Pop Mart International Group Ltd. and Laopu Gold Co. are expected to achieve triple-digit growth, positioning them as leaders in China's retail sector, which is currently characterized by weak domestic consumption.
The initial frenzy for Labubu dolls and the hype surrounding ancient-style gold jewelry, previously fueled by online influencers, has cooled, leading to questions about the sustainability of such rapid expansion.
Pop Mart is shifting its focus to new toy characters such as Twinkle Twinkle and Skullpanda. Laopu Gold remains well-positioned for 2026, as spending on gold jewelry in China is anticipated to outpace overall consumption growth again.
This resilience contrasts sharply with the broader consumer sector, with earnings reports coming at a time when China's consumer spending has had its weakest start to a year since the pandemic.
Major companies including Haidilao International Holding Ltd. and Anta Sports Products Ltd. likely experienced weaker earnings last year. Meituan continues to face challenges from intense competition in food delivery, while Xiaomi Corp. contends with high memory costs that are eroding smartphone profit margins.
In the energy sector, China Petroleum & Chemical Corp. (Sinopec) and Cnooc Ltd. now face uncertainties as conflict in the Middle East drives oil prices higher.
Key Highlights to Watch:
Sunday: Sinopec is among Chinese refiners instructed to suspend diesel and gasoline exports due to disruptions in crude oil shipments caused by the escalating Middle East conflict. A government-approved restructuring of the company is expected to strengthen its refining and marketing operations for jet fuel and sustainable aviation fuel.
Monday: Laopu Gold forecasted a more than 200% increase in full-year revenue and profit, attributing its strong performance to market leadership and store expansion. Rising gold prices have led to routine price increases, prompting consumer demand. Growth is expected to continue this year as newly opened and upgraded stores contribute to sales.
Tuesday: Xiaomi is anticipated to report quarterly revenue growth slowing to single digits, its weakest pace since 2023. The CEO cited severe chip shortages driven by surging AI demand, which pressured the smartphone business over the past year. Electric vehicles are projected to be a bright spot, with sequential revenue growth exceeding 30% on record deliveries.
Attention will be on Haidilao's growth plans following the founder's return as CEO in January. Core strategies focusing on brand consolidation and technology-driven efficiency are expected to remain unchanged.
Wednesday: Pop Mart is set to report its strongest earnings on record, with operating income expected to more than quadruple year-over-year. Global total sales across all intellectual properties and product categories exceeded 400 million units last year, with The Monsters series, including Labubu, accounting for over 100 million units.
Anta Sports may begin recognizing losses in the second half related to its stake in Puma SE, after the German sportswear maker projected an operating loss for 2026. Efforts to rebuild the brand in the running category could further pressure margins.
Thursday: Meituan likely continued to report quarterly losses due to fierce competition in food delivery. The company plans to integrate more AI technologies and remains committed to its investments in Brazil, albeit with a more cautious approach.
CNOOC's annual profit is expected to decline due to lower crude prices. China's green energy transition should support growth in natural gas production. Market focus will be on the impact of Middle East conflict and the halt on diesel and gasoline exports.
Innovent Biologics is poised for its first annual profit after receiving domestic approval for the weight-loss drug mazdutide, establishing it as a leading local competitor to global firms Eli Lilly and Novo Nordisk.
Friday: BYD's fourth-quarter profit is projected to fall by about a third due to reduced vehicle shipments amid intense competition. Further earnings pressure is expected in the first quarter as sales decline into 2026. Overseas sales are gaining importance, with exports showing strong momentum in the first two months of the year.