HELENS, known as the "first stock in the small tavern sector," may soon face its most significant competitor.

On January 9, Jiwu Thinking Co., Ltd., the parent company of the chain dining bar brand COMMUNE (hereinafter referred to as COMMUNE), formally submitted a listing application to the Hong Kong Stock Exchange, aiming for a main board IPO, with China International Capital Corporation (CICC) and BOC International acting as joint sponsors.

According to the prospectus, the company achieved total revenues of RMB 845 million and RMB 1.074 billion in 2023 and 2024, respectively, with recorded net profits of RMB 50.525 million and RMB 53.981 million, representing year-on-year growth rates of 27.1% and 6.8%. From January to September 2025, COMMUNE's 112 directly-operated stores generated total revenue of approximately RMB 872 million, a 14.2% increase year-on-year, while net profit surged significantly by 46.9% to RMB 66.698 million.

Larger and More Expensive Than HELENS, But Facing Similar Growth Ceilings Unlike HELENS's narrative of an "affordable small tavern," COMMUNE positions itself as a mid-to-high-end dining bar.

The prospectus discloses that COMMUNE currently operates two store formats: Standard Stores and Select Stores, both with areas between 400-700 square meters. The former are typically located in urban shopping centers, commercial districts, and traditional bar streets, while the latter are situated in city landmark business districts and high-end properties. In contrast, HELENS' boutique, premium, and select store formats correspond to areas of 90-150 sqm, 150-240 sqm, and 240-260 sqm, respectively, with store locations often being in "good areas but poor positions"—meaning non-street-front shops within high-traffic commercial zones.

In terms of store distribution, COMMUNE's core base is Tier 1 and Tier 2 cities. From 2023 to the first three quarters of 2025, its number of stores in Tier 1 cities increased from 18 to 28, and in Tier 2 cities from 61 to 72; collectively, these accounted for 88.8%, 91.4%, and 91.7% of the total store count during these periods, respectively. Conversely, after its 2021 IPO, HELENS focused intensely on expanding into lower-tier markets, opening an average of 3-4 new stores per week in Tier 3 and below cities at its peak. As of June 30, 2025, nearly 70% of its 583 operating stores were located in Tier 3 and below cities, with the number of stores in Tier 1 and Tier 2 cities experiencing a net decrease of 65.8% compared to 2021.

Consequently, there is a notable gap in their average customer spending. The prospectus shows that from 2023 to 2024, COMMUNE's average daily bill per member decreased from RMB 182.2 to RMB 167.9. In the first nine months of 2025, this metric recovered slightly to RMB 169.9, a modest 2.8% year-on-year increase. This was primarily driven by a 12.9% increase in Tier 1 cities, which offset declines in Tier 2 and Tier 3 and below cities. Although HELENS no longer discloses average daily spending per ordering user in its financial reports, public data indicates its average customer spending was RMB 82 and RMB 71 in 2023 and 2024, respectively, far below the RMB 112.9 recorded in the first quarter of 2021. In 2025, facing a sluggish consumer market and intensifying price wars, its average customer spending remained under pressure, with the reference price for its new "Community Space" store format even dropping to around RMB 40.

From a business model perspective, COMMUNE adheres to a direct-operation model, whereas HELENS has shifted strategies multiple times—converting all franchised stores to directly-operated stores before its IPO, then launching a "Haipi Partner" program in 2023 under operational pressure, with an investment threshold as low as RMB 600,000. Under the direct-operation model, COMMUNE's operational capabilities are comparable to HELENS's. During the reporting periods, core expenses—covering raw materials and consumables, employee compensation, and depreciation of right-of-use assets—collectively accounted for 65%-70% of total costs for both companies. Profit margins for both rely heavily on their own brands; in the first half of 2025, HELENS's self-branded beverages contributed over 80% to its gross profit margin, while COMMUNE's 14 self-branded packaged alcoholic drinks accounted for over 20% of its total alcohol beverage sales, with a comprehensive gross margin nearing 70%.

Notably, even after fully opening up franchising, HELENS's performance showed no significant improvement. From January to June 2025, its "Haipi Partner" stores saw a net increase of only 26 stores compared to the end of 2024, with average daily revenue per store decreasing by 22.2% year-on-year, amounting to only about half that of its directly-operated stores during the same period; franchise income was approximately RMB 108 million, a decrease of 17.1% year-on-year.

Despite their different positioning and models, COMMUNE and HELENS face strikingly similar challenges. Financial reports show that from 2023 to the first half of 2025, HELENS's same-store sales declined by 21.3% and 17.9%, respectively, with average daily sales per store in its primary market—Tier 3 and below cities—hovering around RMB 7,000, a contraction of 18.1% from the peak in 2021.

Meanwhile, the prospectus reveals that from 2023 to the first three quarters of 2025, COMMUNE's same-store sales growth rates in Tier 1 cities were -1.1% and -1.4%, respectively. In its stronghold of Tier 2 cities, the same metric turned negative in the first nine months of 2025, recording -0.2%. Compared to the first three quarters of 2024, COMMUNE's overall same-store sales decreased by RMB 2.3349 million, with average daily same-store sales stagnating. However, underperformance in per-store profitability has not halted COMMUNE's aggressive expansion plans. From 2026 to 2029, the company plans to add 150-190 new stores, approximately 1.34 to 1.70 times the total number of stores opened over the past decade.

Valuation Soars Nearly 300% in Three Months; Tomato Capital Exits Fully Before IPO The capital-intensive direct-operation model limits expansion speed, making COMMUNE less of a hot topic in the primary market.

Founded in 2016, the company did not see its first capital increase until February 2021. The prospectus indicates that Hillhouse Capital subscribed to RMB 111,110 in registered capital with an equivalent of USD 11.1 million, resulting in a post-money valuation of RMB 1 billion. Based on its over 70 stores at the time, COMMUNE's per-store valuation was less than RMB 15 million, significantly lower than HELENS's RMB 50 million per-store valuation, Heytea's RMB 75 million, and the nearly RMB 100 million valuations of brands like Tiger Pantry and Momo Dim Sum.

In March 2022, 98 Endeavors LLC, wholly owned by founding shareholder Paul Theodore Gelinas, transferred 1.9048 million ordinary shares to Dayone Capital for a consideration of USD 4.731 million; transferred 326,500 ordinary shares to Tomato Capital for USD 856,100; and transferred 457,100 ordinary shares to Hillhouse Capital for USD 1.1354 million. Following this share transfer, the ordinary shares were converted into Pre-A+ series preferred shares, with the three institutions holding 1.7%, 0.3%, and 0.4% stakes, respectively. Based on this, COMMUNE's valuation in 2022 was approximately USD 278-285 million, equivalent to RMB 1.87-1.917 billion.

However, just three months later, Dayone Capital and Hillhouse Capital again entered into share subscription agreements with the company, subscribing for 2.2222 million shares and 533,300 shares, respectively, at USD 4.97 per share, injecting a total of USD 15.5809 million. Post-transaction, COMMUNE's valuation skyrocketed to RMB 7.16 billion, a staggering increase of 273.5%-282.9% from the March valuation. Calculated using the 2022 average USD-RMB exchange rate, the company's valuation in this round exceeded USD 1 billion, successfully entering unicorn status.

Without significant changes in its fundamental operations, COMMUNE's valuation nearly tripled, possibly to attract further funding or prepare for an IPO. Yet, this momentum seemed to halt abruptly; COMMUNE's last funding round was in 2022, and its IPO process saw no progress for a long time.

On December 26, 2025, Tomato Capital, which invested in the Pre-A+ round, suddenly exited its position fully, transferring its shares to TWTCMTQ Catering Investment Limited, an overseas entity wholly owned by founder Tang Weitang, for a consideration of USD 3.4935 million. Based on this transaction, COMMUNE's latest valuation is approximately USD 1.127 billion, equivalent to RMB 8.05 billion, only a slight 12.4% increase from the A+ round valuation. Tomato Capital achieved an approximate 4.08x return on this investment.

Tomato Capital's decision to exit before the IPO is understandable. On one hand, HELENS has become a "penny stock" on the Hong Kong Exchange, with a market capitalization of less than HKD 1.2 billion, having evaporated 94.6% since its first trading day. Since its secondary listing in Singapore in 2024, trading activity has been extremely low, with an average daily turnover of just RMB 12,900, somewhat diminishing the growth prospects imagined for the tavern business.

On the other hand, industry competition is intensifying. According to Frost & Sullivan's "2025 China Catering Industry Development White Paper," the domestic tavern industry features numerous brands, low chainization rates, and a market structure that is not yet solidified. Leading brands like Ubrew Craft Beer and Taishan Original Juice Beer each have over 1,000 stores; mid-tier brands such as Fresh Beer Fulujia and Delunbao Craft Fresh Beer cater to mass consumption needs; while smaller brands like Zebra Craft Beer and Insomnia Penguin Craft Tavern break through with unique features and precise positioning. The question remains whether COMMUNE can maintain its position in Tier 1 and 2 cities by increasing store density, and what strategy it should adopt for lower-tier markets—clear answers are still urgently needed. (Source: "2025 China Catering Industry Development White Paper")