freespinpokerdeluxe| Keep releases its 2023 annual report, reducing operating costs by 10.3%, and improving operational efficiency

After trading on April 25, sports technology company Keep (3650)Freespinpokerdeluxe.HK) announcementFreespinpokerdeluxeThe 2023 annual report. The report comprehensively presents the development and achievements of Keep in 2023 through the company's financial summary, management business discussion, corporate governance report and other dimensions.

On the financial side, Keep's total revenue in 2023 was 21.FreespinpokerdeluxeRMB 3.8 billion (the same below), the adjusted net loss (measured by non-IFRS, the same below) was 295 million yuan, narrowed by 55.7% compared with 667 million yuan in 2022, and the adjusted net loss rate narrowed from 30.2% to 13.8%. Keep gross profit increased for four consecutive years, from 273 million yuan in 2019 to 962 million yuan in 2023. The operating cost of Keep has decreased by 10.3% to 1.176 billion yuan from 1.311 billion yuan in 2022, and the operating efficiency has improved significantly.

Keep revenue sources are mainly divided into: private brand sports products (consumer goods), online members and paid content (online business) and advertising andFreespinpokerdeluxehe. Of this total, revenue from online members and paid content was 996 million yuan, up 11.4 percent from the same period last year, accounting for 46.58 percent from 40.4 percent in 2022, revenue from own-brand sports products was 946 million yuan, accounting for 44.24 percent, and advertising and other revenue was 196 million yuan, accounting for 9.18 percent, an increase of 8.6 percent over the same period last year.

Key operating data show that in 2023, Keep had an average of 29.76 million monthly active users, an average of 3.19 million monthly subscribers, and a membership penetration rate of 10.7%, up from 10% in 2022.

As at 31 December 2023, Keep had total current assets of $2.29 billion, total assets of $2.45 billion and net asset value of $1.87 billion, with reserves available for distribution to shareholders of $5.3 billion.

The fitness content is diversified, and the member service breaks out in an all-round way.

In 2023, Keep continues to provide users with a wide range of professional online courses covering aerobics, rope skipping, yoga, strength training and other sports categories.

In terms of member courses, Keep provides a large number of exclusive online recording and broadcasting courses for members. As of December 31, 2023, the number of Keep member-specific recording and broadcasting courses was 4225, an increase of 126% compared with 1873 in the same period of the previous year. At the same time, Keep has launched a number of self-research courses and the existing popular professional creative content courses, and in cooperation with Pamela, Ouyang Chunxiao and other well-known fitness talents, launched exclusive high-quality recording courses to enhance the rights and interests of members and meet the diverse needs of members.

In addition to exclusive recording courses, Keep also launched exclusive outdoor courses for members in 2023, breaking through the previous indoor sports scenes dominated by family or gym, and adding outdoor courses to serve users of different sports levels, such as easy running courses for beginners, advanced training courses for marathon runners, quality content and new outdoor courses will continue to promote members' activity and open up new opportunities for future development.

With the continuous improvement of membership services, the member penetration rate, average monthly membership retention rate and activity of Keep in 2023 are all higher than those in 2022-in 2023, the penetration rate of Keep members reached 10.7%, and the number of member courses increased by more than 200% compared with 2022.

The report points out that Keep will continue to deepen its strategic investment in content development and drive future growth with its deep insight into users, its ability to respond flexibly to the evolution of needs, and its continuously polished content research and development capabilities.

The interest of virtual sports events has been upgraded, reaching a wide range of users.

The participation and popularity of Keep's online virtual sporting events increased significantly in 2023, with the average income per paying user of virtual sporting events reaching a new high in 2023, an increase of more than 30 per cent compared with 2022.

Virtual sports event is an interesting activity launched by Keep to encourage users to participate in sports. Users choose different sports challenges through registration fees ranging from 20 yuan to 179 yuan, which can achieve a variety of fitness achievements and sports entity awards, greatly enhance users' willingness to exercise, and meet the growing needs of different user groups for high-quality fitness content.

Over the past year, Keep has expanded its service coverage and reached a wider range of users by constantly expanding its cooperation with popular IP. For example, the joint online game launched by Keep in 2023, "run away, Trail Blazers!" Virtual sports events such as "Love of Light and Night online Challenge" and other virtual sports events such as Star Dome Railway online commonweal run have further expanded the popularity of Keep among binary game fans.

There are frequent new products of own brand sports products, and sports experience continues to upgrade.

In addition to its diverse content services and large and active community, Keep also offers a wide range of own-brand sports products (consumer goods), including smart fitness equipment (such as smart bicycles, bracelets and treadmills) and ancillary sports products (including smart equipment, clothing and food), which work together with online fitness content to create an one-stop comprehensive sports solution for users.

In 2023, under the premise of focusing on optimizing the design, function and cost structure of smart devices, Keep launched a number of intelligent hardware, including the new self-generating smart bike C1 Mini+, B4 Lite bracelet, the first A1 rowing machine and K4 treadmill and other products, these products meet the needs of different users with excellent design and functions. Among them, A1 rowing machine won the 2023 Red Dot Product Design Award, and K4 treadmill won the 2024 IF Design Award. At the same time, all kinds of intelligent fitness equipment have rich supporting content. For example, by the end of 2023, Keep's theme realistic cycling route has been expanded to 74.

The product strength of Keep's core equipment and clothing category was also enhanced in 2023, and its yoga clothing, fitness equipment, protective equipment, sports underwear and fitness pants continued to be popular. At the same time, based on the needs of users, Keep extends the product line from indoor to outdoor related categories, providing users with the choice of sports equipment and clothing in a variety of sports scenes. In the past year, the development of Keep outdoor products has shown a steady growth momentum.

Looking forward to the future: expanding outdoors, laying out AI, exploring overseas

The report shows that based on the company's tenacious performance in 2023, management is optimistic about the company's long-term development prospects, and will strive to improve service and commercialization efficiency and enhance profitability, which will be laid out in the following areas in the future:

-- invest in online content. Keep will continue to invest in immersive, exclusive and professional online fitness content to build a strong business foundation, acquire and retain quality users, and consolidate its leading position in the online fitness market.

--Improve outdoor services. Keep will further expand and improve outdoor functions and products to better serve outdoor users. For example, Keep's recently fully upgraded version 8.0 of the App can provide users with a better outdoor sports experience and deeper community interaction functions.

--Explore opportunities for AI technology in overseas markets. Keep will develop and apply new technologies and intelligent functions, actively explore application opportunities of AI technology in overseas markets, use AI to drive innovation, provide users with excellent sports experience in a more efficient way, attract new user groups, and explore new commercial opportunities.