Core Viewpoint - Sasa International is closing all its offline stores in mainland China by June 24, marking a complete exit from the market after 20 years of operation, as the company shifts focus to online business due to changing consumer preferences and the dominance of e-commerce [1][3][4]. Group 1: Store Closures - Sasa International has confirmed the closure of all its offline stores in mainland China, with a specific deadline of June 24 [1][3]. - The company had previously indicated in its fiscal report that it would close its remaining mainland stores by June 30, citing that over 80% of its revenue in the region comes from online sales [4][5]. - The decision to close stores is part of a broader trend among traditional beauty retailers struggling to adapt to the evolving market landscape [1][10]. Group 2: Historical Context and Performance - Sasa International, founded in Hong Kong in 1978, once thrived in the beauty retail sector, boasting over 200 stores globally, including 77 in mainland China at its peak [5][8]. - The company's revenue peaked at approximately HKD 89 billion in the 2015 fiscal year but has since declined, with revenue dropping to HKD 39 billion in the 2025 fiscal year [8][9]. - The decline in performance is attributed to increased competition and the rise of online shopping, which has diminished the appeal of traditional retail models [9][10]. Group 3: Strategic Shift to Online Business - Sasa International plans to concentrate resources on its online business following the closure of its physical stores, aiming to enhance profitability in mainland China [5][12]. - The company has begun to implement digital transformation strategies, including the introduction of a self-operated website and partnerships with social media platforms to reach consumers [9][12]. - The shift to online sales is seen as a necessary adaptation to meet changing consumer behaviors and preferences in the beauty retail market [4][12].

Core Viewpoint - Sasa International is undergoing a strategic realignment in response to intense competition in the beauty industry and the rapid growth of e-commerce, leading to the closure of all its remaining stores in mainland China by June 30, 2025 [1][3]. Group 1: Company Performance - For the fiscal year ending March 31, 2025, Sasa International reported a 9.7% year-on-year decline in total revenue to HKD 3.942 billion, with net profit dropping 64.8% to HKD 76.97 million [3]. - As of May 31, 2025, Sasa International had closed 9 stores, with the remaining 9 expected to close by June 30 [3][4]. Group 2: Market Dynamics - The company is experiencing a significant disparity in its mainland market, characterized by strong online performance and weak offline sales, with online channels accounting for 80.3% of revenue at HKD 4.18 billion, while offline channels contributed only 19.7% at HKD 1.03 billion [4]. - The shift in consumer behavior towards online shopping has prompted Sasa International to focus its resources on enhancing its online business and increasing brand visibility through social media and digital channels [4]. Group 3: Strategic Adjustments - Sasa International has allocated HKD 30 million for special closure costs, which will cover employee severance, store compensation, and inventory handling [4].

Core Viewpoint - Sa Sa International Holdings Limited has announced the closure of its last 18 offline stores in mainland China by June 30, marking its exit from the mainland offline retail market. The company's annual revenue for the fiscal year ending March 31, 2025, decreased by 9.7% to HKD 3.942 billion, with net profit plummeting by 64.8% to HKD 76.97 million [2][5]. Financial Performance - For the fiscal year 2024/25, Sa Sa International reported a total revenue of HKD 3.942 billion, a decline of 9.7% year-on-year [5]. - The net profit for the same period fell significantly by 64.8% to HKD 76.97 million [5]. - The core market of Hong Kong and Macau saw a revenue drop of 12.3% to HKD 2.992 billion, accounting for 75.9% of total revenue [5]. - The Southeast Asian market showed growth, with offline sales increasing by 15.4% to HKD 332 million [5]. Market Dynamics - The mainland China market is experiencing a "strong online, weak offline" trend, with total revenue declining by 10.5% to HKD 521 million, where online sales accounted for 80.3% of the revenue [6][8]. - Offline sales in mainland China plummeted by 38.2% to HKD 103 million [6]. Strategic Shift - Sa Sa International plans to focus resources on developing its online business, enhancing marketing efforts on popular social media platforms and digital channels to increase the visibility and competitiveness of its exclusive brands [9]. Historical Context - Sa Sa International entered the mainland market in 2005 and expanded its store count to 77 by the fiscal year 2021. However, competition from domestic beauty brands has eroded its market advantage, leading to a reduction in store numbers [8].

莎莎国际在财报中强调，尽管短期面临盈利压力，但公司仍将维持稳定的股息政策，以增强投资者信 心。未来，莎莎国际能否通过线上渠道和核心市场的深耕实现反弹，仍需时间检验。 2025年6月20日，亚洲知名美妆零售集团莎莎国际（00178.HK）正式宣布，将于6月30日前关闭中国内 地剩余的18家线下门店，全面退出该市场。这一决定标志着莎莎国际在中国内地长达20年的线下零售业 务正式终结。 本文系观察者网独家稿件，未经授权，不得转载。 莎莎国际在财报中提到，公司正通过社交媒体营销、直播带货及微信小程序等数字化工具加强与消费者 的互动，但面对本土美妆品牌和跨境电商的冲击，其线上增长空间仍面临挑战。 根据莎莎国际截至2025年3月31日的年度财报，2024/25财年公司营业额同比减少9.7%至39.42亿港元， 净利润暴跌64.8%至7697万港元。其中，中国内地市场表现尤为疲软：营业额同比减少10.5%至5.21亿港 元，线下渠道占比仅19.7%，且营业额同比大幅下滑38.2%至1.03亿港元。财报指出，内地线下门店的租 金成本高企、客流量持续下降，以及本土美妆品牌和电商平台的激烈竞争，是导致关店的核心原因。 相比之下， ...

Sa Sa International Holdings (00178) H2 2025 Earnings Call June 19, 2025 12:30 AM ET ...

Financial Performance - The group's revenue for the fiscal year ended March 31, 2025, was HKD 3,941.7 million, a decrease of 9.7% compared to HKD 4,367.5 million in the previous year[3]. - Gross profit fell by 11.9% to HKD 1,570.7 million, with a gross profit margin of 39.8%, down 1.0 percentage point from the previous year[5]. - Core profit, excluding one-time costs related to the closure of stores in mainland China, was HKD 107.0 million, a decline of 51.1% from HKD 218.9 million in the previous year[5]. - The total comprehensive income attributable to the company's owners for the year was HKD 83.7 million, down from HKD 210.6 million in the previous year[7]. - The company's profit attributable to owners for 2025 is HKD 76,973,000, a decrease from HKD 218,883,000 in 2024, representing a decline of approximately 64.8%[32]. - Basic core earnings per share were HKD 3.5, down from HKD 7.1 in the previous year, while basic earnings per share were HKD 2.5 compared to HKD 7.1 previously[5]. - The proposed final dividend for 2025 is HKD 1.7 cents per share, down from HKD 5.0 cents per share in 2024, reflecting a decrease of 66%[33]. Store Closures and Strategy - The company closed 9 out of 18 remaining stores in mainland China as of May 31, 2025, with plans to close all by June 30, 2025[5]. - The company plans to close 18 remaining offline stores in Mainland China by June 30, 2025, incurring estimated costs of HKD 17,224 for redundancy and HKD 3,010 for lease termination[28]. - The group plans to adjust its store portfolio in Singapore and Malaysia based on market conditions and will closely monitor the impact of tariffs on the Southeast Asian retail market[107]. - The group plans to operate 84 stores in Hong Kong and Macau by March 31, 2025, with two new stores opened in Hong Kong[80]. Revenue Breakdown - Total revenue for the year ended March 31, 2025, was HKD 3,941,704,000, with significant contributions from Hong Kong and Macau at HKD 2,991,827,000[20]. - The operating profit from the Hong Kong and Macau segment was HKD 128,568,000, while the China mainland segment reported a loss of HKD 44,945,000[20]. - The total revenue for the fiscal year in mainland China was HKD 520.5 million, representing a year-on-year decline of 10.5%[89]. - Offline sales amounted to HKD 3,226.3 million, with a year-on-year decline narrowing from 17.4% in the first half to 6.2% in the second half[57]. - Online sales slightly rose by 1.2% to HKD 715.4 million, driven by a 12.4% year-on-year growth in Southeast Asia's third-party e-commerce platforms[58]. - In Southeast Asia, total sales reached HKD 419.6 million, an increase of 14.7% year-on-year, with offline sales contributing HKD 331.5 million, or 79.0% of the total[99]. Financial Position - The company's total assets decreased to HKD 1,558.1 million from HKD 1,688.8 million in the previous year[8]. - Net assets were HKD 1,157.7 million, down from HKD 1,252.1 million in the previous year[8]. - The total cash as of March 31, 2025, was HKD 371.1 million, sufficient for the group's operational needs[59]. - The group's total equity amounted to HKD 1,157.7 million, including reserves of HKD 847.4 million, indicating a stable financial position[118]. - The leverage ratio as of March 31, 2025, was zero, indicating no debt relative to total equity[121]. Market Trends and Consumer Behavior - The retail sales in Hong Kong decreased by 8.6% in 2024, while sales in mainland China increased by 3.2%[39]. - The group observed a shift in consumer preference among mainland Chinese tourists towards niche brands, which presents opportunities for the development of exclusive brands[47]. - The retail environment in the beauty industry is highly competitive, with a shift towards functional and niche beauty products gaining popularity[50]. - The number of mainland Chinese tourists visiting Hong Kong and Macau reached 45.5 million and 35.9 million respectively in the current fiscal year[45]. - The implementation of "one visa for multiple entries" and "one trip per week" measures is expected to positively impact the tourism and retail sectors in Hong Kong and Macau[46]. Operational Strategies - The group is currently assessing the impact of adopting HKFRS 18 on its consolidated financial statements, particularly regarding income and expense classification[16]. - The group plans to enhance transparency and comparability in financial reporting through the adoption of new standards[16]. - The company is focusing on enhancing its supply chain management and has invested in automation technologies to improve efficiency and quality[37]. - The group has successfully integrated online and offline experiences, enhancing customer interaction and boosting sales through initiatives like "Buy Online, Pick Up In Store" (BOPIS)[83]. - The group aims to improve customer loyalty and repurchase rates through enhanced service quality provided by professional beauty consultants[77]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[138]. - The group believes that the economic stimulus measures introduced in mainland China will enhance market liquidity and boost capital market activities[49]. - The group is cautiously optimistic about the medium to long-term development of the mainland China market, with losses narrowing from HKD 17.1 million to HKD 14.9 million[90]. - Future economic outlook remains uncertain due to geopolitical and economic factors, impacting the group's business environment[114].

Group 1 - The A-share market saw a slight increase on June 5, with notable gains in sectors such as military equipment restructuring, football concepts, computer equipment, and electronic components [1] - The military equipment restructuring sector experienced a collective rise of 8.24%, with seven stocks in this category showing strong performance [1] - Among these, Dong'an Power (600178), Hunan Tianyan (600698), and Construction Industry (002265) reached their daily limit up, while Chang'an Automobile (000625), Huachuang Technology (688151), Zhongguang Optical (002189), and Changcheng Military Industry (601606) also saw significant price increases [1] Group 2 - On June 4, the listed companies in the military equipment sector received notifications from their indirect controlling shareholder, China Ordnance Equipment Group, regarding a restructuring approved by the State Council [2] - The restructuring involves the separation of the automobile business into an independent central enterprise, with the State-owned Assets Supervision and Administration Commission of the State Council taking on the role of investor [2] - Following the restructuring, the indirect controlling shareholder of Chang'an Automobile will change, but the actual controller remains the same, and normal business operations will not be significantly affected [3] Group 3 - The chairman of Chang'an Automobile, Zhu Huarong, stated that the restructuring will benefit the company's internationalization and market development, leveraging policy opportunities and synergies from the restructuring [3] - Experts believe that the restructuring of automobile central enterprises is crucial for industrial upgrading, as it can concentrate resources to tackle core technologies and enhance global competitiveness in the automotive industry [3] - The automotive industry is currently in a critical phase of consolidation and elimination, with central enterprises likely to achieve resource integration through mergers and acquisitions [3] Group 4 - China Ordnance Equipment Group is a key state-owned enterprise directly managed by the central government, playing a vital role in national defense technology and the economy [4] - The group has been focusing on strategic emerging industries and future industries, including new energy vehicles, optoelectronic information, high-end equipment manufacturing, and more, with over 60 key enterprises and research institutions under its umbrella [4]

Group 1 - Local consumption stocks in Hong Kong experienced a significant rise, with Chow Tai Fook (01929.HK) increasing by over 6% [1] - Chow Sang Sang (00116.HK) saw a rise of 2.7% [1] - Prada (01913.HK) rose by over 2% [1] - Sa Sa International (00178.HK) increased by 1.6% [1]

Financial Performance - For the six months ended September 30, 2024, turnover was HK$1,920.5 million, a decrease of 10.5% from HK$2,144.4 million in the previous year[10]. - Gross profit for the same period was HK$756.5 million, down 14.1% from HK$880.5 million year-on-year[10]. - Profit for the period was HK$32.4 million, a significant decline of 68.3% compared to HK$102.4 million in the prior year[10]. - Basic earnings per share decreased to 1.0 HK cents, down from 3.3 HK cents in the previous year[10]. - The profit margin for continuing operations was 1.7%, down from 4.8% in the previous period[15]. - The gross profit margin for continuing operations was 39.4%, down from 41.1% in the previous period[15]. - The Group's profit for the period declined to HK$32.4 million, with basic earnings per share at 1.0 HK cents, down from 3.3 HK cents in the previous year[82]. - The Group's turnover for the six months ended September 30, 2024, was HK$1,920.5 million, a decline of 10.4% compared to the previous period due to challenges in core markets of Hong Kong and Macau[76]. Dividends and Equity - The interim dividend per share is set at 0.75 HK cents, with a payout ratio of approximately 72%[10]. - As of September 30, 2024, total equity stood at HK$1,145.9 million, with net cash and bank balances of HK$337.9 million[11]. - The total equity amounted to HKD 1,145,917, reflecting an increase from HKD 1,135,218 in the previous period[16]. - The total equity dividend per share is HK$0.75, with a closing share price of HK$0.79 as of September 30, 2024[21]. - Total equity as of September 30, 2024, amounted to HK$1,145.9 million, including reserves of HK$835.6 million, reflecting an 8.5% decrease from HK$1,252.1 million as of March 31, 2024[192][194]. Sales and Market Performance - Offline sales in Mainland China increased by 23%, while Hong Kong and Macau saw a 19.4% increase in offline sales[12]. - The geographical sales mix indicates that Hong Kong and Macau contributed 73.1% of total sales, while Mainland China and Southeast Asia contributed 16.2% and 10.5%, respectively[12]. - Offline retail sales in Hong Kong and Macau decreased by 19.4% to HK$1,308.2 million, while offline sales in Mainland China decreased by 36.7% to HK$53.7 million due to operating 12 fewer stores[79]. - Same-store sales in Hong Kong and Macau decreased by 24.3% and offline sales decreased by 19.4% during the period[94]. - The decline in Macau's sales narrowed from 33.8% in the first quarter to 24.1% in the second quarter, reflecting improved performance due to increased tourist traffic[111]. - Sales in Hong Kong and Macau decreased by 6.4% year-on-year, showing significant improvement compared to declines of 20.4% and 16.4% in the first and second quarters respectively[189]. Online Sales and E-commerce - Total online sales reached HK$396.2 million, with online penetration increasing to 20.6% of total Group sales, up from 13.9% in 2023[63][67]. - Online sales increased significantly by 32.6% to HK$396.2 million, now representing 20.6% of the Group's total turnover, up from 13.9% in the previous year[80]. - Online sales in Mainland China increased significantly by 61.2% to HK$257.5 million, accounting for 65.0% of the Group's total online sales[133]. - The Group's online operations in Mainland China have turned profitable compared to the previous period[135]. - The Group's focus on e-commerce as a cornerstone of future growth initiatives includes the imminent launch of a new e-commerce platform in Singapore[181]. Operational Efficiency and Strategy - The company is actively integrating its physical and online business to enhance customer experience in the new retail era[4]. - The Group's strategy includes enhancing operational efficiency and expanding the offline network to adapt to changing consumer preferences[90]. - The Group plans to enhance operational efficiency through digitalization and zero-based budgeting, which has already improved store performance across regions[158]. - The Group aims to drive margin growth by investing in exclusive brands and optimizing inventory management to reduce turnover days[159]. - The Group's strategic focus includes investing in online business and integrating online and offline channels to create a seamless OMO shopping experience[60][64]. Market Conditions and Economic Environment - The macroeconomic environment in Mainland China remains challenging, with high youth unemployment and increased household savings impacting consumer spending behavior[42]. - The GDP growth rate for Hong Kong in the first half of 2024 is reported at 7.6%, while retail sales have shown a slight decline of 10.8%[23]. - The federal funds rate reached a 20-year high of 5.3% before a 50 basis points cut on September 19, 2024, which was followed by similar actions from the People's Bank of China[29]. - The October National Week holiday saw a significant improvement in tourist sales, attributed to improved consumer sentiment from monetary easing policies[189]. - The Group anticipates gradual improvement in consumption within the retail and tourism sectors due to government efforts to attract business exhibitions in Hong Kong and Macau[161]. Store Operations and Employee Data - The total retail space for continuing operations was 523,000 square feet, slightly down from 526,000 square feet in the previous period[19]. - The number of retail outlets for continuing operations decreased to 178 from 184 in the previous year[21]. - The number of employees remained stable at 5,000, consistent with the previous period[19]. - Employee costs for the six months ended September 30, 2024, were HK$331.2 million, with close to 2,600 employees as of the same date[191][195]. Customer Engagement and Brand Strategy - The Group's membership program was upgraded in September 2024 to provide personalized offerings and enhance customer experience[65]. - The introduction of new brands, including skincare brands Empro and Alteya Organics, aims to enhance customer loyalty and diversify the product portfolio[74]. - The establishment of a "Clean Beauty" section reflects the Group's commitment to sustainable and environmentally friendly products, earning recognition from the Hong Kong Environmental Protection Department[73]. - The Group's beauty consultants are effectively introducing exclusive brands that enjoy higher gross margins, capitalizing on changing consumer preferences[33]. - The Group aims to focus on exclusive brands in Mainland China to build brand loyalty and avoid direct price competition, leveraging consumer willingness to try lesser-known brands[172].

Revenue Performance - The group's revenue decreased by 10.4% to HKD 1,920.5 million, primarily due to weak macro market performance and cautious spending by mainland Chinese tourists in Hong Kong and Macau[1]. - Total revenue for the Hong Kong and Macau segment was HKD 1,403,071,000, while the total revenue for the mainland China segment was HKD 311,152,000, resulting in a total revenue of HKD 1,920,543,000 for the period ending September 30, 2024[11]. - The group's total revenue for the six months ended September 30, 2024, was HKD 1,920.5 million, a decrease of 10.4% compared to the same period last year[43]. - The group's total revenue for the third quarter from October 1 to November 10, 2024, decreased by 7.0% year-on-year, with Hong Kong and Macau sales down by 6.4% compared to a decline of 20.4% and 16.4% in the first and second quarters respectively, indicating significant improvement[71]. Profitability - Gross profit decreased by 14.1% to HKD 756.5 million, with a gross profit margin decline of 1.7 percentage points to 39.4%[1]. - The group's profit before tax was HKD 43.9 million, while profit after tax was HKD 32.4 million, compared to HKD 102.4 million in the previous year[1][2]. - Basic earnings per share were HKD 1.0, down from HKD 3.3 in the previous year[2]. - The group reported a profit of HKD 32.4 million, with basic earnings per share of HKD 0.01, down from HKD 0.033 in 2023[45]. - The group has identified operational segments including Hong Kong and Macau, mainland China, Southeast Asia, and others, with performance assessed primarily from a regional perspective[10]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.75 per share, equivalent to approximately 72% of the profit for the period[1]. - The interim dividend declared is HKD 0.75 per share, totaling HKD 23,274, compared to no dividend in the same period last year[22]. - The group maintained a stable dividend policy, declaring an interim dividend of HKD 0.0075 per share, representing approximately 72% of the period's profit[45]. Sales Channels and Market Performance - Online business in mainland China increased by 61.2%, rising from HKD 159.7 million in the same period last year to HKD 257.5 million[1]. - Total online sales reached HKD 396.2 million, accounting for 20.6% of total sales, up from 13.9% in 2023[38]. - Offline sales in Hong Kong and Macau fell by 18.4% to HKD 1,308.2 million, while online sales in mainland China increased by 27.2% to HKD 257.5 million[41]. - The group conducted 79 live-streaming sales events, which accounted for 21.5% of total online sales in Hong Kong and Macau during the period[54]. - The online shopping and in-store pickup (BOPIS) model continues to be a preferred choice for customers, enhancing the online-offline integration experience[53]. Operational Efficiency and Cost Management - Employee benefits expenses, including director remuneration, decreased to HKD 331,234, down 4.3% from HKD 345,968[15]. - The group plans to enhance operational efficiency through digital optimization and strict zero-based budgeting[64]. - The group aims to strengthen its exclusive brand portfolio and improve inventory management to enhance investment returns[64]. - Capital expenditures amounted to HKD 30,575,000, with HKD 15,335,000 attributed to Hong Kong and Macau, and HKD 15,201,000 to mainland China[11]. Market Trends and Consumer Behavior - The number of visitors from mainland China to Hong Kong and Macau reached 21.4 million and 17.0 million respectively, representing an increase of 13.0% and 13.8% compared to the same period last year[31]. - The group observed a shift in the demographics of mainland visitors, with younger travelers preferring value-for-money options and showing interest in niche brands[31]. - The Hong Kong retail sales showed a decline of 10.8% from April to September 2024, while the pharmaceutical and cosmetics sales increased by 0.6%[25]. - Macau's gaming revenue has been impacted by increased competition from other regions, but the government announced a new visa policy effective May 6, 2024, to attract more mainland visitors[33]. Financial Position and Assets - The group's total assets less current liabilities amounted to HKD 1,573.2 million, down from HKD 1,688.8 million[5]. - Net assets decreased to HKD 1,145.9 million from HKD 1,252.1 million[5]. - As of September 30, 2024, the group's total equity was HKD 1,145.9 million, with a cash and bank balance of HKD 337.9 million, indicating a strong financial position[74]. - The total assets as of September 30, 2024, were HKD 2,343,253,000, with non-current assets amounting to HKD 1,120,182,000 and current assets at HKD 1,223,071,000[12]. Strategic Initiatives - The group launched an upgraded membership program to enhance personalized services for members, completing a technical upgrade of the membership system by September 2024[37]. - The group is focusing on enhancing its store network in Hong Kong and Macau, maintaining 26 stores in core tourist areas as of September 30, 2024[36]. - The group is leveraging existing resources and partnerships with third-party e-commerce platforms to expand into North America, Australia, and New Zealand, where customer loyalty is high despite lower profit margins[70]. - The group is focusing on developing exclusive brands in mainland China to build brand loyalty and avoid direct price competition, while also exploring opportunities in online channels, particularly live streaming[67].