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

FACEBOOK

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