POP MART(09992)2024-03-20 04:09Revenue and Profit Growth - Revenue for the year ended December 31, 2023, reached RMB 6,301,002 thousand, a significant increase compared to the previous year[2] - Total revenue for 2023 reached RMB 6,876.664 million, with mainland China contributing RMB 5,810.563 million and Hong Kong, Macau, Taiwan, and overseas markets contributing RMB 1,066.101 million[17] - Total revenue for 2023 reached RMB 6,301,002 thousand, a significant increase from RMB 4,617,324 thousand in 2022[19] - Total revenue reached RMB 6,301.0 million, a year-on-year increase of 36.5%[43] - Total revenue increased by 36.5% YoY from RMB 4,617.3 million in 2022 to RMB 6,301.0 million in 2023[51] - Gross profit for 2023 was RMB 3,864,071 thousand, representing a 36.5% increase from 2022[2] - Gross profit for 2023 was RMB 3,864.071 million, with mainland China contributing RMB 3,171.997 million and Hong Kong, Macau, Taiwan, and overseas markets contributing RMB 692.074 million[17] - Gross profit increased by 45.6% from RMB 2,654.5 million in 2022 to RMB 3,864.1 million in 2023, with gross margin improving from 57.5% to 61.3%[67] - Operating profit surged by 111.0% to RMB 1,230,646 thousand in 2023[2] - Operating profit more than doubled, increasing by 111.0% from RMB 583.4 million in 2022 to RMB 1,230.6 million in 2023[71] - Net profit attributable to the company's owners increased by 127.5% to RMB 1,082,344 thousand[2] - Net profit for 2023 was RMB 1,088.771 million, a significant increase from RMB 475.801 million in 2022[17] - The company's profit attributable to owners increased to RMB 1,082,344 thousand in 2023, up from RMB 475,660 thousand in 2022, representing a significant growth[32] - Net profit for the year soared from RMB 475.8 million in 2022 to RMB 1,088.8 million in 2023[73] - Non-IFRS adjusted net profit margin improved to 18.9% in 2023, up from 12.4% in 2022, reflecting better operational performance[74] Regional and Market Performance - The company's Hong Kong, Macau, Taiwan, and overseas businesses maintained rapid growth in 2023, contributing 15.5% of total revenue[15][17] - Revenue from Mainland China business grew to RMB 5,234,901 thousand in 2023, up from RMB 4,163,386 thousand in 2022[19] - Revenue from Hong Kong, Macau, Taiwan, and overseas business surged to RMB 1,066,101 thousand in 2023, compared to RMB 453,938 thousand in 2022[19] - Overseas revenue reached RMB 1,066.1 million, a year-on-year increase of 134.9%, accounting for 16.9% of total revenue[43] - Overseas revenue (including Hong Kong, Macau, Taiwan) increased significantly, with offline channel revenue growing from RMB 150.8 million in 2022 to RMB 640.3 million in 2023[52] - Offline channel revenue in Hong Kong, Macau, Taiwan, and overseas surged by 324.7% from RMB 150.8 million in 2022 to RMB 640.3 million in 2023, with retail store revenue growing by 330.0% and robot store revenue by 277.3%[58][59] - Online channel revenue in Hong Kong, Macau, Taiwan, and overseas increased by 72.7% from RMB 90.2 million in 2022 to RMB 155.8 million in 2023, with Shopee revenue growing by 70.3% and POP MART official website revenue by 45.9%[59][60] - Wholesale and other revenue in Hong Kong, Macau, Taiwan, and overseas grew by 26.8% from RMB 212.9 million in 2022 to RMB 270.0 million in 2023, driven by business expansion and increased brand awareness[61] Product and IP Performance - SKULLPANDA, MOLLY, and DIMOO generated revenues of RMB 1,024.8 million, RMB 1,020.3 million, and RMB 737.7 million respectively in 2023[44] - MEGA COLLECTION series achieved revenue of RMB 681.5 million in 2023[45] - Self-developed products revenue increased by 39.8% from RMB 4,190.0 million in 2022 to RMB 5,858.0 million in 2023, accounting for 93.0% of total revenue[62] - Artist IP revenue grew by 32.5% from RMB 3,639.7 million in 2022 to RMB 4,822.2 million in 2023, with SKULLPANDA, MOLLY, and DIMOO being the top contributors[63] - Licensed IP revenue surged by 88.2% from RMB 550.3 million in 2022 to RMB 1,035.7 million in 2023, due to deeper collaborations with copyright holders[65] Channel and Store Performance - The company opened 55 new offline stores in mainland China, bringing the total to 363 by the end of 2023[46] - Offline channel revenue in Mainland China grew by 46.3% YoY from RMB 2,069.9 million in 2022 to RMB 3,027.8 million in 2023[53] - Retail store revenue in Mainland China increased by 46.6% YoY from RMB 1,691.1 million in 2022 to RMB 2,479.2 million in 2023, with 363 retail stores as of December 31, 2023[54] - Robot store revenue in Mainland China rose by 44.8% YoY from RMB 378.8 million in 2022 to RMB 548.6 million in 2023, with 2,190 robot stores as of December 31, 2023[55] - Online channel revenue in Mainland China decreased by 6.5% YoY from RMB 1,829.8 million in 2022 to RMB 1,710.5 million in 2023[56] - Revenue from the Pop Mart blind box machine dropped by 23.6% YoY from RMB 954.7 million in 2022 to RMB 729.3 million in 2023[56] - Tmall flagship store revenue declined by 30.4% YoY from RMB 462.4 million in 2022 to RMB 322.0 million in 2023[56] - Douyin platform revenue surged by 431.2% YoY from RMB 53.3 million in 2022 to RMB 283.3 million in 2023[56] - Bubble Mart's online抽盒机 generated revenue of RMB 729.3 million in 2023[47] - Tmall flagship store revenue reached RMB 322.0 million in 2023[47] - Douyin platform revenue increased by 431.2% year-on-year to RMB 283.3 million in 2023[47] - The company opened its first offline stores in France, Malaysia, Thailand, and the Netherlands in 2023, and launched its third global flagship store in Taiwan[49] Financial Position and Cash Flow - Total assets as of December 31, 2023, amounted to RMB 9,968,863 thousand, up from RMB 8,580,062 thousand in 2022[6] - Cash and cash equivalents increased significantly to RMB 2,077,927 thousand from RMB 685,314 thousand in 2022[6] - Total equity attributable to the company's owners grew to RMB 7,769,927 thousand from RMB 6,963,288 thousand[7] - Total liabilities increased to RMB 2,188,481 thousand from RMB 1,614,737 thousand in 2022[7] - Non-current assets rose to RMB 2,285,394 thousand from RMB 1,964,527 thousand in 2022[6] - Cash and cash equivalents surged from RMB 685.3 million in 2022 to RMB 2,077.9 million in 2023, driven by increased cash flow from operations and reduced fixed deposits[78] - Trade receivables increased from RMB 194.4 million in 2022 to RMB 321.3 million in 2023, mainly due to business expansion in Hong Kong, Macau, Taiwan, and overseas[76] - Capital expenditures totaled RMB 392.5 million in 2023, up from RMB 347.6 million in 2022, with significant spending on property, plant, and equipment[84] Expenses and Costs - Sales costs for 2023 totaled RMB 2,436.931 million, with mainland China accounting for RMB 2,062.904 million and Hong Kong, Macau, Taiwan, and overseas markets accounting for RMB 374.027 million[17] - Total expenses for 2023 amounted to RMB 5,148,937 thousand, up from RMB 4,119,814 thousand in 2022[21] - Distribution and sales expenses rose by 36.3% from RMB 1,470.8 million in 2022 to RMB 2,004.7 million in 2023, with employee benefits expenses increasing by 51.9% due to workforce expansion[68] - Right-of-use asset depreciation increased by 13.2% from RMB 269.3 million in 2022 to RMB 304.9 million in 2023, driven by the addition of 76 new offline retail stores to support business expansion in mainland China, Hong Kong, Macau, Taiwan, and overseas[69] - General and administrative expenses rose by 3.1% from RMB 686.3 million in 2022 to RMB 707.3 million in 2023, with employee benefits being the largest component, as the number of administrative and R&D staff increased from 1,007 to 1,110[70] - Other income surged by 64.4% from RMB 45.6 million in 2022 to RMB 74.9 million in 2023, primarily due to an increase in government subsidies from RMB 11.6 million to RMB 30.9 million[71] - Net finance income grew significantly from RMB 29.1 million in 2022 to RMB 151.9 million in 2023, mainly due to higher interest income[72] - Income tax expense for 2023 was RMB 326,984 thousand, compared to RMB 163,728 thousand in 2022[25] Shareholder Returns and Share Repurchases - Basic earnings per share rose by 131.4% to RMB 0.81[2] - Basic earnings per share (EPS) rose to RMB 0.81 in 2023 compared to RMB 0.35 in 2022, reflecting improved profitability[32] - Total dividends paid in 2023 were RMB 117,317 thousand, down from RMB 209,490 thousand in 2022[30] - The company proposed a final dividend of RMB 28.21 cents per share for 2023, totaling approximately RMB 378,840,000[30] - The company repurchased 19,947,000 shares in 2023, spending approximately HKD 370,688 thousand (RMB 333,709 thousand), as part of its share buyback program[38] - The company canceled 32,297,000 repurchased shares in 2023, resulting in a reduction of share capital and share premium[39] - The company repurchased 19,947,000 shares on the Hong Kong Stock Exchange during the reporting period, with a total cost of approximately HKD 370.69 million[99] - The highest price paid per share during the repurchase was HKD 21.70 in October, and the lowest was HKD 16.40 in June[100] Accounting and Financial Reporting - The company adopted new and revised accounting standards effective from January 1, 2023, including amendments to IAS 8, IAS 1, and IAS 12, which are not expected to have a significant impact on current or future periods[12] - The company's non-current assets, excluding financial assets at fair value and deferred tax assets, are geographically distributed, with no single customer accounting for 10% or more of total revenue[18] - The company's operating segments are divided into mainland China and Hong Kong, Macau, Taiwan, and overseas markets, with performance evaluated based on revenue, gross profit, and segment performance[16] - The audit committee and board of directors have reviewed the accounting standards and practices adopted by the company, as well as the annual results for the year ended December 31, 2023[101] - The consolidated income statement, consolidated balance sheet, and related notes for the year ended December 31, 2023, have been agreed upon by the company's auditor, PricewaterhouseCoopers, and are consistent with the audited consolidated financial statements[102] - The annual results announcement and 2023 annual report have been published on the Hong Kong Stock Exchange website (www.hkexnews.hk) and the company's website (www.popmart.com)[102] - The 2023 annual report, containing all information required by the listing rules, will be sent to shareholders and published on the Hong Kong Stock Exchange and the company's website at the appropriate time[102] Future Plans and Strategies - The company plans to enrich IP types, expand the IP library, and maintain high-quality design innovation to strengthen IP operations and deepen emotional connections with fans[88] - International business is expected to grow rapidly through the DTC strategy, offline stores, robot stores, and cross-border e-commerce platforms to enhance brand penetration and market share globally[88] - The company aims to expand its channel network, improve operational capabilities, and enhance user experience through innovative retail digital operations[88] - The company will continue to promote pop toy culture, increase fan engagement, and strengthen cultural identity and brand recognition[88] - The company will further develop new brands such as MEGA, Resonance, and Inner Flow, and explore new business areas like theme parks and games to enhance IP interaction and emotional connections[88] - The net proceeds from the IPO amounted to approximately HKD 5,781.7 million, with planned uses including new retail stores, robot stores, overseas market expansion, and potential investments or acquisitions[91][92] - HKD 954.0 million (16.5% of net proceeds) was allocated for opening new retail stores, with HKD 954.0 million already utilized[92] - HKD 346.9 million (6.0% of net proceeds) was allocated for new robot stores, with HKD 262.3 million utilized and HKD 84.6 million remaining[92] - HKD 433.6 million (7.5% of net proceeds) was allocated for overseas market expansion, with HKD 178.7 million remaining[92] - The company plans to use HKD 1,040.7 million (18.0% of net proceeds) to expand its IP library, with HKD 818.7 million remaining unused as of December 31, 2022, and HKD 722.9 million unused as of December 31, 2023[93] - HKD 260.3 million (4.5% of net proceeds) is allocated to enhance the ability to identify outstanding artists, with HKD 29.1 million remaining unused and scheduled for use by December 31, 2025[93] - HKD 693.8 million (12.0% of net proceeds) is designated for acquiring popular IPs, with the full amount remaining unused as of December 31, 2023, and scheduled for use by December 31, 2025[93] Trade Receivables and Payables - Trade receivables increased to RMB 321,337 thousand in 2023 from RMB 194,369 thousand in 2022, indicating higher sales and credit exposure[34] - Trade receivables denominated in RMB accounted for RMB 173,058 thousand in 2023, up from RMB 116,558 thousand in 2022, showing increased domestic sales[37] - The company's trade receivables aged within 30 days increased to RMB 311,485 thousand in 2023 from RMB 181,339 thousand in 2022, indicating improved collection efficiency[35] - The company's impairment provision for trade receivables slightly increased to RMB 7,319 thousand in 2023 from RMB 7,291 thousand in 2022, reflecting stable credit risk management[36] - The company's trade payables for goods increased to RMB 444,944 thousand in 2023 from RMB 259,006 thousand in 2022, reflecting higher procurement activities[40] - The company's payable licensing fees increased to RMB 194,200 thousand in 2023 from RMB 154,823 thousand in 2022, indicating higher IP-related expenses[41] Other Financial Metrics - Government subsidies increased to RMB 30,909 thousand in 2023 from RMB 11,601 thousand in 2022[22] - Net financial income rose to RMB 151,880 thousand in 2023, a substantial increase from RMB 29,103 thousand in 2022[24] - Cumulative registered members in mainland China reached 34.354 million by the end of 2023, with a member repurchase rate of 50.0%[48] - The company launched its first immersive IP theme park, Pop Mart City Park, in Beijing in September 2023, marking a new milestone in IP commercialization[50] - Wholesale and other revenue increased by 88.4% from RMB 263.6 million in 2022 to RMB 496.6 million in 2023, driven by increased sales to distributors and the opening of POP MART City Park in September 2023[57] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures were made as of December 31, 2023[87]