Hong Kong Technology Venture Company (1137) H1 2025 earnings summary

Executive summary

• The group maintained stable core business performance in a challenging Hong Kong retail environment, with only a slight decrease in GMV and turnover year-over-year.

• Key innovations included the expansion of Wet Market Express, the launch of the "Shipped from Mainland" section, and the CASHBACK affiliate program.

• HKTVmall celebrated its 10th anniversary, reinforcing its position as Hong Kong's largest Ecommerce platform.

• The group adopted a cautious, cost-efficient approach, resulting in improved adjusted EBITDA and offsetting new venture losses, though a net loss was still recorded.

• HKTVmall maintained stable user and customer numbers, outperforming the broader retail market and continuing to innovate.

Financial highlights

• GMV on order intake for 1H2025 was HK$4,182.9 million, down 1.2% year-over-year; turnover was HK$1,888.4 million, down 0.5%.

• Adjusted EBITDA rose 27.8% to HK$48.1 million; adjusted free cash flow more than doubled to HK$101.3 million.

• Net loss narrowed to HK$23.2 million from HK$27.5 million a year earlier.

• Gross profit margin for direct sales was 23.9%; blended commission rate for concessionaire sales improved to 23.7%.

• Cash position at period end was HK$398.2 million, down from HK$541.7 million at year-end 2024, mainly due to a special dividend payment.

Outlook and guidance

• Management remains focused on innovation, customer engagement, and disciplined resource allocation to navigate market headwinds.

• Full-year 2025 targets for GMV and other key metrics remain on track, with 1H2025 performance aligning closely with expectations.

• New Ventures and Technology segment will continue to receive strategic investment, with ongoing evaluation of project viability.