Helens International Holdings Company Limited: FY2025 Annual Results Analysis

Helens International Holdings Company Limited (“Helens”), a Cayman Islands-incorporated bar operator listed in Hong Kong and Singapore, released its audited consolidated results for the year ended December 31, 2025. This article analyzes key financial metrics, operational highlights, management statements, and overall outlook for investors.

Key Financial Metrics and Year-over-Year Comparison

Key observations: Revenue sharply declined due to fewer self-operated bars and weak same-store performance. However, the company returned to profitability after a significant prior-year loss, driven by improved adjusted net profit and cost control. Dividend payout was halved year-on-year. Cash reserves fell, largely due to dividend payments.

Operational and Business Highlights

• Bar Network Expansion: As of March 19, 2026, the bar network increased to 578 (up from 560 at end-2024), driven by the “HiBeer Partnership” model. Self-operated bars decreased, partnership bars increased.
• Same-Store Sales: Same-store sales dropped by 18.4%, reflecting challenging market conditions and lower consumer spending.
• Contribution Margin: Helen’s branded alcoholic drinks contribution margin improved to 79.8% from 76.6%. Third-party drinks margin also grew to 60.9% from 51.2%.
• Cost Discipline: Employee benefit expenses, depreciation, utilities, and advertising costs all decreased substantially, reflecting store network optimization and tighter cost management.
• Asset Reclassification: Several properties were reclassified from “Property, Plant, and Equipment” to “Investment Properties” as they were leased out for rental income.
• Share Buybacks: 475,000 shares repurchased in Nov-Dec 2025 (0.0375% of total issued shares), subsequently canceled.
• Bank Borrowings: RMB40 million in secured borrowings as of year-end, up from nil in 2024. Gearing ratio of 4.6%.

Exceptional Items and One-Offs

• Impairment Losses: Impairment losses on plant, equipment, and right-of-use assets dropped sharply (from RMB85.8m to RMB4.9m), with no impairment on investment properties this year.
• Other Gains/Losses: Net gains from bar optimization (closures/disposals), but a substantial exchange loss (RMB23.4m) due to FX movements.
• Adjusted Net Profit: Includes add-back for non-recurring items such as secondary listing expenses, impairments, and bar optimization losses.

Chairman’s Statement and Tone

“In 2025, our revenue decreased to RMB539 million from RMB752 million in 2024, mainly due to the fact that the number of self-operated bars in operation in 2025 decreased as compared with the full year of 2024 and that the same-store performance declined in 2025 as compared with 2024 due to the fluctuations in the market environment, which resulted in a decrease in revenue from self-operated business. As we continue to develop our bar network under the “HiBeer Partnership” programme, the proportion of our revenue from franchise business increased to 34.0% in 2025 from 25.9% in 2024. Despite the weak consumer market in 2025, we still scored good profitability, with an adjusted net profit of RMB67.7 million in 2025.”

“In 2025, our contribution margin of bars amounted to 73.77%, representing a further increase compared to 2024. Among these, the gross profit margin of Helen’s branded alcoholic drinks increased from 76.6% in 2024 to 79.8% in 2025, mainly benefiting from the improvement of our supply chain capabilities and the popularity of new products we launched, meanwhile, Helen’s own-brand products accounted for 72.4% of revenue in 2025, up from 70.5% in 2024.”

“Looking forward, on the one hand, we will continue to consolidate and expand our self-operated bar network; on the other hand, we will further develop our franchise bar network through the continuously optimized “HiBeer Partnership” bar model. At the same time, we will continue to strengthen supply chain integration and space design capabilities, and leverage these two core strengths to explore new modes such as the “third space”, thereby constantly creating new value for consumers’ evolving lifestyles.”

The statement is cautiously optimistic, acknowledging challenges but emphasizing improved profitability, margins, and ongoing strategic transformation.

Dividend Policy and Directors’ Remuneration

• Dividend: Final dividend recommended at RMB0.0554 per share, down from RMB0.1146 in 2024. Dividend reflects reduced earnings and cash reserves.
• Directors’ Remuneration: Total employee benefit and manpower service expenses for the year were RMB113.1 million, including directors’ remuneration.

Corporate Actions, Legal, and Risk Events

• Share Buybacks: 475,000 shares repurchased and canceled.
• Legal and Litigation: No material litigation or arbitration during the reporting period.
• Asset Sales & Investments: No material acquisitions, disposals, or significant investments disclosed.
• Risk Factors: Key risks include shifting consumer tastes, counterfeit products, food safety, and macroeconomic volatility. Management is taking steps to mitigate these risks.

Outlook and Forecasted Events

Management expects to continue funding operations from bar revenue but may consider further financing as business expands. The company is actively transforming its business model with a focus on partnerships and platform-based growth. However, macroeconomic headwinds and weak consumer spending remain ongoing risks.

Conclusion and Investment Recommendations

Overall Financial Performance: The results signal a neutral to cautiously positive outlook. Despite a steep decline in revenue and dividend payout, Helens returned to profitability, improved adjusted net profit, and maintained strong margins. The business is in transition, shifting toward partnership models and platform-based growth, with disciplined cost management and asset optimization. Risks remain from macroeconomic conditions and consumer demand.

• If you currently hold Helens shares: Consider maintaining your position if you believe in the company’s long-term transformation strategy. The return to profitability and improved margins are encouraging, but ongoing revenue weakness and dividend reduction warrant caution. Monitor management execution and consumer market trends closely.
• If you do not currently hold Helens shares: Exercise patience. Prospective investors may wait for evidence of sustained revenue growth and a recovery in consumer sentiment before entering. The company’s strategic changes could yield long-term benefits, but near-term risks and volatility remain.

Disclaimer: This article is based strictly on information disclosed in Helens International Holdings Company Limited’s audited financial report for FY2025. It does not constitute financial advice or a recommendation to buy or sell securities. Investors should perform their own due diligence and consult a qualified advisor before making investment decisions.

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