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].

Revenue Growth - The group's total revenue increased by 24.8% to HKD 4,367.5 million, driven by the return of mainland travelers after the reopening of borders[2]. - Total revenue for 2024 reached HKD 4,112,322,000, compared to HKD 3,567,112,000 in 2023, marking a growth of 15.3%[14]. - The group achieved a total revenue of HKD 4,367.5 million, representing a year-on-year growth of 24.8%, primarily due to the return of travelers to the core markets of Hong Kong and Macau[47]. - Revenue breakdown shows Hong Kong and Macau at HKD 578.7 million (-21.8%), Mainland China at HKD 152.3 million (+83.9%), and Southeast Asia at HKD 79.7 million (+9.0%)[71]. Profitability - Gross profit increased by 27.3% to HKD 1,783.4 million, with a gross profit margin of 40.8%, up 0.8 percentage points year-on-year[2]. - The group turned a pre-tax loss of HKD 14.4 million from the previous year into a pre-tax profit of HKD 266.7 million, achieving a significant improvement of HKD 281.1 million[2]. - The company reported a net profit attributable to shareholders of HKD 218,883,000 in 2024, significantly up from HKD 58,247,000 in 2023, reflecting a growth of 275.5%[19]. - Basic earnings per share rose to HKD 7.1, compared to HKD 1.9 in the previous year[3]. Dividends - The board proposed a final dividend of HKD 0.05 per share, representing approximately 70% of the annual profit[2]. - The company proposed a final dividend of HKD 0.05 per share for 2024, while no dividend was declared in 2023[21]. Store Expansion - The group opened eight new stores during the year, including its first store in Singapore, and plans to open four more stores in Singapore post-fiscal year[2]. - The company opened five new stores in Hong Kong during the fiscal year, increasing the total number of stores in Hong Kong and Macau to 82[52]. - The group plans to open four new stores in Singapore in the first quarter of the 2024/25 fiscal year, following the reopening of physical stores in December 2023[39]. Online and Offline Sales - Offline sales in Hong Kong and Macau rose by 35.1% to HKD 3,207.3 million, while online sales in mainland China surged by 74.5% in the second half of the fiscal year[2]. - The group recorded a significant increase in online sales in mainland China, maintaining a high online sales mix of 71.4%[47]. - Online sales in mainland China surged by 36.3% to HKD 415.4 million, accounting for 58.8% of the group's total online revenue[61]. Customer Engagement - The conversion rate of travelers to customers reached double digits during the first nine months of the fiscal year, driven by the influx of mainland Chinese tourists[53]. - The company conducted 40 live-streaming sales events, which accounted for 9% of total online sales in Hong Kong and Macau for the fiscal year[57]. - The group is committed to a 30-day return guarantee for customers, reflecting its focus on quality assurance and customer satisfaction[29]. Market Trends - The group has identified a new trend of integrating online and offline retail models, which will be reflected in future financial reporting[9]. - The group observed a shift in the demographic of mainland Chinese visitors, with younger travelers more inclined to try niche brands, presenting opportunities for exclusive brand development[30]. - The group is focusing on enhancing its exclusive brand portfolio by collaborating with emerging niche brands and developing products jointly with brand owners[29]. Financial Management - The group maintained a strong cash position with a net cash balance of HKD 457.8 million as of March 31, 2024, up from HKD 273.3 million in the previous year[48]. - The leverage ratio as of March 31, 2024, is zero, down from 2.9% as of March 31, 2023[89]. - The group maintains a prudent financial risk management policy, avoiding high-risk investments or speculative derivatives[90]. Challenges - The group is facing challenges from labor shortages and high operational costs, impacting service levels and profitability[36]. - The group is actively seeking market gaps in non-tourist areas to better serve local customers, with two new leases signed post-fiscal year-end[76]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[103]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of up to HKD 200 million for potential deals[103]. - The group plans to enhance operational efficiency through digitalization and strict budget management, aiming for sustainable profitability despite economic uncertainties[68].

智通财经APP获悉，莎莎国际(00178)涨超10%，截至发稿，涨10.84%，报0.92港元，成交额863.3万港 元。 消息面上，有消息称，香港政府向中央争取更多内地旅客来港，获得了积极回应，预料包括扩大自由 行。据悉，目前内地共有49个城市的居民可透过"个人游"计划往来香港，主要是一线城市。香港政务司 司长陈国基日前称，正与内地商讨增加自由行来港城市数目，亦会研究恢复深圳居民"一签多行"。 ...

Financial Performance - For the six months ended September 30, 2023, the turnover was HK$2,144.4 million, representing a significant increase from HK$1,550.5 million in the same period last year, marking a growth of 38.3%[7]. - The profit for the period was HK$102.4 million, a turnaround from a loss of HK$133.2 million in the previous year, indicating a positive shift in financial performance[9]. - The basic earnings per share were reported at 3.3 HK cents, a significant improvement from a loss per share of 4.3 HK cents last year[7]. - The operating profit from continuing operations reached HK$135,066, a significant recovery from previous losses[10]. - The Group's profit for the period improved to HK$102.4 million, a significant turnaround from a loss of HK$133.2 million in the previous period[48]. - Total comprehensive income for the period attributable to owners of the Company was HK$93,983,000, compared to a loss of HK$148,227,000 in the previous year[129]. Profitability and Margins - The gross profit margin improved to 38.3%, compared to 53.6% in the previous year, reflecting changes in cost structure and pricing strategies[7]. - Gross profit from continuing operations was HK$880,476, showing an increase from previous periods[10]. - Gross profit margin for continuing operations improved to 41.1%, up from 37.0% in the prior year[10]. - Selling and distribution costs as a percentage of turnover decreased from 39.6% to 30.0%, while administrative expenses decreased from 8.0% to 5.4%[47]. - The Group's gross profit increased by 53.6% to HK$880.5 million, with a gross profit margin of 41.1%, reflecting a significant improvement in sales and margins[50]. Financial Position and Liquidity - The company maintained a solid financial position with a gearing ratio of 2.8% as of September 30, 2023, indicating low leverage[7]. - The net cash and bank balances stood at HK$164.2 million, providing a strong liquidity position for future investments[7]. - The current ratio was reported at 1.5 times, suggesting adequate short-term financial health[7]. - Total equity increased to HK$1,135,218, reflecting a strong financial position[12]. - The Group maintained a strong liquidity position with working capital of HK$454.2 million, including net cash and bank balances of HK$164.2 million[116]. Sales Performance - Offline sales in Mainland China increased by 25.2%, while Hong Kong and Macau saw a substantial increase of 64.9% in offline sales[8]. - The geographical sales mix showed that Hong Kong and Macau contributed 80.2% of total sales, while Mainland China and Southeast Asia contributed 11.4% and 8.2%, respectively[8]. - Total online sales remained flat at HK$298.8 million, with online penetration increasing to 13.9% of total Group sales, up from 4.8% pre-COVID[37]. - Total online and offline sales in the Hong Kong and Macau SARs reached HK$1,719.6 million, accounting for 80.2% of total Group sales, growing 57.9% year-on-year[52]. - Offline sales in Macau SAR increased by 84.1% year-on-year, recovering to 65.9% of pre-pandemic levels, while same-store sales grew by 67.5%[66]. Market and Economic Conditions - The global economy is gradually recovering from the pandemic, with signs of partial recovery despite ongoing geopolitical tensions and high inflationary pressures[25]. - Hong Kong's GDP growth rate for April to September 2023 was 4.2%, while retail sales increased by 16.0% during the same period[18]. - Macau experienced a significant GDP growth of 119.4% and a retail sales increase of 64.3% from April to June 2023[18]. - Economic uncertainties and high household savings rates in Mainland China have led to a reluctance to spend, affecting overall consumer sentiment[31]. Strategic Initiatives - The company is actively integrating its physical and online business presence to enhance customer experience in the new retail era[3]. - The Group is focusing on market expansion and new product development strategies moving forward[10]. - The Group is exploring the shop-in-shop concept, launching exclusive areas for partner brands like La Estephe and Dr. G[35]. - The Group plans to open three new retail stores in Singapore in the second half of the financial year, re-establishing its offline presence[33]. - The Group is enhancing its Customer Relationship Management (CRM) program to integrate member pools from online and offline channels, expected to be fully implemented by the end of the current financial year[102]. Operational Challenges - Net cash used in operating activities was HK$(72,001), indicating cash flow challenges[12]. - The Group's loss in Mainland China narrowed significantly to HK$12.0 million from HK$63.0 million in the previous period[69]. - The Group has resumed its store upgrade program, with seven stores upgraded during the period, resulting in 240 lost operating days and impacting sales by approximately 2.0%[85]. - The Group is focusing on improving customer experience through initiatives like "Buy Online Pick-up In-Store" (BOPIS), enhancing operational effectiveness amid challenging economic conditions[68]. Inventory and Capital Expenditure - As of September 30, 2023, the Group's inventory was HK$878.8 million, an increase of HK$209.3 million compared to 31 March 2023, with inventory turnover days at 134 days[90]. - Capital commitments for the acquisition of property, plant, and equipment totaled HK$9.8 million as of September 30, 2023[121]. - The Group's total cash and cash equivalents at the beginning of the period were HK$303,256,000, with a net decrease of HK$100,597,000 during the period[141]. Employee and Operational Costs - The Group's employee costs for the six months ended September 30, 2023, amounted to HK$346.0 million[115]. - Employee benefit expenses, including directors' emoluments, increased to HK$345,968,000 from HK$334,630,000 year-on-year[177]. - Interest expenses on lease liabilities rose to HK$11,722,000 in the first half of 2023, compared to HK$7,571,000 in the same period of 2022[179].

Financial Performance - The group's revenue increased by 38.3% to HK$2,144.4 million, with offline sales in Hong Kong and Macau growing by 64.9% to HK$1,623.7 million[2]. - The company turned a loss of HK$133.2 million in the same period last year into a profit of HK$102.4 million, with basic earnings per share at HK$3.3 compared to a loss of HK$4.3 per share in 2022[2][3]. - Gross profit reached HK$880.5 million, up from HK$573.3 million, reflecting a significant recovery in sales performance[3]. - Operating profit was HK$135.1 million, a turnaround from an operating loss of HK$115.9 million in the previous year[3]. - The group recorded a profit of HKD 102.4 million, a significant turnaround from a loss of HKD 133.2 million in the same period last year[48]. - The group's total revenue for the first half of the 2023/24 fiscal year was HKD 2,144.4 million, reflecting a year-on-year increase of 38.3%[43]. - The group's total revenue for Q3 2023 increased by 27.0% compared to the same period last year, reaching HKD 525.8 million[81]. Assets and Liabilities - The total assets as of September 30, 2023, amounted to HK$1,146.9 million, compared to HK$1,004.7 million as of March 31, 2023[5]. - Current liabilities increased to HK$1,321.0 million from HK$1,208.7 million, indicating a rise in short-term financial obligations[6]. - The net asset value rose to HK$1,135.2 million from HK$1,041.2 million, showing an improvement in the company's financial health[6]. - The total borrowings as of September 30, 2023, were HKD 32,000,000, an increase from HKD 30,000,000 as of March 31, 2023[27]. - Total equity attributable to equity holders was HKD 1,135.2 million, including reserves of HKD 824.9 million, with working capital of HKD 454.2 million[84]. Cash Flow and Financial Management - The total cash net amount as of September 30, 2023, was HKD 164.2 million, up from HKD 123.2 million in 2022, indicating sufficient cash for business needs[48]. - The group had net cash of HKD 164.2 million as of September 30, 2023, with additional undrawn bank loan facilities of approximately HKD 232.3 million, ensuring sufficient funds for operations[73]. - The leverage ratio as of September 30, 2023, was 2.8%, a slight decrease from 2.9% as of March 31, 2023[85]. - The group maintains a prudent financial risk management policy, avoiding high-risk investments or speculative derivatives[86]. Dividends and Shareholder Returns - The company decided not to declare an interim dividend for this period, consistent with its risk management responsibilities[2]. - The board decided not to declare an interim dividend for the six months ended September 30, 2023[89]. Market and Sales Performance - The group recorded significant sales growth in Hong Kong, benefiting from the return of tourists and various consumer stimulation activities, with 18.9 million visitors during the period[34]. - The group’s sales from travelers accounted for approximately 48.6% of total sales, down from 74% pre-pandemic[35]. - Offline sales in mainland China dropped 25.2% to HKD 84.8 million, with the number of stores decreasing by 16.7% to 35, yet gross profit per store increased by 12.1%[64]. - The group plans to open three new stores in Singapore in the second half of the fiscal year as part of its Southeast Asia market expansion strategy[37]. - The group plans to open three new physical stores in Singapore by March 2024, enhancing its offline business and supporting online operations in Southeast Asia[38]. Operational Strategies - The company plans to adopt a new online-offline integrated retail model to enhance financial reporting and operational decision-making[12]. - The company is focusing on future investments to support its development in a recovering market post-pandemic[2]. - The company is exploring the "store-in-store" concept to showcase partner brands, with recent launches in Hong Kong and Malaysia[39]. - The group plans to optimize operational efficiency and inventory strategies to capitalize on post-pandemic growth opportunities[73]. Employee and Operational Costs - Employee benefits expenses, including directors' remuneration, amounted to HKD 345,968,000, slightly up from HKD 334,630,000 in the previous year[17]. - As of September 30, 2023, the group had approximately 2,640 employees, with employee costs amounting to HKD 346.0 million for the six months ended[83]. Product and Brand Development - The company introduced new exclusive brands, including Rexaline and DermEden, to diversify its product offerings and enhance customer loyalty[41]. - The group is focusing on expanding its product categories, including personal care and beauty devices, to meet evolving consumer demands[41]. - The group plans to promote exclusive brands through live streaming platforms in mainland China to improve gross margins[47]. Economic and Market Conditions - Despite challenges from rising living costs and economic pressures in mainland China, the group anticipates benefiting from improvements in macroeconomic conditions[73]. - The Chinese government announced a series of measures to stimulate domestic consumption, which is expected to gradually restore consumer and business confidence[36].

Financial Performance - For the fiscal year ending March 31, 2023, the company reported a revenue of HKD 3,500.5 million, reflecting a year-on-year increase of 2.6%[7] - The gross profit for the same period was HKD 1,401.4 million, with a gross margin of 40.0%, representing a year-on-year change of 11.2%[7] - The company achieved a net profit of HKD 58.2 million, with basic earnings per share of HKD 0.019, indicating a year-on-year increase of 13.0%[7] - Total revenue for the fiscal year 2023 reached HKD 3,500.5 million, a 2.6% increase from HKD 3,412.7 million in 2022[86] - Gross profit for continuing operations was HKD 1,401.4 million, with a gross margin of 40.0%, up from 36.9% in the previous year[86] - The net profit for continuing operations was HKD 58.2 million, resulting in a net profit margin of 1.7%, compared to a net loss margin of 10.1% in 2022[86] - The group recorded a profit of HKD 185.9 million in Q4, with a pre-tax profit margin of 9.0%, turning around from a loss of HKD 133.2 million in the first half of the fiscal year[109] - The group's profit for the fiscal year was HKD 58.2 million, a significant turnaround from a loss of HKD 343.7 million in the previous year[138] Sales Performance - The company’s sales in Mainland China saw a significant offline sales growth of 22.9%[9] - The company’s sales in Southeast Asia experienced a remarkable offline sales growth of 64.9%[9] - The distribution of revenue by region showed that Hong Kong and Macau accounted for 74.4%, Mainland China 14.9%, and Southeast Asia 10.6%[11] - For the fiscal year, the total retail sales and wholesale business in Hong Kong and Macau reached HKD 2,603.8 million, accounting for 74.4% of total revenue, with an 8.7% growth[110] - Offline sales in Hong Kong and Macau increased by 7.3% to HKD 2,373.3 million, while offline sales in mainland China decreased by 22.9% to HKD 225.2 million[137] - The total revenue from Southeast Asia was HKD 372.0 million, with online sales contributing HKD 72.0 million[185] - In Malaysia, offline revenue increased significantly by 64.9% to HKD 300 million, with same-store sales growth of 34.3% in local currency[189] Store Operations - As of March 31, 2023, the group operates a total of 186 retail stores, distributed as follows: 79 in Hong Kong and Macau, 37 in Mainland China, and 70 in Southeast Asia[29] - The number of retail stores in continuous operations decreased to 186 from 234 in the previous year, reflecting a reduction in the retail footprint[101] - The group reduced the number of stores in mainland China from 77 to 37 due to significant declines in customer traffic[178] - The group plans to expand its store network in tourist areas, with three new leases signed, increasing the total number of stores in tourist areas to 82[118] - The group signed three new leases in core tourist areas of Hong Kong, with new stores expected to open in the first quarter of the new fiscal year[166] Digital Transformation and Strategy - The company is actively integrating online and offline operations to create a seamless shopping experience for customers[17] - The company aims to invest in digitalization and talent development to support its growth strategy[24] - The group is investing in digital transformation to improve customer experience and streamline end-to-end payment processes[42] - The company is exploring various online operational models, including live streaming and the development of an "infinite shelf" concept to meet diverse customer needs[28] - The company plans to unify customer relationship management across Hong Kong, Mainland China, and Southeast Asia to provide a consistent online and offline user experience[42] - The company aims to create a seamless omnichannel shopping experience by integrating online and offline operations, leveraging its established store network[125] Brand and Product Development - The company is focusing on enhancing its exclusive brand portfolio and developing new products in collaboration with brand owners[14] - The company has introduced new exclusive brands, including the medical beauty brand Rexaline and the personal care brand plu[26] - The company aims to enhance its brand portfolio, particularly focusing on exclusive brands to improve product competitiveness and gross margins[30] - The company is focused on increasing the sales proportion of exclusive brands to enhance long-term customer loyalty and sustainable sales growth[48] - The product mix has shifted post-COVID, with a notable increase in demand for cosmetics and perfumes, while personal protective equipment sales have fluctuated[126] Financial Stability and Investments - Total assets increased to HKD 2,213.3 million, while total liabilities were HKD 1,172.1 million, leading to net assets of HKD 1,041.2 million[88] - Net cash increased to HKD 273.3 million as of March 31, 2023, up from HKD 194.2 million in 2022, demonstrating improved financial stability[109] - The leverage ratio decreased to 2.9% from 10.4% in the previous year, indicating a stronger balance sheet[107] - The group has invested in automated guided vehicles (AGVs) to improve e-commerce processing capabilities, facilitating market entry into Southeast Asia, North America, Australia, and New Zealand[133] Corporate Social Responsibility and Recognition - The company received multiple awards for investor relations, including "Best Investor Relations Company" in the small-cap category[66] - The company has been recognized for its commitment to corporate social responsibility, receiving the "Caring Company" logo for 18 consecutive years[69] - Sasa's exclusive products won several accolades, including the "Best Skincare Essence" at the CITTA BELLA Beauty Awards 2022 in Malaysia[84] Market Challenges and Future Outlook - The company reported a compound annual growth rate of -6.9% over the past decade in its revenue[98] - The mainland China market remains a core focus for the group's long-term strategy, with plans to adjust strategies as consumer sentiment improves post-pandemic[200] - The company plans to expand into the Thai market and launch on Zalora, while continuing to focus on Shopee and Lazada to enhance revenue[123] - The company is optimizing its store network to enhance economic efficiency and reduce initial capital expenditures for new store openings[165]