#China #Beijing #2024 earnings #Keep Inc. #online fitness

Keep Inc. Reports Annual Earnings for 2024

On March 28, 2025, Keep Inc., recognized as China’s largest online fitness platform, released its audited annual results for 2024. The findings reveal a mixed performance in revenue generation but underline significant operational shifts intended for future growth.

Financial Overview

The company reported total revenues of RMB 2,065.7 million for 2024, reflecting a decrease of 3.4% compared to RMB 2,137.8 million in 2023. This decline is primarily attributed to decreased revenues from online memberships and paid content. However, Keep's self-branded fitness products saw a slight increase, growing by 0.8% to RMB 953.9 million as consumers showed renewed interest in fitness gear and apparel.

Despite the dip in total revenue, Keep managed to improve its gross profit margin to 46.7%, a 1.7 percentage point increase from 2023, primarily driven by cost containment measures and optimizations in its product offerings. The reported gross profit stood at RMB 965.4 million, marking a modest rise of 0.4% from the previous year. However, the adjusted net loss for 2024 was substantial at RMB 469.6 million, compared to RMB 295.4 million in the previous year.

Operational Metrics

In terms of user engagement, Keep reported an increase in average monthly active users (MAUs), which grew to 29,921 thousand, a stable rise from the previous year. Nonetheless, average monthly revenues per MAU dropped from 6.0 RMB to 5.8 RMB, alongside a decrease in average monthly subscribing members to 3,162 thousand from 3,193 thousand. This slight decline indicates a need for Keep to revitalize its membership value propositions in an increasingly competitive market.

CEO Mr. Wang Ning expressed optimism moving into 2024, highlighting an upsurge in fitness enthusiasm, partially fueled by the Summer Olympic Games. He mentioned the strategic overhaul Keep has undertaken, realigning its mission to "Fuel every workout, keep the neighborhood energetic," and emphasized their commitment to AI integration within the fitness ecosystem. This will enhance personalized user experiences, adapt to user data, and drive growth in new technology sectors.

Strategic Investments

Keep Inc. has earmarked substantial resources towards expanding their operational capabilities, particularly in AI and data analytics. The company sees these investments as crucial for establishing a robust competitive advantage over rivals in both content-driven and data-driven frameworks.

In 2024, Keep also executed some operational optimizations that led to a 21.2% decrease in fulfillment expenses, from RMB 155.7 million in 2023 to RMB 122.6 million. This improvement is a testament to their effective cost management strategies, enhancing overall operational efficiency.

However, advertising and marketing expenses rose sharply to RMB 757.9 million, an increase of 33.1%, reiterating Keep's commitment to fortifying its brand presence and user engagement through enhanced promotional efforts.

Conclusions and Future Outlook

Despite the challenges reflected in the financials, Keep Inc.'s strategic adaptations may pave the way for future stabilization and growth. The commitment to harnessing AI technology represents an exciting potential shift in how Keep interacts with its user base—their transition from a primarily content-focused model towards a more data-centric approach could open up new opportunities in user interaction and service personalization.

In looking towards 2025, Keep is poised to navigate the evolving fitness landscape while maintaining a focus on creating sustainable value for shareholders. With a cash balance of RMB 1.2 billion, the company appears equipped to execute its long-term strategies effectively.

For stakeholders and fitness enthusiasts alike, Keep's proactive steps towards optimization, profitability, and innovation are key indicators of its future direction in the competitive online fitness sector.