---
title: "POP MART H1 Net Profit of RMB 5.04 Billion Misses Expectations; Overseas Revenue Under Pressure, Domestic \"The Star\" IP Surges Over 580% Against the Trend | Financial Report Insights"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296461886.md"
description: "In the first half of 2026, POP MART reported revenue of RMB 17.17 billion (up 23.8% year-on-year) and net profit of RMB 5.04 billion (up 8.9% year-on-year), both falling short of expectations. The primary reasons were a decline in income from the Americas and Asia-Pacific regions due to waning online traffic overseas, compounded by RMB 720 million in foreign exchange losses eroding profits. However, domestic revenue surged by 47.3%, with The Star IP growing by 580%, while the plush product line accounted for 57.2% of revenue, becoming the primary growth engine"
datetime: "2026-08-20T09:04:55.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296461886.md)
  - [en](https://longbridge.com/en/news/296461886.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296461886.md)
---

# POP MART H1 Net Profit of RMB 5.04 Billion Misses Expectations; Overseas Revenue Under Pressure, Domestic "The Star" IP Surges Over 580% Against the Trend | Financial Report Insights

POP MART announced its financial results for the first half of 2026, with both net profit and revenue missing market expectations. The decline in revenue from core overseas markets was the main drag on performance. Meanwhile, domestic business performed strongly, with rapid growth across multiple IPs and the plush product line continuing its high-growth momentum.

For the six months ended June 30, 2026, **POP MART reported a net profit of RMB 5.04 billion, an increase of 8.9% year-on-year, missing the market estimate of RMB 6.64 billion; revenue amounted to RMB 17.17 billion, up 23.8% year-on-year, also below the estimated RMB 19.98 billion.** Net profit was primarily dragged down by foreign exchange losses totaling RMB 720 million, causing the adjusted net profit margin to drop from 33.9% in the same period last year to 30.0%.

Notably, revenue from the two core overseas markets, Asia-Pacific and the Americas, declined year-on-year by 9.7% and 16.5% respectively, mainly due to cooling enthusiasm in online channels. Revenue from the China region soared by 47.3% year-on-year to RMB 12.2 billion, providing strong support for overall growth. In terms of IPs, THE MONSTERS (represented by LABUBU) ranked first with revenue of RMB 4.45 billion, **while The Star jumped to second place with revenue of RMB 2.65 billion, marking an astonishing growth rate of over 580%.**

Gross profit margin slightly decreased from 70.3% in the same period last year to 69.7%, primarily due to two factors: first, the proportion of high-margin overseas business declined; second, rising raw material prices pushed up procurement costs. The Board of Directors decided not to pay an interim dividend.

![Image](https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/c84ae9cc-839a-4337-a59d-8f8dd700c42b.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## China Market Accelerates, Domestic Revenue Growth Nears 50%

The China market became the most important supporting force for this period's performance. During the reporting period, **revenue from the China region increased from RMB 8.28 billion to RMB 12.20 billion, a year-on-year growth of 47.3%.** The number of stores increased net from 445 to 455. While the expansion pace was restrained, single-store efficiency improved significantly.

Online channels were the strongest growth driver, with revenue increasing by 62.7% year-on-year to RMB 4.78 billion. Among these, the POP MART Blind Box Machine APP recorded revenue of RMB 2.06 billion with a growth rate of 83.3%, becoming the largest single online channel; revenue from the Douyin platform grew by 74% year-on-year to RMB 980 million; and revenue from the Tmall flagship store increased by 37.1% year-on-year to RMB 900 million. Wholesale and other income surged by 111.7% year-on-year, mainly benefiting from contributions from new business formats such as the City Park, POP BAKERY desserts, and POPOP accessories.

Member data was equally impressive. The cumulative number of registered members in mainland China increased from 72.58 million to 82.44 million, adding nearly 10 million in half a year. Sales contributed by members accounted for 92.9% of revenue in mainland China, and the member repurchase rate reached 51.6%, indicating continuously strengthening user stickiness.

## Overseas Revenue Under Overall Pressure, Online Channels in Asia-Pacific and Americas Contract

Overseas markets constituted the core concern for this period's performance. Revenue in the Asia-Pacific region decreased by 9.7% year-on-year to RMB 2.58 billion, and revenue in the Americas decreased by 16.5% year-on-year to RMB 1.89 billion.

Online channels were the main drag. Specifically, online revenue in Asia-Pacific fell by 39.8% year-on-year, with revenue from the Shopee platform dropping by 62.1%; online revenue in the Americas decreased by 45.6% year-on-year, with revenue from the self-developed APP and official website falling by 44.6%.

**The company attributed the above declines in its financial report to "the fading of external traffic dividends" and "the return of core IP popularity to normal levels,"** stating that it is shifting from scale expansion to refined operations. In contrast, the expansion of offline channels intensified significantly. During the reporting period, retail stores in the Americas expanded from 41 to 86, and retail stores in Europe expanded from 18 to 45, with offline channel revenue in these regions growing by 19.5% and 49.8% respectively. By the end of June, the total number of global stores reached 676, with 2,827 robot kiosks, and the cumulative number of global registered members exceeded 100 million.

## IP Matrix: The Star Emerges, LABUBU Enters the World Cup

In terms of IPs, the performance of major characters showed significant divergence. THE MONSTERS series generated revenue of RMB 4.45 billion in the first half of the year, remaining in first place, but decreasing by 7.5% year-on-year. The THE MONSTERS family pushed IP influence to new global heights by deeply binding with the 2026 FIFA World Cup—LABUBU not only participated in the opening and closing ceremonies but also shared the stage with Brazilian legendary star Ronaldo, becoming the first Chinese original IP invited in World Cup history.

**The Star's revenue increased by 580.6% year-on-year to RMB 2.65 billion, jumping to second place and becoming the biggest growth highlight of this period's performance.** CRYBABY, DIMOO, and SKULLPANDA recorded revenues of RMB 1.63 billion, RMB 1.62 billion, and RMB 1.55 billion respectively, all maintaining positive growth. MOLLY's revenue was RMB 900 million, a decrease of 33.7% year-on-year.

From a product category perspective, plush products have become the primary growth engine, with revenue increasing by 60% year-on-year to RMB 9.82 billion. Their share of total revenue rose to 57.2%, far exceeding the 30.2% share of figurines. Leveraging strong display and tactile advantages, combined with innovative interactive gameplay, plush products continue to expand their consumer base. During the reporting period, 11 IPs generated revenue exceeding RMB 100 million, and 6 major IPs broke through RMB 1 billion in revenue.

## Foreign Exchange Losses Erode Profits, Gross Margin Narrows Slightly

**Gross profit margin slightly decreased from 70.3% in the same period last year to 69.7%, primarily due to two factors: first, the proportion of high-margin overseas business declined; second, rising raw material prices pushed up procurement costs.**

The 11.3% increase in operating profit was significantly lower than the revenue growth rate, primarily due to the impact of foreign exchange losses—a foreign exchange loss of RMB 720 million was recorded in the first half of 2026, compared to a foreign exchange gain of RMB 120 million in the same period last year, resulting in a profit difference of approximately RMB 840 million. Additionally, distribution and selling expenses increased by 23.1% year-on-year, with rental expenses (+43.3%) and employee compensation (+45.7%) rising in tandem with store expansion. The number of sales staff increased from 6,219 to 9,734.

It is worth noting that government subsidies increased significantly—government subsidies within other income jumped from RMB 37.81 million to RMB 240 million, an increase of more than five times, providing some support to profits. Inventory turnover days lengthened from 123 days to 201 days, due to advance stocking for overseas markets, requiring attention to subsequent destocking situations.

## Capital Actions: Repurchase and Cancellation of Over 10 Million Shares, No Interim Dividend Paid

On the financial front, as of the end of June, the group's cash and cash equivalents amounted to RMB 12.44 billion, a decrease from RMB 13.78 billion at the beginning of the year, mainly due to dividend payments (RMB 3.15 billion) and share repurchases (approximately RMB 1.55 billion). The debt-to-asset ratio decreased from 29.4% to 24.9%, maintaining a robust financial structure with no bank borrowings.

In the first half of the year, the company cumulatively repurchased and cancelled 11.22 million shares, with a total repurchase cost of approximately HKD 1.74 billion. The repurchase price range was HKD 140.9 to HKD 194.9 per share, demonstrating management's confidence in long-term value. The Board of Directors announced that no interim dividend would be paid for this period.

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