In 2025, Keep (03650) delivered a historic performance: achieving an annual adjusted net profit of RMB 25.216 million, marking a strong rebound of nearly RMB 500 million compared to 2024. This milestone breakthrough past the breakeven point is reflected not only in a structural optimization where the gross profit margin expanded by 5.5 percentage points year-on-year to 52.2%, but also in the fact that the second half of the year contributed approximately 60% of the total profit. This steep sequential improvement curve confirms the endogenous and sustainable nature of the profit recovery. Keep is reshaping the underlying code of its business model: using the stable cash flow from its self-branded consumer products as a "ballast," combined with the decreasing marginal costs brought by full-chain AI penetration, the company is evolving from a singular "content platform" into an "AI-powered fitness ecosystem with substantial physical business foundations." This dual-drive model of "hard products + soft intelligence" not only enhances its resilience to economic cycles but also redefines the valuation boundaries of the sports and health industry.
Looking ahead to the next growth cycle, Keep's strategic focus has completely shifted from "broad user acquisition" to "deepening per-customer value." Horizontally, the company will leverage its core fitness scenarios and iterate its high-margin consumer product matrix to solidify the physical foundation of its commercial loop. Vertically, it aims to transform vast amounts of user behavior data into a high-precision "panoramic fitness characteristic profile." By converting discrete fitness records into reusable data assets, Keep is continuously building its algorithmic moat and competitive barriers, embarking on a new paradigm of high-quality development driven by data intelligence.
**Active "Fat Trimming" for "Muscle Building": Revenue Structure Optimization Drives Gross Margin Expansion for Three Consecutive Years** In the 2025 fiscal year, Keep underwent a profound strategic "metabolic reorganization." The core logic involved actively "trimming fat" by shedding inefficient assets to achieve a "muscle-building" effect in its core businesses. Full-year revenue was recorded at RMB 1.637 billion, a year-on-year decrease of 20.7%. This figure does not indicate a growth stall but rather the result of a strategic contraction, where the company proactively cleared out low-margin capacity in response to market cycles. Specifically, the structural revenue adjustment stemmed from deliberate choices in two key areas: Firstly, on the hardware front, the company decisively discontinued long-tail product lines with margin pressure, such as large home fitness equipment and smart bands, ceasing resource drain from non-core assets. Secondly, on the service side, following the natural decline in popularity of a blockbuster IP event from the previous year, the company scaled back its online fitness event operations, avoiding irrational investments aimed solely at maintaining inflated revenue at the expense of profitability. This decisive business restructuring aimed to precisely allocate limited resources to high-margin, high-repeat core segments like membership subscriptions, fitness equipment, and apparel, building momentum for long-term sustainable growth.
Alongside the "slimming down" of revenue scale, Keep's "body fat percentage"—its gross profit margin—experienced structural expansion for the third consecutive year. This excellent performance was driven by dual factors: supply chain efficiency and technological effectiveness. On the supply side, the company significantly reduced the unit cost of physical goods through bulk purchasing negotiations, engineering cost reductions, and refined logistics management. On the operational side, the deep integration of AI technology restructured content production processes and business flow efficiency, simultaneously optimizing organizational manpower efficiency.
**"Physical Business + AI" Dual Drive: Consumer Products Secure Cash Flow Foundation, Technology Reshapes Cost Curve** Keep's profitability inflection point demonstrates the structural resilience of its "AI-powered fitness ecosystem with physical business foundations" model during cyclical fluctuations. This model, through the deep integration of "hard assets" and "soft intelligence," builds a unique anti-cyclic moat: the self-branded consumer products business provides stable operating cash flow, while the full-chain penetration of AI technology significantly reshapes the marginal cost structure. Together, they drive a paradigm shift from "monetizing traffic" to "deepening value."
In the physical business dimension, the self-branded consumer products business has been established as the core "ballast." In the 2025 fiscal year, this segment recorded revenue of RMB 778 million. Furthermore, the segment's profit quality achieved a qualitative leap—the gross profit margin expanded by 4.1 percentage points year-on-year to 35.8%. A more critical structural change lies in the optimization of the product matrix: revenue contribution from core fitness equipment categories exceeded 60% and maintained positive growth throughout the year. This data validates the strong penetration power of Keep's "quality at mid-price" strategy amidst consumer stratification trends, successfully capturing a high-value-for-money niche in users' minds. Through vertical supply chain integration, bulk purchasing power, and refined logistics and fulfillment efficiency, the company has built a robust internal financing mechanism in the physical goods sector. This not only smooths out the cyclical volatility inherent in pure internet businesses but also provides ample and stable free cash flow support for overall operations.
In the digital intelligence dimension, AI technology has completed its transition from a mere infrastructure investment to a core profit-driving engine. By deeply integrating large language models and algorithms into the entire process—from content production (AIGC) to personalized services and operational decision-making—Keep has achieved significant economies of scale and decreasing marginal costs. Data shows that AI coaches have cumulatively generated personalized fitness plans for over 1.3 million users, voice-guided running features have been used over 21 million times, and food image recognition has processed more than 3.5 million images. This large-scale, low-marginal-cost supply of intelligent services fundamentally breaks the linear growth bottleneck of the traditional fitness industry, which relies heavily on expensive human coaching costs, causing the average cost curve for content production to decline significantly. AI is no longer just a tool for enhancing user experience; it has become a financial lever directly driving gross margin expansion.
The dual-drive effect of "Physical Business + AI" is quantitatively verified by user retention and engagement metrics. In 2025, although the total Monthly Active User (MAU) count was proactively adjusted due to strategic focus, the "monetary value" of the user base significantly improved: the exercise participation rate among Daily Active Users (DAU) increased by 5.3 percentage points year-on-year to 57.8%. The average monthly exercise time per MAU grew by 6.9% year-on-year, and the DAU next-day retention rate improved by 2.7 percentage points year-on-year to 41.7%. Particularly noteworthy is that the user group frequently utilizing AI data analysis features achieved a next-day retention rate as high as 69%, far exceeding the overall average. This divergence indicates that Keep is locking users into physical fitness scenarios through "hard products" and occupying their decision-making time and mindshare through "soft intelligence." The closed-loop effect formed by these two aspects greatly enhances user lifetime value. The competitive barrier built jointly by physical delivery and digital services possesses a high imitation threshold, signifying that Keep has evolved from a mere traffic platform into a sports technology ecosystem with deep physical business foundations and an intelligent core.
**From Traffic Operations to Asset Accumulation: Building a "Panoramic Fitness Characteristic Profile" to Open a New Data Intelligence Cycle** Looking forward, Keep's growth logic will further transition from "traffic acquisition" to "data asset cultivation." In the context of plateauing mobile internet traffic, the decade-long accumulation of over 400 million users and 14 billion fitness records held by Keep has become its most critical strategic asset. In 2025, the company formally began transforming this discrete user behavior data, empowered by AI capabilities, into a "Panoramic Fitness Characteristic Profile" encompassing 17 categories and over 700 metrics. The establishment of this profile marks Keep's entry into a micro-granular era of user value extraction. It not only provides precise insights into users' underlying fitness characteristics and behavior patterns but also offers limitless possibilities for the future diversification of its business model. Based on this profile, Keep will be able to offer more accurate personalized services, expanding from单纯的 fitness guidance into the broader health management field, and even exploring cutting-edge applications like large language models for fitness and health or AI agents.
In 2026, Keep has explicitly stated that profits generated from online operations will be prioritized for reinvestment into AI technology R&D, further raising its data barrier. The strategic focus will revolve around core users and core scenarios (indoor fitness, outdoor running): on one hand, continuously iterating the high-margin consumer product matrix to deepen the brand moat of "quality at mid-price"; on the other hand, leveraging AIGC technology to rapidly expand content for high-value vertical sports like tennis and skiing, achieving low-cost content category expansion.
In summary, Keep has completed a profound transformation from a singular "traffic-based fitness app" into a composite sports technology ecosystem "grounded in physical business and powered by intelligence." Looking ahead, as the dual-drive effect of "Physical Business + AI" continues to unfold, Keep is gradually shedding the valuation label of a traditional internet company and instead anchoring itself to a new coordinate: a "data-intelligence-driven sports technology giant." This marks the beginning of a new cycle of high-quality value reassessment, supported by endogenous profitability and defined by data intelligence.
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