Investment Rating - The report maintains a "Buy" rating for KEEP (3650) [3][10]. Core Views - The company has significantly reduced losses through optimizing its business structure and cost control measures, and the future outlook remains positive due to its comprehensive fitness content and sports products [2]. - In 2023, the company achieved revenue of 2.138 billion RMB, a decrease of 3.3%, with an adjusted loss of 295 million RMB, which is an improvement from the previous year's loss of 667 million RMB [2]. - The report anticipates a slight increase in expenses for 2024-2025, adjusting the forecasted net profit to -267 million RMB and -56 million RMB respectively, with a projected adjusted net profit of 81 million RMB for 2026 [2]. Revenue Breakdown - Revenue by segment in 2023: - Proprietary sports products: 946 million RMB, down 16.8% - Online membership and paid content: 996 million RMB, up 11.4% - Advertising and others: 196 million RMB, up 8.6% [2]. - Average monthly active users decreased by 18.2% to 29.756 million, while subscription members decreased by 11.8% to 3.193 million, attributed to external environmental impacts and cost control strategies [2]. Profitability and Cost Control - The gross margin improved to 45%, an increase of 4.27 percentage points, with specific segments showing varied performance: - Proprietary sports products: 27.7%, down 0.43 percentage points - Online membership and paid content: 62.8%, up 8.58 percentage points - Advertising and others: 37.6%, down 15.1 percentage points [2]. - The adjusted loss margin was -13.8%, an improvement of 16.4 percentage points, achieved through reduced marketing activities and optimized logistics and personnel structures [2]. Product and Content Development - By the end of 2023, the platform offered 4,225 recorded courses to paid members, an increase of 2,352 courses, with a significant rise in workout frequency among members [2]. - New virtual events and challenges were launched to enhance brand recognition among niche audiences, resulting in a record high average revenue per paid user, increasing by over 30% [2]. - The company focused on optimizing the design and cost structure of smart devices, launching several new products that received positive feedback [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company experienced a revenue decline of 3.3% in 2023, with significant improvements in adjusted net profit loss. The average monthly active users (MAU) decreased by 18.2% to 29.76 million, but the paid penetration rate increased from 10.0% to 10.7%, and the average revenue per user grew by 17.6% [1][12] - The company is expanding into outdoor equipment and course content, which is expected to drive revenue and gross margin growth in the consumer goods segment [12] - Due to a continued weak recovery in the industry and planned increases in expenditure, the profit forecast has been adjusted downwards for 2024-2026 [12] Summary by Relevant Sections Financial Performance - In 2023, the company's revenue was 2.138 billion yuan, down from 2.212 billion yuan in 2022, reflecting a 3.3% decrease. The adjusted net profit loss was 295 million yuan, an improvement from a loss of 667 million yuan in 2022 [2][13] - The gross margin for 2023 was 45.0%, an increase of 4.3 percentage points year-on-year. The company managed to reduce its expense ratio by 9 percentage points [1][12] Revenue and Profit Forecast - The revenue forecasts for 2024, 2025, and 2026 are set at 22.7 billion yuan, 24.0 billion yuan, and 25.2 billion yuan, respectively, with expected growth rates of 6.0%, 5.9%, and 5.1% [7][12] - The adjusted net profit forecasts for the same years are -2.4 billion yuan, -0.5 billion yuan, and +0.3 billion yuan, indicating a gradual improvement towards profitability [7][12] Valuation Adjustments - The target price has been adjusted to 4.6-4.9 HKD, corresponding to a price-to-sales (PS) ratio of 0.95-1.0x for 2024, reflecting a downward revision due to lower expected revenue growth and net profit margins [9][12]

Core Insights - KEEP reported a revenue of RMB 2.138 billion for the year ending December 31, 2023, a decrease of 3.3% year-on-year, while gross profit increased by 6.8% to RMB 0.962 billion [1] - The adjusted net loss for the year was RMB 0.295 billion, a significant reduction of 55.7% compared to the previous year, and the profit attributable to owners was RMB 1.106 billion, compared to a loss of RMB 0.1055 billion in the same period last year [1] - The company aims to promote a healthy and active lifestyle through its AI-driven personalized training plans and professional online fitness content, including recorded and interactive live classes [1] Financial Performance - Total revenue for 2023 was RMB 2.138 billion, down 3.3% year-on-year, primarily due to lower consumer confidence affecting self-branded sports product sales and a cautious approach to new product expansion and market strategies [1] - The gross margin improved significantly from 40.7% in the previous year to 45.0% in 2023 [1] - The adjusted net loss narrowed from RMB 0.667 billion in 2022 to RMB 0.295 billion in 2023, with an adjusted net loss rate of 6.3% in the second half of 2023, down from 29.1% in the same period last year [1] User Engagement - The average monthly active users and average monthly subscription members for 2023 were 29.8 million and 3.2 million, respectively, down from 36.4 million and 3.6 million in 2022 [2] - The decline in user numbers was attributed to a surge in COVID-19 cases at the beginning of 2023 and increased offline leisure and travel activities post-pandemic [2] - In the second half of 2023, the decline in average monthly active users and subscription members slowed, indicating a recovery as the company introduced new outdoor programs [2] Revenue Growth - The average revenue per monthly active user increased by 17.6% year-on-year, driven by the continued growth of the virtual sports events business [2] - Membership penetration improved from 10.0% in the previous year to 10.7% in 2023, reflecting the company's efforts to enhance content and services [2]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產 生或因依賴該等內容而引致的任何損失承擔任何責任。 附註： Keep Inc. （於開曼群島註冊成立的有限公司） （股份代號：3650） 截至2023年12月31日止年度之年度業績公告 以及組織章程細則建議修訂及採納第十三次經修訂 及重列組織章程大綱及細則 | --- | --- | --- | --- | |--------------------------------|------------|-------------------|---------------| | | | | | | 年度業績摘要 | | | | | | | | | | | 截至 | 12 月 31 日止年度 | | | | 2023 年 | 2022 年 | 同比變動 | | | 人民幣千元 | 人民幣千元 | (%) | | | | | | | 收入 | 2,137,834 | 2,211,551 | (3.3) | | 毛利 | 961,644 | 900, ...

k keep Keep Inc. (A company incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號 : 3650 Interim Report 中期報告 2023 目錄 | --- | --- | --- | |-------|-------|----------------------------| | | | | | | 02 | 釋義 | | | 04 | 公司資料 | | | 06 | 財務摘要 | | | 07 | 管理層討論與分析 | | | 20 | 企業管治及其他資料 | | | 31 | 中期簡明綜合收益表 | | | 32 | 中期簡明綜合全面收益表 | | | 33 | 中期簡明綜合資產負債表 | | | 35 | 中期簡明綜合權益虧絀變動表 | | | 37 | 中期簡明綜合現金流量表 | | | 39 | 中期簡明綜合財務報表附註 | 釋義 於本報告內，除文義另有所指外，下列詞彙具有以下涵義。該等詞彙及其釋義未必與任何行業標準釋義相符，且未 必可 ...

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 Keep Inc. （於開曼群島註冊成立的有限公司） （股份代號：3650） 截 至 2023 年 6 月 3 0 日止六個月之中期業績公告 | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...