KEEP(HK:03650) Zhi Tong Cai Jing·2025-08-25 10:03Core Insights - KEEP (03650) reported mid-year results for 2025, with revenue of approximately 822 million RMB and a gross profit of about 429 million RMB, achieving a gross margin of 52.2%, an increase of 6.2 percentage points year-on-year [1] - The company narrowed its loss to 35.43 million RMB, a reduction of 78.3% year-on-year, while adjusted net profit reached 10.35 million RMB, marking a turnaround from loss to profit [1] - The company is focusing on two strategic directions: advancing AI-driven platform architecture transformation and achieving operational profitability [1] Financial Performance - For the six months ending June 30, 2025, the average monthly active users and average monthly subscription members were 22.5 million and 2.8 million, respectively, with a membership penetration rate of 12.4%, up from 11.1% in the same period of 2024 [2] - The average revenue per monthly active user increased to 6.1 RMB, a 4.5% rise from 5.8 RMB in the previous year [2] - The company reduced customer acquisition costs by approximately 60% through optimizing marketing efficiency and prioritizing user engagement and retention over scale expansion [2] Strategic Initiatives - The company completed the reconstruction of its AI infrastructure and launched a basic version of the AI coach during the first half of 2025 [1] - Efforts to deepen engagement in niche areas such as outdoor activities and dance, as well as targeting youth and advanced users, have been implemented to enhance user activity [2] - Core AI features have been made available to all users, with usage limits set for non-members to amplify perceived platform value and accelerate user penetration [2]