of the Bollinger Bands [7] - Despite the bullish price action, short-term technical signals are predominantly "sell," indicating a potential for technical consolidation or pullback [7] Group 3: Semiconductor Manufacturing International Corporation (00981) - Market attention on Semiconductor Manufacturing International Corporation has increased ahead of earnings reports, with some investors adopting a mixed strategy of buying bear certificates for hedging [13] - The stock price has rebounded to 70.3 HKD, needing to overcome a short-term resistance at 74.9 HKD to target a second resistance at 79.2 HKD [13] - Current technical signals show a slight edge towards "buy," but caution is advised due to the potential for significant price volatility around earnings announcements [13] Group 4: Zijin Mining (02899.HK) - There are concerns regarding Zijin Mining's stock price, which has risen significantly on increased trading volume, leading some investors to buy put options as a hedge [17] - The stock closed above the middle band of the Bollinger Bands, but the prevailing market sentiment remains cautious, with "sell" signals dominating [17] - Key support is at 38.7 HKD, and if breached, the stock may further decline to 35.4 HKD [17] Group 5: Meituan (03690.HK) - Meituan's stock has drawn attention for potential technical rebounds following forced liquidations of bull certificates around the 89 HKD mark [20] - The stock closed at 91.05 HKD, maintaining a position above the psychological 90 HKD level, with increased trading volume during the decline [20] - Technical signals suggest a "buy" bias, indicating a possible rebound, with initial resistance at 95.6 HKD [20] Group 6: HSBC Holdings (00005.HK) - HSBC Holdings showcases diverse market expectations ahead of its earnings report, with opinions split between bullish and bearish scenarios [26] - The stock closed at 139.5 HKD, nearing the 140 HKD mark, with technical signals leaning slightly towards caution, showing more "sell" signals [26] - The anticipated trading range is between 134.4 HKD support and 143.4 HKD resistance, reflecting significant divergence in investor sentiment [26]

Core Viewpoint - Pop Mart (09992) announced that by 2025, the global sales of its entire IP and product categories will exceed 400 million units, with THE MONSTERS category alone expected to surpass 100 million units [1] Group 1 - The company aims for significant growth in global sales, targeting over 400 million units by 2025 [1] - THE MONSTERS product line is projected to achieve sales exceeding 100 million units [1]