港股泡泡玛特盘中一度创历史新高，最高报171.9港元/股。 ...

Core Insights - POP MART International Group reported a revenue of 13.04 billion RMB for the full year of 2024, marking a year-on-year increase of 106.9%, and an adjusted net profit of 3.4 billion RMB, up 185.9% from the previous year [1] Revenue Breakdown - Revenue from Mainland China was 7.97 billion RMB, reflecting a year-on-year growth of 52.3% [2] - Revenue from markets outside Mainland China, including Hong Kong, Macao, and Taiwan, reached 5.07 billion RMB, up 375.2% year-on-year [2][6] Intellectual Property Performance - The IP operation system achieved maturity with four key properties generating over 1 billion RMB in revenue [3] - Revenue from 13 other IPs surpassed 3 billion RMB, showcasing significant growth [3] - HIRONO alone achieved revenue of 730 million RMB, reflecting year-on-year growth of 106.9% [4] Business Expansion - The company opened its first brick-and-mortar outlets in Vietnam, Indonesia, the Philippines, Italy, and Spain, expanding its global footprint [7] - The number of brick-and-mortar stores grew to 130, while ROBOSHOPs increased to 192 [6] Product Lineup and Revenue Categories - Annual revenue from figures reached 6.94 billion RMB, up 44.7%, while plush toys saw explosive growth with revenue of 2.83 billion RMB, up 1289% year-on-year [8] - The MEGA COLLECTION brand generated revenue of 1.68 billion RMB, an increase of 146.1% year-on-year [8] Operational Efficiency - The gross profit margin hit a record 66.8%, up by 5.5 percentage points from 61.3% in 2023 [9] - Inventory turnover days decreased from 133 days in 2023 to 102 days in 2024, indicating enhanced operational capabilities [9]

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 13,037,749 thousand, a 106.9% increase compared to RMB 6,301,002 thousand in 2023[3] - Gross profit for the same period was RMB 8,707,765 thousand, reflecting a 125.4% growth from RMB 3,864,071 thousand in the previous year[3] - Operating profit surged to RMB 4,154,272 thousand, marking a 237.6% increase from RMB 1,230,646 thousand in 2023[3] - Profit attributable to owners of the company was RMB 3,125,473 thousand, up 188.8% from RMB 1,082,344 thousand in 2023[3] - Basic earnings per share increased to RMB 2.36, a 191.4% rise compared to RMB 0.81 in the previous year[5] - The company reported a net profit before tax of RMB 4,365,812 thousand, a 208.4% increase from RMB 1,415,755 thousand in 2023[4] - The total comprehensive income for the year was RMB 3,460,496 thousand, compared to RMB 1,163,877 thousand in 2023[5] - The net profit for the year was RMB 3,308,345 thousand, significantly higher than RMB 1,088,771 thousand in the previous year, representing an increase of approximately 203.5%[21] Assets and Equity - Total assets as of December 31, 2024, amounted to RMB 14,870,672 thousand, compared to RMB 9,968,863 thousand in 2023[6] - Total equity attributable to owners of the company was RMB 10,683,505 thousand, up from RMB 7,769,927 thousand in 2023[7] - Cash and cash equivalents increased significantly to RMB 6,109,017 thousand from RMB 2,077,927 thousand in the previous year[6] Revenue Breakdown - Revenue from Mainland China business amounted to RMB 7,972,074 thousand, up from RMB 5,234,901 thousand in the previous year, reflecting a growth of about 52.5%[22] - Revenue from Hong Kong, Macau, Taiwan, and overseas business was RMB 5,065,675 thousand, compared to RMB 1,066,101 thousand in 2023, indicating a remarkable increase of approximately 376.5%[22] - Retail store sales revenue in Mainland China reached RMB 3,827,861 thousand, up from RMB 2,661,009 thousand in 2023, reflecting a growth of approximately 43.8%[22] - Online sales revenue in Mainland China increased to RMB 2,697,619 thousand from RMB 1,524,578 thousand, representing a growth of about 77.0%[22] Costs and Expenses - The total cost of sales for the year ended December 31, 2024, was RMB 3,474,213,000, an increase of 70.5% compared to RMB 2,042,672,000 in 2023[23] - Employee benefits expenses rose to RMB 1,462,406,000 in 2024, up 39.5% from RMB 1,048,487,000 in 2023[23] - The income tax expense for 2024 was RMB 1,057,467,000, significantly higher than RMB 326,984,000 in 2023, indicating a rise of 223.5%[25] - General and administrative expenses increased from RMB 707.3 million in 2023 to RMB 947.1 million in 2024, a rise of 33.9%[83] Shareholder Information - The total dividend proposed for 2024 is RMB 373,025,000, which is a substantial increase from RMB 117,317,000 in 2023, representing a growth of 217.5%[33] - The proposed final dividend is RMB 0.8146 per share, amounting to a total of RMB 1,093.9 million based on the current issued share capital of 1,342,943,150 shares[111] - The company repurchased 4,700,000 shares in 2024 at a total cost of approximately RMB 78,031,000, compared to 19,947,000 shares repurchased in 2023 for about RMB 333,709,000[41] Market Expansion and Strategy - The company plans to allocate approximately HKD 1,734.5 million (30.0% of net proceeds) for consumer outreach and overseas market expansion[109] - Future business expansion will focus on North America, Southeast Asia, and Europe, enhancing brand experience through new physical stores[107] - The company aims to deepen collaborations with artists and cross-industry brands to enrich its product matrix and promote cultural integration[107] Operational Highlights - The number of offline stores in mainland China increased by 38, from 363 as of December 31, 2023, to 401 by December 31, 2024[56] - The company opened its first offline stores in five countries, including Vietnam and Indonesia, enhancing international market presence[60] - The city theme park launched in September 2023 has optimized service experiences and created immersive environments for fans[62] IP and Product Development - The IP "THE MONSTERS" generated revenue of RMB 3,040.7 million, with a year-on-year growth of 726.6%[48][49] - The IP "MOLLY" achieved a revenue increase of 105.2% year-on-year, showcasing its enduring popularity[50] - The IP "CRYBABY" experienced a remarkable revenue growth of 1,537.2% year-on-year[51] - The company successfully launched multiple new IPs and product lines, enhancing brand recognition and market competitiveness[47][48] Compliance and Governance - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period, except for a deviation regarding the separation of roles between the Chairman and CEO[114] - The Chairman and CEO positions are held by the same individual, Wang Ning, which the board believes does not undermine the balance of power and authority within the company[115]

Core Insights - TOP TOY, a潮玩 brand under Miniso, plans to open over 1,000 stores globally in the next five years, with more than 50% of sales expected to come from overseas markets [3][5] - The company has allocated a reserve fund of 10 billion RMB to support its expansion, with a focus on flagship stores in major global shopping districts [3][4] - TOP TOY aims to position itself as a "super factory" for IP-related products, collaborating with various global and local IPs [4][5] Expansion Plans - The company plans to open 150 new stores in China by 2025, with 100 of those in major cities [3][5] - Currently, TOP TOY operates nearly 280 stores across over 80 cities in China, with plans to expand to 500-700 stores in the country [3][5] - TOP TOY has already opened five stores in Southeast Asia, with some achieving rapid profitability [6] Financial Performance - In the first three quarters of 2024, TOP TOY generated 700 million RMB in revenue, a 42.5% increase year-on-year, contributing approximately 5.7% to Miniso's total revenue [5][6] - The company's revenue for 2023 was 680 million RMB, up from 429 million RMB in 2022 [5][6] - TOP TOY's growth rate is significantly higher than Miniso's overall performance, with a revenue growth rate 2.5 times that of the parent company [5] Market Positioning - TOP TOY's strategy closely mirrors that of Bubble Mart, aiming to capture market share in the潮玩 sector [5][6] - The brand's primary products include blind boxes, building blocks, and plush toys, with a focus on leveraging popular IPs for product development [7][10] - The company has seen a 55%-60% compound annual growth rate over the past four years, with self-owned products experiencing a 150% growth rate this year [7][10] IP Strategy - TOP TOY relies heavily on external IPs for its product offerings, which poses risks related to licensing costs and renewal uncertainties [10][11] - The brand has a limited number of original IPs, with current self-owned IPs accounting for only a small percentage of sales [10][11] - The company is exploring collaborations with designers to enhance its product offerings, but remains focused on leveraging existing major IPs for growth [8][9] Competitive Landscape - TOP TOY faces challenges in differentiating itself from competitors like Bubble Mart, which has a strong portfolio of exclusive designer IPs [10][11] - The brand's reliance on external IPs may hinder its ability to create standout products in a crowded market [11][12] - The company is aware of the difficulties in attracting consumers in unfamiliar markets, particularly in Europe and North America [13] Store Location Strategy - TOP TOY's store location strategy has evolved to include not just first and second-tier cities but also lower-tier cities, reflecting a shift to capture a broader consumer base [15] - The company's same-store sales growth has slowed, indicating a need for strategic adjustments in its expansion approach [15]

Revenue Growth - Revenue increased by 62.0% to RMB 4,557,831,000 in the first half of 2024 compared to the same period in 2023[19] - Revenue reached RMB4,557.8 million, a year-on-year increase of 62.0%[23][24] - The company's revenue increased by 62.0% year-on-year, from RMB2,813.8 million in the first half of 2023 to RMB4,557.8 million in the first half of 2024[52][53] - Total revenue increased by 62.0% from RMB2,813.8 million in H1 2023 to RMB4,557.8 million in H1 2024[83] - Revenue increased to RMB 4,557,831,000, up 62% from RMB 2,813,812,000 in the same period last year[172] Profitability - Gross profit rose by 71.9% to RMB 2,919,105,000, with a gross profit margin of 64.0%[19] - Operating profit surged by 109.5% to RMB 1,126,417,000[19] - Profit for the period doubled to RMB 964,142,000, a 102.0% increase[19] - Non-IFRS adjusted net profit grew by 90.1% to RMB 1,017,625,000[19] - The company's gross profit margin increased from 60.4% in the first half of 2023 to 64.0% in the first half of 2024[56] - Gross profit grew by 71.9% from RMB1,698.4 million in H1 2023 to RMB2,919.1 million in H1 2024, with gross profit margin rising from 60.4% to 64.0%[84] - Operating profit surged by 109.5% from RMB537.8 million in H1 2023 to RMB1,126.4 million in H1 2024[86] - Profit for the period increased by 102.0% from RMB477.2 million in H1 2023 to RMB964.1 million in H1 2024[86] - Non-IFRS adjusted net profit grew to RMB1,017.6 million in H1 2024, up from RMB535.4 million in H1 2023[87] - Non-IFRS adjusted net profit margin improved from 19.0% in H1 2023 to 22.3% in H1 2024[87] - Gross profit rose to RMB 2,919,105,000, a 72% increase from RMB 1,698,360,000 in the previous year[172] - Operating profit surged to RMB 1,126,417,000, more than double the RMB 537,762,000 recorded in the prior year[172] - Net profit attributable to owners of the company grew to RMB 921,333,000, up 93% from RMB 476,575,000[172] - Basic earnings per share increased to RMB 69.49 cents, up 96% from RMB 35.46 cents[174] Regional Revenue - Mainland China revenue was RMB3,206.4 million, up 31.5% year-on-year[23][24] - Hong Kong, Macao, Taiwan, and overseas revenue surged to RMB1,351.5 million, a 259.6% year-on-year increase, accounting for 29.7% of total revenue[23][24] - Revenue from offline channels in Mainland China increased by 23.1%, from RMB1,450.6 million in the first half of 2023 to RMB1,786.3 million in the first half of 2024[58][59] - Revenue from offline channels in Hong Kong, Macao, Taiwan, and overseas increased significantly, from RMB190.4 million in the first half of 2023 to RMB946.7 million in the first half of 2024[56] - Offline channel revenue in Hong Kong, Macao, Taiwan, and overseas skyrocketed by 397.3% YoY from RMB190.4 million in H1 2023 to RMB946.7 million in H1 2024[68][69] - Revenue from Hong Kong, Macao, Taiwan and overseas increased by 259.6% year-on-year from RMB375.8 million in H1 2023 to RMB1,351.5 million in H1 2024, with Southeast Asia contributing 41.1% of the total revenue[75][76] - Revenue from North America increased by 377.7% year-on-year from RMB37.3 million in H1 2023 to RMB178.0 million in H1 2024, contributing 13.2% of total revenue[76] IP and Product Performance - MOLLY revenue increased by 90.1% year-on-year to RMB782.2 million[26][27] - THE MONSTERS revenue grew 292.2% year-on-year to RMB626.8 million[26][27] - SKULLPANDA revenue rose 9.2% year-on-year to RMB574.6 million[26][27] - Hirono IP revenue increased by 124.3% year-on-year[29][32] - Zsiga IP revenue grew 169.5% year-on-year[29][32] - MEGA COLLECTION revenue was RMB586.1 million, accounting for 12.9% of total revenue[31][32] - Plush products revenue reached RMB446.1 million, representing 9.8% of total revenue[33] - Plush products generated revenue of RMB 446.1 million in the first half of 2024, accounting for 9.8% of total revenue[34] - MOLLY IP revenue increased by 90.1% year-on-year from RMB411.4 million in H1 2023 to RMB782.2 million in H1 2024, contributing 17.2% of total revenue[79] - THE MONSTERS IP revenue surged by 292.2% year-on-year from RMB159.8 million in H1 2023 to RMB626.8 million in H1 2024, accounting for 13.7% of total revenue[79] - Revenue from artist IPs increased by 70.4% from RMB2,164.3 million in H1 2023 to RMB3,687.8 million in H1 2024, with its revenue proportion rising from 76.9% to 81.0%[80][81] - Revenue from licensed IPs grew by 64.9% from RMB421.5 million in H1 2023 to RMB694.9 million in H1 2024[81] - Figure toys revenue increased by 30.2% from RMB2,041.1 million in H1 2023 to RMB2,656.8 million in H1 2024[83][84] - MEGA revenue surged by 141.9% from RMB242.3 million in H1 2023 to RMB586.1 million in H1 2024[83][84] - Plush toys revenue skyrocketed by 993.6% from RMB40.8 million in H1 2023 to RMB446.1 million in H1 2024[83][84] - Other IP-related products and others revenue rose by 77.5% from RMB489.6 million in H1 2023 to RMB868.8 million in H1 2024[83][84] Store and Channel Performance - The company opened 20 new physical stores in Mainland China in the first half of 2024, increasing the total number of stores from 363 to 374[36][37] - Revenue from the Pop Draw Weixin mini program reached RMB 399.2 million in the first half of 2024, showing positive year-on-year growth[38][40] - DouYin platform revenue increased by 90.7% year-on-year to RMB 208.9 million in the first half of 2024[38][40] - Tmall Flagship store revenue grew by 28.1% year-on-year to RMB 198.8 million in the first half of 2024[38][40] - The company had 92 physical stores and 162 roboshops in Hong Kong, Macao, Taiwan, and overseas as of 30 June 2024[42][45] - Retail store revenue increased by 24.7% YoY from RMB1,179.5 million in H1 2023 to RMB1,471.3 million in H1 2024, with the total number of retail stores reaching 374 by June 2024[61][62] - Roboshop revenue grew by 16.2% YoY from RMB271.1 million in H1 2023 to RMB315.0 million in H1 2024, with the total number of roboshops reaching 2,189 by June 2024[62] - Online channel revenue surged by 34.0% YoY from RMB817.4 million in H1 2023 to RMB1,095.7 million in H1 2024, with DouYin platform revenue increasing by 90.7%[63][64] - Retail store revenue in Hong Kong, Macao, Taiwan, and overseas surged by 441.5% YoY from RMB165.0 million in H1 2023 to RMB893.5 million in H1 2024, with the total number of retail stores reaching 83 by June 2024[69] - Revenue from roboshop sales in Hong Kong, Macao, Taiwan and overseas increased by 109.7% year-on-year from RMB25.4 million in H1 2023 to RMB53.2 million in H1 2024, with the total number of roboshops reaching 143 as of 30 June 2024[70] - Online sales revenue increased by 335.4% year-on-year from RMB56.8 million in H1 2023 to RMB247.2 million in H1 2024, with Pop Mart official website revenue growing by 465.5% to RMB69.6 million[71][72] Financial Position - Total assets increased to RMB 11,017,479,000 as of 30 June 2024[20] - Total equity reached RMB 8,452,657,000, up from RMB 7,780,382,000 at the end of 2023[20] - Net current assets increased from RMB5,950.2 million as of 31 December 2023 to RMB6,647.0 million as of 30 June 2024[90][92] - Trade receivables decreased from RMB321.3 million as of 31 December 2023 to RMB263.7 million as of 30 June 2024, with turnover days decreasing from 15 days to 12 days[93][97] - Inventories increased from RMB904.7 million as of 31 December 2023 to RMB916.7 million as of 30 June 2024, with turnover days decreasing from 133 days to 101 days[94][98] - Cash and cash equivalents increased from RMB2,077.9 million as of 31 December 2023 to RMB3,608.7 million as of 30 June 2024[95][99] - Trade payables increased from RMB444.9 million as of 31 December 2023 to RMB555.1 million as of 30 June 2024, with turnover days increasing from 53 days to 56 days[96][100] - The gearing ratio increased from 22.0% as of 31 December 2023 to 23.3% as of 30 June 2024[103][105] - Total assets expanded to RMB 11,017,479,000, a 10.5% increase from RMB 9,968,863,000 at the end of 2023[176] - Cash and cash equivalents rose to RMB 3,608,674,000, a 73.7% increase from RMB 2,077,927,000[176] - Total equity increased to RMB 8,452,657,000, up 8.6% from RMB 7,780,382,000[176] - Non-current assets grew to RMB 2,302,138,000, a 0.7% increase from RMB 2,285,394,000[176] - Current liabilities increased to RMB 2,068,343,000, up 19.3% from RMB 1,733,301,000[177] - The company's retained earnings as of 30 June 2024 stood at RMB 4,239,103 thousand[179] - Total equity attributable to owners of the company as of 30 June 2024 was RMB 8,399,036 thousand[179] - Non-controlling interests as of 30 June 2024 were RMB 53,621 thousand[179] - The company's total equity as of 30 June 2024 was RMB 8,452,657 thousand[179] - The Group has cash and cash equivalents, restricted cash, and term deposits totaling RMB 7,029,903,000 as of June 30, 2024[195] - Trade payables increased to RMB 555,137,000 as of June 30, 2024, compared to RMB 444,944,000 at the end of 2023[196] - License fees payables rose to RMB 288,510,000 as of June 30, 2024, up from RMB 197,114,000 at the end of 2023[196] - Lease liabilities totaled RMB 905,051,000 as of June 30, 2024, compared to RMB 880,155,000 at the end of 2023[196] - The Group's total financial liabilities amounted to RMB 2,081,901,000 as of June 30, 2024, up from RMB 1,846,682,000 at the end of 2023[196] Cash Flow - Net cash generated from operating activities increased to RMB 1,905,271 thousand in 2024, up from RMB 1,092,337 thousand in 2023[182] - Interest received surged to RMB 191,283 thousand in 2024, compared to RMB 76,715 thousand in 2023[182] - Income tax paid rose to RMB 194,041 thousand in 2024, up from RMB 97,857 thousand in 2023[182] - Net cash generated from investing activities reached RMB 333,591 thousand in 2024, significantly higher than RMB 82,034 thousand in 2023[182] - Dividends paid increased to RMB 373,025 thousand in 2024, compared to RMB 118,995 thousand in 2023[183] - Net increase in cash and cash equivalents was RMB 1,522,888 thousand in 2024, up from RMB 616,084 thousand in 2023[183] - Cash and cash equivalents at the end of the period stood at RMB 3,608,674 thousand in 2024, compared to RMB 1,473,382 thousand in 2023[183] Expenses - Costs of sales increased by 46.9% from RMB1,115.5 million in H1 2023 to RMB1,638.7 million in H1 2024, driven by higher goods costs and design/licensing expenses[84] - Distribution and selling expenses increased by 54.1% from RMB878.3 million in H1 2023 to RMB1,353.2 million in H1 2024[85] - Employee benefit expenses rose by 31.7% from RMB281.4 million in H1 2023 to RMB370.5 million in H1 2024, driven by an increase in sales personnel from 3,189 to 4,232[85] - Lease-related expenses increased by 58.7% from RMB210.2 million in H1 2023 to RMB333.6 million in H1 2024, due to the addition of 79 offline retail outlets[85] - General and administrative expenses grew by 31.1% from RMB331.3 million in H1 2023 to RMB434.4 million in H1 2024, with administrative and design personnel increasing from 959 to 1,238[85] - Share-based compensation expenses in 2024 were RMB 53,483 thousand[179] Strategic Initiatives - The company launched several new IPs and product series that gained popularity among consumers[22] - The company launched its first building block product in mid-June 2024, enhancing IP representation and fan interaction through innovations in craftsmanship, materials, and gameplay[34][35] - The company opened themed and flagship stores in multiple overseas landmarks, including Bangkok, Los Angeles, Vietnam, and Oxford Street, enhancing global brand awareness[43][45] - The overseas e-commerce team applied differentiated strategies on platforms like Shopee, Lazada, and TikTok, focusing on localized services and high-quality content to drive sales and brand exposure[44][45] - POP LAND successfully established must-visit attractions, must-try dining experiences, and must-buy products, attracting a broad spectrum of fans and families from China and internationally[47] - The "2024 PTS Beijing International Pop Toy Festival" hosted 26 autograph sessions and nearly a hundred entertainment events, transforming from a traditional "Pop Toy Convention" to a comprehensive "Pop Toy Festival"[48] - LABUBU debuted as the "Magical Thailand Experience Ambassador" in Thailand, enhancing the brand's visibility and influence in the country[50] - The company launched its first self-designed mobile game, Dream Home, on 27 June 2024, combining business simulation and party gameplay for a lighter and more casual gaming experience[51] - The company plans to enrich IP types, expand the IP base, and introduce more products under the top series, while continuously incubating and operating IPs to strengthen their essence and deepen fan connections[114] - The company aims to increase the types of pop toys, explore the value of box products like MEGA, plush toys, and toy bricks, and improve relevant technologies and production and sales procedures[114] - The company will deploy its supply chain globally, seeking more suitable and efficient partners, including manufacturers and suppliers, to meet market demand and ensure efficient production supply[114] - The company will focus on sustainable development and environmental protection by launching more products and packaging made of environmentally friendly materials[114] - The company plans to expand its global business footprint, particularly in Southeast Asia and Europe, by establishing offline channels in major global landmarks and enhancing consumer experiences[115][117] - The company will strengthen partnerships with third-party platforms, invest in content-driven e-commerce platforms, and collaborate with more brands and artists to enrich product lines and boost brand awareness[

Revenue Growth - Revenue increased by 62.0% to RMB 4,557,831 thousand compared to the same period last year[2] - Total revenue for the first half of 2024 was RMB 4,557,831 thousand, a 62% increase compared to RMB 2,813,812 thousand in the same period of 2023[14] - Revenue for the six months ended June 30, 2024, reached RMB 4,557,831 thousand, a significant increase from RMB 2,813,812 thousand in the same period in 2023[18] - Revenue for the first half of 2024 reached RMB 4,557.8 million, a 62.0% year-on-year increase, driven by strong performance in both domestic and international markets[38] - The company's revenue increased by 62.0% year-over-year, from RMB 2,813.8 million in the first half of 2023 to RMB 4,557.8 million in the first half of 2024[47] Profitability - Gross profit rose by 71.9% to RMB 2,919,105 thousand year-over-year[2] - Operating profit surged by 109.5% to RMB 1,126,417 thousand[2] - Net profit attributable to the company's owners grew by 93.3% to RMB 921,333 thousand[2] - Net profit for the first half of 2024 was RMB 964,142 thousand, a 102% increase compared to RMB 477,242 thousand in the same period of 2023[14] - Gross profit rose by 71.9% to RMB 2,919.1 million, with gross margin improving to 64.0% in H1 2024[66] - Operating profit more than doubled, increasing by 109.5% to RMB 1,126.4 million in H1 2024[70] - Net profit increased by 102.0% from RMB 477.2 million in the first half of 2023 to RMB 964.1 million in the reporting period[72] - Non-IFRS adjusted net profit increased to RMB 1,017.6 million, with a non-IFRS adjusted net profit margin of 22.3%, up from 19.0% in the same period last year[73] Earnings Per Share - Basic earnings per share increased by 96.0% to RMB 69.49 cents[2] - Basic earnings per share for the six months ended June 30, 2024, were RMB 69.49 cents, up from RMB 35.46 cents in 2023[26] - Diluted earnings per share for the six months ended June 30, 2024, were RMB 69.22 cents, compared to RMB 35.42 cents in 2023[27] Asset and Liability Changes - Total assets increased to RMB 11,017,479 thousand as of June 30, 2024, up from RMB 9,968,863 thousand at the end of 2023[5] - Cash and cash equivalents rose significantly to RMB 3,608,674 thousand from RMB 2,077,927 thousand at the end of 2023[5] - Total equity attributable to the company's owners increased to RMB 8,399,036 thousand from RMB 7,769,927 thousand[6] - Total liabilities increased to RMB 2,564,822 thousand from RMB 2,188,481 thousand[6] - Non-current assets slightly increased to RMB 2,302,138 thousand from RMB 2,285,394 thousand[5] - Trade receivables decreased to RMB 263,722 thousand as of June 30, 2024, from RMB 321,337 thousand as of December 31, 2023, with a significant reduction in receivables from related parties[28] - Trade payables increased to RMB 555,137 thousand as of June 30, 2024, from RMB 444,944 thousand as of December 31, 2023, with 57.5% of payables within 30 days[34][35] - Payable licensing fees increased to RMB 287,214 thousand as of June 30, 2024, from RMB 194,200 thousand as of December 31, 2023, with the current portion rising to RMB 273,026 thousand[36][37] - Inventory increased slightly from RMB 904.7 million as of December 31, 2023, to RMB 916.7 million as of June 30, 2024, with inventory turnover days reduced from 133 days to 101 days[76] - Cash and cash equivalents increased significantly from RMB 2,077.9 million as of December 31, 2023, to RMB 3,608.7 million as of June 30, 2024, driven by increased cash flow from operations and reduced fixed deposits[77] - Trade payables increased from RMB 444.9 million as of December 31, 2023, to RMB 555.1 million as of June 30, 2024, with turnover days increasing from 53 days to 56 days[78] - The company had no bank borrowings as of June 30, 2024, and the asset-liability ratio increased slightly from 22.0% as of December 31, 2023, to 23.3% as of June 30, 2024[79] Regional Revenue Breakdown - Revenue from Mainland China business reached RMB 3,206,354 thousand, accounting for 70.3% of total revenue, while revenue from Hong Kong, Macau, Taiwan, and overseas business reached RMB 1,351,477 thousand, accounting for 29.7% of total revenue[14] - Segment profit from Mainland China business was RMB 886,788 thousand, and segment profit from Hong Kong, Macau, Taiwan, and overseas business was RMB 400,191 thousand, totaling RMB 1,286,979 thousand[14] - Revenue from retail store sales in Mainland China was RMB 1,471,276 thousand, and revenue from online sales was RMB 1,095,669 thousand[17] - Revenue from retail store sales in Hong Kong, Macau, Taiwan, and overseas was RMB 893,505 thousand, and revenue from online sales was RMB 247,244 thousand[15] - Domestic revenue in mainland China grew by 31.5% year-on-year to RMB 3,206.4 million, while overseas revenue surged by 259.6% to RMB 1,351.5 million, accounting for 29.7% of total revenue[38] - Revenue from offline channels in Mainland China grew by 23.1%, from RMB 1,450.6 million in the first half of 2023 to RMB 1,786.3 million in the first half of 2024[49] - Revenue from retail stores in Mainland China increased by 24.7%, contributing 82.4% of total offline revenue in the first half of 2024[50] - Revenue from robot stores in Mainland China grew by 16.2%, accounting for 17.6% of total offline revenue in the first half of 2024[50] - Overseas revenue surged significantly, with offline channels in Hong Kong, Macau, Taiwan, and overseas markets generating RMB 946.7 million in the first half of 2024, up from RMB 190.4 million in the same period of 2023[48] - Online revenue in Hong Kong, Macau, Taiwan, and overseas markets reached RMB 247.2 million in the first half of 2024, a substantial increase from RMB 56.8 million in the first half of 2023[48] - Offline revenue in Hong Kong, Macau, Taiwan, and overseas markets skyrocketed by 397.3% YoY, from RMB 190.4 million in H1 2023 to RMB 946.7 million in H1 2024, with retail store revenue growing by 441.5% and robot store revenue increasing by 109.7%[55][56][57] - Online revenue in Hong Kong, Macau, Taiwan, and overseas markets surged by 335.4% YoY, from RMB 56.8 million in H1 2023 to RMB 247.2 million in H1 2024, with Pop Mart official website revenue growing by 465.5% and Lazada revenue increasing by 387.9%[58] - Wholesale and other revenue in Hong Kong, Macau, Taiwan, and overseas markets increased by 22.5% YoY, from RMB 128.6 million in H1 2023 to RMB 157.5 million in H1 2024, driven by business expansion and increased brand recognition[59] - Revenue in Hong Kong, Macau, Taiwan, and overseas markets grew by 259.6% YoY, from RMB 375.8 million in H1 2023 to RMB 1,351.5 million in H1 2024, with Southeast Asia revenue increasing by 478.3% and North America revenue growing by 377.7%[60] Product and IP Performance - MOLLY achieved revenue of RMB 782.2 million in the first half of 2024, with a year-on-year growth of 90.1%[39] - THE MONSTERS achieved revenue of RMB 626.8 million in the first half of 2024, with a year-on-year growth of 292.2%[39] - SKULLPANDA achieved revenue of RMB 574.6 million in the first half of 2024, with a year-on-year growth of 9.2%[39] - Hirono (Xiaoye) achieved revenue growth of 124.3% year-on-year in the first half of 2024[40] - Zsiga achieved revenue growth of 169.5% year-on-year in the first half of 2024[40] - MEGA COLLECTION achieved revenue of RMB 586.1 million in the first half of 2024, accounting for 12.9% of total revenue[40] - Plush products achieved revenue of RMB 446.1 million in the first half of 2024, accounting for 9.8% of total revenue[40] - Revenue from self-developed products increased by 69.5% to RMB 4,382.7 million in H1 2024, accounting for 96.2% of total revenue[61] - Artist IP revenue grew by 70.4% to RMB 3,687.8 million, representing 81.0% of total revenue in H1 2024[63] - Licensed IP revenue increased by 64.9% to RMB 694.9 million in H1 2024[63] - MEGA product revenue surged by 141.9% to RMB 586.1 million in H1 2024[64] - Plush toy revenue skyrocketed by 993.6% to RMB 446.1 million in H1 2024[64] Expenses and Costs - Cost of goods sold for the six months ended June 30, 2024, was RMB 1,282,095 thousand, up from RMB 923,921 thousand in 2023[19] - Employee benefits expenses increased to RMB 657,748 thousand in 2024 from RMB 496,416 thousand in 2023[19] - Commission and e-commerce platform service fees surged to RMB 206,785 thousand in 2024, compared to RMB 70,262 thousand in 2023[19] - Advertising and marketing expenses rose to RMB 198,592 thousand in 2024 from RMB 141,978 thousand in 2023[19] - Distribution and sales expenses grew by 54.1% to RMB 1,353.2 million, driven by employee benefits and lease-related expenses[67] - The number of retail stores increased by 79, contributing to higher lease-related expenses of RMB 333.6 million in H1 2024[67] - Income tax expense for the six months ended June 30, 2024, was RMB 264,296 thousand, compared to RMB 141,305 thousand in 2023[23] - Capital expenditures for the first half of 2024 totaled RMB 186.4 million, a decrease from RMB 214.1 million in the same period last year[82] - The company employed 5,470 staff as of June 30, 2024, with employee costs amounting to RMB 657.7 million[83] Share Repurchase and Dividends - The company repurchased 4,700,000 ordinary shares during the six months ended June 30, 2024, at a total cost of HKD 85,827,000 (approximately RMB 78,031,000)[33] - The company repurchased a total of 4,700,000 shares on the Hong Kong Stock Exchange for a total consideration of approximately HKD 85,826,488 during the six months ended June 30, 2024[93] - The highest price per share paid for repurchases in January 2024 was HKD 19.96, while the lowest price was HKD 17.00[94] - In February 2024, the company repurchased 810,000 shares at a highest price of HKD 18.46 and a lowest price of HKD 17.62[94] - The company will not pay an interim dividend for the six months ended June 30, 2024[90] Future Plans and Strategies - The company plans to expand its IP portfolio, enhance product categories, and focus on sustainable and eco-friendly materials to strengthen its market position[84] - The company plans to expand its global business footprint, particularly in Southeast Asia and Europe, and open offline channels in major global landmarks to enhance consumer experience and brand awareness[85] - 30% of the net proceeds (HKD 1,692.5 million) will be allocated for consumer reach channels and overseas market expansion, including opening new retail stores (HKD 954.0 million) and new robot stores (HKD 346.9 million)[88] - 7.5% of the net proceeds (HKD 433.6 million) will be used for expanding business into overseas markets[88] - 18% of the net proceeds (HKD 1,040.7 million) will be allocated to expand the company's IP library, including acquiring popular IPs (HKD 693.8 million)[89] - 6% of the net proceeds (HKD 346.9 million) will be used for purchasing software and hardware to enhance digitalization and establish information systems for digital marketing, customer service, logistics, and supply chain management[88] - 10% of the net proceeds (HKD 578.2 million) will be allocated for working capital and general corporate purposes[89] Corporate Governance and Compliance - The company's external auditor, PricewaterhouseCoopers, reviewed the interim financial information for the six months ended June 30, 2024, and found no material misstatements[95] - The company's audit committee consists of two independent non-executive directors and one non-executive director, with Mr. Wu Liansheng serving as the chairman[95] - The company's board of directors includes three independent non-executive directors, providing sufficient checks and balances within the board[91] - The company's chairman and CEO, Mr. Wang Ning, also serves as the founder, ensuring consistent leadership and strategic planning[91] - The company confirmed that all directors complied with the Model Code for Securities Transactions during the six months ended June 30, 2024[92] - The company's interim results announcement and interim report for the six months ended June 30, 2024, were published on the Hong Kong Stock Exchange and the company's website[96] Financial Performance Metrics - The aging analysis of trade receivables shows that 84.8% of receivables were within 3 months as of June 30, 2024, compared to 94.8% as of December 31, 2023[29] - Impairment provisions for trade receivables increased to RMB 9,338 thousand as of June 30, 2024, from RMB 7,319 thousand as of December 31, 2023[30] - Net finance income increased to RMB 83.8 million in H1 2024, up from RMB 63.4 million in the same period last year[70] - Trade receivables decreased from RMB 321.3 million as of December 31, 2023, to RMB 263.7 million as of June 30, 2024, with turnover days reduced from 15 days to 12 days[75] Market Expansion and Store Growth - The company opened 20 new offline stores in mainland China in the first half of 2024, bringing the total number of stores to 374[42] - The company's Douyin platform revenue reached RMB 208.9 million in the first half of 2024, with a year-on-year growth of 90.7%[43] - The company's cumulative registered members in mainland China reached 38.927 million by June 30, 2024, with a member repurchase rate of 43.9%[44] - The company expanded its overseas presence with 92 stores (including joint ventures) and 162 robot stores (including joint ventures and franchises) as of June 30, 2024[45] - Retail store sales revenue in mainland China increased by 24.7% YoY, from RMB 1,179.5 million in H1 2023 to RMB 1,471.3 million in H1 2024, with the number of stores increasing by 34 to a total of 374 stores as of June 30, 2024[51] - Robot store sales revenue in mainland China grew by 16.2% YoY, from RMB 271.1 million in H1 2023 to RMB 315.0 million in H1 2024, with the number of robot stores increasing by 4 to a total of 2,189 stores as of June 30, 2024[52] - Online revenue in mainland China surged by 34.0% YoY, from RMB 817.4 million in H1 2023 to RMB 1,095.7 million in H1 2024, with significant growth in Douyin platform revenue (90.7%) and Tmall flagship store revenue (28.1%)[53] - Wholesale and other revenue in mainland China increased by 90.8% YoY, from RMB 170.1 million in H1 2023 to RMB 324.4 million in H1 2024, driven by revenue from Pop Mart City Park[54] Digital and Online Performance - The company's Douyin platform revenue reached RMB 208.9 million in the first half of 2024, with a year-on-year growth of 90.7%

Financial Data and Key Metrics - The company raised its 2024-26 earnings estimates, expecting 38% and 40% growth in sales and adjusted net profit for 2024 [2] - The price target was increased by 18% to HK$45, with a target 2024 P/E of 33x [2] - Revenue for 2023 was RMB 6,301 million, with net income of RMB 1,191 million [6] - For 2024, revenue is projected to grow to RMB 8,712 million, with net income expected to reach RMB 1,662 million [6] - The company's ROE is expected to increase from 15.5% in 2023 to 20.0% in 2024 [6] Business Line Data and Key Metrics - The company creates over 1,000 toy figures annually, leveraging a large archive of 3D images for IP development [3] - New businesses such as toy bricks, mobile games, and apparel/accessories are expected to contribute significantly to future growth [4][16] - Overseas sales grew by ~250% in 1Q24, driven by a 70-80% increase in store count and ~100% growth in store productivity [11] - The company plans to open ~15 stores in the US and enter new markets like the Philippines, Indonesia, and Vietnam in 2024 [13] Market Data and Key Metrics - In 2023, Eastern Asia accounted for 55-60% of overseas sales, while Southeastern Asia and the West contributed ~25% and ~15%, respectively [13] - For 2024, management expects Eastern Asia to account for ~30% of sales, Southeastern Asia ~40%, and the West ~30% [13] - Overseas store productivity is projected to increase to ~RMB 18 million in 2024, up from ~RMB 12 million in 2023 [12] Company Strategy and Industry Competition - The company is transforming into a leading IP operator, aiming to become a combination of Bandai Namco, LEGO, Sanrio, and Disney [5] - The strategy includes "brand-izing" top IPs and diversifying into new businesses like toy bricks, mobile games, and apparel [18] - The company is leveraging its large design archive to efficiently develop new products and extend IP value [3][16] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong demand for new products, with several items selling out quickly [10] - The company expects overseas sales to grow ~130% in 2024, with offline channel sales up ~190% [12] - Management is optimistic about the potential of new businesses and overseas expansion, which are seen as key drivers for 2025-26 [5][17] Other Important Information - The company's gross margin is expected to remain stable at 63.4% in 2024, with overseas markets contributing higher margins (~69%) [27] - The SG&A ratio is projected to decrease to 42.8% in 2024, reflecting potential operating leverage [27] - The company's adjusted net profit margin is estimated at 19.1% for 2024, slightly below management's optimal target of 20% [28] Summary of Q&A Session - No specific Q&A session details were provided in the document

Financial Performance - Revenue for 2023 reached RMB 6,301,002 thousand, showing significant growth compared to previous years[12] - Gross profit for 2023 was RMB 3,864,071 thousand with a gross profit margin of 61.3%[12] - Operating profit for 2023 stood at RMB 1,230,646 thousand[12] - Profit before income tax for 2023 was RMB 1,415,755 thousand[12] - Profit for the year 2023 was RMB 1,088,771 thousand[12] - Profit attributable to owners of the Company for 2023 was RMB 1,082,344 thousand[12] - Non-IFRS adjusted net profit for 2023 was RMB 1,190,519 thousand with a margin of 18.9%[12] - Net profit margin for 2023 was 17.3%[12] - Gross profit margin for 2023 was 61.3%, up from 57.5% in 2022[12] - Non-IFRS adjusted net profit margin for 2023 was 18.9%, up from 12.4% in 2022[12] - Pop Mart achieved an annual revenue of RMB6.3 billion, representing a year-on-year increase of 36.5%[15] - Adjusted net profit was RMB1.19 billion, with a year-on-year increase of 107.6%[15] - Revenue from Hong Kong, Macao, Taiwan, and overseas markets reached RMB1,066.1 million, a year-on-year increase of 134.9%[22] - Company's total revenue reached RMB 6,301.0 million, a year-on-year increase of 36.5%[24] - Overseas business revenue in Hong Kong, Macau, Taiwan, and other regions reached RMB 1,066.1 million, a year-on-year increase of 134.9%, accounting for 16.9% of total revenue[24] - Revenue increased from RMB4,617.3 million in 2022 to RMB6,301.0 million in 2023, representing a year-on-year increase of 36.5%[44][46] - Offline channel revenue in Mainland China grew by 46.3% from RMB2,069.9 million in 2022 to RMB3,027.8 million in 2023[48] - Online channel revenue in Mainland China decreased by 6.5% from RMB1,829.8 million in 2022 to RMB1,710.4 million in 2023[47] - Wholesale and other channel revenue in Mainland China increased by 88.4% from RMB263.6 million in 2022 to RMB496.6 million in 2023[47] - Offline channel revenue in Hong Kong, Macao, Taiwan, and overseas surged by 324.7% from RMB150.7 million in 2022 to RMB640.2 million in 2023[47] - Online channel revenue in Hong Kong, Macao, Taiwan, and overseas grew by 72.7% from RMB90.2 million in 2022 to RMB155.8 million in 2023[47] - Wholesale and other channel revenue in Hong Kong, Macao, Taiwan, and overseas increased by 26.8% from RMB212.9 million in 2022 to RMB270.0 million in 2023[47] - Retail store revenue in Mainland China increased by 46.6% from RMB1,691.1 million in 2022 to RMB2,479.2 million in 2023[48] - Roboshop revenue in Mainland China grew by 44.8% from RMB378.8 million in 2022 to RMB548.5 million in 2023[48] - Retail store sales revenue in Mainland China increased by 46.6% year-on-year from RMB1,691.1 million in 2022 to RMB2,479.2 million in 2023, with the number of retail stores increasing by 34 to a total of 363[53] - Roboshop sales revenue in Mainland China increased by 44.8% year-on-year from RMB378.8 million in 2022 to RMB548.6 million in 2023, with the number of roboshops increasing by 123 to a total of 2,190[54] - Online sales revenue in Mainland China decreased by 6.5% from RMB1,829.8 million in 2022 to RMB1,710.5 million in 2023, with DouYin revenue increasing by 431.2% from RMB53.3 million to RMB283.3 million[55][60] - Wholesales and others revenue in Mainland China increased by 88.4% from RMB263.6 million in 2022 to RMB496.6 million in 2023, driven by increased sales to wholesalers and the opening of POP LAND in September 2023[61] - Offline sales revenue in Hong Kong, Macao, Taiwan, and Overseas increased by 324.7% from RMB150.8 million in 2022 to RMB640.3 million in 2023, with retail store revenue increasing by 330.0% and roboshop revenue increasing by 277.3%[62][67][68] - Online sales revenue in Hong Kong, Macao, Taiwan, and Overseas increased by 72.7% from RMB90.2 million in 2022 to RMB155.8 million in 2023, with Shopee revenue increasing by 70.3% and other online channels revenue increasing by 93.4%[69][71] - Shopee revenue increased by 70.3% from RMB25.2 million in 2022 to RMB42.9 million in 2023[72] - Pop Mart official website revenue increased by 45.9% from RMB27.1 million in 2022 to RMB39.5 million in 2023[72] - Wholesales and others revenue in Hong Kong, Macao, Taiwan, and overseas increased by 26.8% from RMB212.9 million in 2022 to RMB270.0 million in 2023[72] - Proprietary products revenue increased by 39.8% from RMB4,190.0 million in 2022 to RMB5,858.0 million in 2023, contributing 93.0% of total revenue[74] - Artist IPs revenue increased by 32.5% from RMB3,639.7 million in 2022 to RMB4,822.2 million in 2023[78] - Licensed IPs revenue increased by 88.2% from RMB550.3 million in 2022 to RMB1,035.7 million in 2023[79] - Costs of sales increased by 24.2% from RMB1,962.8 million in 2022 to RMB2,436.9 million in 2023[80] - Gross profit increased by 45.6% from RMB2,654.5 million in 2022 to RMB3,864.1 million in 2023, with gross profit margin rising from 57.5% to 61.3%[83] - Gross profit from Pop Mart proprietary products increased by 47.6% from RMB2,518.2 million in 2022 to RMB3,716.2 million in 2023, with gross profit margin rising from 59.7% to 63.4%[83] - Distribution and selling expenses increased by 36.3% from RMB1,470.8 million in 2022 to RMB2,004.7 million in 2023, driven by employee benefit expenses and depreciation of right-of-use assets[83] - Employee benefit expenses increased by 51.9% from RMB394.0 million in 2022 to RMB598.5 million in 2023, due to an increase in sales personnel from 3,171 to 3,735[83] - Depreciation of right-of-use assets increased by 13.2% from RMB269.3 million in 2022 to RMB304.9 million in 2023, due to the expansion of offline retail outlets by 76[84] - General and administrative expenses increased by 3.1% from RMB686.3 million in 2022 to RMB707.3 million in 2023, with administrative and design development personnel increasing from 1,007 to 1,110[84] - Other income increased by 64.4% from RMB45.6 million in 2022 to RMB74.9 million in 2023, with government grants increasing from RMB11.6 million to RMB30.9 million[84] - Operating profit increased by 111.0% from RMB583.4 million in 2022 to RMB1,230.6 million in 2023[84] - Profit for the year increased from RMB475.8 million in 2022 to RMB1,088.8 million in 2023[86] - Effective tax rate decreased from 25.6% in 2022 to 23.1% in 2023, with income tax expense increasing from RMB163.7 million to RMB327.0 million[85] - Non-IFRS adjusted net profit increased to RMB 1,190,519 thousand in 2023, up from RMB 573,540 thousand in 2022[93] - Non-IFRS adjusted net profit margin rose to 18.9% in 2023, compared to 12.4% in 2022[93] - Net current assets grew to RMB 5,950.2 million in 2023 from RMB 5,484.8 million in 2022[95] - Trade receivables increased to RMB 321.3 million in 2023 from RMB 194.4 million in 2022[95] - Inventories rose to RMB 904.7 million in 2023 from RMB 867.0 million in 2022[95] - Cash and cash equivalents surged to RMB 2,077.9 million in 2023 from RMB 685.3 million in 2022[95] - Trade payables increased to RMB 444.9 million in 2023 from RMB 259.0 million in 2022[96] - Gearing ratio increased to 22.0% in 2023 from 18.8% in 2022[99] - Bank borrowings stood at RMB 15.1 million in 2023, compared to nil in 2022[97] - Capital expenditures in 2023 totaled RMB 392,466 thousand, with RMB 324,179 thousand for property, plant, and equipment and RMB 68,287 thousand for intangible assets[109] - The Company's reserve available for distribution to shareholders amounted to approximately RMB11,964,634,000 as of 31 December 2023[183] IP and Product Performance - 10 IPs exceeded RMB100 million in sales for the first time, with top IPs SKULLPANDA and MOLLY each exceeding RMB1 billion in revenue[15] - The top five IPs accounted for around 55% of total sales, demonstrating a balanced and healthy IP portfolio[15] - SKULLPANDA, MOLLY, and DIMOO generated revenues of RMB 1,024.8 million, RMB 1,020.3 million, and RMB 737.7 million respectively in 2023[26] - SKULLPANDA's eighth series "Temperature" achieved sales of RMB 313.8 million by the end of 2023[26] - MOLLY's related revenue increased by 27.2% year-on-year through diversified commercialization operations[26] - THE MONSTERS' related revenue grew by 39.9% year-on-year due to diversified product designs and innovative presentation forms[26] - Hirono's revenue increased by 149.5% year-on-year in 2023[27] - MEGA Collection Series revenue amounted to RMB 681.5 million in 2023[31] - 10 artist IPs recorded sales of over RMB 100 million in 2023[26] Expansion and Operations - Pop Mart opened its first offline stores in France, Malaysia, Thailand, and the Netherlands in 2023[15] - The company redefined its business into four core segments: IP incubation and operation, pop toy merchandizing and retail, theme park and IP experience, and digital entertainment[16] - The company opened 55 new physical stores in Mainland China in 2023, increasing the total number from 329 to 363[37] - The company opened 123 new roboshops in Mainland China in 2023, increasing the total number from 2,067 to 2,190[37] - The company opened its first physical stores in France, Malaysia, Thailand, and the Netherlands in 2023[39] - The company opened its third flagship store in Ximending, Taiwan, setting a new global store record for first-day sales in December 2023[39] - POP LAND, the company's first immersive IP-themed park, opened in Beijing's Chaoyang Park in September 2023[42] - The company had 4,845 employees as of 31 December 2023, including 3,735 sales personnel and 1,110 administrative and development personnel[110] - Staff costs for the year ended 31 December 2023 amounted to RMB 1,048.5 million[110] - The company did not hold any significant investments as of 31 December 2023 but will continue to seek strategic investment opportunities[111] - No material acquisitions or disposals of subsidiaries, associates, or joint ventures were conducted as of 31 December 2023[112] - The company aims to enrich IP types, expand the IP portfolio, and introduce more top-selling series products[117] - International business growth will focus on overseas DTC strategy, physical stores, roboshops, and cross-border e-commerce platforms[118] - The company plans to expand its channel network, improve user shopping experience, and enhance member operations[119] - New brands such as MEGA, GONG, and inner flow will be further developed, along with emerging businesses like amusement parks and games[121] - The company operates in four segments: IP incubation and operation, pop toys and retail, theme park and IP experience, and digital entertainment[148] - The company is a leading pop toy company and a pioneer of pop toy culture in China[148] - The company's integrated operation platform covers the entire industry chain of pop toy IPs[148] - The company had 4,845 employees as of December 31, 2023, with the majority based in China[171] - The company recruits employees through campus job fairs, recruitment agencies, and online channels[171] - The company participates in government statutory employee benefit plans, including social insurance and housing provident funds[171] - The company maintains standard contracts with employees regarding confidentiality, intellectual property, and non-competition[171] - The company has not experienced significant labor disputes or recruitment difficulties as of December 31, 2023[171] - The Group's sales to its five largest customers accounted for less than 30% of total sales for the year ended 31 December 2023[172] - Purchases from the Group's five largest suppliers accounted for 60.6% of total purchases, with the largest supplier contributing 24.5% for the year ended 31 December 2023[172] - The Group's wholesale customers are provided credit terms ranging from 30 to 90 days, with preferential terms of up to 180 days for certain long-term customers[172] - The Group's suppliers may grant credit terms of up to 180 days[172] Digital and Online Performance - Revenue from the Pop Draw mini program on WeChat reached RMB729.3 million in 2023[37] - Revenue from Tmall Flagship stores amounted to RMB322.0 million in 2023[37] - DouYin platform revenue reached RMB283.3 million in 2023, representing a year-on-year increase of 431.2%[37] - The total number of registered members in Mainland China increased from 26.0 million to 34.4 million in 2023, with 8.4 million new registered members[37] - Member sales contributed 92.1% of total sales in 2023, with a repeat purchase rate of 50.0%[37] Dividends and Shareholder Information - The company plans to distribute annual dividends of no less than 20% of its distributable net profit[150] - The board declared a final dividend of RMB 28.21 cents per ordinary share for the year ended December 31, 2023[155] - The final dividend is subject to approval at the annual general meeting on May 21, 2024[155] - The register of members will be closed from May 27 to May 30, 2024, to determine entitlement to the final dividend[159] - The annual general meeting will be held on May 21, 2024[157] - The register of members will be closed from May 16 to May 21, 2024, to determine entitlement to attend and vote at the annual general meeting[158] - The board will review dividend policy based on operational results, cash flows, financial condition, capital requirements, and legal requirements[155] - The company will suspend share transfer registration from May 16, 2024, to May 21, 2024, for the Annual General Meeting[162] - Shareholders must submit transfer forms and related shares by May 14, 2024, to qualify for voting at the Annual General Meeting[162] - The company will suspend share transfer registration from May 27, 2024, to May 30, 2024, for the proposed final dividend[162] - Shareholders must submit transfer documents and related shares by May 24, 2024, to qualify for the final dividend[162] - The issued share capital of the Company was 1,348,243,150 shares as of 31 December 2023[176] - The Company maintained the minimum public float of 25% as required under the Listing Rules for the year ended 31 December 2023[185] Management and Board Information - Mr. Wang Ning, aged 37, is the executive Director, Chairman of the Board, and CEO of the company, responsible for overall strategic planning and management[125] - Ms. Liu Ran, aged 36, is the executive Director and vice president, in charge of the president office of the company[125] - Mr. Si De, aged 35, is the executive Director and chief operating officer, responsible for the operations of the Group and the overall business in mainland China[126] - Mr. Moon Duk Il, aged 45, is the executive Director, vice president, and president of international business, overseeing the Hong Kong, Macao, Taiwan, and overseas business department[126] - Mr. Tu Zheng, aged 46, appointed as non-executive Director in May 2019, responsible for providing professional advice

Revenue and Profit Growth - Revenue for the year ended December 31, 2023, reached RMB 6,301,002 thousand, a significant increase compared to the previous year[2] - Total revenue for 2023 reached RMB 6,876.664 million, with mainland China contributing RMB 5,810.563 million and Hong Kong, Macau, Taiwan, and overseas markets contributing RMB 1,066.101 million[17] - Total revenue for 2023 reached RMB 6,301,002 thousand, a significant increase from RMB 4,617,324 thousand in 2022[19] - Total revenue reached RMB 6,301.0 million, a year-on-year increase of 36.5%[43] - Total revenue increased by 36.5% YoY from RMB 4,617.3 million in 2022 to RMB 6,301.0 million in 2023[51] - Gross profit for 2023 was RMB 3,864,071 thousand, representing a 36.5% increase from 2022[2] - Gross profit for 2023 was RMB 3,864.071 million, with mainland China contributing RMB 3,171.997 million and Hong Kong, Macau, Taiwan, and overseas markets contributing RMB 692.074 million[17] - Gross profit increased by 45.6% from RMB 2,654.5 million in 2022 to RMB 3,864.1 million in 2023, with gross margin improving from 57.5% to 61.3%[67] - Operating profit surged by 111.0% to RMB 1,230,646 thousand in 2023[2] - Operating profit more than doubled, increasing by 111.0% from RMB 583.4 million in 2022 to RMB 1,230.6 million in 2023[71] - Net profit attributable to the company's owners increased by 127.5% to RMB 1,082,344 thousand[2] - Net profit for 2023 was RMB 1,088.771 million, a significant increase from RMB 475.801 million in 2022[17] - The company's profit attributable to owners increased to RMB 1,082,344 thousand in 2023, up from RMB 475,660 thousand in 2022, representing a significant growth[32] - Net profit for the year soared from RMB 475.8 million in 2022 to RMB 1,088.8 million in 2023[73] - Non-IFRS adjusted net profit margin improved to 18.9% in 2023, up from 12.4% in 2022, reflecting better operational performance[74] Regional and Market Performance - The company's Hong Kong, Macau, Taiwan, and overseas businesses maintained rapid growth in 2023, contributing 15.5% of total revenue[15][17] - Revenue from Mainland China business grew to RMB 5,234,901 thousand in 2023, up from RMB 4,163,386 thousand in 2022[19] - Revenue from Hong Kong, Macau, Taiwan, and overseas business surged to RMB 1,066,101 thousand in 2023, compared to RMB 453,938 thousand in 2022[19] - Overseas revenue reached RMB 1,066.1 million, a year-on-year increase of 134.9%, accounting for 16.9% of total revenue[43] - Overseas revenue (including Hong Kong, Macau, Taiwan) increased significantly, with offline channel revenue growing from RMB 150.8 million in 2022 to RMB 640.3 million in 2023[52] - Offline channel revenue in Hong Kong, Macau, Taiwan, and overseas surged by 324.7% from RMB 150.8 million in 2022 to RMB 640.3 million in 2023, with retail store revenue growing by 330.0% and robot store revenue by 277.3%[58][59] - Online channel revenue in Hong Kong, Macau, Taiwan, and overseas increased by 72.7% from RMB 90.2 million in 2022 to RMB 155.8 million in 2023, with Shopee revenue growing by 70.3% and POP MART official website revenue by 45.9%[59][60] - Wholesale and other revenue in Hong Kong, Macau, Taiwan, and overseas grew by 26.8% from RMB 212.9 million in 2022 to RMB 270.0 million in 2023, driven by business expansion and increased brand awareness[61] Product and IP Performance - SKULLPANDA, MOLLY, and DIMOO generated revenues of RMB 1,024.8 million, RMB 1,020.3 million, and RMB 737.7 million respectively in 2023[44] - MEGA COLLECTION series achieved revenue of RMB 681.5 million in 2023[45] - Self-developed products revenue increased by 39.8% from RMB 4,190.0 million in 2022 to RMB 5,858.0 million in 2023, accounting for 93.0% of total revenue[62] - Artist IP revenue grew by 32.5% from RMB 3,639.7 million in 2022 to RMB 4,822.2 million in 2023, with SKULLPANDA, MOLLY, and DIMOO being the top contributors[63] - Licensed IP revenue surged by 88.2% from RMB 550.3 million in 2022 to RMB 1,035.7 million in 2023, due to deeper collaborations with copyright holders[65] Channel and Store Performance - The company opened 55 new offline stores in mainland China, bringing the total to 363 by the end of 2023[46] - Offline channel revenue in Mainland China grew by 46.3% YoY from RMB 2,069.9 million in 2022 to RMB 3,027.8 million in 2023[53] - Retail store revenue in Mainland China increased by 46.6% YoY from RMB 1,691.1 million in 2022 to RMB 2,479.2 million in 2023, with 363 retail stores as of December 31, 2023[54] - Robot store revenue in Mainland China rose by 44.8% YoY from RMB 378.8 million in 2022 to RMB 548.6 million in 2023, with 2,190 robot stores as of December 31, 2023[55] - Online channel revenue in Mainland China decreased by 6.5% YoY from RMB 1,829.8 million in 2022 to RMB 1,710.5 million in 2023[56] - Revenue from the Pop Mart blind box machine dropped by 23.6% YoY from RMB 954.7 million in 2022 to RMB 729.3 million in 2023[56] - Tmall flagship store revenue declined by 30.4% YoY from RMB 462.4 million in 2022 to RMB 322.0 million in 2023[56] - Douyin platform revenue surged by 431.2% YoY from RMB 53.3 million in 2022 to RMB 283.3 million in 2023[56] - Bubble Mart's online抽盒机 generated revenue of RMB 729.3 million in 2023[47] - Tmall flagship store revenue reached RMB 322.0 million in 2023[47] - Douyin platform revenue increased by 431.2% year-on-year to RMB 283.3 million in 2023[47] - The company opened its first offline stores in France, Malaysia, Thailand, and the Netherlands in 2023, and launched its third global flagship store in Taiwan[49] Financial Position and Cash Flow - Total assets as of December 31, 2023, amounted to RMB 9,968,863 thousand, up from RMB 8,580,062 thousand in 2022[6] - Cash and cash equivalents increased significantly to RMB 2,077,927 thousand from RMB 685,314 thousand in 2022[6] - Total equity attributable to the company's owners grew to RMB 7,769,927 thousand from RMB 6,963,288 thousand[7] - Total liabilities increased to RMB 2,188,481 thousand from RMB 1,614,737 thousand in 2022[7] - Non-current assets rose to RMB 2,285,394 thousand from RMB 1,964,527 thousand in 2022[6] - Cash and cash equivalents surged from RMB 685.3 million in 2022 to RMB 2,077.9 million in 2023, driven by increased cash flow from operations and reduced fixed deposits[78] - Trade receivables increased from RMB 194.4 million in 2022 to RMB 321.3 million in 2023, mainly due to business expansion in Hong Kong, Macau, Taiwan, and overseas[76] - Capital expenditures totaled RMB 392.5 million in 2023, up from RMB 347.6 million in 2022, with significant spending on property, plant, and equipment[84] Expenses and Costs - Sales costs for 2023 totaled RMB 2,436.931 million, with mainland China accounting for RMB 2,062.904 million and Hong Kong, Macau, Taiwan, and overseas markets accounting for RMB 374.027 million[17] - Total expenses for 2023 amounted to RMB 5,148,937 thousand, up from RMB 4,119,814 thousand in 2022[21] - Distribution and sales expenses rose by 36.3% from RMB 1,470.8 million in 2022 to RMB 2,004.7 million in 2023, with employee benefits expenses increasing by 51.9% due to workforce expansion[68] - Right-of-use asset depreciation increased by 13.2% from RMB 269.3 million in 2022 to RMB 304.9 million in 2023, driven by the addition of 76 new offline retail stores to support business expansion in mainland China, Hong Kong, Macau, Taiwan, and overseas[69] - General and administrative expenses rose by 3.1% from RMB 686.3 million in 2022 to RMB 707.3 million in 2023, with employee benefits being the largest component, as the number of administrative and R&D staff increased from 1,007 to 1,110[70] - Other income surged by 64.4% from RMB 45.6 million in 2022 to RMB 74.9 million in 2023, primarily due to an increase in government subsidies from RMB 11.6 million to RMB 30.9 million[71] - Net finance income grew significantly from RMB 29.1 million in 2022 to RMB 151.9 million in 2023, mainly due to higher interest income[72] - Income tax expense for 2023 was RMB 326,984 thousand, compared to RMB 163,728 thousand in 2022[25] Shareholder Returns and Share Repurchases - Basic earnings per share rose by 131.4% to RMB 0.81[2] - Basic earnings per share (EPS) rose to RMB 0.81 in 2023 compared to RMB 0.35 in 2022, reflecting improved profitability[32] - Total dividends paid in 2023 were RMB 117,317 thousand, down from RMB 209,490 thousand in 2022[30] - The company proposed a final dividend of RMB 28.21 cents per share for 2023, totaling approximately RMB 378,840,000[30] - The company repurchased 19,947,000 shares in 2023, spending approximately HKD 370,688 thousand (RMB 333,709 thousand), as part of its share buyback program[38] - The company canceled 32,297,000 repurchased shares in 2023, resulting in a reduction of share capital and share premium[39] - The company repurchased 19,947,000 shares on the Hong Kong Stock Exchange during the reporting period, with a total cost of approximately HKD 370.69 million[99] - The highest price paid per share during the repurchase was HKD 21.70 in October, and the lowest was HKD 16.40 in June[100] Accounting and Financial Reporting - The company adopted new and revised accounting standards effective from January 1, 2023, including amendments to IAS 8, IAS 1, and IAS 12, which are not expected to have a significant impact on current or future periods[12] - The company's non-current assets, excluding financial assets at fair value and deferred tax assets, are geographically distributed, with no single customer accounting for 10% or more of total revenue[18] - The company's operating segments are divided into mainland China and Hong Kong, Macau, Taiwan, and overseas markets, with performance evaluated based on revenue, gross profit, and segment performance[16] - The audit committee and board of directors have reviewed the accounting standards and practices adopted by the company, as well as the annual results for the year ended December 31, 2023[101] - The consolidated income statement, consolidated balance sheet, and related notes for the year ended December 31, 2023, have been agreed upon by the company's auditor, PricewaterhouseCoopers, and are consistent with the audited consolidated financial statements[102] - The annual results announcement and 2023 annual report have been published on the Hong Kong Stock Exchange website (www.hkexnews.hk) and the company's website (www.popmart.com)[102] - The 2023 annual report, containing all information required by the listing rules, will be sent to shareholders and published on the Hong Kong Stock Exchange and the company's website at the appropriate time[102] Future Plans and Strategies - The company plans to enrich IP types, expand the IP library, and maintain high-quality design innovation to strengthen IP operations and deepen emotional connections with fans[88] - International business is expected to grow rapidly through the DTC strategy, offline stores, robot stores, and cross-border e-commerce platforms to enhance brand penetration and market share globally[88] - The company aims to expand its channel network, improve operational capabilities, and enhance user experience through innovative retail digital operations[88] - The company will continue to promote pop toy culture, increase fan engagement, and strengthen cultural identity and brand recognition[88] - The company will further develop new brands such as MEGA, Resonance, and Inner Flow, and explore new business areas like theme parks and games to enhance IP interaction and emotional connections[88] - The net proceeds from the IPO amounted to approximately HKD 5,781.7 million, with planned uses including new retail stores, robot stores, overseas market expansion, and potential investments or acquisitions[91][92] - HKD 954.0 million (16.5% of net proceeds) was allocated for opening new retail stores, with HKD 954.0 million already utilized[92] - HKD 346.9 million (6.0% of net proceeds) was allocated for new robot stores, with HKD 262.3 million utilized and HKD 84.6 million remaining[92] - HKD 433.6 million (7.5% of net proceeds) was allocated for overseas market expansion, with HKD 178.7 million remaining[92] - The company plans to use HKD 1,040.7 million (18.0% of net proceeds) to expand its IP library, with HKD 818.7 million remaining unused as of December 31, 2022, and HKD 722.9 million unused as of December 31, 2023[93] - HKD 260.3 million (4.5% of net proceeds) is allocated to enhance the ability to identify outstanding artists, with HKD 29.1 million remaining unused and scheduled for use by December 31, 2025[93] - HKD 693.8 million (12.0% of net proceeds) is designated for acquiring popular IPs, with the full amount remaining unused as of December 31, 2023, and scheduled for use by December 31, 2025[93] Trade Receivables and Payables - Trade receivables increased to RMB 321,337 thousand in 2023 from RMB 194,369 thousand in 2022, indicating higher sales and credit exposure[34] - Trade receivables denominated in RMB accounted for RMB 173,058 thousand in 2023, up from RMB 116,558 thousand in 2022, showing increased domestic sales[37] - The company's trade receivables aged within 30 days increased to RMB 311,485 thousand in 2023 from RMB 181,339 thousand in 2022, indicating improved collection efficiency[35] - The company's impairment provision for trade receivables slightly increased to RMB 7,319 thousand in 2023 from RMB 7,291 thousand in 2022, reflecting stable credit risk management[36] - The company's trade payables for goods increased to RMB 444,944 thousand in 2023 from RMB 259,006 thousand in 2022, reflecting higher procurement activities[40] - The company's payable licensing fees increased to RMB 194,200 thousand in 2023 from RMB 154,823 thousand in 2022, indicating higher IP-related expenses[41] Other Financial Metrics - Government subsidies increased to RMB 30,909 thousand in 2023 from RMB 11,601 thousand in 2022[22] - Net financial income rose to RMB 151,880 thousand in 2023, a substantial increase from RMB 29,103 thousand in 2022[24] - Cumulative registered members in mainland China reached 34.354 million by the end of 2023, with a member repurchase rate of 50.0%[48] - The company launched its first immersive IP theme park, Pop Mart City Park, in Beijing in September 2023, marking a new milestone in IP commercialization[50] - Wholesale and other revenue increased by 88.4% from RMB 263.6 million in 2022 to RMB 496.6 million in 2023, driven by increased sales to distributors and the opening of POP MART City Park in September 2023[57] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures were made as of December 31, 2023[87]

Financial Performance - Revenue for the first half of 2023 reached RMB2,813.8 million, a year-on-year increase of 19.3%[14] - Gross profit increased by 23.9% to RMB1,698.4 million, with a gross profit margin of 60.4%[14] - Operating profit rose by 20.6% to RMB537.8 million[14] - Profit before income tax surged by 35.1% to RMB618.5 million[14] - Net profit attributable to owners of the company increased by 43.2% to RMB476.6 million[14] - Non-IFRS adjusted net profit grew by 42.3% to RMB535.4 million, with a margin of 19.0%[14] - Revenue increased to RMB 2,813,812,000, up 19.3% from RMB 2,358,818,000 in the same period last year[176] - Gross profit rose to RMB 1,698,360,000, a 23.9% increase compared to RMB 1,370,407,000 in the previous year[176] - Operating profit grew to RMB 537,762,000, up 20.6% from RMB 446,057,000 in the same period last year[176] - Profit for the period attributable to owners of the company reached RMB 476,575,000, a 43.2% increase from RMB 332,820,000 in the previous year[176] - Basic earnings per share increased to RMB 35.46 cents, up from RMB 24.18 cents in the same period last year[177] - Total comprehensive income for the period attributable to owners of the company reached RMB 646,192,000, up 12.3% from RMB 575,590,000 in the same period last year[177] - Profit for the period was RMB 476,575,000, contributing to a total comprehensive income of RMB 646,723,000[183] - Total comprehensive income for the period was RMB 575,590 thousand, with profit for the period contributing RMB 332,820 thousand[184] International Market Expansion - International market revenue accounted for 13.4% of total revenue, showing a year-on-year increase of 139.8%[16] - H1 2023 total revenue reached RMB2,813.8 million, a year-on-year increase of 19.3%, with international market revenue accounting for 13.4% and growing 139.8% year-on-year[19] - Overseas business expanded with 55 stores and 143 roboshops in Hong Kong, Macao, Taiwan, and overseas cities, and 28 e-commerce platforms as of June 30, 2023[31] - Revenue from offline sales in Hong Kong, Macao, Taiwan, and overseas increased by 392.4% from RMB38.7 million in H1 2022 to RMB190.4 million in H1 2023, with retail stores contributing 86.7% and roboshops contributing 13.3%[57] - Retail store revenue grew by 374.2% year-on-year to RMB165.0 million in H1 2023, driven by the expansion of retail stores to 38, up by 27 from H1 2022[58] - Roboshop revenue surged by 556.5% year-on-year to RMB25.4 million in H1 2023, with the number of roboshops increasing to 106, up by 81 from H1 2022[59] - Online sales revenue increased by 63.1% from RMB34.8 million in H1 2022 to RMB56.8 million in H1 2023, with Shopee revenue growing by 145.8% and Pop Mart official website revenue declining by 23.3%[60][61] - Wholesales and others revenue in Hong Kong, Macao, Taiwan, and overseas regions rose by 54.6% from RMB83.2 million in H1 2022 to RMB128.6 million in H1 2023[63] - International business will maintain rapid growth through the overseas DTC strategy, physical stores, and e-commerce platforms[104][107] Product and IP Performance - The company launched several new product series that gained popularity and achieved excellent sales performance[16] - Revenue from SKULLPANDA, MOLLY, and DIMOO in H1 2023 reached RMB526.4 million, RMB411.4 million, and RMB362.0 million, with year-on-year growth of 14.0%, 1.8%, and 21.3% respectively[18][21] - Revenue from Hirono, launched by PDC, surged 191.3% year-on-year to RMB109.4 million in H1 2023[18][21] - MEGA COLLECTION achieved total revenue of RMB242.3 million in H1 2023, with the Grand series' ceramic material pop garage kits gaining widespread consumer attention[23][26] - Artist IPs contributed 76.9% of total revenue in H1 2023, with SKULLPANDA, MOLLY, and DIMOO being the top-performing IPs[66] - Licensed IPs revenue grew to RMB421.5 million in H1 2023, representing 15.0% of total revenue, up from 12.7% in H1 2022[66] - Artist IP revenue increased by 16.7% from RMB1,855.0 million in H1 2022 to RMB2,164.3 million in H1 2023, with its revenue share decreasing from 78.7% to 76.9%[68] - Licensed IP revenue grew by 40.2% from RMB300.6 million in H1 2022 to RMB421.5 million in H1 2023, driven by diversified collaborations and new product launches[68] - Proprietary products revenue increased by 20.0% from RMB2,155.7 million in H1 2022 to RMB2,585.8 million in H1 2023, accounting for 91.9% of total revenue[65] - Pop Mart proprietary products' gross profit grew by 25.2% from RMB1,303.4 million in H1 2022 to RMB1,631.7 million in H1 2023, with gross margin increasing from 60.5% to 63.1%[69] Channel and Sales Performance - Company opened 19 new physical stores and 118 roboshops in Mainland China in H1 2023, increasing total stores to 340 and roboshops to 2,185[24][27] - Revenue from DouYin platform surged 569.0% year-on-year to RMB109.5 million in H1 2023, driven by high-quality live content[29][32] - Registered members in Mainland China increased to 30.388 million as of June 30, 2023, with members contributing 92.2% of total sales and a repeat purchase rate of 44.5%[30][33] - The company's offline channels in Mainland China generated revenue of RMB1,450,567 thousand, accounting for 51.5% of total revenue, with a gross profit margin of 63.0%[39] - Online channels in Mainland China contributed RMB817,418 thousand, representing 29.1% of total revenue, with a gross profit margin of 59.8%[39] - Wholesale and other channels in Mainland China generated RMB170,047 thousand, accounting for 6.0% of total revenue, with a gross profit margin of 35.6%[39] - The company's offline channels in Hong Kong, Macao, Taiwan, and overseas generated revenue of RMB190,359 thousand, accounting for 6.8% of total revenue, with a gross profit margin of 75.9%[39] - Online channels in Hong Kong, Macao, Taiwan, and overseas contributed RMB56,791 thousand, representing 2.0% of total revenue, with a gross profit margin of 75.3%[39] - Wholesale and other channels in Hong Kong, Macao, Taiwan, and overseas generated RMB128,630 thousand, accounting for 4.6% of total revenue, with a gross profit margin of 38.3%[39] - The company's total revenue from Hong Kong, Macao, Taiwan, and overseas was RMB375,780 thousand, representing 13.4% of total revenue, with a gross profit margin of 62.9%[39] - Revenue from offline sales in Mainland China increased by 32.4% from RMB1,095.7 million in H1 2022 to RMB1,450.6 million in H1 2023[43] - Retail store revenue grew by 32.3% year-on-year, reaching RMB1,179.5 million in H1 2023, driven by an increase in store count to 340 and improved store locations[44][45] - Roboshop revenue increased by 32.9% year-on-year to RMB271.1 million in H1 2023, with the number of roboshops rising to 2,185[52] - Online channel revenue decreased by 16.4% from RMB977.9 million in H1 2022 to RMB817.4 million in H1 2023, with Pop Draw revenue dropping by 31.4% and Tmall flagship store revenue declining by 36.6%[54][55] - DouYin platform revenue surged by 569.0% from RMB16.4 million in H1 2022 to RMB109.5 million in H1 2023[55] - Wholesales and others revenue in Mainland China increased by 32.3% to RMB170.1 million in H1 2023, driven by distributor Nanjing Pop Mart's store sales growth[55] - The company will expand its channel network to reach more users and improve user shopping experience[105][108] Expenses and Costs - Distribution and selling expenses increased by 26.7% from RMB693.2 million in H1 2022 to RMB878.3 million in H1 2023, driven by employee benefits and right-of-use asset depreciation[69] - Employee benefit expenses for sales personnel increased by 43.6% from RMB196.0 million in H1 2022 to RMB281.4 million in H1 2023, with headcount rising from 2,940 to 3,189[69] - Depreciation of right-of-use assets increased by 36.3% from RMB107.8 million in H1 2022 to RMB146.9 million in H1 2023, due to 59 additional offline retail outlets[69] - General and administrative expenses increased by 2.7% from RMB322.7 million in H1 2022 to RMB331.3 million in H1 2023, with employee benefit expenses accounting for a significant portion[70] - Employee benefit expenses for administrative and design personnel increased by 4.3% from RMB206.2 million in H1 2022 to RMB215.1 million in H1 2023, with headcount rising from 940 to 959[71] - Other income increased by 53.8% from RMB24.3 million in H1 2022 to RMB37.4 million in H1 2023, driven by a significant rise in government grants from RMB4.8 million to RMB21.2 million, while IP license fee and other services income decreased from RMB18.9 million to RMB15.5 million[72][76] - Other gains, net, decreased significantly from RMB67.1 million in H1 2022 to RMB11.6 million in H1 2023, primarily due to fair value changes of equity and fund investments in 2022[73][77] - General and administrative expenses increased by 2.7% from RMB322.7 million in H1 2022 to RMB331.3 million in H1 2023, with employee benefits rising by 4.3% to RMB215.1 million due to increased headcount and salary adjustments[75] - Finance income, net, surged from RMB7.0 million in H1 2022 to RMB63.4 million in H1 2023, mainly due to higher interest income[79] - Income tax expense increased from RMB125.0 million in H1 2022 to RMB141.3 million in H1 2023, while the effective tax rate decreased from 27.3% to 22.8%[79] - Share-based compensation expenses amounted to RMB 58,123,000[183] - Share-based compensation expenses were recorded at RMB 47,874 thousand[184] Assets and Liabilities - Total assets increased by 5.7% to RMB9,065.3 million, with current assets growing by 7.0%[15] - Current liabilities rose by 19.0% to RMB1,345.7 million[15] - Total assets grew to RMB 9,065,337,000, a 5.7% increase from RMB 8,580,062,000 at the end of 2022[179] - Cash and cash equivalents surged to RMB 1,473,382,000, more than double the RMB 685,314,000 at the end of 2022[179] - Trade receivables increased to RMB 208,911,000, up 7.5% from RMB 194,369,000 at the end of 2022[179] - Inventories decreased to RMB 758,774,000, down 12.5% from RMB 866,985,000 at the end of 2022[179] - Total equity increased to RMB 7,305,978,000 as of 30 June 2023, up from RMB 6,965,325,000 at the end of 2022[180] - Retained earnings rose to RMB 2,745,926,000, compared to RMB 2,269,351,000 at the end of 2022[180] - Total liabilities increased to RMB 1,759,359,000 from RMB 1,614,737,000 at the end of 2022[180] - Lease liabilities decreased to RMB 385,774,000 for non-current liabilities and RMB 292,116,000 for current liabilities[180] - Trade payables increased to RMB 349,477,000 from RMB 259,006,000 at the end of 2022[180] - Net current assets grew from RMB5,484.8 million as of December 31, 2022, to RMB5,733.4 million as of June 30, 2023, reflecting stable financial management[83][85] - Trade receivables increased from RMB194.4 million as of 31 December 2022 to RMB208.9 million as of 30 June 2023, with turnover days increasing from 12 days to 13 days[86] - Inventories decreased from RMB867.0 million as of 31 December 2022 to RMB758.8 million as of 30 June 2023, with turnover days decreasing from 156 days to 132 days[86] - Cash and cash equivalents increased from RMB685.3 million as of 31 December 2022 to RMB1,473.4 million as of 30 June 2023, primarily due to increased cash from operating activities and redemption of a RMB290.0 million fixed-term deposit[86] - Trade payables increased from RMB259.0 million as of 31 December 2022 to RMB349.5 million as of 30 June 2023, with turnover days remaining at 49 days[86] - The gearing ratio increased from 18.8% as of 31 December 2022 to 19.4% as of 30 June 2023[87] - Capital expenditures for the first half of 2023 totaled RMB214.079 million, compared to RMB162.113 million in the first half of 2022[90] - The Group's cash and cash equivalents, restricted cash, and term deposits with an initial term over three months and within one year amounted to RMB 4,066,222,000 as of 30 June 2023[193] - Trade payables due within 12 months increased to RMB 349,477,000 as of 30 June 2023, compared to RMB 259,006,000 as of 31 December 2022[194] - License fees payables due within 12 months increased to RMB 162,238,000 as of 30 June 2023, compared to RMB 133,517,000 as of 31 December 2022[194] - Total financial liabilities due within 12 months increased to RMB 1,039,752,000 as of 30 June 2023, compared to RMB 926,997,000 as of 31 December 2022[194] - Financial assets at fair value through profit or loss totaled RMB 472,738,000 as of 30 June 2023, with Level 3 assets accounting for RMB 462,037,000[199] - Investment in associates measured at fair value through profit or loss increased to RMB 235,497,000 as of 30 June 2023, compared to RMB 231,808,000 as of 31 December 2022[199][200] - Private equity fund investments decreased to RMB 179,948,000 as of 30 June 2023, compared to RMB 181,871,000 as of 31 December 2022[199][200] - Other unlisted investments increased to RMB 46,592,000 as of 30 June 2023, compared to RMB 45,355,000 as of 31 December 2022[199][200] - Listed equity securities-stock decreased to RMB 10,701,000 as of 30 June 2023, compared to RMB 12,829,000 as of 31 December 2022[199][200] Cash Flow and Financing - Net cash generated from operating activities increased to RMB 1,092,337 thousand in 2023, compared to RMB 373,578 thousand in 2022[187] - Cash generated from operations rose significantly to RMB 1,113,479 thousand in 2023 from RMB 523,391 thousand in 2022[187] - Net cash used in investing activities improved to RMB 82,034 thousand in 2023, compared to a net cash used of RMB 4,209,902 thousand in 2022[187] - Net cash used in financing activities increased to RMB 558,287 thousand in 2023 from RMB 480,561 thousand in 2022[188] - Cash and cash equivalents at the end of the period stood at RMB 1,473,382 thousand in 2023, up from RMB 1,075,380 thousand in 2022[188]