POP MART(09992)2024-09-24 08:36Revenue 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[