Pop Mart International Group Ltd reported a sharp rise in 2025 earnings, driven by booming overseas demand and surging sales of its signature Labubu franchise, even as its shares tumbled following the results on investor concerns that a large portion of its revenue is tied to a single intellectual property.
Its revenue jumped 184.7 percent year-on-year to 37.12 billion yuan ($5.4 billion), according to the company's annual report. Net profit climbed 293.3 percent to 13.01 billion yuan, while gross margin expanded to 72.1 percent from 66.8 percent a year earlier.
Despite the strong performance, its stock price dropped about 30 percent after the results announcement as investors reacted to lofty expectations and concerns over sustainability.
Chairman and Chief Executive Officer Wang Ning said the company is targeting growth of "no less than 20 percent" in 2026, as it doubles down on global expansion and operational efficiency.
International markets were the standout driver. Overseas revenue surged 291.9 percent to 16.27 billion yuan, outpacing the 134.7 percent growth in China, where sales reached 20.85 billion yuan.
The Americas led the expansion, with revenue soaring 748.4 percent to 6.81 billion yuan, accounting for 18.3 percent of total sales. Asia-Pacific markets outside China rose 157.6 percent, while Europe and other regions climbed more than fivefold.
The company plans to expand its US store network from 72 locations to more than 100 in 2026, aiming to rebalance sales toward offline channels, which currently lag online.
Pop Mart's top-performing franchise, Labubu from The Monsters series, delivered 14.16 billion yuan in sales, up 365.7 percent year-on-year, representing about 38 percent of total revenue.
Still, analysts warn that reliance on a single blockbuster IP could expose the company to volatility if consumer interest fades or counterfeiting intensifies.
The company management said new Labubu product lines, including a 4.0 series and artist collaborations, will be launched in the second half, alongside co-branded products tied to the FIFA World Cup. The company is also developing films and books to deepen IP monetization.
A shift in product mix also reshaped the business. Plush toys emerged as the largest category, with revenue surging 560.6 percent to 18.71 billion yuan, accounting for more than half of total sales.
The toymaker is expanding beyond collectibles into adjacent businesses, including home appliances and themed dessert stores. Its theme park is set to unveil an upgraded phase this summer in Beijing.
Newly appointed Chief Growth Officer Justin Moon said the company will pursue a dual-track strategy focused on globalizing its IP portfolio while strengthening centralized operations, targeting growth in the Middle East, South Asia, Europe and South America.
