This article only represents the author's own views.
It was the toast of the town a year and a half ago, as Covid-weary patrons flooded into its pubs to celebrate the end of China’s tough pandemic restrictions at the end of 2022. But fast forward to the present, when pub operator Helens International Holdings Co. Ltd. (9869.HK, HLS.SG), which just listed in Singapore last month, is feeling a distinct post-Covid hangover. Its growing headaches were apparent in a company profit alert issued earlier this month, where it forecast a year-on-year revenue decline of 36% to 39.4% to between 430 million yuan ($60 million) and 450 million yuan for the first half of 2024. It added its profit fell 53% to 57.5% over the period to between 67 million yuan and 74 million yuan.
The decline was partly due to a surge in its bar revenue in the year-ago period, as fun-lovers spent lavishly with the end of China’s pandemic restrictions. But the post-pandemic high is mostly a memory now, as things have returned to normal. Adding to its woes are an uncertain economic outlook in China and the impact that’s having on consumer habits, said Helens. Last but not least, the company’s latest profits were also undermined by 12.2 million yuan in fees related to its new Singapore listing.