HKTV in the red but unafraid of mainland rivals

Staff reporter

Hong Kong Technology Venture (1137) swung to a net loss of HK$66.7 million in 2024 from a net profit of HK$45.3 million a year earlier, but proposed a special dividend of 38 HK cents per share to celebrate the 10th anniversary of HKTVmall.

The loss was mainly due to operating losses from its new ventures and technology business, impairment losses on its UK fully automated retail store and system, and valuation losses on investment properties, the parent of the online retailer said in an exchange filing.

Turnover rose 0.7 percent from the previous year to HK$3.84 billion in 2024.

The company said it faces three major challenges: lagging behind global technological trends, market structure constraints and rising competition, and the weakening influence of local culture.

"The city's retail sector is highly competitive, but HKTVmall has grown up in this environment and thrives on competition," vice chairman Ricky Wong Wai-kay said.

Wong said the company plans to bring in more mainland merchants and align their prices with China's three major e-commerce platforms to drive long-term growth and ensure its survival.

Regarding JD.com's (9618) entry into the market, Wong said HKTV is not worried about competition from mainland rivals, as their target customers are different.

JD.com is introducing a "price difference refund" policy for all JD self-operated products, if customers find lower prices elsewhere.

However, Wong said this unlikely to gain traction in Hong Kong as consumers don't have the time to chase after price differences.

Wong said HKTVmall will remove the minimum spending requirement for customer pick-ups at retail points starting in April and significantly expand third-party pick-up locations within the year.