Summary of Pop Mart's previous rounds of financing - Mai Gang earned nearly 10,000 times, Molly designer holds 1.66% stake

Recently, I've been frantically catching up on Pop Mart, reviewing annual reports, browsing Xiaoyuzhou, and snatching Labubu... Some interesting data and information have been gradually recorded in Tencent Docs, and I'll share them with you later.

From the complete data, Pop Mart conducted a total of 8 rounds of financing from its establishment to its IPO, including 7 rounds of pre-IPO primary market financing and one IPO financing. No further financing has been conducted after the IPO.

Next, I'll detail the specifics of each financing round.

Round 1 - Angel Round

Financing time: September 2012

Investor: Mai Gang Investment.

Details: Mai Gang invested 2 million RMB, valuing the company at 12.5 million RMB, with a 16% equity stake.

The post-financing equity structure is as follows:

Round 2 - Series A

Time: May 2013

Investment institution: Mochishan Ventures

Details: Mochishan Ventures invested 6 million RMB, valuing the company at 80 million RMB, with a 7.5% equity stake.

The post-financing equity structure is as follows:

Round 3 - Series B

Time: June 2014

Investment institution: Golden Eagle International

Details: Golden Eagle International invested 19.9 million RMB, valuing the company at 100 million RMB, with a 19.9% equity stake.

Note: This round included secondary share transactions.

The post-financing equity structure is as follows:

Round 4 - Series C

Time: July 2015

Investment institutions: Golden Eagle International, Qifu Capital, Jinhui Feng, Zhongqing Herui, Fenghui Huixin, Jingshe Technology.

Details: This round raised a total of 36 million RMB, valuing the company at 336 million RMB, with a 10.71% equity stake.

The post-financing equity structure is as follows:

Round 5 - Series D

Time: November 2016

Investment institutions: Jinhui Feng, Huaqiang Investment, Zhongying Investment, Hexian Chuangtou, Yuanchuang Investment.

Details: This round raised a total of 32.5 million RMB, valuing the company at 400 million RMB, with an 8.13% equity stake.

The post-financing equity structure is as follows:

Round 6 - Series E

Time: March 2018

Investment institution: Huaqiang Investment.

Details: Huaqiang Investment invested 40 million RMB to subscribe to 1.4567 million shares, valuing the company at 740 million RMB.

Note: This was the only financing round after Pop Mart went public on the New Third Board. During its listing on the New Third Board, Pop Mart underwent multiple complex secondary share transactions.

The equity structure as of the end of June 2018 is as follows:

Round 7 - Series F

Time: October 2019, January 2020

Investment institutions: Management, Zhenxin Valley Investment.

Details:

In October 2019, the management (led by Wang Ning) spent $55.81 million (395 million RMB) to subscribe to 6.077 million shares, valuing the company at $920 million.

In January 2020, Zhenxin Valley invested $12.5 million (86.56 million RMB) to subscribe to 601,000 shares, valuing the company at $2.36 billion.

Note: After delisting from the New Third Board in April 2019, Pop Mart established an overseas equity structure, and domestic shareholders' shares were transferred to the overseas framework. Between the delisting from the New Third Board and the Hong Kong IPO, Pop Mart conducted two additional rounds of financing and numerous secondary share transactions. Sequoia, Zhenxin Valley, and Huaxing Capital all acquired Pop Mart shares during this period.

The pre-IPO equity structure as of December 2020 is as follows:

Note: The exact pre-IPO share capital was 1,245,865,150 shares. Due to the complexity of secondary share transfers, my calculation was 1,243,422,280 shares, a discrepancy of 2,442,870 shares. The reason for this discrepancy remains unclear and will be verified later.

Round 8 - IPO Financing

Time: December 2020

Investment institution: IPO financing.

Details: At an issue price of HKD 38.5, 156,072,400 shares were issued, raising HKD 6.01 billion, valuing the company at HKD 54 billion. The additional issuance ratio was 11.1%, and the total post-issuance share capital was 1.402 billion shares.

Financing Summary

Including the IPO, Pop Mart raised a total of 8 rounds, totaling 6.018 billion RMB. Excluding the IPO, Pop Mart raised 7 rounds, totaling 617.7 million RMB.

Pop Mart began to turn a profit in 2017, and its business gradually entered a period of explosive growth. For Pop Mart, the four rounds of financing totaling 63.9 million RMB before 2016 were truly a lifeline and the most critical.

From the above, before the Series F round, almost no leading institutions invested in Pop Mart, indicating that its financing was not smooth sailing and was not recognized by most leading institutions. This is also why the internet has been reflecting on why most leading institutions missed Pop Mart.

However, experience counts. Sequoia became the third-largest shareholder after Wang Ning and Mai Gang by purchasing secondary shares in the Series F round, holding 4.87% before the IPO. Although late, its timely and substantial investment yielded significant returns. Similarly, Zhenxin Valley and Huaxing Capital also boarded the train by purchasing secondary shares in the Series F round, acquiring 3.43% and 1.94% stakes, respectively.

Another interesting fact is that Molly designer Wang Xinming acquired 2.06 million shares of Pop Mart at zero cost (the actual process involved Wang Xinming spending over 3 million RMB to buy 2.31 million shares from Wang Ning, later selling over 200,000 shares to Zhenxin Valley for $5 million, and ultimately holding 1.66% before the IPO), becoming a mutually beneficial story.

That's all for Pop Mart's financing journey. Next time, we'll delve into the early investors of Pop Mart, their respective returns, and who were the biggest winners and losers among them.$POP MART(09992.HK)