Financial Performance - The turnover for the period was HK$1,550.5 million, representing a 2.9% decrease compared to the previous year[11]. - Gross profit amounted to HK$573.3 million, with a gross profit margin of 37.0%, a slight increase of 0.3 percentage points[11]. - The company reported a loss for the period of HK$133.2 million, down from HK$181.6 million in the previous year, marking a 26.7% improvement[11]. - The turnover for continuing operations was HK$1,550,493, a decrease from HK$1,597,234 in the previous period[14]. - Gross profit for continuing operations was HK$573,304, with a gross profit margin of 37.0%[14]. - The operating loss for continuing operations was HK$115,860, compared to an operating profit of HK$247,098 in the prior period[14]. - The loss for the period from continuing operations was HK$133,183, a decline from a profit of HK$216,416 previously[14]. - The diluted loss per share for continuing operations was HK(4.3) cents, compared to HK(5.9) cents in the previous year[15]. - Return on equity was reported at -16.0%, reflecting a decline from -15.8% in the previous year[15]. - The Group's loss for the period narrowed to HK$133.2 million from HK$181.6 million, a reduction of 26.7%[30]. - Basic loss per share was 4.3 HK cents, compared to 5.9 HK cents in the previous year, and no interim dividend was recommended due to the challenging operational environment[31][32]. Operational Highlights - Retail sales in Mainland China increased by 13.1%, while sales in Hong Kong and Macau SARs grew by 8.7%[12]. - The online business in Malaysia saw a significant retail sales change of 159.3%[12]. - The company operates 193 points of sale in Mainland China and 80 in Hong Kong and Macau SARs[12]. - Same-store sales growth in Mainland China suffered a double-digit decrease compared to the same period last financial year due to pandemic-related lockdowns[21]. - The business in Macau SAR was severely affected by a citywide lockdown in July 2022, leading to a significant decline in tourist visitors[20]. - Following the relaxation of pandemic measures in Malaysia, the business rebounded to 84% of pre-pandemic levels[20]. - Online sales in Hong Kong SAR experienced high double-digit growth during the interim period, while online sales in Mainland China were significantly impacted by quarantine measures[24]. - The Group operates 193 retail outlets as of September 30, 2022, and is considering expanding its store network where economically viable[29][27]. Financial Position - The gearing ratio stood at 9.6%, indicating a solid financial position as of September 30, 2022[12]. - The current ratio is 1.3, reflecting the company's liquidity position[12]. - Total assets amounted to HK$2,040,603, down from HK$2,247,509 in the previous period[14]. - Total liabilities were HK$1,205,855, resulting in net assets of HK$834,748[14]. - The Group's total equity was HK$834.7 million, a decrease of 15.1% from HK$982.9 million as of March 31, 2022[90]. - The Group's net cash, after deducting utilized bank borrowings, was HK$123.2 million, with unutilized banking facilities of approximately HK$195.6 million, ensuring adequate funding for operating needs[78]. - The Group's treasury management policy focuses on maintaining liquidity and avoiding highly leveraged or speculative derivative products[93]. Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming quarters[14]. - The Group is focused on enhancing its online business and has seen high double-digit growth in online sales in Hong Kong, while also exploring further market expansion in Southeast Asia[26][27]. - Cost structure adjustments and management practices have been implemented to achieve sustainable profitability despite ongoing Covid-19 measures, with expectations for these measures to take effect by the end of the current financial year[26]. - The Group aims to enhance product assortment and introduce innovative products through promotions to excite consumers[74]. - The strategy includes embedding a route-to-consumer approach to meet changing consumer journeys, focusing on both online and offline channels[75]. - The Group plans to manage offline and online channels as one, adopting an agile management approach to respond to changing consumer habits[75]. - The Group is actively seeking to introduce new product categories, including health & fitness products and personal care items, to meet local customer needs[50]. Challenges and Market Conditions - The financial outlook indicates a cautious approach due to current market conditions and operational challenges[14]. - The retail sector is expected to remain under pressure due to external uncertainties, prompting the Group to enhance internal structures and risk management mechanisms[27]. - The Hong Kong SAR Government's Consumption Voucher Scheme, implemented in April and August 2022, has shown diminishing positive impacts on local retail spending[19]. - Sales in Hong Kong SAR from Mainland tourists accounted for only 2.8% due to strict border control measures during the Covid-19 pandemic[42]. - The Group continues to negotiate temporary rental concessions for certain retail stores to alleviate rental costs amid low tourist footfall[47]. Digital Transformation - The pandemic has accelerated retail digitalization, which is now a critical part of the company's commercial strategies[22]. - The Group's OMO strategies are still in early stages but are contributing to online sales growth and enhancing customer experience[50]. - Continuous investment in online platforms will position the group to better implement an OMO operating model, improving customer experience[77]. - The internal online live streaming team has been active on Douyin since November 2021, replicating the value provided by beauty consultants[76]. Employee and Community Engagement - The Group donated HK$0.4 million to government agencies and charitable organizations to support the community[43]. - As of September 30, 2022, the Group had approximately 2,700 employees, with staff costs amounting to HK$334.6 million for the six months ended[88]. - Key management compensation totaled HK$15,493,000 for the six months ended September 30, 2022, compared to HK$13,035,000 in the same period of 2021, representing an increase of approximately 18.9%[195].
莎莎国际(00178) - 2023 - 中期财报