On October 12th, Sa Sa International Holdings Limited (referred to as “Sa Sa International”) released its second-quarter sales data for the period ending September 30, 2023. In the second quarter, Sa Sa International’s revenue increased by 46.2% year-on-year to HKD 1.097 billion ($140.2 million).
During the reporting period, Sa Sa International’s offline sales increased by 50.6% year-on-year to HKD 916 million, while online sales increased by 27.7% to HKD 182 million ($23.3 million). Online sales accounted for 16.5% of the total revenue. Compared to the fiscal year ending March 31, 2019, before the COVID-19 pandemic, Sa Sa International’s offline sales have recovered to 47.2% of the previous level.
Specifically in the Mainland China market, Sa Sa International’s online and offline sales revenue increased by 13.7% year-on-year to HKD 146 million ($18.66 million). Despite a reduction of 19 stores, offline sales have recovered to 57.8% of the pre-pandemic level, with gross profit similar to the same period last year. This indicates an improvement in gross profit margin and further enhancement of operational efficiency. Online sales in Mainland China increased by 55.2% year-on-year to HKD 108 million ($13.8 million), accounting for 73.7% of the total sales in that market.
Sa Sa International stated that the Mainland China market remains its medium to long-term business objective. The company will continue to develop third-party social platforms and WeChat mini-programs, and focus on strengthening customer relationship management systems to create business opportunities through online and offline integration.
In the Hong Kong and Macau markets, Sa Sa International achieved a total sales revenue of HKD 860 million ($109.93 million) from online and offline channels, representing a year-on-year growth of 61.6%. In the offline channel, sales to travelers accounted for 50%, compared to approximately 70% before the pandemic.