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].
莎莎国际(00178) - 2025 - 年度业绩