Core Viewpoint - Helen's, known as the "first stock of small taverns," has disappointed the market with significant revenue and profit declines, indicating a failure in its strategic transformation to target lower-tier markets [1][2][4] Financial Performance - In 2024, Helen's reported total revenue of 752 million yuan, a year-on-year decrease of 37.8%, and an adjusted net profit of 101 million yuan, down 65.5% from 2023 [1] - The company has accumulated a net loss of 1.729 billion yuan over the reporting periods, approximately 10.87 times the total net profit before its IPO [1] - The stock price has plummeted from a peak of 20.61 HKD per share to a low of 1.21 HKD, with a market value drop of 93.3% since its IPO [1] Strategic Shift - In response to the pandemic, Helen's shifted focus from high-rent first and second-tier cities to lower-tier markets, increasing the proportion of stores in third-tier cities from 30% to 52.6% [2][4] - The number of stores in first and second-tier cities decreased by 43, while the number of stores in third-tier cities increased by 48.8% [2] Market Challenges - Despite the increase in lower-tier stores, the average daily sales per store in these areas fell by 9.5% to 6,700 yuan, marking a six-year low [4] - The company's standardized tavern model struggles to meet the diverse needs of consumers in lower-tier cities, where local preferences and income levels differ significantly [7] Franchise Model Issues - The shift to a franchise model led to a drastic reduction in company-owned stores, with franchise revenue only accounting for 25.9% of total revenue in 2024 [8] - Franchise stores reported an average daily sales of only 5,000 yuan, a nearly 30% decline compared to previous years [8] - The investment recovery period for franchisees has extended to 3-4 years, making it less attractive compared to competitors [13] Cost Reduction Efforts - Helen's has repeatedly lowered the investment threshold for franchisees, including reducing initial investment costs and eliminating profit-sharing arrangements [10][11] - New store models have been introduced to attract franchisees, but the expected growth in store numbers has not materialized as planned [14]
海伦司2024年营收、净利双降：分散下沉战略受挫 加盟商盈利困局难解