Keep (3650) H1 2025 earnings summary

Executive summary

• H1 2025 strategy centered on AI-powered fitness coaching and a profitability turnaround; adjusted net profit reached RMB10.3 million after an adjusted net loss of RMB160.7 million in H1 2024.

• Revenue declined as operations were scaled back and product mix optimized, while gross margin rose 6.2 percentage points to 52.2% and the reported loss narrowed to RMB35.4 million.

Financial highlights

• Revenue fell 20.8% YoY to RMB821.8 million; gross profit decreased 10.1% to RMB429.1 million.

• Reported loss was RMB35.4 million versus RMB163.4 million in H1 2024; adjusted net profit was RMB10.3 million versus an adjusted net loss of RMB160.7 million.

• Operating loss narrowed to RMB42.4 million from RMB187.8 million; operating expenses fell, including selling and marketing down 30.9% to RMB223.5 million and R&D down 17.0% to RMB162.4 million.

• Operating cash outflow was RMB59.3 million versus RMB197.0 million in H1 2024; cash and cash equivalents were RMB534.0 million at June 30, 2025.

Outlook and guidance

• H2 2025 priorities: further gross-margin improvement and operating efficiency, continued profitability progress, and marketing-led product visibility and growth recovery.

• Plans include upgrading AI Coach capabilities and engagement, expanding higher-potential self-branded product categories and channels, and improving user retention and membership penetration.

• Future AI initiatives include tiered coaching services to support member ARPU and broader AIGC content to expand active users; no numerical guidance was stated.