KEEP(HK:03650) Xin Lang Ke Ji·2025-08-26 03:01Core 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 for the first half of 2025 were 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 and restructuring core tools into AI coaching services [1] Financial Performance - Revenue for the first half of 2025 was 822 million RMB, with a gross profit of 429 million RMB and a gross margin of 52.2% [1] - The adjusted net profit was 10.35 million RMB, indicating a focus on profitability despite revenue contraction [1] User Metrics - Average monthly active users reached 22.49 million, while average monthly subscription members were 2.8 million, reflecting a growing user base [1] - The average revenue per monthly active user increased to 6.1 RMB in the first half of 2025 [1] Strategic Initiatives - The CEO explained that revenue contraction was 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 [1] - The company views this strategic shift as a quality improvement phase, setting the stage for future growth [1] AI Development - As of July 2025, Keep's AI core daily active users exceeded 150,000, with a significant retention rate for the AI diet tracking feature [2] - The company anticipates that AI daily active users could exceed 1 million by the end of the year, with AI revenue already surpassing 1 million RMB [2] - Projections indicate that AI annual recurring revenue (ARR) could exceed 200 million RMB by 2026 [2]