Shares of Chinese collectible toy maker Pop Mart International Holdings fell 22% following the release of its annual earnings report, despite the company posting strong financial performance.

Pop Mart, known for creating the popular Labubu character collectibles, reported significant growth in its latest annual results. The company's profit quadrupled while revenue nearly tripled compared to the previous year, demonstrating robust demand for its designer toy products.

The sharp decline in share price occurred amid investor skepticism about the company's ability to sustain growth beyond its current flagship product line. Market concerns appear focused on whether Pop Mart can successfully diversify its portfolio and replicate the success of Labubu with new character franchises.

Pop Mart operates in the "blind box" collectible toy market, where consumers purchase sealed packages without knowing which specific figure they will receive. The company has built a substantial following, particularly among young adults in China and other Asian markets.

The disconnect between strong earnings performance and negative market reaction highlights investor uncertainty about the sustainability of the collectible toy trend and Pop Mart's long-term growth prospects in an increasingly competitive entertainment merchandise market.