Core 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 average revenue per monthly active user increased to 6.1 RMB in the first half of 2025, showing significant growth [1] Financial Performance - The company underwent a strategic transformation from a content-driven platform to an AI-enabled, data-driven fitness intelligence service in the first half of 2025 [1] - CEO Wang Ning explained that the revenue contraction was 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] - As of July 2025, Keep's AI daily active users exceeded 150,000, with the AI diet tracking feature showing a 50% next-day retention rate and an overall app daily active user retention rate of 79% [2] Future Projections - The company anticipates that AI daily active users could reach over 1 million by the end of 2025, with AI revenue surpassing 1 million RMB to date [2] - Keep forecasts that AI Annual Recurring Revenue (AIARR) could exceed 200 million RMB in 2026 [2]

Core 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]

Core 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 revenue contraction is attributed 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] - CEO Wang Ning described this as a quality-driven adjustment, positioning it as a foundation for future growth [2] AI Development and User Engagement - As of July 2025, KeepAI had over 150,000 daily active users, with the AI diet tracking feature showing strong retention, covering one-third of AI conversation users and achieving a next-day retention rate of 50% [2] - The daily active users for KeepAI are projected to reach over 1 million by the end of the year, with current AI revenue exceeding 1 million RMB and a forecasted annual recurring revenue (ARR) of over 200 million RMB by 2026 [2]

Core Viewpoint - Keep has successfully achieved a turnaround to profitability in the first half of 2025, focusing on AI-driven platform transformation and operational efficiency improvements [1][2][6]. Financial Performance - In the first half of 2025, Keep reported revenue of 822 million RMB, with an adjusted net profit of 10.35 million RMB, compared to a net loss of 167 million RMB in the same period last year [2][3]. - The gross profit reached 429 million RMB, with a gross margin increase from 46.0% to 52.2% year-on-year [1][3]. - The adjusted net profit margin was 1.3%, a significant improvement from the previous year's adjusted net loss margin of 15.5% [2]. User Metrics - Keep maintained an average monthly active user base of 22.49 million and an average monthly subscription member count of 2.8 million in the first half of 2025 [1][3]. - The membership penetration rate increased to 12.4%, up from 11.1% in the same period of 2024 [1][3]. - The average revenue per monthly active user rose to 6.1 RMB, a 4.5% increase from 5.8 RMB in the previous year [3]. Strategic Focus - Keep is undergoing a strategic transformation from a content-driven platform to an AI-enabled, data-driven fitness service [4][6]. - The company has successfully restructured its AI infrastructure and launched the basic version of its AI coach [1][4]. - Key milestones in AI development include the integration of a multi-agent system and the launch of the AI coach Kaka, which has shown strong user retention metrics [5][6]. Future Outlook - Keep aims to establish a clear growth path through the implementation of its AI strategy and operational efficiency improvements, enhancing its competitive edge [6].