Group 1 - The stock price of Pop Mart continued to decline, dropping 4.94% on December 9, following an 8.49% drop the previous day, resulting in a total decline of approximately 44% from its August peak, with a market value evaporating by over 200 billion HKD (approximately over 180 billion RMB) [2] - Deutsche Bank's latest report indicates that Pop Mart plans to significantly increase the production capacity of its Labubu toys from 10 million units in the first half of the year to an average of 50 million units per month by the end of the year [2] - The report warns that for trend toy brands that rely on unique designs and scarcity, large-scale mass production is often a sign of declining popularity [2]

Core Viewpoint - The article highlights the significant decline in Pop Mart's stock price, with a nearly 8.5% drop on December 8, marking the largest decline in over six weeks, and a cumulative drop of over 14% in the past month, resulting in a market value loss of over 180 billion HKD compared to its August peak [1]. Market Sentiment - The short-selling sentiment towards Pop Mart has intensified, with a short-selling amount of 1.092 billion HKD on December 8, an increase of 210.58% from the previous trading day and 47.35% higher than the average of the last 30 trading days [3]. - The short-selling ratio reached 19.23%, deviating by -17.33% from the average short-selling ratio of the last 30 trading days [3]. - The number of shares sold short increased from 1.1106 million to 1.6170 million since December 2, with the short-selling amount rising from 241 million HKD to 623 million HKD during the same period [3]. Trading Data - On December 8, the short-selling amount was 1.092 billion HKD, with a short-selling ratio of 19.23%, and the stock closed at 200.40 HKD, reflecting a decline of 8.49% [4]. - The trading data for the previous days shows fluctuations in short-selling amounts and ratios, with notable increases in short-selling activity leading up to December 8 [4]. Financial Performance - Pop Mart's overall revenue for Q3 2025 is expected to surge by 245%-250% year-on-year, driven by the launch of new products like Mini Labubu and SP Insomnia Theater, along with revenue recognition from pre-sales in Q2 [5]. - The core IP Labubu continues to be a key growth driver, although there are concerns about declining market interest following the launch of new products, with secondary market premiums dropping significantly [5]. - Deutsche Bank's recent report warns that the large-scale production increase from 10 million units in the first half of the year to an average of 50 million units per month by year-end may signal a decline in brand heat, which is critical for a brand reliant on unique design and scarcity [5].