Event: Keep publishing the 2023 Annual Report.
Finance: Total revenue of 2.084 billion/ -1.3%, gross margin increased significantly, from 40.7% in 2022 to 45%, adjusted loss in 23 fell from 667 million yuan in 2022 to 295 million yuan, and the adjusted net loss ratio narrowed to 13.8%.
Operating data: By the end of '23, the average number of monthly active users was 29.76 million, and the average monthly subscription members was 3.19 million. In the second half of 23, the decline in the number of monthly active users and subscribers gradually narrowed. The member penetration rate increased from 10% in '22 to 10.7% in 2023. The average revenue per monthly active user increased 17.6% year over year.
Content: Carefully select and create third-party content, regularly upgrade the platform's existing content, promote outdoor course construction, online membership subscription and paid content revenue of 996 million/ +11.4%, and the number of recorded and broadcast courses increased from 1873 to 4,225.
Online events: Cross-border cooperation is carried out through creative medals and virtual rights to promote virtual sports events. The average income of each paying user for virtual sports events reached a new high in 2023, with a year-on-year increase of more than 30%.
Consumer goods: revenue of 946 million/ -16.8%. ① New hardware: Many new smart hardware products were released in 2023 and were widely recognized; ② Consumer products: various items such as yoga clothes, fitness equipment, protective equipment, sports underwear, and fitness pants were welcomed by users. Starting from user needs, the product line was expanded from indoor to outdoor-related categories. In 2023, the number of inventory turnover days for owned sports products dropped significantly year-on-year, while sales and marketing rates also declined year-on-year.
Profit forecast and valuation: The company is rapidly narrowing its losses. It will invest moderately in 24. After 24 years of transition, it is expected to achieve profit in 25 years. The comprehensive forecast is net profit to mother for 2024-2025 - 204 million yuan/183 million yuan.
Risk warning: loss reduction falls short of expectations, consumption recovery falls short of expectations, user growth falls short of expectations