(Yicai) June 20 -- Shares in Pop Mart International Group tumbled for the second straight day today after the Chinese collectible toy giant hiked supply of its wildly popular Labubu toy series, causing resale prices to halve.

Pop Mart’s share price [HKG:9992] sank 3.6 percent to HKD239.60 (USD30.52), following a 5.3 percent drop yesterday. Nonetheless, the stock is still up 170 percent this year thanks to the global frenzy following the release of Labubu 3.0 in April.

Pop Mart launched online pre-sales of its Labubu 3.0 series on June 18 across multiple channels including its flagship store and Alibaba Group Holding’s e-marketplace Tmall. On Tmall alone, there were pre-orders for more than 700,000 units, with shipments backlogged until September.

Previously, resellers had exploited the limited supply of Labubu 3.0 to mark up prices. A set of blind boxes, where the exterior packaging is the same but the contents are different, containing six pieces of Labubu 3.0 monster elves which normally retails for CNY594 (USD83) would go for more than CNY1,500 (USD208) on second-hand trading platforms, sometimes fetching as much as CNY2,800 (USD389).

However, after Beijing-based Pop Mart ramped up supply, resale prices for the Labubu 3.0 quickly plunged to between CNY650 (USD90.50) and CNY800. And the later the shipping date, the lower the price, Yicai learned.

"Labubu 3.0 has been incredibly popular worldwide, however we have noticed some shady activities that undermine the consumer experience. We’ve optimized sales procedures for more customers to purchase Labubu," an insider from Pop Mart told Yicai.

Best known for its ‘blind boxes’ of trendy toys, Pop Mart’s four main copyrighted products are The Monsters, which includes Labubu, as well as Molly, Skullpanda and Crybaby.

The firm’s net profit surged 189 percent last year from the year before to CNY3.1 billion (USD431.5 million), while revenue doubled to CNY13 billion (USD1.8 billion). The Monsters series alone raked in over CNY3 billion, according to the annual report.

Editor: Kim Taylor