HKTVMall Parent Issues Profit Warning on Wider Mid-Year Losses
HK01 · 1 SOURCESabout 2 hours ago1 MIN
Summary
Hong Kong Technology Exploration (stock code: 1137), the holding company behind popular online marketplace HKTVMall, has released a profit warning indicating its interim losses will widen substantially. The company forecasts first-half losses ranging from HK$73 million to HK$83 million, compared with a loss of HK$23.2 million in the same period last year .
Key Points
- HKTVMall parent company expects H1 2024 losses of HK$73 million to HK$83 million, versus HK$23.2 million loss in H1 2023
- Adjusted EBITDA loss reaches up to HK$11 million during the first half of the year
- Loss expansion driven by increased marketing spend on promotions including 85% discount campaigns and personalized pricing
- Hong Kong e-commerce order GMV grew 5.8% year-on-year to HK$4.2 billion, boosting gross profit contribution
- Unique customer base expanded 10.2% year-on-year to approximately 1,316,000 customers
Why It Matters
The widening losses despite revenue growth highlight the aggressive cost structure HKTVMall is maintaining to defend its market position against competitors, with the company betting that customer acquisition and retention will deliver long-term returns even at the cost of short-term profitability .
The widening losses despite revenue growth highlight the aggressive cost structure HKTVMall is maintaining to defend its market position against competitors, with the company betting that customer acquisition and retention will deliver long-term returns even at the cost of short-term profitability .