KEEP(03650) - 2023 - 年度业绩

Financial Performance - Total revenue for 2023 was RMB 2,137.8 million, a decrease of 3.3% compared to RMB 2,211.6 million in 2022[2] - Gross profit increased to RMB 961.6 million, up 6.8% from RMB 900.4 million in the previous year, resulting in a gross margin of 45.0%, an increase of 4.3 percentage points[2] - Adjusted net loss for 2023 was RMB 295.4 million, significantly reduced from RMB 666.9 million in 2022, with an adjusted net loss margin improving to (13.8%) from (30.2%) year-on-year[2] - The company reported a profit of RMB 1.1 billion for the year ended December 31, 2023, compared to a loss of RMB 104.6 million for the year ended December 31, 2022, mainly due to the fair value change of convertible redeemable preferred shares[28] - The net profit attributable to the company's owners for the year was RMB 1,105,908 thousand, a significant recovery from a loss of RMB 104,551 thousand in the previous year[35] - The company's profit for the year ended December 31, 2023, was RMB 1,105,908 thousand, compared to a loss of RMB (104,551) thousand for the year ended December 31, 2022, resulting in a basic earnings per share of RMB 3.78, up from a loss of RMB (0.76) per share[58] User Engagement and Membership - Average monthly active users (MAUs) decreased to 29.8 million in 2023 from 36.4 million in 2022, while average monthly subscribers fell to 3.2 million from 3.6 million[5] - Monthly average revenue per MAU increased by 17.6% year-on-year to RMB 6.0 in 2023, up from RMB 5.1 in 2022[7] - Membership penetration rate improved to 10.7% in 2023, compared to 10.0% in the previous year[5] - Member workout sessions grew by over 200% in 2023 compared to 2022, reflecting increased user engagement and satisfaction[8] - The introduction of outdoor courses is expected to enhance member retention and attract new users, contributing to improved member penetration rates and average monthly retention rates in 2023[9] Revenue Streams - 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[15] - Revenue from online membership and paid content increased by 11.4% to RMB 995.8 million, driven by growth in virtual sports events[16] - Advertising and other revenue increased by 8.6% to RMB 196.0 million, supported by enhanced online-to-offline integrated advertising services[16] - Revenue recognized at a point in time was RMB 976,837 thousand, while revenue recognized over time was RMB 1,160,997 thousand for the year ended December 31, 2023[50] Cost Management - Operating costs decreased by 10.3% to RMB 1,176.2 million, significantly outpacing the slight decline in revenue, indicating effective cost control measures[17] - Sales and marketing expenses decreased by 11.9% to RMB 569.3 million for the year ended December 31, 2023, down from RMB 646.2 million for the year ended December 31, 2022, primarily due to reduced promotional and advertising expenses[23] - Administrative expenses decreased by 14.8% to RMB 209.3 million for the year ended December 31, 2023, down from RMB 245.6 million for the year ended December 31, 2022, mainly due to a reduction in administrative personnel costs[24] - Research and development expenses decreased by 16.2% to RMB 449.7 million for the year ended December 31, 2023, down from RMB 536.9 million for the year ended December 31, 2022, primarily due to reductions in R&D personnel costs and cloud computing service fees[25] Product Development and Strategy - The company focused on optimizing products and services, enhancing operational efficiency, and implementing prudent cost control measures throughout 2023[6] - The strong performance of the virtual sports events business contributed to growth in online membership and paid content revenue, offsetting declines in fitness product revenue[6] - The company plans to continue refining and executing its core business strategy in 2024, aiming to empower users pursuing a healthy lifestyle[6] - The company launched several new products in 2023, including the C1 Mini+ smart bike and the A1 rowing machine, which received positive market feedback and improved gross margins through cost optimization[12] - Future focus includes investing in immersive online fitness content and expanding outdoor functionalities to enhance user engagement and retention[13] Financial Position and Assets - Cash and cash equivalents amounted to RMB 1.6 billion as of December 31, 2023, down from RMB 1.7 billion as of December 31, 2022, primarily due to cash used in operating activities[32] - The company had a total debt of RMB 575,592 thousand as of December 31, 2023, down from RMB 10,143,704 thousand in 2022, indicating a substantial reduction in liabilities[40] - The company maintained a debt-to-asset ratio of 0.24 as of December 31, 2023, a significant improvement from 3.85 in the previous year[34] - The company had 955 full-time employees as of December 31, 2023, a decrease from 1,243 employees in 2022, reflecting a reduction of approximately 23.2%[34] Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[66] - The independent auditor confirmed that the financial statements accurately reflect the company's financial position as of December 31, 2023[65] - The audit committee has reviewed the results of the investigations and considers the measures taken to be appropriate and sufficient[84] Future Plans and Investments - The company plans to allocate approximately HKD 67.2 million (35% of net proceeds) for R&D to enhance technical capabilities and drive product innovation by 2025[73] - The company will invest HKD 57.6 million (30% of net proceeds) in fitness content development and diversification by 2025[74] - The company plans to enhance its technical capabilities by investing HKD 19.2 million (10% of net proceeds) in AI, data analytics, and technical infrastructure[73] Marketing and Promotions - The company has engaged a law firm in Hong Kong to assist the audit committee in investigating marketing promotion transactions as of November 2023[78] - The company has terminated the marketing promotion agreement and refunded all payments made under it as of November 2023[80] - An independent investigation has been initiated to assess the commercial substance and impact of the marketing promotion agreements with Company A[81]