Sou Hu Cai Jing·2025-08-20 10:56Core Viewpoint - The upcoming launch of the Mini version of LABUBU is expected to become a best-selling product, enhancing the brand's appeal and market presence [1][4]. Financial Performance - In the first half of 2025, the company reported a total revenue of 138.8 billion yuan, a significant increase of 204.4% compared to the same period last year [5]. - The adjusted net profit reached 47.1 billion yuan, reflecting a remarkable year-on-year growth of 362.8% [5]. Contribution of LABUBU - LABUBU has been a key driver of the company's success, with its series, THE MONSTERS, generating 48.1 billion yuan in revenue, accounting for 34.7% of total revenue and showing a staggering growth of 668.0% year-on-year [7]. - The plush toy category, led by LABUBU, has surpassed the core category of figurines, now contributing 44% to the company's revenue, up from approximately 10% last year [7]. Market Expansion and Strategy - Despite only adding 12 new offline stores in the first half of the year, the domestic market still achieved revenue of 82.8 billion yuan, a year-on-year increase of 135.2% [11]. - The total number of offline stores in China has reached 443 [11]. - The company is focusing on the long-term value of LABUBU as a world-class IP, maintaining a cautious approach to product development to avoid over-commercialization [11]. Industry Insights - The high profit margins in the trendy toy industry are attracting significant interest from the capital market, with a notable gap between other brands and the company [11]. - The industry faces challenges in terms of resource acquisition from artists and the operational time required for effective management [13]. - The company has developed the capability for full lifecycle management of its IP, which is a competitive advantage built over years of experience [13].