Helens Trademark Invalid Final Ruling, Market Cap Down Over 90%: Cause Analysis

## Helens Chinese Name Trademarks Invalid Final Ruling: Market Cap Down Over 90% Have you been to Helen's? Recently, Helens lost its 'Chinese name.' According to reports, three Chinese trademarks – 'Helens,' 'Helens Small Bar,' and 'Helens Yue Da Pai Dang' – were ruled invalid by a final court ruling. However, compared to 'losing the Chinese name,' Helens' bigger crisis may be that it, once representing the youth, is being abandoned by the youth. ## Helens Trademark Defense: Timeline and Dispute Focus Helens was founded in 2009, opening its first store in Wudaokou, Beijing. Founder Xu Bingzhong initially targeted the foreign market, such as overseas Chinese students. Therefore, Helens originally used English trademarks like 'Helen's,' applying for relevant English trademarks in 2013; but its core Chinese trademarks were not registered until 2018, laying the groundwork for the subsequent crisis. According to Jiemian News, the trademark dispute mainly occurred between Chengdu Helen's Bin Fen Hotel Co., Ltd. and Helens: - From 2016, the former successfully registered two 'Helen' trademarks in class 43 (restaurant and bar services) - On May 23, 2023, it filed a request for invalidation of the 'Helens' trademark - On August 7, 2024, it filed invalidation requests for 'Helens Small Bar' and 'Helens Yue Da Pai Dang' trademarks - Claiming the disputed trademarks were similar to the cited 'Helen' trademark in similar services, easily causing confusion about service origin After a tug-of-war of about three years, Helens announced that the three Chinese trademarks were ruled invalid by the final court: - The announcement stated that the current assessment is that these disputes have no material impact on the group's overall business, daily operations, or financial condition - As the group can continue to use its undisputed trademarks in daily business ## Capital Market More Sensitive: Market Cap Shrinks Over 90% Blue Whale News reporters found that as of now, Helens' offline stores and online communication still use the Chinese name 'Helens' and related expressions. The impact has not yet affected specific stores, but the capital market may be more sensitive. After the news, on June 26, the stock opened lower, falling more than 6% intraday. By the close, the stock price had fallen to HK$1.58. Helens' market cap once reached HK$30 billion in the year of its IPO; now it is only about HK$2 billion, a drop of over 90%. ## 'The Youth's First Bar' No Longer Young: The Double-Edged Sword of Low Price and Expansion Helens' earliest stores were near universities, mainly serving foreigners and overseas students; later the founder repositioned it as 'a space for young people to freely communicate offline,' insisting on 'extreme value for money': bottled beer under 10 yuan, cocktails over 20 yuan. The 'youth + value' model was replicated. Helens store count reached 782 by the end of 2021, and it listed on Hong Kong stocks at that stage, known as 'China's largest chain of small pubs.' According to Helens' 2021 prospectus: - 2018-2020 revenue: 115 million, 565 million, 818 million yuan - Net profit: 9.734 million, 79.136 million, 70.072 million yuan Despite low beverage prices, it was not unprofitable. The prospectus showed: - Own-brand drinks with over 70% gross margin contributed over 60% of beverage revenue - Through factory direct procurement and scale, third-party brand beverage purchase prices were relatively favorable Advantage in scale, but expansion also brought soaring store opening costs. Coupled with pandemic effects: - 2021 net loss reached 230 million yuan - Next year net loss expanded to 1.601 billion yuan After cumulative losses of over 1.8 billion yuan, Helens began store closures: by the end of 2023, the number of stores was 479, a decrease of 288 from a year earlier; compared to the peak of over 850, a reduction of more than 40%. ## Hi Beer Partner Franchise Transformation: Operating Pressure Under Lowered Threshold At the same time, Helens shifted from full direct operation to opening franchising, i.e., the 'Hi Beer Partner' plan: - At the start of the plan, the minimum investment threshold was about 600,000 yuan - By 2024, the investment threshold for new store types was lowered to about 400,000 yuan The transformation and threshold reduction reflect Helens' expansion pressure and urgent need to improve operations. ## Challenges Under the Ubiquity of Bistros: Turning Profitable While Single-Store Sales Decline 2025 financial report showed: - Full year revenue of 540 million yuan, down 28.3% year-on-year - Net profit attributable to parent of 33.954 million yuan, turning from loss to profit - Own-brand beverage revenue share and gross margin improved year-on-year - Store-level contribution gross margin increased to 73.77%, overall operations improved But single-store level still faces pressure: - Same-store average daily sales for direct and franchised partner stores in 2025 were 8,500 yuan, down over 18% year-on-year - Average daily sales for individual partner stores were only 4,100 yuan - Daily sales fell across all store types In the catering track where single-store daily revenue often exceeds 10,000 yuan, Helens' main franchise store type makes relatively little; at the same time, nearly 70% of stores are in third-tier and below cities, objectively affecting profitability. ## Bar Scene Diversification: From Low-Price Attraction to Intensifying Competition On the other hand, there are now too many places for young people to drink. The appeal of low prices is weakening. Zhai Men Can Yan data shows: in the past year, the number of new bars opened reached 38,000. From Homebars, craft beer pubs, livehouse bars to various bistros, consumption scenes are increasingly diversified. Among them, bistro operating 'meal + drink' has risen strongly. In this track, Huanshi (Fantasy Master) is developing fiercely; its parent company Jiwu Siwei submitted an IPO prospectus to the Hong Kong Stock Exchange in January this year: - Over 100 stores domestically - 2024 company revenue exceeded 1 billion yuan Compared to Helens, which opens up the market with low price and scale, Huanshi takes a different path: more atmospheric environment, higher pricing, per capita consumption over 100 yuan. Its social platform impression is one of 'beautiful food.' The prospectus disclosed: - First nine months of 2025 average daily sales per store: 29,880 yuan - Operating hours extended to over 18 hours (offering brunch, afternoon tea, dinner, and nighttime bar) - Alcoholic beverages and drinks contributed about 45% of revenue, of which 85% were alcoholic - Same-period overall gross margin stable at 68.7%, above industry average However, Huanshi also faces challenges: high store costs squeezing margins, and consumer complaints about dish taste and quality may affect reputation. ## Industry View: Hard Factors Beyond Pricing China food industry analyst Zhu Danpeng believes: like the coffee track, brands at low, mid, and high ends each have their market. For small pubs, the industry is in a period of rapid expansion, but overall concentration is low; perhaps after another five years, with capital promotion and consumption dividend support, the market will see leading brands and a clearer competitive landscape. Zhu Danpeng stated that hard factors affecting brand trends include: - Brand effect - Scale effect - Fan effect - Supply chain completeness - Single-store operation capability Because each store is located in a different area, strategies should be differentiated. For Helens, how to run each store well may be the biggest challenge.