Hong Kong-based Sa Sa International Holdings has reported a drop in profits of 37.3 percent for the first six months, due to a poor retail environment in the mainland with a poor tourist footfall.
Profits fell to HK$96 million as retail sales dropped by 3.6 percent in Hong Kong and Macau, which attributes 80 percent to the company’s turnover.
Turnover fell 4 percent to HK$3.63 billion year on year while total sales transactions grew 2.3 percent after six quarters of decreasing transaction volume, according to South China Morning Post.
Guy Look, Chief Financial Officer and Executive Director, said, “Obviously it could be better. In Hong Kong, we have tried for the last 15 months or so to gain market share, to increase competitiveness. I think what has been important in the first half of this year is that we feel we are moving in the right direction in terms of providing what the market wants.”
Sales in Taiwan and Singapore fell 22.8 percent and 11 percent respectively, which is said to have hindered profits. The company is said to be downsizing in the markets and will be making rental cuts in Hong Kong and Macau of 40 to 50 percent.