Shares of POP MART (9992.HK) tumbled more than 8% at Monday's market open, trading at HK$141.10 per share — a steep decline of approximately 57.74% from the August 2025 peak of HK$333.88. The sharp selloff pushed the company's total market capitalization below the HK$200 billion threshold.

By the midday trading break, the stock had pared some losses, still down over 3% at HK$149.00 per share, bringing the market value to approximately HK$198.4 billion.

The aggressive market reaction followed the release of the company's 2026 interim results after the close on August 20. The earnings report showed revenue of RMB 17.173 billion for the first half of 2026, representing a 23.8% year-on-year increase. Profit attributable to company shareholders reached RMB 5.038 billion, up 10.1% from the same period last year, while basic earnings per share climbed 10.5% to RMB 3.80. Overall gross margin stood at 69.7%, a slight contraction of 0.6 percentage points from the 70.3% recorded in the prior-year period.

Although the core financial metrics maintained positive growth, they fell significantly short of market consensus expectations. Analysts had widely projected first-half revenue of approximately RMB 19.98 billion and net profit of around RMB 6.64 billion.

POP MART founder, Chairman, and CEO Wang Ning acknowledged the challenges, stating: "The first half of this year has been challenging for us, facing many unexpected pressures and difficulties."

Following the interim report, the company's third-quarter pressure could exceed that of the first half, and management indicated that achieving the full-year growth target of 20% set at the beginning of the year may prove difficult. During the earnings conference call, Wang Ning also announced that POP MART plans to initiate a share buyback program over the next six months, with the amount ranging from no less than RMB 2 billion to no more than RMB 5 billion. This marks the first time he has disclosed such a definitive buyback plan during an earnings call.

Duan Yongping, the second-largest shareholder of POP MART, has been caught in the crossfire. Market estimates suggest his blended average cost basis sits at approximately HK$152.32 per share, implying that his substantial holding of over 102 million shares experienced a paper loss exceeding HK$100 million in the opening moments of trading. Duan had publicly stated on July 23: "I've only just started buying POP MART! I suspect I won't sell within the next 10 years."