Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility

for the contents of this announcement, make no representation as to its accuracy or completeness and expressly
disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the
contents of this announcement.

POP MART INTERNATIONAL GROUP LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 9992)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2024

INTERIM RESULTS HIGHLIGHTS

Six months ended 30 June

(Unaudited) (Unaudited)
2024 2023 Change
’
RMB 000 RMB ’000 (%)

Revenue 4,557,831 2,813,812 62.0%

Gross profit 2,919,105 1,698,360 71.9%
Operating profit 1,126,417 537,762 109.5%
Profit before income tax 1,228,438 618,547 98.6%
Profit for the period 964,142 477,242 102.0%
Profit attributable to owners of
the Company 921,333 476,575 93.3%
Non-IFRS adjusted net profit 1,017,625 535,365 90.1%
Basic earnings per share (RMB cents) 69.49 35.46 96.0%
Diluted earnings per share (RMB cents) 69.22 35.42 95.4%

The board (the “Board”) of directors (the “Directors”) of Pop Mart International Group Limited
(the “Company”) is pleased to announce the unaudited consolidated results of the Company, its
subsidiaries and consolidated affiliated entities (the “Group”) for the six months ended 30 June
2024 (the “Reporting Period”). The contents of this interim results announcement have been
prepared in accordance with applicable disclosure requirements under the Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) in
relation to preliminary announcements of interim results.

1
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME

Six months ended 30 June

Note 2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Revenue 4 4,557,831 2,813,812

Cost of sales 5 (1,638,726) (1,115,452)

Gross profit 2,919,105 1,698,360

Distribution and selling expenses 5 (1,353,206) (878,319)

General and administrative expenses 5 (434,410) (331,252)
Provision for impairment losses on financial assets (2,589) (95)
Other income 6 31,586 37,433
Other (losses)/gains-net 7 (34,069) 11,635

Operating profit 1,126,417 537,762

Finance income 8 105,993 79,613

Finance expenses 8 (22,218) (16,174)

Finance income-net 8 83,775 63,439

Share of profit of investments accounted for

using the equity method 18,246 17,346

Profit before income tax 1,228,438 618,547

Income tax expense 9 (264,296) (141,305)

Profit for the period 964,142 477,242

Profit for the period attributable to:

Owners of the Company 921,333 476,575
Non-controlling interests 42,809 667

964,142 477,242

2
 Six months ended 30 June
Note 2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Other comprehensive income

Items that may be reclassified to profit or loss
– Currency translation differences 2,368 14,907

Items that will not be reclassified to profit or loss

– Currency translation differences 103,338 154,574

Other comprehensive income for the period, net of tax 105,706 169,481

Total comprehensive income for the period 1,069,848 646,723

Total comprehensive income for the period

attributable to:
– Owners of the Company 1,026,682 646,192
– Non-controlling interests 43,166 531

1,069,848 646,723

Earnings per share for profit attributable to

owners of the Company
Basic (expressed in RMB cents per share) 11 69.49 35.46
Diluted (expressed in RMB cents per share) 11 69.22 35.42

3
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

As at As at
30 June 31 December
Note 2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

Assets
Non-current assets
Property, plant and equipment 627,083 653,278
Intangible assets 123,135 115,888
Right-of-use assets 789,368 726,053
Investments accounted for using the equity method 112,928 107,001
Financial assets at fair value through profit or loss 429,972 471,769
Prepayments and other receivables 122,746 127,989
Deferred income tax assets 96,906 83,416

Total non-current assets 2,302,138 2,285,394

Current assets
Trade receivables 12 263,722 321,337
Inventories 916,686 904,708
Prepayments and other receivables 497,621 467,561
Financial assets at fair value through profit or loss 7,409 8,415
Restricted cash 19,954 18,159
Term deposits with initial term over three months and
within one year 3,401,275 3,885,362
Cash and cash equivalents 3,608,674 2,077,927

Total current assets 8,715,341 7,683,469

Total assets 11,017,479 9,968,863

4
 As at As at
30 June 31 December
Note 2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

Equity
Share capital 13 882 885
Shares held for share award scheme (11) (12)
Other reserves 4,159,062 4,438,448
Retained earnings 4,239,103 3,330,606

Equity attributable to owners of the Company 8,399,036 7,769,927

Non-controlling interests in equity 53,621 10,455

Total equity 8,452,657 7,780,382

Liabilities
Non-current liabilities
License fees payables 15 14,188 14,807
Lease liabilities 466,001 425,954
Deferred income tax liabilities 16,290 14,419

Total non-current liabilities 496,479 455,180

Current liabilities
Trade payables 14 555,137 444,944
License fees payables 15 273,026 179,393
Other payables 535,472 514,841
Contract liabilities 151,536 112,143
Borrowing – 15,058
Lease liabilities 356,175 351,799
Current income tax liabilities 196,997 115,123

Total current liabilities 2,068,343 1,733,301

Total liabilities 2,564,822 2,188,481

Total equity and liabilities 11,017,479 9,968,863

5
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

1 GENERAL INFORMATION

Pop Mart International Group Limited (the “Company”) was incorporated in the Cayman Islands on 9 May
2019 as an exempted company with limited liability under the Companies Law (Cap. 22, Law 3 of 1961 as
consolidated and revised) of the Cayman Islands. The address of the Company’s registered office is PO Box
309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.

The Company is an investment holding company and its subsidiaries are principally engaged in the product
design and development and sale of pop toys in the People’s Republic of China (the “PRC”) and certain
overseas countries and regions. The ultimate holding company of the Company is GWF Holding Limited
(formerly known as Grant Wang Holding Limited), which is controlled by Mr. Wang Ning and his spouse, Ms.
Yang Tao.

The Company’s shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited
since 11 December 2020.

This interim condensed consolidated financial information is presented in Renminbi (“RMB”), unless otherwise
stated. This interim condensed consolidated financial information was approved for issue by the board of
directors of the Company on 20 August 2024.

This interim condensed consolidated financial information for the six months ended 30 June 2024 has not been
audited.

2 BASIS OF PREPARATION

This interim condensed consolidated financial information for the six months ended 30 June 2024 has been
prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”).

The interim condensed consolidated financial information does not include all the notes of the type normally
included in an annual financial report. Accordingly, this interim condensed consolidated financial information
is to be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2023,
which have been prepared in accordance with IFRS Accounting Standards, and any public announcements made
by the Company during the Reporting Period.

3 ACCOUNTING POLICIES

The accounting policies applied to the preparation of this interim condensed consolidated financial information
are consistent with those applied in the annual financial statements for the year ended 31 December 2023,
except for the adoption of amended standards as set out below:

Amended standards adopted by the Group

The Group has applied the following amendments for the first time from 1 January 2024:

Amendments to IAS 1 Classification of Liabilities as Current or Non-current

Amendments to IAS 1 Non-current Liabilities with Covenants
Amendments to IFRS 16 Lease Liability in a Sale and Leaseback
Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not
expected to significantly affect the current or future periods.

6
 Impact of standards issued but not yet applied by the Group

Certain new and amended accounting standards have been published but are not mandatory for reporting period
commencing 1 January 2024 and have not been early adopted by the Group. These new and amended accounting
standards are not expected to have a material impact on the Group in the current or future reporting periods and
on foreseeable future transactions.

Amendments and interpretations Effective date

Amendments to IAS 21 Lack of Exchangeability Annual periods beginning on

or after 1 January 2025
Amendments to IFRS 9 and IFRS 7 Classification and Measurement Annual periods beginning on
of Financial Instruments or after 1 January 2026
IFRS 18 Presentation and Disclosure in Annual periods beginning on
Financial Statements or after 1 January 2027
IFRS 19 Subsidiaries without Public Annual periods beginning on
Accountability: Disclosures or after 1 January 2027

4 REVENUE AND SEGMENT INFORMATION

The Group is principally engaged in brand development, design and sales of toys in Mainland China, Hong
Kong, Macao, Taiwan and certain overseas countries and regions ( “ Hong Kong, Macao, Taiwan and
Overseas”). The chief operating decision makers (“CODM”) reviews the Group’s internal reporting in order to
assess performance and allocate resources. Management has determined the operating segments based on these
reports.

As at 30 June 2024 and for the period then ended, the Group had two reportable segments:

• The Mainland China operations; and

• Hong Kong, Macao, Taiwan and Overseas operations.

The CODM assesses the performance of the operating segments mainly based on revenue and segment results.
The revenue from external customers reported by CODM is measured as segment revenue, which is the revenue
derived from customers in each segment. Segment results represent the operating profit earned by each segment
excluding certain unallocated items which mainly include certain expenses attributable to headoffice, IP
department, R&D department, IT department and shared service center of the Group.

There were no separate segment assets and segment liabilities information provided to the CODM as CODM
does not use this information to allocate resources to or evaluate the performance of the operating segments.

7
The segment results and other items included in the interim condensed statement of profit or loss and other
comprehensive income provided to the CODM for the reportable segments for the period ended 30 June 2024
and 2023, respectively are as follows:

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
Hong Kong, Hong Kong,
The Macao, The Macao,
Mainland Taiwan Mainland Taiwan
China and Overseas China and Overseas
operations operations Total operations operations Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenue from external customers 3,206,354 1,351,477 4,557,831 2,438,032 375,780 2,813,812

Segment results 886,788 400,191 1,286,979 502,398 78,890 581,288

Unallocated expenses and

other gains/losses (160,562) (43,526)
Finance income-net 83,775 63,439
Share of profit of investments
accounted for using
the equity method 18,246 17,346

Profit before income tax 1,228,438 618,547

Income tax expense (264,296) (141,305)

Profit for the period 964,142 477,242

Significant non-cash expenses

Depreciation on property, plant
and equipment 134,790 12,366 147,156 111,141 3,698 114,839
Depreciation of right-of-use assets 174,333 39,408 213,741 166,592 11,849 178,441
Amortisation of intangible assets 47,477 6,261 53,738 42,415 4,738 47,153

8
As at 30 June 2024 and 31 December 2023, information about the Group’s non-current assets (other than
financial assets at fair value through profit or loss and deferred income tax assets) which is presented based on
geographical location of the assets, is as follow:

As at As at
30 June 31 December
2024 2023
RMB ’000 RMB ’000

The Mainland China operations 1,338,064 1,434,042

Hong Kong, Macao, Taiwan and Overseas operations 437,196 296,167

Breakdown of revenue by business lines is as follows:

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Revenue from the Mainland China operations

Revenue from retail store sales 1,471,276 1,179,493
Revenue from online sales 1,095,669 817,418
Revenue from roboshop sales 314,974 271,074
Revenue from wholesales and others 324,435 170,047

Subtotal 3,206,354 2,438,032

Revenue from Hong Kong, Macao, Taiwan and Overseas operations

Revenue from retail store sales 893,505 164,999
Revenue from online sales 247,244 56,791
Revenue from roboshop sales 53,183 25,360
Revenue from wholesales and others 157,545 128,630

Subtotal 1,351,477 375,780

Total 4,557,831 2,813,812

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Revenue
Point-in-time 4,492,634 2,813,812
Over-time 65,197 –

4,557,831 2,813,812

9
 Six months ended 30 June
2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Revenue
Revenue recognised on a gross basis 4,557,831 2,813,563
Revenue recognised on a net basis (i) – 249

Total 4,557,831 2,813,812

(i) Certain revenue generated from consignment sales of art derivatives in an art promotion institution is
recognised on a net basis when the Group acts as an agent in the transactions and does not take inventory
risk or have latitude in establishing prices for the products.

During the six months ended 30 June 2024 and 2023, no revenue derived from transactions with a single
customer represent 10% or more of the Group’s total revenue.

5 EXPENSES BY NATURE

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Cost of inventories included in cost of sales 1,282,095 923,921

Employee benefit expenses 657,748 496,416
Depreciation of right-of-use assets 213,741 178,441
Commissions and E-commerce platform service charges 206,785 70,262
Advertising and marketing expenses 198,592 141,978
Design and license fees 192,352 77,459
Expenses relating to short-term leases and variable leases not
included in lease liabilities 162,848 66,240
Depreciation on property, plant and equipment 147,156 114,839
Transportation and logistics expenses 121,931 81,536
Amortisation of intangible assets 53,738 47,153
Taxes and surcharges 45,243 21,765
Auditor’s remuneration 1,500 1,500
Impairment of inventory 1,185 747
Others 141,428 102,766

Total 3,426,342 2,325,023

10
6 OTHER INCOME

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Income from license fee and other services 18,949 15,480

Government grants (i) 10,301 21,170
Others 2,336 783

Total 31,586 37,433

(i) The amounts represent government grants related to income which are received from the local government
for the contribution to the local economic growth. There are no unfulfilled conditions or contingencies
relating to these grants.

7 OTHER (LOSSES)/GAINS – NET

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Changes in fair value of financial instruments at

fair value through profit or loss (33,305) 5,728
Exchange gain or loss (9,868) 7,056
Donation (131) (700)
Others 9,235 (449)

Total (34,069) 11,635

11
8 FINANCE INCOME – NET

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Finance income
– Interest income on cash and bank deposits 105,993 79,613

Finance expenses
– Interest expenses on lease liabilities (19,766) (14,701)
– Others (2,452) (1,473)

(22,218) (16,174)

Finance income -net 83,775 63,439

9 INCOME TAX EXPENSE

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

Current income tax 275,915 150,299

Deferred income tax credit (11,619) (8,994)

Income tax expense 264,296 141,305

Income tax expense is recognised based on management’s estimate of the weighted average effective annual
income tax rate expected for the full financial year. The estimated average annual tax rate used for the six
months ended 30 June 2024 is approximately 21.5% (six months ended 30 June 2023: 22.8%).

10 DIVIDENDS

During the six months ended 30 June 2024, the total dividends paid amounted to RMB373,025,000 or
RMB28.21 cents per share (six months ended 30 June 2023: RMB117,317,000 or RMB8.7 cents per share),
which are net of the dividend of RMB4,763,000 (six months ended 30 June 2023: RMB1,678,000) attributable
to the shares held for the RSU Scheme.

The Board did not recommend the payment of an interim dividend for the six months ended 30 June 2024.

12
11 EARNINGS PER SHARE

(a) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the
weighted average number of ordinary shares in issue less shares held for Share Award Scheme and shares
repurchased by the Company for cancellation during the six months ended 30 June 2024 and 2023.

Six months ended 30 June

2024 2023
(Unaudited) (Unaudited)

Profit attributable to owners of the Company (RMB’000) 921,333 476,575

Weighted average number of ordinary shares in issue less
shares held for Share Award Scheme and shares repurchased
by the Company for cancellation (in thousands) 1,325,920 1,344,182

Basic earnings per share (expressed in RMB cents per share) 69.49 35.46

(b) Dilute earnings per share

The calculation of diluted earnings per share for the six months ended 30 June 2024 is set out below:

Six months ended 30 June

2024 2023
(Unaudited) (Unaudited)

Profit attributable to owners of the Company (RMB’000) 921,333 476,575

Profit used to determine diluted earnings per share (RMB’000) 921,333 476,575

Weighted average number of ordinary shares in issue less

shares held for Share Award Scheme and shares repurchased
by the Company for cancellation (in thousands) 1,325,920 1,344,182
Adjustment for
– Restricted Shares granted and assumed vested (in thousands) 5,181 1,325

Weighted average number of shares for diluted earnings

per shares (in thousands) 1,331,101 1,345,507

Diluted earnings per share (expressed in RMB cents per share) 69.22 35.42

For the six months ended 30 June 2024 and 2023, diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares. The Company’s potentially dilutive ordinary shares comprised shares which may be
granted and assumed vested under the Post-IPO Share Award Scheme. A calculation is done to determine
the number of shares that could have been acquired at fair value (determined as the average market price
of the Company’s ordinary shares during the six months ended 30 June 2024) based on the monetary
value of the subscription rights attached to the outstanding shares granted under the Post-IPO Share
Award Scheme (the “Restricted Shares”). The number of shares calculated as above is compared with
the number of shares that would have been issued assuming the exercise of the Restricted Shares.

13
12 TRADE RECEIVABLES

As at As at
30 June 31 December
2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

Trade receivables (a)

– Third parties 217,586 237,437
– Related parties 55,474 91,219

Subtotal 273,060 328,656

Less: provision for impairment (b) (9,338) (7,319)

Total trade receivables 263,722 321,337

(a) For trade receivables from retail store sales, roboshop sales and online sales, the amounts are usually
settled in cash, by credit/debit cards or through online payment platforms. For wholesale transactions,
trade receivables are settled within the credit terms as agreed in sales contracts. The majority of these
wholesalers are with credit terms of 30 to 90 days. Certain customers with good history and long-term
relationship are extended preferential credit terms of up to 180 days.

An aging analysis of the trade receivables based on invoice date is as follows:

As at As at
30 June 31 December
2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

Within 3 months 231,705 311,485

3 months to 6 months 34,940 12,523
Over 6 months 6,415 4,648

Total 273,060 328,656

14
 (b) The Group applies the IFRS 9 simplified approach to measure expected credit losses which use a lifetime
expected loss allowance for all trade receivables.

Movements in allowance for impairment of trade receivables are as follows:

Six months ended 30 June

2024 2023
RMB ’000 RMB ’000
(Unaudited) (Unaudited)

As at 1 January 7,319 7,291

Provision for impairment allowance 2,019 30

As at 30 June 9,338 7,321

13 SHARE CAPITAL AND TREASURY SHARES

Authorised:

Nominal
Number of value of
ordinary ordinary
shares shares
USD ’000
Ordinary shares of US$0.0001 each
On 1 January 2023, 30 June 2023, 31 December 2023 and 30 June 2024 5,000,000,000 500

Issued and fully paid ordinary shares:

Unaudited
Nominal Nominal Carrying
Number of value of value of Number of value of
ordinary ordinary ordinary treasury treasury
shares shares shares shares shares
USD ’000 RMB ’000 RMB ’000

At 1 January 2024 1,348,243,150 136 885 (600,000) (10,468)

Purchase of own shares (i) – – – (4,700,000) (78,031)
Cancellation of repurchased shares (ii) (5,300,000) (1) (3) 5,300,000 88,499

At 30 June 2024 1,342,943,150 135 882 – –

At 1 January 2023 1,380,540,550 139 908 (12,950,400) (186,395)

Purchase of own shares (i) – – – (15,217,000) (246,876)
Cancellation of repurchased shares (ii) (24,217,400) (2) (17) 24,217,400 370,217

At 30 June 2023 1,356,323,150 137 891 (3,950,000) (63,054)

15
 (i) During the six months ended 30 June 2024, the Company acquired 4,700,000 ordinary shares of the
Company (six months ended 30 June 2023: 15,217,000 ordinary shares) through purchases on the open
market. The total amount paid to acquire the shares during the period was HKD85,827,000 (equivalent
to approximately RMB78,031,000) (six months ended 30 June 2023: HKD275,781,000 (equivalent to
approximately RMB246,876,000)). The highest price per share and the lowest per share paid for such
repurchases during the Reporting Period are HK$17.00 and HK$19.96, respectively.

(ii) During the six months ended 30 June 2024, the Company cancelled 5,300,000 repurchased shares. As a
result, the Company recognised a debit to share capital of USD530 (equivalent to RMB3,766), a debit to
share premium of RMB88,495,000 and a credit to treasury shares of RMB88,499,000.

During the six months ended 30 June 2023, the Company cancelled 24,217,000 repurchased shares. As
a result, the Company recognised a debit to share capital of USD2,422 (equivalent to approximately
RMB17,000), a debit to share premium of RMB370,200,000 and a credit to treasury shares of
RMB370,217,000.

14 TRADE PAYABLES

As at As at
30 June 31 December
2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

Merchandise payables 555,137 444,944

The credit terms of merchandise payables granted by the suppliers are usually current to 180 days. As at 30
June 2024 and 31 December 2023, the aging analysis of the merchandise payables based on invoice date were as
follow:

As at As at
30 June 31 December
2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

Within 30 days 319,469 224,494

30 to 90 days 168,399 150,226
90 to 180 days 14,106 26,907
Over 180 days 53,163 43,317

555,137 444,944

16
15 LICENSE FEES PAYABLES

As at As at
30 June 31 December
2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

License fees payables 287,214 194,200

Less: non-current portion (14,188) (14,807)

Current portion 273,026 179,393

The Group entered into various license agreements with artists to obtain exclusive and non-exclusive licensed
IPs. Pursuant to the license agreements, fixed minimum payments are payable in tranches during the contracted
term while variable payments that depend on sales are payable in the period in which the condition that triggers
those payments occurs.

Analysis of license fees payables:

As at As at
30 June 31 December
2024 2023
RMB ’000 RMB ’000
(Unaudited) (Audited)

1-2 years 11,153 10,271

2-5 years 2,548 4,085
More than 5 years 487 451

Non-current 14,188 14,807

Current 273,026 179,393

17
MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW

In the first half of 2024, benefiting from the close cooperation among various departments of the
Company, with our outstanding IP operation capabilities and product research and development
capabilities, we have launched a number of new IPs and new product series that gained popularity
among consumers while providing quality services to consumers, which further enhanced the
global recognition of Pop Mart’s brand and its IP, and achieved excellent sales performance.

During the Reporting Period, we recorded a revenue of RMB4,557.8 million, representing a

year-on-year increase of 62.0%. We drove sales growth across various channels in Mainland China
by catering to the customer’s needs of diversified categories and IPs, differentiating our channel
positioning and refining our operational efficiency, and recorded a revenue of RMB3,206.4 million,
representing a year-on-year increase of 31.5%. By stepping up the development of the international
market and deeply promoting the localized operation, our business in Hong Kong, Macao, Taiwan
and overseas maintained a rapid development at all times, with the revenue reaching RMB1,351.5
million, representing a year-on-year increase of 259.6% and accounting for 29.7% of our revenue.

IP Incubation and Operation

IP operation and creative designs are the key factors to promote Pop Mart ’s development. We
explored high-potential pop artists and designers worldwide and successfully created popular
pop culture IP images by virtue of well-established IP operation system. At the same time, we
continued to strengthen innovation in product designs and further diversified product categories to
meet the diverse needs of various fan groups, so as to create more happiness for consumers around
the world.

Based on the characteristics of each IP, we implemented differentiated operation, effectively

maintained the popularity of IP and achieved strong sales performance. Revenue generated from
MOLLY, THE MONSTERS and SKULLPANDA amounted to RMB782.2 million, RMB626.8
million and RMB574.6 million in the first half of 2024, respectively. MOLLY continued to show
strong vitality and we have successfully created the basic images of classic MOLLY, SPACE
MOLLY, ROYAL MOLLY and BABY MOLLY and corresponding products through diverse
commercialization operations, which met the needs of various fans, contributing to a year-on-year
increase of 90.1% in related revenue. Through diversified designs for different product categories
and presentation forms such as doll clothing interaction, the image of THE MONSTERS has
become more vibrant and vivid, while also demonstrating more enriched and three-dimensional
personalities, which in turn has been well received by more fans, contributing to a significant
year-on-year growth of 292.2% in related revenue. SKULLPANDA continuously explored, looked
for breakthroughs in styles, and focused on the design and creation of fashion figure toys, to bring
more diversified art and collection experience for fans, achieving a year-on-year growth of 9.2% in
related revenue.

18
Several IPs under our in-house IP originals studio PDC (Pop Design Center) achieved outstanding
results in the first half of 2024. Hirono’s unique design language triggered emotional empathy
among fans, making his universe a spiritual sanctuary for many fans. We have set up Hirono IP
lifestyle pop-up stores in major cities. These pop-up stores feature not only pop toys but also a
wide range of new categories such as clothing, household and peripheral products. The Hirono
pop-up store in Bangkok even displayed and sold the easel paintings and sculptures featured
Hirono, offering a comprehensive and immersive experience of Hirono ’ s universe, achieving
124.3% year-on-year growth in related revenue. As a new IP launched in 2022, Zsiga’s stubborn
and pure design expression was favored by consumers, achieving a year-on-year growth of 169.5%
in related revenue. In the first half of this year, PDC launched Nyota, OIPIPPI, inosoul and other
new IPs, and all won favor with fans with their stylized design since their launch.

We continued to explore and expand the scope of licensed IPs by launching a series of pop garage
kits and co-branded products in different types and diversified styles to meet the needs and
interests of different consumers. Through cooperation with various copyright owners of anime,
games and movies, we brought more choices and surprises to our fans. At the same time, we
continued to expand the territories of IP licensing, and already obtained global licenses for most of
our licensed IPs, bringing a more unique pop toy experience to consumers around the world.

2024 is the fourth year since we launched MEGA COLLECTION, and the brand operation has
gradually entered a mature stage. It represents the young generation’s diversified and energetic
aesthetic taste and trend vision, and has already become a representative of the current trend
collectors embracing their favorite culture. In the first half of 2024, the second special material
pop toy launched under the GRAND series, “MEGA SPACE MOLLY 400% Cang Jin Wu Hen •
Mu” (MEGA SPACE MOLLY 400%• ), has attracted the attention of numerous pop
toy collectors. In addition, MEGA ROYAL MOLLY has collaborated with Han Meilin, Ninagawa
Mika, Van Gogh Museum and other internationally renowned artists and artworks institutions to
launch new products this year, fulfilling the mission of “pop toy as art”. In the first half of 2024,
MEGA COLLECTION achieved a total revenue of RMB586.1 million, accounting for 12.9% of
our revenue.

As our bestselling product category introduced in 2023, plush products achieved a revenue of
RMB446.1 million in the first half of 2024, accounting for 9.8% of our revenue. During this
period, we continued to explore the cores of IPs and innovate our products, such as rotocast plush
toys. The rotocasting process makes the facial expressions more vivid and attractive, and the plush
toys inherently allow easy display and can serve as stylish outfit accessories. Such combination
not only enhances the emotional bond between fans and IPs, but also provides a richer and more
diverse interactive experiences. While attracting many new fans, it also greatly enhances the
stickiness of fans to IPs.

In mid-June 2024, we launched our first building block product. Through block stacking, the
product shows the spiritual core of our IPs. It not only enhances the ways in which the IPs are
represented but also broadens the channels for fan interaction with IPs, enabling fans to explore the
deeper narratives that underlie our IPs. On the basis of compatibility with the traditional building
block system, we have significantly differentiated our building block product from the conventional
building blocks in the market through innovations in craftsmanship, materials, gameplay, etc., thus
further expanding the fan base.

19
Consumer Access

Offline channels

In the first half of 2024, we opened 20 new physical stores in Mainland China. The number
of physical stores increased from 363 as of 31 December 2023 to 3741 as of 30 June 2024. In
the first half of 2024, we closed one roboshop in Mainland China. The number of roboshops
decreased from 2,190 as of 31 December 2023 to 2,189 as of 30 June 2024.

– Online channels

Pop Draw is a Weixin mini program independently invented and developed by us, aiming
to create fun, interesting and convenient shopping experience. In the first half of 2024,
revenue from Pop Draw amounted to RMB399.2 million, representing a positive year-on-year
growth rate. Our content-related e-commerce team set up multiple self-operated live
streaming rooms focusing on different categories and scenarios based on a variety of IPs,
products and user group characteristics. Leveraging on the high-quality content, plentiful
interactive participations and differentiated streaming strategy, we managed to improve
traffic acquisition and conversion efficiency. In the first half of 2024, the revenue from
DouYin amounted to RMB208.9 million, representing a year-on-year increase of 90.7%. The
Tmall Flagship store extended its growth trend through making efforts on sales of multi-
categories, expanding new fandom on various dimensions and refining traffic operational
efficiency, recording a revenue of RMB198.8 million in the first half of 2024, representing
a year-on-year increase of 28.1%. It topped both the Tmall Overall Toy Ranking (
) and the Tmall Pop Toy Ranking ( ) in terms of sales in the 618 shopping
festival.

– Member operation

With continuous channel expansion and enhancement of IPs portfolio and product categories,
through omni-channel refined member operation, the scale of membership digitalization
grew rapidly. As of 30 June 2024, the total number of registered members in Mainland China
increased from 34.354 million as at 31 December 2023 to 38.927 million, with 4.573 million
new registered members. In the first half of 2024, the sales contributed by our members
represented 92.8% of total sales, with repeat purchase rate of our members of 43.9%2.

1
In the first half of 2024, we closed 9 physical stores due to lease expiration and other commercial reasons.
2
In the first half of 2024, proportion of members who have purchased twice or more.

20
– Hong Kong, Macao, Taiwan and overseas channels

The implementation of our DTC (Direct To Customer) strategy for Hong Kong, Macao,
Taiwan and overseas business continued. As of 30 June 2024, the number of our physical
stores in Hong Kong, Macao, Taiwan and overseas was 92 (including those operated by joint
venture partners), and the number of roboshops reached 162 (including those operated by
joint ventures and roboshop partners).

We have opened themed stores and flagship stores in multiple landmarks overseas after fully
considering local characteristics. For example, Central Ladprao, a store opened in February
this year in Bangkok, Thailand, featured a pink color and with many CRYBABY elements,
has become a new hot spot to check in. In February, we opened a physical store in Century
City, Los Angeles, U.S., an ideal location neighboring the centre area of film and television
entertainment culture and a fashionable shopping mecca, and this store was favored by
more local consumers. In May, we opened a castle-themed store in Ba Na Hills Sun World,
a famous scenic spot in Vietnam, which drew attention from numerous tourists worldwide.
In June, we opened a store in the most bustling hub – Oxford Street in United Kingdom,
further enhancing our brand’s awareness in the European market, and continuously providing
consumers around the world with better products and consumption experiences, and our brand
and product influence have been increasing in the global market.

Meanwhile, our overseas e-commerce team applied differentiated operating strategies for
different countries and e-commerce platforms. Specifically, Shopee and Lazada focused on
multiple countries in Southeast Asia, and we received favorable reviews from consumers with
refined marketing and localized service strategies. By keeping abreast of the fashion trend of
global content and live-streaming e-commerce, on TikTok, we devoted ourselves to creating
high-quality content ecology, attracted a large number of young users with creative live-
streaming activities, and drove its sales with high-quality content, improving brand exposure
and interactivity. At the global market level, we continued to strengthen the building and
improvement of official websites for our brand, and to improve users’ experience and brand
image by centering on users. The global impact of our brands and products continues to grow.

21
Theme Park and IP Experience and Innovative Business Incubation

We have established an IP commercialization system with a multi-industry chain, continuously

deepening the emotional connection between fans and IPs, and exploring the potential and more
possibilities of realizing the value of IPs.

As of the end of June 2024, POP LAND had been open for nine months, successfully establishing a
selection of must-visit attractions, must-try dining experiences, and must-buy products. In the first
half of 2024, the park increased the frequency of its classic daily performances and created and
presented new shows. The park also introduced commensurate themed installations and activities
for various festivals and holidays and rolled out new IP-themed dishes and products. The park’s
diverse offerings, including interactive live performances, dining options, and products, create a
rich and relaxing one-stop destination for a half-day visit. This appeal has drawn a broad spectrum
of fans, families, and visitors from across China and internationally, continuously bonding the
PopMart, its numerous IPs, and their audiences.

In April 2024, we boldly innovated by collaborating with POP LAND to launch the “2024 PTS
Beijing International Pop Toy Festival”. This event marked PTS’s first attempt to transform from
a traditional “Pop Toy Convention” into a comprehensive “Pop Toy Festival”, delivering a fresh
immersive experience of pop toy IPs in an exciting new carnival model. Under the theme “#Let’s
Have FUN”, the 2024 PTS hosted 26 autograph sessions and nearly a hundred entertainment
events. Beyond browsing exhibits and shopping, the festival featured IP performances, theme
park experiences, along with dining, entertainment, and other leisure activities, allowing attendees
to “unwind” from the panic buying, and savor the joy that pop toys bring. PTS has enabled the
accumulation and clustering of the pop industry, while POP LAND establishes an immersive
scenario for pop culture, creating synergy between these two elements.

In the first half of 2024, we carefully planned and executed a series of events, including artist
autograph sessions, pop-up stores, and art exhibitions, to boost the global influence of various
IPs by actively engaging with fans around the world, thereby enhancing their recognition in
international markets. Particularly noteworthy is the grand debut of LABUBU, a character from our
IP “THE MONSTERS” elf group, as the “Magical Thailand Experience Ambassador” in Thailand.
A lavish airport reception was held for LABUBU that drew a large crowd of local and international
fans, highlighting the IP’s immense popularity in the country. This not only enhanced the brand’s
visibility and influence in Thailand, but also established the IP as a key cultural bridge fostering
exchanges between Chinese and Thai pop culture.

On 27 June 2024, we officially launched Dream Home ( ), our first self-designed

mobile game, which combines “business simulation ( )” and “party gameplay (
)” together to create a lighter and more casual and relaxing gaming experience. We have been
expanding the content boundaries of our IPs to bring a more diverse range of presentation styles
and greater companionship to our users.

22
FINANCIAL REVIEW

Sales revenue

Revenue of the Company increased from RMB2,813.8 million for the first half of 2023 to
RMB4,557.8 million for the first half of 2024, representing a year-on-year increase of 62.0%.

Revenue by channels

Revenue of the Company is generated in Mainland China and Hong Kong, Macao, Taiwan and
overseas through: (1) offline channels, (2) online channels, and (3) wholesales channels and others.
The following table sets out the Company’s revenue by channels for the first half of 2024 and the
first half of 2023:

For the six months ended 30 June 2024 For the six months ended 30 June 2023
Gross profit Proportion Gross profit Proportion
Revenue margin of revenue Revenue margin of revenue
RMB ’000 RMB ’000

Mainland China
Offline Channels 1,786,250 62.8% 39.2% 1,450,567 63.0% 51.5%
Online Channels 1,095,669 61.8% 24.0% 817,418 59.8% 29.1%
Wholesales and others 324,435 53.5% 7.1% 170,047 35.6% 6.0%

Total 3,206,354 61.5% 70.3% 2,438,032 60.0% 86.6%

Hong Kong, Macao, Taiwan

and overseas
Offline Channels 946,688 72.0% 20.8% 190,359 75.9% 6.8%
Online Channels 247,244 72.7% 5.4% 56,791 75.3% 2.0%
Wholesales and others 157,545 54.8% 3.5% 128,630 38.3% 4.6%

Total 1,351,477 70.1% 29.7% 375,780 62.9% 13.4%

Grand total 4,557,831 64.0% 100.0% 2,813,812 60.4% 100.0%

23
(1) Mainland China

Offline channels. Revenue from offline sales increased by 23.1% from RMB1,450.6 million
for the first half of 2023 to RMB1,786.3 million for the first half of 2024. The table below
sets forth a breakdown of revenue from offline sales by channel and the city tier:

For the six months ended For the six months ended
30 June 2024 30 June 2023
Proportion Proportion Change
Revenue of revenue Revenue of revenue in revenue
RMB ’000 RMB ’000

Retail stores 1,471,276 82.4% 1,179,493 81.3% 24.7%

Roboshops 314,974 17.6% 271,074 18.7% 16.2%

Total 1,786,250 100.0% 1,450,567 100.0% 23.1%

Retail Stores Roboshops

For the six months ended 30 June For the six months ended 30 June
2024 2023 2024 2023
Number Number Number Number
City tier of stores Revenue of stores Revenue of stores Revenue of stores Revenue
RMB’000 RMB’000 RMB’000 RMB’000

First-tier cities3 121 578,165 120 490,731 582 84,491 587 71,171
New first-tier cities4 108 412,334 99 329,101 678 99,627 663 84,279
Second-tier and other cities5 145 480,777 121 359,661 929 130,856 935 115,624

Total 374 1,471,276 340 1,179,493 2,189 314,974 2,185 271,074

– Retail stores. Revenue from retail store sales increased by 24.7% year-on-year from
RMB1,179.5 million for the first half of 2023 to RMB1,471.3 million for the first
half of 2024. Opening of retail stores in Mainland China for the first half of 2024: the
number of retail stores as of 30 June 2024 increased by 34 as compared with that as of
30 June 2023, and the total number of retail stores as of 30 June 2024 was 374.

3
Refers to the first-tier cities in Mainland China, including Beijing, Shanghai, Guangzhou and Shenzhen
4
Refers to the new first-tier cities in Mainland China, including Chengdu, Chongqing, Hangzhou, Wuhan, Xi’an,
Zhengzhou, Qingdao, Changsha, Tianjin, Suzhou, Nanjing, Dongguan, Shenyang, Hefei and Foshan
5
Refers to the cities other than first-tier cities and new first-tier cities in Mainland China

24
– Roboshops. Revenue from roboshop sales increased by 16.2% year-on-year from
RMB271.1 million for the first half of 2023 to RMB315.0 million for the first half of
2024. Opening of roboshops in Mainland China for the first half of 2024: the number
of roboshops as of 30 June 2024 increased by four as compared with that as of 30 June
2023, and the total number of roboshops as of 30 June 2024 was 2,189.

Online channels. Revenue from online sales increased by 34.0% from RMB817.4 million for
the first half of 2023 to RMB1,095.7 million for the first half of 2024. The table below sets
forth a breakdown of revenue from online sales:

For the six months ended For the six months ended
30 June 2024 30 June 2023
Proportion Proportion Change
Revenue of revenue Revenue of revenue in revenue
RMB ’000 RMB ’000

Pop Draw 399,197 36.4% 373,000 45.6% 7.0%

DouYin platform 208,877 19.1% 109,531 13.4% 90.7%
Tmall flagship store 198,841 18.1% 155,264 19.0% 28.1%
Other online channels 288,754 26.4% 179,623 22.0% 60.8%

Total 1,095,669 100.0% 817,418 100.0% 34.0%

Revenue from online channels in Mainland China includes those generated from Pop Draw,
DouYin platform, Tmall flagship store and other online channels, amongst which, revenue
from Pop Draw increased by 7.0% from RMB373.0 million for the first half of 2023 to
RMB399.2 million for the first half of 2024; revenue from DouYin platform increased by
90.7% from RMB109.5 million for the first half of 2023 to RMB208.9 million for the first
half of 2024; and revenue from Tmall flagship store increased by 28.1% from RMB155.3
million for the first half of 2023 to RMB198.8 million for the first half of 2024.

Wholesales and others. Revenue from wholesales and others in Mainland China increased
by 90.8% from RMB170.1 million for the first half of 2023 to RMB324.4 million for the first
half of 2024, primarily due to increase in the revenue generated by POP LAND.

25
(2) Hong Kong, Macao, Taiwan and overseas

Offline channels. Revenue from offline sales increased by 397.3% from RMB190.4 million
for the first half of 2023 to RMB946.7 million for the first half of 2024. The table below sets
forth a breakdown of revenue from offline sales:

For the six months For the six months

ended 30 June 2024 ended 30 June 2023
Proportion Proportion Change
Revenue of revenue Revenue of revenue in revenue
RMB ’000 RMB ’000

Retail stores 893,505 94.4% 164,999 86.7% 441.5%

Roboshops 53,183 5.6% 25,360 13.3% 109.7%

Total 946,688 100.0% 190,359 100.0% 397.3%

– Retail stores. Revenue from retail store sales in Hong Kong, Macao, Taiwan and
overseas increased by 441.5% year-on-year from RMB165.0 million for the first half of
2023 to RMB893.5 million for the first half of 2024. Opening of retail stores in Hong
Kong, Macao, Taiwan and overseas for the first half of 2024: the number of retail stores
as of 30 June 2024 increased by 45 as compared with that as of 30 June 2023, and the
total number of retail stores as of 30 June 2024 was 83.

– Roboshops. Revenue from roboshop sales in Hong Kong, Macao, Taiwan and overseas
increased by 109.7% year-on-year from RMB25.4 million for the first half of 2023
to RMB53.2 million for the first half of 2024. Opening of roboshops in Hong Kong,
Macao, Taiwan and overseas for the first half of 2024: the number of roboshops as of
30 June 2024 increased by 37 as compared with that as of 30 June 2023, and the total
number of roboshops as of 30 June 2024 was 143.

26
Online channels. Revenue from online sales increased by 335.4% from RMB56.8 million
for the first half of 2023 to RMB247.2 million for the first half of 2024. The table below sets
forth a breakdown of revenue from online sales:

For the six months ended 30 For the six months ended 30
June 2024 June 2023
Proportion of Proportion of Change
Revenue revenue Revenue revenue in revenue
RMB ’000 RMB ’000

Pop Mart official website 69,648 28.2% 12,317 21.7% 465.5%

Lazada 45,336 18.3% 9,292 16.3% 387.9%
Shopee 45,183 18.3% 14,803 26.1% 205.2%
Other online channels 87,077 35.2% 20,379 35.9% 327.3%

Total 247,244 100.0% 56,791 100.0% 335.4%

Revenue from online channels in Hong Kong, Macao, Taiwan and overseas includes those
generated from Pop Mart official website, Lazada, Shopee and other online channels, amongst
which, revenue from Pop Mart official website increased by 465.5% from RMB12.3 million
for the first half of 2023 to RMB69.6 million for the first half of 2024; revenue from Lazada
increased by 387.9% from RMB9.3 million for the first half of 2023 to RMB45.3 million
for the first half of 2024; and revenue from Shopee increased from RMB14.8 million for the
first half of 2023 to RMB45.2 million for the first half of 2024, representing an increase of
205.2%. The increase was primarily due to that we continued to develop new online platforms
and expanded into more countries and regions. Meanwhile, we optimized the allocation of
marketing resources and increased the promotion of the platform with higher sales conversion
rate.

Wholesales and others. Revenue from wholesales and others in Hong Kong, Macao, Taiwan
and overseas increased by 22.5% from RMB128.6 million for the first half of 2023 to
RMB157.5 million for the first half of 2024, primarily due to the continuous expansion in
business in Hong Kong, Macau, Taiwan and overseas, and the increasing brand awareness.

Revenue from Hong Kong, Macao, Taiwan and overseas by region. Revenue from Hong
Kong, Macao, Taiwan and overseas increased from RMB375.8 million for the first half of
2023 to RMB1,351.5 million for the first half of 2024, representing an increase of 259.6%.
Hong Kong, Macao, Taiwan and overseas are further divided by region into Southeast Asia,
East Asia and Hong Kong, Macao and Taiwan regions, North America, Europe, Australia and
others. The table below sets forth a breakdown of revenue by region:

27
 For the six months ended 30 For the six months ended 30
June 2024 June 2023
Proportion of Proportion of Change
Revenue revenue Revenue revenue in revenue
RMB ’000 RMB ’000

Southeast Asia 555,751 41.1% 96,094 25.6% 478.3%

East Asia and Hong Kong,
Macao and Taiwan regions 478,040 35.4% 188,438 50.1% 153.7%
North America 177,969 13.2% 37,259 9.9% 377.7%
Europe, Australia and others 139,717 10.3% 53,989 14.4% 158.8%

Total 1,351,477 100.0% 375,780 100.0% 259.6%

Revenue by IPs

Pop Mart proprietary products are our major product type. In the first half of 2024, revenue from
proprietary products contributed 96.2% of our total revenue. Revenue from proprietary products
increased by 69.5% from RMB2,585.8 million for the first half of 2023 to RMB4,382.7 million for
the first half of 2024.

Proprietary products of Pop Mart are mainly divided into: artist IPs and licensed IPs, and the table
below sets forth a breakdown of revenue by IPs:

Six months ended 30 June

2024 2023
Proportion of Proportion of
Revenue revenue Revenue revenue
RMB ’000 RMB ’000

Proprietary products 4,382,741 96.2% 2,585,773 91.9%

Artist IPs 3,687,803 81.0% 2,164,270 76.9%
MOLLY 782,160 17.2% 411,433 14.6%
THE MONSTERS 626,806 13.7% 159,829 5.7%
SKULLPANDA 574,562 12.6% 526,383 18.7%
DIMOO 377,838 8.3% 362,032 12.9%
CRYBABY 349,382 7.7% 26,603 1.0%
HIRONO 245,247 5.4% 109,352 3.9%
Zsiga 122,787 2.7% 45,553 1.6%
HACIPUPU 94,991 2.1% 69,171 2.4%
Other artist IPs 514,030 11.3% 453,914 16.1%

Licensed IPs 694,938 15.2% 421,503 15.0%

External procurement and

others 175,090 3.8% 228,039 8.1%

Total 4,557,831 100.0% 2,813,812 100.0%

28
– Artist IPs. Artist IPs are the major product type of the Company, primarily including
MOLLY, THE MONSTERS, SKULLPANDA and DIMOO. The proportion of revenue
from artist IPs increased from 76.9% for the first half of 2023 to 81.0% for the first half of
2024. Revenue from artist IPs increased by 70.4% from RMB2,164.3 million for the first
half of 2023 to RMB3,687.8 million for the first half of 2024, primarily because we kept
improving product design and innovation capabilities to meet the diversified needs of various
consumers.

– Licensed IPs. Revenue from licensed IPs increased by 64.9% from RMB421.5 million for
the first half of 2023 to RMB694.9 million for the first half of 2024, mainly because we
constantly deepened our cooperation with more copyright owners, continued to expand
the geographical coverage of licensed IP while introducing a wide range of products with
different styles, bringing fun of pop toys to global consumers.

Revenue by product category

The Company’s products are mainly categorized into figure toys, MEGA, plush toys and other IP-
related products and others by category. The following sets forth the breakdown of revenue by
product category:

For the six months ended 30 For the six months ended 30
June 2024 June 2023
Proportion of Proportion of Change in
Revenue revenue Revenue revenue revenue
RMB ’000 RMB ’000

Figure toys 2,656,781 58.3% 2,041,075 72.5% 30.2%

MEGA 586,130 12.9% 242,332 8.6% 141.9%
Plush toys 446,105 9.8% 40,794 1.5% 993.6%
Other IP-related products and others 868,815 19.0% 489,611 17.4% 77.5%

Total 4,557,831 100.0% 2,813,812 100.0% 62.0%

At the product level, we kept introducing new products, enriching product offerings and enhancing
product design capability. Revenue from figure toys increased by 30.2% from RMB2,041.1 million
for the first half of 2023 to RMB2,656.8 million for the first half of 2024; revenue from MEGA
increased by 141.9% from RMB242.3 million for the first half of 2023 to RMB586.1 million for
the first half of 2024; revenue from plush toys increased by 993.6% from RMB40.8 million for the
first half of 2023 to RMB446.1 million for the first half of 2024; revenue from other IP-related
products and others increased by 77.5% from RMB489.6 million for the first half of 2023 to
RMB868.8 million for the first half of 2024.

29
Costs of sales

Our costs of sales increased by 46.9% from RMB1,115.5 million for the first half of 2023 to
RMB1,638.7 million for the first half of 2024. The increase was primarily due to (1) the increase
in costs of goods from RMB923.9 million for the first half of 2023 to RMB1,282.1 million for the
first half of 2024, which was mainly due to the increase in sales; and (2) the increase in design
and licensing costs from RMB77.5 million in the first half of 2023 to RMB192.4 million in the
first half of 2024, which was mainly due to the increase in the proportion of proprietary products
and the increase in co-branded products, which required more IP licensing fees and product design
fees.

Gross profit

The Company’s gross profit increased by 71.9% from RMB1,698.4 million for the first half of
2023 to RMB2,919.1 million for the first half of 2024, primarily due to the increase in revenue and
the control of cost of sales. Our gross profit margin increased from 60.4% for the first half of 2023
to 64.0% for the first half of 2024, primarily due to (1) we optimized product design, strengthened
cost control and enhanced bargaining skill against suppliers; (2) the increase in the proportion of
Hong Kong, Macau, Taiwan and overseas sales contributed to the growth of gross profit margin;
and (3) the gradual decrease in the proportion of externally sourced commodities.

Distribution and selling expenses

Our distribution and selling expenses increased by 54.1% from RMB878.3 million for the first half
of 2023 to RMB1,353.2 million for the first half of 2024, of which, employee benefit expenses and
depreciation of right-of-use assets accounted for a significant part.

– Employee benefit expenses. Employee benefit expenses increased by 31.7% from RMB281.4
million for the first half of 2023 to RMB370.5 million for the first half of 2024, mainly due
to the increase in the number of sales personnel from 3,189 for the first half of 2023 to 4,232
for the first half of 2024, mainly for supporting the expansion of our omni-channel business.

– Lease related expenses. Lease related expenses, which included depreciation of right-of-
use assets and expenses relating to short-term leases and variable leases not included in
lease liabilities, increased by 58.7% from RMB210.2 million for the first half of 2023 to
RMB333.6 million for the first half of 2024, which was mainly due to (1) an increase in the
number of offline retail outlets by 79 compared with that of the first half of 2023 to cater for
our business expansion in Mainland China, Hong Kong, Macao, Taiwan and overseas; and (2)
revenue from retail outlets grew and commission–related rentals increased accordingly.

30
General and administrative expenses

Our general and administrative expenses increased by 31.1% from RMB331.3 million for the first
half of 2023 to RMB434.4 million for the first half of 2024, of which, employee benefit expenses
accounted for a significant part, and the number of our administrative and design and development
personnel increased from 959 for the first half of 2023 to 1,238 for the first half of 2024.

Other income

Other income of the Company decreased by 15.6% from RMB37.4 million for the first half of 2023
to RMB31.6 million for the first half of 2024, among which, (1) government grants decreased from
RMB21.2 million for the first half of 2023 to RMB10.3 million for the first half of 2024; and (2)
income from IP license fee and other services increased from RMB15.5 million in the first half of
2023 to RMB18.9 million in the first half of 2024.

Operating profit

In light of the above, the Company’s operating profit increased by 109.5% from RMB537.8 million
for the first half of 2023 to RMB1,126.4 million for the first half of 2024.

Finance income – net

Our finance income, net, increased from net gains of RMB63.4 million for the first half of 2023 to
net gains of RMB83.8 million for the first half of 2024, primarily due to the increase in our interest
income.

Income tax expense

Our income tax expense increased from RMB141.3 million for the first half of 2023 to RMB264.3
million for the first half of 2024 as a result of the increase in profit before income tax. Our
effective tax rate decreased from 22.8% for the first half of 2023 to 21.5% for the first half of
2024.

31
Profit for the period

As a result of the above, our profit for the period increased from RMB477.2 million for the first
half of 2023 to RMB964.1 million for the Reporting Period, representing an increase of 102.0%.

Non-IFRS adjusted net profit

The non-IFRS adjusted net profit has not been calculated in accordance with the IFRS Accounting
Standards, thus it is deemed as a non-IFRS financial indicator. The non-IFRS adjusted net profit
refers to the net profit after excluding share-based payment expenses, while the non-IFRS adjusted
net profit margin refers to the non-IFRS adjusted net profit divided by revenue. We are of the view
that such information is useful for investors to compare the results of the Group, provided that the
results of operation or cash flows of the Group are not being affected, and enables investors to
take into consideration of the indicators used by the management when assessing the results of the
Group. Investors shall not treat non-IFRS financial indicator as an alternative or better version of
the results of the Group prepared in accordance with IFRS Accounting Standards. In addition, not
all companies will adopt the same way in calculating such non-IFRS financial indicators. Hence,
similar measurements made by other companies may not be comparable.

The following table sets out the reconciliation of non-IFRS financial indicators of the Company for
the respective periods.

For the six For the six

months ended months ended
30 June 2024 30 June 2023
RMB ’000 RMB ’000

Profit for the period 964,142 477,242

Adjustments
Share-based payment 53,483 58,123

Non-IFRS adjusted net profit 1,017,625 535,365

Non-IFRS adjusted net profit margin 22.3% 19.0%

Share-based payment expenses are non-cash items, which do not directly reflect our business
operation. Hence, through eliminating the effects of such items on calculation of non-IFRS
adjusted net profit, relevant operating performance can be better reflected, and it would be more
convenient to compare operating performance in different periods.

Current Assets, Financial Resources and Capital Expenditures

For the six months ended 30 June 2024, the Company and its subsidiaries adopted conservative
and stable fund management and financial policies in their overall business operations. The Group
maintained the following resources to meet its working capital requirements:

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Current assets and current liabilities

Our net current assets increased from RMB5,950.2 million as of 31 December 2023 to RMB6,647.0
million as of 30 June 2024, which was basically stable.

Trade receivables

Trade receivables represent outstanding amounts receivable by us from our customers in the
ordinary course of business. Our trade receivables decreased from RMB321.3 million as of
31 December 2023 to RMB263.7 million as of 30 June 2024. Trade receivables turnover days
decreased from 15 days in 2023 to 12 days for the six months ended 30 June 2024.

Inventories

Our inventories comprise finished goods. Our inventories increased from RMB904.7 million as of
31 December 2023 to RMB916.7 million as of 30 June 2024. The total inventory remained stable,
and we will maintain flexible adjustments to the supply chain to improve the accuracy of forecasts
and improve the efficiency of inventory turnover. Inventory turnover days decreased from 133 days
in 2023 to 101 days for the six months ended 30 June 2024.

Cash and cash equivalents

Our cash and cash equivalents primarily comprise cash at bank. Cash and cash equivalents
increased from RMB2,077.9 million as of 31 December 2023 to RMB3,608.7 million as of 30
June 2024, primarily due to (1) the increase in cash generated from operating activities and
(2) the decrease in some fixed-term deposits.

Trade payables

Trade payables primarily represent our obligation to pay for merchandise from suppliers in the
ordinary course of business. Trade payables increased from RMB444.9 million as of 31 December
2023 to RMB555.1 million as of 30 June 2024, primarily due to the increase in procurement
amount as a result of our business growth, which in turns resulted in the increase in balance of
payables to suppliers. Trade payable turnover days increased from 53 days for 2023 to 56 days for
the six months ended 30 June 2024.

33
Bank borrowings

The Group did not have any bank borrowings as of 30 June 2024.

Pledge of Assets

The Group did not have any pledged assets as of 30 June 2024.

Gearing Ratio

The gearing ratio is calculated by dividing total liabilities by total assets and then multiplying by
100%. As at 30 June 2024, the gearing ratio of the Group was 23.3% as compared with the gearing
ratio of 22.0% as at 31 December 2023.

Contingency

We are not currently involved in any material legal proceedings, nor are we aware of any pending
or potential material legal proceedings involving us. If we are involved in such material legal
proceedings, we would record any loss or contingent liabilities when, based on information then
available, it is likely that a loss has been incurred and the amount of the loss can be reasonably
estimated.

Foreign Exchange Risk Management

As the Company ’ s subsidiaries operate in Mainland China, Hong Kong, Macao, Taiwan and
overseas, they are exposed to foreign exchange risk arising from certain currency exposure
(mainly related to US dollar, Thai Baht and Hong Kong dollar). Our management considers that
the business is not exposed to any significant foreign exchange risk as the financial assets and
liabilities of our Group denominated in currencies other than the respective functional currencies
of our operating entities are insignificant. Although the Group does not hedge against foreign
currency fluctuation, we will keep a close eye on relevant developments and take measures when it
is necessary to ensure the foreign exchange risk is under control.

Capital Expenditures

The Company’s capital expenditures consist of purchases of property, plant and equipment and
purchases of intangible assets. The table below sets out the Company’s capital expenditures for the
first half of 2023 and the first half of 2024:

For the six For the six

months ended months ended
30 June 2024 30 June 2023
RMB ’000 RMB ’000

Purchases of property, plant and equipment 157,858 186,617

Purchase of intangible assets 28,587 27,462

Total 186,445 214,079

34
Human Resources

As of 30 June 2024, we had a total of 5,470 employees, including 4,232 sales personnel and 1,238
administrative and development personnel. As of 30 June 2024, we incurred staff costs (including
remuneration, payrolls, allowances and benefits) of RMB657.7 million in total.

Future Plans on Significant Investments

As of 30 June 2024, we did not hold any significant investment.

We will continue to seek for potential strategic investment opportunities, as well as potential
quality target operations and assets that can create synergy effect to the Group.

Material Acquisitions and Disposals

For the six months ended 30 June 2024, we had not conducted any material acquisition or disposal
of subsidiaries, associates and joint ventures.

SUBSEQUENT EVENT AFTER REPORTING PERIOD

As at the date of this announcement, the Group has no significant events occurred after the
Reporting Period which require additional disclosures or adjustments.

OUTLOOK

IP is at the core of our business. Through our innovative products, delicate design and quality
services, we aim to offer consumers with joyful pop culture and artistic experience. At the same
time, by continuously increasing our brand value, expanding product categories and innovating
product models, we will enhance the brand loyalty of users on Pop Mart, thereby maintaining our
strong market position and competitiveness.

We will strive to enrich our IPs types, expand our IPs base, maintain high-quality design and
innovation standards, introduce more products under the top series, incubate and operate IPs
continuously, strengthen IPs essence, and deepen the emotional connection between fans and IPs.
We will continuously increase types of pop toys, further explore the value of box products such as
MEGA, plush toys, toy bricks and other IP-related products, and improve relevant technologies and
production and sales procedures. With the continuous increase in product offerings as we continue
to carry out research and development and improve process, we will deploy the supply chain
globally, and seek more suitable and efficient partners including manufacturers and suppliers, so
as to meet market demand and ensure efficient production supply. We will also pay attention to the
philosophy of sustainable development and environmental protection, launch more products and
packaging made of environmentally friendly materials, providing global consumers with more safe
and assured product choices.

35
We will continue to expand our global business footprint and achieve further growth in Southeast
Asia and Europe markets. We will establish offline channels in major global landmarks, enhancing
consumer experiences and boosting brand recognition. Simultaneously, we will not only strengthen
our partnerships with third-party platforms but also invest further in content-driven e-commerce
platforms and our official website, providing consumers with better pop culture experiences in
more countries and regions. We aim to leverage our brand influence to collaborate with more
brands and artists, so as to enrich our product lines while boosting brand awareness, thereby
enhancing the global impact of pop culture.

We will continue to enhance our differentiated channel positioning, steadily expand our channel
network, and continuously improve our capability in refining operation, so as to boost our
operational efficiency. We will keep promoting the innovation of retail digitalized operation, and
strengthen our capabilities in member operation, with an aim to provide the best-in-class, enjoyable
and consistent consumer service experience.

We will continue to promote pop toy culture through more diversified means, influence the whole
industry continuously, offer more benefits for our privilege members, increase the stickiness of
fans, as well as enhance the cultural identity and brand awareness of fans.

While further engaging in the pop toy business, we will facilitate the establishment of amusement
parks and other new businesses to construct a more sophisticated and comprehensive business
ecosystem with IP at its core.

USE OF NET PROCEEDS FROM LISTING

The shares of the Company were listed on the Main Board of The Stock Exchange of Hong Kong
Limited (the “Stock Exchange”) on 11 December 2020 by way of global offering, and the total net
proceeds (the “Net Proceeds”) received by the Company from the global offering (including the
full exercise of the over-allotment option) amounted to approximately HK$5,781.7 million after
deducting professional fees, underwriting commissions and other related listing expenses.

36
As stated in the prospectus of the Company dated 1 December 2020 (the “Prospectus”), the
intended uses and the balance of the Net Proceeds are set out below:

Amount of
Amount of Net Proceeds Amount of Balance of Intended timetable
Percentage Net Proceeds utilized during Net Proceeds Net Proceeds for use of the
Allocation of of total Net unutilized up to 6 months ended utilized up to unutilized as at unutilized Net
Intended use of Net Proceeds Net Proceeds Proceeds 31 December 2023 30 June 2024 30 June 2024 30 June 2024 Proceeds

(i) To finance part of our expansion HK$1,734.5 million 30.0% HK$263.3 million HK$221.3 million HK$1,692.5 million HK$42.0 million
plans of consumer access
channels and overseas markets
(a) for opening new retail HK$954.0 million 16.5% – – HK$954.0 million – –
stores
(b) for opening new roboshops HK$346.9 million 6.0% HK$84.6 million HK$42.6 million HK$304.9 million HK$42.0 million Before 31 December
2025
(c) for expanding our business HK$433.6 million 7.5% HK$178.7 million HK$178.7 million HK$433.6 million – –
into overseas markets
(ii) To fund our potential HK$1,561.1 million 27.0% HK$1,249.3 million – HK$311.8 million HK$1,249.3 million Before 31 December
investments in, acquisitions 2025
of and strategic alliance with
companies along the value chain
of our industry
(iii) To invest in technology HK$867.2 million 15.0% HK$370.7 million HK$121.5 million HK$618.0 million HK$249.2 million
initiatives to strengthen our
marketing and fan engagement
efforts, and to enhance the
digitalization of our business
(a) for talent recruitment HK$173.5 million 3.0% HK$62.4 million HK$34.9 million HK$146.0 million HK$27.5 million Before 31 December
2025
(b) for acquiring relevant HK$346.9 million 6.0% HK$242.0 million HK$20.3 million HK$125.2 million HK$221.7 million Before 31 December
software and hardware 2025
to enhance digitalization
and establish information
systems for digital
marketing, customer
services, logistics,
products, supply chain,
warehousing, membership,
transactions and store
management and marketing
(c) for optimizing our HK$346.8 million 6.0% HK$66.3 million HK$66.3 million HK$346.8 million – –
online marketing efforts,
which primarily consist
of strategically placed
advertisement, icons,
links and notifications on
third party promotional
platforms

37
 Amount of
Amount of Net Proceeds Amount of Balance of Intended timetable
Percentage Net Proceeds utilized during Net Proceeds Net Proceeds for use of the
Allocation of of total Net unutilized up to 6 months ended utilized up to unutilized as at unutilized Net
Intended use of Net Proceeds Net Proceeds Proceeds 31 December 2023 30 June 2024 30 June 2024 30 June 2024 Proceeds

(iv) To expand our IP pool HK$1,040.7 million 18.0% HK$722.9 million HK$29.1 million HK$346.9 million HK$693.8 million
(a) for enhancing our ability to HK$260.3 million 4.5% HK$29.1 million HK$29.1 million HK$260.3 million
identify outstanding artists
(b) for recruiting talented HK$86.6 million 1.5% HK$86.6 million
designers to join our in-
house design team to
enhance our in-house
original IP development
capability by providing
competitive salary
(c) for acquisitions of popular HK$693.8 million 12.0% HK$693.8 million HK$693.8 million Before 31 December
IPs from to expand our IP 2025
pool
(v) Working capital and general HK$578.2 million 10.0% HK$578.2 million
corporate purposes

The Group will utilise the Net Proceeds of the initial public offering in accordance with the
intended purposes as set out in the Prospectus.

INTERIM DIVIDEND

The Board did not recommend the payment of an interim dividend for the six months ended 30
June 2024.

CORPORATE GOVERNANCE

The Group is committed to maintaining high standards of corporate governance to safeguard the
interests of the shareholders of the Company and to enhance corporate value and accountability.
The Company has adopted the Corporate Governance Code (the “ CG Code ” ) as set out in
Appendix C1 to the Listing Rules as its own code of corporate governance. The Company has
complied with all applicable code provisions of the CG Code during the six months ended 30 June
2024, except for deviation from code provision C.2.1 as explained under the paragraph headed
“Chairman and Chief Executive Officer” below.

38
Chairman and Chief Executive Officer

Code provision C.2.1 of the CG Code stipulates that the roles of Chairman and Chief Executive
should be segregated and should not be performed by the same individual. According to the current
structure of the Board, the positions of the Chairman and Chief Executive Officer of the Company
are held by Mr. Wang Ning.

The Board believes that this structure will not impair the balance of power and authority between
the Board and the management of the Company, given that: (i) decision to be made by the
Board requires approval by at least a majority of the Directors and that the Board comprises
three independent non-executive Directors out of nine Directors, and the Board believes there is
sufficient check and balance on the Board; (ii) Mr. Wang Ning and other Directors are aware of
and undertake to fulfil their fiduciary duties as Directors, which require, among other things, that
they act for the benefit and in the best interests of the Company and will make decisions of the
Group accordingly; and (iii) the balance of power and authority is ensured by the operations of the
Board which comprises experienced and high caliber individuals who meet regularly to discuss
issues affecting the operations of the Group. Moreover, the overall strategic and other key business,
financial and operational policies of the Group are made collectively after thorough discussion at
both the Board and senior management levels. Finally, as Mr. Wang Ning is our principal founder,
the Board believes that vesting the roles of both chairman and Chief Executive Officer in the
same person has the benefit of ensuring consistent leadership within the Group and enables more
effective and efficient overall strategic planning for the Group. The Board will continue to review
the effectiveness of the corporate governance structure of the Group in order to assess whether
separation of the roles of chairman and chief executive officer is necessary.

MODEL CODE FOR SECURITIES TRANSACTIONS

The Company has adopted the Model Code for Securities Transactions by Directors of Listed
Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules as its own code
of conduct regarding directors ’ securities transactions. Having made specific enquiries of all
Directors, each of the Directors has confirmed that he/she has complied with the required standards
as set out in the Model Code during the six months ended 30 June 2024.

39
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OR SALE OF
TREASURY SHARES

During the six months ended 30 June 2024, the Company repurchased a total of 4,700,000
shares of the Company on the Stock Exchange at an aggregate consideration of approximately
HK$85,826,488. The repurchased shares were subsequently cancelled. Particulars of the shares
repurchased are as follows:

Month of Repurchase No. of Shares Price Paid per Share Aggregate

Repurchased Highest Lowest Consideration
(HK$) (HK$) (HK$)

January 3,890,000 19.96 17.00 71,168,524

February 810,000 18.46 17.62 14,657,964

Total 4,700,000 85,826,488

Save as disclosed above, during the six months ended 30 June 2024, neither the Company nor any
of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities or sold
any treasury Shares (as defined under the Listing Rules). As at 30 June 2024, the Company did not
hold any treasury Shares (as defined under the Listing Rules).

AUDIT COMMITTEE

The Audit Committee comprises two independent non-executive Directors and one non-executive
Director, namely, Mr. Wu Liansheng, Mr. Ngan King Leung Gary and Mr. Tu Zheng. The
chairman of the Audit Committee is Mr. Wu Liansheng, and Mr. Ngan King Leung Gary, a
member of the Audit Committee, has a professional qualification in accountancy.

The Audit Committee has reviewed with management the accounting principles and practices
adopted by the Group, and discussed internal controls and financial reporting matters, including a
review of the interim financial information for the six months ended 30 June 2024.

The Company’s external auditor, PricewaterhouseCoopers, has performed a review of the Group’s
interim financial information for the six months ended 30 June 2024 in accordance with the
International Standard on Review Engagements 2410 “Review of Interim Financial Information
Performed by the Independent Auditor of the Entity”. Based on their review, nothing has come to
their attention that causes them to believe that the interim financial information is not prepared, in
all material respects, in accordance with International Accounting Standard 34 “Interim Financial
Reporting”.

40
PUBLICATION OF THE INTERIM RESULTS AND 2024 INTERIM REPORT ON THE
WEBSITES OF THE STOCK EXCHANGE AND THE COMPANY

This interim results announcement is published on the websites of the Stock Exchange
(www.hkexnews.hk) and the Company (www.popmart.com), and the interim report of the Company
for the six months ended 30 June 2024 containing all the information required by the Listing
Rules will be published on the respective websites of the Stock Exchange and the Company in due
course.

By order of the Board

POP MART INTERNATIONAL GROUP LIMITED
Wang Ning
Executive Director, Chairman of the Board and Chief Executive Officer

Hong Kong, 20 August 2024

As at the date of this announcement, the executive Directors are Mr. Wang Ning, Ms. Liu Ran, Mr.
Si De and Mr. Moon Duk II, the non-executive Directors are Mr. Tu Zheng and Mr. He Yu, and
the independent non-executive Directors are Mr. Zhang Jianjun, Mr. Wu Liansheng and Mr. Ngan
King Leung Gary.

41