KEEP(HK:03650) Sou Hu Cai Jing·2025-08-26 01:57Core Insights - Keep reported a revenue of 822 million RMB for the first half of 2025, with an adjusted net profit of 10.35 million RMB and a gross profit of 429 million RMB, resulting in a gross margin increase from 46.0% to 52.2% compared to the same period last year [1] - The average monthly active users and average monthly subscription members reached 22.49 million and 2.8 million respectively, with a membership penetration rate of 12.4%, up from 11.1% in 2024 [1] - The company is undergoing a strategic transformation from a content-driven platform to an AI-enabled, data-driven fitness intelligence service, with significant progress in deploying AI infrastructure [1] Revenue and Strategic Changes - The CEO explained that the revenue contraction is largely due to a strategic decision to optimize product categories and channels, focusing on high-potential categories like equipment, apparel, and wearables while reducing low-margin businesses [2] - The introduction of AI Coach is expected to lead to comprehensive user growth, as the company shifts back to reasonable growth budgets and investments [2] - The launch of AI multifunctional tools and the expansion of AIGC content categories are anticipated to attract a diverse user base, including sports like tennis, golf, and swimming [2] AI Development and Future Projections - As of July, Keep's AI daily active users (DAU) ranged from 150,000 to 200,000, with expectations to exceed 1 million by the end of the year [3] - The AI revenue has already surpassed 1 million RMB, and projections indicate that AI annual recurring revenue (ARR) could exceed 200 million RMB by 2026 [3]