莎莎国际(00178) - 2025 - 中期财报

Financial Performance - For the six months ended September 30, 2024, turnover was HK$1,920.5 million, a decrease of 10.5$2,144.4 million in the previous year[10]. - Gross profit for the same period was HK$756.5 million, down 14.1$880.5 million year-on-year[10]. - Profit for the period was HK$32.4 million, a significant decline of 68.3$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$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$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$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].