On March 25, 2026, shares of Pop Mart (09992.HK) experienced a significant decline during afternoon trading following the release of its 2025 annual results, falling more than 16%.

Financially, the company reported robust performance for 2025. During the reporting period, Pop Mart achieved revenue of 37.12 billion yuan, a year-on-year increase of 184.7%. Net profit reached 12.776 billion yuan, surging 308.8% compared to the previous year. However, this growth did not garner market approval.

Market analysis suggests the stock decline stems from several factors. Despite the rapid overall growth, the revenue figure was slightly below some market institutions' forecasts of approximately 37.96 billion yuan. Concurrently, sales from non-core IP products fell short of investor expectations, further intensifying market concerns over Pop Mart's excessive reliance on a single hit IP.

Regarding its IP portfolio, the Labubu family (THE MONSTERS) generated revenue of 14.16 billion yuan in 2025, a 365.7% increase year-on-year, representing the dominant share of total revenue. Although the company has six other IPs with revenue exceeding 2 billion yuan and seventeen IPs with revenue over 100 million yuan, the growth of these other IPs has not effectively diversified the heavy dependence on Labubu. Progress in IP diversification has failed to meet market expectations.

In overseas operations, Pop Mart's international revenue contribution rose to 43.8% of the total for 2025, with revenue from the Americas market skyrocketing by 748.4% year-on-year. Nevertheless, market focus remains centered on the balance of the company's IP portfolio, with the view that regional expansion cannot fully substitute for optimization of the core product structure.