Core Viewpoint - Sa Sa International Holdings Limited reported a significant decline in revenue and profit for the fiscal year ending March 31, 2025, indicating challenges in its business operations and a shift in consumer behavior towards online shopping [1][2]. Financial Performance - The company achieved a revenue of HKD 3.942 billion, a year-on-year decrease of 9.7% [2]. - Net profit plummeted by 64.8% to HKD 76.973 million [1][2]. - The gross profit margin decreased by 1.0 percentage point to 39.8% [2]. Business Strategy and Market Position - Sa Sa International plans to close all 18 physical stores in mainland China by June 30, 2025, transitioning to a supplier model to focus on online sales [5]. - The decision to close physical stores is driven by the fact that over 80% of local revenue comes from online business, reflecting a consumer shift towards e-commerce [5]. - The company aims to enhance its presence on popular social media platforms and digital channels, utilizing live streaming and mini-programs to boost brand visibility and competitiveness [5]. Operational Challenges - The company's online shopping platforms, such as its WeChat mini-program, have faced operational issues, including a closure announcement and long delivery times for products shipped from Hong Kong [5][7]. - Despite a recent sales increase of 4.5% to HKD 811.2 million for the latest fiscal quarter, the company still lags behind competitors in online market positioning [10].
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