Hong Kong TV rebounds to $183.6m profit after 2019 loss

The company posted a net loss of $289.9m in 2019 but bounced back during the pandemic.

Hong Kong Technology Venture Company Limited, formerly known as Hong Kong Television Network Limited, posted a profit worth $183.6m in 2020, following a net loss of $289.9m in the previous year.

The group’s turnover climbed 103.5% to $2.87b in 2020 against $1.4b in 2019, largely due to its direct merchandise sales that grew 79% to $1.970b.

Its concessionaire sales and other income rose to $883.8m from $302b in the previous year, whilst its multimedia advertising income and licensing of programme rights increased to $23.8m from $10.2m.

Through its HKTV mall, the company achieved a $5.95b gross merchandise value (GMV) on order intake, reflecting a 114.2%year-on-year increase and outperforming its revised target of $5.75b.

“The Group will adjust the development direction of HKTVmall in accordance with the social economic situation,” Paul Cheung Chi Kin said in a statement.

“If economic situation remains weak, HKTVmall will be more focusing on daily necessities such as supermarket products and groceries; otherwise, the development of HKTVmall will be more diversified in order to grasp the opportunities brought by economic recovery.”

For 2021, the Group set its target GMV at $6.6b to $7b, which is a yoy growth of 11-17.6%.

“The performance up to February 2021 was in line with our business plan and we project the GMV on order intake for March 2021 will be around HK$520.0 million,” the company noted.

It also aimed to generate a multimedia advertising income worth $70m this year.

In the same announcement, the Group moved to change its name to Hong Kong Technology Venture as a way to more accurately reflect the principal activities of the company.

The group noted the name change is still subject to the approval of the shareholders and the Companies Registry.