China’s biggest online fitness platform Keep Inc begins trading in Hong Kong

July 19, 2023

Karen Sweaney

Beijing-based company and China’s biggest online fitness platform - Keep Inc - has raised US$40 million from the sale of 10.8 million shares in an initial public offering (IPO) and will begin trading in Hong Kong today after two previous attempts were rejected by the Hong Kong stock exchange in February and September last year.

China International Capital Corp (CICC) is the sole sponsor of the deal, with GF Securities, CCB International and Futu Holdings acting as joint bookrunners and lead managers.

South China Morning Post revealed that Keep has 36.3 million active users with SCMP also reporting that Keep’s prospectus (which cited research from CICC) China had the highest number of fitness enthusiasts in the world at 374 million last year.

That number is expected to grow by 24% to 463.5 million by 2027, while per-capita spending on physical fitness in China is only about a sixth of that in the US, implying huge room for growth. Keep’s listing will give global investors access to China’s fitness market.

Keep Inc is backed by Japan’s SoftBank Group. The IPO was priced at the low end of a wide band between HK$28.92 and HK$61.46.

Research firm CB Insights wrote in a 2017 report that "many fitness mobile apps offer convenience, but Keep has differentiated itself by integrating social media and e-commerce within its app. The app's social media component not only allows fitness enthusiasts to post their own content, but also allows fitness brands to create in-app social campaigns and promotions for fitness classes and other services.”

Keep is an app created by the company Beijing Calories Technology Co Ltd which was founded in 2014 by Wang Ning, a college student. Keep became available for downloading on 4th February 2015. The app allows users to view fitness videos and to buy fitness equipment. It contains a social networking service so that customers can share exercise routines with each other. Keep reached one million users downloads by 105 days after its launch and had over 200 million users in September 2019. A December 2018 report published by Sootoo Institute found that there were 38.8 million downloads of Keep between July and September, making it "the most downloaded fitness app in China".

According to Xinhua News Agency, Wang chose the name 'Keep' because "he believes keeping, or persistence, is the core of losing weight."

Keep’s prospectus notes “with our online fitness solutions, we have addressed major pain points in China’s fitness market and fundamentally redefined people’s relationship with fitness. Our Keep brand is highly influential and has become synonymous with a passion for fitness.”

The prospectus advised that IPO proceeds will be used for research and development, development and diversification of fitness content, branding and promotion, and working capital.

According to company data, Keep’s monthly active users averaged 36.3 million last year, increasing from 34.4 million in 2021 and 29.7 million in 2020.

SCMP also noted the Keep prospectus showed sales of self-branded products, including yoga mats, dumbbells, gym wear and accessories, contributed to 51% of its revenue last year, while memberships and online paid content such as recorded and live-streaming fitness courses made up 40%, with advertising accounting for the rest.

Images. Credit: Keep

About the author

Karen Sweaney

Co-founder and Editor, Australasian Leisure Management

Artist, geoscientist and specialist writer on the leisure industry, Karen Sweaney is Editor and co-founder of Australasian Leisure Management.

Based in Sydney, Australia, her specific areas of interest include the arts, entertainment, the environment, fitness, tourism and wellness.

She has degrees in Fine Arts from the University of Sydney and Geological Oceanography from UNSW.

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