On July 12, 2023, Beijing-based Beijing Calorie Technology Co., Ltd (hereinafter referred to as "Keep") was officially listed on the Hong Kong Stock Exchange (HKEx) under the stock code "3650" at an offering price of HKD 28.92 per share.
CICC（Chinese：中金公司）is the sponsor of Keep's listing. The Company has entered into a cornerstone investment agreement with cornerstone investors Fenda Technology（Chinese: 奋达科技）, Fuqing Shengde（Chinese：福清胜德）, and EvereSports（Chinese：群鑫机械）, in which the cornerstone investors have agreed to subscribe for a total of HKD 76.54 million of the Offer Shares. By the end of the day, Keep reported HKD 29, up 0.28%, with a total market capitalization of more than HKD 15.2 billion (about USD 1.941 billion).
The prospectus shows that 35% of the proceeds of Keep fundraising in the next three years will be used for research and development to enhance technological capabilities and promote product innovation; 30% for fitness content development and diversification; 25% for brand publicity and promotion; 10% for general corporate purposes and working capital needs.
Founded in 2014, Keep is the largest company in the domestic sports technology track with the most revenue.Keep centers around the family sports scene, providing users with one-stop sports solutions.Keep has 300 million registered users in China, 36.4 million active users, and is ranked No. 1 in the health and medical category in iOS China. On the financial side, from 2019-2022, Keep realized revenues of CNY 663 million, CNY 1.107 billion, CNY 1.620 billion, and CNY 2.21 billion, respectively; the adjusted loss for the same period was CNY 366 million, CNY 1.064 billion, CNY 827 million, and CNY 1.067 billion, respectively. Industry insiders said that how to find a balance between marketing spending and building sustainable competitiveness of the business is a top priority for Keep after its IPO.2023 In the first quarter, Keep realized revenue of CNY 447 million, up 7.2% year-on-year.
In terms of commercialization, Keep's revenue consists of three main segments: membership subscriptions and online payments, private label products, and advertising and other services. Among them, private label products are the big head of revenue, including smart fitness equipment, fitness gear, apparel, food, and other goods. The revenue share of Keep's private-label sports products will exceed 50% in both 2020-2022.
In terms of globalization, Keep officially entered the overseas market in early 2018, launching two products, Keep Trainer and Keep Yoga, which was distributed to more than 180 countries in less than a year. In December of the same year, the international version of Keep was awarded the best self-improvement app of the year 2018 by Google Play in multiple regions. Keep has signed cooperation agreements with Garmin and other international sports smart equipment companies to achieve fitness data interoperability, thus enabling users to manage sports performance through visualized data and achieve a smarter and more efficient technological sports experience.
Wang Ning, founder, and CEO of Keep, said in his speech at the listing ceremony that under the guidance of the national strategy of "Healthy China", Keep has been able to make rapid growth and progress. "In the future, Keep will stand on a broader stage to meet more new challenges, and continue to adhere to the mission of making the world move and encouraging people to explore more possibilities in life through sports."
In this field, representative Chinese companies include HotBody（Chinese：火辣健身） and Fittime（Chinese：睿健时代）; internationally, APPs such as Peloton, Nike Training Club, and Fitbit offer similar fitness functions.