Bubble Mart's Investment Business

In the past two years, Bubble Mart has been expanding its investment business, from Chinese costume, beauty, animation and secondary yuan e-commerce, to establishing investment companies.

Since 2021, Bubble Mart has been investing more frequently, and in April, Bubble Mart invested over 100 million RMB in the Series A round of funding for the Chinese clothing brand "XIII Yu". In the same month, Bubble Mart invested tens of millions of RMB in Solestage, a trendy brand buying store.

In May, Bubble Mart invested exclusively in "Cat Star System", a vertical e-commerce platform around the secondary yuan, with tens of millions of Pre-B rounds, and in August, Bubble Mart invested in a trading company. Ltd. on August 11, business changes, the new shareholder Beijing Bubble Mart Cultural and Creative Co. The company was established in 2021, the scope of business contains: clothing and apparel retail; daily necessities sales; arts and crafts and ceremonial supplies sales; Internet sales, etc..

In addition, Bubble Mart has also entered the content production field, investing in "Two Points Ten" as its third largest shareholder and participating in the production of animated films such as "New Gods: The Rebirth of Nezha" and "The Rise of the Green Snake"; and establishing an art promotion organization to hold IP-related exhibitions.

In 2020, when Bubble Mart goes public in Hong Kong, the net proceeds will be approximately HK$5,782 million (approximately RMB 4,866 million), and Bubble Mart plans to spend 27% (approximately RMB 1,268 million) on potential investments in mergers and acquisitions as well as building strategic alliances.

In the first half of 2022, Bubble Mart reported revenue of RMB2.359 billion, an increase of 33.1% year-on-year, and earnings of RMB333 million, a decrease of 7.2% year-on-year. on the IP side, Bubble Mart's SKULLPANDA, MOLLY and DIMOO achieved revenue of RMB462 million, RMB404 million and RMB298 million respectively in the first half of 2022, representing year-on-year growth of 152.3%, 98.3% and 45.6%. This also shows us that Bubble Mart also understands that the "blind box" business is not the ultimate goal, and it has repeatedly stressed in its earnings report and public occasions that "IP" is the core of the group.

For Bubble Mart in the whole industry chain layout, in the industry commentator Zhang Shule, the whole industry chain to go blind box, and through the joint some artists to hold IP theme art exhibition and other means, are trying to constitute the trend of culture, the direction is correct, the capital involved in the relevant industries is also sufficient.

"But the biggest problem is that its IP is too thin, lack of system and story, as a trendy toy may be able to support, but up to the culture is lack of meaning, less sentiment of precipitation." Zhang Shule said to.

In addition, since this year, Bubble Mart has also invested in collectible toy brand Underverse and card trend culture brand Hitcard, which seems to be a return to the main business.