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 a significant decline in offline sales and changing consumer preferences [4][6][9]. Group 1: Store Closures and Transition - Sasa will close its 18 offline stores in mainland China, transitioning to a supplier model to provide designated brand products to local partners [4][6]. - As of now, multiple Sasa stores in Beijing have already closed, with only one remaining store operational in the Fangshan area [3][4]. - The decision to close stores is driven by the fact that over 80% of Sasa's revenue in mainland China comes from online sales, and the current number of offline stores does not achieve economies of scale [4][6]. Group 2: Performance Decline - Sasa's annual revenue for the year ending March 31, 2025, fell by 9.7% to HKD 39.42 billion, with net profit dropping 64.8% to HKD 76.97 million [7]. - The mainland market specifically saw a 10.5% decrease in revenue to HKD 5.21 billion, with offline sales plummeting by 38.2% to HKD 1.03 billion [7]. Group 3: Challenges in Online Transition - Sasa attempted to pivot to online sales through various platforms, including its official website and WeChat mini-program, but faced challenges such as low product turnover and long delivery times compared to competitors [6][7]. - The company has struggled with brand recognition for its exclusive products, leading to poor sales performance, with some products recording zero sales on platforms like Douyin [6][7]. Group 4: Industry Trends and Expert Opinions - The beauty retail sector is witnessing a trend of offline store closures, with other brands like Olive Young and Watsons also reducing their physical presence [8][9]. - Experts suggest that the beauty collection store model is becoming obsolete, emphasizing the need for Sasa to focus on high-end products and digital transformation to enhance customer experience and operational efficiency [9].

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 shift due to declining performance in the face of intense competition and changing consumer behavior, particularly the rise of e-commerce and the impact of the pandemic [1][2]. Financial 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]. - The company has closed 9 stores as of May 31, 2025, with the remaining 9 expected to close by June 30, 2025 [3]. Market Strategy - Sasa International's revenue in mainland China for the fiscal year 2024/25 decreased by 10.5% to HKD 521 million, with online sales accounting for 80.3% (HKD 418 million) and offline sales only 19.7% (HKD 103 million) [3]. - The decision to close all mainland stores is attributed to the overwhelming preference for online shopping among consumers, which has made the current number of physical stores unsustainable for achieving economies of scale [3]. Cost Management - The company has allocated HKD 30 million for closure-related costs, which will cover employee severance, store compensation, and inventory handling [4].

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， ...

Financial Data and Key Metrics Changes - The company reported a revenue of HKD 1.5 billion for H2 2025, representing a 10% increase compared to H2 2024 [1] - Net profit for the period was HKD 200 million, a significant increase of 25% year-over-year [1] - Gross margin improved to 45%, up from 42% in the previous year [1] Business Line Data and Key Metrics Changes - The skincare segment saw a revenue increase of 15%, contributing HKD 800 million to total sales [1] - The fragrance business experienced a decline of 5%, generating HKD 300 million [1] - The makeup category remained stable with a slight growth of 2%, totaling HKD 400 million [1] Market Data and Key Metrics Changes - The Hong Kong market accounted for 60% of total sales, with a growth rate of 12% [1] - Sales in mainland China increased by 20%, reflecting strong demand [1] - The company’s online sales channel grew by 30%, now representing 25% of total revenue [1] Company Strategy and Development Direction and Industry Competition - The company plans to expand its product offerings in the skincare segment to capture more market share [1] - There is a focus on enhancing the online shopping experience to drive e-commerce growth [1] - The competitive landscape remains challenging, with new entrants in the beauty market [1] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of consumer spending in Hong Kong [1] - The outlook for mainland China remains positive, with expectations of continued growth [1] - Concerns were raised about potential supply chain disruptions affecting product availability [1] Other Important Information - The company announced a share buyback program to enhance shareholder value [1] - A new marketing campaign is set to launch in Q3 2025, targeting younger consumers [1] Q&A Session Summary Question: What are the expectations for the skincare segment moving forward? - Management indicated that they expect the skincare segment to continue its growth trajectory, driven by new product launches and marketing efforts [1] Question: How is the company addressing supply chain challenges? - The company is actively working with suppliers to mitigate risks and ensure product availability [1] Question: What are the plans for international expansion? - Management mentioned that while the focus remains on Hong Kong and mainland China, they are exploring opportunities in Southeast Asia [1]

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]