Keep, Inc., which has been tagged as the largest online fitness platform in China, reported in the first half of 2024 that total revenues were RMB 1,037.3 million for the six months ended June 30, 2024, a 5.4 percent increase from RMB 984.7 million for the six months ended June 30, 2023. The company said this was due primarily to increased revenues from self-branded fitness products and advertising, among other sources.

  • Revenues from self-branded fitness products were RMB 501.5 million for the first half, representing a 7.5 percent increase from RMB 466.4 million for the first half of 2023. This increase was mainly attributed to the rise in wholesale channel sales and increased fitness gear and apparel product sales.
  • Revenues from online membership and paid content were RMB 437.0 million for the first half, representing a 2.6 percent decrease from RMB 448.9 million in the first half of 2023. This decrease was primarily due to a decrease in revenues from virtual sports events, which was partially offset by the increased revenues from online membership.
  • Revenues from advertising and other services were RMB 98.9 million for the first half, representing a substantial increase of 42.4 percent from RMB 69.4 million in the first half of 2023, primarily attributable to online-to-offline integrated advertising services.

Keep, Inc. trades and reports in the yuan, the Chinese renminbi (RMB) currency.

Gross profit was RMB 477.3 million for the six months ended June 30, 2024, a 12.7 percent increase from RMB 423.7 million for the six months ended June 30, 2023. Gross profit margin was 46.0 percent of sales in the first half, compared to 43.0 percent in the year-ago first-half period.

  • Gross profit margin was 46.0 percent for the first half, representing a 3.0 percentage point increase from 43.0 percent in the first half of 2023. This increase is mainly attributable to an increase in gross profit margin from online membership, paid content, and self-branded fitness products.
  • Gross profit of self-branded fitness products increased by 21.6 percent from RMB 130.1 million in the first half of 2023 to RMB 158.2 million for the first half of 2024, mainly attributable to the increase in the sales of self-branded fitness products and improvement in gross profit margin.
  • Gross profit from online membership and paid content increased by 10.1 percent from RMB 269.4 million in the first half of 2023 to RMB 296.6 million for the first half of 2024, as the company said it generated higher sales from membership subscriptions with optimized content-related costs.
  • Gross profit of advertising and others decreased by 6.7 percent from RMB 24.1 million in the first half of 2023 to RMB 22.5 million for the first half of 2024, primarily due to the relatively higher cost of certain offline advertising activities.

The company’s net loss was RMB 163.4 million for the six months ended June 30, compared with a net profit of RMB 1.2 billion for the six months ended June 30, 2023, primarily due to fair value changes of convertible redeemable preferred shares at the time.

  • Adjusted net loss amounted to RMB 160.7 million for the first half, compared to RMB 223.1 million for the first half of 2023. Adjusted net loss margin narrowed to 15.5 percent of revenue in the first half, compared with 22.7 percent for the six months ended June 30, 2023.

Outlook
Keep, Inc. said 2024 will mark a year of comprehensive upgrades for Keep platform with continued execution of the strategies. The company said it will continue to promote synchronized improvements in scale and efficiency. While overall consumer confidence is gradually recovering, the company recognizes opportunities and challenges.

Keep will reportedly continue to invest in several key areas:

  1. Enhance overall online offerings.
  2. Further explore the outdoor category by enriching member privileges, leveraging the value of fitness data and actively expanding its offline presence.
  3. Expand AI-driven overseas fitness app portfolio to deliver innovative fitness experiences.
  4. Promote the growth of self-branded fitness products.

In addition, Keep said it will continue to actively seek collaboration opportunities along the industry chain to increase commercial value across its ecosystem to ensure sustainable long-term development.

According to CIC (China Investment Fund), Keep, Inc. is the largest online fitness platform in China in terms of MAUs and the number of workout sessions completed by users in 2022.

Image courtesy Keep, Inc.