TOP TOY shocks Hong Kong stock IPO, with Temasek as a shareholder, the largest and fastest-growing trendy toy collection brand in China

According to the Hong Kong Stock Exchange disclosure on March 31, Dazhaowan International Group Limited(TOP TOY) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Morgan Stanley and UBS Group acting as joint sponsors, and CITIC Securities serving as the overall coordinator.

Comprehensive | Prospectus  Editor | Arti

This article is for informational exchange only and does not constitute any trading advice

According to the prospectus, TOP TOY is the largest and fastest-growing collection brand of trendy toys in China.

By 2025, the company is expected to achieve a GMV of RMB 4.2 billion in Mainland China, with over 55% of revenue coming from self-developed products, the highest among Chinese collection brands according to Frost & Sullivan. From 2023 to 2025, the company’s GMV is projected to grow at a compound annual growth rate of over 50%, making it the fastest-growing collection brand in China, according to Frost & Sullivan.

Since opening its first store in December 2020, TOP TOY has established an integrated platform covering the entire trendy toy industry chain. With deep insights into trendy toy enthusiasts, the company has developed industry-leading, consumer-oriented product design and IP operation capabilities.

The company has successfully built a multi-layered and continuously expanding IP matrix driven by proprietary IP, licensed IP, and third-party IP, as well as a trendy toy universe composed of a diversified product matrix. Its product range includes figurines, 3D assembly models, and soft vinyl plush toys, enabling the company to meet the diverse needs of trendy toy consumers and continuously expand its customer base.

Centered on maximizing IP value, TOP TOY has built an integrated platform covering all key segments of the industry value chain, forming a competitive advantage.

Through a diversified IP strategy, the company has created a rich and high-quality IP resource pool, establishing a multi-layered and continuously expanding IP matrix that includes proprietary IP, licensed IP, and third-party IP. By continuously launching proprietary IP and collaborating with well-known licensors such as Sanrio, Disney, and Crayon Shin-chan, TOP TOY ensures its product portfolio remains highly attractive and responsive to market trends, allowing the company to quickly and flexibly meet the diverse needs of all consumer groups.

The company has established extensive omnichannel consumer outreach. Its offline store network serves as the primary venue for direct interaction with consumers, providing immersive experiences and strong brand exposure. This enables the company to collect real-time feedback, informing product design and channel selection strategies.

In addition to its self-operated Tmall flagship store and mini-program, the company’s products are also sold through other major Chinese e-commerce platforms, emerging content e-commerce platforms, Sam’s Club, Don Don Donki, and other large retailers and diverse sales channels. The company has also entered emerging overseas markets through flexible business models.

According to Frost & Sullivan, TOP TOY is one of the few brands in the industry that achieves full coverage of the trendy toy industry chain—from IP incubation and operation to direct consumer interaction—and holds a leading position across the entire industry chain. As an integrated platform for the entire trendy toy industry chain, the company has built a robust ecosystem of partners, creating a virtuous cycle that drives IP value maximization and promotes the development of trendy toy culture.

The term “trendy toy” is an industry term referring to toys with high collectible value, characterized by the following five features: (1) high added value achieved through unique design and IP-driven secondary creation; (2) high emphasis on material selection, trendy color matching, and artistic design innovation; (3) a blend of appreciation and playfulness; (4) active adaptation to rapidly changing trends; and (5) primarily distributed through specialty trendy toy channels.

The Chinese trendy toy market is experiencing rapid growth. According to Frost & Sullivan, the market size increased from RMB 24.9 billion in 2020 to RMB 87.5 billion in 2025, with a CAGR of 28.6%, and is expected to grow from RMB 126.4 billion in 2026 to RMB 331 billion in 2030, at a CAGR of 27.2%.

Looking ahead, trendy toys are expected to diversify further, with richer product categories and more varied consumer experiences, providing highly immersive and scene-based interactive experiences.

TOP TOY’s IP portfolio relies on developing proprietary IP and attracting collaborations with well-known IPs. As of the last practicable date, the company owns 24 proprietary IPs and 42 licensed IPs.

The core of the company’s products is self-developed, created through active participation in the design process, based on proprietary IP and licensed collaborations with well-known IP owners. Additionally, the company directly sources products through supplier agreements to diversify its offerings. These products are sold directly or co-created with suppliers holding relevant IP licenses.

TOP TOY continuously enriches its proprietary IP portfolio through acquisitions and internal incubation of designer IPs such as Nini Mo, FoFo, and Mochi. The number of proprietary IPs increased from 21 as of December 31, 2025, to 24 as of the last practicable date. The company is also accelerating overseas expansion to strengthen its global brand influence. From December 31, 2025, to the last practicable date, the number of overseas stores increased by nine.

Financially, TOP TOY’s revenue grew from RMB 1.46B in 2023 to RMB 3.59B in 2025, with a CAGR of 56.7%.

The company primarily generates revenue through direct-operated stores, TOP TOY partner stores, offline distributors, and online channels. Other income mainly includes licensing fees from TOP TOY partners, sales-based franchise royalties, and sales-based management and consulting service fees.

The gross profit margin increased from 31.4% in 2023 to 32.1% in 2025. Revenue contribution from self-developed products accounted for 53.6% of total trendy toy sales in 2023, rising to 56.7% in 2025.

Net profit rose from RMB 212 million in 2023 to RMB 294 million in 2024, then decreased to RMB 101 million in 2025.

The prospectus shows that TOP TOY’s shareholders include Miniso, Temasek, Raffles Capital, and Xie Guohua, Chairman of Lingdong Innovation.

The funds raised from this Hong Kong IPO will be used to further enrich the company’s diversified IP matrix and enhance IP operation capabilities; deepen global omnichannel deployment; invest in brand building, consumer engagement, and marketing; strengthen supply chain capabilities and digitalization across the entire process; and for working capital and general corporate purposes.

Author’s statement: Content quoted from external media