On May 20, sports technology company Keep announced a stock repurchase plan involving up to HK$100 million. According to the announcement, as of the announcement date, the repurchase capital of HK$16 million, which was first announced by the company in February this year, has been spent more than 90%, and the company has decided to continue to increase the repurchase amount by up to HK$100 million. The repurchase funds come from its own financial resources other than the proceeds from the initial public sale.
Keep said the company believes the share buyback will show the company's confidence in its own business prospects and prospects, which will ultimately benefit the company and create value for its shareholders.
Recently, Keep released its 2023 annual report. The annual report shows that on December 31, 2023, Keep's total current assets were 2.29 billion yuan (RMB, same below), total assets were 2.45 billion yuan, net asset value was 1.87 billion yuan, and cash and cash equivalents were 1.6 billion yuan.
The annual report revealed that based on the company's business development, the three aspects of online content, outdoor, and AI will be increased in the future. According to the Guoxin Securities Research Report, the current trend of keeping loss reduction is improving. New outdoor categories are expected to drive consumer goods revenue and gross profit growth. In 2023, the company will begin to expand outdoor equipment categories and course content. Under the boom in the outdoor industry, it is expected to drive an increase in consumer goods revenue and gross margin.
Benefiting from the restoration of market sentiment in the Hong Kong stock market and the steady development of its own business, Keep's cumulative increase in the past month is impressive. On April 17, the closing price of Keep was HK$5.66 per share, and on May 17, it closed at HK$7.37 per share, with a cumulative increase of over 30%. At the close of trading on May 17, Keep's trading volume was 16.9552 million shares, with a turnover of HK$128 million.