Helens International, PC Partner report contrasting 2024 results after secondary listings on SGX

SINGAPORE - Two Hong Kong-listed firms with secondary listings on the Singapore Exchange (SGX) have had contrasting fortunes in 2024, with one warning of losses for the year and the other reporting a 4.3-time surge in earnings over the same period.

China bar operator Helens International Holdings on March 19 warned that it is expecting revenue to decline to between 730 million yuan (S$135 million) and 780 million yuan in 2024, down from 1.2 billion yuan in 2023. It cited weak consumer demand and the impact amid China’s property downturn.

Helens International, which also operates three Helen’s Bar outlets here in Orchard Central, Clarke Quay and Chijmes, added that it anticipates a net loss of 60 million yuan to 90 million yuan in 2024, compared with a net profit of 180.5 million yuan in 2023.

It attributed the losses to impairments as a result of a drop in the fair value of office properties amid China’s property downturn, network optimisation costs under a new business strategy, and expenses related to its secondary listing on SGX in July 2024.

As demand weakened in China, the company in 2024 embarked on a new business strategy of reducing its self-operated bar network while expanding its franchised outlets in China, where it now has 579 outlets.

After adjusting the numbers to exclude these one-off costs, however, the company said it made an adjusted net profit of as much as 120 million yuan for the year. The figures are preliminary and unaudited for now, the company said, adding that it will announce its final results for 2024 after a board meeting on March 31.

In contrast, video graphics card maker PC Partner Group on Feb 28 reported a 331 per cent year-over-year jump in net profit to HK$262.1 million (S$45 million), on the back of a 10 per cent jump in revenue to over HK$10 billion over the same period.

The results were driven by strong demand for PC Partner’s graphics cards following the launch of chipmaker Nvidia’s Super graphic processing units (GPUs) in January 2024. This was due to more gamers upgrading their systems for better performance with the cards, as well as higher margins from cutting down on advertising, the company said. 

PC Partner makes video graphics cards that use Nvidia and AMD GPUs for third-party customers globally. It also makes its own brand of Zotac, Inno3D and Manli cards, which it supplies directly in over 70 countries. PC Partner also designs and develops other PC-related products, such as mini-PCs and PC motherboards, under its Zotac brand or for other parties.

In 2024, the company said it also invested HK$123.3 million to set up its Singapore headquarters and a new factory in Batam, Indonesia. It also spent HK$21.4 million on its SGX listing in November 2024. 

Shares of PC Partner have jumped by more than 138 per cent since listing on SGX, and closed on March 19 at $2. Meanwhile, shares of Helens International, which reached a high of 59 cents in October 2024, closed flat at 36 cents compared with its first day of trading on SGX.

The developments also come amid efforts by a government-led review group to draw more listings on the SGX, including secondary listings. Preliminary moves to do so include simplifying the listing process and disclosure requirements for such firms.