A Year of “Expansion” Through Diversification for POP MART

March 29,2022

On March 28, POP MART (HK:09992), a Beijing-based pop culture and art toy company, issued its 2021 financial statement which illustrated continuous fast growth of the business with the group’s annual revenue reaching 4.49 billion yuan, a 78.7% year-on-year growth; its net profit of 850 million yuan, up by 63.3% year-on-year; adjusted net profit (not by IFRS) 1.002 billion yuan, a 69.6% year-on-year growth.

Molly Remains the Most Profitable IP; Skullpanda Becomes a Dark Horse

Products of POP MART can be mainly categorized as self-owned IP, exclusively licensed IP and non-exclusively licensed IP.

Revenue generated by self-owned IPs such as Molly, SKULLPANDA and Dimoo jumped by 164%, from 980-million-yuan, to 2.587 billion yuan, accounting for 39.0% of the group’s total in 2020, for a 57.6% raise.

Among the three, revenue that Molly hauled in increased by 97.6%, from 357 million yuan in 2020 to 705 million yuan in 2021, which made this IP the largest contributor to the group’s revenue count.

Skullpanda was launched in 2020, and its revenue (as seen below) reached 595 million yuan by the end of 2021, a 1423.8% jump, which allowed it to surpass Dimoo and became the second largest contributor to the group’s revenue.

The Number of the New Members Exceeded 12 Million; they contributed 92% of the Sales Volume

Up till December 31 2021, the total number of registered members has reached 19.58 million and that of new members 12.18 million as a result of channel expansion, continuous IP creation, omni-channel operations of membership and the rapid expansion of digitalization for users. In 2021, new members contributed 92.2% of the sales volume to the total, with a repurchase rate of 56.5%.

Roll out High-end Series and Art Derivatives to Reach the Young Generation by Diversification

In 2021, POP MART released MEGA, a high-end collection. This series was poised to be “the first collectible of the young generation” and accrued 178 million yuan of revenue.

Furthermore, POP MART established an art promotion institution, inner flow in 2021, which aims to provide a broader range of more trendsetting art works for the young generation through joint production of high-end art derivatives with global galleries and artists. Last November, inner flow participated in the 9th Shanghai ART021 with works created by its artists.

Overseas Revenue Surpassed 100 Million Yuan; Conveys Pop Toy Culture Through Exhibitions

In September 2020, POP MART unveiled its first overseas direct-sale store at the International Trade Center in Gangnam District, Seoul. In January 2022, POP MART launched its first store in the U.K. as well as in Europe on Shaftesbury Avenue in downtown London.

Up till the end of 2021, POP MART owned 7 stores and 9 RobosShops in Hong Kong, Macao and Taiwan regions and foreign countries. Its overseas revenue grew by 85.2% to 137.4 million yuan.

The group also has accelerated promotion of pop art and culture overseas through exhibitions such as Expo 2020 Dubai, MCM London Comic Con and DesignerCon in America.

Double Down on Pan-entertainment Industry; Advances the Construction of Offline Theme Park

Since 2021, POP MART has invested in SHI SAN YU inspired by ancient Chinese culture, and exclusively in Solestage and ACGN clothing brand Galaxy Cat (Mao Xing Xi). It is also the lead-investor of 2:10 AM Animation, an IP developer and operator.

In 2021, for the first time, POP MART became a producer of animation movie Nezha Reborn and publisher of White Snake 2: Green Snake.

In August 2021, Beijing Pop Mart Paradise Management Co.,Ltd. was established and authorized to build and launch a POP MART Theme Park in Chaoyang Park in Beijing.