Sa Sa International (0178) projects to close 15 to 20 shops in Hong Kong by the end of March 2022, but will add 30 stores in the mainland after recording a net loss of more than HK$350 million for the fiscal year ending March.
Sa Sa said that it will close some physical stores in Hong Kong, especially in tourist areas, to cut down on rental costs.
The group stated that the leases of 38 of their Hong Kong shops expired this year. Last year, the renewal rent in tourist areas was reduced by about 70 percent and in non-tourist areas by about 26 percent.
So far this year, the rent renewal in tourist areas was reduced by 65 percent and in non-tourist areas by about 30 percent.
As of the end of March, Hong Kong and Macau stores were reduced from 112 stores to 100 stores, Malaysian stores were reduced from 79 to 75, and mainland stores increased from 44 to 57.
The group will focus more resources on its online business.
This came after its net loss narrowed by 32 percent year-on-year to HK$351.4 million.
Basic loss per share amounted to 11.3 HK cents. The board does not recommend the payment of a final dividend.
Turnover for the continuing operations decreased by 46.8 percent to HK$3.04 billion. Sales of retail and wholesale in Hong Kong and Macau reduced by 57.8 percent to HK$1.99 billion. Mainland revenue rose 15.9 percent in yuan to HK$289.85 million. From April 1 to June 9, sales rose 55.1 percent. Hong Kong and Macau sales rose 53.5 percent and mainland sales rose 30.7 percent due to low base effect.