Beauty chain Sa Sa’s profit soars as mainland Chinese tourists return to shop in Hong Kong

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The company said it is cautious about opening new stores, however, as the retail environment remains challenging in the absence of supportive government policies

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The cosmetics chain reported a gain of 276 per cent in earnings to HK$218.9 million (US$28 million) for the year ended March 31. Photo: Xiaomei Chen

Salina Li

Published: 7:34pm, 20 Jun 2024Updated: 7:39pm, 20 Jun 2024

Hong Kong beauty products retailer Sa Sa International saw its profit jump almost fourfold in the last financial year as the number of mainland Chinese tourists returning to shop in the city continued to rise.

The company said on Thursday it is cautious about opening new stores in the city, however, as the retail environment remains challenging in the absence of supportive government policies.

The cosmetics chain reported a gain of 276 per cent in earnings to HK$218.9 million (US$28 million) for the end year ended March 31.

The return of mainland tourists helped drive Sa Sa’s turnover up by 25 per cent to HK$4.37 billion, with sales in Hong Kong and Macau increasing by 35 per cent to HK$3.21 billion, according to the company’s latest annual report.

It proposed a final dividend for the year of 5 HK cents per share, representing about 70 per cent of the profit for the year. No dividend was paid in 2023.

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Sa Sa’s share price jumped 7.9 per cent to HK$0.82 at Thursday’s close.