Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Business Update and

Unaudited Operational Information for February 2020

The board of directors (the "Board") of Hong Kong Television Network Limited (the "Company" and together with its subsidiaries, the "Group") is pleased to announce certain business update and the unaudited operational information for February 2020 of the Group.

The unaudited operational information of its online shopping platform(s) and offline business for February 2020 of the Group is summarized as below:

In the month of

Change in Percentage

February

January

February

February 2020

February 2020

2020

2020

2019

vs January

vs February

2020

2019

Average daily order number

32,600

22,400

12,300

45.5%

165.0%

(rounded to the nearest hundred)

Average order value

HK$510

HK$488

HK$523

4.5%

(2.5%)

(rounded to the nearest dollar)

Average Daily Gross Merchandise

HK$16.6

HK$10.9

HK$6.4

52.3%

159.4%

Value ("GMV") on Order Intake i

million

million

million

(rounded to the nearest hundred

thousand)

Monthly GMV on Order Intakei

HK$482

HK$338

HK$179

42.6%

169.3%

(rounded to the nearest million)

million

million

million

In the month of

February 2020iii

January 2020iii

February 2019

Number of unique devices landing on product

2,750,000

2,033,000

1,382,000

details page or performing search at HKTVmall

and/or HoKoBuy ii (rounded to the nearest

thousand)

1

In the month of

February 2020 iv

January 2020 iv

February 2019

Number of unique customers who made purchases

373,000

292,000

191,000

at HKTVmall and/or HoKoBuy (rounded to the

nearest thousand)

The growth momentum for the Group's business continued in February 2020 as a result of the increased "home" time and less desire of the Hong Kong people to go to crowded areas under the current novel coronavirus outbreak. The outbreak is an unprecedented challenge which is still difficult for everyone to estimate how long it will remain, but the Group observes that the Hong Kong consumers now have a higher tendency and frequency to shop for their needs online, such as at HKTVmall, than before, in particular on those anti-virus or protection products, and non-discretionary goods. The Group expects that after experiencing online shopping for several months, some of our customers may change their shopping behavior from offline to online.

The unexpected surge in online traffic and business volume in the past two months has brought business growth to the Group but also caused certain unpleasant customer online and fulfilment experiences at HKTVmall. The Group is working continuously to overcome these challenges. The improvement measures mentioned in the Company's last business update dated 10 February 2020 are being implemented over time as below:

  1. The "purchase by invitation" platform will be launched in March 2020 while the "categorization of customer base" is a continuous refining process for better customer experience;
  2. Our warehouse pick pack operation has increased to two (2) work shifts and will be adjusted based on the development on business volume;
  3. We now partner with Baleno, CATALO, Foodwise, GIORDANO and Hung Fook Tong, together with our existing O2O shops and mobile pick up trucks, reaching a total of one hundred (100) pick up points; and
  4. We have engaged certain reputable third party logistics companies and individual subcontractors to increase the last mile fulfilment flexibility.

The Board will continue to assess the sustainability of the business growth, closely monitor the business development and resources allocation to cope with the change in business volume and activities.

2

The Board wishes to remind shareholders and potential investors of the securities of the Company that the above information is unaudited and is based on preliminary internal information of the Group, which may differ from figures to be disclosed in the audited or unaudited consolidated financial statements to be published by the Company on an annual or half-yearly basis due to various uncertainties during the process of collating such sales information.

Shareholders and potential investors of the Company are cautioned not to unduly rely on such information and are advised to exercise caution in dealing in the Company's securities.

By Order of the Board

Hong Kong Television Network Limited

Cheung Chi Kin, Paul

Chairman

Hong Kong, 3 March 2020

As at the date of this announcement, the executive Directors of the Company are Mr. Cheung Chi Kin, Paul (Chairman), Mr. Wong Wai Kay, Ricky (Vice Chairman and Chief Executive Officer), Ms. Wong Nga Lai, Alice (Chief Financial Officer), Mr. Lau Chi Kong (Chief Operating Officer) and Ms. Zhou Huijing (Managing Director of Shopping and eCommerce) and the independent non-executive Directors are Mr. Lee Hon Ying, John, Mr. Peh Jefferson Tun Lu and Mr. Mak Wing Sum, Alvin.

  1. 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 discount offered by the marketplace, rebate used, cancellation and returns of merchandise sold.
  1. 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.
  2. From 1st January 2020 onwards, this figure only represents the number of unique devices landing on product details page or performing search at HKTVmall as the user traffic and transaction of HoKoBuy has been redirected to HKTVmall.
  3. From 1st January 2020 onwards, this figure only represents the number of unique customers who made purchases at

HKTVmall as the user traffic and transaction of HoKoBuy has been redirected to HKTVmall.

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Hong Kong Television Network Limited published this content on 03 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 March 2020 09:15:19 UTC