KEEP(03650) - 2025 - 中期业绩

Interim Results Summary Interim Results Summary Table For the six months ended June 30, 2025, the company's revenue decreased by 20.8% year-on-year to RMB 821.8 million, but gross profit margin significantly increased by 6.2 percentage points to 52.2%. Loss for the period narrowed substantially by 78.3%, and adjusted net profit of RMB 10.3 million was achieved, turning around from an adjusted net loss of RMB 160.7 million in the prior year period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 821,752 | 1,037,343 | (20.8) | | Gross Profit | 429,080 | 477,322 | (10.1) | | Gross Profit Margin (%) | 52.2 | 46.0 | 6.2 percentage points | | Loss for the Period | (35,429) | (163,353) | (78.3) | | Adjusted Net Profit/(Loss) for the Period | 10,347 | (160,690) | (106.4) | | Adjusted Net Profit/(Loss) Margin (%) | 1.3 | (15.5) | 16.8 percentage points | - The company achieved its first adjusted net profit of RMB 10.3 million, successfully turning around losses, with an adjusted net profit margin of 1.3%[3] Management Discussion and Analysis Overall Strategy and Performance Overview Keep successfully advanced its dual strategy of AI-driven platform architecture transformation and operational turnaround in H1 2025, achieving adjusted net profit by streamlining non-core businesses, optimizing product structure, and enhancing gross margin and operational efficiency for long-term sustainable development - The company focused on two strategic directions: advancing AI-driven platform architecture transformation and achieving an operational turnaround[6] - In H1 2025, the company completed AI infrastructure reconstruction, launched the basic AI coach, and achieved adjusted net profit, marking a profitability inflection point[6][8][9] - Total revenue contracted by 20.8% to RMB 821.8 million year-on-year, primarily due to the company's strategic focus on AI and active streamlining of non-core, low-efficiency businesses[9] - Gross profit margin increased by 6.2 percentage points year-on-year to 52.2% for the period, benefiting from improved gross margins in online, consumer goods, and advertising businesses[9] Key Operating Data Despite a decrease in average monthly active users and subscribers, membership penetration and average monthly revenue per MAU increased, reflecting the company's strategic shift to prioritize user activity and retention over scale expansion before the AI product system is fully developed | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Average Monthly Active Users (thousands) | 22,486 | 29,660 | | Average Monthly Revenue Per Monthly Active User (RMB) | 6.1 | 5.8 | | Average Monthly Subscribing Members (thousands) | 2,787 | 3,282 | | Membership Penetration | 12.4% | 11.1% | - Membership penetration reached 12.4%, an increase from 11.1% in the same period of 2024[10] - Average monthly revenue per monthly active user increased year-on-year to RMB 6.1, a 4.5% increase from RMB 5.8 in the prior year period[10] - Customer acquisition costs decreased by approximately 60% year-on-year, reflecting the company's optimized marketing efficiency[10] Reshaping Online Fitness Services: Centered on AI-Powered and Data-Driven Coaching Services Keep is transforming from a content-driven platform to an AI-driven, data-centric fitness intelligent entity, achieving key AI milestones in H1 2025, including Multi-Agent System (MAS) implementation, AI coach core function iteration, and AIGC workflow innovation, aiming to provide personalized, intelligent, and scientific fitness experiences - Keep is transforming from a content-driven platform to an AI-driven, data-centric fitness intelligent entity[12] - In H1 2025, three major AI milestones were completed: Multi-Agent System (MAS) implementation, AI coach core function iteration, and Artificial Intelligence Generated Content (AIGC) workflow innovation[12] AI Milestones and Core Functions The company successfully deployed MAS infrastructure, integrated large language models with fitness tools, and launched the trial version of its first AI coach 'Kaka,' enhancing personalized training, voice guidance, diet tracking, data analysis, and posture assessment capabilities, while upgrading AIGC content architecture to improve course production efficiency and personalization - Achieved Multi-Agent System (MAS) infrastructure construction, integrating large language models with full-platform fitness tool services, and optimizing the self-developed vertical model Kinetic.ai[13] - Launched the trial version of its first AI coach 'Kaka' in March 2025, offering personalized training plan generation, voice guidance, diet recording and suggestions, exercise data recording and analysis, and posture and movement assessment functions[13] - Through a triple upgrade of the AIGC content architecture, AI training plans were launched (covering 70% of user needs), new course production processes and evaluation systems were established (covering 50% of course demand points), and AI voice guidance scenarios were implemented[14] Early Achievements and Outlook of AI Coach 'Kaka' AI coach 'Kaka' has opened core functions to all users, showing positive early trends with over 150,000 AI core daily active users (DAU), particularly in AI diet recording, which demonstrates significant retention advantages. Future plans include a tiered coaching service matrix to drive member ARPU growth and a self-reinforcing flywheel effect for user scale, membership penetration, and commercial value growth - AI coach 'Kaka' has opened core functions to all users, with usage frequency restrictions for non-members[15] - According to July 2025 data, AI core daily active users (DAU) exceeded 150,000[15] - The AI diet recording function covers one-third of AI dialogue users, with a next-day retention rate of 50%, and has boosted the App DAU retention rate to 79%[15] - Looking ahead, the company plans to launch a tiered coaching service matrix to drive growth in member Average Revenue Per User (ARPU) and achieve triple growth in user scale, membership penetration, and commercial value through a self-reinforcing flywheel effect[16] Online Sports Events and Advertising Business Online sports event revenue contracted due to insufficient top-tier IP event scheduling, but the company is solidifying long-term development by optimizing operations, focusing on niche categories, and enhancing the medal event system. Advertising and other segments saw overall revenue decline due to Keepland's closure, yet advertising revenue remained stable with a significant gross margin improvement, and the K-MARS city running IP event performed strongly - Online sports event business revenue contracted, primarily due to insufficient scheduling of top-tier IP events[16] - The company optimized event business processes, focused on niche categories like ACG and gaming, and enhanced the medal event operating system[16] - Overall revenue for the advertising and other segments decreased year-on-year, mainly due to the gradual closure of Keepland operations, but advertising revenue remained stable year-on-year[17] - Gross profit margin for the advertising and other segments increased by 34.7 percentage points, primarily benefiting from optimized advertising business costs and the positive impact of Keepland's closure[17] - The advertising business focused on building the K-MARS city running IP event, achieving increases in both advertiser industry coverage and average customer transaction value[17] Consumer Goods Business Facing consumer recovery pressure and intensified industry competition, Keep's consumer goods business drove profitability improvement through structural optimization. Revenue for the period was approximately RMB 400 million, with gross profit margin increasing by 3.3 percentage points year-on-year to 34.8%, primarily due to category structure optimization, refined channel operations, and supply chain efficiency improvements - Consumer goods business revenue was approximately RMB 400 million, with gross profit margin increasing by 3.3 percentage points year-on-year to 34.8%[19] - Category structure optimization: actively scaled back low-margin businesses (e.g., large home fitness equipment) and developed high-potential categories such as equipment, apparel, and wearables[19] - Refined channel operations: established a 'category-channel' profit and loss analysis model, focusing on improving operational capabilities on third-party e-commerce platforms like Tmall and Douyin[19] - Supply chain efficiency: core categories leveraged economies of scale and engineering cost reduction to deepen supply chain integration efficiency[20] Category Structure Optimization The company actively scaled back low-margin businesses in consumer goods, shifting to high-potential categories. Equipment business contributed over 50% of revenue, enhancing competitiveness through differentiated positioning and product iteration. Apparel focused on aesthetic design, constructing all-season development capabilities. Smart wearables evolved around vertical scenarios, strengthening software differentiation. Food business advanced health-oriented product iteration and improved supply chain efficiency - Equipment business revenue contribution increased to over 50%, enhancing competitiveness through differentiated product positioning, classic product iteration, and filling missing categories[19] - Apparel business improved merchandise operational capabilities, focusing on aesthetic design and building all-season product development capabilities[19] - Smart wearables continued to evolve around vertical scenarios, with watches focusing on advanced runner needs and bands expanding to interest-based sports users[19] Refined Channel Operations and Supply Chain Efficiency The company refined operations on third-party e-commerce platforms like Tmall and Douyin, and expanded distribution channels by building a 'category-channel' profit and loss analysis model to increase the share of high-potential emerging channels. Concurrently, it deepened supply chain integration efficiency through scale and engineering cost reductions, optimizing core category costs and enhancing overall operational efficiency and profitability - Established a 'category-channel' horizontal and vertical profit and loss analysis model, focusing on improving operational capabilities on third-party e-commerce platforms like Tmall and Douyin, and enhancing marketing efficiency[19] - Core categories leveraged economies of scale and engineering cost reduction to deepen supply chain integration efficiency[20] Future Outlook For H2 2025, the company will simultaneously advance gross margin improvement and operational efficiency optimization strategies, and while ensuring profitability, seize key marketing windows to enhance product exposure and drive business scale recovery. This includes continuous iteration of AI coach core capabilities, enhancing consumer product strength, and focusing on AI-driven motion tracking, real-time health monitoring, and other innovative technologies through self-development and fund investments for long-term sustainable growth - In H2 2025, the company will simultaneously advance strategies for gross margin improvement and operational efficiency optimization, and while ensuring profitability, enhance product exposure to drive business scale recovery[21] - Continuously iterate AI coach core capabilities and strengthen exposure at key nodes to attract user return[21] - Enhance consumer goods business product strength, driving scale growth through precise channel expansion and increased volume in high-potential categories[21] - Smart wearables business will focus on long-term innovation in sports science and breakthroughs in next-generation products around AI, paying attention to AI-driven motion tracking, real-time health monitoring, and personalized training and other innovative technologies[22] Financial Review Revenue For the six months ended June 30, 2025, total revenue was RMB 821.8 million, a year-on-year decrease of 20.8%, primarily due to reduced revenue from self-branded sports products and online membership and paid content, linked to the company's active streamlining of inefficient categories and decreased online sports event revenue | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 396,650 | 501,477 | (20.9) | | Online Membership and Paid Content | 337,122 | 436,996 | (22.9) | | Advertising and Other | 87,980 | 98,870 | (11.0) | | Total | 821,752 | 1,037,343 | (20.8) | - Revenue from self-branded sports products decreased by 20.9%, primarily due to the active streamlining of inefficient categories[23] - Revenue from online membership and paid content decreased by 22.9%, mainly due to reduced online sports event revenue[24] - Advertising and other revenue decreased by 11.0%, primarily due to the gradual closure of Keepland operations in 2024, but advertising revenue remained stable year-on-year[24] Cost of Sales For the six months ended June 30, 2025, cost of sales was RMB 392.7 million, a year-on-year decrease of 29.9%, consistent with the revenue trend. Costs across all business segments significantly declined, primarily benefiting from lower inventory sales costs, supply chain optimization, reduced online sports event costs, and cost savings from Keepland's closure | Cost Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 258,653 | 343,301 | (24.7) | | Online Membership and Paid Content | 96,609 | 140,368 | (31.2) | | Advertising and Other | 37,410 | 76,352 | (51.0) | | Total | 392,672 | 560,021 | (29.9) | - Cost of self-branded sports products decreased by 24.7%, primarily due to lower inventory sales costs and supply chain optimization[27] - Cost of online membership and paid content decreased by 31.2%, mainly attributable to reduced online sports event costs and channel expenses[28] - Cost of advertising and other decreased by 51.0%, mainly attributable to optimized advertising production costs and reduced costs related to Keepland's closure[28] Gross Profit and Gross Profit Margin Despite a 10.1% decrease in total gross profit due to reduced revenue, the total gross profit margin significantly increased by 6.2 percentage points to 52.2%, primarily benefiting from business structure and related cost optimization. Gross profit margins improved across all business segments, with the advertising and other segment showing the largest increase - Gross profit was RMB 429.1 million, a year-on-year decrease of 10.1%[29] - Gross profit margin was 52.2%, an increase of 6.2 percentage points from the prior year period, primarily due to business structure and related cost optimization[29] - Gross profit margin for self-branded sports products increased by 3.3 percentage points to 34.8%[29] - Gross profit margin for online membership and paid content increased by 3.4 percentage points to 71.3%[30] - Gross profit margin for advertising and other increased by 34.7 percentage points to 57.5%[30] Operating Expenses During the reporting period, all operating expenses decreased. Fulfillment expenses, selling and marketing expenses, administrative expenses, and research and development expenses decreased by 29.3%, 30.9%, 8.5% and 17.0% respectively, primarily due to reduced sales, optimized promotion efficiency, lower professional fees, and increased labor productivity from AI technology enhancements - Fulfillment expenses were RMB 43.8 million, a year-on-year decrease of 29.3%, primarily due to reduced sales of self-branded sports products and online sports events, as well as optimized logistics and warehousing expenses[31] - Selling and marketing expenses were RMB 223.5 million, a year-on-year decrease of 30.9%, primarily benefiting from optimized promotion efficiency, with brand and marketing promotion expenses decreasing by RMB 102.8 million[32] - Administrative expenses were RMB 82.8 million, a year-on-year decrease of 8.5%, primarily due to reduced professional fees, partially offset by an increase in share-based compensation expenses[33] - Research and development expenses were RMB 162.4 million, a year-on-year decrease of 17.0%, primarily due to reduced R&D personnel costs and increased labor productivity from AI technology enhancements[34] Loss/Profit for the Period For the six months ended June 30, 2025, the company's loss significantly narrowed to RMB 35.4 million, a 78.3% reduction from RMB 163.4 million in the prior year period. After adjustments, the company achieved a net profit of RMB 10.3 million, successfully turning around losses, primarily due to increased gross profit margin and reduced operating expenses - Loss for the period was RMB 35.4 million, a 78.3% decrease from RMB 163.4 million in the prior year period[35] - Adjusted net profit (non-IFRS measure) was RMB 10.3 million, compared to an adjusted net loss of RMB 160.7 million in the prior year period, achieving a turnaround to profitability[35] Non-IFRS Measures The company uses adjusted net profit/(loss) as an additional financial measure to supplement IFRS-presented consolidated financial information. This metric is defined as loss for the period excluding share-based compensation expenses, as it does not involve cash outflow, helping investors more clearly assess operating performance - Adjusted net profit/(loss) is defined as loss for the period, excluding share-based compensation expenses, as it does not involve cash outflow[36] Adjusted Net Profit/(Loss) for the Period (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (35,429) | (163,353) | | Share-based Compensation Expenses | 45,776 | 2,663 | | Adjusted Net Profit/(Loss) for the Period | 10,347 | (160,690) | Liquidity and Capital Resources Total Available Funds As of June 30, 2025, the company's total available funds were RMB 1 billion, a decrease from RMB 1.2 billion as of December 31, 2024. Available funds primarily include cash and cash equivalents, short-term time deposits, restricted bank deposits, and short-term investments, mostly denominated in USD and RMB - As of June 30, 2025, total available funds were RMB 1 billion, compared to RMB 1.2 billion as of December 31, 2024[39] - Total available funds include cash and cash equivalents, short-term time deposits, restricted bank deposits, and short-term investments[39] Cash and Cash Equivalents As of June 30, 2025, the company's cash and cash equivalents were RMB 534.0 million, a decrease from RMB 764.3 million as of December 31, 2024, primarily due to investments in financial assets and cash used in operating activities - As of June 30, 2025, cash and cash equivalents were RMB 534.0 million, compared to RMB 764.3 million as of December 31, 2024[39] - The decrease in cash and cash equivalents was primarily due to investments in financial assets and cash used in operating activities[39] Other Financial Information Material Investments As of June 30, 2025, the company held no material investments representing 5% or more of the Group's total assets - As of June 30, 2025, the company held no material investments representing 5% or more of the Group's total assets[40] Material Acquisitions and/or Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the company did not undertake any material acquisitions and/or disposals of subsidiaries, associates, and joint ventures - During the reporting period, the company did not undertake any material acquisitions and/or disposals of subsidiaries, associates, and joint ventures[41] Future Plans for Material Investments and Capital Assets As of the date of this announcement, the company has no other specific future plans for material investments and capital assets - As of the date of this announcement, the company has no other specific future plans for material investments and capital assets[42] Employees and Remuneration As of June 30, 2025, the company had 669 full-time employees. Total employee benefit expenses were RMB 270.2 million, a decrease from the prior year period. The company offers competitive remuneration and benefits, along with comprehensive career development and talent cultivation systems - As of June 30, 2025, the number of full-time employees was 669[43] - Total employee benefit expenses were RMB 270.2 million, a decrease from RMB 282.0 million in the prior year period[43] Bank Borrowings and Gearing Ratio As of June 30, 2025, the company had no outstanding bank borrowings. The gearing ratio improved to 0.25 from 0.29 as of December 31, 2024, indicating a more robust financial structure - As of June 30, 2025, the company had no outstanding bank borrowings[44] - The gearing ratio was 0.25, an improvement from 0.29 as of December 31, 2024[44] Contingent Liabilities As of June 30, 2025, the company had no material contingent liabilities or guarantees - As of June 30, 2025, the company had no material contingent liabilities or guarantees[45] Pledge of Assets As of June 30, 2025, the company had no material pledge of assets - As of June 30, 2025, the company had no material pledge of assets[46] Interest Rate Risk and Foreign Exchange Risk The company's exposure to interest rate risk and foreign exchange risk is not material, primarily because it holds no significant assets or liabilities accounted for at floating rates, most transactions are settled in RMB, and financial assets and liabilities are mainly composed of fixed-rate instruments - The company's interest rate risk is not material, primarily because it holds no significant assets or liabilities accounted for at floating rates[47] - The company's foreign exchange risk is not material, primarily because most transactions are settled in RMB, and it holds no significant financial assets or liabilities denominated in currencies other than its functional currency[47] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company reported revenue of RMB 821.8 million and gross profit of RMB 429.1 million. Operating loss significantly narrowed to RMB 42.4 million, with loss for the period at RMB 35.4 million, and basic and diluted loss per share both at RMB 0.08 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 821,752 | 1,037,343 | | Cost of Sales | (392,672) | (560,021) | | Gross Profit | 429,080 | 477,322 | | Operating Loss | (42,353) | (187,816) | | Loss Before Income Tax | (35,429) | (163,353) | | Loss for the Period Attributable to Owners of the Company | (35,429) | (163,353) | | Basic Loss Per Share (RMB) | (0.08) | (0.35) | | Diluted Loss Per Share (RMB) | (0.08) | (0.35) | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company's loss for the period was RMB 35.4 million. Other comprehensive expenses primarily included currency translation differences of RMB 2.8 million, resulting in a total comprehensive expense for the period attributable to owners of the company of RMB 38.2 million, a significant narrowing from the prior year period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (35,429) | (163,353) | | Currency Translation Differences | (2,787) | 7,518 | | Total Comprehensive Expense for the Period Attributable to Owners of the Company | (38,216) | (155,835) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were RMB 1.7946 billion, a decrease from RMB 1.9058 billion as of December 31, 2024. Total equity was RMB 1.3503 billion, and total liabilities were RMB 444.3 million, maintaining a robust asset and liability structure | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 263,259 | 169,867 | | Current Assets | 1,531,378 | 1,735,935 | | Total Assets | 1,794,637 | 1,905,802 | | Equity | | | | Total Equity | 1,350,331 | 1,355,802 | | Liabilities | | | | Non-current Liabilities | 8,334 | 23,101 | | Current Liabilities | 435,972 | 526,899 | | Total Liabilities | 444,306 | 550,000 | | Total Equity and Liabilities | 1,794,637 | 1,905,802 | Notes to the Condensed Consolidated Interim Financial Information General Information Keep Inc. was incorporated in the Cayman Islands on April 21, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2023. The company and its subsidiaries primarily operate an integrated online and offline fitness service platform and online retail of fitness-related products in China, with Mr. Wang Ning as the single largest shareholder - Keep Inc. was incorporated in the Cayman Islands on April 21, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2023[52] - The company primarily operates an integrated online and offline fitness service platform and online retail of fitness-related products in China[52] - Mr. Wang Ning is the single largest shareholder of the company[53] Basis of Preparation The unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, was prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules, consistent with accounting policies used for the consolidated financial statements for the year ended December 31, 2024 - The unaudited condensed consolidated interim financial information was prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules[55] - The accounting policies adopted are consistent with those used for the consolidated financial statements for the year ended December 31, 2024[55] Adoption of New and Revised IFRS Accounting Standards The Group first applied IAS 21 (Amendment) 'Lack of Exchangeability' from January 1, 2025, but did not change its accounting policies or make retrospective adjustments as a result - The Group first applied IAS 21 (Amendment) 'Lack of Exchangeability' from January 1, 2025[56] - The Group did not change its accounting policies or make retrospective adjustments as a result of adopting the above revised standard[56] Segment Information The company's chief operating decision-maker assesses the performance of three operating segments based on revenue and gross profit: self-branded sports products, online membership and paid content, and advertising and other. During the reporting period, revenue and gross profit varied across segments, with no material inter-segment sales, and the vast majority of operations and non-current assets are located in China - The company's operating segments include: self-branded sports products, online membership and paid content, and advertising and other[57][60] - The chief operating decision-maker primarily assesses the performance of operating segments based on their revenue and gross profit[57] Segment Results for the Six Months Ended June 30, 2025 (RMB thousands) | Segment | Revenue | Cost of Sales | Gross Profit | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 396,650 | (258,653) | 137,997 | | Online Membership and Paid Content | 337,122 | (96,609) | 240,513 | | Advertising and Other | 87,980 | (37,410) | 50,570 | | Total | 821,752 | (392,672) | 429,080 | Segment Results for the Six Months Ended June 30, 2024 (RMB thousands) | Segment | Revenue | Cost of Sales | Gross Profit | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 501,477 | (343,301) | 158,176 | | Online Membership and Paid Content | 436,996 | (140,368) | 296,628 | | Advertising and Other | 98,870 | (76,352) | 22,518 | | Total | 1,037,343 | (560,021) | 477,322 | Revenue For the six months ended June 30, 2025, total revenue was RMB 821.8 million. Revenue breakdown shows online retail and wholesale channel sales constitute self-branded sports product revenue, with online membership and paid content, and advertising and other as the other two major revenue sources | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Self-branded Sports Products | | | | – Online Retail | 230,142 | 337,647 | | – Wholesale Channel Sales | 166,508 | 163,830 | | Online Membership and Paid Content | 337,122 | 436,996 | | Advertising and Other | 87,980 | 98,870 | | Total | 821,752 | 1,037,343 | Net Other Income For the six months ended June 30, 2025, net other income was RMB 13.4 million, a significant increase from RMB 2.5 million in the prior year period, primarily due to a substantial increase in net fair value gains on financial assets measured at fair value through profit or loss | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Loss on Disposal of Property and Equipment | (98) | (877) | | Net Fair Value Gains on Financial Assets Measured at Fair Value Through Profit or Loss | 12,127 | 4,266 | | Net Foreign Exchange Gains/(Losses) | 352 | (775) | | Investment Income from Financial Assets Measured at Amortized Cost | 170 | 334 | | Other | 835 | (417) | | Total | 13,386 | 2,531 | Income Tax Expense For the six months ended June 30, 2025 and 2024, the company made no provision for PRC corporate income tax, Hong Kong profits tax, and Singapore corporate income tax, primarily due to no estimated taxable profits or available unused tax losses to offset - For the six months ended June 30, 2025 and 2024, no provision was made for PRC corporate income tax, Hong Kong profits tax, and Singapore corporate income tax[64] - The reason for no provision was the absence of estimated taxable profits or available unused tax losses to offset[64] Loss for the Period The Group's loss for the period was RMB 35.4 million, primarily derived after deducting items such as employee benefit expenses, cost of sales of self-branded sports products, online sports event costs, depreciation and amortization, credit loss provisions, and inventory impairment provisions | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 270,215 | 282,011 | | Cost of Sales of Self-branded Sports Products | 253,414 | 329,503 | | Online Sports Event Costs | 45,477 | 70,920 | | Depreciation of Property and Equipment | 4,235 | 5,685 | | Depreciation of Right-of-Use Assets | 8,945 | 16,637 | | Amortization of Intangible Assets | 1,328 | 1,938 | | Provision for Credit Losses on Trade and Other Receivables | 841 | 449 | | Provision for Impairment of Inventories | 312 | 5,989 | Loss Per Share For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.08, a significant narrowing from RMB 0.35 in the prior year period. As the company incurred a loss, potential ordinary shares had an anti-dilutive effect, resulting in identical basic and diluted loss per share amounts | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Owners of the Company (RMB thousands) | (35,429) | (163,353) | | Weighted Average Number of Ordinary Shares in Issue (thousands of shares) | 459,558 | 469,109 | | Basic Loss Per Share (RMB) | (0.08) | (0.35) | - As the company incurred a loss during the reporting period, potential ordinary shares had an anti-dilutive effect, thus the diluted loss per share amount was the same as the basic loss per share amount[68] Trade and Bills Receivables As of June 30, 2025, trade and bills receivables totaled RMB 217.0 million. The credit period for trade receivables is generally three months, and the provision for credit losses decreased, reflecting improved trade receivables management Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 238,819 | 237,178 | | Bills Receivables | 1,600 | – | | Less: Provision for Credit Losses | (23,403) | (31,987) | | Total | 217,016 | 205,191 | - The credit period for trade receivables is generally three months[70] Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 189,405 | 158,405 | | 3 to 6 Months | 17,581 | 23,403 | | 6 to 9 Months | 4,192 | 11,903 | | 9 Months to 1 Year | 3,117 | 2,172 | | Over 1 Year | 24,524 | 41,295 | | Total | 238,819 | 237,178 | - The provision for credit losses decreased from RMB 31,987 thousand as of December 31, 2024, to RMB 23,403 thousand as of June 30, 2025[70] Dividends For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends - For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends[71] Trade Payables As of June 30, 2025, trade payables were RMB 156.5 million, primarily for amounts due within three months. Trade payables are unsecured and typically settled within three months from the invoice date Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 156,549 | 149,240 | - Trade payables are unsecured and generally settled within three months from the invoice date[72] Events After the Reporting Period No material events occurred after June 30, 2025, for the company or the Group - No material events occurred after June 30, 2025, for the company or the Group[73] Corporate Governance and Other Information Compliance with Corporate Governance Code The company adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the reporting period, except for the deviation where the roles of Chairman and Chief Executive Officer are combined - The company adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[74] - During the reporting period, the company complied with all applicable code provisions of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Wang Ning[74][75] Chairman and Chief Executive Officer Mr. Wang Ning currently holds both the Chairman and Chief Executive Officer positions. The Board believes this arrangement ensures consistent leadership within the Group, enhances strategic planning efficiency, and does not compromise the balance of power and authority - Mr. Wang Ning currently holds both the Chairman and Chief Executive Officer positions, deviating from Code Provision C.2.1 of the Corporate Governance Code[75] - The Board believes that combining these roles ensures consistent leadership within the Group, making overall strategic planning more effective and efficient[75] Standard Code for Securities Transactions by Directors of Listed Issuers The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' dealings in company securities. Upon enquiry, all directors confirmed strict compliance with the Standard Code during the reporting period - The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules[76] - All directors confirmed strict compliance with the required standards set out in the Standard Code during the reporting period[76] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, the company repurchased a total of 3,207,500 shares on the Stock Exchange for a total consideration of HKD 14,805,147, aiming to benefit the company and create shareholder value. As of June 30, 2025, the company held 11,235,400 treasury shares and 3,510,600 repurchased shares pending cancellation - During the reporting period, the company repurchased a total of 3,207,500 shares on the Stock Exchange for a total consideration of HKD 14,805,147[77] Share Repurchases on the Stock Exchange | Month of Repurchase | Number of Shares Repurchased | Price Paid Per Share (Highest/Lowest HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | January 2025 | 1,300,000 | 5.66 / 4.65 | 6,447,178 | | March 2025 | 207,700 | 4.71 / 4.56 | 968,952 | | April 2025 | 1,078,800 | 4.98 / 3.76 | 4,673,227 | | May 2025 | 621,000 | 4.75 / 3.83 | 2,715,790 | | Total | 3,207,500 | | 14,805,147 | - As of June 30, 2025, 11,235,400 shares of the company were held as treasury shares by the company, and 3,510,600 repurchased shares of the company were pending cancellation[78] Audit Committee The company's Audit Committee comprises three independent non-executive directors, with Ms. Ge Xin as Chairwoman. Its primary responsibilities include reviewing and overseeing financial reporting processes, internal control systems, and connected transactions, and it has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors, with Ms. Ge Xin as Chairwoman[79] - The primary responsibilities of the Audit Committee include reviewing and overseeing the Group's financial reporting processes and internal control systems, and reviewing and approving connected transactions[79] - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, and agreed with the accounting treatments adopted by the company[79] Other Information Independent External Auditor The company's independent external auditor, RSM Hong Kong, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 - The independent external auditor, RSM Hong Kong, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[80] Material Events After Reporting Period The company is not aware of any material events that occurred from June 30, 2025, up to the date of this announcement that could affect the Group - The company is not aware of any material events that occurred from June 30, 2025, up to the date of this announcement that could affect the Group[81] Use of Proceeds The net proceeds from the company's share listing, approximately HKD 192.0 million, have been and will continue to be used for the purposes stated in the prospectus, with no change in the intended use. Unutilized proceeds will be held as short-term deposits, cash, and cash equivalents with licensed banks or financial institutions - The net proceeds from the global offering, approximately HKD 192.0 million, have been and will continue to be used for the purposes stated in the prospectus[82] - As of the date of this announcement, there has been no change in the intended use of the net proceeds[82] Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[83] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the Stock Exchange website and the company's website. The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement has been published on the Stock Exchange website www.hkexnews.hk and the company's website https://keep.com[84](index=84&type=chunk) Acknowledgement The Board extends its sincere gratitude to the Group's shareholders, management team, employees, business partners, and customers for their support and contributions to the Group - The Board extends its sincere gratitude to the Group's shareholders, management team, employees, business partners, and customers[85] Board of Directors As of the date of this announcement, the company's executive directors are Mr. Wang Ning, Mr. Peng Wei, and Mr. Liu Dong; independent non-executive directors are Ms. Ge Xin, Mr. Shan Yigang, and Mr. Wang Haining - The executive directors are Mr. Wang Ning, Mr. Peng Wei, and Mr. Liu Dong; independent non-executive directors are Ms. Ge Xin, Mr. Shan Yigang, and Mr. Wang Haining[87]