Leveraging the escalating shift towards online shopping during the pandemic, HKTVmall operator Hong Kong Television Network (1137) is one of the few companies that saw a growth in revenue over the past year, turning a profit for the first time since its launch in 2015. Speaking to Apple Daily, founder and CEO Ricky Wong revealed plans to set up research and development centers in Taiwan and Europe next year, which will create a total of 500 jobs.

Since the company purchased mask machines to maintain a steady local supply during the acute shortage in February, gross merchandise value (GMV) of the e-commerce platform has doubled year-on-year. GMV from July to November reached HK$2.637 billion (US$340.1 million) and is expected to meet the goal of HK$2.8 - HK$3 billion in the second half of the year.

HKTVmall, which had around 1.35 million active monthly users during the first half of 2020, also bolstered growth by launching various new services in recent months, including a platform for restaurants’ takeaways, cash payment at its brick-and-mortar shops, shopping festivals with major discounts for consumers and commission cuts for participating shops.

There were challenges as well. In response to the spike in users and transactions, the company had to adjust the minimum spending for free shipping. At one point, 20% of the workforce were in quarantine, resulting in significant delays in the delivery. The company’s stock plunged by as much as 12% after it announced a crowdfunding campaign.

But the company managed to pull through and turn its first profit in five years with a net income of HK$109 million. Once users taste the convenience of online shopping, there will be no turning back, said Wong when publishing the interim results.

HKTV’s stock price is inversely related to the COVID-19 situation in Hong Kong, increasing to HK$6.7 in February and falling in June as the pandemic eased. It saw another spike amid the third wave in July and hit the record high of HK$13.76 in October, putting the company’s market value at HK$12 billion.

Now Wong is planning to take its e-commerce arm global. Even though mass vaccinations may bring an end to the pandemic, online shopping will continue to be a habit, said Wong, with a vision to make the platform more sustainable in the long term.

The company will establish a research and development center in Taiwan, which will hire 200 to 300 tech talents to support the global expansion, as well as a sales support center in Europe, creating another 200 jobs.

Locally, it will strengthen its financial and insurance services in Hong Kong in an effort to turn the shopping platform into a hub for digital commerce.

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