Shares of Chinese toymaker Pop Mart surged more than 8% in volatile Wednesday trading, buoyed by a near-400% rise in first-half net profit, driven by global demand for its wildly popular Labubu dolls.
The Beijing-based company reported revenue of 13.88 billion yuan ($1.93 billion) for the first six months of 2025, up 204.4% year on year. Net profit attributable to shareholders soared 396.5% to 4.57 billion yuan, exceeding forecasts of 200% revenue growth and 350% profit gains.
Pop Mart’s quirky “blind-box” toys, where buyers only discover the character after purchase, have become a global sensation. Its flagship Labubu plushies, sharp-toothed and big-eared “ugly-cute” dolls, have been spotted with celebrities such as Rihanna and Blackpink’s Lisa, fueling international hype.
Despite the blockbuster results, the stock initially slipped as much as 4.7% before rebounding to trade up 7.62% at HK$302.20 by late morning. Analysts caution that the company faces long-term risks. “The longevity of Pop Mart’s key IPs remains uncertain. Consumer tastes can shift quickly, creating significant business risks,” said Jeff Zhang, equity analyst at Morningstar.
Chinese regulators have also signaled concerns over blind-box marketing. In June, state media urged stricter oversight, including age verification and parental consent for children under eight. While not naming Pop Mart directly, the warnings highlight rising scrutiny on the sector.
Overseas expansion has been a key growth driver. Asia-Pacific (excluding China) became Pop Mart’s largest foreign market, with revenue jumping 257.8% to 2.85 billion yuan, while sales in the Americas surged more than 1,000% to 2.26 billion yuan. The company said intellectual property remains at the “core” of its business model as it accelerates its global footprint.
