Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 80 HKD [7][8]. Core Insights - The company reported a significant revenue growth of 120-125% year-on-year for Q3, driven by strong performance in new product categories and rapid expansion in overseas markets [1][2]. - The domestic revenue growth was 55-60%, with notable contributions from the new plush toy category and successful IP launches [2]. - The overseas revenue saw an impressive increase of 440-445%, primarily due to strong store performance in Southeast Asia and online sales growth [3]. Summary by Sections Q3 Performance - The company achieved a revenue increase of 120-125% in Q3, exceeding market expectations, with domestic revenue growing by 55-60% and overseas revenue by 440-445% [1]. - New product categories, particularly the plush toys, and the expansion into Southeast Asian and North American markets contributed significantly to this growth [1]. Domestic Business Growth - The domestic revenue growth of 55-60% was attributed to the rapid rollout of plush toys and successful sales from new IPs [2]. - Offline channels, including retail stores and robot stores, experienced growth rates of 30-35% and 20-25%, respectively, while online channels saw a 55-60% increase [2]. Overseas Expansion - The overseas revenue growth of 440-445% was driven by the addition of numerous new stores, particularly in Southeast Asia, where store count increased by 80-90% year-on-year [3]. - The company achieved record sales during the back-to-school season in the U.S. through TikTok, indicating strong performance in the North American market [3]. Future Outlook - The company anticipates continued high growth in Q4, with expectations for new product categories and innovative business models to drive future performance [4]. - The expansion in overseas markets, particularly in Southeast Asia and North America, is still in its early stages, suggesting further growth potential [4]. Profit Forecast and Valuation - The adjusted net profit forecasts for 2024-2026 have been raised to 28.6 billion, 38.5 billion, and 48.1 billion RMB, respectively [5]. - The target price is set at 80 HKD, reflecting a 25x adjusted P/E ratio for 2025 [5].

Investment Rating - The report maintains a "Buy" rating for Pop Mart (09992 HK) [1][4] Core Views - Pop Mart's Q3 2024 revenue growth exceeded expectations, driven by strong domestic online business and rapid overseas expansion [4] - The company's revenue is expected to grow 120-125% YoY in Q3 2024, with domestic business up 55-60% and overseas business surging 440-445% [4] - Profit forecasts have been revised upwards, with projected net profits of 2 7/3 59/4 54 billion yuan for 2024-2026, corresponding to EPS of 2 01/2 68/3 38 yuan [4] Domestic Business Performance - Retail store revenue grew 30-35% YoY in Q3 2024, up from 25% in H1 2024 [5] - Robot store revenue increased 20-25% YoY, compared to 16% in H1 2024 [5] - Blind box machine revenue surged 55-60% YoY, a significant improvement from 7% in H1 2024 [5] - E-commerce and other online platforms saw overall revenue growth of 135-140%, with Douyin up 115-120% and Tmall flagship store up 155-160% [5] - Wholesale and other channels grew 45-50% YoY [5] - The company had 457 domestic retail stores as of October 2024, an increase of 24 stores from H1 2024 [5] Overseas Business Expansion - Overseas revenue grew 440-445% YoY in Q3 2024, accelerating from 259 6% in H1 2024 [6] - The company had 113 overseas stores as of Q3 2024, with 23 new stores added since H1 2024 [6] - Regional store distribution: 48 in East Asia, 26 in Southeast Asia, 10 in Europe, 13 in Australia, and 16 in North America [6] - TikTok US sales reached $11 89 million (~84 7 million yuan), while Thailand sales hit 840 million THB (~180 million yuan) [6] Financial Projections - Revenue is projected to grow from 12 17 billion yuan in 2024E to 20 3 billion yuan in 2026E, with YoY growth rates of 93 1%/33 2%/25 2% [7] - Net profit is expected to increase from 2 7 billion yuan in 2024E to 4 535 billion yuan in 2026E, with YoY growth rates of 149 4%/33 1%/26 2% [7] - Gross margin is forecast to improve from 64 0% in 2024E to 64 2% in 2026E [7] - Net margin is projected to remain stable at 22 2-22 3% from 2024E to 2026E [7] - ROE is expected to peak at 25 2% in 2025E before slightly declining to 24 0% in 2026E [7] - P/E ratio is forecast to decrease from 28 7x in 2024E to 17 1x in 2026E [7]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a significant revenue increase of 120%-125% year-on-year for Q3 2024, with mainland China revenue growing by 55%-60% and revenue from Hong Kong, Macau, and overseas markets increasing by 440%-445% [2][3] - The growth is driven by the release of key IP products and new product launches, with a notable performance from The Monsters plush products and new series contributing to revenue growth [2] - The company is expected to continue its rapid growth driven by high-quality IP and improved supply chain capabilities [2][3] Revenue and Profit Forecast - Total revenue is projected to reach RMB 12,745 million in 2024, with a year-on-year growth rate of 100.87% [1] - The adjusted net profit forecast for 2024-2026 has been raised to RMB 2,937.34 million, RMB 3,817.63 million, and RMB 4,706.84 million respectively, corresponding to P/E ratios of approximately 31, 24, and 20 times [3] Market Performance - The company has seen significant growth in both offline and online channels, with retail store revenue increasing by 30%-35% year-on-year and online flagship store revenue on platforms like Tmall and Douyin growing by 155%-160% and 115%-120% respectively [2] - The overseas market has also accelerated, with Labubu gaining traction in Thailand and overseas revenue accounting for over 45% of total revenue by September [3] Financial Metrics - The report highlights a projected EPS of RMB 2.10 for 2024, with a significant increase in net profit margins and return on equity [1][3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 78.9, indicating a potential upside of 24.3% from the current price of HKD 63.5 [4][10]. Core Insights - The company achieved a significant revenue growth of 120%-125% year-on-year in Q3 2024, surpassing market expectations, and demonstrating strong operational capabilities in IP management and global expansion potential [2][3]. - The report highlights a robust performance in the Chinese market, with revenue growth of 55%-60% in Q3 2024, compared to 32% in the first half of the year, showcasing the company's resilience in a challenging economic environment [2][7]. - Internationally, the company reported an impressive 440%-445% revenue growth in Q3 2024, further validating its global expansion strategy and the effectiveness of its IP monetization efforts [2][7]. Financial Performance Summary - Revenue projections for 2024-2026 have been revised upwards by 20%-31%, with net profit estimates increased by 24%-36% [2][8]. - The company is expected to generate revenues of RMB 12,395 million in 2024, RMB 17,733 million in 2025, and RMB 22,156 million in 2026, reflecting growth rates of 96.7%, 43.1%, and 24.9% respectively [3][5]. - The net profit for 2024 is projected at RMB 2,599 million, with a significant year-on-year increase of 140.1% [3][5]. Market Position and Valuation - The current valuation stands at 18.8 times the estimated P/E for 2025, with a PEG ratio of approximately 0.3, indicating that the stock remains attractive compared to other consumer stocks in China [2][3]. - The company’s strong IP incubation capabilities and optimistic outlook for international markets contribute to a strong long-term growth trajectory [2][3].

Investment Rating - The investment rating for Pop Mart (9992 HK) is not explicitly mentioned in the report, but the analysis suggests a positive outlook due to strong revenue growth and upward revisions in profit forecasts [1][2] Core Viewpoints - Pop Mart's Q3 2024 revenue growth exceeded expectations, with overall revenue increasing by 120%-125% YoY, driven by strong performance in both domestic and overseas markets [1] - Domestic revenue grew by 55%-60% YoY, while overseas revenue surged by 440%-445% YoY, significantly outperforming the company's initial guidance [1] - The company's IP commercialization capabilities have been validated, with overseas markets contributing 29 7% of total revenue in H1 2024, surpassing the full-year 2023 overseas revenue [1] - Pop Mart's diversified business model, including IP incubation, retail, theme parks, and digital entertainment, is expected to drive future growth [2] Revenue Breakdown - Domestic revenue growth was supported by multiple channels: retail stores (+30-35% YoY), robot stores (+20-25% YoY), Pop Mart's online box-drawing machine (+55-60% YoY), and e-commerce platforms (+135-140% YoY) [1] - Overseas revenue growth was driven by the opening of flagship stores and key locations, with notable performances in Thailand, where a Labubu-themed store achieved over RMB 10 million in sales on its opening day [1] Business Expansion - Pop Mart is actively exploring new business models, including theme parks, games, and PTS toy exhibitions, which have already shown profitability [2] - The company plans to open 30-40 new overseas stores in H2 2024, with Q4 expected to contribute over 40% of annual sales due to the holiday season [1] Financial Forecasts - Revenue for 2024-2026 is projected to be RMB 12 1 billion, RMB 17 1 billion, and RMB 22 2 billion, representing YoY growth of 92%, 41%, and 30%, respectively [2] - Net profit attributable to shareholders is expected to be RMB 2 68 billion, RMB 4 14 billion, and RMB 5 70 billion for 2024-2026, with YoY growth of 148%, 54%, and 38% [2] - EPS for 2024-2026 is forecasted to be RMB 1 99, RMB 3 08, and RMB 4 24, with corresponding P/E ratios of 29X, 19X, and 14X as of October 22, 2024 [2] Key Financial Metrics - Gross margin is expected to improve from 61 32% in 2023 to 66 08% in 2026, driven by higher overseas revenue and economies of scale [6] - Net profit margin is projected to increase from 17 18% in 2023 to 25 65% in 2026, reflecting the company's improved profitability [6]

泡泡玛特大涨18%，总市值突破千亿港元。 泡泡玛特在今日交易中股价大幅上涨18.44%，最新报价为75.15港元。 成交额达到5.84亿港元。 目前，泡泡玛特的市盈率TTM为60.31，市净率为10.96，总市值为1009.22亿港元，每手交易单位为200 股。 泡泡玛特10月22日在港交所发布公告称，第三季度整体收益同比增长120%—125%，其中中国内地收益 同比增长55%—60%，港澳台及海外收益同比增长440%—445%。 零售店收益同比增长30%—35%。 机器人商店收益同比增长20%—25%。 泡泡玛特抽盒机收益同比增长55%—60%。 电商平台及其他线上平台收益同比增长135%—140%，其中抖音平台收益同比增长115%—120%，天猫 旗舰店收益同比增长155%—160%。 批发及其他渠道收益同比增长45%—50%。 校对：杨舒欣 ...

Investment Rating - The report assigns a "Buy" rating to Pop Mart (9992 HK) with a target price of HKD 63 6 [2] Core Views - The global and Chinese trendy toy markets are experiencing rapid growth with CAGRs of 22 8% (2015-2019) and 32 8% (2015-2021) respectively The Chinese market is expected to reach RMB 76 4 billion by 2024 [2] - Pop Mart has established a comprehensive trendy toy industry chain platform with strong IP mining and operation capabilities Its domestic business is entering a high-quality development phase while overseas markets are becoming a second growth curve [2][3] - The company's revenue and net profit are expected to grow significantly from 2024 to 2026 with projected CAGRs of 39 6% and 51 9% respectively [3] Industry Overview - The trendy toy industry has evolved from a niche luxury market to a mass-market phenomenon driven by blind box products and expanding IP boundaries The global market size grew from $8 7 billion in 2015 to $19 8 billion in 2019 [10] - China's trendy toy market is still in a high-growth phase with significant room for penetration and concentration improvement The market size increased from RMB 6 3 billion in 2015 to RMB 34 5 billion in 2021 [12] - Z generation consumers aged 18-35 are the main driving force behind the trendy toy market accounting for 55% of purchases [13][14] Company Analysis Business Model - Pop Mart operates a full industry chain platform covering artist discovery IP operation consumer reach and trendy toy promotion It has established a leading sales network with 374 retail stores and 2 189 robot stores in mainland China and 92 retail stores (including joint ventures) and 162 robot stores in overseas markets as of June 2024 [2] - The company has developed a robust IP matrix including artist IPs (MOLLY DIMOO SKULLPANDA) and licensed IPs (Disney Marvel) In 2023 it had 10 artist IPs with sales exceeding RMB 100 million [30] Financial Performance - In H1 2024 Pop Mart achieved revenue of RMB 4 56 billion (+62 0% YoY) and net profit of RMB 921 million (+93 3% YoY) Overseas revenue grew 259 6% YoY accounting for 29 7% of total revenue [2] - The company's gross margin improved to 64 0% in H1 2024 driven by supply chain optimization and product structure improvement [44] Growth Drivers - Domestic growth is supported by store upgrades product category expansion and new channel development particularly on Douyin [47] - Overseas markets are becoming a key growth driver with revenue contribution increasing to 30% in H1 2024 The company is accelerating DTC strategy implementation and local market penetration [47] Future Outlook - Pop Mart is expected to maintain strong growth momentum with projected revenue of RMB 10 24 billion (+62 5% YoY) and net profit of RMB 2 11 billion (+95 3% YoY) in 2024 [3] - The company's PE ratios for 2024-2026 are estimated at 37X 28X and 22X respectively based on the closing price of HKD 63 95 on October 18 2024 [3]

Investment Rating and Target Price - The report initiates coverage with a "Buy" rating and sets a target price of HKD 65.0 for the company, based on a 28x adjusted PE for 2025 [1][6] Core Investment Thesis - The company is a leading platform for commercializing trendy IPs in China, with a mature operational system covering IP incubation, efficient supply chains, and omnichannel sales [1] - Four key drivers for 2024-26: overseas market expansion, store optimization, product innovation, and operational efficiency improvements [1] - The company is expected to achieve adjusted net profits of RMB 2.21 billion, RMB 2.82 billion, and RMB 3.42 billion in 2024, 2025, and 2026, respectively [1] Industry Overview - The trendy toy market in China is experiencing rapid growth, driven by self-indulgence trends, female consumer power, and social media influence [2] - The domestic entertainment product market is projected to grow from RMB 71 billion in 2023 to RMB 128.9 billion by 2027, with a CAGR of 16% [2] - The global trendy toy market was valued at USD 57.1 billion in 2023, with significant potential for Chinese brands to expand overseas [2] Company Strategy and Growth Drivers - The company is transitioning into a "big trendy toy" era, focusing on internationalization, product innovation, and refined operations [3] - Overseas revenue accounted for 30% of total revenue in 1H24, with a projected year-on-year growth of over 200% for the full year [4] - The company plans to expand its overseas store count to 130-140 by the end of 2024, with strong performance in high-potential markets like Thailand and the US [4] Financial Performance and Projections - Revenue is expected to grow from RMB 6.3 billion in 2023 to RMB 15.6 billion by 2026, with a CAGR of 21.1% [5] - Net profit attributable to shareholders is projected to increase from RMB 1.08 billion in 2023 to RMB 3.34 billion by 2026 [5] - ROE is expected to rise from 14.69% in 2023 to 26.32% by 2026, reflecting improved profitability and operational efficiency [5] Competitive Advantages - The company has built a strong IP matrix, with 10 IPs generating over RMB 100 million in sales annually [14] - Its supply chain efficiency and digital systems have improved, with automation levels increasing from less than 10% to 30-40% in recent years [43] - The company has a deep membership system with 3.89 million members as of 1H24, and a high repurchase rate of 50% [45] Market Expansion and Product Innovation - The company is expanding its product lines beyond blind boxes, with new categories like plush toys, building blocks, and collectible cards contributing to revenue growth [41] - It plans to launch non-toy formats such as dessert shops and accessory stores by the end of 2024, leveraging its IP resources [41] - The company is also exploring IP licensing, gaming, and theme parks to diversify its revenue streams [60]

Investment Rating - The report maintains a "Buy" rating for Pop Mart (09992) with a target price of HKD 63.35, implying a 22.30% upside from the current price [7] Core Views - Pop Mart's IP platformization and globalization strategies are yielding results, with overseas expansion and category diversification driving growth [5] - The company's overseas strategy is replicable, with higher pricing and profitability compared to the domestic market [5] - Pop Mart's overseas market potential is estimated to exceed RMB 10 billion, with a long-term target of over 500 stores globally [5][46] - The company's IP creation and operational capabilities have been validated, with a focus on extending IP lifecycles and expanding commercialization through category diversification [6] Overseas Expansion - Pop Mart's overseas revenue grew 2.6x in H1 2024, contributing 29.7% of total revenue, with Southeast Asia being a key growth driver [16] - The company's overseas gross margin exceeds domestic levels, with offline and online channels achieving 72% and 73% gross margins, respectively [17] - Pop Mart's overseas pricing strategy includes premium pricing in markets like the US and UK, with average premium rates ranging from 12% to 61% [20] - The company's overseas expansion follows a phased approach, transitioning from B2B to B2C and from light to heavy asset investments [31] Domestic Growth Sustainability - Pop Mart's domestic growth is supported by IP platformization, with multiple revenue-generating IPs reducing reliance on any single IP [55] - The company's offline retail store network in China is expanding, with 374 stores as of H1 2024, and there is still room for growth compared to Lego's 500 stores in China [58] - Category expansion, including high-end and derivative products, is driving ARPPU growth and contributing significantly to domestic revenue [64][65] Financial Projections - Revenue for 2024-2026 is projected to be RMB 10.278 billion, RMB 13.333 billion, and RMB 16.296 billion, respectively, with year-on-year growth rates of 63%, 30%, and 22% [7] - Non-IFRS adjusted net profit for 2024-2026 is expected to be RMB 2.193 billion, RMB 2.849 billion, and RMB 3.568 billion, respectively, with year-on-year growth rates of 85%, 30%, and 25% [7]

Revenue Growth - Revenue increased by 62.0% to RMB 4,557,831,000 in the first half of 2024 compared to the same period in 2023[19] - Revenue reached RMB4,557.8 million, a year-on-year increase of 62.0%[23][24] - The company's revenue increased by 62.0% year-on-year, from RMB2,813.8 million in the first half of 2023 to RMB4,557.8 million in the first half of 2024[52][53] - Total revenue increased by 62.0% from RMB2,813.8 million in H1 2023 to RMB4,557.8 million in H1 2024[83] - Revenue increased to RMB 4,557,831,000, up 62% from RMB 2,813,812,000 in the same period last year[172] Profitability - Gross profit rose by 71.9% to RMB 2,919,105,000, with a gross profit margin of 64.0%[19] - Operating profit surged by 109.5% to RMB 1,126,417,000[19] - Profit for the period doubled to RMB 964,142,000, a 102.0% increase[19] - Non-IFRS adjusted net profit grew by 90.1% to RMB 1,017,625,000[19] - The company's gross profit margin increased from 60.4% in the first half of 2023 to 64.0% in the first half of 2024[56] - Gross profit grew by 71.9% from RMB1,698.4 million in H1 2023 to RMB2,919.1 million in H1 2024, with gross profit margin rising from 60.4% to 64.0%[84] - Operating profit surged by 109.5% from RMB537.8 million in H1 2023 to RMB1,126.4 million in H1 2024[86] - Profit for the period increased by 102.0% from RMB477.2 million in H1 2023 to RMB964.1 million in H1 2024[86] - Non-IFRS adjusted net profit grew to RMB1,017.6 million in H1 2024, up from RMB535.4 million in H1 2023[87] - Non-IFRS adjusted net profit margin improved from 19.0% in H1 2023 to 22.3% in H1 2024[87] - Gross profit rose to RMB 2,919,105,000, a 72% increase from RMB 1,698,360,000 in the previous year[172] - Operating profit surged to RMB 1,126,417,000, more than double the RMB 537,762,000 recorded in the prior year[172] - Net profit attributable to owners of the company grew to RMB 921,333,000, up 93% from RMB 476,575,000[172] - Basic earnings per share increased to RMB 69.49 cents, up 96% from RMB 35.46 cents[174] Regional Revenue - Mainland China revenue was RMB3,206.4 million, up 31.5% year-on-year[23][24] - Hong Kong, Macao, Taiwan, and overseas revenue surged to RMB1,351.5 million, a 259.6% year-on-year increase, accounting for 29.7% of total revenue[23][24] - Revenue from offline channels in Mainland China increased by 23.1%, from RMB1,450.6 million in the first half of 2023 to RMB1,786.3 million in the first half of 2024[58][59] - Revenue from offline channels in Hong Kong, Macao, Taiwan, and overseas increased significantly, from RMB190.4 million in the first half of 2023 to RMB946.7 million in the first half of 2024[56] - Offline channel revenue in Hong Kong, Macao, Taiwan, and overseas skyrocketed by 397.3% YoY from RMB190.4 million in H1 2023 to RMB946.7 million in H1 2024[68][69] - Revenue from Hong Kong, Macao, Taiwan and overseas increased by 259.6% year-on-year from RMB375.8 million in H1 2023 to RMB1,351.5 million in H1 2024, with Southeast Asia contributing 41.1% of the total revenue[75][76] - Revenue from North America increased by 377.7% year-on-year from RMB37.3 million in H1 2023 to RMB178.0 million in H1 2024, contributing 13.2% of total revenue[76] IP and Product Performance - MOLLY revenue increased by 90.1% year-on-year to RMB782.2 million[26][27] - THE MONSTERS revenue grew 292.2% year-on-year to RMB626.8 million[26][27] - SKULLPANDA revenue rose 9.2% year-on-year to RMB574.6 million[26][27] - Hirono IP revenue increased by 124.3% year-on-year[29][32] - Zsiga IP revenue grew 169.5% year-on-year[29][32] - MEGA COLLECTION revenue was RMB586.1 million, accounting for 12.9% of total revenue[31][32] - Plush products revenue reached RMB446.1 million, representing 9.8% of total revenue[33] - Plush products generated revenue of RMB 446.1 million in the first half of 2024, accounting for 9.8% of total revenue[34] - MOLLY IP revenue increased by 90.1% year-on-year from RMB411.4 million in H1 2023 to RMB782.2 million in H1 2024, contributing 17.2% of total revenue[79] - THE MONSTERS IP revenue surged by 292.2% year-on-year from RMB159.8 million in H1 2023 to RMB626.8 million in H1 2024, accounting for 13.7% of total revenue[79] - Revenue from artist IPs increased by 70.4% from RMB2,164.3 million in H1 2023 to RMB3,687.8 million in H1 2024, with its revenue proportion rising from 76.9% to 81.0%[80][81] - Revenue from licensed IPs grew by 64.9% from RMB421.5 million in H1 2023 to RMB694.9 million in H1 2024[81] - Figure toys revenue increased by 30.2% from RMB2,041.1 million in H1 2023 to RMB2,656.8 million in H1 2024[83][84] - MEGA revenue surged by 141.9% from RMB242.3 million in H1 2023 to RMB586.1 million in H1 2024[83][84] - Plush toys revenue skyrocketed by 993.6% from RMB40.8 million in H1 2023 to RMB446.1 million in H1 2024[83][84] - Other IP-related products and others revenue rose by 77.5% from RMB489.6 million in H1 2023 to RMB868.8 million in H1 2024[83][84] Store and Channel Performance - The company opened 20 new physical stores in Mainland China in the first half of 2024, increasing the total number of stores from 363 to 374[36][37] - Revenue from the Pop Draw Weixin mini program reached RMB 399.2 million in the first half of 2024, showing positive year-on-year growth[38][40] - DouYin platform revenue increased by 90.7% year-on-year to RMB 208.9 million in the first half of 2024[38][40] - Tmall Flagship store revenue grew by 28.1% year-on-year to RMB 198.8 million in the first half of 2024[38][40] - The company had 92 physical stores and 162 roboshops in Hong Kong, Macao, Taiwan, and overseas as of 30 June 2024[42][45] - Retail store revenue increased by 24.7% YoY from RMB1,179.5 million in H1 2023 to RMB1,471.3 million in H1 2024, with the total number of retail stores reaching 374 by June 2024[61][62] - Roboshop revenue grew by 16.2% YoY from RMB271.1 million in H1 2023 to RMB315.0 million in H1 2024, with the total number of roboshops reaching 2,189 by June 2024[62] - Online channel revenue surged by 34.0% YoY from RMB817.4 million in H1 2023 to RMB1,095.7 million in H1 2024, with DouYin platform revenue increasing by 90.7%[63][64] - Retail store revenue in Hong Kong, Macao, Taiwan, and overseas surged by 441.5% YoY from RMB165.0 million in H1 2023 to RMB893.5 million in H1 2024, with the total number of retail stores reaching 83 by June 2024[69] - Revenue from roboshop sales in Hong Kong, Macao, Taiwan and overseas increased by 109.7% year-on-year from RMB25.4 million in H1 2023 to RMB53.2 million in H1 2024, with the total number of roboshops reaching 143 as of 30 June 2024[70] - Online sales revenue increased by 335.4% year-on-year from RMB56.8 million in H1 2023 to RMB247.2 million in H1 2024, with Pop Mart official website revenue growing by 465.5% to RMB69.6 million[71][72] Financial Position - Total assets increased to RMB 11,017,479,000 as of 30 June 2024[20] - Total equity reached RMB 8,452,657,000, up from RMB 7,780,382,000 at the end of 2023[20] - Net current assets increased from RMB5,950.2 million as of 31 December 2023 to RMB6,647.0 million as of 30 June 2024[90][92] - Trade receivables decreased from RMB321.3 million as of 31 December 2023 to RMB263.7 million as of 30 June 2024, with turnover days decreasing from 15 days to 12 days[93][97] - Inventories increased from RMB904.7 million as of 31 December 2023 to RMB916.7 million as of 30 June 2024, with turnover days decreasing from 133 days to 101 days[94][98] - Cash and cash equivalents increased from RMB2,077.9 million as of 31 December 2023 to RMB3,608.7 million as of 30 June 2024[95][99] - Trade payables increased from RMB444.9 million as of 31 December 2023 to RMB555.1 million as of 30 June 2024, with turnover days increasing from 53 days to 56 days[96][100] - The gearing ratio increased from 22.0% as of 31 December 2023 to 23.3% as of 30 June 2024[103][105] - Total assets expanded to RMB 11,017,479,000, a 10.5% increase from RMB 9,968,863,000 at the end of 2023[176] - Cash and cash equivalents rose to RMB 3,608,674,000, a 73.7% increase from RMB 2,077,927,000[176] - Total equity increased to RMB 8,452,657,000, up 8.6% from RMB 7,780,382,000[176] - Non-current assets grew to RMB 2,302,138,000, a 0.7% increase from RMB 2,285,394,000[176] - Current liabilities increased to RMB 2,068,343,000, up 19.3% from RMB 1,733,301,000[177] - The company's retained earnings as of 30 June 2024 stood at RMB 4,239,103 thousand[179] - Total equity attributable to owners of the company as of 30 June 2024 was RMB 8,399,036 thousand[179] - Non-controlling interests as of 30 June 2024 were RMB 53,621 thousand[179] - The company's total equity as of 30 June 2024 was RMB 8,452,657 thousand[179] - The Group has cash and cash equivalents, restricted cash, and term deposits totaling RMB 7,029,903,000 as of June 30, 2024[195] - Trade payables increased to RMB 555,137,000 as of June 30, 2024, compared to RMB 444,944,000 at the end of 2023[196] - License fees payables rose to RMB 288,510,000 as of June 30, 2024, up from RMB 197,114,000 at the end of 2023[196] - Lease liabilities totaled RMB 905,051,000 as of June 30, 2024, compared to RMB 880,155,000 at the end of 2023[196] - The Group's total financial liabilities amounted to RMB 2,081,901,000 as of June 30, 2024, up from RMB 1,846,682,000 at the end of 2023[196] Cash Flow - Net cash generated from operating activities increased to RMB 1,905,271 thousand in 2024, up from RMB 1,092,337 thousand in 2023[182] - Interest received surged to RMB 191,283 thousand in 2024, compared to RMB 76,715 thousand in 2023[182] - Income tax paid rose to RMB 194,041 thousand in 2024, up from RMB 97,857 thousand in 2023[182] - Net cash generated from investing activities reached RMB 333,591 thousand in 2024, significantly higher than RMB 82,034 thousand in 2023[182] - Dividends paid increased to RMB 373,025 thousand in 2024, compared to RMB 118,995 thousand in 2023[183] - Net increase in cash and cash equivalents was RMB 1,522,888 thousand in 2024, up from RMB 616,084 thousand in 2023[183] - Cash and cash equivalents at the end of the period stood at RMB 3,608,674 thousand in 2024, compared to RMB 1,473,382 thousand in 2023[183] Expenses - Costs of sales increased by 46.9% from RMB1,115.5 million in H1 2023 to RMB1,638.7 million in H1 2024, driven by higher goods costs and design/licensing expenses[84] - Distribution and selling expenses increased by 54.1% from RMB878.3 million in H1 2023 to RMB1,353.2 million in H1 2024[85] - Employee benefit expenses rose by 31.7% from RMB281.4 million in H1 2023 to RMB370.5 million in H1 2024, driven by an increase in sales personnel from 3,189 to 4,232[85] - Lease-related expenses increased by 58.7% from RMB210.2 million in H1 2023 to RMB333.6 million in H1 2024, due to the addition of 79 offline retail outlets[85] - General and administrative expenses grew by 31.1% from RMB331.3 million in H1 2023 to RMB434.4 million in H1 2024, with administrative and design personnel increasing from 959 to 1,238[85] - Share-based compensation expenses in 2024 were RMB 53,483 thousand[179] Strategic Initiatives - The company launched several new IPs and product series that gained popularity among consumers[22] - The company launched its first building block product in mid-June 2024, enhancing IP representation and fan interaction through innovations in craftsmanship, materials, and gameplay[34][35] - The company opened themed and flagship stores in multiple overseas landmarks, including Bangkok, Los Angeles, Vietnam, and Oxford Street, enhancing global brand awareness[43][45] - The overseas e-commerce team applied differentiated strategies on platforms like Shopee, Lazada, and TikTok, focusing on localized services and high-quality content to drive sales and brand exposure[44][45] - POP LAND successfully established must-visit attractions, must-try dining experiences, and must-buy products, attracting a broad spectrum of fans and families from China and internationally[47] - The "2024 PTS Beijing International Pop Toy Festival" hosted 26 autograph sessions and nearly a hundred entertainment events, transforming from a traditional "Pop Toy Convention" to a comprehensive "Pop Toy Festival"[48] - LABUBU debuted as the "Magical Thailand Experience Ambassador" in Thailand, enhancing the brand's visibility and influence in the country[50] - The company launched its first self-designed mobile game, Dream Home, on 27 June 2024, combining business simulation and party gameplay for a lighter and more casual gaming experience[51] - The company plans to enrich IP types, expand the IP base, and introduce more products under the top series, while continuously incubating and operating IPs to strengthen their essence and deepen fan connections[114] - The company aims to increase the types of pop toys, explore the value of box products like MEGA, plush toys, and toy bricks, and improve relevant technologies and production and sales procedures[114] - The company will deploy its supply chain globally, seeking more suitable and efficient partners, including manufacturers and suppliers, to meet market demand and ensure efficient production supply[114] - The company will focus on sustainable development and environmental protection by launching more products and packaging made of environmentally friendly materials[114] - The company plans to expand its global business footprint, particularly in Southeast Asia and Europe, by establishing offline channels in major global landmarks and enhancing consumer experiences[115][117] - The company will strengthen partnerships with third-party platforms, invest in content-driven e-commerce platforms, and collaborate with more brands and artists to enrich product lines and boost brand awareness[