Helens International Holdings Company Limited Issues Positive Profit Alert for FY2025

Major Turnaround Expected Despite Revenue Decline: Key Details for Shareholders

Helens International Holdings Company Limited (HKEX: 9869; SGX: HLS) released a positive profit alert for the year ended December 31, 2025. The announcement, made in accordance with the Hong Kong Stock Exchange Listing Rules and the Inside Information Provisions of the Securities and Futures Ordinance, contains several important updates for shareholders and potential investors.

Key Highlights of the Report

• Revenue Forecast: The Group expects its revenue for FY2025 to range between RMB 0.520 billion and RMB 0.570 billion. This is a significant decrease compared to RMB 0.752 billion recorded in FY2024. The decline is attributed to:
  • Reduction in the number of self-operated bars in operation during 2025 versus the full year 2024
  • Drop in same-store performance due to ongoing market fluctuations
• Return to Profitability: Despite lower revenues, the Group projects a return to profitability for FY2025, with net profit attributable to owners estimated between RMB 0.015 billion and RMB 0.045 billion. This marks a strong turnaround from the net loss of RMB 0.078 billion reported for FY2024.
• Adjusted Net Profit (Non-HKFRS): The adjusted net profit (excluding non-operational and non-recurring items) is forecasted to be in the range of RMB 0.065 billion to RMB 0.088 billion for FY2025, compared to RMB 0.065 billion in FY2024.

Important Details and Potentially Price-Sensitive Information

• Drivers of Profitability:
  • Significant reduction in asset impairment and one-off bar closure losses compared to 2024
  • Operational improvements such as new iterations in existing markets and opening of new bars
  • Cost controls, including lower rental and labor costs and enhanced supply chain management, have contributed to improved performance
  • These positives are partially offset by significant exchange losses on foreign currency assets due to fluctuations in USD and HKD exchange rates
• Non-HKFRS Measures: The adjusted net profit excludes impairment losses, bar optimisation and adjustment losses, secondary listing expenses, and foreign exchange gains or losses. This measure gives a clearer view of underlying operational performance but may not be comparable to similar measures of other companies.
• Ongoing Finalization: The consolidated annual results for FY2025 are still being finalized. The information provided is based on management’s preliminary review of unaudited accounts and may differ from actual audited results.
• Results Announcement: The official audited results are expected to be released in March 2026. Investors are advised to review the full results upon release for more details.

Implications for Shareholders and Investors

• Turnaround Story: The expected shift from a net loss to a net profit is a major positive development and could be a catalyst for share price movement, particularly in light of the cost controls and operational efficiency improvements.
• Revenue Decline: The decrease in revenue and same-store performance is a concern and may weigh on growth expectations. The sustainability of profit improvements amidst declining top-line should be monitored.
• Currency Risks: Ongoing exposure to foreign exchange volatility remains a risk factor for future earnings.
• Non-Recurring Adjustments: Investors should be cautious in interpreting adjusted net profit, as it excludes certain significant items. The use of non-HKFRS measures may limit comparability.
• Caution Advised: As the results are unaudited and subject to change, investors should exercise caution in trading and wait for the final results announcement for complete information.

Management Statement

The Board, led by Chairman and CEO Mr. Xu Bingzhong, emphasizes that these projections are preliminary and unaudited. As the company continues to finalize its financial statements, further updates will be provided.

Conclusion

The transition from loss to profit, driven by cost management and operational optimization despite revenue headwinds, is a significant development for Helens International. This positive profit alert may be price sensitive and could drive investor interest. Nonetheless, risks remain, especially regarding currency exposure and ongoing revenue challenges.

Disclaimer: This article is based on the company’s unaudited preliminary results and forward-looking statements, which are subject to change. Investors should not rely solely on this information for investment decisions and are advised to read the full audited results when available. The author and publisher accept no liability for actions taken based on this article.

View HELENS Historical chart here