Core Viewpoint - Sasa International Holdings Limited is exiting the offline retail market in mainland China by closing its last 18 stores by June 30, marking a significant shift in its business strategy due to declining profits and changing consumer behavior [1][9]. Financial Performance - For the fiscal year ending March 31, 2025, Sasa International reported a revenue decline of 9.7% to HKD 3.942 billion, with net profit plummeting 64.8% to HKD 76.97 million [3][4]. - The gross profit margin decreased from 40.8% to 39.8%, while core earnings fell by 51.1% [4]. - Earnings per share dropped from HKD 7.1 to HKD 2.5, and the final dividend was reduced from HKD 0.05 to HKD 0.017 [4]. Market Segmentation - The core market of Hong Kong and Macau saw a revenue decline of 12.3% to HKD 2.992 billion, accounting for 75.9% of total revenue [4]. - Despite a narrowing decline in offline sales from 19.4% to 6.3%, cautious spending by tourists and a strong US dollar impacted performance [4]. - In contrast, the Southeast Asian market emerged as a growth engine, with offline sales increasing by 15.4% to HKD 332 million, supported by the opening of new stores in Malaysia and Singapore [5]. Mainland China Market Dynamics - The mainland China market exhibited a stark contrast, with total revenue declining by 10.5% to HKD 521 million, where online sales accounted for 80.3% of the revenue [6][9]. - The offline sales channel saw a dramatic drop of 38.2% to HKD 103 million, prompting the decision to close all offline stores [6][9]. - Sasa's initial entry into the mainland market in 2005 was marked by competitive pricing and product offerings, but the rise of domestic beauty brands has eroded its market position [9]. Strategic Shift - The company plans to focus resources on enhancing its online business, increasing marketing efforts on social media and digital platforms to boost brand visibility and competitiveness [9].

Core Viewpoint - Sa Sa International Holdings Limited has announced the closure of its last 18 offline stores in mainland China by June 30, marking its exit from the mainland offline retail market. The company's annual revenue for the fiscal year ending March 31, 2025, decreased by 9.7% to HKD 3.942 billion, with net profit plummeting by 64.8% to HKD 76.97 million [2][5]. Financial Performance - For the fiscal year 2024/25, Sa Sa International reported a total revenue of HKD 3.942 billion, a decline of 9.7% year-on-year [5]. - The net profit for the same period fell significantly by 64.8% to HKD 76.97 million [5]. - The core market of Hong Kong and Macau saw a revenue drop of 12.3% to HKD 2.992 billion, accounting for 75.9% of total revenue [5]. - The Southeast Asian market showed growth, with offline sales increasing by 15.4% to HKD 332 million [5]. Market Dynamics - The mainland China market is experiencing a "strong online, weak offline" trend, with total revenue declining by 10.5% to HKD 521 million, where online sales accounted for 80.3% of the revenue [6][8]. - Offline sales in mainland China plummeted by 38.2% to HKD 103 million [6]. Strategic Shift - Sa Sa International plans to focus resources on developing its online business, enhancing marketing efforts on popular social media platforms and digital channels to increase the visibility and competitiveness of its exclusive brands [9]. Historical Context - Sa Sa International entered the mainland market in 2005 and expanded its store count to 77 by the fiscal year 2021. However, competition from domestic beauty brands has eroded its market advantage, leading to a reduction in store numbers [8].