Can you help me summarize below in few sentences?During the Financial Year, the Group’s turnover amounted to HK$3,500.5 million, representing an increase of 2.6% over the previous 
year, as performance held back by Covid-19 outbreaks in Mainland China and Macau SAR prompting lockdowns in affected cities and 
towns disrupted our business operations. Offline retail sales and wholesales (“Offline Sales”) in Hong Kong and Macau SARs increased 
by 7.3% to HK$2,373.3 million, Offline Sales in Mainland China decreased by 22.9% to HK$225.2 million while Offline Sales in Southeast 
Asia increased by 64.9% (in original currency) to HK$300.0 million. The Group operated a total of 186 retail outlets across all regions as 
at 31 March 2023.
Turnover of the Group’s online business decreased by 13.5% to HK$602.0 million for the Financial Year, affected by Covid-19 
disruptions in Mainland China where online sales decreased by 33.4%, the only region recording a decrease. Total online business 
contributed 17.2% to the Group’s total turnover (2022: 20.4%), a significant increase as compared to the financial year ended 31 March 
2019 immediately before the pandemic (“pre-pandemic period”). The total online business recorded a loss of HK$21.2 million for the 
Financial Year as compared to a profit of HK$6.9 million for the previous year as a result of Covid-19 pandemic impact in Mainland 
China and the strength of the Hong Kong dollar against a basket of currencies including the Renminbi.
In terms of category sales, during the peak of the pandemic, the Group seized the opportunity from growth of personal protective 
equipment (“PPE”), and more recently the demand for post Covid-19 recovery health food and supplements. Since the fourth quarter, 
focus has switched to make-up which has made a strong recovery post relaxation of pandemic measures including the requirement to 
wear a protective mask. The Group continues to strengthen product sourcing to enrich the product portfolio and aside from our core 
categories of skincare, make-up and fragrance, is beginning to grow additional categories including inner beauty, personal care and 
beauty equipment. We will continue to invest in the category extension strategy, explore potential categories, meet market trends and 
customer needs, and strive to bring more product choices to consumers.
Group profit for the Financial Year was HK$58.2 million, a significant turnaround compared to the loss of HK$343.7 million in the 
previous year, and the loss of HK$133.2 million for the first half of the Financial Year. Excluding the provision for impairment made 
in accordance with HKAS 36 that applied to retail store assets (including right-of-use assets and property, plant and equipment), the 
subsidies for Covid-19 pandemic by local governments, temporary rental concessions, recognition of a deferred tax asset in respect of 
prior years’ tax losses in Hong Kong and Macau SARs and the accrued past service costs due to change in the offsetting arrangement 
under the mandatory provident fund, the Group’s loss during the year narrowed to HK$54.6 million (an improvement of 81.7%) 
compared to the previous year.
Sa Sa International Holdings Limited Annual Report 2022/2023 34
MANAGEMENT DISCUSSION & ANALYSIS
Our total net cash balance as at 31 March 2023 increased to HK$273.3 million (2022: HK$194.2 million) with net cash generated from 
operating activities (less the payment of lease liabilities and interest) for the Financial Year increasing significantly by HK$419.3 million 
to HK$144.6 million largely through cost structure optimization, gross margin expansion and management of inventory on hand.
1) Rigour in adopting zero-based budgeting practices, centralising cost centres to enhance economies of scale and drive cost 
optimization and negotiating fair rent on lease renewals, has led to a significant improvement in operating costs efficiencies 
during the Financial Year.
2) Adopting disciplined category management practices, adding to the exclusive brand portfolio and discontinuing less popular and 
unprofitable lines led to an improvement in gross margin that continued throughout the Financial Year from 35.5% in the first 
quarter to 43.5% in the fourth quarter.
3) Proactively managing inventory, striking a balance between holding sufficient inventory taking into account Covid-19 impacted 
delivery lead times to ensure adequate stock during peak periods, and the cost of investing in inventory, has led to a reduction in 
the inventory balance at the year-end. As at 31 March 2023, the Group’s inventory was HK$669.5 million, representing a decrease 
of HK$78.5 million as compared to 31 March 2022, while inventory turnover days was 116 days representing a decrease of 11 days.
The Group is increasingly laser-focused on managing product categories, to ensure it introduces trending products and grows 
category share reinforcing its position as a one-stop beauty specialty platform.
Basic earnings per share amounted to 1.9 HK cents (2022: basic loss per share of 11.1 HK cents). Given the Group has only just emerged 
from the challenges brought about by the pandemic in the core markets where the Group operates, the Board does not recommend 
the payment of a final dividend for the Financial Year in accordance with the Group’s policy to pay dividends out of profits and for the 
reason of responsible risk management (2022: Nil)