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.

Hong Kong’s national security police have arrested the operators of Hunter Bookstore, one of the city’s best-known independent bookshops, in a move that underscores rising pressure on small publishers and retailers carrying titles deemed politically sensitive by authorities. Police said they detained a 33‑year‑old woman and a 32‑year‑old man on June 24 on suspicion of “acts with seditious intention” and handling property believed to represent the proceeds of an indictable offence. Local media identified one of those arrested as former district councillor and Hunter Bookstore founder Winnie Ho, though police did not name the suspects in their official statement.

Officers from the National Security Department searched the Hunter Bookstore premises in Sham Shui Po on Wednesday evening, according to police and local media accounts. More than a dozen officers were reported to have entered the shop, pulling down its metal shutters and removing stickers from the windows, while checking the identities of customers and passers-by. Police said they seized a batch of items, books and documents they described as having “seditious intention,” alleging that materials on display or for sale incited hatred against the Hong Kong Special Administrative Region government, the judiciary and law‑enforcement agencies, in breach of Article 24 of the city’s Safeguarding National Security Ordinance.

Authorities also said the two suspects were believed to have received multiple remittances from foreign political organisations, and indicated they are investigating potential violations of Hong Kong’s Organized and Serious Crimes Ordinance. Convictions for acts with seditious intent can carry sentences of up to seven years in prison, while handling property believed to be derived from an indictable offence can draw terms of up to 14 years. Local reports cited the presence of a biography of jailed media tycoon Jimmy Lai and works by political cartoonist Zunzi among the titles removed by police; similar books were previously described by pro‑Beijing outlets as “soft resistance” publications when criticising so‑called “yellow” bookstores that supported the 2019 protest movement.

The raid on Hunter Bookstore comes three months after national security officers searched another independent outlet, Yat-Chuen Bookhouse, and arrested its operator and three staff members over the display and sale of the same Jimmy Lai biography. All four were later granted bail, but the case sent a chill through Hong Kong’s small ecosystem of independent booksellers, many of which stock social and political titles alongside general literature. Ho has previously said that government departments carried out dozens of inspections and other actions targeting Hunter Bookstore over several years, even before the latest operation, as authorities and pro‑government media stepped up scrutiny of shops perceived to hold pro‑democracy views.

Ho, a former journalist and member of the now‑disbanded Civic Party, opened Hunter Bookstore after resigning her Sha Tin District Council seat and withdrawing from frontline politics in 2021. She has described the shop’s name, drawn from the Japanese manga “Hunter × Hunter,” as a statement against passivity, and has publicly argued that books should remain “open” and “free” unless and until explicitly banned. In interviews, she acknowledged a climate of fear among publishers and readers but said she sought to maintain a space for discussion within the narrowing bounds of Hong Kong’s legal environment. The latest arrests mark a further escalation in the city’s approach to independent bookshops, reinforcing a message that even small‑scale retail operations risk national‑security scrutiny over the choice of titles they carry and the sources of their funding.