Pop Mart International will repurchase shares worth up to 5 billion yuan (US$740 million) over six months as domestic toy demand cools after last year's Labubu-fueled surge. First-half revenue rose 23.8 percent to 17.17 billion yuan while net profit gained 10.14 percent.
Pop Mart International will repurchase shares worth up to 5 billion yuan (US$740 million) over the next six months, the Hong Kong-listed toymaker said Thursday after the market closed.
"Driving sales is not the top priority, and corporate governance is showing positive momentum," Wang Ning, founder and CEO of Pop Mart, said on the company's interim-results earnings call.
The buy-back of between 2 billion yuan and 5 billion yuan comes as domestic sales soften and demand normalizes after last year's strong performance fueled by the Labubu character. Pop Mart posted first-half revenue of 17.17 billion yuan, up 23.8 percent year on year, while net profit rose 10.14 percent to 5.04 billion yuan, according to its earnings report filed with the Hong Kong stock exchange.
Wang guided for 20 percent revenue growth for 2026, noting that "the high base from last year's outstanding performance has created pressure for this year, which will be more pronounced in the second half." The company considers 2026 a year of operational readjustment.
The decline in sales growth will be "difficult to reverse" without a new product format or powerful celebrity endorsement, according to an analyst cited by the South China Morning Post. Pop Mart's growth now depends on whether it can replicate the Labubu success with new intellectual property, as the collectible-toy market faces a demand normalization after last year's surge.
The buyback reflects management confidence in the company's fundamentals and could provide a price floor for shares. Investors will watch whether Pop Mart can launch a new hit product to sustain growth momentum, with the buyback program running through the first half of 2027.
This article is for informational purposes only and does not constitute investment advice.
