Hong Kong skin care and cosmetics retailer Sa Sa International Holdings has reported a half-year net profit plunge of 55 percent; hit by a drop in mainland tourists.
Net profit fell to HK$153 million ($19.7 million) for the six months ending September 2015, while revenue fell from HK $4.23 bilion to HK $3.78 billion, a drop of 10.6 percent. The company warned in October that it expected a drop in half-year profit due to a worsening operating environment.
Hong Kong is an expensive tourist destination due to its strong dollar, with many Chinese consumers said to be vacationing in other, more exotic locations. Indeed, total tourist arrivals slipped by 4 percent in 2014, while mainland visitors, fell 4.7 percent in September from the previous year, according to Hong Kong Tourism Board data.
According to the company, the year ahead will be a challenging one.