Yesterday (June 20th), Sa Sa International Holdings Limited (referred to as “Sa Sa International”) released its annual performance announcement for the fiscal year ending March 31, 2024, as well as information on dividends, suspension of share transfer registration procedures, and the latest operational updates from April 1 to June 16, 2024.
According to the financial report, for the fiscal year 2024, Sa Sa International achieved operating revenue of HKD 4.368 billion ($559.8 million), representing a 24.8% increase compared to the same period last year. Among them, the offline sales revenue in Hong Kong and Macau reached HKD 3.207 billion ($411 million), showing a 35.1% growth compared to the same period.
Regarding the increase in revenue, Sa Sa International stated that the main reason for the growth was the return of mainland Chinese tourists to Sa Sa International’s core market, the Hong Kong and Macau region, after the resumption of travel between mainland China and Hong Kong/Macau in January 2023. This significantly contributed to the substantial growth in offline sales revenue in the Hong Kong and Macau region.
In terms of sales channels, during the reporting period, Sa Sa International’s online sales in mainland China experienced a significant increase of 74.5% in the second half of the fiscal year, becoming the main sales channel in that region. However, offline sales decreased due to the closure of five physical stores, resulting in a 22.9% decline to HKD 166 million ($21.27 million).
Regarding this, Sa Sa International mentioned that a significant portion of its online sales in mainland China was conducted through the group’s cross-border WeChat mini-program and third-party platforms including Tmall, JD.com, and Douyin. Online sales in mainland China recorded a substantial growth of 36.3% to HKD 415 million ($53.19 million) during this fiscal year, accounting for 58.8% of the group’s total online revenue. As of March 31, 2024, the online business successfully turned from a loss to profit, achieving a significant milestone.
In terms of geographical breakdown, Sa Sa International’s main revenue comes from online and offline retail and wholesale channels in the Hong Kong and Macau region, mainland China, and Southeast Asia. The online and offline sales revenue in Hong Kong and Macau reached HKD 3.4 billion ($435.7 million), accounting for 78.1% of Sa Sa International’s total sales, with a growth of 31.4%. In the mainland China market, Sa Sa International’s online and offline sales revenue reached HKD 582 million ($74.59 million), representing 13.3% of the total sales, with a growth of 9.7%.
It is worth mentioning that in order to enhance its competitiveness in the mainland China market, Sa Sa International will focus on developing exclusive agency brands and strive to add product categories with market advantages, aiming to build brand loyalty and avoid direct price competition.
