Bubble Mart 2021 financial report: adjusted net profit of 1.002 billion yuan, the number of registered members hit a record high

Source: Financial Sector News

On March 28, the domestic tide play head company Bubble Mart (stock code: 9992. HK) announced its full year 2021 results.

In the past year, on the basis of actively cooperating with local epidemic prevention and control policies, the company has steadily promoted the development of various businesses and handed over a bright financial report for investors. According to the company's financial report, in 2021, Bubble Mart achieved revenue (unit RMB, the same below) of 4.49 billion yuan, an increase of 78.7% year-on-year; adjusted net profit of 1.002 billion yuan, an increase of 69.6% year-on-year. The number of registered members reached 19.58 million, and the number of new registered members reached a record high of 12.18 million.

Judging from the performance of this financial report, Bubble Mart already has the strategic advantage of "extensive grain accumulation and high wall", and the effective management of the entire IP operation cycle by the company team has built a strong moat, making it difficult for competitors to surpass in the short term.

(1) Deeply cultivate the tide play industry and implement long-term doctrine

The strategic focus of Bubble Mart is to further deepen the toy business, continue to implement the long-term established strategy and development direction, and still take artist discovery, IP operation, consumer reach and trendy toy culture promotion as the main business focus.

At present, Bubble Mart is the only listed company in the industry that covers the entire industry chain of trendy toys. With the continuous expansion of the company's IP influence, the diversified product matrix it has built is bringing long-term growth space to the company.

IP is the core competitiveness of Bubble Mart.

During the reporting period, the proportion of Bubble Mart's own IP revenue hit a new high, the existing head IP revenue distribution was more balanced, and it maintained its vitality to contribute revenue, while the new IP showed a strong momentum of development.

Bubble Mart's own products are the company's main commodity types, mainly divided into its own IP, exclusive IP and non-exclusive IP, of which the revenue of its own IP accounted for 57.6% during the reporting period, reaching a record high.

2021 is the fifteenth anniversary of MOLLY, and the fifteen-year-old MOLLY still maintains its vigorous vitality through continuous launch of new products, cross-border joint cooperation, theme exhibitions and other operations. In 2021, MOLLY achieved revenue of 705 million yuan, an increase of 97.6% year-on-year. In addition, DIMOO and SKULLPANDA achieved revenue of $567 million and $595 million in 2021, respectively, an increase of 79.8% and 1423.8% year-on-year, respectively.

Since 2021, the company has focused more on the IP research and development of PDC (Pop Design Center), that is, its own designers, and enjoys full intellectual property rights for this part of the IP company, including the development and sale of trendy toys and the right to license additional monetization opportunities, with higher profit margins.

The financial report shows that PDC has also achieved good results, launching a number of popular IP. For example, small sweet beans and new IP Ono (HIRONO) listed in October 2021, small sweet beans achieved revenue of more than 162 million yuan in 2021, an increase of 458.1% year-on-year. Ono's single series earned 52.2 million yuan.

Since June 2021, the company has officially launched the MEGA Collection series of high-end tide play product line, and 1000% SPACE MOLLY × SpongeBob SquarePants have been launched. In the same month, bubble Mart MEGA Collection launched a new 400% SPACE MOLLY × SpongeBob SquarePants.

The launch of the Mega series fills the gap in bubble mart's medium and large ornament line, and also shows that the company has achieved a leading position in the domestic art collection toy track. According to the financial report, the MEGA series products quickly detonated the market as soon as they were launched, and the 9 1000% SPACE MOLLY series products released during the year attracted a total of more than 8.7 million people to participate in the lottery.

(2) Use industry to help economic development and promote trend culture

Since its listing in 2019, Bubble Mart has been committed to improving the visibility and monetization ability of its own IP and promoting the development of the entire trend industry in China.

According to a third-party company Frost & Sullivan Report, Bubble Mart is the most popular trendy toy brand in China. Bubble Mart not only covers the entire industry chain of trendy toys, but also brings you continuous happiness and beautiful experience by stimulating users' enthusiasm for trend culture.

In 2021, while helping economic development with industry, Bubble Mart will continue to promote trend culture, which will make the company's commercialization ability continue to increase and its industry position increasingly consolidated.

To this end, Bubble Mart set up an art promotion agency, Inner Flow, in 2021. This institution aims to jointly create high-end art derivatives with galleries and artists around the world, develop collectible art derivatives such as prints, sculptures, trendy toys, and living homes, and provide richer and more trendy artworks for young people.

In July 2021, Bubble Mart and Peking University Guanghua School of Management jointly established the Business and Art Research Center of Peking University, in order to cultivate outstanding talents in cultural and creative industries, promote research in the fields of Chinese trend culture and new consumption, and promote industry exchanges.

At the same time, Bubble Mart has always been committed to accelerating the spread of Chinese trend culture overseas. As a global trend play brand, in October 2021, Bubble Mart appeared at Expo Dubai to show the art of tide play to the world as a "Licensed Supplier of Souvenir Shops in china pavilion of Expo 2020 Dubai". In the same month, Bubble Mart participated in the MCM Comic-Con in London, and the mega treasures, SKULLPANDA Jungle Castle and other trendy play series on display attracted the attention of a large number of European fans. In November, Bubble Mart appeared at the DesignErCon Trend Art Exhibition in the United States, exhibiting IP images created by local Chinese designers such as DIMO, SKULLPANDA, Yuki, and Hirono.

In December 2021, Bubble Mart also cooperated with the China Foundation for Poverty Alleviation to establish the "POP MART Public Welfare Aesthetic Education Center" to provide aesthetic education venues and curriculum training support for teachers and students in schools in some areas, and help the development of aesthetic education in rural schools.