18th September 2019 – (Hong Kong) The 5-month total revenue of Sa SA International Holdings Ltd (00178) reached HK$3 billion, the reduced turnover sustained a year-on-year fall of 15%. Hong Kong and Macau markets were impacted most with 17% drop in sales. The total revenue for August plummeted over 28% while in Hong Kong/Macau alone, sales fell 32%. The group recorded its first loss for August after 5 months of operation. The management warned that the revenue for September is forecasted to be similarly weak as between 1st September and 14th September, monthly sales fell over 14%. The continuous civil unrest coupled with trade war and devaluation of yuan have resulted in drop of incoming tourists from mainland China which in turn, impacted its revenue.
The management will start to renegotiate with landlords on rental downward adjustments. Going forward, salaries and operational costs will also be trimmed to reduce burden on the company. More promotions and discounts will be carried out storewide to reduce inventory and to increase liquidity in cash. The group will also reevaluate sales strategies and increase more presence online to reduce dependence on physical stores.