Chinese Fitness Platform Keep Updates HKEx Prospectus with Revenue 2022 Exceeds CNY 2.2 Bn

Consumer Discretionary Author: Xinyu Chen Editor: Yiru Qian Mar 29, 2023 03:29 PM (GMT+8)

The Chinese online fitness market is still a gold mine in the post-pandemic era.


Chinese online fitness platform Keep announced that the company's revenue grows from CNY 1.1 billion in 2020 to CNY 1.6 billion in 2021, up 46.3%, and further to CNY 2.21 billion in 2022, up 36.6% year-on-year. Measured in accordance with non-IFRS, the company's adjusted net loss is CNY 827 million and CNY 667 million in 2021 and 2022, respectively, according to its updated prospectus on the Hong Kong Stock Exchange on March 28.

This is Keep's second update of the prospectus following the submission and update last year, aiming for the first stock of fitness technology in Hong Kong.

The significant revenue growth is driven by growth in revenue from the company's branded sports products, membership subscriptions, and online paid content, per prospectus. Among them, Keep's own branded fitness products achieved revenue of CNY 1.137 billion in 2022, accounting for 51.4% of revenue, up 30.3% from CNY 872 million in 2021.

Membership subscription and online paid content are the company's second-largest revenue sector and the fastest-growing business. As China's largest online fitness platform, Keep achieved 36.4 million monthly active users as of 2022, compared with 34.4 million at the end of the previous year. In 2022, membership revenue increased by 60.4% to CNY 894 million, based on CNY 558 million in 2021, accounting for 40.4% of the total annual revenue.

The prospectus also states that to increase revenue and achieve profitability, the company plans to grow further and deepen user engagement, strengthen commercialization capabilities using multiple growth paths, and improve gross margins and operating leverage.

Keep was officially launched in 2015, providing sports and fitness users with one-stop solutions such as training courses, sports consumer products and customized training services. The company has formed a closed loop of online content, sports products (consumer products) and offline scenes.

According to a report from market consultancy CIC, the Chinese online fitness market accounts for 47.0% of the overall fitness market in China and is expected to account for 60.6% in 2026; the Chinese online fitness market is expected to grow from CNY 370.1 billion in 2021 to CNY 895.8 billion in 2026, at a CAGR of 19.3%, which indicates a promising industry growing trend.