KEEP(03650)2024-09-24 09:00User Engagement and Growth - Keep Inc. reported a significant increase in user engagement, with a 25% year-over-year growth in active users, reaching 5 million[3]. - Average monthly active users increased to 29.7 million, up from 29.5 million in the same period last year, while average monthly subscription members rose to 3.3 million from 3.0 million[16]. - Membership penetration rate improved to 11.1% from 10.2% in the previous year, reflecting enhanced user engagement[14]. Financial Performance - The company achieved a revenue of 10 million in new product development, focusing on enhancing its fitness app features and user experience[3]. - Keep App 8.0 launched in March 2024, expanding to over 60 sports categories and integrating with more than 50 smart devices, enhancing user experience and interaction[17]. - Keep upgraded its data analysis tools, expanding body assessments to include more body parts and providing personalized training plans based on running performance metrics[20]. Market Expansion and Strategy - Keep Inc. plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2025[3]. - The overall business strategy focuses on balancing healthy growth with cost efficiency, aiming for stable user scale and increased user value[15]. - The company is exploring partnerships with local fitness centers to increase user engagement and retention rates[3]. Sustainability and Corporate Responsibility - The company is committed to sustainability, aiming to reduce its carbon footprint by 30% over the next three years[3]. - Keep's collaboration with top fitness influencers and IPs aims to create immersive course experiences, enhancing user participation and engagement[19]. Shareholder Value and Corporate Governance - The company launched and expanded a share repurchase plan to enhance shareholder value amid growing public interest in fitness[13]. - The audit committee consists of three independent non-executive directors and is responsible for reviewing financial reporting procedures and internal control systems[92]. - The company has adopted a standard code for securities trading by directors, confirming compliance during the reporting period[88]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, amounted to RMB 1.4 billion, down from RMB 1.6 billion as of December 31, 2023, primarily due to cash used in operating and financing activities[41]. - The net cash outflow from operating activities for the six months ended June 30, 2024, is RMB (196,962) thousand, compared to RMB (176,088) thousand for the same period in 2023, indicating an 11% increase in cash outflow[103]. Employee Compensation and Management - The total employee benefits expense for the six months ended June 30, 2024, was RMB 282.0 million, a decrease from RMB 335.2 million for the same period in 2023[43]. - Total remuneration for key management personnel increased to RMB 9,391,000 for the six months ended June 30, 2024, compared to RMB 15,007,000 for the same period in 2023, reflecting a decrease of approximately 37.5%[162]. Share Capital and Incentive Plans - The total number of issued shares (including treasury shares) was 525,671,987[54]. - The company has a structured share incentive plan that includes unexercised restricted share units for key executives[54]. - The maximum number of shares that can be issued under all incentive plans is 10% of the issued shares on the listing date, equating to 52,567,199 shares[78].