POP MART (09992.HK) founder, Executive Director and CEO Wang Ning said at the earnings conference that operational challenges this year are greater than previously anticipated. Although first-half revenue growth exceeded 20%, the pressure in the second half is expected to be even greater, and "it is possible that the company will fail to achieve the full-year growth target of 20% set at the beginning of the year."

Wang Ning reiterated multiple times that the company has long defined this year as an "adjustment year," noting that last year's performance contained an element of luck, which drove rapid growth and allowed the market to overlook underlying issues. However, the company has identified internal management problems that need to be addressed. He added that this year's difficulties are greater than imagined or expected, and the second-half performance pressure will be more intense than the first half, partly due to the high comparison base from the third quarter of last year. Overseas online sales, which were exceptionally strong last year, have also seen a particularly significant decline this year. Nevertheless, the company will not resort to aggressive expansion or strategies that undermine long-term development merely to meet these performance targets.

Wang Ning stated that the IP portfolio has become healthier in the first half of this year, and the company has been continuously improving its organization, operations, and team details. This includes park renovations that exceeded expectations, as well as brand elevation initiatives, store upgrades, and refined brand management that have enhanced awareness and brand affinity. He noted that the domestic market has a solid operational foundation with substantial untapped potential. While overseas markets have seen a notable pullback, overseas stores remain healthy, with offline channels serving as the core of the international business.

Wang Ning also revealed that POP MART plans to repurchase shares worth no less than 2 billion yuan and no more than 5 billion yuan over the next six months.