KEEP(03650)2024-04-25 08:56Financial Performance - Total revenue for 2023 was RMB 2,137,834, a decrease of 3.3% from RMB 2,211,551 in 2022[7] - Gross profit for 2023 reached RMB 961,644, with a gross margin of 45.0%, up from 40.7% in 2022[7] - The company reported a net profit of RMB 1,105,908 for 2023, a significant recovery from a loss of RMB 104,551 in 2022[7] - Total revenue for 2023 was RMB 2,137.8 million, a decrease of 3.3% year-over-year, primarily due to lower consumer confidence in e-commerce affecting proprietary brand sports product sales[12] - Revenue from proprietary sports products was RMB 946.1 million, down 16.8% from RMB 1,137.0 million in the previous year, attributed to lower consumer sentiment and increased offline leisure activities post-pandemic[26] - Revenue from online membership and paid content increased by 11.4% to RMB 995.8 million, driven by growth in virtual sports events[27] - Gross profit increased by 6.8% from RMB 900.4 million for the year ended December 31, 2022, to RMB 961.6 million for the year ended December 31, 2023[32] - Gross margin improved by 4.3 percentage points from 40.7% for the year ended December 31, 2022, to 45.0% for the year ended December 31, 2023, primarily due to increased revenue and gross profit contributions from online memberships and paid content[32] User Engagement and Membership - Average monthly active users decreased to 29,756 thousand in 2023 from 36,388 thousand in 2022[10] - Monthly average revenue per user increased to RMB 6.0 in 2023, compared to RMB 5.1 in 2022[10] - The average number of monthly subscription members was 3,193 thousand, down from 3,621 thousand in 2022[10] - The membership penetration rate improved to 10.7% in 2023 from 10.0% in 2022[10] - Monthly average revenue per active user increased by 17.6% year-over-year, driven by the continued growth of the virtual sports events business[14] - The number of recorded courses offered to paid members increased to 4,225 by December 31, 2023, up from 1,873 courses in 2022[15] - Average revenue per paid user in virtual sports events increased by over 30% compared to 2022, reflecting successful collaborations with well-known brands[19] Operational Efficiency and Cost Management - The company is focused on optimizing products and services while enhancing operational efficiency for sustainable growth[11] - The company aims to maintain a prudent cost control strategy to ensure user satisfaction across products and services[11] - Operating costs decreased by 10.3% to RMB 1,176.2 million from RMB 1,311.2 million in the previous year, significantly outpacing the slight decline in revenue[29] - The company successfully reduced inventory turnover days and lowered sales and marketing expense ratios, improving operational efficiency[24] - Operating expenses decreased by 22.8% from RMB 201.6 million for the year ended December 31, 2022, to RMB 155.7 million for the year ended December 31, 2023, mainly due to reduced revenue from proprietary fitness products and further optimization of logistics and warehousing costs[35] - Sales and marketing expenses decreased by 11.9% from RMB 646.2 million for the year ended December 31, 2022, to RMB 569.3 million for the year ended December 31, 2023, primarily due to reduced promotional and advertising expenses[36] Strategic Initiatives and Future Plans - The company aims to invest in immersive and exclusive online fitness content to enhance user acquisition and retention, strengthening its market position[25] - The company plans to continue enhancing and executing its core business strategy in 2024, focusing on empowering users pursuing a healthy lifestyle[12] - The company plans to further expand outdoor functionalities and products, enhancing service for outdoor users[25] - The app introduced new features including personalized route recommendations and enhanced social interaction capabilities, aimed at increasing user engagement[20] Shareholder and Governance Information - The company reported that its top five customers accounted for less than 30% of total sales, indicating a diversified customer base[90] - The issued share capital of the company as of December 31, 2023, was 525,671,987 shares[92] - The company maintained a minimum public float of 25% as required by listing rules as of December 31, 2023[98] - The company has a diverse shareholder base, including various investment funds and trusts, which may influence strategic decisions and market positioning[114] - The voting rights associated with 21,652,719 shares are controlled by Mr. Wang through a voting proxy agreement[112] - The company continues to monitor shareholder interests and compliance with securities regulations to ensure transparency and governance[113] Employee and Management Information - As of December 31, 2023, the total number of full-time employees was 955, down from 1,243 as of December 31, 2022[50] - Employee benefits for the year ended December 31, 2023, amounted to RMB 639.8 million, compared to RMB 766.8 million for the year ended December 31, 2022, reflecting a decrease of approximately 16.5%[50] - The company has implemented diverse learning and development programs for employees, including management training initiatives[87] - The board of directors includes key executives such as the CEO and co-founders, ensuring strong leadership continuity[100] - The compensation committee has been established to review the compensation policies and structures for all directors and senior management, ensuring a formal and transparent process[169] Compliance and Legal Matters - The company has complied with all relevant laws and regulations during the year ending December 31, 2023, with no significant legal proceedings affecting its operations[85] - The independent non-executive directors confirmed that the related party transactions were conducted according to the agreement terms and were fair and reasonable[155] - The company has complied with the applicable provisions of the listing rules regarding related party transactions for the year ended December 31, 2023[156] Risk Management and Financial Health - The company is continuously monitoring current and expected liquidity needs to ensure sufficient cash reserves for both short-term and long-term requirements[51] - Cash and cash equivalents decreased from RMB 1.7 billion as of December 31, 2022, to RMB 1.6 billion as of December 31, 2023, mainly due to cash used in operating activities[45] - As of December 31, 2023, the outstanding borrowings were RMB 10.0 million, with a debt-to-asset ratio of 0.24, significantly improved from 3.85 as of December 31, 2022[51] - The company does not face significant interest rate risk due to the absence of major floating-rate assets or liabilities, with financial assets and liabilities primarily consisting of fixed-rate instruments[54]