On August 25, fitness technology company Keep (03650) announced its interim results for the six months ended June 30, 2025. During the reporting period, Keep achieved revenue of RMB 822 million, with adjusted net profit under non-GAAP measures reaching RMB 10.35 million. The company recorded gross profit of RMB 429 million, with gross margin improving significantly from 46.0% in the same period last year to 52.2%.

In terms of user metrics, Keep's average monthly active users and average monthly subscription members in H1 2025 were 22.49 million and 2.8 million respectively, both maintaining stable trends. Keep's platform member penetration rate reached 12.4%, an improvement from 11.1% in the same period of 2024.

Keep stated in its financial report that in 2025, the company is focusing on two strategic directions: advancing AI-driven platform transformation and achieving operational profitability turnaround. The dual-track strategy showed significant results in the first half: on one hand, the company completed AI infrastructure reconstruction and launched a basic version of its AI coach; on the other hand, it optimized business operations and achieved adjusted net profit, reaching a profitability inflection point.

**Business Optimization Achieves Successful Turnaround**

The financial report shows that Keep achieved adjusted net profit (non-GAAP) of RMB 10.35 million in H1 2025, compared to an adjusted net loss (non-GAAP) of RMB 167 million in the same period last year, successfully turning from loss to profit. The adjusted net profit margin reached 1.3%, compared to an adjusted net loss margin of 15.5% in the same period last year.

Keep's revenue of RMB 822 million in H1 2025 decreased year-over-year, primarily due to the company's strategic transformation implementation, comprehensive focus on AI, proactive streamlining of non-core inefficient operations, and product structure optimization to improve profitability.

Specifically, proprietary sports products generated approximately RMB 400 million in revenue, online membership and paid content income was RMB 337 million, and advertising and other income was RMB 88 million. Notably, the proprietary sports products segment proactively implemented category structure optimization and channel refinement strategies in the first half, contracting low-margin businesses especially large home equipment, while developing high-potential categories such as equipment, apparel, and wearables. During the reporting period, this business segment's gross margin improved by 3.3 percentage points year-over-year to 34.8%, fully validating the effectiveness of category focus and channel efficiency strategies.

The financial report also shows that in H1 2025, benefiting from improved gross margins across online, consumer products, and advertising businesses, the group's overall gross margin improved. Keep's company gross margin increased from 46% in the same period last year to 52.2%.

Regarding user scale, Keep's average monthly active users and average monthly subscription members in H1 2025 were 22.49 million and 2.8 million respectively, both maintaining stable trends. Member penetration rate was 12.4%, an improvement from 11.1% in the same period of 2024. Meanwhile, average revenue per monthly active user increased significantly by 4.5% year-over-year to RMB 6.1 in H1 2025, compared to RMB 5.8 in the same period last year.

**Rapid Progress in Strategic Transformation with Comprehensive AI Focus**

The financial report shows that Keep initiated a critical strategic transformation in 2025, upgrading from a content-driven platform to an AI-powered, data-driven intelligent fitness service ecosystem. Key progress in H1 2025 included: successful deployment of AI infrastructure reconstruction system platform, and phased reorganization of core tools and functional flows into AI coach services.

Keep announced its "All in AI" strategy in February 2025 and completed several key AI milestones in the first half:

First, it achieved Multi-Agent System (MAS) infrastructure construction, completed deep integration of large language models with platform-wide fitness tool services, gradually realized intelligent transformation of core exercise tools and process scenarios, and continuously optimized its proprietary fine-tuned model Kinetic.AI. From a technical capability perspective, it built Agent foundation based on persona, memory, and intent.

Second, it launched the beta version of its first AI coach Kaka in March, with multiple feature iterations, continuously strengthening Kaka's ability to serve different fitness scenarios in natural, intuitive, and multimodal ways, aiming to reconstruct the intelligent fitness ecosystem through full-cycle process transformation.

Third, through triple upgrades in AIGC content architecture, it benchmarked coach-level standards and reconstructed the capability system from content to services.

According to the latest data from July 2025 mentioned in the financial report, Keep's AI core daily active users exceeded 150,000. Among these, AI dietary recording in AI coach core functions, as a typical high-frequency essential scenario, demonstrates significant retention advantages through low-threshold precise interaction (users only need to photograph meals for automatic calorie and nutrient recognition): this feature covers one-third of AI conversation users and shows deep retention characteristics—next-day retention rate reaches 50%, with App DAU retention rate climbing to 79%.

Keep stated in its financial report that through AI strategy implementation and systematic improvement in operational efficiency in H1 2025, the company has established a clear growth path, driving the company toward sustainable and scalable development direction while enhancing differentiated competitiveness. Looking ahead to H2 2025 and longer cycles, the company will strengthen long-term business resilience and drive continuous improvement in profitability.