HK TECH VENTURE(01137)2022-09-20 08:30Financial Performance - Total gross merchandise value for the six months ended June 30, 2022, reached HKD 4,186 million, a 37.7% increase from HKD 3,040 million in the same period last year[10]. - Revenue for the period was HKD 1,922 million, a 26.6% increase from HKD 1,518 million year-on-year[12]. - The net profit for the period was HKD 127.8 million, a 33.4% increase from HKD 95.8 million last year[12]. - Adjusted EBITDA for the period was HKD 195.6 million, up 35.4% from HKD 144.4 million in the previous year[12]. - Total gross merchandise transaction value for HKTVmall in the first half of 2022 reached HKD 4.14 billion, a 36.8% increase from HKD 3.03 billion in the same period of 2021[22]. - The group achieved a net profit of HKD 127.8 million in the first half of 2022, compared to HKD 95.8 million in the same period of 2021, representing a year-on-year increase of approximately 33.4%[47]. - Revenue for the six months ended June 30, 2022, reached HKD 1,922,144,000, an increase of 26.6% compared to HKD 1,518,127,000 for the same period in 2021[81]. - The company reported a pre-tax profit of 127,849,000 HKD for the six months ended June 30, 2022, compared to 95,826,000 HKD for the same period in 2021, representing a growth of approximately 33.5%[107]. Customer Engagement - The average daily order volume increased to 49,100, up 36.0% from 36,100 in the previous year[10]. - The number of merged independent customers rose to 1,107,000, reflecting a growth of 23.5% compared to 896,000 last year[10]. - The average purchase frequency per customer in Q2 2022 was 5.05 times, compared to 4.61 times in Q4 2021, indicating increased customer engagement[18]. - The average number of main product categories purchased per customer in Q2 2022 was 2.97, up from 2.91 in Q4 2021, showing a diversification in purchasing behavior[18]. - The contribution of grocery products to total completed order transaction value in the first half of 2022 was 49.8%, continuing to drive customer traffic and repeat purchases[21]. - HKTVmall's monthly user traffic remained at approximately 1.5 million independent users, indicating stable user engagement[21]. Market Position and Strategy - HKTVmall aims to achieve a total merchandise transaction value target of HKD 8 billion for the year[4]. - The retail market in Hong Kong was valued at over HKD 350 billion in 2021, with HKTVmall's transaction value accounting for less than 2% of the market[6]. - HKTVmall plans to increase its market share to 4-5% of the Hong Kong retail market in the coming years[6]. - The company aims to assist merchants in establishing independent online stores, leveraging its customer base to enhance their e-commerce success[8]. - The company plans to continue investing in technology and logistics to strengthen its market position in Hong Kong's e-commerce sector[35]. Logistics and Infrastructure - The company is investing billions in logistics infrastructure to enhance delivery capabilities and reduce operational costs[7]. - Two third-party logistics centers are being expanded to provide warehousing and order fulfillment services, aiming to cover 85% of the best-selling products on HKTVmall[7]. - The logistics services will operate 364 days a year, with a goal of achieving same-day delivery for customers[7]. - HKTV has expanded its rapid delivery service to the less competitive wet market segment, offering over 500 products at the same prices as physical markets, with services launched in five markets[34]. - The delivery cost ratio for completed orders was recorded at 11.2% in Q1 2022, slightly increasing to 11.6% in Q2 2022, with expectations of a minor rise due to a new long-term lease for an automated delivery center starting in Q4 2022[29]. Advertising and Revenue Streams - Multimedia advertising revenue increased by HKD 16.8 million to HKD 64.8 million, representing a growth of 35.0% year-on-year, with a target of HKD 120 million for the full year of 2022[24]. - The company plans to increase advertising prices by up to 40% for popular formats in 2023, reflecting strong demand for its digital advertising services[67]. - The increase in multimedia advertising revenue was 35% year-over-year, rising to HKD 64,787,000 from HKD 48,061,000[81]. Capital Expenditures and Investments - Capital expenditures surged by 329.4% to HKD 214.1 million from HKD 49.9 million in the previous year[12]. - The company plans to invest approximately HKD 100 million in capital expenditures for a new automated logistics center, expected to be operational by the end of the first half of 2023[66]. - The company made payments of HKD 197,335,000 for the purchase of property, plant, and equipment during the reporting period, compared to HKD 79,993,000 in the same period last year, indicating a significant increase in capital expenditures[75]. Shareholder Information and Corporate Governance - The company declared an interim dividend of 8 HKD cents per share, totaling 73,729,000 HKD, slightly up from 73,306,000 HKD in the previous year[105]. - The company has complied with the corporate governance code as per the listing rules for the six months ending June 30, 2022[148]. - The audit committee, consisting of three independent non-executive directors, reviewed and discussed the unaudited interim results for the six months ending June 30, 2022[151].