Revenue Performance - The group's revenue decreased by 10.4% to HKD 1,920.5 million, primarily due to weak macro market performance and cautious spending by mainland Chinese tourists in Hong Kong and Macau[1]. - Total revenue for the Hong Kong and Macau segment was HKD 1,403,071,000, while the total revenue for the mainland China segment was HKD 311,152,000, resulting in a total revenue of HKD 1,920,543,000 for the period ending September 30, 2024[11]. - The group's total revenue for the six months ended September 30, 2024, was HKD 1,920.5 million, a decrease of 10.4% compared to the same period last year[43]. - The group's total revenue for the third quarter from October 1 to November 10, 2024, decreased by 7.0% year-on-year, with Hong Kong and Macau sales down by 6.4% compared to a decline of 20.4% and 16.4% in the first and second quarters respectively, indicating significant improvement[71]. Profitability - Gross profit decreased by 14.1% to HKD 756.5 million, with a gross profit margin decline of 1.7 percentage points to 39.4%[1]. - The group's profit before tax was HKD 43.9 million, while profit after tax was HKD 32.4 million, compared to HKD 102.4 million in the previous year[1][2]. - Basic earnings per share were HKD 1.0, down from HKD 3.3 in the previous year[2]. - The group reported a profit of HKD 32.4 million, with basic earnings per share of HKD 0.01, down from HKD 0.033 in 2023[45]. - The group has identified operational segments including Hong Kong and Macau, mainland China, Southeast Asia, and others, with performance assessed primarily from a regional perspective[10]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.75 per share, equivalent to approximately 72% of the profit for the period[1]. - The interim dividend declared is HKD 0.75 per share, totaling HKD 23,274, compared to no dividend in the same period last year[22]. - The group maintained a stable dividend policy, declaring an interim dividend of HKD 0.0075 per share, representing approximately 72% of the period's profit[45]. Sales Channels and Market Performance - Online business in mainland China increased by 61.2%, rising from HKD 159.7 million in the same period last year to HKD 257.5 million[1]. - Total online sales reached HKD 396.2 million, accounting for 20.6% of total sales, up from 13.9% in 2023[38]. - Offline sales in Hong Kong and Macau fell by 18.4% to HKD 1,308.2 million, while online sales in mainland China increased by 27.2% to HKD 257.5 million[41]. - The group conducted 79 live-streaming sales events, which accounted for 21.5% of total online sales in Hong Kong and Macau during the period[54]. - The online shopping and in-store pickup (BOPIS) model continues to be a preferred choice for customers, enhancing the online-offline integration experience[53]. Operational Efficiency and Cost Management - Employee benefits expenses, including director remuneration, decreased to HKD 331,234, down 4.3% from HKD 345,968[15]. - The group plans to enhance operational efficiency through digital optimization and strict zero-based budgeting[64]. - The group aims to strengthen its exclusive brand portfolio and improve inventory management to enhance investment returns[64]. - Capital expenditures amounted to HKD 30,575,000, with HKD 15,335,000 attributed to Hong Kong and Macau, and HKD 15,201,000 to mainland China[11]. Market Trends and Consumer Behavior - The number of visitors from mainland China to Hong Kong and Macau reached 21.4 million and 17.0 million respectively, representing an increase of 13.0% and 13.8% compared to the same period last year[31]. - The group observed a shift in the demographics of mainland visitors, with younger travelers preferring value-for-money options and showing interest in niche brands[31]. - The Hong Kong retail sales showed a decline of 10.8% from April to September 2024, while the pharmaceutical and cosmetics sales increased by 0.6%[25]. - Macau's gaming revenue has been impacted by increased competition from other regions, but the government announced a new visa policy effective May 6, 2024, to attract more mainland visitors[33]. Financial Position and Assets - The group's total assets less current liabilities amounted to HKD 1,573.2 million, down from HKD 1,688.8 million[5]. - Net assets decreased to HKD 1,145.9 million from HKD 1,252.1 million[5]. - As of September 30, 2024, the group's total equity was HKD 1,145.9 million, with a cash and bank balance of HKD 337.9 million, indicating a strong financial position[74]. - The total assets as of September 30, 2024, were HKD 2,343,253,000, with non-current assets amounting to HKD 1,120,182,000 and current assets at HKD 1,223,071,000[12]. Strategic Initiatives - The group launched an upgraded membership program to enhance personalized services for members, completing a technical upgrade of the membership system by September 2024[37]. - The group is focusing on enhancing its store network in Hong Kong and Macau, maintaining 26 stores in core tourist areas as of September 30, 2024[36]. - The group is leveraging existing resources and partnerships with third-party e-commerce platforms to expand into North America, Australia, and New Zealand, where customer loyalty is high despite lower profit margins[70]. - The group is focusing on developing exclusive brands in mainland China to build brand loyalty and avoid direct price competition, while also exploring opportunities in online channels, particularly live streaming[67].
莎莎国际(00178) - 2025 - 中期业绩