Bubble Mart released its interim results for 2023 on the evening of August 22, with earnings data showing that Bubble Mart achieved revenue 28 in the first half of the year..1.4 billion yuan (RMB, the same below), up 19.3%; adjusted net profit 5.3.5 billion yuan, up 42% from the same period last year.3%, of which net profit 4.7.7 billion yuan, more than the whole of last year。Adjusted profit margin for the period was 19%, up 3% year-on-year; and gross margin increased 2% year-on-year due to cost of sales control and total revenue growth..3 percentage points to 60.4%。

Surprisingly, Bubble Mart added 438 registered members to mainland China in the first half of this year.40,000, the total number of registered members broke 30 million, the core business indicators recovered rapidly.。In addition, the company disclosed for the first time the profit of its business outside of mainland China, with data showing that revenue from Hong Kong, Macao, Taiwan and overseas in the first half of the year was 3.7.6 billion yuan, an increase of nearly 139.8%。

          

Enrich personalized IP matrix multi-channel operation to open up the market "two channels"

              

Channel Marketing

With the younger generation's pursuit of personalization and fashion, the market is becoming more and more vigorous.。At the same time, the rise of social media also provides a broader publicity and promotion channel for the tide play brand。

In terms of offline channels, Bubble Matt's offline revenue in the Mainland was 14.5.1 billion yuan, up 32.4%; retail store revenue up 32% YoY.3% to 11.800 million yuan。

The growth benefited from the full return of the social economy to normal operation in the first half of 2023, the effectiveness of various macro policies, the further release of consumer demand, and the continued rise in the vitality of the domestic consumer market.。Moreover, Bubble Mart opened 19 more retail outlets in the Mainland to 340, and opened 120 new robot shops, increasing to 2,185.attract more passengers。

Chief Financial Officer Yang Jingbing said gross margin reached 60 in the first half of the year..The optimistic figure of 4% is mainly due to the increase in the proportion of higher-margin D2C channels, while the proportion of autonomous products is expected to remain above 90%.。

In terms of online channels, the Bubble Mart Box Drawer applet achieved 3 in the first half of 2023..7.3 billion yuan of revenue, Tmall flagship store revenue in the first half of 1..5.5 billion yuan。Shake sound platform revenue in the first half of 2023 is about 1.100 million yuan, up 569% year-on-year。

Bubble Mart said that in 2023, affected by the online environment, as well as the rapid development of content e-commerce platforms such as tremolo, the recovery of consumption in offline channels has diverted online consumption and impacted traditional e-commerce platforms.。

market and product

In terms of market size, China's tide play market size is growing rapidly.。2015-2022 China's tide play market expanded year by year, the scale of the industry from 6.3 billion yuan to 47.8 billion yuan.。

IP operation and creative design are the core forces of today's product market development, and the continuous enrichment of the IP matrix supports the continuous and rapid expansion of membership size.。

Bubble Matt uses its head IP to capture the recovery of offline passenger flow and the heating up of fan fever, achieving the continuous growth of core IP such as SKULLPANDA, MOLLY and DIMOO.。And, through the discovery and cooperation of outstanding artists, successfully cultivated many rookie IP, of which "Ono" to achieve revenue of 109.40,000 yuan, up 191% year-on-year.3%。

Bubble Mart's first city park will open in Beijing's Chaoyang Park in September, aiming to create an immersive IP experience。In addition, Bubble Matt also continues to cooperate with external copyright owners to launch a number of joint products, and its positioning of "trendy play art" has attracted the majority of consumer groups, satisfying the artistic expression of trendy play in the minds of consumers.。

With the continuous expansion of channels and the continuous enrichment of IP, the scale of Bubble Mart users has expanded rapidly, with 438 new registered members in Mainland China as of June 30, 2023..40 thousand people, the total number of members reached 3038.80,000 people。Percentage of sales contributed by members in the first half of 2023 92.2%, with a member repurchase rate of 44.5%。

              

Enter the overseas market, improve the tide play IP cross-border layout

                  

In recent years, Bubble Mart has taken Tide Play IP as its core, continuously expanding its business map, promoting its international layout and achieving group operations.。

Performance data show that Bubble Mart's overseas business continued its previous high growth, with revenue from Hong Kong, Macao, Taiwan and overseas in the first half of 2023 3.7.6 billion yuan, a year-on-year growth rate of 139.8%; operating profit in the first half of the year was RMB78.89 million, up 183% YoY.。During the reporting period, Bubble Mart's Hong Kong, Macao, Taiwan and overseas stores reached 55 (including joint ventures), robot stores reached 143 (including joint ventures and franchises), and the number of cross-border e-commerce platform sites reached 28.。

In the first half of the year, the company opened its first offline stores in France and Malaysia.。Overseas business president Wen Deyi said that the second half of the year will expand to more overseas cities, in September will open its first store in Thailand, and will hold a trend toy show in Singapore, in addition to Vietnam, the Philippines and Indonesia new stores are in preparation, I believe the Southeast Asian market will bring new impetus to international business.。

Recently, Bubble Matt also announced the establishment of a joint venture with Minor International, one of the world's largest hotel, restaurant and retail groups, to jointly explore the Thai market, and the two sides will make full use of their respective resources to jointly promote the development of trendy play culture in Thailand, and gradually enrich the business framework around its IP.。

Chairman Wang Ning said: "The overseas business is expected to continue to grow in 2023, with revenue of up to 1 billion yuan, and the target is that next year the overseas business can exceed the revenue of the entire group in 2019 before the IPO, which is equivalent to recreating a bubble Matt overseas.。"

             

Future outlook

              

According to industry insiders, Bubble Matt will continue to grow in 2022 due to external factors such as epidemics and competition.。Now, against the backdrop of a consumer recovery, the company says it will continue to expand its channel network and promote a trendy play culture in various ways.。

Executive Director and Chief Operating Officer Sid said growth was slower in the first quarter of this year due to last year's high base, but growth has rebounded to more than 40% in the second quarter。Considering the second half of the year as the traditional peak season, we expect further growth in the second half of the year and are confident of reaching our full-year target.。

In the future, Bubble Mart will continue to focus on IP as the core of its business, continuously enhance its brand value, and maintain a strong market position and competitiveness.。In terms of overseas business, we will continue to promote the overseas D2C strategy, increase market share and maintain rapid growth in performance.。