Hong Kong Technology Venture Company (1137) H1 2026 earnings summary

Executive summary

• Achieved record GMV on order intake of HK$4,469.8M, up 6.9% year-over-year, driven by Hong Kong Ecommerce and Wet Market Express.

• Intensified competition in Hong Kong retail led to aggressive pricing and promotional strategies, impacting short-term profitability but driving GMV and customer base growth.

• Adjusted EBITDA turned negative at HK$(6.2)M (1H2025: HK$48.1M) due to increased marketing and promotional investments.

• Net loss widened to HK$78.1M from HK$23.2M year-over-year.

• Continued focus on AI adoption, operational efficiency, and resource reallocation to core Ecommerce business.

Financial highlights

• Turnover rose 8.3% to HK$2,045.3M (1H2025: HK$1,888.4M); direct merchandise sales up 8.1%.

• Gross profit margin for direct sales decreased to 23.2% (1H2025: 23.9%) due to pricing initiatives.

• Adjusted free cash flow was negative HK$35.1M (1H2025: positive HK$101.3M).

• Cash position at period end was HK$359.6M, up from HK$346.5M at year-end 2025; net cash and liquidity position at HK$477.6M as of 30 June 2026.

• No interim dividend declared.

Outlook and guidance

• Will continue to invest in pricing competitiveness, customer engagement, and fulfilment expansion, accepting short-term profitability pressure for long-term market share gains.

• Plans to phase out HKTVplus membership in 2H2026 to streamline customer proposition.

• Focus remains on expanding grocery and daily essentials, refining discount campaigns, and enhancing AI-driven operations.