Pop Mart Americas recently sued a group of 7-Eleven stores in California for selling counterfeit Labubus. Zhang said more companies may face lawsuits from Pop Mart over Lafufus, but counterfeits might also decrease as Pop Mart ramps up its production.

The Chinese toymaker Pop Mart is capitalizing on the runaway success of its ugly-cute Labubu dolls as it nears a $4 billion profit.

The grinning plush elves drove record revenue for the Chinese retailer in the first half of the year, and soon fans will have something new to lust after.