TOP TOY submits listing application to HKEX again: Its collectible toy model differs from Pop Mart, with attention on declining net profit and CEO's exorbitant compensation

On March 31, Big Collectible Toy International Group Limited (TOP TOY) submitted its main board listing application to the Hong Kong Stock Exchange, with JPMorgan and UBS Group acting as joint sponsors. This is another submission following the expiration of its previous application on September 26, 2025.

As a leading collectible toy brand incubated by Miniso Group, TOP TOY’s differences from Pop Mart, significant decline in net profit in 2025, and the exorbitant compensation of its 'post-90s' founder have become key areas of market focus.

The TOP TOY brand was launched in 2020, fully incubated by the Miniso Group. Initially operated by 'That's a Big Toy (Guangdong) Cultural Creativity Co., Ltd.', it is positioned as China’s largest and fastest-growing collectible toy aggregation brand.

With deep insights into collectible toy enthusiasts, TOP TOY has developed industry-leading, consumer-oriented product design and IP (creative content or brands with commercial value) operational capabilities. To date, TOP TOY has successfully built a multi-layered and continuously expanding IP matrix driven by original IPs, licensed IPs, and third-party IPs, as well as a collectible toy world composed of a diversified product portfolio.

According to the prospectus, in 2025, the company’s GMV (Gross Merchandise Volume) in mainland China reached 4.2 billion yuan, with a compound annual growth rate of over 50% from 2023 to 2025. As of the latest practicable date, it owns 24 original IPs, 42 licensed IPs, and more than 660 third-party IPs, operates 334 stores globally, has over 12 million registered members, and its products cover action figures, 3D assembly models, soft vinyl plush toys, and other categories.

In the same year that TOP TOY was born, 'China’s First Collectible Toy Stock' Pop Mart successfully listed on the Hong Kong Stock Exchange on December 11, 2020. Today, TOP TOY’s attempt at a Hong Kong IPO (Initial Public Offering) is also highly anticipated within the industry. However, when compared to Pop Mart's business model, TOP TOY exhibits very distinct differences.

Simply put, Pop Mart follows a 'small but refined' route of deeply exploring IP value, focusing on incubating original IPs to build a closed but high-value ecosystem, suitable for a development model pursuing high profit margins and long-term value. In contrast, TOP TOY follows a 'large and comprehensive' scale-effect route, integrating global IP resources through an open platform to build a broad but relatively low-margin ecosystem, geared toward rapid expansion and market share dominance.

Specifically, in terms of revenue data for 2025, TOP TOY's sales income from original IPs amounted to approximately 199 million yuan, accounting for only 5.7%; licensed IP sales revenue was 1.778 billion yuan, accounting for 51%; and third-party IP sales revenue was 1.511 billion yuan, accounting for 43.3%.

Following its establishment, TOP TOY experienced rapid growth. In 2023, TOP TOY's GMV exceeded 1 billion yuan for the first time. In 2024, TOP TOY launched its global strategy and gradually entered markets such as Thailand, Malaysia, Indonesia, and Japan.

In terms of annual revenue, the company's main business revenue increased from 1.461 billion yuan in 2023 to 3.587 billion yuan in 2025, with a compound annual growth rate of 56.7%. Regarding gross margin, the company also grew from 31.4% in 2023 to 32.1% in 2025.

However, it is worth noting that despite TOP TOY achieving revenue of 3.587 billion yuan in 2025, a year-on-year increase of 87.9%, the net profit for the same period was only 101 million yuan, a year-on-year decrease of 65.6% (294 million yuan in 2024).

The sharp decline in net profit is not due to operational issues. Reporters from the 'Everyday Economic News' observed that the main reasons are share-based compensation expenses settled with equity amounting to 237 million yuan and changes in the book value of redemption liabilities from preferred shares reaching 158 million yuan, totaling 395 million yuan. Therefore, the adjusted net profit for 2025 was 522 million yuan, an increase of 77.6% compared to 294 million yuan in 2024. This also indicates that TOP TOY's core operating profitability continues to grow.

In addition, the 'exorbitant compensation' of Sun Yuanwen, executive director and CEO of TOP TOY, has also drawn market attention.

According to the prospectus, Sun Yuanwen's total compensation for 2025 reached 112 million yuan, even surpassing the company’s net profit for the same period (101 million yuan).

Sun Yuanwen, a post-90s entrepreneur born in 1991 with a background in mechanical engineering, previously served as the operations director at Uniqlo and Miniso. In 2020, he led the creation of the TOP TOY brand and took full responsibility for the company's strategy and operations.

Financial reports show that out of Sun Yuanwen's 112 million yuan compensation for 2025, cash salary and bonuses amounted to approximately 2.06 million yuan, while the remaining approximately 110 million yuan consisted of non-cash incentives related to share payments, representing pre-IPO equity incentives reflected in accounting terms, rather than actual cash compensation. However, the scale of this compensation does not match the company’s net profit for the period, which has sparked market discussions on corporate governance.

The prospectus shows that the proceeds from TOP TOY's IPO will be allocated proportionally to various areas including enriching the IP portfolio, deepening global omni-channel presence, and brand building.

Firstly, the funds raised will be used to enrich the IP portfolio and enhance operations. Specifically, the aim is to extend licenses to ensure longer authorization for popular IPs, thereby guaranteeing continuous product innovation and marketing strategy stability. The company is committed to collaborating with more renowned IP characters globally to further expand its target consumer base and meet diverse consumer demands.

At the same time, the raised funds will also be used to strengthen the incubation and development of proprietary IPs as well as enhance the product research and design capabilities. Over the next four years, the company plans to recruit and absorb 5 to 15 internal design talents annually, expanding the internal creative team and building a stronger and more diverse pool of design talent.

In addition, the proceeds will also be utilized to deepen the global omnichannel presence, with plans to hire 200 to 250 employees per year over the next four years to expand the overseas local teams.

On April 8, reporters reached out via email to the co-company secretary of TOP TOY regarding several issues of investor concern, hoping that the company would provide detailed explanations on relevant matters: first, the specific reasons for the company’s revenue increase without profit growth in 2025; second, the conditions under which the company's CEO, with an annual compensation exceeding 100 million yuan, is entitled to receive related shares; third, if the company successfully goes public, how it plans to maintain its high revenue growth momentum in the future. As of the time of writing, TOP TOY has not yet responded to the above interview questions.

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