[Sa Sa International Holdings Limited Annual Report Supplementary Announcement](index=1&type=section&id=Supplementary%20Announcement) This supplementary announcement provides additional details regarding the Company's 2022 Share Option Scheme for the annual reports ended March 31, 2024, and 2025 [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background%20of%20the%20Announcement) This announcement provides supplementary information for the annual reports concerning the 2022 Share Option Scheme - This announcement is a supplementary document to the annual reports for the years ended March 31, 2024, and March 31, 2025[2](index=2&type=chunk) - The supplementary information provides additional details related to the 2022 Share Option Scheme, as required by Listing Rule 17.09(7)[2](index=2&type=chunk) [Supplementary Details of the Share Option Scheme](index=1&type=section&id=Supplementary%20Details%20of%20the%20Share%20Option%20Scheme) The announcement clarifies the share option acceptance terms, requiring a HKD 1.00 payment and acceptance within 30 days - Grantees must pay **HKD 1.00** to the Company as consideration when accepting the share option offer[2](index=2&type=chunk) - The acceptance offer for share options must be completed within **30 days** from the grant date[2](index=2&type=chunk) [Other Information](index=1&type=section&id=Other%20Information) The Company confirms the supplementary information does not alter other annual report content, with the announcement authorized by the Board - The Company confirms that, apart from the additional information disclosed herein, other contents of the annual reports remain unchanged[3](index=3&type=chunk) - The announcement is issued by Chairman and Chief Executive Officer Dr. Simon Kwok Siu Ming on behalf of the Board, with a complete list of Executive Directors and Independent Non-executive Directors appended[4](index=4&type=chunk)[5](index=5&type=chunk)

[Financial Highlights](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Financial Highlights](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For FY2024/25, the Group's turnover and core profit both decreased year-on-year, with turnover at HKD 3.94 billion and core profit at HKD 107 million, while maintaining a robust financial position and a 70% core profit payout ratio FY2024/25 Financial Summary | Metric | 2024/25 Fiscal Year | Year-on-Year Change | | :--- | :--- | :--- | | **Turnover** | 3,941.7 Million HKD | -9.7% | | **Gross Profit** | 1,570.7 Million HKD | -11.9% | | **Gross Margin** | 39.8% | -1.0 Percentage Point | | **Profit for the Year** | 77.0 Million HKD | -64.8% | | **Core Profit*** | 107.0 Million HKD | -51.1% | | **Basic EPS** | 2.5 HK Cents | -4.6 HK Cents | | **Basic Core EPS*** | 3.5 HK Cents | -3.6 HK Cents | | **Final Dividend** | 1.7 HK Cents | - | | **Payout Ratio** | ~70% (based on core profit) | - | *Excluding provision for Mainland China store closure costs Robust Financial Position (As of March 31, 2025) | Metric | Amount | | :--- | :--- | | **Total Available Funds** | 686.8 Million HKD | | **Total Cash** | 371.1 Million HKD | | **Current Ratio** | 1.6 Times | Asia Retail Network and Sales Performance (As of March 31, 2025) | Region | Number of Sales Points | Offline Sales Change | | :--- | :--- | :--- | | Hong Kong and Macau | 84 | -12.9% | | Mainland China* | 18 | -38.2% | | Southeast Asia | 72 | +15.4% | | **Total** | **174** | - | *The Group plans to close all Mainland China offline stores by June 30, 2025 Group Turnover Geographical Distribution (For the year ended March 31, 2025) | Region | Proportion | | :--- | :--- | | Hong Kong and Macau | 75.9% | | Mainland China | 13.2% | | Southeast Asia | 10.6% | | Others | 0.3% | [Strategic Report](index=18&type=section&id=%E7%AD%96%E7%95%A5%E5%A0%B1%E5%91%8A) [Three Key Development Strategies](index=18&type=section&id=%E8%8E%8E%E8%8E%8E%E3%80%8C%E7%B7%A0%E9%80%A0%E7%BE%8E%E9%BA%97%E4%BA%BA%E7%94%9F%E3%80%8D%E7%9A%84%E4%B8%89%E5%A4%A7%E7%99%BC%E5%B1%95%E7%AD%96%E7%95%A5) The Group's 'Creating a Beautiful Life' mission is supported by three core strategies: people-centricity, sourcing global trend products, and building an OMO omnichannel experience for sustainable growth - The Group's three core development strategies include: - **People-centricity**: Leveraging digitalization to analyze consumer preferences and providing quality shopping experiences through professional beauty consultants[51](index=51&type=chunk) - **Sourcing global quality trend products**: Collaborating closely with trend brands to build an attractive portfolio of flagship products[52](index=52&type=chunk) - **Online-Merge-Offline (OMO)**: Establishing an efficient sales network based on regional consumption habits to enhance customer activity and repurchase rates[53](index=53&type=chunk) - To implement the "People-centricity" strategy, the Group will focus on four key areas: - **Next-Generation Customer Relationship Management (CRM)**: Unifying regional membership mechanisms to provide personalized value-added services[55](index=55&type=chunk) - **Enhanced Digital Management**: Centralizing operational data management to improve decision-making efficiency and accuracy[55](index=55&type=chunk) - **Strengthened OMO Operating Model**: Enhancing technological capabilities to offer diverse shopping and pickup options[55](index=55&type=chunk) - **Focus on Talent Development**: Fostering two-way interaction between the company and employees to enhance employee skills[55](index=55&type=chunk) [Product and Brand Strategy](index=19&type=section&id=%E6%90%9C%E7%BE%85%E5%85%A8%E7%90%83%E6%9C%80%E5%84%AA%E8%B3%AA%E7%9A%84%E6%BD%AE%E6%B5%81%E7%94%A2%E5%93%81) The Group optimizes its brand portfolio and inventory using data analytics, focusing on building a strong exclusive brand lineup for higher loyalty and profitability, offering over 600 international and 120 exclusive brands Product Portfolio Overview (As of March 31, 2025) | Metric | Quantity/Range | | :--- | :--- | | **International Beauty Brands** | Over 600 | | **Exclusive Agency Brands** | Over 120 | | **Product Categories** | Over 9,000 | | **Product Price Range** | HKD 1 – HKD 5,000 | - The Group is committed to building a strong lineup of exclusive brands, as they provide greater influence in strategy, positioning, marketing, pricing, and sales channels, helping the Group stand out among retailers, attract partners, and maintain ideal profitability[60](index=60&type=chunk) - Sa Sa establishes long-term partnerships with brands and suppliers, leveraging omnichannel sales and social networks to comprehensively tell brand stories and collect customer feedback for product development, pricing, and promotion decisions, creating synergistic effects[58](index=58&type=chunk) [Omnichannel Strategy](index=22&type=section&id=%E7%B7%9A%E4%B8%8A%E7%B7%9A%E4%B8%8B%E8%9E%8D%E5%90%88%E7%9A%84%E5%85%A8%E6%B8%A0%E9%81%93%E8%B3%BC%E7%89%A9%E6%97%85%E7%A8%8B) The Group enhances its omnichannel sales network by leveraging online platforms' 'infinite shelf' and social media to complement offline operations, aiming to boost brand influence and customer engagement across its 174 retail stores Retail Store Geographical Distribution (As of March 31, 2025) | Region | Number of Retail Stores | | :--- | :--- | | Hong Kong and Macau | 84 | | Mainland China | 18 | | Southeast Asia | 72 | | **Total** | **174** | - The Group will leverage various popular social media platforms to develop and review the effectiveness of online operating models, utilizing advantages like live commerce and online stores' "infinite shelves" to complement offline operational limitations, meeting customer needs and enhancing social media influence[65](index=65&type=chunk) [Chairman's Statement](index=27&type=section&id=%E4%B8%BB%E5%B8%AD%E7%8D%BB%E8%BE%9E) [Chairman's Statement](index=27&type=section&id=%E4%B8%BB%E5%B8%AD%E7%8D%BB%E8%BE%9D) Chairman Dr. Simon Kwok highlights the Group's steady development despite global uncertainties, with FY2024/25 turnover at HKD 3.94 billion and core profit at HKD 107 million, driven by strategic shifts in Mainland China and Southeast Asia, while maintaining a stable 70% core profit payout ratio FY2024/25 Performance Overview | Metric | Amount | | :--- | :--- | | **Overall Turnover** | 3,941.7 Million HKD | | **Core Profit** | 107.0 Million HKD | - Hong Kong and Macau's offline turnover year-on-year decline narrowed from **20.1% in Q1** to **4.4% in Q4**, primarily benefiting from tourism stimulus measures like "multiple-entry visas" and the "mega event economy"[88](index=88&type=chunk) - Group business strategy adjustments: - **Mainland China**: Due to online retail dominance (80%), the Group plans to close all offline stores by end of June 2025, focusing resources on online business to achieve profitability in H2 FY2025/26[89](index=89&type=chunk) - **Southeast Asia**: Both online and offline sales recorded double-digit growth, but the Group will closely monitor variables arising from 2025 tariff issues[89](index=89&type=chunk) - The Board recommends a final dividend of **1.7 HK cents per share**, bringing the total annual dividend to **2.45 HK cents per share**, representing approximately **70% of the core profit** for the year, maintaining a consistent and stable dividend policy[89](index=89&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Performance Summary](index=29&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%91%98%E8%A6%81) For FY2024/25, the Group's turnover decreased by **9.7%** to **HKD 3.94 billion**, with profit for the year down **64.8%** to **HKD 77.0 million**, primarily due to weak Hong Kong and Macau offline sales, partially offset by slight online growth Consolidated Income Statement Summary (Million HKD) | Metric | 2025 Fiscal Year | 2024 Fiscal Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Turnover** | 3,941.7 | 4,367.5 | -9.7% | | **Gross Profit** | 1,570.7 | 1,783.4 | -11.9% | | **Operating Profit** | 106.3 | 285.1 | -62.7% | | **Profit for the Year** | 77.0 | 218.9 | -64.8% | - Offline sales year-on-year decline narrowed from **17.4% in H1** to **6.2% in H2**, with a full-year decline of approximately **11.9%**. Online sales slightly increased by **1.2%** to **HKD 715 million**, primarily driven by growth in the Southeast Asian market[113](index=113&type=chunk) - Excluding a one-off provision of **HKD 30.0 million** for Mainland China store closure costs, core profit was **HKD 107 million**. Basic core EPS was **3.5 HK cents**. The Board recommends a final dividend of **1.7 HK cents per share**, bringing the total annual dividend to **2.45 HK cents per share**, with a payout ratio of approximately **70% of core profit**[115](index=115&type=chunk) [Market Overview](index=30&type=section&id=%E5%B8%82%E5%A0%B4%E6%A6%82%E8%A6%BD) The global economy faces geopolitical, inflation, and tariff challenges, while Hong Kong and Macau adapt to changing consumption patterns, Mainland China's beauty retail undergoes fierce competition, and Southeast Asia's e-commerce thrives amidst tariff uncertainties - **Hong Kong and Macau**: Local residents' cross-border travel to Mainland China has become normalized, impacting local footfall. Meanwhile, visa measures like "multiple-entry visas" are expected to inject momentum into the tourism retail sector. Mainland Chinese tourists' consumption patterns are shifting, showing a greater willingness to try niche brands, which presents opportunities for the Group to develop exclusive brands[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) - **Mainland China**: The beauty retail industry is highly competitive and undergoing an adjustment period. Online content has become the mainstream sales model, with a market preference for cost-effective and functional products, creating opportunities for domestic and niche brands[108](index=108&type=chunk) - **Southeast Asia**: The economy continues to recover, with high internet penetration and thriving e-commerce. However, tariff issues starting from 2025 introduce uncertainty for local trade[109](index=109&type=chunk)[110](index=110&type=chunk) [Business Review](index=33&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's business review by region shows Hong Kong and Macau as the main revenue source despite a **12.3%** turnover decline, Mainland China down **10.5%** due to adjustments, and Southeast Asia up **14.7%**, with offline sales comprising **81.9%** of total turnover FY2024/25 Turnover by Market (Million HKD) | Market | Offline | Online | Total Turnover | Year-on-Year Change (%) | % of Total Turnover | | :--- | :--- | :--- | :--- | :--- | :--- | | **Hong Kong and Macau** | 2,792.2 | 199.6 | 2,991.8 | ▼ 12.3% | 75.9% | | **Mainland China** | 102.6 | 417.9 | 520.5 | ▼ 10.5% | 13.2% | | **Southeast Asia** | 331.5 | 88.1 | 419.6 | ▲ 14.7% | 10.6% | | **Others** | – | 9.8 | 9.8 | ▼ 5.8% | 0.3% | | **Total** | **3,226.3** | **715.4** | **3,941.7** | **▼ 9.7%** | **100.0%** | [Hong Kong and Macau](index=34&type=section&id=1.%20%E9%A6%99%E6%B8%AF%E5%8F%8A%E6%BE%B3%E9%96%80) Hong Kong and Macau turnover decreased by **12.3%** to **HKD 2.99 billion**, with profit down **45.0%** to **HKD 129 million**, as offline sales decline narrowed and online sales reached **HKD 199 million** with **6.7%** penetration - Offline sales decline in Hong Kong and Macau significantly narrowed from **-19.4% in H1** to **-6.3% in H2**, primarily due to tourism stimulus measures driving footfall recovery and the Group's product portfolio optimization[130](index=130&type=chunk)[131](index=131&type=chunk) - As of March 31, 2025, the Group operated **84 stores** in Hong Kong and Macau, a net increase of **2 stores**. The number of stores in core tourist areas was **26**, compared to **45** pre-pandemic[132](index=132&type=chunk) - Hong Kong and Macau online business penetration increased from **0.1% pre-pandemic** to **6.7%**. Live commerce showed initial effectiveness, contributing **18.3%** of total online sales in Hong Kong and Macau[133](index=133&type=chunk)[136](index=136&type=chunk) [Mainland China](index=37&type=section&id=2.%20%E4%B8%AD%E5%9C%8B%E5%85%A7%E5%9C%B0) Due to weak consumption and online trends, the Group will close all Mainland China offline stores by June 30, 2025, focusing on online business, which contributed **80.3%** of the **HKD 520 million** turnover, with market loss narrowing to **HKD 14.9 million** - The Group decided to close all Mainland China offline stores by **June 30, 2025**, to concentrate resources on developing online business, aligning with local consumption trends[141](index=141&type=chunk) - Mainland China's online turnover for the fiscal year reached **HKD 418 million**, a slight year-on-year increase of **0.6%**, accounting for **80.3%** of the region's total sales. The Group's proprietary WeChat mini-program saw a **13.4%** year-on-year increase in Monthly Active Users (MAU)[146](index=146&type=chunk)[148](index=148&type=chunk) [Southeast Asia](index=39&type=section&id=3.%20%E6%9D%B1%E5%8D%97%E4%BA%9E) Southeast Asia's total sales grew **14.7%** to **HKD 420 million**, with offline sales up **15.4%** and online sales up **12.4%**, despite a **HKD 5 million** loss due to re-entry costs in Singapore where **5 stores** were reopened - Southeast Asia's total sales reached **HKD 419.6 million**, a year-on-year increase of **14.7%**. Offline sales accounted for **79.0%**, and online sales for **21.0%**[151](index=151&type=chunk) - The Group re-entered the Singapore offline market in **December 2023**, operating **67 stores in Malaysia** and **5 stores in Singapore** by fiscal year-end[154](index=154&type=chunk)[155](index=155&type=chunk) - Online business operates through third-party platforms like Shopee, Lazada, and Zalora, covering Singapore, Malaysia, the Philippines, and Thailand, maintaining a leading position in the "Beauty & Health" category across multiple platforms[158](index=158&type=chunk) [Future Outlook](index=41&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) Facing uncertain global conditions, the Group will remain agile, adapting product offerings, accelerating digital upgrades, and enhancing OMO to achieve sustainable profit growth through increased sales and gross profit while maintaining stable gross margins - The Group will closely monitor market changes and strengthen inter-departmental collaboration to maintain and enhance market competitiveness with greater flexibility and responsiveness[160](index=160&type=chunk) - The core strategy is to create a thoughtful, comprehensive shopping journey, aiming for sustainable profit enhancement by pursuing dual growth in sales and gross profit while maintaining stable gross margins[160](index=160&type=chunk) [Financial Position](index=41&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E6%B3%81) The Group maintains a robust financial position with **HKD 1.16 billion** in total equity and **HKD 687 million** in available funds as of March 31, 2025, featuring zero gearing and 103 inventory turnover days Capital and Liquidity Position (As of March 31, 2025) | Metric | Amount (Million HKD) | | :--- | :--- | | **Total Equity** | 1,157.7 | | **Working Capital** | 465.3 | | **Cash and Bank Balances** | 371.1 | | **Undrawn Bank Facilities** | 315.7 | | **Total Available Funds** | 686.8 | - As of March 31, 2025, and 2024, the Group's gearing ratio (total borrowings to total equity) was **zero**[164](index=164&type=chunk) - The Group's inventory stood at **HKD 670 million**, with inventory turnover days increasing by **3 days to 103 days**[167](index=167&type=chunk) [Environmental, Social and Governance Report](index=50&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Environmental Protection (Our Planet)](index=56&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E5%9C%B0%E7%90%83) The Group is committed to reducing environmental impact, achieving its **70%** GHG emission reduction target for Scope 1 and 2, with total emissions down **2.1%** to **5,956 tonnes CO2e**, and significantly reducing packaging material usage, including a **17.6%** decrease in shopping bag usage - The Group has achieved its 2025 reduction target for Scope 1 and 2 greenhouse gas emissions, decreasing them by **70%** compared to the 2014/15 baseline year[247](index=247&type=chunk)[248](index=248&type=chunk) Greenhouse Gas Emissions Performance | Metric | 2024/25 Fiscal Year | Year-on-Year Change | | :--- | :--- | :--- | | **Total GHG Emissions** | 5,956 Tonnes CO2e | -2.1% | | **Electricity Consumption** | 11,697 MWh | -3.3% | | **Carbon Intensity (per square meter)** | 130 kg CO2e | -4.1% | Packaging Material Usage Change | Material | 2024/25 Fiscal Year | Year-on-Year Change | | :--- | :--- | :--- | | **Plastic Shopping Bags** | 1,173,057 Units | -17.6% | | **Paper Cartons (Offline Business)** | 104,791 kg | -26.9% | | **Paper Cartons (Online Business)** | 91,357 kg | -37.8% | | **Air Cushions** | 8,442 kg | -22.7% | [Employee Care (Our People)](index=68&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E5%93%A1%E5%B7%A5) The Group prioritizes employee care, with **1,544** staff, **79.4%** female, and **96.6%** receiving training, averaging **180.5 hours** per person, while also improving occupational health and safety with reduced accidents and lost workdays Employee Training Overview | Metric | 2024/25 Fiscal Year | Year-on-Year Change | | :--- | :--- | :--- | | **Proportion of Employees Trained** | 96.6% | +7.5 Percentage Points | | **Total Training Hours** | 278,765 Hours | +30.9% | | **Average Training Hours per Employee** | 180.5 Hours | +41.8% | - The Group demonstrates high gender diversity, with **79.4%** female employees. At the leadership level, **63%** of directors are female, and **65%** of management are female[285](index=285&type=chunk)[281](index=281&type=chunk) Occupational Health and Safety Performance | Metric | 2024/25 Fiscal Year | Year-on-Year Change | | :--- | :--- | :--- | | **Work-related Accidents** | 10 Cases | -16.7% | | **Total Lost Workdays due to Accidents** | 74 Days | -69.0% | | **Work-related Fatalities** | 0 | Unchanged | [Customer Responsibility (Our Customers)](index=77&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E9%A1%A7%E5%AE%A2) The Group prioritizes product quality and customer rights, evidenced by a **68.5%** increase in compliments for offline stores, continuous "Quality Tourism Services" recognition, and a strategic focus on expanding sustainable beauty product offerings Product Responsibility Performance | Metric | 2024/25 Fiscal Year | Year-on-Year Change | | :--- | :--- | :--- | | **Compliments Received by Offline Stores** | 214 Cases | +68.5% | | **Complaints Received by Offline Stores** | 59 Cases | +7.3% | | **Product Recalls due to Safety and Health Reasons** | 0 | Unchanged | | **Hong Kong Retail Management Association Mystery Shopper Score** | 91.39 Score | +1.7% | - The Group actively promotes sustainable beauty products, offering over **280 clean beauty products** from more than **30 brands** in stores, and launched **37 exclusive products** using FSC-certified paper packaging[348](index=348&type=chunk) - The Group has established a comprehensive information security system to protect consumer personal information and implemented detailed information security policies, with no significant information security or customer privacy incidents occurring this fiscal year[357](index=357&type=chunk) [Community Investment (Our Community)](index=83&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E7%A4%BE%E5%8D%80) The Group is committed to community investment, contributing **HKD 2.0 million** this fiscal year, a **17.6%** increase, and **HKD 35.6 million** cumulatively since 2013, while fostering future retail leaders through university partnerships and earning "Caring Company" recognition for over 20 years - This fiscal year, the Group invested **HKD 2.0 million** in the community, a **17.6%** year-on-year increase. Since its establishment in 2013, the charitable foundation has cumulatively contributed **HKD 35.6 million**[369](index=369&type=chunk)[370](index=370&type=chunk) - The Group has been awarded the "Caring Company" logo by the Hong Kong Council of Social Service for over **20 consecutive years**, acknowledging its long-term efforts in corporate social responsibility[372](index=372&type=chunk) - The Group actively collaborates with institutions like Lingnan University and The Chinese University of Hong Kong to host business case competitions and offers summer internship programs, dedicated to nurturing future retail industry elites[373](index=373&type=chunk)[374](index=374&type=chunk)[375](index=375&type=chunk) [Corporate Governance and Risk Management](index=95&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E8%88%87%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) [Corporate Governance Report](index=95&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) The Group maintains high corporate governance standards, complying with most code provisions, with a diverse Board of **8 directors** including **50% INEDs** and **62.5% female**, demonstrating strong independence and active participation in governance - Except for the combined roles of Chairman and Chief Executive Officer (Dr. Simon Kwok), the Company has complied with all code provisions of the Corporate Governance Code. The Board believes this structure facilitates the execution of business strategies and maximizes operational efficiency[416](index=416&type=chunk) - The Board's composition demonstrates high independence and diversity, with **4 Independent Non-Executive Directors (44.4%)** and **5 female directors (55.6%)** among its **9 members**. The Audit Committee is composed entirely of Independent Non-Executive Directors[422](index=422&type=chunk)[425](index=425&type=chunk) - During the year, **5 Board meetings** were held with an average attendance rate of **97.2%**; **19 Board committee meetings** were held, with attendance rates for all committees exceeding **96%**, indicating active director participation in corporate governance[415](index=415&type=chunk)[481](index=481&type=chunk) [Enterprise Risk Management Report](index=119&type=section&id=%E4%BC%81%E6%A5%AD%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%A0%B1%E5%91%8A) The Group's systematic enterprise risk management framework, led by the Risk Management Committee, identifies and mitigates 10 major risks across strategic, operational, financial, and compliance areas, with consumer behavior, product competitiveness, cybersecurity, and talent acquisition risks trending upwards - The Group's enterprise risk management framework comprises three main components: risk governance, risk infrastructure and oversight mechanisms, and risk ownership allocation, employing both bottom-up and top-down approaches to identify and manage risks[524](index=524&type=chunk)[526](index=526&type=chunk) Summary of Key Risks and Mitigation Measures | Key Risk | Mitigation Plan | Risk Assessment Trend | | :--- | :--- | :--- | | **1. Consumer Behavior and Lifestyle** | Focus on exclusive brands, strengthen new product categories, promote OMO strategy | Upward | | **2. Product Competitiveness** | Conduct market research, invest in data analytics, introduce emerging brands, broaden product portfolio | Upward | | **3. Product Quality and Counterfeit Goods** | Strict quality control, participate in "No Fakes Pledge" scheme, offer 30-day shopping guarantee | Stable | | **4. Market Concentration Risk** | Diversify sales channels, formulate market-specific strategic plans, strengthen social media marketing | Downward | | **5. Cybersecurity and Personal Data Privacy** | Develop cyber risk management processes, conduct cybersecurity training, implement disaster recovery testing | Upward | | **7. Talent Acquisition, Retention, and Training** | Expand recruitment channels, implement management trainee programs, provide systematic training | Upward | | **8. Technology and Artificial Intelligence** | Actively utilize AI technologies (e.g., AI smart beauty advisors), establish AI privacy protection systems | Upward | [Directors' Report](index=132&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) This report outlines the Group's FY2024/25 principal business, performance, and statutory disclosures, including the recommended **1.7 HK cents** final dividend, director and major shareholder interests, and public float compliance - The Board recommends a final dividend of **1.7 HK cents per share**, which, together with the interim dividend of **0.75 HK cents per share** already paid, totals **HKD 76,028,000** in dividends for the year[566](index=566&type=chunk) - As of March 31, 2025, Dr. Simon Kwok and Dr. Eleanor Kwok jointly held approximately **64.05%** equity interest in the Company, serving as its controlling shareholders[622](index=622&type=chunk) - Save for the disclosed share option scheme, neither the Company nor its subsidiaries repurchased, sold, or redeemed any listed securities during the year[573](index=573&type=chunk)[609](index=609&type=chunk) [Investor Relations Report](index=127&type=section&id=%E6%8A%95%E8%B3%87%E8%80%85%E9%97%9C%E4%BF%82%E5%A0%B1%E5%91%8A) [Investor Relations Report](index=127&type=section&id=%E6%8A%95%E8%B3%87%E8%80%85%E9%97%9C%E4%BF%82%E5%A0%B1%E5%91%8A) The Group fosters long-term investor relations through transparent, multi-channel communication, leveraging digital platforms and investor events to convey strategies and market dynamics, while maintaining a high payout ratio of approximately **70%** of core profit - The Group employs diverse and digital communication platforms, including results briefings, webcasts, quarterly conference calls, social media, and the company website, to ensure highly transparent, real-time communication with global investors[539](index=539&type=chunk)[543](index=543&type=chunk)[545](index=545&type=chunk) Share Price and Market Capitalization Performance | Fiscal Year | Closing Price as of March 31 (HKD) | Market Capitalization (Billion HKD) | | :--- | :--- | :--- | | **2024/25** | 0.62 | 1.9 | | **2023/24** | 0.83 | 2.6 | Dividend Information | Fiscal Year | Total Dividend Per Share (HK Cents) | Dividend Yield | Payout Ratio | | :--- | :--- | :--- | :--- | | **2024/25** | 2.45 | 3.9% | 70%* | | **2023/24** | 5.0 | 6.0% | 71% | *Based on core profit [Financial Statements and Notes](index=147&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A%E5%8F%8A%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Independent Auditor's Report](index=147&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A) PricewaterhouseCoopers issued an unqualified opinion on the Group's FY2025 consolidated financial statements, confirming fair presentation, with key audit matters including retail store asset impairment and inventory provision, where management's judgments were supported - The auditor believes that the consolidated financial statements fairly and truthfully reflect the Group's financial position in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[644](index=644&type=chunk) - Key audit matters include: - **Impairment of Retail Store Assets**: Due to significant management judgment involved in identifying impairment indicators and estimating recoverable amounts[652](index=652&type=chunk)[650](index=650&type=chunk) - **Inventory Provision**: Due to the large volume of inventory and the high degree of management judgment involved in estimating provisions[654](index=654&type=chunk) [Consolidated Financial Statements](index=152&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's audited consolidated financial statements for FY2025, showing total assets decreased to **HKD 2.33 billion**, net assets to **HKD 1.16 billion**, and net cash from operations at **HKD 506 million** Consolidated Income Statement Summary (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | **Turnover** | 3,941,704 | 4,367,496 | | **Gross Profit** | 1,570,682 | 1,783,355 | | **Operating Profit** | 106,332 | 285,134 | | **Profit for the Year Attributable to Owners of the Company** | 76,973 | 218,883 | Consolidated Statement of Financial Position Summary (HKD Thousand) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | 2,326,127 | 2,504,118 | | **Total Liabilities** | 1,168,384 | 1,252,029 | | **Total Equity** | 1,157,743 | 1,252,089 | Consolidated Cash Flow Statement Summary (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Generated from Operating Activities** | 506,377 | 585,179 | | **Net Cash Used in Investing Activities** | (117,770) | (61,898) | | **Net Cash Used in Financing Activities** | (547,121) | (362,559) | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | (158,514) | 160,722 | [Notes to the Consolidated Financial Statements](index=157&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) Notes to the financial statements detail accounting policies and data, showing Hong Kong and Macau as primary contributors, disclosing Mainland China store closure expenses, and reporting total lease liabilities of **HKD 659 million** and net inventory of **HKD 670 million** Segment Results (For the year ended March 31, 2025, HKD Thousand) | Segment | Turnover | Segment Results | | :--- | :--- | :--- | | **Hong Kong and Macau** | 2,991,827 | 128,568 | | **Mainland China** | 520,440 | (44,945) | | **Southeast Asia** | 419,593 | (5,040) | | **Others** | 9,844 | (1,610) | | **Total** | **3,941,704** | **76,973** | - Due to the Mainland China store closure plan, the Group recognized related expenses this fiscal year, including **HKD 17.224 million** for severance payments, **HKD 3.01 million** for early lease termination compensation, **HKD 5.905 million** for inventory provisions, and **HKD 0.4 million** for property and equipment impairment[744](index=744&type=chunk)[739](index=739&type=chunk) - As of March 31, 2025, the Group's total lease liabilities amounted to **HKD 659 million**, of which **HKD 312 million** were current liabilities[795](index=795&type=chunk)

Key Points - The article highlights significant stock movements in the Hong Kong and US markets, with various companies experiencing notable gains and losses due to recent developments and announcements [1][2][3][4][5] Hong Kong Market Highlights - China Rare Earth Holdings (03788) surged nearly 20%, with a year-to-date increase of 320%, as the company proposed a spin-off of its gold segment for independent listing on the Hong Kong Stock Exchange [1] - Innovent Biologics (09969) rose nearly 4% after announcing the clinical approval of its new ADC innovative drug ICP-B794 [1] - North Sea Kangcheng - B (01228) increased over 50%, with its stock price doubling in three days, marking it as a rare disease stock in the Hong Kong market [1] - Hong Kong Travel (00308) saw a rise of over 24%, achieving a year-to-date stock price doubling, driven by market speculation on stablecoin cross-border payment scenarios [1] - CSPC Pharmaceutical Group (01093) gained nearly 3% after receiving drug registration approval for Mesalazine enteric-coated tablets, enhancing its product line in the immune system treatment sector [1] - Ruian Real Estate (00272) rose over 4%, with a cumulative contract property sales amount for the first six months increasing by 457% year-on-year [1] - Cornerstone Pharmaceuticals - B (02616) increased over 3%, planning to raise HKD 467 million for clinical research on CS2009 [1] - Q Technology (01478) rose over 7%, with mobile camera module sales of 32.648 million units in June, a year-on-year increase of 1.5% [1] - Dekang Agriculture and Animal Husbandry (02419) increased by 6%, with a new cycle logic continuing to strengthen, and Tianfeng Securities set a target price of HKD 154 [1] - Contemporary Amperex Technology (03750) rose over 3%, reaching a new high since its listing, following a deepened strategic cooperation agreement with Geely Automobile [2] - Gaming stocks continued to rise, with Wynn Macau (01128) up 6.49%, New World Development (00200) up 6.15%, and others showing similar gains [2] - Gold stocks faced declines, with Golden Resources (GORO.US) dropping nearly 10% and others following suit [4] US Market Highlights - Stablecoin concept stocks continued to rise, with Tiger Brokers (TIGR.US) increasing over 8% [4] - Trump Media & Technology Group (DJT.US) rose over 2% as the company seeks SEC approval for a blue-chip cryptocurrency ETF [4] - Wolfspeed (WOLF.US) continued to rise, with stock prices increasing over 9% [4] - Intel (INTC.US) rose over 7% after announcing company-wide layoffs [4] - JD.com (JD.US) increased over 2% as it launched its "Double Hundred Plan" for its delivery service [4]

Group 1: Company Developments - Hunan Oubiao has been restricted from high consumption activities due to a contract dispute with Changsha Jincang Trading Co., Ltd, marking the eighth restriction this year [2] - Beijing Plant Doctor Cosmetics Co., Ltd has received approval for its IPO on the Shenzhen Stock Exchange, aiming to raise approximately 998 million yuan [3][4] - Sa Sa International announced plans to close all 18 offline beauty stores in mainland China by June 30, 2025, due to increasing operational pressures and a significant decline in sales [5] Group 2: Market Trends - Yingtong Holdings has successfully listed on the Hong Kong Stock Exchange, becoming the first publicly traded Chinese perfume company, with a market capitalization of approximately 2.72 billion HKD [6] - The trend of herbal ingredients in beauty products is gaining traction, with 76% of consumers preferring natural herbal products, driven by the "pure beauty" and "precise skincare" trends [9] - Korean cosmetics exports have surpassed those of the United States for the first time, reaching 3.606 billion USD in the first four months of the year, with a year-on-year growth of 20.3% [12] Group 3: Innovations and Leadership Changes - Byredo's founder and creative director Ben Gorham will step down, transitioning brand management to Puig Group, which acquired Byredo in 2022 [7] - Firmenich has launched a new fragrance design tool, ChériScentz, which utilizes neuroscience algorithms to enhance the fragrance creation process [10] - Estée Lauder has appointed Sara Staniford as the new vice president and general manager for its major makeup brands in the UK and Ireland, tasked with expanding market share [11]

Financial Performance Summary - The company's turnover decreased by 9.7% year-on-year (YoY), reaching HK$3,941 million[7] - Gross profit decreased by 11.9% YoY, amounting to HK$1,571 million[7] - Recurring profit saw a significant decline of 51.1% YoY, settling at HK$107 million[7] - Profit for the year experienced a substantial decrease of 64.8% YoY, recorded at HK$77 million[7] Regional Performance - Hong Kong & Macau turnover decreased by 12.3% YoY, totaling HK$2,992 million and contributing 75.9% to the group's turnover[8] - Mainland China turnover decreased by 10.5% YoY, reaching HK$520 million and accounting for 13.2% of the group's turnover[8] - Southeast Asia turnover increased by 14.7% YoY, amounting to HK$420 million and representing 10.6% of the group's turnover[8] Operational Adjustments - The company closed 14 offline stores in Mainland China to adjust its operating model[8] - The company will orderly close the remaining 18 offline stores in Mainland China to focus on developing online business[25] - The company added 2 new stores in HK & Macau and 3 new stores in Southeast Asia[20] Cash Flow and Financial Position - Cash inflow from operations was HK$137 million[7] - Cash on hand amounted to HK$371 million, with total available funds of HK$687 million (including undrawn borrowing facilities of HK$316 million)[17] Strategy and Outlook - The company aims to strengthen operational efficiency through curated product portfolio and precise marketing[31] - The company is aiming for growth in both sales and gross profit while maintaining a stable gross profit margin[31]

Core Viewpoint - Sa Sa International Holdings Limited reported a significant decline in revenue and profit for the fiscal year ending March 31, 2025, indicating challenges in its business operations and a shift in consumer behavior towards online shopping [1][2]. Financial Performance - The company achieved a revenue of HKD 3.942 billion, a year-on-year decrease of 9.7% [2]. - Net profit plummeted by 64.8% to HKD 76.973 million [1][2]. - The gross profit margin decreased by 1.0 percentage point to 39.8% [2]. Business Strategy and Market Position - Sa Sa International plans to close all 18 physical stores in mainland China by June 30, 2025, transitioning to a supplier model to focus on online sales [5]. - The decision to close physical stores is driven by the fact that over 80% of local revenue comes from online business, reflecting a consumer shift towards e-commerce [5]. - The company aims to enhance its presence on popular social media platforms and digital channels, utilizing live streaming and mini-programs to boost brand visibility and competitiveness [5]. Operational Challenges - The company's online shopping platforms, such as its WeChat mini-program, have faced operational issues, including a closure announcement and long delivery times for products shipped from Hong Kong [5][7]. - Despite a recent sales increase of 4.5% to HKD 811.2 million for the latest fiscal quarter, the company still lags behind competitors in online market positioning [10].

近日，知名美妆连锁店品牌莎莎国际控股有限公司（下称"莎莎国际"）宣布，决定在2025年6月30日前关闭中国内地所有线下店铺。 截图自莎莎国际财报。 莎莎国际年报净利润大跌超六成 莎莎于1978年成立，为亚洲著名美妆产品零售集团。集团于1997年于香港联合交易所有限公司主板上市，目前业务遍及香港及澳门特区、中国内地及东南 亚，销售逾600个产品品牌，涵盖护肤品、香水、化妆品、护发、身体护理产品、美肌保健产品及家用美容仪器等。在莎莎国际还未进入中国内地市场之 前，就有不少中国内地游客前往中国香港代购莎莎国际的化妆品，从莎莎国际代购甚至一度成为一门"致富"生意。 财报显示，截至2025年3月31日，莎莎国际在各地区共经营174间线下店铺。从规模上来看，目前莎莎国际全年营业额同比下跌9.7%至39.42亿港元，净利润 下滑64.8%至7697万港元。不过，得益于莎莎在中国内地的在线业务，年内(截至2025年3月31日)，中国内地在线营业额为4.18亿港元，同比上升0.6%，占集 团总在线营业额的58.4%。 线上销售成为主流，莎莎国际：专注发展线上业务 就此，南都、N视频记者采访莎莎国际：关闭内地所有线下店铺，最大考 ...

Core Viewpoint - The management of Sa Sa International has demonstrated confidence in the company's business and future prospects by purchasing a total of 3 million shares in the open market [1] Group 1: Management Share Purchases - Dr. Guo Shaoming, the Executive Director, Chairman, and CEO, along with Dr. Guo Luoguizhen, the Executive Director and Vice Chairman, purchased a combined total of 2 million shares through their jointly held entity, Sunrise Height Incorporated [1] - Mr. Zhong Mingjie, the Executive Director, Chief Financial Officer, and Company Secretary, acquired 1 million shares [1] - The share purchases took place between June 25 and June 26, 2025, indicating a strategic move by the management to increase their stake in the company [1]

Core Viewpoint - Sasa International, a Hong Kong beauty retail chain, is officially exiting the mainland China market by closing all offline stores by June 30, 2023, due to ineffective market coverage and a shift towards online sales, which account for 80% of its revenue in the region [1][2][3] Group 1: Company Performance - As of March 31, 2023, Sasa International reported a 9.7% year-on-year decline in total revenue to HKD 3.942 billion, with net profit dropping 65% to HKD 76.97 million [2] - The company's mainland China business saw a 10.5% decrease in revenue to HKD 521 million, resulting in a loss of HKD 44.95 million [2] - Sasa has estimated and accrued severance costs of HKD 17.224 million and compensation for early lease termination of HKD 3.01 million related to the closure of its mainland stores [2] Group 2: Market Dynamics - The beauty retail landscape in mainland China has changed significantly, with e-commerce becoming the primary sales channel and domestic brands gaining market share due to competitive pricing and innovation [4][5] - Sasa's offline store model failed to adapt to the e-commerce impact, leading to high operational costs and inefficiencies [4][5] - The company plans to focus on online platforms, having expanded its presence to seven major third-party platforms, including Kuaishou and Pinduoduo, in the 2024/25 fiscal year [5] Group 3: Strategic Focus - Sasa International aims to concentrate resources on the Hong Kong market, where over 80% of its sales are generated, and will continue to seek suitable locations for new stores in traditional tourist areas [3] - The company acknowledges the need for a digital transformation and intends to enhance its online operations while monitoring changes in the mainland market [3][4]

Core Viewpoint - Sasa International has announced the closure of all its offline stores in mainland China by June 30, 2025, shifting focus to online business due to over 80% of revenue coming from online sales and a decline in customer foot traffic [3][8] Group 1: Store Closures - Sasa has closed multiple stores in Beijing, with reports indicating that all 18 offline stores in mainland China will be shut down [1][3] - The decision to close stores is attributed to the inability to achieve economies of scale with the current number of stores [3] - The brand's offline presence has significantly decreased from a peak of 80 stores to just 18 as of September 30, 2022 [3] Group 2: Financial Performance - For the fiscal year ending March 31, 2025, Sasa reported a 9.7% decline in total revenue to HKD 39.42 billion, with net profit dropping 64.8% to HKD 76.97 million [7] - The performance in mainland China was particularly weak, with revenue down 10.5% to HKD 5.21 billion and offline sales plummeting 38.2% to HKD 1.03 billion [7] Group 3: Online Transition Challenges - Sasa's online transformation has been hindered by high customer acquisition costs and low customer loyalty among price-sensitive consumers [8][10] - The company has attempted to expand its online presence through various platforms, but its efforts have not yielded significant results [4][5] Group 4: Market Trends and Expert Opinions - Experts suggest that the increasing operational costs of physical stores and declining customer visits are primary reasons for the closure of offline locations [8][10] - The beauty retail sector is witnessing a trend of offline store closures, with other brands like Olive Young and Watsons also reducing their physical footprint [8][10] - To succeed in the future, Sasa needs to focus on high-end products and enhance its digital capabilities to improve customer experience and operational efficiency [10]