Core Viewpoint - Recently, Pop Mart Supply Chain (Guangdong) Co., Ltd. was established with a registered capital of 10 million RMB, focusing on supply chain management and various retail services [1][2]. Company Information - The legal representative of the company is Yuan Junjie [1][2]. - The company is wholly owned by Beijing Pop Mart Trading Co., Ltd. [1]. - The registered capital is 10 million RMB [1][2]. - The company is classified as a limited liability company (sole proprietorship) [2]. Business Scope - The business scope includes supply chain management services, wholesale and retail of clothing and accessories, ordinary goods warehousing services, domestic freight forwarding, non-residential real estate leasing, network technology services, and information technology consulting services [1][2]. - Additional activities include sales of textiles, jewelry, bags, shoes, electronic products, and various consumer goods [2].

Summary of Pop Mart Conference Call Company Overview - **Company**: Pop Mart - **Date**: September 8, 2025 Key Points Industry and Market Performance - **Pricing Strategy**: The new mini Labubu series is priced at 79 yuan, making it less favorable for scalpers and more accessible for regular consumers [2][3] - **Sales Growth**: In August, Pop Mart's Douyin channel experienced significant year-on-year growth, matching the absolute values of January's peak season, driven by restocking and new product launches [2][4] - **Offline Store Performance**: The company reported a nearly 60% year-on-year growth in offline store efficiency, outperforming other brands in the industry, indicating strong offline operational capabilities [2][4] Product Development - **New Product Launches**: August saw a notable increase in new product releases compared to July, with popular items including the "Big Wind Day" plush doll and the mini Labubu series, which features 28 products [3] - **Future Products**: Upcoming releases include anniversary products, Halloween specials, and region-specific items, which are expected to generate positive market responses [2][6] Channel Strategy - **Douyin Channel Success**: The Douyin channel's performance is attributed to successful product launches and influencer-driven consumption, with innovative attempts from the Helono Home account also performing well [4] - **Store Adjustments**: Ongoing adjustments in domestic offline stores include relocating shops to better positions and consolidating smaller stores into larger ones, which is expected to enhance store efficiency and brand visibility in the long term [7] International Expansion - **Overseas Market Growth**: The company is rapidly expanding internationally, with new store openings in North America and Southeast Asia in August, indicating a proactive global strategy [2][8] - **Global Brand Interest**: Google Trends data shows sustained high search interest in the Pop Mart brand globally, particularly in the UK, where related keywords have surged [9] Organizational Changes - **Structural Adjustments**: In April, Pop Mart restructured its organization to enhance market responsiveness, with a focus on local product development and a strengthened middle office to support various market segments [10] - **Global Product Strategy**: Currently, 95% of products are global, with plans to increase local product offerings to 10%-15% in the future [10] Future Directions - **Strategic Focus**: The company aims to integrate domestic and international IPs through a global channel strategy, which is expected to unlock greater growth potential [11] - **Investment Outlook**: Given the recent adjustments and product/channel performance, there is a high certainty of future earnings growth, suggesting that investors should continue to monitor the company's developments [12]

Core Viewpoint - The recent sharp decline in the secondary market prices of LABUBU has led to a significant drop in Pop Mart's stock price, but Morgan Stanley remains optimistic, suggesting that the market may be overreacting to high-frequency data [1][3]. Group 1: Stock Performance and Market Reaction - On September 8, Pop Mart's stock fell by 7.5%, closing below 300 HKD, primarily due to the plummeting prices of its LABUBU series in the secondary market [1][3]. - The LABUBU series, once valued at over 10,000 HKD, has seen its prices halved, leading to a rapid cooling of the overall collectible toy speculation [1][4]. Group 2: Morgan Stanley's Analysis - Morgan Stanley's report indicates that the current stock price fluctuations are driven more by technical and emotional factors rather than a deterioration in fundamentals [3][6]. - The report emphasizes that secondary market prices do not accurately reflect the true supply and demand situation, as the secondary market constitutes only a small portion of total supply and demand [3][6]. Group 3: LABUBU Price Trends - Data shows that the mini LABUBU series, released on August 28, saw its hidden variants initially trading close to 1,000 HKD, but prices began to decline within a week, with current secondary prices ranging from 1,400 to 1,850 HKD [4][5]. - The third generation of LABUBU has also experienced a price drop, with transaction prices falling from 1,380 HKD in June to the current range of 600 to 700 HKD [4]. Group 4: Market Sentiment and Speculation - The drastic price fluctuations have led some speculators to announce a "pause in purchases," as they await a market recovery, facing potential losses from their previous investments [5][6]. - Morgan Stanley notes that this is the third instance of market concern driven by LABUBU's secondary prices, indicating a pattern of overreaction [6]. Group 5: Long-term Growth Prospects - Morgan Stanley maintains an "Overweight" rating on Pop Mart, viewing it as a "Top Pick," and believes that the current valuation offers investment opportunities despite the recent volatility [8]. - LABUBU is recognized as a key growth driver, contributing 35% of sales in the first half of 2025, but other IPs like Molly, Skullpanda, Dimoo, and Crybaby also contribute significantly to revenue [8][9]. - The company is noted for its disciplined growth strategy, with a 117% increase in offline sales in Greater China, yet only adding 12 new stores, reflecting a cautious approach to expansion [9].

Group 1 - The stock price of Pop Mart (09992.HK) experienced significant volatility, closing at HKD 287.8 per share with a decline of 7.04%, raising concerns about the pricing system in the secondary market for the trendy toy industry [1] Group 2 - Data from the secondary trading platform indicates that the resale price of the fourth generation LABUBU mini set has dropped from an initial range of HKD 1400 to around HKD 1850 within a week [3] - Specific less popular models, identified by letters "I" and "N", have seen their prices fall below HKD 100, with current transaction prices around HKD 81 [3] - Rare hidden models have also experienced significant price corrections, with one model featuring a "heart" pattern averaging a price drop of 6.68% over three days, reaching a low of HKD 595, while another unnamed hidden model saw a 9.96% decline, with a minimum transaction price of HKD 498 [3] - The downward price trend is not limited to new series, as early generation LABUBU toys have also faced pressure, with second-hand prices declining by HKD 3 to HKD 11 daily, causing asset depreciation for some classic model holders [3] - This cross-generational price adjustment reflects a re-evaluation of specific IPs within the collectible market [3]

Core Insights - The article discusses the potential decline of the Labubu craze, indicating that interest may be waning in the market [1] Group 1: Market Trends - Recent sales data shows a significant drop in Labubu merchandise, with a reported decrease of 30% in sales over the last quarter [1] - Social media engagement related to Labubu has also seen a decline, with a 25% reduction in mentions and interactions compared to previous months [1] Group 2: Consumer Behavior - Surveys indicate that consumer interest in Labubu products has shifted, with only 40% of respondents expressing continued enthusiasm for the brand [1] - The demographic of Labubu's primary consumers is changing, with younger audiences showing less interest than before [1] Group 3: Competitive Landscape - Competitors in the market are beginning to capitalize on the potential decline of Labubu, launching new products that appeal to the same consumer base [1] - The article highlights that several brands have reported a 15% increase in sales as they attract former Labubu customers [1]

Core Points - The Hang Seng Index and other major indices are undergoing significant adjustments, effective from September 8, 2025 [1][2][3] - The number of constituent stocks in the Hang Seng Index will increase from 85 to 88, with new additions including China Telecom, JD Logistics, and Pop Mart [1] - The Hang Seng Biotechnology Index will see a reduction in constituent stocks from 50 to 30, with the addition of InnoCare Pharma and the removal of several others [2] - The Hang Seng Composite Index will increase from 502 to 504 constituent stocks, adding 24 new stocks while removing 22 [3] - The Hang Seng Sustainable Development Index will maintain 30 stocks, adding Sino Land, Cheung Kong Infrastructure, and AAC Technologies, while removing several others [4] - The Hang Seng Technology Index will remain unchanged with 30 stocks [5] Industry Insights - The Hong Kong stock market may experience a turnaround in fundamentals in the second half of the year, driven by policy changes and increased capital expenditure in AI by internet giants [6] - The STAR Market has become the highest proportion of index investment in A-shares, with significant growth in ETF products related to the STAR Market [8] - There has been a notable increase in merger and acquisition activities in the semiconductor sector, with several major companies announcing plans [9]

Core Viewpoint - The stock price of Pop Mart (09992.HK) has experienced a significant decline despite being included in the Hang Seng Index, indicating potential underlying issues in market demand and product pricing [3][7]. Group 1: Stock Performance - On September 8, Pop Mart's stock price dropped by 7.11% to HKD 287.6 per share, resulting in a market capitalization loss of HKD 29.545 billion [1]. - Since reaching a historical high of HKD 339.8 per share on August 26, the stock has retreated by 11.94%, while the Hang Seng Index only declined by 0.76% during the same period [3]. Group 2: Product Pricing and Market Demand - The secondary market prices for Pop Mart's core IP, Labubu, have been declining, with first to third generation products experiencing daily price drops of HKD 3-11, and the average transaction price for the fourth generation mini Labubu dropping over 50% from its initial release [3]. - Following the online release of the fourth generation mini Labubu series on August 28, initial demand was high, with prices for complete sets soaring to HKD 3,200, but by September 8, the average transaction price on the platform had fallen to HKD 1,446, indicating a more than 50% decrease [5]. Group 3: Market Sentiment and Future Outlook - Some resellers have announced a pause in acquiring Labubu series products due to significant price declines, indicating a cautious market sentiment [5]. - Economic experts suggest that the stock price of Pop Mart is closely tied to product market demand, and the current situation reflects a potential irrational bubble that could lead to further price declines if not stabilized [7]. - Analysts from Zhongtai Securities note that while Pop Mart has developed a gradient IP matrix and established a world-class IP in Labubu, there are risks associated with the sustainability of consumer interest and the potential for declining product sales if new IPs are not continuously developed [8].

Market Overview - The Hong Kong stock market saw a significant afternoon rally on September 8, with the Hang Seng Tech Index rising by 1.17%, the Hang Seng Index increasing by 0.85%, and the Hang Seng China Enterprises Index up by 0.71%. Net inflow from southbound funds reached HKD 16.7 billion [2][4]. - The total trading volume for the day was HKD 286 billion [2]. Technology Sector - Major technology stocks experienced substantial gains, with Baidu Group rising by 9.48%, NetEase and Alibaba increasing by over 4%, and Xiaomi and Tencent both up by over 2% [4][5]. - Alibaba's trading volume exceeded HKD 20 billion, while Tencent's reached HKD 13.37 billion [4]. Paper Industry - The paper sector showed strong performance throughout the day, with shares of Chenming Paper, Lee & Man Paper, and Nine Dragons Paper rising by 8.05%, 4.83%, and 4.63%, respectively [7][8]. - Several paper manufacturers have implemented a dual strategy of price increases and production halts, with price hikes announced in early September [8]. Precious Metals Sector - The performance of the precious metals sector was mixed, with companies like WanGuo Gold, China Silver, Lingbao Gold, and Shandong Gold seeing increases of 3.75%, 2%, 1.32%, and 0.73%, respectively [9][10]. - Conversely, companies such as Luoyang Molybdenum, Nanshan Aluminum, and Zijin Mining experienced declines [10][11]. Individual Stock Movements - Pop Mart saw a significant decline of over 7%, attributed to a surge in short-selling activity, with 6.26 million shares shorted on September 5, compared to 200,000 shares on September 8 [4][13][14]. - Skyworth Group experienced a notable surge, closing up by 34.41% at HKD 4.57 per share, with trading volume increasing to HKD 137 million [4][15].

Core Viewpoint - The stock price of Pop Mart (09992.HK) has experienced a significant decline despite being included in the Hang Seng Index, indicating a disconnect between market sentiment and index inclusion benefits [2][7]. Group 1: Stock Performance - On September 8, Pop Mart's stock price dropped by 7.11% to HKD 287.6 per share, resulting in a market capitalization loss of HKD 29.545 billion [2]. - Since reaching a historical high of HKD 339.8 per share on August 26, the stock has retreated by 11.94%, while the Hang Seng Index only declined by 0.76% during the same period [2]. Group 2: Product Market Dynamics - The secondary market prices for Pop Mart's core IP, Labubu, have been declining, with first to third generation products experiencing daily price drops of HKD 3-11, and the average transaction price for the fourth generation mini Labubu shrinking by over 50% compared to its initial release [2]. - The fourth generation mini Labubu series was launched online on August 28 at a price of HKD 79 per unit, with initial demand leading to rapid sellouts and inflated secondary market prices, where a complete set was once priced at HKD 3,200 [2]. Group 3: Market Sentiment and Future Outlook - Market analysts suggest that the current decline in Labubu's prices may lead to a continuous downward trend, as the demand for collectible toys is closely tied to market sentiment [7]. - There are concerns regarding the sustainability of Pop Mart's IP lifecycle, emphasizing the need for continuous innovation and diversification in product offerings to maintain market interest and support stock prices [7].

Core Viewpoint - Despite being included in the Hang Seng Index, Pop Mart's stock price has continued to decline, indicating a disconnect between market sentiment and index inclusion benefits [1][2]. Group 1: Stock Performance - On September 8, Pop Mart's stock price dropped by 7.11% to HKD 287.6 per share, resulting in a market capitalization loss of HKD 29.545 billion [1]. - Since reaching a historical high of HKD 339.8 per share on August 26, the stock has retreated by 11.94%, while the Hang Seng Index only declined by 0.76% during the same period [1]. Group 2: Product Market Dynamics - The secondary market prices for Pop Mart's core IP, Labubu, have been declining, with first to third generation products experiencing daily price drops of HKD 3-11, and the average transaction price for the fourth generation mini Labubu dropping over 50% from its initial release [1]. - Following the online release of the fourth generation mini Labubu series on August 28, initial demand was high, with prices for complete sets soaring to HKD 3,200, but by September 8, the average transaction price had fallen to HKD 1,446 [2]. Group 3: Market Sentiment and Future Outlook - Some resellers have paused their purchasing strategies for the Labubu series due to significant price declines, indicating a cautious market outlook [2]. - A notable economist pointed out that the stock price of toy companies is correlated with product market demand, and the current situation with Labubu suggests a potential for continued price declines if the market does not stabilize [2]. - Analysts from Zhongtai Securities noted that while Pop Mart has developed a tiered IP matrix and established a world-class IP in Labubu, there are risks related to the sustainability of consumer interest in IP-derived products and potential sales declines due to insufficient new product offerings [3].