POP MART(09992)2024-04-25 08:37Financial Performance - Revenue for 2023 reached RMB 6,301,002 thousand, showing significant growth compared to previous years[12] - Gross profit for 2023 was RMB 3,864,071 thousand with a gross profit margin of 61.3%[12] - Operating profit for 2023 stood at RMB 1,230,646 thousand[12] - Profit before income tax for 2023 was RMB 1,415,755 thousand[12] - Profit for the year 2023 was RMB 1,088,771 thousand[12] - Profit attributable to owners of the Company for 2023 was RMB 1,082,344 thousand[12] - Non-IFRS adjusted net profit for 2023 was RMB 1,190,519 thousand with a margin of 18.9%[12] - Net profit margin for 2023 was 17.3%[12] - Gross profit margin for 2023 was 61.3%, up from 57.5% in 2022[12] - Non-IFRS adjusted net profit margin for 2023 was 18.9%, up from 12.4% in 2022[12] - Pop Mart achieved an annual revenue of RMB6.3 billion, representing a year-on-year increase of 36.5%[15] - Adjusted net profit was RMB1.19 billion, with a year-on-year increase of 107.6%[15] - Revenue from Hong Kong, Macao, Taiwan, and overseas markets reached RMB1,066.1 million, a year-on-year increase of 134.9%[22] - Company's total revenue reached RMB 6,301.0 million, a year-on-year increase of 36.5%[24] - Overseas business revenue in Hong Kong, Macau, Taiwan, and other regions reached RMB 1,066.1 million, a year-on-year increase of 134.9%, accounting for 16.9% of total revenue[24] - Revenue increased from RMB4,617.3 million in 2022 to RMB6,301.0 million in 2023, representing a year-on-year increase of 36.5%[44][46] - Offline channel revenue in Mainland China grew by 46.3% from RMB2,069.9 million in 2022 to RMB3,027.8 million in 2023[48] - Online channel revenue in Mainland China decreased by 6.5% from RMB1,829.8 million in 2022 to RMB1,710.4 million in 2023[47] - Wholesale and other channel revenue in Mainland China increased by 88.4% from RMB263.6 million in 2022 to RMB496.6 million in 2023[47] - Offline channel revenue in Hong Kong, Macao, Taiwan, and overseas surged by 324.7% from RMB150.7 million in 2022 to RMB640.2 million in 2023[47] - Online channel revenue in Hong Kong, Macao, Taiwan, and overseas grew by 72.7% from RMB90.2 million in 2022 to RMB155.8 million in 2023[47] - Wholesale and other channel revenue in Hong Kong, Macao, Taiwan, and overseas increased by 26.8% from RMB212.9 million in 2022 to RMB270.0 million in 2023[47] - Retail store revenue in Mainland China increased by 46.6% from RMB1,691.1 million in 2022 to RMB2,479.2 million in 2023[48] - Roboshop revenue in Mainland China grew by 44.8% from RMB378.8 million in 2022 to RMB548.5 million in 2023[48] - Retail store sales revenue in Mainland China increased by 46.6% year-on-year from RMB1,691.1 million in 2022 to RMB2,479.2 million in 2023, with the number of retail stores increasing by 34 to a total of 363[53] - Roboshop sales revenue in Mainland China increased by 44.8% year-on-year from RMB378.8 million in 2022 to RMB548.6 million in 2023, with the number of roboshops increasing by 123 to a total of 2,190[54] - Online sales revenue in Mainland China decreased by 6.5% from RMB1,829.8 million in 2022 to RMB1,710.5 million in 2023, with DouYin revenue increasing by 431.2% from RMB53.3 million to RMB283.3 million[55][60] - Wholesales and others revenue in Mainland China increased by 88.4% from RMB263.6 million in 2022 to RMB496.6 million in 2023, driven by increased sales to wholesalers and the opening of POP LAND in September 2023[61] - Offline sales revenue in Hong Kong, Macao, Taiwan, and Overseas increased by 324.7% from RMB150.8 million in 2022 to RMB640.3 million in 2023, with retail store revenue increasing by 330.0% and roboshop revenue increasing by 277.3%[62][67][68] - Online sales revenue in Hong Kong, Macao, Taiwan, and Overseas increased by 72.7% from RMB90.2 million in 2022 to RMB155.8 million in 2023, with Shopee revenue increasing by 70.3% and other online channels revenue increasing by 93.4%[69][71] - Shopee revenue increased by 70.3% from RMB25.2 million in 2022 to RMB42.9 million in 2023[72] - Pop Mart official website revenue increased by 45.9% from RMB27.1 million in 2022 to RMB39.5 million in 2023[72] - Wholesales and others revenue in Hong Kong, Macao, Taiwan, and overseas increased by 26.8% from RMB212.9 million in 2022 to RMB270.0 million in 2023[72] - Proprietary products revenue increased by 39.8% from RMB4,190.0 million in 2022 to RMB5,858.0 million in 2023, contributing 93.0% of total revenue[74] - Artist IPs revenue increased by 32.5% from RMB3,639.7 million in 2022 to RMB4,822.2 million in 2023[78] - Licensed IPs revenue increased by 88.2% from RMB550.3 million in 2022 to RMB1,035.7 million in 2023[79] - Costs of sales increased by 24.2% from RMB1,962.8 million in 2022 to RMB2,436.9 million in 2023[80] - Gross profit increased by 45.6% from RMB2,654.5 million in 2022 to RMB3,864.1 million in 2023, with gross profit margin rising from 57.5% to 61.3%[83] - Gross profit from Pop Mart proprietary products increased by 47.6% from RMB2,518.2 million in 2022 to RMB3,716.2 million in 2023, with gross profit margin rising from 59.7% to 63.4%[83] - Distribution and selling expenses increased by 36.3% from RMB1,470.8 million in 2022 to RMB2,004.7 million in 2023, driven by employee benefit expenses and depreciation of right-of-use assets[83] - Employee benefit expenses increased by 51.9% from RMB394.0 million in 2022 to RMB598.5 million in 2023, due to an increase in sales personnel from 3,171 to 3,735[83] - Depreciation of right-of-use assets increased by 13.2% from RMB269.3 million in 2022 to RMB304.9 million in 2023, due to the expansion of offline retail outlets by 76[84] - General and administrative expenses increased by 3.1% from RMB686.3 million in 2022 to RMB707.3 million in 2023, with administrative and design development personnel increasing from 1,007 to 1,110[84] - Other income increased by 64.4% from RMB45.6 million in 2022 to RMB74.9 million in 2023, with government grants increasing from RMB11.6 million to RMB30.9 million[84] - Operating profit increased by 111.0% from RMB583.4 million in 2022 to RMB1,230.6 million in 2023[84] - Profit for the year increased from RMB475.8 million in 2022 to RMB1,088.8 million in 2023[86] - Effective tax rate decreased from 25.6% in 2022 to 23.1% in 2023, with income tax expense increasing from RMB163.7 million to RMB327.0 million[85] - Non-IFRS adjusted net profit increased to RMB 1,190,519 thousand in 2023, up from RMB 573,540 thousand in 2022[93] - Non-IFRS adjusted net profit margin rose to 18.9% in 2023, compared to 12.4% in 2022[93] - Net current assets grew to RMB 5,950.2 million in 2023 from RMB 5,484.8 million in 2022[95] - Trade receivables increased to RMB 321.3 million in 2023 from RMB 194.4 million in 2022[95] - Inventories rose to RMB 904.7 million in 2023 from RMB 867.0 million in 2022[95] - Cash and cash equivalents surged to RMB 2,077.9 million in 2023 from RMB 685.3 million in 2022[95] - Trade payables increased to RMB 444.9 million in 2023 from RMB 259.0 million in 2022[96] - Gearing ratio increased to 22.0% in 2023 from 18.8% in 2022[99] - Bank borrowings stood at RMB 15.1 million in 2023, compared to nil in 2022[97] - Capital expenditures in 2023 totaled RMB 392,466 thousand, with RMB 324,179 thousand for property, plant, and equipment and RMB 68,287 thousand for intangible assets[109] - The Company's reserve available for distribution to shareholders amounted to approximately RMB11,964,634,000 as of 31 December 2023[183] IP and Product Performance - 10 IPs exceeded RMB100 million in sales for the first time, with top IPs SKULLPANDA and MOLLY each exceeding RMB1 billion in revenue[15] - The top five IPs accounted for around 55% of total sales, demonstrating a balanced and healthy IP portfolio[15] - 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[26] - SKULLPANDA's eighth series "Temperature" achieved sales of RMB 313.8 million by the end of 2023[26] - MOLLY's related revenue increased by 27.2% year-on-year through diversified commercialization operations[26] - THE MONSTERS' related revenue grew by 39.9% year-on-year due to diversified product designs and innovative presentation forms[26] - Hirono's revenue increased by 149.5% year-on-year in 2023[27] - MEGA Collection Series revenue amounted to RMB 681.5 million in 2023[31] - 10 artist IPs recorded sales of over RMB 100 million in 2023[26] Expansion and Operations - Pop Mart opened its first offline stores in France, Malaysia, Thailand, and the Netherlands in 2023[15] - The company redefined its business into four core segments: IP incubation and operation, pop toy merchandizing and retail, theme park and IP experience, and digital entertainment[16] - The company opened 55 new physical stores in Mainland China in 2023, increasing the total number from 329 to 363[37] - The company opened 123 new roboshops in Mainland China in 2023, increasing the total number from 2,067 to 2,190[37] - The company opened its first physical stores in France, Malaysia, Thailand, and the Netherlands in 2023[39] - The company opened its third flagship store in Ximending, Taiwan, setting a new global store record for first-day sales in December 2023[39] - POP LAND, the company's first immersive IP-themed park, opened in Beijing's Chaoyang Park in September 2023[42] - The company had 4,845 employees as of 31 December 2023, including 3,735 sales personnel and 1,110 administrative and development personnel[110] - Staff costs for the year ended 31 December 2023 amounted to RMB 1,048.5 million[110] - The company did not hold any significant investments as of 31 December 2023 but will continue to seek strategic investment opportunities[111] - No material acquisitions or disposals of subsidiaries, associates, or joint ventures were conducted as of 31 December 2023[112] - The company aims to enrich IP types, expand the IP portfolio, and introduce more top-selling series products[117] - International business growth will focus on overseas DTC strategy, physical stores, roboshops, and cross-border e-commerce platforms[118] - The company plans to expand its channel network, improve user shopping experience, and enhance member operations[119] - New brands such as MEGA, GONG, and inner flow will be further developed, along with emerging businesses like amusement parks and games[121] - The company operates in four segments: IP incubation and operation, pop toys and retail, theme park and IP experience, and digital entertainment[148] - The company is a leading pop toy company and a pioneer of pop toy culture in China[148] - The company's integrated operation platform covers the entire industry chain of pop toy IPs[148] - The company had 4,845 employees as of December 31, 2023, with the majority based in China[171] - The company recruits employees through campus job fairs, recruitment agencies, and online channels[171] - The company participates in government statutory employee benefit plans, including social insurance and housing provident funds[171] - The company maintains standard contracts with employees regarding confidentiality, intellectual property, and non-competition[171] - The company has not experienced significant labor disputes or recruitment difficulties as of December 31, 2023[171] - The Group's sales to its five largest customers accounted for less than 30% of total sales for the year ended 31 December 2023[172] - Purchases from the Group's five largest suppliers accounted for 60.6% of total purchases, with the largest supplier contributing 24.5% for the year ended 31 December 2023[172] - The Group's wholesale customers are provided credit terms ranging from 30 to 90 days, with preferential terms of up to 180 days for certain long-term customers[172] - The Group's suppliers may grant credit terms of up to 180 days[172] Digital and Online Performance - Revenue from the Pop Draw mini program on WeChat reached RMB729.3 million in 2023[37] - Revenue from Tmall Flagship stores amounted to RMB322.0 million in 2023[37] - DouYin platform revenue reached RMB283.3 million in 2023, representing a year-on-year increase of 431.2%[37] - The total number of registered members in Mainland China increased from 26.0 million to 34.4 million in 2023, with 8.4 million new registered members[37] - Member sales contributed 92.1% of total sales in 2023, with a repeat purchase rate of 50.0%[37] Dividends and Shareholder Information - The company plans to distribute annual dividends of no less than 20% of its distributable net profit[150] - The board declared a final dividend of RMB 28.21 cents per ordinary share for the year ended December 31, 2023[155] - The final dividend is subject to approval at the annual general meeting on May 21, 2024[155] - The register of members will be closed from May 27 to May 30, 2024, to determine entitlement to the final dividend[159] - The annual general meeting will be held on May 21, 2024[157] - The register of members will be closed from May 16 to May 21, 2024, to determine entitlement to attend and vote at the annual general meeting[158] - The board will review dividend policy based on operational results, cash flows, financial condition, capital requirements, and legal requirements[155] - The company will suspend share transfer registration from May 16, 2024, to May 21, 2024, for the Annual General Meeting[162] - Shareholders must submit transfer forms and related shares by May 14, 2024, to qualify for voting at the Annual General Meeting[162] - The company will suspend share transfer registration from May 27, 2024, to May 30, 2024, for the proposed final dividend[162] - Shareholders must submit transfer documents and related shares by May 24, 2024, to qualify for the final dividend[162] - The issued share capital of the Company was 1,348,243,150 shares as of 31 December 2023[176] - The Company maintained the minimum public float of 25% as required under the Listing Rules for the year ended 31 December 2023[185] Management and Board Information - Mr. Wang Ning, aged 37, is the executive Director, Chairman of the Board, and CEO of the company, responsible for overall strategic planning and management[125] - Ms. Liu Ran, aged 36, is the executive Director and vice president, in charge of the president office of the company[125] - Mr. Si De, aged 35, is the executive Director and chief operating officer, responsible for the operations of the Group and the overall business in mainland China[126] - Mr. Moon Duk Il, aged 45, is the executive Director, vice president, and president of international business, overseeing the Hong Kong, Macao, Taiwan, and overseas business department[126] - Mr. Tu Zheng, aged 46, appointed as non-executive Director in May 2019, responsible for providing professional advice