Pop Mart shares dropped over 22% in Hong Kong trading after annual results revealed continued heavy dependence on the Labubu doll, which accounts for 38% of revenue. Revenue surged 185% to Rmb37.1bn ($1.9bn), but analysts warned the toy company remains vulnerable to shifting consumer preferences. Sales of Labubu soared 365% to Rmb14.2bn, yet other products like Molly and Crybaby underperformed, with Molly generating only Rmb2.9bn versus expected Rmb4.6bn.

Investors fear the blind box model’s addictive nature and declining secondary market prices signal waning enthusiasm. Founder Wang Ning claimed diversified growth without Labubu, but analysts like Jeff Zhang argue the firm needs more time to reduce reliance on the iconic monster doll. Overseas expansion to 109 new stores and partnerships, including a Labubu movie with Sony, highlight efforts to broaden appeal. The market impact underscores risks of overdependence on a single product line in a competitive toy industry.