HK TECH VENTURE (01137) Issues Profit Warning, Forecasts Annual Loss Between HK$145 Million and HK$155 Million

Stock News03-16

HK TECH VENTURE (01137) has announced that, despite the persistently challenging local retail environment during the fiscal year—characterized by a relatively moderate pace of retail market recovery, ongoing shifts in cross-border consumption patterns among residents, and a significant increase in outbound travel by Hong Kong citizens—the group maintained a solid operational foundation. Key highlights include: the unaudited adjusted EBITDA for its Hong Kong e-commerce business is projected to be between HK$305 million and HK$315 million (2024: HK$329 million); HKTVmall maintained stable traffic, with monthly active unique devices consistently around 1.6 million; and the annual customer base for 2025 reached a record high, with unique customers numbering 1.539 million (2024: 1.519 million).

Nevertheless, based on a preliminary review of the group's unaudited consolidated management accounts and currently available information for the year ended December 31, 2025, the group expects to report an unaudited net loss in the range of HK$145 million to HK$155 million for the 2025 fiscal year. The unaudited adjusted EBITDA is anticipated to be between HK$55 million and HK$65 million. This compares to a loss of HK$66.7 million and an adjusted EBITDA of HK$121 million for the year ended December 31, 2024.

The increase in the unaudited net loss and the decline in unaudited adjusted EBITDA for the 2025 fiscal year are primarily attributable to the following key factors: an increase in the adjusted EBITDA loss from new venture projects, mainly due to the ongoing expansion phase of the 'Market Place Now' fresh food delivery business in 2025 before achieving economies of scale. These losses represent necessary investments supporting the group's long-term growth strategy and the development of innovative products and services; a year-on-year decrease of 3.5% in the Gross Merchandise Value of orders for the Hong Kong e-commerce business; and a non-cash valuation loss on investment properties, based on a valuation conducted by an independent appraiser reflecting current market conditions. This non-cash adjustment does not impact the group's core business operations or cash flow.

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