Group 1 - The core viewpoint of the article highlights Keep's significant revenue growth and improved profitability in the first half of 2025, with a revenue of 822 million yuan and a net profit of 10.35 million yuan [1][2] - Keep's gross profit reached 429 million yuan, with a gross margin increase from 46.0% in the previous year to 52.2% [1] - The company's self-branded sports products generated approximately 400 million yuan in revenue, while online membership and paid content revenue amounted to 337 million yuan, and advertising and other income was 88 million yuan [1] Group 2 - In terms of user scale, Keep maintained stable average monthly active users at 22.49 million and average monthly subscription members at 2.8 million, with a membership penetration rate of 12.4%, up from 11.1% in the same period of 2024 [2] - The company is focusing on two strategic directions: advancing AI-driven platform architecture transformation and achieving profitability, with significant results in the first half of 2025 [2] - Keep completed the reconstruction of its AI infrastructure and launched a basic version of the AI coach, while also optimizing its business operations to achieve a turning point in profitability [2]

Core 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]