KEEP(03650)2025-03-28 09:00Financial Performance - Total revenue for 2024 reached RMB 2,065,694, a decrease of 3.4% compared to RMB 2,137,834 in 2023[2] - The net loss for the year was RMB 534,710, compared to a profit of RMB 1,105,908 in 2023, indicating a significant decline[2] - Adjusted net loss for 2024 was RMB 469.6 million, compared to RMB 295.4 million in 2023, primarily due to increased investments in strategic business and technological innovation[8] - Total revenue for the year ended December 31, 2024, was RMB 2,065.7 million, a decrease of 3.4% compared to RMB 2,137.8 million for the year ended December 31, 2023, primarily due to a decline in online membership and paid content service revenue[22] - The company reported a net loss attributable to shareholders of RMB 534.71 million for the year ended December 31, 2024, compared to a profit of RMB 1.11 billion in 2023, representing a significant decline[85] - Basic loss per share for 2024 was RMB (1.15), down from earnings of RMB 3.78 per share in 2023[83] User Engagement and Growth - Average monthly active users (MAUs) rose to 29,921, compared to 29,756 in 2023, reflecting a slight increase in user engagement[5] - The number of average monthly subscribers was 3,162, down from 3,193 in 2023, resulting in a membership penetration rate of 10.6%[5] - Average monthly active users for 2024 reached 29.9 million, with average monthly subscribers at 3.2 million, showing stability compared to 2023[9] - Member penetration rate for 2024 was 10.6%, slightly down from 10.7% in 2023, indicating a stable user base[9] - Outdoor user growth in 2024 matched indoor fitness users, with running as the primary activity and over 30% growth in cycling, ball sports, swimming, and boxing users[11] - The platform reached over 400 million registered users and 100 million annual active users by the end of 2024, with over 5.5 million annual exercise users[14] Product Development and Innovation - The company launched a new generation of wearable fitness devices and a series of popular products integrating sports science and aesthetics[4] - The Keep App 8.0 version launched in 2024 included over 40,000 recorded classes, catering to diverse user needs and enhancing online fitness services[10] - AI-generated content accounted for nearly 14% of the 6,000+ official courses, with new overseas AI fitness applications providing 100% AI-generated personalized plans[15] - The introduction of the exercise file feature integrates over 100 sports indicators, providing users with comprehensive insights into their exercise performance and health data[13] - The wearable product line, including the B4 and B4 Lite, achieved cumulative sales of over 1.2 million units, with the newly launched "Keep Watch Pilot 1" smartwatch selling over 12,000 units within four months of its release[18] Revenue Streams and Cost Management - Revenue from proprietary fitness products increased by 0.8% year-on-year in 2024, with gross profit rising significantly by 15.3%, leading to an overall gross margin improvement to 31.7% from 27.7% in 2023[17] - Revenue for proprietary sports products reached RMB 953.9 million, a 0.8% increase from RMB 946.1 million in 2023, driven by increased sales of complementary sports products[24] - Online membership and paid content revenue decreased by 7.8% to RMB 917.8 million from RMB 995.8 million in 2023, primarily due to a decline in revenue from online sports events[24] - Operating costs decreased by 6.5% to RMB 1,100.3 million from RMB 1,176.2 million in 2023, benefiting from successful cost control measures[26] - Sales and marketing expenses rose by 33.1% to RMB 757.9 million, primarily due to increased promotional and advertising expenditures[33] Strategic Goals and Future Outlook - The company aims to achieve breakeven by 2025 through technology empowerment and operational cost reduction[8] - The company plans to leverage generative AI technology to enhance user experience and expand personalized fitness offerings, transitioning from a content-driven model to a data-driven model[16] - The company aims to enhance and expand its online services, targeting both domestic and international markets, to increase user scale and subscription revenue through AI and data-driven applications[21] - The company is focused on optimizing its business structure and enhancing operational efficiency to meet diverse user needs in the evolving fitness landscape[6] Financial Position and Assets - The total available cash as of December 31, 2024, was RMB 1.2 billion, down from RMB 1.8 billion as of December 31, 2023, primarily due to cash outflows from operating activities and investments in financial assets[42] - Total assets decreased from RMB 2,448,741 thousand in 2023 to RMB 1,905,802 thousand in 2024, a decline of approximately 22.2%[56] - Current assets decreased from RMB 2,291,429 thousand in 2023 to RMB 1,735,935 thousand in 2024, a decline of about 24.2%[56] - Cash and cash equivalents significantly decreased from RMB 1,612,769 thousand in 2023 to RMB 764,260 thousand in 2024, a drop of approximately 52.7%[56] - Total equity decreased from RMB 1,873,149 thousand in 2023 to RMB 1,355,802 thousand in 2024, a decline of around 27.5%[56] Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period, except for the separation of the roles of Chairman and CEO[95] - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ended December 31, 2024[100] - The company has maintained compliance with the minimum public float percentage as required by the listing rules throughout the reporting period[99]