Sa Sa International (178) H1 25/26 earnings summary

Executive summary

• Turnover rose 6.6% year-on-year to HK$1,990.6 million for the six months ended 30 September 2025, driven by increased tourist arrivals in Hong Kong and Macau, improved sales, and a strategic shift to online in Chinese Mainland, resulting in a turnaround from loss to profit.

• Profit for the period (including discontinued operations) increased 54.8% year-on-year to HK$50.2 million, with basic earnings per share at 1.6 HK cents and an interim dividend of 1.15 HK cents per share, reflecting a payout ratio of approximately 71%.

• Offline sales in Hong Kong and Macau increased 8.9% year-on-year, supported by improved consumer sentiment and tourism, while online sales overall accounted for 20% of total turnover.

• The Group closed all physical stores in Chinese Mainland by June 2025 to focus on online business.

• Operational efficiency improved, with cost controls and a focus on sustainable long-term profit growth.

Financial highlights

• Gross profit increased 4.2% year-on-year to HK$755.0 million, with gross profit margin slightly down by 0.9ppt to 37.9%.

• Operating profit from continuing operations was HK$69.5 million, up from HK$65.4 million last year.

• Basic earnings per share rose to 1.6 HK cents from 1.0 HK cent last year.

• Interim dividend payout ratio was approximately 71% of profit.

• Cash and bank balances stood at HK$251.1 million as of 30 September 2025, with a current ratio of 1.6.

Outlook and guidance

• The Group aims to maintain a stable gross profit margin and sustainable growth by adapting to market trends, optimizing omni-channel integration, and expanding the OMO (online-merge-offline) experience.

• For the third quarter (1 Oct–16 Nov 2025), turnover increased 11.3% year-on-year, with online sales up 16.1%.

• Plans include further digital upgrades, product mix optimization, and expansion of the store network in Hong Kong and Macau.