MINISO’s Designer Toy Unit TOP TOY Files for Hong Kong IPO
MINISO Group Holding Ltd.’s designer toy unit, TOP TOY, has filed for an initial public offering in Hong Kong, seeking to capitalize on its rapid growth and a booming market for collectibles as it accelerates a global expansion.
The proposed listing on the Hong Kong Stock Exchange’s main board, submitted on Sept. 26, marks a key step in the "dual-brand strategy" of MINISO founder Ye Guofu. If successful, TOP TOY would become the second publicly traded company in his retail empire, following MINISO’s dual listing in New York and Hong Kong. The move signals continued investor interest in the designer toy sector, following a similar IPO filing in June by rival 52TOYS.
TOP TOY has seen explosive growth, with revenue in the first half of 2025 surging 58.5% year-on-year to RMB 1.36 billion yuan (US$189 million), according to its preliminary prospectus. The company, which achieved profitability in 2023, reported a net profit of RMB 180 million for the first six months of the year, up from RMB 142 million in the same period of 2024.
The IPO, co-sponsored by J.P. Morgan, UBS Group AG and CITIC Securities Co., is intended to fund an expansion of TOP TOY’s IP portfolio and global store network. The spinoff would position the brand for a more direct confrontation with market leader Pop Mart International Group in the fast-growing Chinese designer toy market.
Rapid Financial Ascent
TOP TOY’s financial performance underscores its aggressive expansion since its founding in late 2020. The company’s revenue posted a compound annual growth rate of 67.7% from 2022 to 2024, climbing from RMB 679 million to RMB 1.91 billion.
Its profitability has also improved significantly. After turning profitable in 2023 with a net income of RMB 212 million, its full-year profit grew to RMB 294 million in 2024. Gross margins have stabilized, standing at 32.4% in the first half of 2025, compared to 32.7% for the full year 2024 and up from just 19.9% in 2022. According to Frost & Sullivan data cited in the prospectus, TOP TOY was the fastest-growing designer toy collection brand in China from 2022 to 2024.
The 'Platform' Strategy
TOP TOY distinguishes itself from competitors with a business model focused on being a "global designer toy collection store." Unlike Pop Mart, which has built a "closed-loop" ecosystem centered on its own intellectual property, TOP TOY operates an open platform model that combines licensed IPs, third-party brands and a growing portfolio of in-house creations.
This "Android system" approach, as it's been described, leverages the extensive supply chain and retail network of its parent, MINISO Group Holding, to rapidly scale and offer a wide variety of products at accessible price points. Its core customers are 18-to-30-year-old women, with an average transaction value of approximately RMB 56 and a repurchase rate of 38%.
"The two companies are stepping into different rivers," said Sun Yuanwen, TOP TOY's founder and CEO. "Pop Mart is focused on proprietary IP, while TOP TOY has chosen the path of secondary creation of major IPs."
Building an IP Powerhouse
At the core of TOP TOY's strategy is a dual-driver IP model. The company has secured rights to 43 licensed IPs, including globally recognized names like Disney, Sanrio, Gundam and Honor of Kings. These popular IPs, which account for 50% of the portfolio, help lower customer acquisition costs.
Simultaneously, the company is cultivating its own universe of 17 proprietary IPs, such as "Twinkle," "Tammy" and "Daomubiji," which deliver a significantly higher gross margin of 65%. Products that are "self-developed"—designed in-house based on either proprietary or licensed IPs—now account for nearly 50% of revenue, the highest proportion among China’s designer toy collection brands, according to Frost & Sullivan.
Aggressive Store and Global Expansion
TOP TOY has pursued an aggressive physical retail expansion. As of Sept. 19, 2025, the brand operated 299 stores, a significant increase from 148 at the beginning of 2024. Its network already includes 15 overseas locations in markets such as Thailand, Malaysia, Indonesia and Japan.
The global push has included opening its first overseas standalone store in Bangkok in October 2024 and launching a global flagship store on Shanghai’s Nanjing Road in March 2025. This physical footprint is complemented by a growing online presence, with digital sales channels like Tmall and Douyin contributing 8.8% of revenue in the first half of 2025, up from less than 5% in 2024. The company has also built a substantial customer base, with over 10 million registered members as of June 30.