Chinese toy giant Pop Mart International has posted impressive half-year results, driven by the global craze for its cult Labubu dolls.

The Beijing-based company reported revenue of 13.88 billion yuan (A$2.9bn) for the first six months of 2025, up 204% year-on-year. Net profit surged 397% to 4.57 billion yuan (A$960m), far exceeding analyst forecasts.

The numbers highlight the extraordinary power of Labubu, a quirky, elf-like plush character created by Hong Kong artist Kasing Lung.

The toy has become a pop culture phenomenon, boosted by celebrity endorsements and Pop Mart’s signature “blind box” packaging strategy, which encourages repeat purchases from collectors eager to complete sets.

Overseas markets were the standout, with sales climbing more than fivefold to 5.59 billion yuan.

The Labubu mania has reached Australian shores. As ChannelNews reported yesterday, Big W is raking in millions from local sales of the $84 dolls, with demand so intense that counterfeits are now flooding online marketplaces.

Pop Mart founder and CEO Wang Ning said international demand has grown “much faster than expected” and predicted foreign sales could soon overtake China.

Pop Mart recently opened a flagship megastore in Bangkok and plans another 100 stores outside the mainland this year, with North America and Southeast Asia key priorities.

The Labubu boom has also sparked a booming resale market, with rare editions fetching thousands of dollars at auction. But analysts warn the frenzy may not be sustainable.

Second-hand prices in China have already softened from record highs. Pop Mart will need to build up other intellectual property such as Molly, Skullpanda and Dimoo to maintain momentum.

Despite those concerns, investors are betting big.

Pop Mart’s Hong Kong-listed shares have gained more than 200% this year, making the company one of the world’s most valuable toy makers – larger in market value than both Hasbro and Mattel combined.

For Pop Mart, the challenge will be proving Labubu is more than a passing fad.