How Does Hong Kong Technology Venture Company Work?

HKTVmall is the primary value driver, acting as a one-stop shop for diverse consumer needs. In 2024, groceries represented 42.5% of the Gross Merchandise Volume (GMV) on completed orders, highlighting its importance. Beauty and health products followed at 25.2%, with digital and electronics at 10.2%.

The company employs a hybrid model, balancing Direct Merchandise Sales (1P) and Merchant Concessionaire Sales (3P). In 2024, 3P sales constituted 71.3% of total GMV, while 1P sales made up 28.7%. The pets product category demonstrated significant year-on-year growth of 26.2% in 2024, reaching HK$770.0 million in GMV.

Integral to its e-commerce operations, the company provides its own logistics and fulfillment services. Fulfillment costs as a percentage of GMV on completed orders saw an increase to 12.3% in 2024, up from 11.4% in 2023.

Beyond retail, the company produces multimedia content, including television programs, which are distributed through its online platform. This integration of content with commerce aims to boost customer engagement and drive traffic to HKTVmall.

The company celebrated the 10th anniversary of HKTVmall in 2024, proposing a special dividend of 38 HK cents per share. This milestone underscores a decade of significant growth and operational presence in the online retail space.

A crucial strategic move in 2021 was the implementation of a competitive commission scheme, which significantly boosted product category growth. The company also continues to adopt a hybrid business model, combining Direct Merchandise Sales and Merchant Concessionaire Sales.

The Group faced operational and market challenges, including economic shifts and changing consumer behavior, leading to a net loss of HK$66.7 million in 2024. This was partly due to operating losses from new ventures and impairment losses on its UK automated retail store.

To bolster its market position, the company plans to recruit mainland talent for technology and market insights. This initiative aims to enhance HKTVmall's competitiveness and expand its market reach, building on its established brand strength.

As of 2024, HKTVmall secured a significant 9.2% traffic share in the Hong Kong e-commerce market, positioning it among the leading online platforms. This places it behind Taobao (20.9%), Amazon (11%), and Price (9.8%). Despite economic headwinds, HKTVN's e-commerce segment, including its grocery delivery services, demonstrated resilience, achieving HK$8,589.8 million in Gross Merchandise Value (GMV) on Order Intake in 2024, a 2.0% increase year-on-year. The company also reported an adjusted EBITDA of HK$121.0 million for the same period.

HKTVN faces several challenges, including a subdued local economy impacting retail spending and evolving consumer habits due to increased outbound travel. Intense competition within the e-commerce sector and the need to adapt to rapid technological advancements are ongoing concerns. Furthermore, cybersecurity threats, such as phishing and supply chain vulnerabilities, pose significant risks to Hong Kong enterprises in 2025.

Looking forward, HKTVN is focused on strengthening its GMV performance, leveraging fresh produce and groceries as key drivers for customer traffic. The company is also re-evaluating its UK expansion plans, with a reassessment scheduled by the end of 2025, while continuing its investment in system design and operational efficiency. Expanding mainland merchant participation and refining pricing strategies are also integral to its growth strategy.

The Hong Kong e-commerce market is poised for steady growth, with projected revenues of US$5.34 billion in 2025. An anticipated compound annual growth rate (CAGR) of 7.87% between 2025 and 2029 suggests a favorable environment for companies like HKTVN to pursue sustained expansion and capitalize on emerging opportunities.