by PENG Peng, MA Yue

Pop Mart International Group (09992.HK) is expanding into new product categories and overseas markets after strong growth driven by its LABUBU franchise, raising questions about the durability of that growth.

Revenue was 37.12 billion yuan (about US$5.4 billion) in 2025, up 184.7% year on year; adjusted net profit rose 284.5% to 13.08 billion yuan. LABUBU generated 14.16 billion yuan, or about 38.1% of total sales. A survey by Citi Research found 47% of respondents owned LABUBU products, while newer IPs such as Supertutu and Merodi have gained less traction.

That reliance is shaping the company's strategy. Executives said Pop Mart will launch home appliance products next month and open standalone dessert shops in the first half of 2026. The company will also roll out a new LABUBU 4.0 series alongside artist collaborations. The moves aim to diversify revenue beyond a single franchise.

It is also expanding overseas. Chief growth officer WEN Deyi said markets in the Middle East, South Asia, Europe and South America will be priorities in 2026. Overseas revenue grew faster than in China, with the Americas up 748.4% and Europe and other regions up 506.3%. The company had 630 stores across 20 countries at year-end.

Shares fell more than 20% after the earnings release. HSBC Global Research analyst Lina Yan said in a recent report that the current growth pace may not be sustained and described 2026 as a "re-baselining" year.