Hong Kong Technology Venture rides high on acquisitions and profits

Hong Kong Technology Venture (1137), the parent company of HKTVMall, reported 3 percent growth in its interim net profit to HK$95.8 million.

The local e-commerce giant declared an interim dividend of 8 HK cents per share after eight years.

The group’s total turnover rose 13 percent to HK$1.52 million in the first half, of which multimedia advertising income and licensing of program rights surged 376 percent to HK$48.1 million.

For its e-commerce operation, the gross merchandise value on order intake grew nearly 11 percent to HK$3.04 billion in the first half, while the average order value fell 8 percent to HK$465 from HK$508 last year.

It is expected that GMV on order intake in August will set a record high of up to HK$630 million, said chief financial officer Alice Wong Nga-lai.

During the period, HKTVMall had 896,000 unique customers who made purchases, up 10 percent from the previous year.

In the update of its technology business, Shoalter - its technology solution arm - signed its first overseas e-commerce solution agreement with PT Kalbe, a leading pharmaceutical company in Indonesia on August 23, which was valued at US$5 million (HK$39 million). The group said it would take a strategic minority stake in an Indonesian health and wellness e-commerce business.

HKTVMall has become a cash cow funding the future development of the group, said Alice Wong.

Chief executive officer Ricky Wong Wai-kay said the group aims to have 50 percent of its profits come from the technology business under Shoalter in 5 years.

In addition, Wong revealed that the first unmanned store designed by the group will be installed in Europe in the first half of 2022, and around ten stores to be launched by the end of next year. The move followed the group’s first filing of a patent application for its automated retail store and system.

In response to TVB’s (0511) recent acquisition of local e-commerce platform Ztore, Wong said he is confident that HKTVMall will maintain its leading role in the local market.