Helens Chinese trademark ruled invalid; market cap plunges over 90%

Have you been to Helen's? Known as "the first small pub for young people" in China, the pub chain recently lost its "Chinese name". The three Chinese trademarks "Helensi", "Helensi Xiaojiuguan", and "Helensi Yueda Paidang" were ruled invalid by final court judgment.

Compared to "losing the Chinese name", a bigger crisis for Helens may be that it, once representing young people, is being abandoned by them. The capital market is more sensitive.

Helens' trademark defense battle

Founded in 2009, Helens first opened in Beijing's Wudaokou. Founder Xu Bingzhong once said that the early business targeted foreigners, such as overseas students.

Perhaps for this reason, Helens initially used the English trademark "Helen's" and applied for related English trademarks in 2013; its core Chinese trademarks were not registered until 2018, laying a hidden risk for later trademark disputes.

According to Interface News, the trademark dispute mainly arose between Chengdu Helen Binfen Hotel Co., Ltd. and Helens. The counterparty successfully registered two "Helen" trademarks (Class 43 for restaurants and bar services) in 2016, and in May 2023 and August 2024 respectively filed invalidation requests against "Helensi" and "Helensi Xiaojiuguan"/"Helensi Yueda Paidang" trademarks with the National Intellectual Property Administration, claiming the cited "Helen" marks were similar to the disputed marks for similar services, easily causing consumer confusion.

After a three-year tug-of-war, on the evening of June 25, Helens announced that its three Chinese trademarks were ruled invalid by final court judgment. The announcement stated that based on current assessment, this dispute has no material impact on the group's overall business, daily operations, or financial condition, and the group can continue using its undisputed trademarks in daily business.

A Blue Whale reporter found that as of now, Helens' offline stores and online communications still use the Chinese name "Helensi" and related expressions. The impact has not yet affected specific stores, but the capital market is more sensitive than physical stores.

After the news, on June 26, the stock opened lower and fell over 6% during the session. By close that day, Helens stock price fell to HK$1.58. Helens' market cap once reached HK$30 billion in the year of listing, but now is only HK$2 billion, shrinking over 90%.

"The first small pub for young people" is no longer young

Helens' earliest stores were near university areas, mainly serving foreigners and international students. Later, founder Xu Bingzhong changed direction, positioning Helens as "a space for young people to freely communicate offline" and opened the market with "extreme cost performance": bottled beer prices were all under 10 yuan, cocktails slightly higher but mostly in the 20+ yuan range.

The "youth + cost performance" model succeeded. By end-2021, Helens had 782 stores, and in 2021, it went public in Hong Kong as the "largest chain small pub in China."

According to Helens' 2021 prospectus, revenue from 2018 to 2020 was 115 million, 565 million, and 818 million yuan respectively; net profit was 9.734 million, 79.136 million, and 70.072 million yuan. The prospectus shows that self-owned alcoholic beverages with gross margins above 70% contributed over 60% of alcoholic beverage revenue; meanwhile, through direct factory sourcing and economies of scale, Helens obtained cost-effective third-party brand alcohol purchase prices.

One advantage was scale. While expanding aggressively, Helens also faced soaring store costs. Combined with the pandemic, net loss in 2021 was 230 million yuan; in 2022, net loss widened to 1.601 billion yuan.

After cumulative losses exceeded 1.8 billion yuan, Helens began closing stores to save itself. Financial data shows that by end-2023, Helens had 479 pubs, down 288 from a year earlier; compared to over 850 at peak, a reduction of over 40%.

Meanwhile, Helens initiated a strategic shift from full direct operation to franchising, i.e., the "Hi Beer Partner" plan. At the start of the plan, the minimum capital threshold was 600,000 yuan; but by 2024, the investment threshold for new stores was lowered to around 400,000 yuan, reflecting pressure to expand and improve operations.

Under the Bistro craze, Helens' per-store pressure persists

The restructuring measures brought improvements. According to its 2025 financial report, Helens' full-year revenue was 540 million yuan, down 28.3% YoY; net profit attributable to parent was 33.954 million yuan, turning profitable. Self-owned alcoholic beverage revenue share and gross margin improved; store-level contribution gross margin increased to 73.77%.

But it still faces declining average daily sales per store: in 2025, same-store average daily sales of direct and franchised stores were 8,500 yuan, down over 18% YoY; average daily sales of individual partner stores were only 4,100 yuan, with all store types seeing declines. In the dining track where per-store daily revenue often exceeds 10,000 yuan, Helens' main franchise model earns relatively little; meanwhile, nearly 70% of its stores are in third-tier and below cities, facing profitability pressure.

On the other hand, young people have too many places to drink. Low prices are losing appeal: Zhaomen Canyan shows that over the past year, the number of newly opened pubs reached 38,000. From Homebars, craft beer pubs, Livehouse-style pubs to various Bistros, consumption scenarios are increasingly diverse.

Among them, Bistros offering "food + drink" have risen strongly. In this track, Huan Shi (Magic Chef), which operates "food + drink" stores, has developed aggressively. Its parent company, Jiwu Siwei, filed a prospectus with the Hong Kong Stock Exchange in January this year. Data shows Huan Shi has over 100 stores in China, with 2024 revenue exceeding 1 billion yuan.

Compared to Helens, which opened the market with low prices and scale, Huan Shi takes a different route: more emphasis on ambiance, higher product pricing, per capita consumption over 100 yuan. On social platforms, netizens describe Huan Shi as "pretty food." The prospectus reveals that in the first nine months of 2025, its average daily sales per store were 29,880 yuan.

Different from traditional bar and pub formats, Huan Shi extends operating hours to over 18 hours by offering brunch, afternoon tea, dinner, and nighttime bar, improving per-store efficiency and profitability. The prospectus shows that in the nine months ended September 30, 2025, beverages contributed about 45% of revenue, with 85% being alcoholic; during the same period, Huan Shi's overall gross margin stabilized at 68.7%, higher than industry average.

However, Huan Shi also faces challenges: high store costs squeeze profits, and consumer complaints about taste and quality may affect brand reputation.

Zhu Danpeng, a Chinese food industry analyst, believes that just like the coffee track, low, mid, and high-end brands each have their market. Similarly for small pubs. Pubs are increasingly sought after by the new generation, in a high-speed expansion phase, but overall concentration is low. Perhaps after another 5 years, with capital push and consumption dividends, a head brand and clearer competitive pattern will emerge.

Zhu said the hard-core factors determining future development of small pubs are brand effect, scale effect, fan effect, supply chain completeness, and per-store operation capability. Since each store location differs, strategies should be differentiated. For Helens, how to run each store well might be the biggest challenge.