Three years of loss of 6.1 billion, Keep's "blood flow is not only" again impacts the listing again

Radar finance produced | Meng Shuai editor | Shenhai

After submitting a prospectus to the Hong Kong Stock Exchange in February, Keep recently submitted the prospectus again to the listing procedure that has failed to "activation".

Since the official launch of the APP in February 2015, Keep users have grown rapidly in a few years. In the second quarter of this year, the average monthly survival of Keep reached 41.08 million, and revenue has steadily increased in the past three years.

However, behind the rising monthly and revenue, Keep has never been able to explore a road of profit for its own. From 2019 to the first quarter of this year, Keep's cumulative losses exceeded 6.1 billion yuan.

Keep, which continues to expand its business boundary, is currently the largest online fitness platform in China, but the challenges are still very severe. Keep not only needs to compete for users with traditional offline fitness, but also "fights" with many opponents in the field of online fitness platforms, selling fitness peripheral products, and many opponents in the field of live broadcast fitness.

Keep submits a prospectus to the Hong Kong Stock Exchange again

On September 6, the sports technology company Keep updated the prospectus to the Hong Kong Stock Exchange and initiated the sprint to the "Sports Technology First Stock" again. It is understood that the funds raised by Keep this IPO will be mainly used for research and development to improve technical capabilities and promote product innovation; for the development and diversification of fitness content; brand promotion and promotion, and general enterprise use and operating funds.

Radar Finance noticed that as early as February this year, Keep has launched an impact on Hong Kong stocks, but since the submitted prospectus was submitted on February 25, Keep did not pass the hearing of the Hong Kong Stock Exchange within 6 months. Therefore, Keep's IPO application status The failure, so Keep submitted a prospectus to the Hong Kong Stock Exchange on September 6 to restart the journey of impacting its listing.

In fact, as the leading brand of domestic fitness platforms, Keep has always been regarded as a powerful player who competes for "sports technology". According to data from the Burning Consultation Report, last year, the fitness people in my country reached 303 million, ranking first in the world. There are huge business opportunities hidden behind the huge number of fitness people. The keen capital smells the vast market in the fitness field, and naturally it will not let Keep the seed player.

Tianyancha shows that since November 2014, Keep has received eight rounds of financing, with a financing amount ranging from RMB 36 million to US $ 360 million. In January 2021, Keep has completed the last round of financing as of now. At that time, after KEEP completed the F -round financing, the valuation once exceeded 2 billion U.S. dollars. Compared with its $ 1 billion in round E financing in May 2020, it doubled.

It is worth mentioning that the investment institutions behind Keep are huge, and there are many star investment institutions such as SoftBank Vision Fund and Gaoming Capital. Among them, multiple investment institutions are very "loved" about Keep and have participated in Keep's financing many times. For example, Times Capital and Ventech China have participated in two rounds of financing of Keep. Ji Yuan Capital participated in the five rounds of financing of Keep, and BAI Capital participated in Keep's financing rounds of up to 6 times.

"Become the world's largest smart sports operator", this is the vision of Keep on its official website. In order to fulfill this dream, Keep has been doing various efforts and attempts. In the process, Keep has also been adjusted constantly With its own positioning and the company's business strategy.

In 2015, the Keep App was officially launched. With free fitness courses, Keep quickly captured many users. In March 2018, Keep was upgraded to sports technology ecological company, and released Keepland, Keep smart hardware and supporting fitness products at the same time. In September of the same year, Keep officially launched a member subscription model.

The following year, Keep launched KEEP smart dynamic bicycles, smart sports bracelets, and healthy light foods, extending its own business tentacles to multiple categories such as fitness -related practice. By June 2020, Keep set up a live broadcast boom, and launched an interactive live fitness class on the basis of its own structured fitness class.

In addition, KEEP also expands its business from online to offline gyms. In February this year, Keep announced the launch of the "Keep Optical Gallery" plan and intends to expand to 100 in 2022. It is worth mentioning that the plan is a cooperation between Keep and traditional gyms. Keep uses the gym venue, but only provides professional coaches and group lessons.

Radar Finance learned that with the continuous expansion of KEEP to its own business, the current Keep's revenue mainly comes from three sectors, which are members who subscribe to members and online payment content, their own brand sports products, advertisements and other services. Among them, their own own ownership. The revenue of brand sports products has contributed the greatest, accounting for more than half of all revenue. Members' subscriptions and online payment content sections contributed the secondary revenue, accounting for about 30 %.

More than three years of cumulative loss of 6.139 billion

After years of unremitting operation and development, the number of exercises completed by users and users monthly active users and users has now become the largest online fitness platform in China. Submitting the prospectus to the Hong Kong Stock Exchange, Keep has gradually emerged in recent years.

The prospectus shows that in 2019, 2020, and 2021, the average monthly active users of Keep were 21.77 million, 29.73 million, and 34.36 million, respectively. As of the six months of June 30, 2022, the average number of monthly active users of Keep reached 37.68 million, an increase of 13%compared with the same period in 2021, and in the second quarter of 2022, it reached an average monthly active user of 41.08 million. At the same time, the membership penetration rate of KEEP has also risen during the three years. The indicator rose from 3.5%in 2019 to 9.5%in 2021, an increase of 6 percentage points year -on -year. It also rose from 30.5 yuan in 2019 to 47.1 yuan in 2021.

Thanks to the continuous expansion of users, Keep's revenue has continued to rise in the past three years. The prospectus shows that from 2019 to 2021, Keep's revenue was 663 million yuan, 1.107 billion yuan, and 1.62 billion yuan, respectively, and the gross profit of Keep at the same time was 273 million yuan, 499 million yuan, and 677 million yuan.

But what makes Keep headache is that while the revenue is growing, the platform's monthly survival is rising, and the penetration rate of membership has risen year by year, Keep has never achieved profitability. The prospectus shows that in 2019, Keep's annual loss reached 735 million yuan, the annual loss of Keep the following year expanded to 2.244 billion yuan, and further expanded to 2.908 billion yuan in 2021. In the first three months of this year, although Keep's losses were narrowed compared to the same period last year, it still reached 252 million yuan.

Radar Finance statistics learned that in the three years and three months, the cumulative loss of Keep, which has not yet been listed, has exceeded 6.1 billion yuan. In this regard, Keep explained that this is because Keep is in a high -speed development stage, and through brand investment and high -quality sports content and product supply, strategic focus on expanding the user base and preparing for long -term profitability.

In addition, Keep's gross margin indicators are not stable. In 2019, Keep's gross profit margin was 41.1%, and the indicator of 2020 rose to 45.1%. However, in 2021, Keep's gross profit margin fell to 41.8%, close to the level of 2019.

One of the reasons that affects Keep's profit is the cost of continuously high in marketing promotion in marketing. The prospectus shows that in 2019 and 2020, Keep's expenses used for sales and marketing were 296 million yuan and 302 million yuan, respectively. In 2021, the expenditure soared to 956 million yuan. Keep mentioned in the prospectus that "strategically increased the expenditure of traffic acquisition and brand promotion to further acquire, activate and retain users."

However, under the huge marketing expenditure, Keep fell into a bottleneck in terms of membership. The prospectus shows that from 2019 to 2020, the monthly average membership retention rate of Keep was 70.8%, 73.3%, and 71.7%. In the first half of this year, the indicator further decreased to 69.4%, falling below the 70%mark that has been maintained for the past. Essence

Industry insiders pointed out that the platform in the early stage in exchange for user growth in the early stage is a commonly used routine for most Internet companies, but if it is always dependent on "smashing money" to maintain user growth, it is not a healthy business model. Therefore, Keep must find a benign in the future A sustainable strategy to achieve the purpose of attracting new users, retaining old users, and driving users, and build their own health profit model.

Online fitness track crowded

Why are more and more people fall in love with online fitness? Online fitness enthusiast A Liang (pseudonym) told radar Finance that compared with the traditional gym fitness, the threshold for online fitness is relatively low, and the cost is not as high as offline fitness. Therefore Selection. However, due to the limited hardware conditions of online fitness, there is also a shortage of online fitness. If it cannot be used as a gym, it is more professional and diverse fitness equipment.

So is online fitness still a good business? According to the data of the Burning Consultation Report, the proportion of the Japanese fitness market in my country in 2021 accounted for 47.0%of the overall domestic fitness market, and it is expected to rise to 60.6%in 2026. At the same time, last year, the size of the online fitness market, including online fitness members, online fitness equipment and other market segments, was about 370.1 billion yuan, and it is expected to reach 895.8 billion yuan in 2026.

The cake in the online fitness industry is large enough, but there are not a few players who are watching this cake. For example, in the field of fitness vertical, there are also players such as Xiaomi Movement, Yueqian, and Guru who intend to snatch the market with Keep, and the aforementioned online fitness brands are more than one million, and the highest monthly Xiaomi movement is even nearly 10 million.

Because Keep intervenes the market for fitness peripheral products, many sports brands and e -commerce platforms that sell smart bicycles, smart bracelets, weight scales, treadmills, yoga mats and other fitness equipment and fitness clothing have become KEEP competition. opponent. Such as Apple, Xiaomi, Huawei, OPPO and other manufacturers are all layout of smart sports devices under the layout. Lifefitness, Technogym and other brands continue to make efforts in the field of fitness equipment, and sportswear brands such as Adidas, Nike, Decathlon, etc. are also in the field of sports. Old players. In addition to traditional competitors, Douyin, mainly short videos and live broadcasts, also intends to divide the cake of the online fitness market. Affected by the epidemic in the first half of the year, many people in many regions across the country were at home, which caused Liu Genghong, who was in Douyin live fitness. For a while, Liu Genghong became a popular traffic star, and it also scratched the popularity of online fitness on the Internet. After that, Douyin also used the momentum to create a "Douyin National Fitness Plan". In contrast, Keep does not create a head star fitness anchor exclusive to his own platform.

However, radar Finance noticed that with the continuous improvement of the epidemic prevention and control work, people's production and life gradually entered the right track. Recently, Liu Genghong's popularity has decreased compared with previously. Gray dolphin data shows that Liu Genghong's fans have dropped 92,000 in the past week. If the timeline is extended to nearly 30 days, Liu Genghong has lost 281,000 powder.

Industry insiders point out that objectively speaking, the epidemic has accelerated the development of the online fitness industry to a certain extent. As the epidemic is gradually controlled, if the epidemic factors are eliminated in the future, whether Keep can maintain the current development trend needs to be tested. In addition, the loss that Keep has not been reversed in recent years has also brought challenges to Keep's listing of listing in Hong Kong.

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