POP MART's Wang Ning discusses performance guidance: Achieving revenue of 30 billion this year is also very easy, but production capacity faces significant challenges
According to Yuan Junjie, Vice President of POP MART, the current monthly production capacity is more than ten times that of the same period last year. In terms of increasing production capacity, lean production automation is the key from a technical perspective
The latest financial report shows that POP MART's net profit in the first half of the year increased by 400%, with revenue from plush products growing by 1276.2% year-on-year, making it the largest category. THE MONSTERS (core being LABUBU) generated revenue of 4.81 billion yuan, accounting for 34.7% of total revenue, significantly up from the same period last year.
At the earnings live stream on August 20, POP MART founder, chairman, and CEO Wang Ning stated that there have been many "unexpected surprises" in the past six months, and LABUBU has become a world-class IP.
In response to questions about performance guidance, Wang Ning said, at the beginning of this year, we expressed great confidence in achieving an overall growth of 50%. Last year it was 10 billion, and this year we hope to reach 20 billion, but now it feels like 30 billion should be quite easy this year, while we hope everyone pays more attention to health indicators.
Monthly production capacity surged 10 times compared to last year
The Chief Operating Officer of POP MART stated at the meeting that despite LABUBU's popularity, its sales revenue only accounts for about 35%, to be honest, our production capacity in the second half of the year is indeed facing significant challenges.
According to POP MART Vice President Yuan Junjie, the current monthly production capacity is more than ten times that of the same period last year. In terms of increasing production capacity, lean production automation is the key from a technical perspective.
Exploring emerging markets in the Middle East, Central Europe, and Central and South America
It is noteworthy that in the first half of the year, POP MART's overseas market became the biggest highlight—sales increased by 440% year-on-year, contributing about 50% of total revenue, with single-store efficiency reaching four times that of domestic stores.
POP MART's management revealed that the company is also exploring emerging markets in the Middle East, Central Europe, and Central and South America
