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26 March 2020
HONG KONG TELEVISION
NETWORK LIMITED (SEHK: 1137)
Annual Results Presentation
for year ended
31 December 2019
Strictly Confidential
1
DisclaimerThis presentation and subsequent discussions may contain forward-looking statements and information that involve risks,
uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies,
future events or performance and underlying assumptions and other statements that are other than statements of historical fact,
including, but not limited to, those that are identified by the use of words such as "anticipates,'' "believes,'' "estimates,'' "expects,''
"intends,'' "plans,'' "predicts,'' "projects'‘, “target” and similar expressions.
The information included is solely for the use in this presentation and certain information has not been independently verified. No
representations or warranties, expressed or implied, are made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of the information or opinions presented or contained in this presentation. The performance and the
results of operations of the Group contained within this presentation are historical in nature, and past performance is no guarantee
of the future results of the Group. Any forward-looking statements and opinions contained within this presentation are based on
current plans, estimates and projections, and therefore involve risks and uncertainties. Actual results may differ materially from
expectations discussed in such forward-looking statements and opinions.
Certain information in this presentation is extracted from Google Analytics and rounded to the nearest thousand. The computation
method and basis of which have not been verified. The data could be overlapping (a) between TV Programme Platform and Online
Shopping Platform if the same user is watching our TV programmes and browsing the online shopping mall at the same time; (b)
between different type of devices among TV Programme Platform and among Online Shopping Platform if the same user using
more than one devices for watching TV programmes and/or browsing our Online Shopping Platform at the same time; (c) or the
same user using HKTVmall app to browse the HKTVmall web-page; (d) if the same user using the same device to browse the
online shopping mall through different channels/medias on the same device. The information for the same period can be changed
at different point of time when capturing the data as Google Analytics performs the analysis on sampling basis. According to
Google Analytics, the definition of “User” is “Users that have had at least one session within the selected date range, which
includes both new and returning users.” The above data are unaudited and are not indicative of the Company’s business
performance, financial condition or growth prospect. Readers should not place reliance on these data.
For figures generated from internal systems and relevant platforms, which were rounded up to nearest integral percentage or
thousand, are unaudited and for reference only.
We are not required to correct or update any such statement or information to either reflect events or circumstances that occur
after the date the statement or information is made or to account for unanticipated events or otherwise.
2
3
➢ Operational and Financial Review
By Ms. Alice Wong, CFO
➢ Business Review and Outlook By Mr. Ricky Wong, CEO and Vice Chairman
➢ Q & A
Agenda
Largest Online Ecosystem in Hong Kong –
Record High in October 2019 reaching $275.5mn on GMV on Order Intake
Jan 201779,000 orders/month
Jun 2017188,000 orders/month Dec 2017
236,000 orders/month
Jun 2018302,000 orders/month
Dec 2018378,000 orders/month
Jun 2019449,000 orders/month
Dec 2019580,000 orders/month
Feb 2020946,000 orders/month
Jan 2017HK$ 49.0 mn
Jun 2017HK$ 87.5 mn
Dec 2017HK$ 126.5 mn
Jun 2018HK$ 152.6 mn
Dec 2018HK$ 194.9 mn
Jun 2019HK$ 224.6 mn
Dec 2019HK$ 270.8 mn
Feb 2020HK$ 482.4 mn
-
100.0
200.0
300.0
400.0
500.0
600.0
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Monthly GMV on Order Intake
HK$'mn
Monthly Number of Orders Monthly Number of Orders
Monhtly GMV on Order Intake (HK$'mn)
Source: GMV and Average Daily Order – Internal platform and system
Gross Merchandise Value (“GMV”) on order intake represents the total gross sales dollar value for merchandise sold through a particular marketplace over a certain timeframe, before deduction of any discounts offered by the marketplace, rebate used, cancellation and returns of merchandise sold.
4
Largest Online Ecosystem in Hong Kong –
From Average Daily Orders of 2,500 in Jan 2017 to 18,700 in Dec 2019
Jan 20172,500 orders/day
Jun 20176,300 orders/day
Dec 20177,600 orders/day
Jun 201810,100 orders/day
Dec 201812,200 orders/day
Jun 201915,000 orders/day
Dec 201918,700 orders/day
Feb 202032,600 orders/day
Jan 2017HK$ 1.6 mn
Jun 2017HK$ 2.9 mn Dec 2017
HK$ 4.1 mnJun 2018
HK$ 5.1 mn
Dec 2018HK$ 6.3 mn Jun 2019
HK$ 7.5 mn
Dec 2019HK$ 8.7 mn
Feb 2020HK$ 16.6 mn
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Average Daily GMV on Order Intake
(HK$mn)
Average Daily Orders Average Daily Orders
Average Daily GMV on Order Intake (HK$mn)
Source: GMV and Average Daily Order – Internal platform and system
Gross Merchandise Value (“GMV”) on order intake represents the total gross sales dollar value for merchandise sold through a particular marketplace over a certain timeframe, before deduction of any discounts offered by the marketplace, rebate used, cancellation and returns of merchandise sold.
5
Product Categories Mix – Groceries maintained at around 40% contribution
6
2019 GMV on Completed Orders 2018 GMV on Completed Orders
Groceries39.7%
Beauty and Health21.6%
Digital and Electronics
15.2%
Houseware and Household
7.7%
Mother and Baby6.0%
Others9.8%
Groceries39.3%
Beauty and Health14.2%
Digital and Electronics
17.7%
Houseware and Household
8.5%
Mother and Baby4.8%
Others15.5%
7
Consolidated Income Statement – EBITDA Loss % narrowed down to 8.1%
Year ended Year ended Year ended
31 December 2019 31 December 2018 31 December 2017
HK$'000 HK$'000 HK$'000 HK$'000 %
GMV on Order Intake 2,779,070 1,891,256 1,070,359 887,814 47%
GMV on Completed Orders 2,707,816 1,834,063 1,030,892 873,753 48%
Turnover
- Ecommerce 1,403,776 883,247 485,229 520,529 59%
- Multimedia 10,183 13,127 2,028 (2,944) -22%
Total Turnover 1,413,958 896,374 487,257 517,584 58%
Cost of inventories (853,258) (538,752) (295,178) (314,506) 58%
Other operating expenses (893,285) (737,567) (568,555) (155,718) 21%
Valutaion gain 750 43,550 80,500 (42,800) -98%
Gain on disposal of a subsidiary - 161,645 -
Other income, net 54,377 46,913 94,230 7,464 16%
Finance costs (12,509) (4,921) (2,011) (7,588) 154%
Income tax credit (expense) 54 (337) (1,163) 392 -116%
Loss attributable to shareholders (289,913) (133,095) (204,920) (156,818) 118%
Interest on bank loans 5,139 4,718 1,778 421 9%
Income tax (credit) / expenses (54) 337 1,163 (391) -116%
Investment returns (33,820) (41,987) (55,022) 8,167 -19%
Gain on disposal of a subsidiary - (161,645) -
Depreciation 85,460 67,464 46,775 17,996 27%
Amortisation 14,827 24,016 15,060 (9,189) -38%
EBITDA loss (218,361) (240,192) (195,166) 21,832 -9%
EBITDA loss / GMV on completed orders (in %) -8.1% -13.1% -18.9%
Marjory non-cash items 2,359 (31,254) (70,396) 33,613 -108%
- Valuation gains on investment properties (750) (43,550) (80,500) 42,800 -98%
- Exchange loss/(gain) 4,362 2,932 (18,701) 1,430 49%
- Reversal of expected credit loss on debt securities measured at FVOCI 671 (224) - 895 -400%
- Non-cash licensing income (1,666) (10,175) - 8,509 -84%
- Equity-settled share-based transactions 120 7,189 28,805 (7,069) -98%
- Unrealised fair value (gain) loss on debt securities measured at FVPL (378) 12,573 - (12,951) -103%
Adjusted EBITDA loss (216,002) (271,447) (265,562) 55,445 -20%
Adjusted EBITDA loss / GMV on completed orders (in %) -8.0% -14.8% -25.8%
Variance
Sustainable Growth Momentum
Remark:
Gross Merchandise Value (“GMV”) on order intake represents the total gross sales dollar value for merchandise sold through a particular marketplace over a
certain timeframe, before deduction of any discounts offered by the marketplace, rebate used, cancellation and returns of merchandise sold.
1,070.4
1,891.3
2,779.1
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
GMV on order intake
HK$mn 2017 2018 2019
487.3
896.4
1,414.0
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
Turnover
HK$mn 2017 2018 2019
2019 vs 2018: Growth by 47% 2019 vs 2018: Growth by 58%
8
On Completed Orders and Adjusted Basis2019
HK$'000
2018
HK$'000
Direct merchandise sales
GMV on completed orders 1 1,129,506 715,093
Cost of Inventories (853,258) (538,752)
Gross profit 276,248 176,341
Gross margin % 24.5% 24.7%
Income from concessionaire sales and other service income
GMV on completed orders 1 1,578,310 1,118,970
Merchant payments (net off by other service income) 2 (1,276,219) (918,582)
Income from concessionaire sales and other service income 302,091 200,388
Blended commission rate 19.1% 17.9%
Total GMV on completed orders 2,707,816 1,834,063
Total gross profit and income from concessionaries sales and other service income 578,339 376,729
Blended GP/commission rate 21.4% 20.5%
Growing Revenue and Margin – maintained about 40% from Direct Merchandise Sales
9
Remarks:
1. GMV on completed orders represents the total gross sales dollar value for merchandise sold through a particular marketplace and the customer has obtained
control of the promised goods and services ordered over a certain time frame, after deduction of any discounts offered by the marketplace, cancellation and returns
of merchandise, and is before the deduction of HKTVmall Dollars and promotional coupon which is considered as advertising and marketing expenses under
management reporting purpose.
2. For Direct merchandise sales, the GMV on completed orders is before the deduction of HKTVmall Dollars of HK$4,743,000 (2018: HK$13,412,000) and use of
promotional coupon of HK$23,758,000 (2018: HK$15,792,000).
3. For Income from concessionaire sales and other service income, it is before the addition of net HKTVmall Dollars of HK$679,000 (2018: deduction of
HK$3,030,000).
10
• Fulfillment costs : Efficiency improved from 18.1% in 2018 to 15.2% as a % of GMV on completed orders in 2019, mainly from
Automated System at TY and TKO, O2O shop pick up points expansion and increase in fulfilled orders.
• Marketing and promotional costs : Remained at 6% - 8% of GMV on completed orders, mainly for new customer acquisition,
driving purchase frequency and basket size, and continued O2O shop expansion from 39 in December 2018 to 60 in December 2019.
• Ecommerce operation and supporting functions: Stable operating costs reduced to 8.5% of GMV on completed orders.
Other Operating Expenses – improved by 7.2% as a % of GMV on completed orders
As a % of GMV on 2019 As a % of GMV on 2018 Variance
Functions completed orders HK$'mn completed orders HK$'mn HK$'mn
Fulfillment cost (note 1) 15.2% 412.1 18.1% 332.5 79.6
Marketing and promotion including O2O shop (note 2) 5.6% 151.3 6.5% 119.1 32.2
Ecommerce operation and supporting functions 8.5% 229.4 10.3% 188.6 40.9
Non-cash items (note 3) 3.7% 100.5 5.3% 97.4
33.0% 893.3 40.2% 737.6 155.7
Total GMV on completed orders 2,707.8 1,834.1
Note 1: For comparison purpose, included depreciation — other properties leased for own use of HK$33.5 million upon adoption of HKFRS 16 in 2019
Note 3: For comparison purpose, excluding other properties leased for own use of HK$70.5 million upon adoption of HKFRS 16 in 2019
Note 2: Excluded HKTVmall Dollars and promotional coupon of HK$27.8 million (2018: HK$32.2 million) being deducted in turnover and, for comparison purpose, included depreciation — other properties
leased for own use of HK$37.0 million upon adoption of HKFRS 16 in 2019
11
Consolidated Statement of Financial Position – Solid Liquidity to Breakeven
1. Property, plant and equipment:
• Included self-owned properties at
TKO Headquarters of over 300,000
Sq. Ft. and investment and leasehold
properties of about 105,000 Sq. Ft.;
• Include Rights-of-use assets of
HK$270.8mn upon adoption of
HKFRS 16 during the year.
2. Strong liquidity with investment in
Other Financial Assets and cash
balance, net of bank borrowings at
HK$394.2 million.
3. Post balance sheet Top Up
Placement raised HK$453.1 million
in February 2020
Dec 2019 Dec 2018
HK$'000 HK$'000 HK$'000 in %
Property, plant and equipment 1,139,052 1,115,347 23,705 2%
Right-to-use assets 270,764 - 270,764 NA
Intangible assets 73,723 88,550 (14,827) -17%
Other financial assets (Fixed income and Equity investment)
Non-current 472,284 656,634 (184,350) -28%
Current 83,268 25,295 57,973 229%
Other receivable, deposits and prepayments 114,779 76,893 37,886 49%
Inventories 95,763 54,322 41,441 76%
Pledged bank deposits 3,905 3,905 - NA
Cash at bank, in hand and term deposits 149,713 105,901 43,812 41%
Total Assets 2,403,251 2,126,847 276,404 13%
Accounts payable 168,718 146,493 22,225 15%
Other payables and accrued charges 178,036 185,337 (7,301) -4%
Deposits received 5,757 5,757 - 0%
Bank loans 315,015 79,392 235,624 297%
Lease liabilities 282,929 - 282,929 NA
Deferred tax liabilities 1,188 1,479 (291) -20%
Total Liabilities 951,643 418,458 533,185 127%
NET ASSETS 1,451,608 1,708,389
Share capital 1,293,392 1,280,191 13,201 1%
Reserve 158,216 428,198 (269,982) -63%
TOTAL EQUITY 1,451,608 1,708,389
Variance
12
Scalable CAPEX for sustainable business growth – in the next 2 -3 years, mainly include:
a) Automation system and related structure to expand the capacity and performance efficiency of
warehousing and distribution functions. Right now, automated picking and storage system able to
accommodate for about 20,000 orders with warehouse product items
b) Expansion of logistics fleet for increase in order intake – 50+ trucks are delivered in 2019;
c) Renovation and equipment for new O2O shop opening – cherry-pick policy in 2020
Managed CAPEX for Sustainable Growth
384.7
182.1154.8
108.5
372.5
189.5
140.1 139.9
2016 2017 2018 2019
CAPEX excluded right-to-use assets upon adoptions HKFRS 16 (HK$)
Cash Outflow on CAPEX included Deposits Paid (HK$)
13
GMV on Order Intake
HK$2.78bn HK$3.38bn ~22% Growth
2019 Actual
Performance
2020 Target (as announced on
9 Jan 2020)
2020 Target vs
2019
2020 YTD GMV on Order Intake
January:
HK$338.0mn
February:
HK$482.4mn
1 – 20 March:
HK$324.6mn
Target
14
➢ Operational and Financial Review
Ms. Alice Wong, CFO
➢ Business Review and Outlook
Mr. Ricky Wong, CEO and Vice Chairman
➢ Q & A
Agenda
Methodology:
The 346 brands in YouGov BrandIndex were ranked using the Buzz score
which asks respondents, “If you've heard anything about the brand in the
last two weeks, through advertising, news or word of mouth, was it positive
or negative?” Scores are net scores, calculated by subtracting the
percentage of negative responses from the percentage of positive
responses for each brand.
The Buzz Rankings chart shows the brands with the highest average Buzz
scores between January 1st and December 31st, 2019. The Buzz
Improvers chart ranks the brands with the highest increase in Buzz
comparing scores in years 2018 and 2019, to be included in the Buzz
Improvers list, the variance must be positive. Scores are representative of
the general population.
All Buzz scores listed have been rounded to a single decimal place;
however, we have used additional precision to assign ranks.
All brands must be tracked for at least 6 months to be included in the
rankings, and must have been tracked for at least 6 months in the prior
year’s period (as well as being currently tracked) to appear in the movers
tables.
No. 1 of the Top Buzz Rankings in Hong Kong
Source: YouGov Brandindexhttps://www.brandindex.com/ranking/hong-kong/2019-buzz
15
Strong Growth Momentum on Daily Average Users
16Source: Google Analytics
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20
17
Offline Patrons
Online Active
Visitors
Online Customers
Stickiness and
Frequency
Basket Size
Online Shopping Mall with 2.75mn Unique Devices visited in Feb 2020
Source and Basis: Data on Unique Device is extracted from our internal system and rounded to the nearest thousand. The data is collected based on the
tracking cookies for web browser and the device advertising ID for app, which could be overlapping if (a) same device is used to browse the online
shopping web-page through different browsers; (b) same device is used to open online shopping app and to browse online shopping web-page; and (c)
the user amends the advertising ID of its device. These data are unaudited and are not indicative of the Company’s business performance, financial
condition or growth prospect. Readers should not place reliance on these data.
Monthly No. of Unique Devices Landing on PDP or Performing Search
Dec-171.10mn
Jun-181.44mn
Dec-181.51mn
Jun-191.56mn Dec-19
1.67mn
Feb-202.75mn
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Ju
l-17
Au
g-1
7
Se
p-1
7
Oct-
17
No
v-1
7
De
c-1
7
Ja
n-1
8
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Ju
n-1
8
Ju
l-18
Au
g-1
8
Se
p-1
8
Oct-
18
No
v-1
8
De
c-1
8
Ja
n-1
9
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Ju
n-1
9
Ju
l-19
Au
g-1
9
Se
p-1
9
Oct-
19
No
v-1
9
De
c-1
9
Ja
n-2
0
Fe
b-2
0
> 10% of Hong Kong People (Age 18+) Had Purchased From Us, Once Go Online, Won’t Offline!
18Source: Internal System
Combined Unique Customers(rounded to the nearest thousand)
78,000 149,000 427,000 566,000
94,000 163,000 477,000 680,000 823,0002015 2016 2017 2018 2019
1H 2016 1H 2017 1H 2018 1H 2019
Buy More Categories More Frequently - Grow together with our Merchant Partners
19Source: HKTVmall Internal System
Average Purchase Frequency per
Customer: Average Purchase Categories per
Customer:
Q1 2016:
2.16 x
Q4 2019:
3.76 x Q1 2016:
1.93
Q4 2019:
2.57
Full Service Marketplace
HKTVmall
carrying > 320,000 product items
400,000 Sq. Ft. Warehouses
Germany imported Automated System with combined capacity of
20,000 daily warehouse orders
Largest HK Residential Distribution Network
~ up to 350 Trucks in operation daily
~64 O2O Shops
3 CORE PILLARS for our NEW RETAILING MODEL
20
Repeat Purchase
Catalyst
Supermarket Personal
Care and
Health
Fashion HousewaresMother &
Baby
Sports and
Travel
Dining and
Lifestyle
Pets Electrical
Appliances
Toys
and
Books
Skincare &
Make up
Insurance
21
Disney LEGO® Flagship
Store
We are a “Landlord”, Not a Retailer!
> 3,200 Merchant/Supplier partners > 320,000 SKUs
Kwai Chung
Frozen/Chilled Food Factory
Tsing Yi
eFulfillment Center
400,000 Sq. Ft. Fulfillment Centers for Different Business Model and Product Types by Automation
22
New Tuen Mun
Distribution Centre
Tseung Kwan O HQ
eFulfillment Center
Technology Deployed for Scalability, Cost Efficiency and Accuracy
SSI AGV Sorter
Offic
ially
Lau
nch
ed
in F
eb
2020
,
13,0
00 p
arc
els
per h
ou
r
23
Tailor-Made Multi-Compartment Trucks
-18°C compartment for frozen food
0-4°C compartment for chilled food
Room temperature
compartment for general
merchandise
Together with outsourced capacity, daily has 250+ delivery trucks in operation,
starting from Feb 2020, ramping up to as high as 350 delivery trucks daily to
strengthen the distribution capacity!
Owned delivery truck design
24
Dec
2017
Dec
2018
Dec
2019
: 1
:15
:39
:60
Expansion of Offline Pick-Up Points to 115 Points
25
Dec
2016
HKTVmall O2O ShopsWin-Win Outsourced Pick-up
Partners/Mobile Pick-up Trucks
Now:Outsourced Pick-up points: 32
Mobile Pick-up trucks: 19Now :64
Expanding Spread towards Breakeven – Right Track towards 13.5% Target
26
-40.2%
-26.3%
-19.3%
-12.9%
-6.1%
-1.1% -0.9%
0.9% 0.4% 2.0% 3.3% 3.6% 4.6% 5.7% 4.8%8.2%
58.7%
49.3%
41.3%
34.8% 28.2%
22.6% 21.9%
19.3% 20.0%17.8% 17.2% 18.0% 16.7% 15.4% 15.9%
13.9%
18.5%
23.0% 22.0% 21.9%
22.1% 21.5% 21.0%
20.2% 20.4% 19.8% 20.5% 21.6% 21.3% 21.1% 20.7% 22.1%
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Spread = (B) - (A)
Quarterly Fulfillment Costs as a % of GMV on complete order (A)
Quarterly Blended Gross Margin / Commission Rate (B)
Cross Categories Selling with Expanding Margin
27
Groceries is the Repeat Catalyst!
Basis: GMV on Completed Order
26.7% 25.4%23.7% 23.7% 24.6% 25.7% 26.5% 27.0% 26.1%
23.8%27.1%
28.6%35.9%
33.9%36.5% 36.8%
42.0% 40.9%
35.9%37.4%
42.0% 42.4%
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q32019 Q42019
Groceries
7.2%9.2%
14.3%15.5%
16.9%
10.8%
14.2%
20.8%21.8% 21.7%22.0%21.3%
20.0% 19.1% 19.6% 19.3% 19.3%20.4%
19.1% 19.0%17.7%18.4%
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q32019 Q42019
Beauty and Health
10.1%11.8%
13.8%
16.3%17.9%
20.0%
16.6% 17.0%17.2%
13.9%13.2%14.4% 13.7%
13.1%12.1% 11.7% 10.0%
13.0%12.3% 12.2% 12.5% 12.7%
Q2 2017Q3 2017Q4 2017 Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019 Q32019 Q42019
Digital & Electronics
4.3%5.6%
7.0%
9.4%
8.0% 8.3% 8.5% 8.5% 8.1% 7.2% 7.1%
24.8%22.8%
21.9%
24.5%
20.6%22.3% 23.1% 23.6% 23.4% 23.5%
21.9%
Q2 2017Q3 2017Q4 2017 Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019 Q32019 Q42019
Houseware and Household
46.2%
34.2%
27.0%
18.3%
15.7%14.0% 14.4%
12.0%9.6% 8.9% 9.4%
20.5% 18.9% 19.4%
18.0%
18.5%21.0% 19.9% 20.8% 22.3% 24.0% 22.0%
Q2 2017Q3 2017Q4 2017 Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019 Q32019 Q42019
Others
13.9%
17.9%
15.8%
17.6%
14.1%13.4%
15.8%17.0%
15.2%16.5%
18.1%
3.6% 3.3% 4.0% 4.0% 4.7%
4.9% 5.4% 5.8% 5.9% 6.3% 5.9%
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q32019 Q42019
Mother and Baby
GMV per Warehouse SKU Line – > 50% growth vs Q1 2016
28
Remark:
GMV: GMV on Order Intake excluding cancel orders;
Warehouse SKU Line: Include own inventory and consignment SKU
Warehouse Pick/Pack
Costs
GMV per Order
HK$54.7
HK$63.1 HK$60.8
HK$73.7
HK$83.4
40
50
60
70
80
90
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016 2017 2018 2019
HK$ GMV per warehouse SKU Line
Expansion on Digital Advertising - A total solution to
our Merchants and Suppliers.
First launched in January 2018, after running for 2 years,
a growth of 266%.
➢ > 700 Advertiser Accounts in 2019
➢ Multiple increments on Ad Spend – Good start for
Data Monetization!
29
Cooperation with Suppliers and Merchant Stores – Building a Digital Eco-System
Partner since January 2018
New Collaborative Advertising
Scheme since January 2019
2018
HK$5.8mn
2019
HK$21.2mn
30
Strengthen the Leading Position as the #1 Online Landlord in Hong Kong
Be a more “Comparable” MarketplaceEnlarge the proportion of business transactions to
“Merchant Product Sales”
Fair and Transparent Online Shopping Mall
Standardized Commission Scheme and Merchant annual
fee for in-mall and digital advertising and analytics
“Change” Window for Offline
May “Thankful Festival O2O” Partnership Trial Program
Accelerate the Delivery Lead time to Customers
“363 days” merchant operations
31
Fair and Transparent Online Shopping Mall
Standardised Categorical Commission Scheme, Unified Delivery Method, Annual fee with in-mall
and digital advertising value
32
Data Monetization
Splash Ad Image Slider
A/BCategory
Banner
Main Page
Sponsor Box
‘You may also
like’- First
Product
eDMApp Notification
Merchants direct control on marketing campaigns at HKTVmall thru ad booking system
Image Format Product Listing Format On-target Format
33
May 2020 “Thankful Festival” O2O Trial Program – a step forward for eCommerce Conversion
An invitation to all branded shops at Tier One Shopping Mall to join HKTVmall “Thankful Festival” in
May 2020 at just 6.5% Commission Rate – we open a “window” for “Change” !
E-store Operation Marketing
34
“363 days” Merchant Operating Model
We hope, by end of 2020, everyone will be a genuine online shopping portal – 24 x 363 operation!
Step 1:
Encourage Merchants to operate any 6 days in the two
4-day consecutive public holiday in April and May 2020,
in return, HKTVmall will offer:
1. Merchant: a 3% rebate for packed orders delivered
to HKTVmall logistics centre daily in the 6-day
period, with a cap of HK$800 per day.
2. Customer: HKTVmall-made masks as free gift for
those who shop at Merchants under this
partnership arrangement!
35
To Conclude, on HKTVmall …..
Philosophy
• We built HKTVmall ridding on “Infrastructure” and being “Open-minded”, not on “Sales and Marketing”
High Barrier
• We invested 5-year to build high barriers for others to catch up
Investment
• We will continue to invest in various operations and to strengthen our dominant position in the Hong Kong Online Ecosystem.
Appendix
36
Remarks:
1. The sites in the top sites lists are ordered by their 3-
month Alexa traffic rank.
2. The sites in the top sites lists are ordered by their 3-
month Alexa traffic rank. A site’s ranking is based on a
combined measure of Unique Visitors and Pageviews.
The site with the highest combination of unique visitors
and page views is ranked #1. The site’s metrics are
estimated and based on traffic patterns across the web
as a whole and using data normalization to correct for
any biases that may occur in the data.
Source : https://www.alexa.com/topsites/countries;0/HK
No. 1 Hong Kong Based Online Shopping Platform
37
Top Sites in Hong Kong - as at 23 March 2019
Ranking in Hong Kong Sites
1 www.google.com
2 www.youtube.com
3 www.facebook.com
4 Yahooi.com
5 Amazon.com
6 Google.com.hk
7 Baidu.com
15 Taobao.com
16 Tmall.com
17 price.com.hk
47 www.hktvmall.com93 Carousell.com
195 www.ztore.com
269 www.fortress.com.hk
292 www.parknshop.com
422 www.watsons.com.hk
441 Zalora.com.hk
496 Strawberrynet.com
649 www.wellcome.com.hk
734 www.bigbigshop.com
754 www.broadwaylifestyle.com
783 pricerite.com.hk
966 www.sasa.com
976 uniqlo.com.hk
1779 mannings.com.hk
2211 hkele.com.hk
3711 https://www.yata.hk
3777 aeonstores.com.hk
4083 aeoncity.com.hk
4428 marketplacebyjasons.com
Glad to see the acceleration of
O2O conversion in Hong Kong
Accelerated O2O Conversion Across Different Age
38
Age RangeDistribution of Overall
Customer Base
18 - 24 9%
25 - 34 36%
35- 44 35%
45 -54 13%
55 or above 7%
Source: Google Analytics 360
Healthy conversion on HKTVmall, interested to know more about our customer profile,
please visit https://cloud.marketing.hktvmall.com/merchantrecruitment
Partnership ModelInventory
OwnershipWarehousing Last Mile Delivery Pricing
Buy (from Suppliers)
& Sell HKTVmall
HKTVmall's
WarehouseHKTVmall Logistic Team HKTVmall
Retailers
Operate their own storesRetailers
Retailers'
Warehouse
Products shipped to HKTVmall &
HKTVmall Logistic Team delivers
to customers
Retailers
Retailers
Operate their own stores
(Consignment)
RetailersHKTVmall's
WarehouseHKTVmall Logistic Team Retailers
Retailers
Operate their own stores
(Merchant Delivery)
RetailersRetailers'
Warehouse
Merchants deliver
to customers directlyRetailers
Overseas Retailers
Operate their own storesRetailers
Retailers'
Warehouse
Products shipped to HKTVmall &
HKTVmall Logistic Team delivers
to customers
Retailers
Flexibility to Meet Suppliers’ & Retailers’ Requirements
39
Quality Assurance by End-to-End Total Control
eCommerce
Platform
Multimedia Production
e.g. Photo and video production for product
promotion
Order
processing
system
Merchant
Management
System
Payment
Gateway
eFulfillment Centre
e.g. warehousing,
pick/pack functions
Multi-Temperature
Controlled Trucks
operated by self-
run Logistics
Team
50 O2O
Concept
Stores
Customer Services
- AI Platform
Chatbot
- CRM
- Machine
Learning
- Big Data Analysis- Predictive
Intelligence
40
Thank You
41