In this file photo taken on July 6, 2019, tourists with luggage walk by a Sa Sa cosmetics store on Canton Road, Hong Kong. (PHOTO / AP)

Hong Kong-based beauty products retailer Sa Sa International Holdings recorded a turnaround in its performance for the previous fiscal year, according to its annual financial results announced on Thursday.  

According to the disclosed figures, the cosmetics retailer achieved a profit of HK$58.3 million ($7.4 million), compared to a loss of HK$343.7 million last year. Its annual turnover increased by 2.6 percent to HK$3.5 billion. The basic earnings per share improved from a per-share loss of 11.1 HK cents in 2022 to a positive 1.9 HK cents this year. 

The company has announced plans to further streamline its physical store network and negotiate reasonable rental rates during lease renewals to reduce fixed costs for both offices and stores

The company reported that the Chinese mainland economy has bounced back from the pandemic, with consumers spending more and citizens traveling abroad again. It predicts that mainland tourists will gradually return, but the number of Hong Kong residents traveling abroad has increased rapidly. Currently, Hong Kong is in a transitional phase towards a new normal. 

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Sa Sa International reported a 17 percent year-on-year increase in its offline sales in Hong Kong for the fiscal year ending in March. This marks a return to about 30 percent of its pre-Covid 19 level, with same-store sales rising by nearly 27 percent year-on-year. From April 1 to June 11, the company's total turnover increased by 32 percent year-on-year to HK$850 million.

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At the end of March, the company had a total of 186 retail stores, 82 of which were in Hong Kong. It has announced plans to further streamline its physical store network and negotiate reasonable rental rates during lease renewals to reduce fixed costs for both offices and stores.