Helens International Holdings Company Limited: FY2025 Positive Profit Alert Analysis
Helens International Holdings Company Limited (“Helens”, HKEX: 9869, SGX: HLS) has issued a positive profit alert for the financial year ended December 31, 2025. The company, a leading operator of self-operated bars in China, provided preliminary unaudited financial data and qualitative updates on its performance and outlook. Below is a structured analysis for investors.
Key Financial Metrics
| Metric |
FY2025 (Estimate) |
FY2024 (Actual) |
YoY Change |
| Revenue (RMB bn) |
0.520 – 0.570 |
0.752 |
-24% to -31% |
| Net Profit/(Loss) Attributable to Owners (RMB bn) |
0.015 – 0.045 |
(0.078) |
Turnaround from loss |
Adjusted Net Profit (non-HKFRS)
(RMB bn) |
0.065 – 0.088 |
0.065 |
0% to +35% |
| Proposed Dividend |
Not disclosed |
Not disclosed |
N/A |
Performance Trends and Drivers
- Revenue Decline: Revenue for 2025 is estimated to fall between RMB 0.520 billion and RMB 0.570 billion, a significant decrease from RMB 0.752 billion in 2024. This was primarily due to a reduction in the number of self-operated bars and weaker same-store sales, reflecting broader market fluctuations.
- Return to Profitability: Despite the revenue drop, the company expects to swing from a loss of RMB 0.078 billion in 2024 to a profit of RMB 0.015–0.045 billion in 2025. This improvement is driven by reduced asset impairment and lower one-off bar closure losses, as well as cost controls and operational enhancements.
- Adjusted Net Profit: The adjusted net profit (a non-HKFRS measure) is forecast at RMB 0.065–0.088 billion, up from RMB 0.065 billion in 2024, benefiting from the exclusion of non-recurring items (impairments, bar closure costs, secondary listing expenses, FX gains/losses).
- Cost Controls: The company cites improvements in rental and labor costs, as well as better supply chain management, as key factors boosting operational performance.
- Currency Impact: These positives are partially offset by significant exchange losses on foreign currency assets due to fluctuations in USD and HKD exchange rates.
Exceptional Items and Non-Recurring Effects
- Lower asset impairment and one-off bar closure losses compared to the prior year contributed significantly to the return to profitability.
- Adjusted net profit excludes non-operational or non-recurring items, offering a clearer view of underlying performance but is not directly comparable with HKFRS results or peer companies.
Chairman’s Statement
“By order of the Board Helens International Holdings Company Limited Mr. Xu Bingzhong Chairman of the Board and Chief Executive Officer”
The tone of the Chairman’s statement is factual and businesslike, focusing on the company’s operational improvements and profitability turnaround, without overt optimism or caution.
Outlook and Forecasted Events
- The company expects continued benefits from cost reductions, improved supply chain management, and selective bar openings in new and existing markets.
- Currency volatility remains a risk factor.
- The final audited results are expected to be published in March 2026.
Conclusion and Investment Recommendation
Overall Financial Performance & Outlook: Helens International is expected to deliver a significant improvement in profitability for FY2025, returning to profit after a loss in FY2024, despite a notable drop in revenue. The turnaround is driven by effective cost management, reduced exceptional losses, and operational optimization. However, ongoing revenue contraction and currency risks warrant caution.
- If you are currently holding the stock: The return to profitability is a positive sign, suggesting that management’s cost controls and strategic adjustments are yielding results. However, continue to monitor for confirmed audited results and any signs of revenue stabilization before increasing exposure.
- If you are not currently holding the stock: Consider a wait-and-see approach. The company’s ability to sustain profitability with lower revenue is encouraging, but risks remain around top-line growth and macroeconomic volatility. Entry could be considered after the release of full audited results if the positive trends are maintained.
Disclaimer: This analysis is based solely on data disclosed in Helens International Holdings Company Limited’s FY2025 Positive Profit Alert. It does not constitute investment advice. Investors should consider their own financial circumstances and risk tolerance and refer to the company’s audited results and official disclosures before making any investment decisions.
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