LABUBU becomes the main revenue driver. How can Pop Mart break the reliance on a single IP to achieve steady growth?

Recently, Pop Mart released its 2025 performance announcement, showing that the company’s annual revenue reached 37.12 billion yuan, a year-on-year increase of 184.7%; net profit was 12.776 billion yuan, a year-on-year increase of 308.8%. This data marks a recent high, but after the financial report was released, the stock price fell sharply for two consecutive days, closing down 22.51% on March 25 and dropping another 10.46% the next day, raising market concerns about the sustainability of its growth.

From a business structure perspective, IP operation remains the core driving force. In 2025, the revenue from self-owned products accounted for 99.1%, with artist IP contributing 33.406 billion yuan, a year-on-year increase of 200.4%. The THE MONSTERS series became the biggest contributor, generating 14.161 billion yuan, with its share rising from 23.3% to 38.1%, a year-on-year increase of 365.7%. Other major IPs, such as SKULLPANDA and CRYBABY, had revenue shares of less than 10%, most of which have been mature IPs operating for over five years. This high dependency on a single IP and old IPs has become the main focus of market concerns.

In terms of product structure, plush toys have for the first time surpassed figurines to become the largest category. In 2025, revenue from plush products reached 18.708 billion yuan, accounting for 50.4%, a year-on-year increase of 560.6%; revenue from figurines dropped from 53.3% to 32.4%. Revenue from MEGA and derivative products grew by 13.8% and 182.1%, respectively, but their shares remain low. The membership system performed well, with registered members exceeding 72.58 million, an increase of 26.5 million, contributing 93.7% of sales and an increase in repurchase rate to 55.7%.

In response to market doubts, the company’s management emphasized its platform operation capabilities. Chairman Wang Ning stated that even excluding LABUBU’s performance, the company still maintains rapid growth and is confident in the IP lifecycle and market popularity. The company is strengthening the influence of IP through diversified outreach methods, including holding themed exhibitions globally, integrating IP into urban landmarks, and opening accessory stores and dessert pop-up shops. Upgrading stores in the Chinese market is also underway, focusing on creating more storytelling and interactive consumer scenarios.

The overseas market has become an important growth engine. In 2025, overseas revenue accounted for nearly 50%, with the Americas market growing by 748.4% and Europe and other regions growing by 506.3%. The company opened 95 new stores overseas throughout the year, with the total number of stores in the Asia-Pacific, Americas, and Europe reaching 85, 64, and 36, respectively. The use of funds raised from the listing has also been adjusted, shifting funds originally designated for IP acquisitions to overseas expansion, reallocating digital construction funds to operational funds, and expanding the investment scope to IP commercialization platforms such as theme parks.

To align with its globalization strategy, Pop Mart has initiated an organizational structure upgrade, establishing four regional headquarters and 10 central departments, covering key areas such as branding, supply chain, and technical R&D. The management revealed that it will change its capital-centered expansion model, focusing on layout in second- and third-tier cities, tourist attractions, and flagship store projects. Despite the impressive 2025 performance, the company remains cautious about its growth expectations for 2026, setting a target of no less than 20%, emphasizing steady operations rather than aggressive expansion.