The appointment of LVMH Greater China President Wu Yue as a non-executive director by POP MART (09992.HK) has failed to excite investors, despite the high-profile move signaling a potential infusion of luxury expertise into the trendy toy sector.
On December 10, POP MART announced Wu Yue’s three-year term as a non-executive director, replacing He Yu, managing partner of Black Ant Capital, who resigned due to work commitments. Wu will receive an annual compensation package of HKD 1.2 million in fixed cash and HKD 1.8 million in equity-based pay, totaling HKD 3 million—a figure that has drawn market scrutiny.
However, investor response has been tepid. On December 11, POP MART’s shares edged up just 1.58%, followed by a 0.36% rise on December 12, closing around HKD 190. The stock remains down over 40% from its August peak, with market capitalization shedding more than HKD 250 billion, starkly contrasting the enthusiasm around Wu’s appointment.
Wu Yue, 69, is a veteran in China’s luxury industry. Joining LVMH in 1993 as its first Chinese executive, he built Dior’s perfume and cosmetics business in China and later spearheaded the expansion of over 70 luxury brands in the region as LVMH’s Greater China president. POP MART’s collaboration with LVMH was foreshadowed in October, when MOYNAT—a brand under LVMH—launched a sold-out co-branded bag series with POP MART’s Labubu designer, Long Jiasheng.
POP MART founder Wang Ning has previously expressed interest in adopting luxury-brand strategies to enhance scarcity and premium pricing. Yet, investors remain wary amid operational challenges. Deutsche Bank research highlights that overproduction of POP MART’s core IP, Labubu—from 10 million units in early 2025 to 50 million by year-end—has eroded its exclusivity. Secondary market prices have plunged, with limited-edition premiums down over 50% from peaks, while some standard models now trade below retail prices.
The HKD 3 million compensation has also sparked debate. It surpasses the combined HKD 1.37 million paid to POP MART’s three independent non-executive directors and even exceeds some executive directors’ pay, despite Wu’s non-involvement in daily operations. Globally, U.S.-listed firms typically pay independent directors $30K–$150K in cash and $50K–$250K in equity, placing Wu’s package at the high end.
Analysts are divided. Morgan Stanley views Wu’s appointment as validation of POP MART’s IP appeal in fashion, citing his brand and global channel expertise as long-term positives. Conversely, Deutsche Bank downgraded the stock to "hold," noting the company must pivot from reliance on a single hit IP—a transition unlikely to happen quickly.
The reshuffle coincides with a key investor’s exit. HKEX filings show He Yu sold his 2.08 million shares at HKD 32.32 apiece in April 2024, missing a subsequent 489% rally—a move some interpret as skepticism about POP MART’s mid-to-long-term prospects.
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