Poor mainland sales have thumped profitability at Sa Sa International, the Hong Kong chain store company.
The firm, which sells cosmetics including skincare and baby care products, saw its net profit slump 54 per cent to HK$383.5 million in the year ended March 2016, and officials say they expect the Hong Kong retail market to “continue to face a number of challenges” in the 12 months ahead.
Its turnover in Hong Kong and Macau dropped by 14.2 per cent to HK$6,315.6 million, while same store sales fell 11.8 per cent.
Simon Kwok Siu-ming, its chairman, said the primary reason for the decline was what he called an unabated decrease in mainland tourist arrivals to Hong Kong since March 2015.
Industry figures show mainland tourist traffic to Hong Kong dropped 8.6 per cent in the last fiscal year.
(Source: South China Morning Post )