In-depth Research Report on the Global Expansion of China's Trendy Toys and Game IPs

Based on collected data and research reports, I will conduct a systematic analysis of

.

---

China’s IP industry is undergoing a historic transformation from the “World Factory” to a “Global IP Creator”. In 2024, the actual sales revenue of China’s self-developed games in overseas markets reached US$18.557 billion, a year-on-year increase of 13.40%, far exceeding the global mobile game in-app purchase revenue growth rate of 4%[1]. Meanwhile, the scale of China’s emotional economy market reached 2,307.767 billion yuan in 2024, an 18.50% increase from 2023, and is expected to exceed 4.5 trillion yuan by 2029[2].

The core drivers of this successful transformation are:

• Meticulous Designer Culture
  : Taking Pop Mart as an example, the company has long maintained restraint and highly respects business rules, providing designers with sufficient creative space instead of excessive intervention that would reduce IPs to “commercial symbols”[3]
• Strict Quality Control System
  : A closed-loop system from artist discovery, IP incubation, supply chain management to omnichannel marketing
• Global Operation Capabilities
  : Effective integration of local team building and cross-cultural communication strategies

---

Pop Mart achieved a historic breakthrough in 2024, with annual revenue reaching 13.04 billion yuan, a year-on-year increase of 106.9%, exceeding the 10 billion yuan mark for the first time. Adjusted net profit was 3.4 billion yuan, a year-on-year increase of 185.9%[4]. Its overseas business performed particularly well: revenue from Hong Kong, Macau, Taiwan and other overseas regions reached 5.07 billion yuan, a year-on-year increase of 375.2%, accounting for 38.9% of total revenue.

Region	Revenue (100 million yuan)	YoY Growth Rate	Revenue Share
Southeast Asia	24.0	619.1%	47.4%
East Asia, Hong Kong, Macau and Taiwan	13.9	184.6%	27.4%
North America	7.2	556.9%	14.3%
Europe, Australia and Others	5.5	310.7%	10.9%

In the first half of 2025, Pop Mart continued its strong growth momentum, achieving revenue of 13.876 billion yuan, a year-on-year surge of 204.4%; net profit reached 4.574 billion yuan, a year-on-year skyrocket of 396.5%. Among them, revenue from the Americas reached 2.265 billion yuan, a year-on-year surge of 1142.3%, while revenue from regions such as Singapore and Thailand reached 2.851 billion yuan, a year-on-year increase of 257.8%[5].

THE MONSTERS, an IP under Pop Mart, achieved revenue of 3.04 billion yuan in 2024, a year-on-year increase of 726.6%, with the LABUBU vinyl plush series becoming a global phenomenon[6]. This success is not accidental, but the result of multiple overlapping factors:

• Lisa, a member of the South Korean girl group BLACKPINK, spontaneously showcased LABUBU on Instagram, sparking global fan enthusiasm
• International celebrities such as US music icon Rihanna, football star David Beckham, and actors Liu Yifei and Shu Qi have successively shared LABUBU on social media
• Pop Mart management clearly stated that no endorsement fees were paid; all celebrities shared out of genuine fondness[7]

LABUBU conveys concepts such as “embrace differences”, “brave expression”, and “accept imperfection”, which precisely align with the spiritual pursuits of global youth. Designer Kasing Lung said: “Beneath Labubu’s quirky appearance lies innocence, which is a reflection of the spiritual corner of today’s young people.”[8]

• As of the end of 2024, the company had 130 physical stores and 192 robot stores in Hong Kong, Macau, Taiwan and other overseas regions
• Adopted a DTC (Direct-to-Consumer) strategy, establishing local teams in each region
• The world’s first Labubu-themed store opened at MEGA BANGNA in Bangkok, with first-day sales exceeding 10 million yuan[9]

The high gross margin of overseas business is an important driver for Pop Mart’s accelerated globalization:

Year	Domestic Gross Margin	Overseas Gross Margin	Difference
2023	60.6%	64.9%	+4.3pct
2024	63.9%	71.3%	+7.4pct

The company’s overall gross margin in 2024 was 66.8%. Orient Securities predicts that it will reach 67.5% and 68.0% in 2025 and 2026 respectively[10]. The increasing proportion of high-margin overseas business will continue to optimize the company’s overall profit structure.

---

Love and Deepspace, a game under Paper Games, has achieved remarkable commercial results since its global launch on January 18, 2024:

• Global revenue reached approximately 600 million yuan in the first month after launch
• As of June 2025, cumulative global revenue reached US$650 million
• Global revenue in December 2024 increased by 46% month-on-month, hitting a record high[11]

In 2024, Paper Network’s global revenue increased by 660% year-on-year, reaching the sum of its revenue from 2019 to 2023. This growth rate not only demonstrates Paper Games’ strength in game development and marketing, but also reflects the huge potential of the female-oriented mobile game market.

In August 2025, Love and Deepspace won the Best Mobile Game Award at Germany’s Gamescom, becoming the first female-oriented game to receive this prestigious award[12]. This honor is a milestone:

• It is the first time in history that a female-oriented romantic game has been nominated and won an award
• It has gained international recognition at the world’s largest game exhibition
• It proves that Chinese game developers have reached world-leading levels of innovation in niche tracks

In May 2024, Paper Games officially announced its overseas brand Infold Games, with its headquarters in Singapore and branches established in Los Angeles, Tokyo, Seoul and other locations[13].

• Infinite Nikki launched its global open beta in early December 2024, topping the overall iOS download charts in China and Japan on its first day, and becoming the most downloaded mobile game in China’s iOS market that month
• The Thousand Faces is positioned in the martial arts action genre
• Pact of All Things is suspected to adopt Cthulhu elements

---

In February 2022, miHoYo launched its new brand HoYoverse, based in Singapore, aiming to create and provide immersive virtual world experiences for global players through various entertainment services[14]. This strategic layout includes:

• Opened its first North American studio in Montreal, Canada
• Has overseas offices in Singapore, Los Angeles, Tokyo and Seoul
• In 2024 campus recruitment, international-related positions accounted for more than 20%
• Among over 530 social recruitment positions, approximately 100 are clearly categorized under international roles

In 2021, Kai Zheng, a senior level designer who previously worked at renowned game companies such as EA and Santa Monica Studio, joined miHoYo. In July 2022, Jim Yang, former head of global studios at Finnish game developer Supercell, officially joined miHoYo as the President of HoYoverse, the international division[15].

The global success of Genshin Impact is largely attributed to its in-depth localized marketing strategies:

Region	Collaboration Content
Singapore, Malaysia, Thailand	Collaboration with Domino’s Pizza, giving away Paimon and Traveler merchandise
Japan	Collaboration with Sweet Paradise café and Sony on co-branded headphones
South Korea	Game-themed exhibition at Gyeongbokgung Palace, exclusive sponsorship of the variety show Boys Planet 999
United Kingdom	Construction of a giant Paimon figure on the River Thames
France	Offline art exhibition in Paris, displaying game original paintings and design drafts

---

The valuation logic of Pop Mart is undergoing a shift from a “consumer goods company” to a “pan-entertainment platform”:

• Beginning of the year: HK$89.65
• Mid-year peak: HK$339.8 (August)
• End of the year: HK$187.7
• Full-year increase: 109.37%
• Peak market capitalization: HK$450 billion
• End-of-year market capitalization: HK$252.081 billion[16]

Cinda Securities’ research report points out that the valuation increase of Pop Mart stems from three core logics:

1. Systematic IP creation and operation capabilities
   : Instead of relying on a single IP, it has verified a closed-loop system from artist discovery to omnichannel marketing
2. Globalization as capability monetization
   : Marks the company’s transition from a “Chinese trendy toy brand” to a “global cultural and entertainment brand”
3. Ecosystem construction raises the valuation ceiling
   : Exploration of entertainment ecosystems such as theme parks and games means a shift from the “product premium” model to “experience premium” and “content premium” models[17]

Indicator	2024A	2025E	2026E	2027E
Revenue (100 million yuan)	130.4	221	337	462
Adjusted Net Profit (100 million yuan)	34.0	63	100	143
EPS (yuan)	2.36	10.37	14.51	17.59
PE	18.33X	13.10X	10.80X	-

According to research data from Hualong Securities, the valuation levels of sub-sectors in the media sector are as follows:

• Game sector PE: 27.58x
• Film and television sector PE: 37.07x
• Publishing sector PE: 15.97x
• Advertising and marketing sector PE: 29.40x[18]

The valuation premium of China’s IP-related enterprises mainly comes from:

• High growth potential
  : Overseas businesses generally maintain a growth rate of over 200%
• High profitability
  : Gross margins continue to rise (Pop Mart’s overseas business gross margin exceeds 70%)
• Strong barriers
  : IP incubation systems and global operation capabilities are difficult to replicate

---

1. Broad Market Space
   • The global female-oriented online game market reached US$5.004 billion in 2024, and is expected to increase to US$7.761 billion by 2031, with a compound annual growth rate of 6.9%[19]
   • The trendy toy market has transformed from a regional industry to a global business
   • The “goods economy” (otaku merchandise economy) is expected to reach market sizes of 240.6 billion yuan, 276.69 billion yuan, and 309.89 billion yuan in 2025-2027 respectively

2. Diversified IP Matrix
   • Pop Mart has formed a matrix of four IPs with revenue exceeding 1 billion yuan: THE MONSTERS, MOLLY, SKULLPANDA, and CRYBABY
   • 13 IPs have achieved revenue exceeding 100 million yuan
   • IPs such as HIRONO and Zsiga under the PDC Original Studio continue to contribute incremental revenue

3. Channel Network Expansion
   • 89 new stores were added globally in the first half of 2025, bringing the total to 542
   • The proportion of overseas stores has risen to 40%
   • The DTC model ensures high store efficiency and direct user connection

1. IP Lifecycle Management
   • The popularity of top IPs has cyclical characteristics
   • Labubu’s popularity has declined since its 2025 peak, with the stock price correcting by over 40%

2. Homogeneous Competition
   • Problems such as homogeneous competition and excessive IP consumption have emerged due to the boom in the mass market
   • For the industry to achieve long-term healthy development, it needs to return to “long-termism where slow progress leads to rapid success”

3. Quality Control and Trust Crisis
   • Love and Deepspace once triggered a large number of complaints due to inconsistencies between the event PV and the actual in-game content
   • A total of over 1,500 player complaints were received within 3 days, pointing to issues such as false advertising and consumer inducement

1. Geopolitical Risks
   • Risks of geopolitical and cultural differences in overseas market expansion
   • Increasingly strict regulation of imported games in various countries

2. Macro Economic Downturn
   • A global economic downturn may affect consumers’ discretionary spending
   • Trendy toys and games are discretionary consumer goods

---

, mainly based on the following judgments:

1. Business Logic Has Been Verified
   • Overseas performance of enterprises such as Pop Mart, Paper Games, and miHoYo has maintained high growth for consecutive years
   • Gross margin advantages (overseas business gross margin is significantly higher than domestic) provide continuous expansion momentum
   • Localized operation capabilities and IP incubation systems form a replicable business model

2. Valuation System Is Being Reconstructed
   • Valuation shift from consumer goods companies to pan-entertainment platforms
   • Globalization capabilities bring valuation premiums
   • Ecosystem construction opens up growth ceiling

3. Cultural Export Value Is Prominent
   • Labubu has become a “common language” for global youth
   • Love and Deepspace has been recognized at Gamescom
   • Chinese IPs are transforming from “Chinese symbols” to “global symbols”

For investors, it is recommended to focus on the following areas:

1. Enterprises with Systematic IP Operation Capabilities
   • Capable of continuously incubating new IPs instead of relying on a single IP
   • Possess global organizational and localized operation capabilities

2. Companies with Increasing Proportion of High-Margin Overseas Business
   • Overseas business profitability is better than domestic
   • Large room for scale effects and supply chain cost reduction and efficiency improvement

3. Enterprises Actively Deploying Pan-Entertainment Ecosystems
   • Evolve from product premium to experience premium and content premium models
   • Diversified monetization paths such as theme parks, games, and film and television

---

[1] Hualong Securities - Emotional Consumption + AI Resonance, Focus on IP, Games and AI Application Implementation (December 2025)
[2] Ibid.
[3] Xinhua News Agency - Cultural and Creative Industries Cross Borders, China’s Trendy Toys Rank Among Global Top Tiers (December 2025)
[4] Xinhua News Agency - Pop Mart Releases 2024 Annual Financial Report: Revenue Exceeds 10 Billion Yuan, Net Profit Hits Record High (March 2025)
[5] Securities Times - 2025: The “Golden Age” of China’s IP Economy (January 2026)
[6] East Money - An In-depth Look at Pop Mart’s 2024 Annual Report: Overseas Surge, Category Innovation and IP Ecosystem Evolution (March 2025)
[7] Xinhua News Agency - Cultural and Creative Industries Cross Borders, China’s Trendy Toys Rank Among Global Top Tiers (December 2025)
[8] Ibid.
[9] 36Kr - Store’s Daily Revenue Exceeds 10 Million Yuan, Is LABUBU a “Female Celebrity” in Thailand? (October 2024)
[10] East Money - An In-depth Look at Pop Mart’s 2024 Annual Report (March 2025)
[11] National Business Daily - Giants Awaken, Newcomers Disrupt the Market: Paper Network Ranks Among Top 5 Domestic Mobile Game Developers by the End of 2024 (January 2025)
[12] Yangpu District People’s Government - Making History: Love and Deepspace Wins Best Mobile Game Award at Germany’s Gamescom (August 2025)
[13] The Paper - Paper Games Has “Gone Dark” (July 2024)
[14] EqualOcean - Research on the Game Overseas Industry and Benchmark Enterprises (miHoYo) (February 2025)
[15] Ibid.
[16] Securities Times - 2025: The “Golden Age” of China’s IP Economy (January 2026)
[17] Cinda Securities - The Evolution from a Trendy Toy Giant to a Global IP Ecosystem Platform (November 2025)
[18] Hualong Securities - Emotional Consumption + AI Resonance Report (December 2025)
[19] National Business Daily - A First for Female-Oriented Games! Love and Deepspace, Which Grossed US$650 Million Globally, Nominated for Gamescom Award (August 2025)

---

Report Generation Date: January 12, 2026
Data Sources: Jinling AI Brokerage API Data, Public Online Information