(Infocast News) Sa Sa International Holdings Limited (00178) announced the sales update of the group for the first quarter from April to June.
For the first quarter, the group’s retail and wholesale turnover decreased by 67.9% on a year on year basis.
In the Hong Kong and Macau SARs, the group’s retail and wholesale turnover decreased by 74.3%, while same store sales dropped by 71.9%. The COVID-19 pandemic resulted in a decline in mainland tourist arrivals, leading to 98.4% decline in the Group’s number of transactions with mainland tourists, as well as 57.0% decline in the overall transaction volume. The average sales per transaction of local customers dropped by 6.5%. While the basket size of the local customers is smaller, their transaction volume mix has become very significant, this change has resulted in a 42.0% drop in overall basket size.
In the Macau SAR, the Consumption Subsidy Scheme adopted by the government in May drove up the transaction volume of local customers, leading to year on year double-digit sales growth from local customers in both May and June.
The group’s overall inventory has been reduced from around HK$1 billion as of 31 March 2020 to around HK$839 million as of 30 June. Cash balance was around HK$663 million as of 30 June and is adequate to meet its current business needs.