Helens International Holdings reported profit attributable to shareholders of RMB50.3 million for the six months ended Jun 30, down 27.8 % year-on-year, as revenue slipped 34.0 % to RMB291.1 million. Management linked the decline to a smaller pool of self-operated and franchised outlets and softer same-store sales, partly offset by higher gross margins.

Basic earnings per share fell to RMB0.040 from RMB0.055 a year earlier. The board declared an interim dividend of RMB0.1051 per share, payable on or about Sep 30 to shareholders on the register as of Sep 19.

By activity, bar operations generated RMB183.1 million, down 41.1 % YoY, while franchise-related revenue, which includes product sales to “HiBeer Partnership” bars, eased 17.1 % to RMB108.0 million. Bar operations accounted for 63 % of group turnover; franchise activities contributed the remainder.

The revenue contraction was mitigated by stronger cost control. Contribution gross margin in self-operated bars rose to 74 % from 70 %, helped by an 80.2 % margin on the company’s own-brand drinks and improved supply-chain efficiencies. Profit before tax narrowed to RMB51.9 million, yet the margin edged up to 17.8 % from 15.7 % on lower staff, rental and utility costs.

Management noted that headwinds persisted in discretionary spending, with average daily turnover per existing store down 17.6 % YoY. The number of outlets increased slightly to 580 at end-June, driven by three additional “HiBeer Partnership” bars; self-operated units stood at 109.

Looking ahead, the group aims to 1) reopen or launch new self-operated bars in lower-cost sites, 2) accelerate the roll-out of “HiBeer Partnership” franchises, and 3) leverage supply-chain scale and space-design capability to develop “third-space” formats. Capital will also be channelled into product innovation and marketing to lift repeat patronage.

Chairman and chief executive Xu Bingzhong said the company would “continue to refine partner incentives, optimise in-store operations and expand both self-operated and franchise networks” to restore same-store momentum while preserving profitability.