POP MART(09992)2021-04-26 11:11Financial Performance - Revenue for 2020 reached RMB 2,513,471 thousand, a significant increase from RMB 1,683,434 thousand in 2019[17] - Gross profit for 2020 was RMB 1,594,108 thousand, with a gross profit margin of 63.4%, slightly down from 64.8% in 2019[17] - Operating profit for 2020 stood at RMB 718,783 thousand, compared to RMB 598,794 thousand in 2019[17] - Net profit margin for 2020 was 20.8%, a decrease from 26.8% in 2019[17] - Profit attributable to equity owners of the company for 2020 was RMB 523,505 thousand, up from RMB 451,118 thousand in 2019[17] - The company's net profit margin after extraordinary items for 2020 was 23.5%, compared to 27.9% in 2019[17] - Total revenue for 2020 reached RMB 2.51 billion, a year-on-year increase of 49.3%[20] - Adjusted net profit for 2020 was RMB 590 million[20] - The company's revenue increased from RMB1,683.4 million in 2019 to RMB2,513.5 million in 2020, a year-on-year increase of 49.3%[37] - Revenue increased by 49.3% from RMB1,683.4 million in 2019 to RMB2,513.5 million in 2020[39] - Retail store revenue grew by 35.5% to RMB1,002.1 million in 2020, driven by the addition of 76 new retail stores[41] - Online sales revenue surged by 76.5% to RMB951.9 million in 2020, primarily due to increased sales on Tmall and Pop Draw, and the addition of new channels like JD.com[41] - Roboshop revenue increased by 32.2% to RMB328.7 million in 2020, with 526 new roboshops added[41] - Wholesale and other revenue rose by 48.0% to RMB230.9 million in 2020, with overseas market expansion contributing significantly[41] - Propriety products accounted for 85.0% of total revenue in 2020, growing by 54.3% to RMB2,136.2 million[45] - Propriety IP revenue increased by 56.3% to RMB979.9 million in 2020, driven by sales growth of Dimoo and new IP SKULLPANDA[45] - Exclusive licensed IP revenue grew by 19.2% to RMB711.9 million in 2020, with The Monsters contributing significantly[45] - Non-exclusive licensed IP revenue surged by 178.1% to RMB444.4 million in 2020, due to new product series and increased IPs[45] - Total retail store revenue increased from RMB739.7 million in 2019 to RMB1,002.1 million in 2020, with a significant growth in second-tier and other cities from RMB89.1 million to RMB213.7 million[48] - Total roboshop revenue grew from RMB248.6 million in 2019 to RMB328.7 million in 2020, with new first-tier cities contributing RMB107.1 million, up from RMB78.4 million in 2019[49] - Online revenue surged by 76.5% from RMB539.2 million in 2019 to RMB951.9 million in 2020, driven by a 72.0% increase in Pop Draw revenue and a 61.5% increase in Tmall flagship store revenue[51] - Revenue from JD.com flagship store, a new channel in 2020, contributed RMB36.2 million, accounting for 3.8% of total online revenue[51] - Revenue from other e-commerce platforms saw a significant increase of 162.2%, rising from RMB16.5 million in 2019 to RMB43.2 million in 2020[51] - Sales costs increased by 55.0% from RMB593.1 million in 2019 to RMB919.4 million in 2020, driven by business expansion and revenue growth[53] - Gross profit increased by 46.2% from RMB1,090.3 million in 2019 to RMB1,594.1 million in 2020, with gross profit margin dropping from 64.8% to 63.4%[53] - Gross profit from Pop Mart propriety products increased by 48.8% to RMB1,467.9 million in 2020, with gross profit margin dropping from 71.2% to 68.7% due to rising raw material costs[53] - Distribution and selling expenses increased by 73.2% to RMB630.1 million in 2020, driven by employee benefits, retail store expansion, and logistics costs[54][57] - General and administrative expenses increased by 96.5% to RMB280.0 million in 2020, due to higher employee benefits and IPO listing expenses[55][58] - Net impairment losses on financial assets decreased from RMB3.1 million in 2019 to -RMB0.4 million in 2020 due to improved receivables management[56][59] - Other income increased by 167.1% from RMB17.0 million in 2019 to RMB45.4 million in 2020, driven by a RMB22.0 million increase in government grants and a RMB6.6 million increase in IP license fee income[60] - Operating profit rose by 20.0% from RMB598.8 million in 2019 to RMB718.8 million in 2020[60] - Share of profit from investments accounted for using the equity method decreased by 22.0% from RMB5.0 million in 2019 to RMB3.9 million in 2020[60] - Finance expenses, net, increased by 66.7% from RMB5.4 million in 2019 to RMB9.0 million in 2020 due to higher lease liabilities from retail store expansion[60] - Income tax expense increased from RMB147.3 million in 2019 to RMB184.1 million in 2020, with the effective tax rate rising from 24.6% to 26.0%[61][64] - Profit for the year grew by 16.0% from RMB451.1 million in 2019 to RMB523.3 million in 2020[62][65] - Non-IFRS adjusted net profit for 2020 was RMB590.5 million, compared to RMB469.1 million in 2019, with a non-IFRS adjusted net profit margin of 23.5% in 2020 versus 27.9% in 2019[67] - Listing expenses in 2020 were RMB44.0 million, significantly higher than the RMB16.5 million in 2019[67] - Expenses related to the redesignation of ordinary shares as preference shares in 2020 amounted to RMB16.9 million[67] - Changes in the fair value of convertible redeemable preference shares in 2020 were RMB6.3 million[67] - Net current assets increased significantly from RMB335.0 million in 2019 to RMB5,590.6 million in 2020, primarily due to a rise in cash and cash equivalents by RMB5,355.6 million from IPO proceeds and an increase in inventories by RMB129.1 million to meet growing product demand[69] - Trade receivables increased from RMB45.6 million in 2019 to RMB78.3 million in 2020, with turnover days rising from 6 days to 9 days, reflecting increased third-party payments[69] - Inventories grew from RMB96.3 million in 2019 to RMB225.4 million in 2020, with turnover days increasing from 46 days to 78 days due to higher demand from business expansion and new IPs[70][74] - Cash and cash equivalents surged from RMB324.6 million in 2019 to RMB5,680.2 million in 2020, driven by IPO proceeds and business growth[72][76] - Trade payables increased from RMB49.4 million in 2019 to RMB115.8 million in 2020, with turnover days rising from 29 days to 40 days due to higher procurement and extended credit terms from suppliers[73][77] - Other payables and accruals rose from RMB122.1 million in 2019 to RMB202.3 million in 2020, driven by expansion in retail stores, IPO listing expenses, and increased logistics and platform service fees[78] - Property, plant, and equipment increased from RMB103.6 million in 2019 to RMB238.3 million in 2020, mainly due to retail store expansion, new molds, and roboshop network growth[79] - Intangible assets grew from RMB18.6 million in 2019 to RMB92.7 million in 2020, primarily due to the acquisition of new licensed IPs in 2020[80] - Other payables and accrued expenses increased from RMB 122.1 million as of December 31, 2019, to RMB 202.3 million as of December 31, 2020, driven by retail expansion, IPO-related expenses, and increased logistics and platform service fees[81] - Property, plant, and equipment increased from RMB 103.6 million as of December 31, 2019, to RMB 238.3 million as of December 31, 2020, due to retail store network expansion and product portfolio growth[82] - Intangible assets increased from RMB 18.6 million as of December 31, 2019, to RMB 92.7 million as of December 31, 2020, primarily due to new licensed IP acquisitions[83] - Right-of-use assets increased from RMB 178.9 million as of December 31, 2019, to RMB 287.8 million as of December 31, 2020, due to retail store and roboshop network expansion[84] - The company's gearing ratio decreased from 44.4% as of December 31, 2019, to 12.1% as of December 31, 2020[84] - Capital expenditures for 2020 totaled RMB 223.6 million, including RMB 176.0 million for property, plant, and equipment and RMB 47.6 million for intangible assets[89] - The company had 2,320 employees as of December 31, 2020, with staff costs amounting to RMB 243.0 million for the year[90] - The company plans to utilize net proceeds from its listing for expansion projects to strengthen its position in the pop toy culture market[91] - The company faces risks related to product popularity, IP licensing, brand recognition, third-party manufacturing, and macroeconomic slowdown[93] - Total number of employees as of December 31, 2020: 2,320, including 1,527 sales employees and 793 administrative and development personnel[94] - Employee costs for the year ended December 31, 2020: RMB 243.0 million[94] - No significant investments held as of December 31, 2020, with plans to use net proceeds for expansion projects to strengthen the company's position as a pioneer and promoter of Chinese pop toy culture[95] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2020[96] - Core business strategy focuses on IP, aiming to enrich IP types, expand the IP base, and introduce more head series products and pop toy categories beyond blind boxes[97] - Plans to expand channel networks to reach more users, enhance operating capabilities, improve user shopping experience, and promote innovative retail digitalized operations[97] - Commitment to promoting pop toy culture through diversified means, increasing fan stickiness, and enhancing cultural identity and brand awareness among fans[97] - No significant events requiring additional disclosures or adjustments occurred after December 31, 2020[97] - The company's financial results for 2020 are detailed in the consolidated financial statements on pages 136 to 264 of the annual report[120] - The company's annual general meeting is scheduled for June 1, 2021, with the final dividend expected to be distributed on July 30, 2021, if approved[125] - The company has proposed a final dividend of RMB 14.94 cents per share for the year ended December 31, 2020, with a total amount of RMB 209,402,000 to be paid to shareholders registered on June 7, 2021[129] - The register of members will be closed from June 7, 2021, to June 9, 2021, for determining entitlement to the proposed final dividends[129] - Shareholders must lodge transfer documents and share certificates by June 4, 2021, to qualify for the final dividends[129] - The Annual General Meeting (AGM) will be held on June 1, 2021, and the final dividend is subject to approval at the AGM[129] - The company will suspend share transfer registration from May 27, 2021, to June 1, 2021, for determining voting eligibility at the AGM[131] - The company complied with all relevant laws and regulations, including the Hong Kong Companies Ordinance and the Listing Rules, during the year ended December 31, 2020[135] - The company is committed to minimizing its environmental impact by reducing its carbon footprint and promoting sustainability[133] - No material litigation, arbitration, or administrative proceedings were pending or foreseeable against the company or its directors as of the annual report date[134] - The company's business review and performance analysis, including key financial indicators, are detailed in the "Management Discussion and Analysis" section of the annual report[132] - The company adheres to environmental protection laws and regulations, with details provided in the "Environmental, Social, Governance Report" of the annual report[137] - The company had a total of 2,320 full-time employees as of the annual report date, with the majority based in the PRC[139] - The company's sales to its five largest customers accounted for 5.1% of total sales, with the largest customer contributing 3.3% for the year ended 31 December 2020[140] - Purchases from the company's five largest suppliers accounted for 44.2% of total purchases, with the largest supplier contributing 13.4% for the year ended 31 December 2020[140] - The company provides credit terms to wholesale customers ranging from 30 to 90 days, with preferential terms of up to 180 days for certain long-term customers[140] - The company's suppliers include third-party manufacturers in China, selected based on quality, capacity, price, and compliance with regulations[140] - The company typically enters into supply agreements of at least one year with suppliers, with potential rebates or discounts for exceeding agreed order amounts[140] - The company's issued share capital as of 31 December 2020 was 1,401,937,550 shares[141] - The company's distributable reserves amounted to approximately RMB 12,527,402,000 as of 31 December 2020[141] - The company maintained a minimum public float of 25% as required under the Listing Rules[141] - The company's executive directors have service agreements with an initial term of three years, terminable with at least three months' notice[146] - The company's non-executive directors have service agreements with an initial term of three years, terminable with at least one month's notice[146] - The company's independent non-executive directors have appointment letters with a term of three years, terminable with at least one month's notice[147] - The company has received annual confirmations of independence from all independent non-executive directors[150] - The company's directors and chief executive's interests and short positions in shares, underlying shares, and debentures were disclosed as of 31 December 2020[151] - Mr. Wang Ning holds 688,009,220 shares, representing 49.08% of the company's total issued shares[153] - Ms. Yang Tao holds 688,009,220 shares, representing 49.08% of the company's total issued shares[153] - Mr. Si De holds 11,508,500 shares, representing 0.82% of the company's total issued shares[153] - UBS Trustees (B.V.I.) Limited holds 571,981,960 shares, representing 40.80% of the company's total issued shares[155] - GWF Holding Limited holds 571,981,960 shares, representing 40.80% of the company's total issued shares[155] - Pop Mart Hehuo Holding Limited holds 85,945,040 shares, representing 6.13% of the company's total issued shares[155] - The company had issued a total of 1,401,937,550 shares as of 31 December 2020[154] - Mr. Wang Ning is deemed to be interested in 571,981,960 shares held by GWF Holding and 30,082,220 shares held by Tianjin Paqu Holding Limited[154] - Pop Mart Hehuo Holding Limited is owned 43.99% by Mr. Wang Ning and 15.11% by Ms. Yang Tao[160] - No other substantial shareholders' interests or short positions were disclosed as of 31 December 2020[160] - No issuance of debentures was made by the Company during the year ended 31 December 2020[162][164] - The Company had a total of 1,401,937,550 shares issued as of 31 December 2020[162] - Mr. Wang Ning holds 91.56% of the shares of Paqu Huyu, with 27 other shareholders holding an aggregate of 8.44%[172] - The Group entered into a series of Contractual Arrangements constituting non-exempt continuing connected transactions under Chapter 14A of the Listing Rules[166] - Beijing Pop Mart provides software development and technical consultation services to Paqu Huyu in exchange for service fees[171] - The Relevant Shareholders pledged all their equity interests in Paqu Huyu to Beijing Pop Mart as collateral security[171] - The Exclusive Option Agreement grants Beijing Pop Mart the right to purchase 100% of Paqu Huyu's equity interest and/or assets for a nominal price[173] - The Exclusive Option Agreement has an initial term of 10 years and can be extended upon request by Beijing Pop Mart[173] - Beijing Pop Mart has entered into an Exclusive Consultation and Service Agreement with Paqu Huyu, providing software development, technical support, and other consulting services in exchange for service fees, with an initial term of 10 years and the possibility of extension[176] - Relevant shareholders have pledged 100% of their equity interests in Paqu Huyu to Beijing Pop Mart as collateral for payments and obligations under various agreements