POP MART(09992)2023-03-29 04:10Revenue and Profit Performance - Revenue increased by 2.8% to RMB 4,617,324 thousand in 2022 compared to RMB 4,490,651 thousand in 2021[2] - Total revenue for 2022 reached RMB 4,617,324 thousand, a 2.8% increase from RMB 4,490,651 thousand in 2021[13][16] - Gross profit decreased by 3.8% to RMB 2,654,543 thousand in 2022 from RMB 2,758,624 thousand in 2021[2] - Operating profit dropped significantly by 49.3% to RMB 583,380 thousand in 2022 from RMB 1,149,812 thousand in 2021[2] - Net profit attributable to the company's owners decreased by 44.3% to RMB 475,660 thousand in 2022 from RMB 854,339 thousand in 2021[2] - Non-IFRS adjusted net profit declined by 42.7% to RMB 573,540 thousand in 2022 from RMB 1,001,635 thousand in 2021[2] - Basic and diluted earnings per share decreased by 43.5% to RMB 0.35 in 2022 from RMB 0.62 in 2021[2] - Basic earnings per share for 2022 was RMB 0.35, down from RMB 0.62 in 2021[28] - Diluted earnings per share for 2022 was RMB 0.35, down from RMB 0.62 in 2021[29] - The company achieved full-year revenue of RMB 4,617.3 million in 2022, a year-on-year increase of 2.8%, with cumulative registered members reaching 26.004 million[39] - The company's total revenue increased by 2.8% year-on-year from RMB 4,490.7 million in 2021 to RMB 4,617.3 million in 2022[48] - Net profit for the year dropped from RMB 854.6 million in 2021 to RMB 475.8 million in 2022[69] - Non-IFRS adjusted net profit margin decreased from 22.3% in 2021 to 12.4% in 2022[71] Revenue Breakdown by Region and Channel - Revenue from Mainland China accounted for RMB 4,163,386 thousand, with retail store sales contributing RMB 1,691,112 thousand, online sales RMB 1,829,809 thousand, and robot store sales RMB 378,830 thousand[16] - Overseas revenue (including Hong Kong, Macau, Taiwan) increased significantly to RMB 453,938 thousand in 2022, up from RMB 183,715 thousand in 2021[16] - Overseas revenue grew by 147.1% year-on-year in 2022, driven by accelerated international market expansion[39] - Offline channel revenue in mainland China decreased by 3.2% year-on-year from RMB 2,138.0 million in 2021 to RMB 2,069.9 million in 2022[50] - Retail store sales revenue in mainland China increased by 1.3% year-on-year from RMB 1,670.2 million in 2021 to RMB 1,691.1 million in 2022, despite the impact of COVID-19, which led to temporary closures of 232 stores for one week to three months[52] - Robot store sales revenue decreased by 19.0% from RMB 467.8 million in 2021 to RMB 378.8 million in 2022, with 627 stores closed for 1 week to 3 months due to the pandemic[53] - Online revenue decreased by 1.7% from RMB 1,861.5 million in 2021 to RMB 1,829.8 million in 2022, with Pop Mart Blind Box Machine revenue increasing by 3.6% to RMB 954.7 million[54] - Wholesale and other revenue decreased by 14.3% from RMB 307.5 million in 2021 to RMB 263.6 million in 2022, mainly due to reduced purchases by Nanjing Golden Eagle Pop Mart Trading Co., Ltd.[55] - Offline revenue in Hong Kong, Macau, Taiwan, and overseas increased by 2,799.4% from RMB 5.2 million in 2021 to RMB 150.8 million in 2022, with retail store revenue growing by 4,120.4% to RMB 135.6 million[56][57] - Online revenue in Hong Kong, Macau, Taiwan, and overseas increased by 119.2% from RMB 41.2 million in 2021 to RMB 90.2 million in 2022, with Amazon revenue growing by 163.9% to RMB 23.6 million[57][58] - Wholesale and other revenue in Hong Kong, Macau, Taiwan, and overseas increased by 55.0% from RMB 137.4 million in 2021 to RMB 212.9 million in 2022, driven by business expansion[59] IP and Product Performance - Top IPs SKULLPANDA, MOLLY, and DIMOO generated revenues of RMB 851.6 million, RMB 802.2 million, and RMB 577.9 million respectively in 2022, with SKULLPANDA showing a 43.1% year-on-year growth[40] - The MEGA珍藏系列 (MEGA Collection Series) achieved revenue of RMB 466.8 million in 2022, with new product lines such as 100% SPACE MOLLY周年系列 gaining market popularity[41] - The company launched the 萌粒 (Mengli) product line in June 2022, featuring Q-version designs and interactive DIY play, which was well-received by fans[41] - LABUBU搪胶毛绒公仔 (LABUBU Vinyl Plush Dolls) and other new product categories were introduced in 2022, aiming to better showcase IP characteristics and expand the product portfolio[41] - Self-developed products revenue increased by 5.3% from RMB 3,977.8 million in 2021 to RMB 4,190.0 million in 2022, accounting for 90.8% of total revenue[60] - Owned IP revenue increased by 16.0% from RMB 2,586.8 million in 2021 to RMB 3,000.8 million in 2022, driven by sales of SKULLPANDA, MOLLY, and DIMOO[61] - Exclusive IP revenue decreased by 17.1% from RMB 770.5 million in 2021 to RMB 639.0 million in 2022, mainly due to the impact of the pandemic[62] - Non-exclusive IP revenue decreased by 11.3% from RMB 620.5 million in 2021 to RMB 550.3 million in 2022, also due to the impact of the pandemic[62] Expenses and Costs - Cost of goods sold increased to RMB 1,693,530 thousand in 2022, up 17.2% from RMB 1,445,001 thousand in 2021[17] - Employee benefits expenses rose to RMB 853,595 thousand in 2022, a 27.5% increase from RMB 669,725 thousand in 2021[17] - Advertising and marketing expenses increased by 48.2% to RMB 233,421 thousand in 2022 compared to RMB 157,552 thousand in 2021[17] - Sales cost increased by 13.3% from RMB 1,732.0 million in 2021 to RMB 1,962.8 million in 2022, primarily due to higher unit costs of goods and increased IP licensing fees[63] - Distribution and sales expenses grew by 33.0% from RMB 1,106.1 million in 2021 to RMB 1,470.8 million in 2022, driven by expansion in Hong Kong, Macau, Taiwan, and overseas markets[65] - General and administrative expenses increased by 23.1% from RMB 557.5 million in 2021 to RMB 686.3 million in 2022, mainly due to higher employee benefits and depreciation of right-of-use assets[66] Financial Position and Assets - Total assets increased to RMB 8,580,062 thousand in 2022 from RMB 8,323,626 thousand in 2021[6] - Total equity rose to RMB 6,965,325 thousand in 2022 from RMB 6,820,006 thousand in 2021[7] - Total liabilities increased to RMB 1,614,737 thousand in 2022 from RMB 1,503,620 thousand in 2021[7] - Cash and cash equivalents decreased significantly to RMB 685,314 thousand in 2022 from RMB 5,264,710 thousand in 2021[6] - Trade receivables increased from RMB 171.3 million in 2021 to RMB 194.4 million in 2022, with turnover days rising from 10 to 15 days[73] - Inventory increased from RMB 788.8 million as of December 31, 2021, to RMB 867.0 million as of December 31, 2022, due to increased product stock to meet sales demand, but sales fell short of expectations due to the pandemic, leading to higher inventory turnover days from 128 days in 2021 to 156 days in 2022[74] - Cash and cash equivalents decreased from RMB 5,264.7 million as of December 31, 2021, to RMB 685.3 million as of December 31, 2022, primarily due to the purchase of one-year fixed-term deposits[75] - Trade payables decreased slightly from RMB 266.1 million as of December 31, 2021, to RMB 259.0 million as of December 31, 2022, with turnover days increasing from 40 days in 2021 to 49 days in 2022[76] - The company's asset-liability ratio increased from 18.1% as of December 31, 2021, to 18.8% as of December 31, 2022[77] Tax and Financial Income - The company's financial income-net increased to RMB 29,103 thousand in 2022 from RMB 7,363 thousand in 2021[20] - Income tax expense decreased to RMB 163,728 thousand in 2022 from RMB 316,624 thousand in 2021[21] - The company is exempt from income tax in the Cayman Islands and British Virgin Islands where it is registered[22] - In Hong Kong, the company applies a two-tiered profits tax rate system, with the first HKD 2 million of profits taxed at 8.25% and the remainder at 16.5%[23] - The company's income tax provision for its Mainland China business is calculated at a rate of 25% based on the estimated taxable profit for the year ended December 31, 2022[24] - The total undistributed profits of the company's subsidiaries in Mainland China amounted to RMB 2,040,482,000 as of December 31, 2022, up from RMB 1,715,409,000 in 2021[25] Dividends and Share Repurchases - The company proposed a final dividend of RMB 0.087 per share for the year ended December 31, 2022, with an estimated total amount of approximately RMB 118,980,000[26] - The company proposed a final dividend of RMB 8.70 cents per share for the year ended December 31, 2022, totaling RMB 118.98 million[89] - The company repurchased and canceled 21,397,000 shares in 2022, with a total cost of approximately RMB 447,915 thousand[35] - The company repurchased a total of 34,347,400 shares on the Hong Kong Stock Exchange during the reporting period, with a total consideration of approximately HKD 735,363,682[94] - The highest price per share paid during the repurchase was HKD 39.95, and the lowest was HKD 10.12[95] - The largest repurchase occurred in July, with 17,031,600 shares repurchased at a total cost of HKD 381,602,340[95] Expansion and Future Plans - The company opened 49 new offline stores in mainland China in 2022, increasing the total number from 288 at the end of 2021 to 329 at the end of 2022[42] - The company launched 206 new robot stores in mainland China in 2022, increasing the total number from 1,861 at the end of 2021 to 2,067 at the end of 2022[42] - The company's self-developed WeChat mini-program, "Pop Mart Blind Box Machine," generated revenue of RMB 954.7 million in 2022[43] - The company's Tmall flagship store achieved revenue of RMB 462.4 million in 2022, ranking first in sales in the toy category during the Double 11 shopping festival for the fourth consecutive year[43] - The company's cumulative registered members increased from 19.58 million at the end of 2021 to 26.004 million at the end of 2022, with 6.424 million new members added[44] - Member contribution to sales accounted for 93.1% in 2022, with a member repurchase rate of 50.7%[44] - The company's overseas DTC (Direct To Customer) strategy accelerated, with 43 stores (including joint ventures and franchises) and 120 robot stores (including joint ventures and franchises) in Hong Kong, Macau, Taiwan, and overseas markets by the end of 2022[45] - The company plans to expand its IP portfolio, enhance design innovation, and strengthen its international business through DTC strategies, offline stores, and cross-border e-commerce platforms[84] - The company aims to deepen its presence in the trendy toy market while exploring new business models, such as MEGA, Gongming, and inner flow, and developing new ventures like theme parks[84] - The company allocated 30.0% of the net proceeds (954.0 million HKD) for expanding consumer reach channels and overseas markets, including 350.6 million HKD for opening new retail stores[87] - 346.9 million HKD (6.0% of net proceeds) was allocated for opening new robot stores, with 86.1 million HKD already utilized and 184.8 million HKD remaining unused[87] - 433.6 million HKD (7.5% of net proceeds) was allocated for overseas market expansion, with 53.9 million HKD utilized and 346.0 million HKD remaining unused[87] - 1,561.1 million HKD (27.0% of net proceeds) was allocated for potential investments, acquisitions, and strategic alliances, with 49.8 million HKD utilized and 311.8 million HKD remaining unused[87] - 867.2 million HKD (15.0% of net proceeds) was allocated for technology initiatives to enhance marketing and fan engagement, with 317.9 million HKD utilized and 549.3 million HKD remaining unused[87] - 1,040.7 million HKD (18.0% of net proceeds) was allocated for expanding the IP library, with 153.7 million HKD utilized and 818.7 million HKD remaining unused[88] Corporate Governance and Compliance - The company has no significant legal disputes or contingent liabilities as of December 31, 2022[78] - The company has no significant foreign exchange risk exposure as its operations are primarily conducted in RMB[79] - The company adheres to the Corporate Governance Code under Appendix 14 of the Listing Rules, with minor deviations noted in the "Chairman and CEO" section[91] - The company's annual results for the year ended December 31, 2022, have been reviewed by the audit committee and the board of directors[96] - The financial figures in the announcement are consistent with the audited consolidated financial statements and have been agreed upon by the company's auditor, PricewaterhouseCoopers[97] - The annual results and the 2022 annual report are published on the Hong Kong Stock Exchange and the company's website[98] Shareholder and Dividend Information - The company will suspend share registration from May 12, 2023, to May 17, 2023, to determine shareholders eligible to attend the annual general meeting[90] - The company will also suspend share registration from May 23, 2023, to May 29, 2023, to determine shareholders eligible to receive the final dividend[90]