Market capitalization evaporated over HKD 58 billion in one day, Pop Mart's stock price plummeted sharply.

China Fund Reporter Taylor

Brothers and sisters, it came out of nowhere—Pop Mart opened for trading this afternoon and then saw a straight-line plunge. As of press time, its stock price was down more than 20%, and its market value had been wiped out by over HKD 58 billion in a single day.

On the news front, the company released its full-year results at midday. In 2025, revenue rose year over year by 185% to RMB 37.12 billion, slightly below the market’s expectation of RMB 38 billion. Net profit increased 309% year over year to RMB 12.8 billion, slightly above the expectation of RMB 12.6 billion. Adjusted net profit was RMB 13.08 billion, up 284.5% year over year.

With such a strong set of earnings, why did the stock price fall instead of rising? Today, Pop Mart’s share price hit its largest intraday decline since April 2025.

Market participants noted that the company’s disclosed full-year revenue growth still depended heavily on LABUBU sales, disappointing investors who had hoped other IPs would take over and drive growth.

DZT Research analyst Ke Yan said, “In the second half, reliance on LABUBU for sales is even higher than in the first half.”

The earnings report shows that the LABUBU family generated revenue of RMB 14.16 billion. All of the company’s four key global regions recorded triple-digit growth, exceeding the market expectation of RMB 12.5 billion. The character contributed about 40% of total revenue, higher than 23% in 2024.

Although the heavily promoted Skullpanda delivered impressive performance, with revenue reaching RMB 3.5 billion and beating expectations, other popular IPs such as Crybaby and Molly underperformed expectations. Among them, Molly—an early flagship IP for the company—generated only RMB 2.9 billion in revenue, far below the market’s expected RMB 4.6 billion, highlighting the difficulty for legacy IPs to sustain growth.

Some analysts noted, “Whether Pop Mart can continue growing this year hinges on expansion in overseas markets (especially Asia-Pacific and North America), diversification of IPs beyond LABUBU, and the ongoing launch of new products.”

Previously, Morgan Stanley predicted that, due to highly divided market views, Pop Mart’s stock price would remain volatile after the earnings release on March 25. In its report, analysts Dustin Wei, Jenny Yu, and others stated that over the past two and a half months, the stock price of Pop Mart has fluctuated significantly, but they have not observed any material change in how both bulls and bears adjust their earnings expectations. The bullish side expects 2026 earnings to reach RMB 16.5 billion to RMB 17.0 billion, while the bearish side expects weak earnings growth and a downturn starting from the second half of 2026. Because the bulls and bears may interpret the same information differently. Southbound capital is still the main source of long positions, while overseas foreign exchange hedge funds are the main source of short positions.

Pop Mart’s net profit in 2025 surged 293% year over year, but revenue came in below expectations, and the stock price fell by more than 15%.

Editor: Du Yan

Proofreader: Ji Yuan

Production: Jia Ying

Reviewed by: Xu Wen