Financial Performance - Revenue for the year ended March 31, 2021, was HKD 3,043.0 million, with a gross profit margin of 34.6%[7] - The company reported a loss of HKD 359.3 million for the year, an improvement from a loss of HKD 475.1 million in the previous year[7] - Revenue from continuing operations for 2021 was HKD 3,043.0 million, a decrease of 46.8% compared to HKD 5,717.3 million in 2020[83] - Gross profit for continuing operations in 2021 was HKD 1,051.8 million, resulting in a gross margin of 34.6%, down from 36.4% in 2020[83] - The net loss for continuing operations in 2021 was HKD 359.3 million, compared to a loss of HKD 475.1 million in 2020, indicating an improvement[90] - Total assets decreased to HKD 2,510.9 million in 2021 from HKD 3,267.2 million in 2020, reflecting a decline of 23.2%[84] - Total liabilities decreased to HKD 1,180.7 million in 2021 from HKD 1,602.9 million in 2020, a reduction of 26.2%[84] - Net assets for 2021 were HKD 1,330.1 million, down from HKD 1,664.3 million in 2020, representing a decrease of 20.1%[84] - The company reported a compound annual growth rate (CAGR) of 3.9% in revenue over the past ten years[86] - The gross profit margin for the year 2021 was the lowest in the past decade, reflecting ongoing challenges in the market[88] - The company’s equity totalled HKD 1,330.1 million in 2021, with share capital remaining stable at HKD 310.3 million[84] - The group recorded a loss of HKD 351.4 million, compared to a loss of HKD 204.6 million in the previous year[100] - Basic loss per share was HKD 11.3 cents, an improvement from HKD 16.7 cents in 2020[100] - The group recorded a loss of HKD 352.9 million for the year, an improvement from a loss of HKD 413.6 million the previous year, with a 52.1% reduction in losses in the second half[142] Market Performance - Online business contributed 16.5% to total sales, while Hong Kong and Macau accounted for 65.7%[10] - Retail sales in Mainland China increased by 15.9%, while Hong Kong and Macau saw a significant increase of 58.1%[11] - The group’s online business accounted for 16.5% of total revenue in 2021[131] - In mainland China, retail sales rose by 30.7%, with same-store sales up by 6.7%[172] - The sales contribution from Macau increased from 12.6% in Q1 to 37.1% in Q4, driven by the recovery of mainland Chinese tourists[1] - Retail and wholesale sales in Hong Kong and Macau fell by 57.8% to HKD 1,999.8 million[124] - Same-store sales in the Hong Kong and Macau market decreased by 54.4%, while retail sales fell by 58.1%, representing a 72.6% decline compared to the 2018/19 fiscal year[142] Online Business Development - The company aims to enhance its digital marketing efforts to capitalize on the rapid growth of online shopping[12] - Future strategies include integrating online and offline operations to create a seamless shopping experience for customers[18] - Online business transactions reached 10.4 million, with 1.5 million from third-party platforms and social media in the fiscal year 2020/21[36] - The online business has turned profitable, with a focus on enhancing the integration of retail and online teams to maximize O2O potential[113] - Online business revenue reached a historic high, with a year-on-year growth of 80.5% in the second half, resulting in the online segment turning profitable for the year[107] - The O2O (Online to Offline) business model showed the fastest growth among all online channels, highlighting its strong potential in the new retail development[107] - Online sales in the second half of the year grew by 80.5% year-on-year, with third-party platform sales increasing by 63.8% in Q3 and 116.5% in Q4 due to shopping festivals[152] Strategic Initiatives - The company aims to enhance customer satisfaction and loyalty through a new retail model that integrates online and offline operations[49] - The strategy includes utilizing big data to understand customer shopping patterns and improve personalized shopping experiences[53] - The company is focused on supply chain automation and digitalizing operational processes to enhance inventory management and overall efficiency[58] - The company plans to leverage big data and retail technology to analyze business and product trends[21] - The group aims to increase the proportion of revenue from markets outside Hong Kong and Macau from approximately 35% to over 50% in the long term[111] - The group is targeting key cities in mainland China, particularly in the Greater Bay Area, for market expansion[112] - The group plans to accelerate the development of markets outside Hong Kong and Macau, aiming to increase the revenue contribution from these markets from 35% to over 50%[161] Store Network and Operations - The company operates 232 sales points across its markets as of March 31, 2021[11] - The total number of retail stores decreased to 232 from 235 in the previous year[97] - The total retail area for continuing operations was 458,000 square feet, down from 477,000 square feet in the previous year[97] - The total number of stores in Hong Kong and Macau decreased from 118 to 100, with a focus on closing overlapping stores in tourist areas, saving approximately HKD 238.4 million in rental expenses[104] - The group plans to close approximately 15 to 20 stores in the future to streamline its store network and reduce costs[145] - The group opened 17 new stores during the fiscal year, focusing on key urban areas, with a net loss reduced to HKD 12.7 million[156] Financial Management - The cash and bank balance stood at HKD 526.4 million, indicating a stable financial position[7] - The leverage ratio, defined as total borrowings to total equity, reflects the company's prudent financial management[7] - The group maintained a strong financial position with cash and bank balances totaling HKD 526.4 million and working capital of HKD 731.6 million as of March 31, 2021[175] - The group had no bank borrowings and maintained a leverage ratio of zero as of March 31, 2021[177] - The company is committed to cost control measures to improve profitability and reduce short-term losses amid the challenges posed by the COVID-19 pandemic[183] Corporate Social Responsibility - The establishment of the "Sa Sa Charity Fund" demonstrates the company's commitment to corporate social responsibility[63] - The group received HKD 112.4 million in government subsidies under the "Employment Support Scheme" to cover employee wages[147] - The company has been actively involved in charitable activities, with Dr. Guo serving in various leadership roles in multiple organizations since 2009[195] Leadership and Governance - Dr. Guo is a major shareholder of Sunrise Height Incorporated and Green Ravine Limited, each holding 50% equity in these companies[196] - Dr. Guo has over 40 years of experience in marketing and promoting cosmetics, leading the group's marketing and operational management[193] - The company has a commitment to corporate governance, with Dr. Guo serving on various committees including the Executive Committee and the Risk Management Committee[193] - The company is led by a team with extensive experience, including Dr. Lu, who has over 35 years of financial and management experience[199]
莎莎国际(00178) - 2021 - 年度财报