Core Viewpoint - Hong Kong Technology Exploration (01137) reported a challenging local retail environment but maintains a solid business foundation, with adjusted EBITDA expectations for its e-commerce business between HKD 305 million and HKD 315 million for the fiscal year ending December 31, 2025 [1] Group 1: Business Performance - The company expects stable monthly active users on HKTVmall at approximately 1.6 million [1] - The independent customer base is projected to reach a record high of 1.539 million by 2025, up from 1.519 million in 2024 [1] Group 2: Financial Outlook - The company anticipates an unaudited loss of between HKD 145 million and HKD 155 million for the fiscal year ending December 31, 2025, compared to a loss of HKD 66.7 million for the fiscal year ending December 31, 2024 [1][2] - Adjusted EBITDA is expected to be between HKD 55 million and HKD 65 million for 2025, down from HKD 121 million in 2024 [1][2] Group 3: Contributing Factors - The increase in losses is attributed to higher adjusted EBITDA losses from new exploration projects, particularly due to ongoing expansion in the street market business before achieving economies of scale [2] - The total gross merchandise value for the Hong Kong e-commerce business declined by 3.5% year-on-year [2] - Non-cash valuation losses were recorded for investment properties, reflecting current market conditions, but these adjustments do not impact the core operations or cash flow of the company [2]

Core Viewpoint - Hong Kong Technology Exploration (01137) reported a slight recovery in its electronic commerce business in October 2025, primarily driven by the October Thanksgiving Festival [1] Group 1: Business Performance - The average daily gross merchandise value (GMV) increased by 2.8% to HKD 22.2 million in October 2025, compared to HKD 21.6 million in September 2025, resulting in a monthly GMV of HKD 688 million, which represents a month-on-month growth of 6.0% but a year-on-year decline of 4.3% [1] - The number of independent customers rose to 620,000 in October 2025, up from 610,000 in September 2025 and 606,000 in October 2024, reflecting a month-on-month increase of 1.6% and a year-on-year increase of 2.3% [1] - The number of monthly active independent devices increased to 1.61 million in October 2025, compared to 1.57 million in September 2025, indicating stable growth in traffic [1] Group 2: Industry Challenges - The retail sector in Hong Kong continues to face structural challenges as 2025 comes to a close, influenced by shifts in consumer behavior, increased outbound tourism, and intensified competition from mainland China and other international e-commerce platforms [1] - These factors are expected to continue exerting pressure on the industry [1]

Group 1 - The company reported a revenue of RMB 3.104 billion for the first half of 2025, with a net profit of RMB 289 million, representing a year-on-year increase of 2.17% and a net profit margin rise from 8.55% in the first half of 2024 to 9.31% [1] - Revenue from e-commerce platforms increased by 8.88% year-on-year to RMB 595 million, with specific contributions from Tmall (RMB 129 million), Vipshop (RMB 245 million), Douyin (RMB 116 million, up 14.25%), and WeChat Video Account (RMB 55.66 million, up 136.45%) [1] - The growth in e-commerce revenue is attributed to the company's comprehensive upgrade strategy aimed at adapting to changing consumer online shopping habits and expanding its e-commerce team [1] Group 2 - In the second half of the year, the company plans to implement reform measures across various fields to enhance its capabilities as a "light luxury brand management group" and support multi-brand development [2] - The core goal for brand promotion in 2025 is to "shape a clear brand power," focusing on improving brand tone, building consumer perception, accelerating brand expansion, and driving content commercialization [2] - Strategies include enhancing brand tone through luxury imagery, unique strong categories, relaxed promotional content, and strong product pairings, with a focus on fashion shows and collaborations with well-known IPs to increase brand awareness and reputation [2]

Group 1 - The retail industry in Hong Kong requires a focus on three key elements: people, places, and products, with the "Industrial Exhibition Shopping Festival" providing a platform for local businesses to promote and sell their products, enhancing brand influence [1] - The number of visitors to Hong Kong has significantly increased, with a 30% year-on-year rise in tourist arrivals last year to nearly 45 million, and approximately 24 million visitors in the first half of this year, reflecting a 12% increase, indicating a strong recovery in the tourism sector [1] - The Hong Kong government aims to maintain its role as an international tourism hub to attract more visitors and further boost the retail sector [1] Group 2 - The "Industrial Exhibition Shopping Festival" offers a diverse range of products, enhancing the shopping experience for consumers, particularly as local brands are well-trusted and favored [2] - The government has actively encouraged businesses to develop e-commerce over the past two years to expand sales channels, exemplified by the second "Hong Kong Good Goods Festival," which also launched today, helping local businesses tap into the rich customer base of mainland e-commerce platforms [2] - Nearly 260 brands are participating in this year's event, utilizing discounts, live streaming, and various online and offline channels for promotion [2]