Keep (3650) H2 2025 earnings summary

Executive summary

• 2025 marked a shift from scale-led to profit-oriented growth; adjusted net profit reached RMB25.2m, versus an adjusted net loss of RMB469.6m in 2024, with ~60% of 2025 adjusted profit generated in H2.

• Strategic focus moved from a content-led platform toward an AI-driven fitness and health ecosystem, while lower-margin and non-core activities were scaled back.

Financial highlights

• Revenue fell 20.7% YoY to RMB1,637.3m, mainly on lower self-branded product and online membership and paid-content revenue.

• Gross profit declined 11.5% to RMB854.1m; gross margin expanded 5.5 percentage points to 52.2%, the third consecutive annual increase.

• IFRS net loss narrowed to RMB71.8m from RMB534.7m; adjusted net profit was RMB25.2m, excluding RMB97.0m of share-based compensation expense.

• Operating loss improved to RMB81.2m from RMB575.2m; basic and diluted loss per share were RMB0.16, versus RMB1.15 in 2024.

• Operating cash outflow narrowed to RMB33.1m from RMB468.0m; cash and cash equivalents fell to RMB162.0m from RMB764.3m, primarily as funds shifted into financial assets.

Outlook and guidance

• 2026 priorities: accelerate fitness and health LLMs, AI Agents, AIGC and KeepClaw; reinvest online-segment profits into AI R&D and use AI deployment to support engagement and user-scale recovery.

• Product strategy targets indoor fitness and outdoor running, with category expansion, supply-chain integration, channel efficiency and disciplined, profitable growth.

• Online AI products were still in feature validation in 2025; commercialization remains phased and depends on proving user value and monetization returns.