Helens International Holdings 2025 Annual Report: Detailed Investor Highlights

Helens International Holdings Company Limited (HKEX: 9869; SGX: HLS) has released its 2025 Annual Report, providing shareholders and the investment community with a comprehensive view of the company’s operational performance, financial health, and strategic outlook. Below, we provide an in-depth analysis of the most critical and potentially price-sensitive disclosures from the report.

1. Financial Performance and Turnaround

• Return to Profitability: The company reported a net profit attributable to shareholders of RMB 33.95 million for 2025, a significant turnaround from a net loss of RMB 77.98 million in 2024. This reversal signals improved business fundamentals and cost management.
• Revenue Decline: Revenue decreased to RMB 539 million in 2025 from RMB 752 million in the prior year, reflecting ongoing operational adjustments and the impact of bar optimization initiatives.
• Adjusted Net Profit: After adjusting for non-operating and non-recurring items (such as foreign exchange losses of RMB 23.39 million, and RMB 10.34 million in bar optimization losses), adjusted net profit reached RMB 67.7 million, up from RMB 65.4 million in 2024.
• Finance Income and Costs: Finance income fell sharply by 54.8% to RMB 21.9 million, mainly due to lower bank deposits, while finance costs decreased by 33.9% to RMB 7.4 million, reflecting reduced lease liabilities.
• Dividend Payout: The board recommended a final dividend of RMB 0.0554 per share (down from RMB 0.1146 in 2024), subject to shareholder approval. The dividend will be paid in HKD or SGD, depending on the shareholder’s register location.

2. Business Transformation and Strategic Direction

• Transformation to Light-Asset Model: The company is actively shifting to a platform-based, light-asset model, which is anticipated to improve capital efficiency and returns.
• Capital Expenditures: Capital expenditures nearly doubled to RMB 15.9 million (from RMB 8.2 million in 2024), supporting new bar openings and the company’s transformation efforts.
• Expansion Plans: Helens will continue expanding its bar network, especially in lower-tier Chinese cities, and invest in digital platforms and brand building to enhance customer experience and operational efficiency.
• Supply Chain and Product Innovation: The company plans to further integrate its supply chain, optimize product portfolios, and upgrade bar décor to support differentiation and diversified operations.

3. Capital Structure and Liquidity

• Gearing Ratio: Gearing increased to 4.6% as of December 31, 2025, compared to nil in 2024, reflecting new bank borrowings of RMB 40 million, secured against certain buildings.
• Share Repurchases: The company repurchased 475,000 shares in 2025 (approx. 0.0375% of issued shares) at an aggregate consideration of HK\$466,740. All repurchased shares were subsequently cancelled, which is expected to enhance per-share metrics and reflect management’s confidence in the company’s intrinsic value.
• Public Float and Waivers: The company confirmed compliance with the minimum public float requirements on both the Hong Kong and Singapore exchanges.
• Unutilized IPO Proceeds: As of year-end, HK\$261.5 million of IPO proceeds remained unutilized, earmarked for bar expansion and disclosed use in line with the IPO prospectus.

4. Operational and Financial Risks

• Foreign Exchange Exposure: The company continues to face foreign exchange risk due to HKD and USD denominated assets and has not yet implemented hedging strategies.
• No Material Contingent Liabilities or Capital Commitments: The company reported no significant contingent liabilities or material capital commitments as of December 31, 2025.
• Risk Management: The board has implemented a comprehensive risk management framework and completed a full review of its risk management and internal control systems, concluding they are effective and adequate for the group’s needs.
• No Significant Post-Reporting Events: No material events were identified after the reporting date that would impact the company’s financial position or outlook.

5. Corporate Governance and Shareholder Interests

• Corporate Governance: The company confirmed compliance with the Corporate Governance Code, except for a separation of chairman and CEO roles, which is being reviewed.
• Remuneration and Incentives: A significant pool of RSUs remains available under the Post-IPO RSU Scheme, aligning management and shareholder interests.
• Major Customers and Suppliers: Revenue from the largest customer accounted for less than 5% of total revenue, and purchases from the largest supplier accounted for 11.1% of total purchases, indicating a diversified customer and supplier base.

6. Key Price-Sensitive and Shareholder-Relevant Information

• Return to Profitability: The swing from loss to profit could be a significant share price catalyst, especially as adjusted net profit improved and the company demonstrated cost control.
• Dividend Reduction: The final dividend per share was reduced, which may affect income-focused investors’ sentiment.
• Share Repurchase and Cancellation: The buyback and cancellation of shares reflects management’s confidence and improves per-share financial metrics, which is typically viewed positively by the market.
• Expansion and Transformation: The company’s clear strategic shift and investment in digitalization and brand enhancement signals management’s commitment to sustainable growth, but also implies near-term execution risks.
• Capital Structure Changes: The new secured debt and increased gearing ratio may introduce additional financial risk, albeit from a low base.

7. Outlook

Management remains focused on expanding the bar network, especially via a platform-based, asset-light approach, and targeting China’s lower-tier markets. Increased investment in digital platforms, supply chain integration, and product innovation are expected to drive operational efficiency and brand strength. No material adverse events have occurred after the reporting period.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult their own financial advisors before making any investment decisions. The information herein is based on the company’s 2025 Annual Report and may be subject to change or updates not reflected in this summary.

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