Core Viewpoint - The stock price of Pop Mart (09992.HK) has been declining, with a drop of over 7% recently, reflecting market concerns about its sustainability and valuation risks despite strong financial performance [1][2]. Group 1: Stock Performance - On September 8, Pop Mart's stock price fell by 6.78%, closing at 288.6 HKD per share [1]. - The short-selling data for Pop Mart has significantly increased, with short positions rising from 285,800 shares on August 29 to 6,266,200 shares by the previous Friday [2]. Group 2: Product Performance - The resale prices of the mini LABUBU figures have decreased significantly, with second-hand prices dropping to between 1,400 and 1,850 RMB, and some less popular styles falling to as low as 81 RMB [1][2]. - The mini LABUBU series was launched on August 28, with an original price of 79 RMB per blind box, but the average resale price has decreased by 60% from its initial peak [1][2]. Group 3: Financial Performance - For the first half of 2025, Pop Mart reported a revenue of 13.88 billion RMB, a year-on-year increase of 204.4%, and an adjusted net profit of 4.71 billion RMB, up 362.8% [2]. - Despite the strong financial results, some institutions express concerns about the long-term sustainability and short-term valuation risks of Pop Mart [2][3]. Group 4: Market Sentiment - The stock has seen a significant price increase of 588% over the past 12 months, leading to profit-taking pressures in the short term [3]. - Analysts from Goldman Sachs noted that while the net profit growth exceeded expectations, it only "roughly met" the elevated expectations from buyers [3].