Top Toy files for Hong Kong IPO as it races to create its own hit IP

by LI Ye

Top Toy, a designer-toy brand backed by Miniso, has filed for a Hong Kong IPO as it looks to replicate the success of Pop Mart's Labubu and develop a breakout character of its own. The craze was evident in Shanghai, where a Chiikawa-themed flagship store opened on Nanjing Road to long queues despite requiring reservations.

Founded in 2020 by SUN Yuanwen, Top Toy has expanded from its first store in Guangzhou to 299 outlets, including 15 overseas stores in Thailand, Malaysia, Indonesia and Japan. In March, the company announced a 10 billion yuan (about US$1.4 billion) global expansion plan.

According to its prospectus, Top Toy's revenue more than doubled in two years, climbing from 679 million yuan (about US$96 million) in 2022 to 1.91 billion yuan in 2024. Profit swung to 294 million yuan from a 38-million-yuan loss over the same period.

In the first half of 2025, Top Toy's revenue rose 58.5% to 1.36 billion yuan (US$191 million), while profit climbed 26.8% to 180 million yuan. Rival Pop Mart reported 13.9 billion yuan in revenue, up 204% year on year, and net profit of 4.7 billion yuan, a 363% increase — underscoring the scale gap.

Top Toy still derives up to 80% of its revenue from distributors and franchisees, while self-operated outlets contributed 12.4% and online sales 8.5% in the first half of 2025.

The company sells across all major collectible categories — from blind boxes and plush toys to figurines and building blocks — but relies heavily on tie-ups with international IPs. Self-developed lines, often created by redesigning licensed characters, generate nearly half of sales. Top Toy says it owns 17 original IPs and licenses 43 others, though few match the fan loyalty of Pop Mart's homegrown hits.

"Ultimately, it's the design that matters," said a toy industry executive, noting that richer character molds require higher investment in tooling and factory capabilities. Smaller players often struggle to match the scale and precision.

Top Toy says it operates independently, though Miniso still owns 86.9%. The prospectus shows the Miniso network accounted for 36%–54% of its revenue in recent years. Miniso said the unit will stay a subsidiary after the planned spin-off, with offering terms still undecided. Top Toy cites its global network and shareholder support as key strengths.

Analysts say that while partnerships and scale give Top Toy an edge in supply chain and costs, its critical test will be creating an iconic, original character IP to anchor the brand. Without that, reliance on widely available licensed IPs may limit consumer loyalty.