International : Sa Sa Announces Unaudited Sales Updates for the Third Quarter (October to December 2016) of FY2016/17

Sa Sa Announces Unaudited Sales Updates for the Third Quarter (October to December 2016) of FY2016/17

Highlights

Group - Retail and Wholesale

3 months ended 31 December 2016	9 months ended 31 December 2016
Turnover (HK$ million) YoY% change	2,161.4 +0.9%	5,789.4 -2.2%

HK and Macau - Retail and Wholesale

Turnover (HK$ million) YoY% change	1,759.2 +1.1%	4,696.2 -2.0%
Same store sales YoY % change	-2.0%	-3.0%
Average sales per transaction (HK$) YoY% change	360 -1.6%	334 -4.2%
Total no. of transactions (million) YoY% change	4.8 +2.6%	13.9 +2.4%

Remarks: Figures in the above table include adjustments according to the Hong Kong International Financial Reporting Interpretation Committee - Interpretation 13 on the bonus point scheme.

(16 January 2017 - HONG KONG) - Sa Sa International Holdings Limited ('Sa Sa' or the 'Group', stock code: 0178) announced today the unaudited sales updates of the Group for the third quarter from 1 October to 31 December 2016.

For the third quarter from 1 October to 31 December 2016, the Group's retail and wholesale turnover increased by 0.9% on a year-on-year basis. The Group's retail and wholesale turnover in other markets outside Hong Kong and Macau (including Mainland China, Singapore, Malaysia, Taiwan and sasa.com) remained flat for the same period.

Following the gradual tapering of year-on-year retail sales decline in the first and second quarters in Hong Kong and Macau markets, the same store sales in the third quarter decreased by 2.0% while retail sales increased by 1.0% on a year-on-year basis. Sales mainly benefited from the traffic growth of Mainland Chinese customers driving a 5.4% increase in the number of transactions while that of local customers remained flat. The average sales per transaction of local customers and Mainland Chinese customers increased by 0.2% and decreased by 3.6% respectively.

Sa Sa Announces Unaudited Sales Updates for the Third Quarter (October to December 2016) of FY2016/17 16 January 2017 / Page 2

Number of Stores/Counters by Market

As at 31 December 2016	As at 30 September 2016
Hong Kong and Macau	115*	113*
Mainland China	56	53
Singapore	21	23
Malaysia	73*	68*
Taiwan	25	26
Total	290	283

* Include one single-brand store/ counter

Dr Simon Kwok, BBS, JP, Chairman and Chief Executive Officer of the Group, said, "The improvements in sales performances are due to the Group's ongoing efforts to adjust product offerings to adapt to market demand for trendy products. This resulted in continued downward pressure on gross profit margin for the quarter."

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