View of a Pop Mart shop in Urumqi, Xinjiang Uygur autonomous region. XINHUA
Pop Mart International Group Ltd's business in China remained its biggest growth engine in the first half, with revenue in its home market climbing 47.3 percent even as the collectible toy maker warned that its breakneck expansion is likely to moderate after last year's Labubu-driven boom.
The company's revenue in China rose to 12.2 billion yuan ($1.82 billion) in the six months ended June, while the company added just 10 net new stores, bringing its network to 455 outlets. The results suggest the company is generating more sales from existing stores and its expanding membership base rather than relying on rapid store openings.
Registered members increased to 82.4 million from 72.6 million at the end of last year. Members accounted for 92.9 percent of sales during the period, while the repurchase rate reached 51.6 percent.
Group revenue rose 23.8 percent to 17.17 billion yuan during the first half, while adjusted net profit increased to 5.16 billion yuan. Gross margin improved to 69.7 percent and adjusted net margin reached 30 percent, reflecting continued profitability despite slower growth than last year's record pace.
