Cici Cao
Chinese toy titan Pop Mart International’s (9992) shares once surged more than 8 percent yesterday after the maker of the wildly popular Labubu doll said it was launching a comprehensive corporate revamp and expansion of its global business.
This would include opening new regional headquarters across the world.
In a letter to employees, chairman and chief executive Wang Ning said that overseas business now accounts for nearly 40 percent of Pop Mart’s revenue, and it would move further toward becoming an international group.
Wang said the upgrade will focus on regional strategies, with Pop Mart setting up regional headquarters in Greater China, Americas, Asia Pacific and Europe to optimize resources and improve management and coordination through a “flatter organizational structure.”
The group’s platform business will also be upgraded.
Under the revamped organizational structure, senior vice president Wen Deyi will also serve as co-chief operating officer, and will be jointly responsible with Si De for the management of the global business.
The moves come after Pop Mart reported a 2024 net profit that more than doubled thanks to the popularity of its IP collectibles adored by celebrities such as Blackpink’s Lisa.
The Chinese toymaker recorded a net profit of 3.13 billion yuan (HK$3.35 billion) last year, up 189 percent from 2023, with revenue amounting to 13.04 billion yuan, up 107 percent year-on-year.
In 2024, its mainland business contributed to 7.97 billion yuan in revenue, marking 52.3 percent growth, while turnover from Hong Kong, Macau, and other markets surged 3.75 times to 5.07 billion yuan.
Sales in Southeast Asia surged 619 percent last year, while its North American market grew more than five times.
In terms of its fast-growing intellectual property products, sales of The Monsters dolls – including Labubu – rose to 3 billion yuan last year compared to 368 million yuan before.’Crybaby,’ another one of its fast-growing toys, saw an over 1,500 percent growth in related revenue.
The Molly and Skullpanda series generated revenues of 2.09 billion yuan and 1.3 billion yuan respectively.
Labubu was created by Hong Kong-born artist Kasing Lung Ka-sing. The figurine with big eyes, pointy ears and sharp teeth has won the hearts of millions of young fans and celebrities like Lisa, Singaporean actress Jeanette Aw and Thailand’s Araya Alberta Hargate.
Pop Mart’s shares closed 6.4 percent higher at HK$159.10 in Hong Kong yesterday.
