Core Insights - Keep has experienced a significant stock price increase, reaching a five-month high with a maximum gain of nearly 30% [1] - The company reported its first profitability, attributing this success to high-quality business growth and the cessation of low-quality operations [1] - Keep's adjusted profit for the first half of 2025 is projected to be approximately RMB 10 million, driven by improved business structure and revenue quality [1] Business Strategy - The company is focusing on enhancing its business structure and revenue quality, leading to an increase in gross margin [1] - Keep has committed to an "all in AI" strategy, launching Kinetic.ai and the AI coach Kaka to provide customized training plans [1][2] - The company aims to achieve breakeven by 2025 through AI technology, improved supply chain management, and cost control [2] Operational Adjustments - Keep is making adjustments in both business and team structures to enhance gross margin and reduce fixed costs [2] - The company is adopting a more cautious approach to business and brand investments while preparing for increased spending related to AI initiatives [2] - The first generation of the AI coach is set to be launched soon, indicating rapid progress in business development [2]

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]