POP MART H1 2026: Revenue Jumps 23.8% to RMB 17.17 Billion, Mainland China Drives Growth While Overseas Sales Cool

Bulletin Express
Aug 20

POP MART International Group reported solid top-line momentum for the six months ended 30 June 2026, led by robust demand in Mainland China that offset softer trends in overseas markets.

Revenue and Profitability • Revenue rose 23.8% year on year to RMB 17.17 billion, with Mainland China contributing 71 % (RMB 12.20 billion, +47.3%). • Overseas turnover fell 11.1 % to RMB 4.97 billion as Asia-Pacific (-9.7 %) and Americas (-16.5 %) normalised from a high base; Europe and other regions edged up 5.9 %. • Gross profit increased 22.6 % to RMB 11.97 billion; margin eased to 69.7 % (1H 2025: 70.3 %), reflecting a lower share of high-margin overseas sales and higher raw-material costs. • Operating profit gained 11.3 % to RMB 6.72 billion. Net profit attributable to shareholders reached RMB 5.04 billion, up 10.1 %, while reported profit growth slowed to 8.9 % due to RMB 0.72 billion of foreign-exchange losses. • Non-IFRS adjusted net profit (ex-share-based payments) rose 9.5 % to RMB 5.16 billion, implying a 30.0 % margin (1H 2025: 33.9 %). • Basic EPS climbed 10.5 % to RMB 3.80.

Product & Channel Highlights • Plush toys remained the key growth engine: sales surged 60.0 % to RMB 9.82 billion, accounting for 57.2 % of group revenue. • Figure-toy revenue was broadly flat at RMB 5.19 billion; other IP-related items declined 15.8 % to RMB 2.16 billion. • Artist IPs generated RMB 15.29 billion (+25.0 %), led by Twinkle Twinkle (+580.6 % to RMB 2.65 billion). Licensed IP income rose 16.2 % to RMB 1.77 billion. • Global footprint expanded to 676 retail stores (+46) and 2,827 roboshops (+190). Mainland store count reached 455.

Cost & Expense Dynamics • Distribution and selling expenses grew 23.1 % to RMB 3.93 billion, driven by store expansion (lease-related costs +43.3 %) and higher sales headcount (sales staff +56.5 % to 9,734). • Administrative expenses increased 20.3 % to RMB 0.93 billion, reflecting ongoing investment in talent and systems. • Other gains swung to a RMB 0.69 billion loss, mainly on currency translation (RMB 0.72 billion loss versus RMB 0.12 billion gain a year earlier).

Cash Flow & Balance Sheet • Operating cash inflow reached RMB 3.64 billion; free cash was weighed by RMB 3.15 billion of dividends and HKD 1.74 billion share buy-back outlays. • Cash and equivalents stood at RMB 12.44 billion (31 Dec 2025: RMB 13.78 billion). • Inventories rose 11.5 % to RMB 6.10 billion as stock was positioned for overseas expansion; inventory days extended to 201 from 123. • Net current assets were RMB 17.42 billion; the Group remains debt-free with a 24.9 % gearing ratio (31 Dec 2025: 29.4 %). • Capital expenditure totalled RMB 0.72 billion, nearly double the prior-year period, reflecting store roll-outs and technology upgrades.

Capital Management • Paid a FY 2025 dividend of RMB 3.15 billion (RMB 2.3817 per share) in 1H 2026; no interim dividend declared. • Repurchased and cancelled 11.22 million shares for HKD 1.74 billion, supporting earnings-per-share growth.

Strategic Priorities Management emphasises continued IP incubation, product diversification and global channel build-out. Investment will target flagship stores in key cities, digital platform enhancement, and expansion of experiential businesses such as POP LAND and POP BAKERY. The Group also aims to strengthen supply-chain agility and extend its adoption of sustainable materials.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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