Hong Kong Customs arrested seven men after a series of raids on mobile phone repair shops accused of misleading customers by selling counterfeit or generic components as brand-new original screens. The enforcement action, carried out between June 26 and June 29 with assistance from trademark holders, focused on outlets in Mong Kok, Tuen Mun and Yuen Long, according to statements from the department.

Investigators said some shops promoted screen replacement services at prices significantly below official repair charges, claiming to install full-price, new original displays. Undercover officers posing as customers were allegedly quoted between HK$1,000 and HK$2,000 for "original" screens, roughly half the about HK$2,500 charged through official channels, but were instead supplied with non-original or suspected counterfeit parts.

During the operation, Customs officers seized a batch of mobile phone components bearing suspected forged trademarks, including screens, batteries and back-glass panels. The seven arrested store employees, aged between 23 and 53, are suspected of applying false trade descriptions in the provision of repair services and of possessing goods with forged trademarks for commercial purposes, in possible contravention of Hong Kong’s Trade Descriptions Ordinance. All have been released on bail pending further investigation.

Customs officials warned that some businesses may be exploiting consumers’ limited technical knowledge and the practical difficulty of inspecting internal parts after repairs, using lookalike or non-original components to maximise profit. The department reminded traders that selling counterfeit goods and applying false descriptions are serious offences. On conviction under the Trade Descriptions Ordinance, offenders face a maximum penalty of a HK$500,000 fine and five years’ imprisonment. Consumers were advised to use reputable repair providers and to consult trademark owners or their agents if they have doubts about the authenticity of products or parts.

Sa Sa International Holdings Ltd. is ramping up store openings and restoring a full dividend payout after a sharp rebound in profit, underscoring management’s confidence in the recovery of Hong Kong and Macau’s beauty retail market. The cosmetics chain’s full-year sales rose 14.2% to HK$4.383 billion, while profit increased 1.6 times from a year earlier, allowing the group to boost its final dividend and return its payout ratio to 100%. Chairman and chief executive Simon Kwok said the stronger distribution reflects a “very strong” outlook, pointing to broad-based improvement in store traffic and spending.

Kwok said all key operating indicators in Hong Kong and Macau — including revenue, same-store sales, transaction volume, average ticket size and units per transaction — recorded year-on-year gains in the last financial year. Momentum has continued into the new year: in the first quarter of the current financial year, total revenue grew 24%, with offline sales up 30.9%. Hong Kong and Macau led with a 32.5% jump in offline sales, while Southeast Asia rose 17%. Online revenue slipped 3.2% overall, weighed by an 18.1% decline in mainland China, even as Hong Kong, Macau and Southeast Asia posted online growth.

On the back of the recovery, Sa Sa is reviving its brick‑and‑mortar expansion, particularly in tourist districts that were heavily rationalised during the downturn. The company plans to open 10 new stores in the current financial year; it has already added outlets in Mong Kok and Tsim Sha Tsui, including a large upstairs shop of about 6,000 to 7,000 square feet at the Mong Kok Man Wah Centre, on top of an existing ground‑floor unit. A store at the Airside mall in Kai Tak is slated to open in August, and another at Lok Ma Chau is planned to capture cross‑border traffic. Kwok said tourist‑area stores are now about half the number they once were, leaving “substantial room” to rebuild the network, though he stressed the group will not neglect local customers.

Store format will be a key part of the strategy. Kwok said he and his wife favour large outlets and that she has advocated opening flagship stores to serve both mainland and local shoppers in a more spacious, comfortable environment. Still, decisions between large and small formats will depend on rents and operating costs; smaller shops require less staff and investment. He said that while the opening of new outlets may “slightly” dilute same‑store sales metrics, the impact should be limited as long as locations and rental terms are carefully chosen. Footfall remains the main focus: “Only when there are people will there be revenue,” he said, adding that broader product assortment and competitive pricing should help underpin demand even as more drugstore and beauty chains enter the market.

Sa Sa also aims to stabilise and eventually grow its Southeast Asian operations, where the group ended the last financial year with 75 stores — 70 in Malaysia and five in Singapore. The region’s near‑term target is to achieve break‑even. Three of the five Singapore stores are already profitable, and Kwok said the company would consider opening more outlets there if suitable opportunities arise, noting that Singaporean sales growth was particularly strong in the second half of the year. The Malaysian business is described as stable, with management planning tighter cost control. Kwok played down concerns about competition from other travel destinations and cross‑border consumption trends, saying that Hong Kong remains convenient for many mainland visitors, some of whom come once or twice a month, and that the company’s breadth of products and pricing remain competitive.