KEEP(03650) - 2024 - 中期业绩

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 1,037.3 million, representing a year-on-year increase of 5.4%[6] - Gross profit for the same period was RMB 477.3 million, with a gross margin of 46.0%, up from 43.0% in the previous year, reflecting a 3.0 percentage point improvement[6] - Adjusted net loss for the six months was RMB 160.7 million, a significant reduction of 28.0% from RMB 223.1 million in the same period last year[6] - Total revenue for the six months ended June 30, 2024, was RMB 1,037,343 thousand, an increase from RMB 984,656 thousand in the same period of 2023, resulting in a gross profit of RMB 477,322 thousand[40] - The company reported a net loss of RMB 163,353 thousand for the six months ended June 30, 2024, compared to a net profit of RMB 1,195,124 thousand for the same period in 2023[41] - Basic loss per share for the six months ended June 30, 2024, was RMB (0.35), a significant decrease from RMB 8.64 in the prior year[58][59] User Engagement and Growth - Average monthly active users increased to 29.7 million, compared to 29.5 million in the previous year, while average monthly subscribers rose to 3.3 million from 3.0 million[8] - Monthly average revenue per active user grew by 5.0% year-on-year to RMB 5.8[8] - Membership penetration rate improved to 11.1% from 10.2% year-on-year, indicating a successful expansion of the user base[6] - The company launched the upgraded Keep App 8.0 in March 2024, enhancing user experience and engagement[8] - As of June 30, 2024, the total number of member-exclusive courses increased to 5,595 from 2,366 a year earlier, representing a growth of over 135%[11] - The number of workout sessions for member courses grew by over 70% in the first half of 2024 compared to the same period in 2023[11] Revenue Breakdown - Revenue from proprietary sports products reached RMB 501.5 million, up 7.5% from RMB 466.4 million in the prior year, primarily due to increased sales through wholesale channels and fitness equipment[21] - Advertising and other revenue surged by 42.4% to RMB 98.9 million, compared to RMB 69.4 million in the previous year, mainly due to online-to-offline integrated advertising services[21] - Online membership and paid content revenue was RMB 436,996,000, slightly decreasing from RMB 448,864,000 in the previous year[53] Cost Management - Operating costs slightly decreased by 0.2% to RMB 560.0 million from RMB 561.0 million in the previous year, attributed to reduced costs in online membership and paid content[22] - Administrative expenses decreased by 19.3% from RMB 112.0 million to RMB 90.5 million, attributed to optimized accounts receivable management[29] - Research and development expenses decreased by 19.6% from RMB 243.4 million to RMB 195.7 million, mainly due to reduced personnel costs and cloud service fees[30] - Online membership and paid content costs decreased by 21.8% from RMB 179.4 million for the six months ended June 30, 2023, to RMB 140.4 million for the six months ending June 30, 2024[24] Strategic Initiatives - The company initiated and expanded a share repurchase program to enhance shareholder value, reflecting confidence in future business prospects[7] - The strategic focus on core business and operational efficiency has led to a gradual narrowing of losses, supporting growth in both scale and monetization capabilities[7] - The company is exploring new initiatives, including the optimization of virtual sports events and plans to launch AI sports products overseas[7] - Keep is actively exploring new market opportunities by expanding its offline activities and enhancing its event structure to boost user participation[13] Product Development - Keep App 8.0 version covers over 60 sports categories and integrates with more than 50 smart devices, enhancing user experience and convenience[9] - Keep's new immersive course experiences, such as the collaboration with "Arknights," utilize 3D motion capture to engage users more effectively[11] - The company aims to release its first smartwatch in August 2024, expanding its wearable product offerings and enhancing user experience[16] Financial Position - As of June 30, 2024, the company's cash and cash equivalents amounted to RMB 1.4 billion, a decrease from RMB 1.6 billion as of December 31, 2023, primarily due to cash used in operating and financing activities[36] - The company's asset-liability ratio as of June 30, 2024, was 0.27, compared to 0.24 as of December 31, 2023, indicating a slight increase in leverage[39] - The total equity as of June 30, 2024, was RMB 1,693,287 thousand, down from RMB 1,873,149 thousand as of December 31, 2023, reflecting a decrease in shareholder value[43] Shareholder Communication - The audit committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2024[69] - The interim report will be sent to shareholders and published on the company's website in due course[70] - The company expresses gratitude to shareholders, management team, employees, business partners, and customers for their support and contributions[70]