Duan Yongping Becomes Pop Mart’s Second-Largest Shareholder

Renowned Chinese value investor Duan Yongping has become the second-largest shareholder of Pop Mart International Group (HK: 9992), after acquiring a 5.69% stake worth approximately HKD 11.8 billion (USD 1.5 billion). The disclosure, filed with the Hong Kong Stock Exchange on May 27, reveals that Duan and his wholly-owned investment company H&H International Investment, LLC collectively hold 76,371,600 shares in the Chinese toy and collectibles giant.

A Dramatic Reversal

Duan’s investment marks a striking turnaround from his earlier skepticism. In 2025, the founder of BBK Electronics publicly questioned Pop Mart’s long-term viability, comparing its business to “electronic pets” and “hula hoops” — fads with questionable sustainability, according to 36Kr. He stated he “didn’t understand” the business and would not invest.

The turning point came in March 2026, when Pop Mart released its 2025 annual results showing revenue of RMB 371.2 billion, up 184.7% year-over-year, and net profit of RMB 130.1 billion, a 293.3% increase. Despite the strong results, the stock fell over 20%, creating what Duan saw as a buying opportunity.

“Pop Mart’s earnings sparked my curiosity — I spent days understanding the business. It’s been a long time since I felt this excited,” Duan said on social media, as reported by Edgen.tech.

Building the Position

Duan began accumulating shares in April through put option sales, which he described as opening a “Pop Mart insurance company.” By May 7, he confirmed on the investor platform Xueqiu that he had swapped all his holdings in China Shenhua Energy for Pop Mart shares, even changing his profile picture to LABUBU, Pop Mart’s most popular intellectual property character.

The final purchase occurred on May 25, when Duan and H&H International each bought 9,823,200 shares at an average price of approximately HKD 150 per share, crossing the 5% threshold that triggered mandatory disclosure, as reported by The Paper.

Why Pop Mart?

Duan’s investment thesis centers on what he calls “speed x time” — investing in future total volume rather than static present value. He identified five competitive advantages: user attention, brand recognition, exclusive artist contracts, a global store network, and founder and CEO Wang Ning’s leadership.

Duan has drawn comparisons between Wang Ning and Apple co-founder Steve Jobs, stating that Wang “understands his products and pursues them at the same level as Jobs — at least he will in the future.” He later clarified that while Jobs had unmatched product vision, Wang may have an even stronger grasp of business strategy, according to Sina Finance.

“Pop Mart’s moat is far stronger than people imagine,” Duan wrote.

Financial Trajectory and Global Expansion

Pop Mart has transformed from a “blind box” toy company into a comprehensive IP-driven entertainment platform. Its 2025 financial results tell a remarkable story of growth:

• Revenue: RMB 371.2 billion (+184.7% YoY)
• Net Profit: RMB 130.1 billion (+293.3% YoY)
• Overseas Revenue: RMB 162.7 billion (44% of total)
• Americas Revenue: RMB 68.1 billion (+748.4% YoY)

The company’s Q1 2026 results continued this momentum, with overall revenue growth of 75-80% year-over-year and Chinese online channels surging 150-155%.

Perhaps most notably, plush toys have overtaken blind boxes as Pop Mart’s largest product category, generating RMB 187.1 billion in 2025 revenue — a 560.6% increase. This shift reflects the company’s evolution from collectible scarcity to what industry observers describe as “emotional consumer goods” centered on companionship.

Market Implications

Duan’s entry as a major shareholder carries significant weight in Chinese markets. As one of the country’s most closely watched investors — often called “China’s Warren Buffett” — his endorsement signals confidence in Pop Mart’s business model at a time when the stock had fallen approximately 50% from its August 2025 highs.

The investment also highlights a broader trend: Pop Mart’s transition from a China consumer story to a global IP platform. With overseas revenue approaching half of total sales and growing at triple-digit rates in key regions, the company is increasingly competing on a global stage.

What’s Next

Investors will watch for further HK Exchange filings to see whether Duan increases his stake. His 5.69% position may represent only the beginning of his commitment to the company. Meanwhile, Pop Mart faces the challenge of sustaining its extraordinary growth trajectory, with CEO Wang Ning describing 2026 as a year to “enter the repair station, refuel and change tires” after a period of ultra-high-speed development.

The coming quarters will test whether Duan’s conviction — and Pop Mart’s growth story — can withstand the scrutiny that comes with being one of China’s most debated consumer stocks.