KEEP(03650) 智通财经·2024-03-28 09:55Core 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]