(Yicai) March 25 -- Shares of Pop Mart International Group plunged after the Chinese toymaker’s annual earnings report revealed its deepening heavy reliance on the hit Labubu monster dolls, which helped to power an almost tripling of the firm’s revenue last year.

Pop Mart’s shares [HKG: 9992] finished 22.5 percent lower at HKD168.30 (USD21.53) each in Hong Kong today. The stock has halved in value since closing at a record high of HKD335.40 on Aug. 26 last year.

Revenue surged 185 percent to CNY37.1 billion (USD4.75 billion) in the 12 months ended Dec. 31, surpassing CNY30 billion for the first time, the Beijing-based company’s financial statement showed today. Adjusted net profit soared 285 percent to CNY13.1 billion.

Income from The Monsters series, which includes the elf-like Labubu dolls, exceeded CNY10 billion for the first time. Pop Mart did not provide earnings guidance.

The results heightened investor concerns about Labubu’s disproportionately high contribution to Pop Mart’s earnings because when one intellectual property accounts for such a major share of revenue, the development of other IPs tends to be relatively weak, analysts said.

Other Pop Mart products such as Twinkle Twinkle, a group of tiny star collectibles, are gaining popularity, but have nowhere near the global status of Labubu.

The Monsters series became a global sensation last year, generating revenue of CNY14.16 billion, a 366 percent jump. Six product lines, including Molly, Dimoo, and Twinkle Twinkle, each topped a more modest CNY2 billion (USD290 million), while 17 other Pop Mart IPs raked in over CNY100 million (USD14.5 million).

Last week, Pop Mart and Sony Pictures Entertainment announced that they are working on a Labubu film, a move that is seen as part of Pop Mart’s push to turn the characters into a long-lived intellectual-property franchise.

Annual revenue from the Chinese market rose 135 percent to CNY20.9 billion, accounting for 56 percent of the total. The Asia-Pacific market contributed CNY8 billion, a gain of 157 percent, making up 22 percent of total revenue. 

In the Americas, where there was a notable craze for Labubu, revenue reached CNY6.8 billion, skyrocketing by 748 percent and accounting for over 18 percent of the total. The firm had revenue of CNY1.45 billion in Europe and other regions, a 506 percent increase to make up almost 4 percent of total revenue.

Pop Mart revealed that it operated 630 offline stores in 20 countries last year, with a net increase of 109, of which 14 were opened in China. The company opened its first offline stores in Germany, Denmark, Canada, and the Philippines, and it also operated 2,637 robot stores, with a net increase of 165 for the year. 

Editor: Tom Litting