Hong Kong Technology Venture Company Limited · HKEX:1137
Hong Kong Technology Venture — Hong Kong Television Network — Investor Presentation (January 2018)
43 slides from Hong Kong Technology Venture's investor presentation, January 2018
Slide 1: Hong Kong Television Network Limited
HONG KONG TELEVISION NETWORK LIMITED 香港電視網絡 香港電視網絡有限公司 (SEHK stock code: 1137) January 2018
Slide 2: Disclaimer
Disclaimer This 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 underlyi
Slide 3: About HKTV – 25 Years Proven Track Record
About HKTV – 25 Years Proven Track Record to Turn Impossible to Reality • Co-founded by cousins Ricky & Paul with 10 Talents and start-up capital of less than US$300,000 • 1st company to shatter the international Direct Dial (IDD) monopoly in Hong Kong 1992 • Listed in Hong Kong Stock Exchange Main
Slide 4: Senior Management Team
Senior Management Team Background Started from Management Co-founder Co-founder Started with the Group Started from Management Trainee in 2003 and since 2003 and progressed Trainee in 2004 and Responsible for the Group’s Responsible for the Group’s progressed to Managing to CFO in 2012 progressed to
Slide 5: 25-year Reputable History with High Brand Presence in Hong Kong
25-year Reputable History with High Brand Presence in Hong Kong 25-year history embraces reverse thinking with “Pioneer” DNA “David vs Goliath” - Crushed the IDD monopoly market in Hong Kong by introducing “call back” technology back in 1992, with an initial capital of US$300,000 “Invested” 7-year t
Slide 6: Now – Riding on High Brand Presence
Now – Ridding on High Brand Presence • We are building the third Legend on Shoppertainment! • On 2 Feb 2015, we formally launched , an online shopping mall including a OTT platform offering real time and VOD drama and infotainment programs. • On 3 March 2017, we completed the acquisition of Groupon
Slide 7: Access to Our Platforms
Access to Our Platforms • www.hktvmall.com • www.hokobuy.com • HKTVmall App • HoKoBuy App 7
Slide 8: Our Positioning – Online Shopping Mall for Experience
Our Positioning – A Online Shopping Mall in the Region for EXPERIENCE CONVENIENCE High in one single CREDITABILITY order COMPETITIVE PRODUCT PRICING at VARIETY LOWER >174,000 RUNNING product items COSTS 8
Slide 9: HKTVmall and HoKoBuy - One-Stop Shopping Experience
HKTVmall and HoKoBuy - A One-Stop Shopping Experience with Wide Spectrum of Products As at 3 January 2018 On Combined basis: > 174,000 product items From own FMCG inventory to Merchant offered varieties Beauty & Music, Supermarket Fashion Household Health Video & Books Mother & Digital & Toys, Games
Slide 10: Supermarket Products for Frequency of Orderings
Supermarket Products for Frequency of Orderings • About 32,000 product items to fulfill day-to-day food and grocery needs • An effective way to maintain recurring orders and to bring consistent upward traffic to merchant partners 10
Slide 11: Our Partners… More than 2,700 stores
Our Partners… HKTVmall and HoKoBuy have more than 2,700 stores on combined basis 11
Slide 12: Hong Kong does not need Online Shopping?
Hong Kong does not need Online Shopping? Shopping malls and Convenience stores are everywhere The delivery cost is expensive However, • Does “Shopping malls everywhere” mean consumer can find whatever they want to buy in those shopping malls? • Does the consumer get sufficient product information to
Slide 13: Why Online Shopping? HK$440 billion retail market
Why “Online Shopping” business? – Hong Kong’s Retail market is a HK$440 billion business, but we lag behind the world trend in Digitalization and there is no precedent in “Online Shopping Mall”. 13
Slide 14: How we did in the past 3 years' time?
How we did in the past 3 years’ time? 14
Slide 15: Are We the Largest Hong Kong Based Online Shopping Mall?
Are We the Largest Hong Kong Based Online Shopping Mall? Top Sites in Hong Kong - as at 10 Jan 2018 Ranking in Hong Kong Sites 1 www.google.com.hk 2 www.youtube.com 3 www.google.com 4 www.facebook.com 5 www.yahoo.com 9 www.taobao.com 17 www.amazon.com 18 www.price.com.hk 19 www.tmall.com 70 www.JD.c
Slide 16: An Unbeatable Platform, as at December 2017
+ An Unbeatable Platform, as at 31 December 2017 (unless specified) 4,280,000 registered email 3,571,000 Apps download (source: 1) subscriptions (source: 1) 896,000 Facebook likes (source: 1) 3,051,000 combined unique Users in December 2017 (source: 2) Source: 1. Internal systems and relevant platfo
Slide 17: Delivered combined 477,000 customers to merchants
X • Delivered combined 477,000 loyal, high spending & digital new generation customers to merchants HKTVmall Groupon HK/ HoKoBuy High synergy 287,000 and 232,000 collaboration The above figures represent number of unique customers for 12-month ended 31 December 2017 Source: Internal systems and rele
Slide 18: Growing Traffic, increasing stickiness!
Growing Traffic, increasing stickiness! • Wide range of grocery products brings frequency of orderings and increases the landing rate to merchant partners’ store pages – HKTVmall has about 52.2% customers with repeated purchases >/= 2 orders during the 90-day period ended 31 December 2017 (source: I
Slide 19: From Grocery Shopping to High Value Multiple Purchases
From Grocery Shopping to High Value Multiple Purchases….. Beauty & Health Supermarket Hot Deals 33% 21% Household Digital and Others Electronics 16% 30% Digital and Electronics As a % of December 2017 Total Gross Merchandise Value (“GMV”) which represents the total gross sales dollar value for merch
Slide 20: Growth Momentum – HK$1.5 billion GMV Online Marketplace
Growth Momentum – Annualized Dec 2017 performance, this is a growing HK$1.5 billion GMV Online Marketplace……. Avg. order value Avg. order value ($) Avg. daily order Avg. daily order HK$700 8,000 ~ 7,600 orders HK$600 7,000 ~ HK$537/order 6,000 HK$500 5,000 HK$400 4,000 HK$300 3,000 ~ 1,300 HK$200 or
Slide 21: Consolidated Income Statement
Consolidated Income Statement 6 months ended 12 months ended 12 months ended 30 June 2017 31 Dec 2016 31 Dec 2015 HK$'000 HK$'000 HK$'000 Turnover - Ecommerce 203,905 185,826 36,404 - Media - 1,245 76,406 Cost of inventories (124,556) (140,289) (23,113) Programme costs (320,740) Valuation gains / (l
Slide 22: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position June 2017 Dec 2016 HK$'000 HK$'000 Property, plant and equipment 1,030,904 917,048 Intangible assets (IRU on Telecom Capacity and Telecom Services) 109,269 112,248 Other financial assets (Fixed income and Equity investment) Non-current 724,580 828,019 Cur
Slide 23: We deliver a delightful shopping experience
We deliver a delightful shopping EXPERIENCE to keep recurring business and business referrals! 23
Slide 24: Online Shopping is NOT a Website for Display Shelves, it's Experience
Online Shopping is NOT a Website for Display Shelves, it’s EXPERIENCE eCommerce Platform - CRM Multimedia Production - Machine Learning e.g. Photo and video - Big Data Analysis production for product promotion Customer Services Order processing system 3-Tempature Controlled Trucks Independent operat
Slide 25: E-Commerce Fulfillment Center
E-Commerce Fulfillment Center – We deliver EXPERIENCE, not Products • ~ 400 logistics and warehouse professionals • ~ 160 + Car Fleet including 3-temperature Cool • The first “touch” point to our customers, hence Trucks in operation; for better control the last mile delivery with • Expansion plan to
Slide 26: Our Reversed O2O Model – a new way of Retailing
Our reversed O2O Model – a new way of RETAILING Awareness & Showroom Sales Service Point Engagement Arouse Public Order Attention Pick-up Display and show Point product diversity Handle Order Build Trust & enquiries Relationship Sales Centre Customer Education
Slide 27: Our Reversed O2O Model – South Horizons Store
Our reversed O2O Model – a new way of RETAILING Example: South Horizons Store • This offline-online interactivity is a new way of retailing, adding value to our customers via an average 400-500 sq. ft. store compared to a 20,000 sq. ft. retail store 1. Brand Presence and Established Foothold in sele
Slide 28: Our Reversed O2O Model – 15 stores
Our reversed O2O Model – a new way of RETAILING Together with HoKoBuy Concept Store at Causeway Bay, we now have a total of 15 stores! 20 Oct 2016: Wharf Road, North Point 25 Sept 2017: Chi Lok Fu Yuen, Tuen Mun 25 Jan 2017: South Horizons, Ap Lei Chau 30 Sept 2017: Fortune City On Plus, Shatin 20 A
Slide 29: What are we working on for the Future Retail?
What are we working on for the FUTURE RETAIL? – Technology is the key to shape consumers’ behavior. - While Consumer Changes will drive the way of Retailing. 29
Slide 30: CAPEX Plan on Efficiency – Robotic Picking and Conveying System
CAPEX Plan on Efficiency – Robotic Picking and Conveying System • Hong Kong’s largest robotic warehousing system, introduced from Germany, phrase I installed at Tsing Yi hub, launched in Jan 2018 • Fully automated system for storage, on-site transportation, pick and pack to enhance logistics efficie
Slide 31: Second Robotic Warehousing System at TKO Headquarters
Second Robotic Warehousing System in Much Larger Scale at Self-owned TKO Headquarters
Slide 32: Future Count on Machine Learning, Predictive Intelligence and Data Analytics
Future Count on Machine Learning, Predictive Intelligence and Data Analytics Data – We are building the “Future of Retail” – in the past 36 months, we collected a total of about 2.7 million users’ behavior in HKTVmall and HoKoBuy (source: Internal systems and relevant platforms), all these represent
Slide 33: Future Count on Machine Learning, Predictive Intelligence and Data Analytics
Future Count on Machine Learning, Predictive Intelligence and Data Analytics Capabilities – We are ready to assist our partners to groom their businesses! • According to the table extracted below from a recent whitepaper – “Smarter Digital City” jointly published by Google and Nielsen, to benefit fr
Slide 34: How will HKTV be Successful?
How will HKTV be Successful? 34
Slide 35: To Conclude – How will HKTV be successful
To Conclude – How will HKTV be successful ….. 1. HKTV creates significantly different shopping EXPERIENCE vs Offline Shop • Real “convenience” kick-in by a mobile 24-hour shopping mall – consumers can find product information and comparable, and make purchases anytime, anywhere and complementary to
Slide 36: To Conclude – How will HKTV be successful
To Conclude – How will HKTV be successful ….. 2. Expanding “Digital” crowds • Though Hong Kong has 81% of its population connected to Internet, it is still behind its peers in the region – Singapore, South Korea, Japan in terms of digital transformation (source: The Economist: http://connectedfuture
Slide 37: www.hktvmall.com www.hokobuy.com
www.hktvmall.com http://www.hokobuy.com
Slide 38: Appendices
Appendices 38
Slide 39: Non Stop Credit Card Partnership with Most Popular Banks
Non Stop Credit Card Partnership with Most Popular Banks in Hong Kong
Slide 40: Continuous Customer Acquisition & Repeated Purchases
Continuous Customer Acquisition & Repeated Purchases • VIP Programme enjoy at HK$250 for free delivery service and benefit from VIP price • Advertising panels along the MTR stations • On-street promoters “Jetsoer” in specific areas to push for HKTV mall App download and initiate the first purchase •
Slide 41: Unprecedented Advertising Campaign along MTR Stations
Unprecedented Advertising Campaign along MTR Stations (Aug – Sep 2015) • A boost up campaign for brand building and brand awareness purpose, covering more than 3,000 advertising panels along the 119 tracks of 50 MTR • Our aim is to strengthen the association between Shopping and HKTVmall in people’s
Slide 42: $99 Crazy Meat Sets Campaign
$99 Crazy Meat Sets Campaign to welcome 2016 (Jan 2016) • The third large scale brand awareness campaign on selected advertising panels along the MTR stations … We woke people up at 6am and 1pm everyday during the campaign period to “fight” for the $99 super value for money set! • Our aim is to maxi
Slide 43: Event Marketing
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Hong Kong Television Network — Investor Presentation (January 2018) on 6ix