POP MART(09992)2023-04-21 09:21Financial Performance - Revenue for 2022 was RMB 4,617,324 thousand, a 2.8% increase from RMB 4,490,651 thousand in 2021[12] - Gross profit for 2022 was RMB 2,654,543 thousand, a 3.8% decrease from RMB 2,758,624 thousand in 2021[12] - Operating profit for 2022 was RMB 583,380 thousand, a 49.3% decrease from RMB 1,149,812 thousand in 2021[12] - Profit before income tax for 2022 was RMB 639,529 thousand, a 45.4% decrease from RMB 1,171,191 thousand in 2021[12] - Profit for the year 2022 was RMB 475,801 thousand, a 44.3% decrease from RMB 854,567 thousand in 2021[12] - Gross profit margin for 2022 was 57.5%, down from 61.4% in 2021[12] - Net profit margin for 2022 was 10.3%, down from 19.0% in 2021[12] - Non-IFRS adjusted net profit for 2022 was RMB 573,540 thousand, a 42.7% decrease from RMB 1,001,635 thousand in 2021[12] - Non-IFRS adjusted net profit margin for 2022 was 12.4%, down from 22.3% in 2021[12] - Annual revenue in 2022 reached RMB 4,617.3 million, a year-on-year increase of 2.8%[20] - Revenue increased by 2.8% year-on-year from RMB4,490.7 million in 2021 to RMB4,617.3 million in 2022[32][33] - The Group's operating profit decreased by 49.3% from RMB1,149.8 million in 2021 to RMB583.4 million in 2022[67] - Profit for the year decreased from RMB854.6 million in 2021 to RMB475.8 million in 2022[68] - Non-IFRS adjusted net profit decreased from RMB1,001.6 million in 2021 to RMB573.5 million in 2022, with the margin dropping from 22.3% to 12.4%[71] International Business Expansion - International business revenue grew by 147.1% year-on-year in 2022, accounting for nearly 10% of total revenue[15] - The company opened its first offline retail stores in the United States, the United Kingdom, New Zealand, and Australia, and flagship stores in South Korea and Japan[15] - Overseas revenue grew by 147.1% year-on-year in 2022[20] - Revenue from Hong Kong, Macao, Taiwan, and overseas increased significantly, accounting for 9.8% of total revenue in 2022, up from 4.1% in 2021[34] - Offline sales revenue in Hong Kong, Macao, Taiwan, and overseas increased by 2,799.4% year-on-year, from RMB5.2 million in 2021 to RMB150.8 million in 2022[47] - The company's international business will grow rapidly, focusing on localization and collaboration with local partners and artists[88] IP and Product Performance - The high-end MEGA series and co-branded models with artists like Han Meilin and Hiroto Ohkubo gained popularity among the younger generation[15] - Revenue from top IPs SKULLPANDA, MOLLY, and DIMOO amounted to RMB 851.6 million, RMB 802.2 million, and RMB 577.9 million respectively in 2022[20] - SKULLPANDA's revenue increased by 43.1% year-on-year, with the "City of Night" series generating RMB 228.4 million in revenue[20] - MEGA Collection Series revenue in 2022 was RMB 466.8 million[21] - POP BEAN product line launched in June 2022, covering over ten popular IPs including MOLLY, DIMOO, SKULLPANDA, and LABUBU[21] - LABUBU rotocasting plush dolls and DIMOO COTTON DOLL were well-received by fans in 2022[21] - Hirono IP revenue increased by 169.4% year-on-year, reaching RMB 140.8 million in 2022[20] - Proprietary IPs revenue increased by 16.0% from RMB2,586.8 million in 2021 to RMB3,000.8 million in 2022, driven by sales of SKULLPANDA, MOLLY, and DIMOO[65] - Exclusive licensed IPs revenue decreased by 17.1% from RMB770.5 million in 2021 to RMB639.0 million in 2022, primarily due to the impact of COVID-19[65] - Non-exclusive licensed IPs revenue decreased by 11.3% from RMB620.5 million in 2021 to RMB550.3 million in 2022, also impacted by COVID-19[65] - SKULLPANDA contributed RMB851.6 million, representing 18.4% of total revenue in 2022, up from 13.3% in 2021[64] - MOLLY contributed RMB802.2 million, representing 17.4% of total revenue in 2022, slightly up from 15.7% in 2021[64] - DIMOO contributed RMB577.9 million, representing 12.5% of total revenue in 2022, slightly down from 12.6% in 2021[64] Channel Performance - Number of physical stores in Mainland China increased from 288 at the end of 2021 to 329 at the end of 2022, with 49 new stores opened in 2022[22][26] - Number of roboshops in Mainland China increased from 1,861 at the end of 2021 to 2,067 at the end of 2022, with 206 new roboshops opened in 2022[22][26] - Revenue from Pop Draw mini program on WeChat platform reached RMB954.7 million in 2022[23][27] - Revenue from JD.com flagship store was RMB137.9 million in 2022[23][27] - Revenue from Tmall flagship store was RMB462.4 million in 2022, ranking top in sales within the toy category during Tmall Singles Day shopping festival for the fourth consecutive year[23][27] - Number of physical stores in Hong Kong, Macao, Taiwan, and overseas reached 43 at the end of 2022, with first physical stores opened in the UK, New Zealand, the US, and Australia[25][29] - Number of roboshops in Hong Kong, Macao, Taiwan, and overseas reached 120 at the end of 2022[25][29] - Number of cross-border e-commerce platforms reached 13 at the end of 2022[25][29] - Offline channel revenue in Mainland China decreased by 3.2% from RMB2,138.0 million in 2021 to RMB2,069.9 million in 2022[35] - Online channel revenue in Mainland China decreased by 1.7% from RMB1,861.5 million in 2021 to RMB1,829.8 million in 2022[41] - Revenue from retail stores increased by 1.3% year-on-year from RMB1,670.2 million in 2021 to RMB1,691.1 million in 2022[39] - Revenue from roboshops decreased by 19.0% year-on-year from RMB467.8 million in 2021 to RMB378.8 million in 2022[40] - Pop Draw revenue increased by 3.6% year-on-year, accounting for 52.2% of online channel revenue in 2022[38] - Tmall flagship store revenue decreased by 22.8% year-on-year, accounting for 25.3% of online channel revenue in 2022[38] - Other online channels revenue increased by 38.9% year-on-year, accounting for 15.0% of online channel revenue in 2022[38] - Retail store sales revenue increased by 1.3% year-on-year, from RMB1,670.2 million in 2021 to RMB1,691.1 million in 2022, despite 232 stores being closed for 1 week to 3 months due to the pandemic[42] - Robot store sales revenue decreased by 19.0% year-on-year, from RMB467.8 million in 2021 to RMB378.8 million in 2022, with 627 stores closed for 1 week to 3 months due to the pandemic[42] - Online revenue decreased by 1.7% year-on-year, from RMB1,861.5 million in 2021 to RMB1,829.8 million in 2022, primarily due to the impact of the pandemic on logistics and consumer spending[42] - Revenue from Pop Draw increased by 3.6% year-on-year, from RMB921.5 million in 2021 to RMB954.7 million in 2022, while Tmall flagship store revenue decreased by 22.8% and JD.com flagship store revenue decreased by 3.7%[45] - Wholesale and other revenue decreased by 14.3% year-on-year, from RMB307.5 million in 2021 to RMB263.6 million in 2022, due to reduced procurement by distributor Nanjing Pop Mart[46] - Revenue from proprietary products increased by 5.3% year-on-year, from RMB3,977.8 million in 2021 to RMB4,190.0 million in 2022, contributing 90.8% of total revenue[61] - Revenue from Shopify increased by 78.4% year-on-year, from RMB15.2 million in 2021 to RMB27.1 million in 2022, while Amazon revenue increased by 163.9%[57] - Wholesale and other revenue in Hong Kong, Macao, Taiwan, and overseas increased by 55.0% year-on-year, from RMB137.4 million in 2021 to RMB212.9 million in 2022[59] Costs and Expenses - Costs of sales increased by 13.3% from RMB1,732.0 million in 2021 to RMB1,962.8 million in 2022, driven by higher unit costs and increased IP licensing fees[65] - Gross profit from Pop Mart proprietary products decreased by 2.1% from RMB2,573.2 million in 2021 to RMB2,518.2 million in 2022, with gross profit margin dropping from 64.7% to 59.7%[66] - Gross profit from third-party products decreased by 26.4% from RMB185.4 million in 2021 to RMB136.4 million in 2022, with gross profit margin decreasing from 36.1% to 33.9%[66] - Distribution and selling expenses increased by 33.0% from RMB1,106.1 million in 2021 to RMB1,470.8 million in 2022, driven by growth in Hong Kong, Macau, Taiwan, and overseas markets[66] - Employee benefit expenses increased by 37.1% from RMB287.3 million in 2021 to RMB394.0 million in 2022, due to an increase in sales personnel from 2,436 to 2,594[66] - Advertising and marketing expenses increased by 48.1% from RMB157.6 million in 2021 to RMB233.4 million in 2022, driven by increased promotion of online and offline channels[66] - General and administrative expenses increased by 23.1% from RMB557.5 million in 2021 to RMB686.3 million in 2022, with employee benefit expenses rising by 20.2%[67] - Depreciation of right-of-use assets increased from RMB34.2 million in 2021 to RMB60.8 million in 2022, due to office lease expansion[67] - Other income decreased by 16.3% from RMB54.4 million in 2021 to RMB45.6 million in 2022, with IP license fee income from brands like UNIQLO and SAMSUNG dropping from RMB37.7 million to RMB32.5 million[67] Financial Position and Assets - Total assets increased to RMB 8,580,062 thousand in 2022, up from RMB 8,323,626 thousand in 2021[13] - Total equity attributable to owners of the company reached RMB 6,963,288 thousand in 2022, compared to RMB 6,818,182 thousand in 2021[13] - Total liabilities increased to RMB 1,614,737 thousand in 2022, up from RMB 1,503,620 thousand in 2021[13] - Net current assets decreased slightly from RMB5,664.6 million in 2021 to RMB5,484.8 million in 2022, remaining stable[73] - Trade receivables increased from RMB171.3 million in 2021 to RMB194.4 million in 2022, with turnover days increasing from 10 to 15 days[73] - Inventories increased from RMB788.8 million in 2021 to RMB867.0 million in 2022, with turnover days rising from 128 to 156 days[73] - Cash and cash equivalents decreased significantly from RMB5,264.7 million in 2021 to RMB685.3 million in 2022, mainly due to the purchase of one-year time deposits[73] - Trade payables decreased from RMB266.1 million in 2021 to RMB259.0 million in 2022, with turnover days increasing from 40 days to 49 days[74] - The company's gearing ratio increased slightly from 18.1% in 2021 to 18.8% in 2022[74] - Total capital expenditures increased from RMB333.748 million in 2021 to RMB347.623 million in 2022, with a significant increase in intangible asset purchases from RMB46.246 million to RMB81.491 million[75] Corporate Governance and Leadership - The company's CEO, Mr. Wang Ning, is responsible for overall strategic planning and management, and holds a master's degree in business administration from Peking University[89] - Ms. Yang Tao, the company's vice president, is in charge of IP operation, product R&D, and the Inner flow art organization[89] - Ms. Liu, aged 35, is the Executive Director and Vice President of the company, holding a bachelor's degree in tourism management and a master's degree in business administration[95] - Mr. Si De, aged 34, is the Executive Director and Chief Operating Officer, responsible for the operations of the Group and the overall business in mainland China[92] - Mr. Si De holds a bachelor's degree in French studies and a master's degree in business administration[93] - Mr. Si De is a director of several principal subsidiaries, including Shanghai Paqu Commerce Co., Ltd., Beijing Paquhuyu Technology Co., Ltd., and Tianjin Pop Mart Cultural Communication Co., Ltd.[94] - Mr. Tu Zheng, aged 45, is a Non-Executive Director, providing professional advice to the Board and holding a bachelor's degree in English studies and a master's degree in public policy[96] - Mr. Tu Zheng has been a partner at Shanghai Fengqiao Investment Management Co. Ltd. since May 2018 and previously served as a partner at Shenzhen Qifu Capital Management Co., LTD[96] - Mr. He Yu, aged 42, is a Non-Executive Director, providing professional advice to the Board and holding a bachelor's degree in international economics and trade and a master's degree in finance[96] - Mr. He Yu founded and served as a partner of Shenzhen Qianhai Heiyi Innovation Investment Partnership (Limited Partnership) since February 2016[96] - Mr. He Yu was admitted as a Chartered Financial Analyst by the CFA Institute in September 2008 and was granted the China Securities Investment Fund Practicing Certificate in February 2017[96] - Both Mr. Tu Zheng and Mr. He Yu are currently directors of Beijing Pop Mart[96] - Mr. Zhang Jianjun, aged 56, serves as an independent non-executive director since December 11, 2020, providing independent opinions to the Board[97] - Mr. Zhang holds a Ph.D. in sociology from the University of California, Berkeley, and has extensive research experience in corporate governance[97] - Mr. Wu Liansheng, aged 52, serves as an independent non-executive director since the Listing Date, with a background in economics and management[98][99] - Mr. Wu has served as an independent director in multiple listed companies, including Huaneng Power International and Agricultural Bank of China[98][100] - Mr. Ngan King Leung Gary, aged 39, serves as an independent non-executive director since the Listing Date, with a background in finance and economics[102][105] - Mr. Ngan has been the CFO of Meitu, Inc. since June 2015 and holds a CFA Charterholder since 2010[104][106] - Mr. Wang Ning, aged 36, is the executive Director, Chairman of the Board, and CEO of the company[107] - Mr. Yang Jingbing, aged 44, is the CFO of the company, responsible for financial management since joining in August 2017[107] Shareholder and Equity Information - Mr. Wang Ning, the Executive Director, Chairman, and CEO, holds a 48.97% interest in the company through a trust and controlled corporation[165] - Mr. Si De holds 10,933,075 shares, representing 0.79% of the company's total shares[169] - Mr. Tu Zheng holds 32,910,000 shares, representing 2.38% of the company's total shares[169] - Mr. He Yu holds 2,088,310 shares, representing 0.15% of the company's total shares[169] - UBS Trustees (B.V.I.) Limited holds 571,981,960 shares, representing 41.43% of the company's total shares[180] - GWF Holding Limited holds 571,981,960 shares, representing 41.43% of the company's total shares[181] - Pop Mart Hehuo Holding Limited holds 72,903,027 shares, representing 5.28% of the company's total shares[182] - Mr. Wang Ning is deemed to be interested in 571,981,960 shares held by GWF Holding Limited and 31,196,420 shares