(Yicai Global) Feb. 22 -- Hong Kong-based cosmetics retail chain Sa Sa International Holdings Ltd. will cease operations in Taiwan amid continued sluggish performance in the market, with all stores on the island to close their doors for good at the end of March.

The firm's sales in Taiwan fell 11.5 percent annually to USD19.72 million (HKD154.3 million) in the 10 months between March 2017 and January this year, marking a six-year losing streak, Sa Sa International said in a statement.

Sa Sa International will focus on operations in mainland China, Hong Kong and Macau, as well as the e-commerce market. The company has continued to underperform in the Taiwan market despite efforts to reduce losses through resource integration and cost-cutting.

The enterprise expects business to be boosted by better transport links between Hong Kong and Macau following the completion of the Hong Kong-section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, as well as the government-backed Guangdong-Hong Kong-Macao Greater Bay Area initiative, it noted in the statement.

The decision will affect some 260 employees and the firm will compensate them in line with local labor regulations. The move will not have a significant impact on overall earnings, as Taiwan only accounts for 2.5 percent of its total sales revenue.

Founded in 1978, Sa Sa International currently has some 280 retail stores in Asia, selling more than 700 brands of cosmetics, skincare products and perfumes. Its first store in the mainland opened in Shanghai in 2005, and its e-commerce platform went live in 2015.