Core Insights - Keep is expected to report a loss of approximately 36 million yuan for the six months ending June 30, 2025, a reduction of about 78% compared to a loss of 163 million yuan for the same period ending June 30, 2024 [1] - The company anticipates an adjusted net profit of around 10 million yuan for the same period, compared to an adjusted net loss of 161 million yuan for the previous year [1] Group 1 - The improvement in profitability is attributed to a focus on optimizing business structure and revenue quality, leading to an increase in gross margin [3] - The integration of AI technology is expected to enhance operational efficiency and reduce operating costs, despite a short-term revenue contraction due to the streamlining of inefficient product categories [3] - The strategic focus remains on two core areas: AI integration in the app and the continued profitable growth of proprietary fitness products [3] Group 2 - The company aims to enhance user experience and retention through AI-driven improvements in sports scenarios and tools [3] - Keep plans to optimize its product structure and launch new products that meet market demand while expanding sales channels to increase market coverage [3] - On February 4, during its 10th anniversary, the founder emphasized a commitment to "All in AI" and developing a data-centric hardware ecosystem to expand the brand's presence in various sports scenarios and global markets [4]

Core Viewpoint - Keep has announced a significant improvement in its financial performance for the first half of 2025, with a projected loss of approximately RMB 36 million, a substantial reduction of 78.0% compared to the same period last year, which recorded a loss of RMB 163 million [1] Financial Performance - For the six months ending June 30, 2025, the adjusted net profit is expected to be around RMB 10 million [1] - The improvement in profitability is attributed to a focus on optimizing business structure and revenue quality, leading to an increase in gross margin [1] Strategic Focus - The company is concentrating on two main areas: AI integration in its app and the continued profitability growth of its proprietary fitness products [1] - In AI integration, Keep aims to enhance user experience and engagement through AI-driven sports scenarios and tools [1] - For proprietary fitness products, Keep plans to optimize product structure and introduce new products that meet market demands while expanding sales channels [1] AI Development - In early 2023, Keep's founder announced a commitment to fully integrate AI into its operations, leveraging ten years of accumulated exercise data [2] - The company launched a specialized model, Kinetic.ai, in March, along with the first general AI coach, Kaka, which customizes training plans based on user needs [2] - The updated AI coach, released in May, offers features such as intelligent workout plan generation, training guidance, and tracking of exercise and dietary data [2]