Keep through HKEx hearing: Q1 revenue of 447 million yuan in 2023, three consecutive years of growth

On the evening of June 21, the latest news from the HKEx shows that Keep, a sports technology platform, has been heard by the HKEx and intends to enter the Hong Kong main board market.

According to the latest prospectus, Keep's revenue in the first quarter of 2023 reached 447 million yuan, up 7.2 percent from 417 million yuan in the same period in 2022. The prospectus explained that the main reason for the increase in revenue was the increase in revenue from virtual sports events.

The prospectus shows that Keep's revenue has continued to grow steadily. In 2022, Keep's annual revenue was 2.212 billion yuan, an increase of 36.6% from 1.619 billion yuan in 2021.

According to the prospectus, Keep's revenue mainly consists of own-brand fitness products (consumer goods), member subscriptions and online paid content, advertising and other three parts. Among them, private-brand fitness products achieved 1.137 billion yuan in revenue in 2022, accounting for 51.4% of the revenue, an increase of 30.3% over the 872 million yuan in 2021.

Member subscriptions and online paid content are the second largest revenue point of Keep. In 2022, revenue increased by 60.4% from 558 million yuan in 2021 to 894 million yuan, accounting for 40.4% of the total revenue for the whole year.

It is worth noting that Keep's net loss narrowed continuously due to a decrease in brand and marketing and other related expenses and an increase in gross profit. The adjusted net loss (measured by non-IFRS) in the first quarter of 2023 was 118 million yuan, compared with a loss of 155 million in the same period in 2022. In 2022, under non-IFRS measures, the adjusted loss of Keep was 667 million yuan, compared with 827 million yuan in the same period in 2021.