SA SA INT'L (00178) announced its interim results with a net profit of approximately HK$32.408 million, a decrease of 68.36% compared to the same period last year.

SA SA INT'L (00178) announced its interim performance for the six months ended September 30, 2024, with a year-on-year decrease in revenue of 10.4% to approximately 1.921 billion Hong Kong dollars, a gross profit decrease of 14.1% to 756.5 million Hong Kong dollars, and a net profit of approximately 32.408 million Hong Kong dollars, a decrease of 68.36% year-on-year; earnings per share were 1 Hong Kong cent, with an interim dividend of 0.75 Hong Kong cents per share. The announcement stated that the decrease in revenue was mainly due to challenges faced by the group's core markets in Hong Kong and Macau, China. Operating pressures were mainly due to macroeconomic market weakness, local residents in core markets of Hong Kong and Macau continuously traveling to southern China, a significant increase in outbound tourism, partly due to the relative strength of the Hong Kong dollar against a basket of other currencies (including the Japanese yen), which reduced local consumption, and Chinese mainland visitors to Hong Kong and Macau becoming more cautious in their spending. The growth in online sales channels in China and the opening of five physical stores in Singapore since April 2024 helped alleviate these impacts. Retail and wholesale revenue in Hong Kong and Macau (offline sales) fell by 19.4% to 1.308 billion Hong Kong dollars. Offline sales in Southeast Asia increased by 18.5% to 162.4 million Hong Kong dollars; while in mainland China, due to a decrease in operating 12 stores compared to the same period last year, offline sales decreased by 36.7% to 53.7 million Hong Kong dollars. As of September 30, 2024, the group operated a total of 178 retail stores in all regions. Online sales for the group increased significantly by 32.6% to 396 million Hong Kong dollars, accounting for 20.6% of the group's total revenue (2023: 13.9%). The growth in online sales was mainly driven by the online business in the Chinese mainland market increasing significantly from 160 million Hong Kong dollars in the same period last year to 257.5 million Hong Kong dollars in the current period.