Hong Kong Technology Venture Company Limited Issues Profit Warning for FY2025

Hong Kong Technology Venture Company Limited (“HKTV” or “the Company”, together with its subsidiaries, “the Group”) has issued a profit warning for the financial year ended 31 December 2025 (FY2025). This announcement, made pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and relevant provisions of the Securities and Futures Ordinance, contains important updates and forward-looking statements that are highly material to shareholders and potential investors.

Key Highlights from the Announcement

• Expected Loss for FY2025:
  • The Group expects to record an unaudited net loss ranging from HK\$145.0 million to HK\$155.0 million for FY2025, a significant increase from the loss of HK\$66.7 million reported in FY2024.
• Decrease in Adjusted EBITDA:
  • Unaudited adjusted EBITDA for FY2025 is projected to be between HK\$55.0 million to HK\$65.0 million, down from HK\$121.0 million in FY2024.
• Hong Kong Ecommerce Business Performance:
  • Adjusted EBITDA from the Hong Kong Ecommerce Business is estimated to be in the range of HK\$305.0 million to HK\$315.0 million, compared to HK\$329.2 million in the previous year.
  • Stable platform usage with Monthly Active Unique Devices remaining at approximately 1.6 million.
  • Record high annual customer base, with unique customers reaching 1,539,000 in 2025, up from 1,519,000 in 2024.

Factors Driving the Financial Deterioration

• Losses in New Ventures:
  • Increased adjusted EBITDA losses from New Venture projects, especially Wet Market Express, as the business expanded volume but had not yet reached critical mass. These investments are considered necessary for the Group’s long-term growth and innovation strategy.
• Decline in Gross Merchandise Value (GMV):
  • GMV on Order Intake for the Hong Kong Ecommerce Business decreased by 3.5% year-on-year, reflecting challenges in the local retail environment.
• Non-Cash Valuation Losses:
  • The Group incurred non-cash valuation losses on investment properties, based on independent valuations and current market conditions. These do not affect cash flows or core operations, but impact reported profitability.

Market and Operating Context

The year under review was marked by a challenging local retail environment, with only moderate recovery in the retail landscape. Evolving cross-border consumption patterns among residents and increased outbound travel by Hong Kong residents also impacted the Group’s performance. Despite these challenges, HKTV maintained a solid operational foundation, evident in stable user traffic and a growing customer base.

Implications for Shareholders and Investors

• Price Sensitive Disclosure: The significant increase in forecast losses, decline in adjusted EBITDA, and decrease in GMV are all material events that are likely to affect the Company’s share value.
• Investments for Growth: The Company continues to invest in new business initiatives, which, while resulting in short-term losses, are aimed at supporting long-term strategic growth.
• Non-Recurring, Non-Cash Adjustments: Valuation losses on investment properties are non-cash items and do not impact the Group’s underlying business or liquidity position.
• Caution to Investors: The announcement is based on unaudited management accounts and is subject to further adjustments. Final audited results may differ from the estimates disclosed.

Next Steps

The Company is in the process of finalizing its audited consolidated annual results for FY2025. The final results and further details will be disclosed in the annual results announcement and annual report, in compliance with listing requirements.

Board of Directors

As of the date of this announcement, the Board comprises:

• Executive Directors: Mr. Cheung Chi Kin, Paul; Mr. Wong Wai Kay, Ricky (Vice Chairman & Group CEO); Ms. Wong Nga Lai, Alice (Group CFO & Company Secretary); Mr. Lau Chi Kong (CEO, International Business); Ms. Zhou Huijing (CEO, Hong Kong)
• Independent Non-executive Directors: Mr. Mak Wing Sum, Alvin (Chairman); Mr. Peh Jefferson Tun Lu; Mr. Ann Yu Chiu, Andy; Mr. Yeung Chu Kwong

Definitions

• Adjusted EBITDA: Defined as profit/(loss) for the year plus interest on bank loans, income tax expense/(credit), depreciation (excluding depreciation on leased properties for own use), amortization of contract costs and intangible assets, deducting investment returns, and adjusted by major non-cash and non-recurring items. Not a HKFRS measure and not directly comparable to similarly titled measures of other companies.
• Gross Merchandise Value (GMV): Total gross sales dollar value for merchandise sold through the marketplace, before deductions for discounts, rebates, cancellations, and returns.

Disclaimer: This article is a summary and interpretation of the Company’s official profit warning announcement. Investors are strongly advised to review the official disclosure and exercise caution in dealing with the Company’s securities. The final audited results may differ from those disclosed in this preliminary announcement. The article does not constitute investment advice.

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