Helens Chinese Trademark Invalidated in Final Appeal; Market Cap Plummets Over 90%

Have you been to Helen's? Known as "young people's first pub," Chinese pub chain Helens recently lost its "Chinese name." Three Chinese trademarks—"Helens", "Helens Pub", and "Helens Big Paidan"—were ruled invalid by the court in final appeal.

But compared to "losing its Chinese name," Helens' bigger crisis may be that it, once representing young people, is being abandoned by them.

Helens' Trademark War: Three Chinese Trademarks Invalidated in Final Appeal

Founded in 2009, Helens first opened in Beijing's Wudaokou. Founder Xu Bingzhong said the initial focus was on the foreign market, e.g., overseas Chinese students.

Perhaps related, Helens initially used English trademarks like "Helen's" and applied for a batch of related English trademarks in 2013, but core Chinese trademarks were only registered from 2018 onward, laying the groundwork for the subsequent trademark crisis.

According to interface news, the trademark dispute over "Helens" mainly arose between Chengdu Helen Binfen Hotel Co., Ltd. and Helens. The former successfully registered two "Helen" trademarks in 2016 under class 43 for restaurant and bar services, and on May 23, 2023, filed invalidation requests against the "Helens" trademark, and on August 7, 2024, against "Helens Pub" and "Helens Big Paidan" trademarks, claiming the disputed trademarks were similar to the cited "Helen" trademarks on similar services, likely causing consumer confusion.

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

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

After the announcement, stock price opened lower on June 26, at one point falling over 6%. At market close that day, Helens' share price fell to HKD 1.58. Helens' market cap once reached HKD 30 billion in its listing year, but now stands at only HKD 2 billion, shrinking over 90%.

"Young People's First Pub" No Longer Young: Expansion and Loss Pressure

Helens' earliest stores were located near university campuses, mainly serving foreigners and international students. Later, founder Xu Bingzhong shifted strategy, positioning Helens as a "space for young people to freely socialize offline," emphasizing "extreme value for money." All bottled beer at Helens sells for under CNY 10, with cocktails slightly more expensive at just over CNY 20.

The "young people + value" model was successfully replicated. By end of 2021, Helens had 782 stores and went public in Hong Kong under the halo of "China's largest chain pub."

According to Helens' 2021 prospectus, revenue from 2018 to 2020 was CNY 115 million, CNY 565 million, and CNY 818 million respectively, with net profits of CNY 9.734 million, CNY 79.136 million, and CNY 70.072 million.

The prospectus showed that own-brand alcoholic beverages with gross margins above 70% contributed over 60% of Helens' beverage revenue. Through factory-direct procurement and economies of scale, Helens also secured favorable purchase prices for third-party brand beverages. Therefore, scale was one of Helens' advantages.

During rapid expansion, Helens faced soaring store opening costs. Combined with the pandemic, Helens incurred a net loss of CNY 230 million in 2021; the loss expanded to CNY 1.601 billion the following year. After cumulative losses exceeding CNY 1.8 billion, Helens began closing stores to save itself.

Financial data shows that as of end of 2023, Helens had 479 pubs, down 288 from a year earlier, and over 40% down from the peak of over 850.

At the same time, Helens launched a strategic shift from full direct operation to franchising, the "Hi Beer Partner" plan. Initially, the minimum capital requirement for the plan was CNY 600,000; by 2024, the investment threshold for new store models was lowered to around CNY 400,000.

Bistros Everywhere: Intensified Competition Pressures Per-Store Sales

From the 2025 financial report, Helens' full-year revenue was CNY 540 million, down 28.3% YoY; net profit attributable to shareholders was CNY 33.954 million, turning a profit. Own-brand beverage revenue share and gross margin improved, with store-level contribution gross margin rising to 73.77%, overall operating conditions improving from the previous year.

However, Helens still faces declining average daily sales per store. In 2025, average daily sales per store for direct and franchised stores was CNY 8,500, down over 18% YoY; overall average daily sales per partner store was only CNY 4,100, with declines across all store types. In a catering sector where average daily revenue per store often exceeds CNY 10,000, Helens' primarily franchise model earns less.

Notably, nearly 70% of Helens' stores are in third-tier and below cities, putting profitability under objective pressure.

On the other hand, young people now have many more places to drink, and low price is losing its appeal. Zhaomen Canyin shows that in the past year, nearly 38,000 new pubs opened. From home bars, craft beer pubs, livehouse pubs to various bistros, consumption scenarios are increasingly diversified.

Among them, bistro-style venues operating "food + alcohol" have risen strongly in recent years. In this segment, Huanshi, owned by parent company Jiwu Siwei, has been growing aggressively. Jiwu Siwei submitted a prospectus to the Hong Kong Stock Exchange in January this year. Huanshi now has over 100 stores in China, with 2024 revenue exceeding CNY 1 billion.

Compared to Helens, which opened the market with low prices and scale, Huanshi takes a different path. Its environment is more atmospheric, with higher pricing and per capita spending exceeding CNY 100. On social media, netizens describe it as "beautiful food." According to the prospectus, in the nine months ended September 30, 2025, its average daily sales per store was CNY 29,880.

Huanshi extends operating hours to over 18 hours by offering brunch, afternoon tea, dinner, and evening bar service, improving per-store efficiency and profitability. In the nine months ended September 30, 2025, beverages contributed about 45% of revenue, of which 85% were alcoholic drinks. During the same period, Huanshi's overall gross margin was stable at 68.7%, above industry average.

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

China food industry analyst Zhu Danpeng believes that, like the coffee sector, there is room for low-, mid-, and high-end brands in the pub market. Many pubs are favored by the new generation, and the sector is in a period of rapid expansion, but overall concentration is not high. Perhaps after about 5 years, supported by capital and consumption dividends, leading brands and a clearer competitive landscape will emerge.

He said the hardcore factors determining the future development of pub businesses include brand effect, scale effect, fan effect, supply chain completeness, and single-store operation capability. Since each store is in a different location, strategies should be differentiated. For Helens and its peers, the biggest challenge may be how to run each store well.