BEIJING, Aug. 25, 2025 /PRNewswire/ -- Keep Inc. ("Keep" or the "Company"), the largest online fitness platform in China, today announced its unaudited interim results for the six months ended June 30, 2025.
First Half 2025 Financial Highlights
- Total revenues were RMB821.8 million for the six months ended June 30, 2025, representing a 20.8% year-over-year decrease, which was primarily attributable to the strategic transformation with an all-out focus on AI, including proactive downsizing of non-core and less effective operations, as well as optimization of the product mix to enhance profitability.
- Gross profit was RMB429.1 million in the first half of 2025, with gross profit margin at 52.2%, a 6.2 percentage point increase from 46.0% in the first half of 2024.
- Adjusted net profit (non-IFRS measure) was RMB10.3 million, representing a turnaround from an adjusted net loss (non-IFRS measure) of RMB160.7 million in the first half of 2024.
First Half 2025 Operational Highlights
Six months ended June 30, | ||
2025 | 2024 | |
Average monthly active users ("MAU(s)") (in thousands) | 22,486 | 29,660 |
Average monthly revenues per MAU (in RMB) | 6.1 | 5.8 |
Average monthly subscribing members (in thousands) | 2,787 | 3,282 |
Membership penetration rate | 12.4 % | 11.1 % |
Mr. Wang Ning, Chief Executive Officer of Keep Inc., commented, " 2025 marks a pivotal chapter as we transform from a content-centric platform into an AI-powered, data-driven fitness agent. We anchored our strategic efforts on two key pillars in 2025: advancing AI-powered platform architectural transformation, and implementing profitability turnaround. For the first half of 2025, this two-pronged strategy has yielded solid progress, as we re-engineered AI fundamental architecture and launched foundational AI coaching capabilities. Concurrently, we reevaluated and optimized our self-branded fitness product portfolio to enhance margins, and optimized operational efficiency across sales channels and supply chain. These initiatives collectively drove a fundamental inflection point in achieving our first-ever adjusted net profit (Non-IFRS measure) turnaround for the first half of 2025.
Building on this momentum, we roll out the pilot version of our first AI Koach Kaka. Since its launch, AI Koach Kaka has been accessible to all users, with limited usage available for non-members. AI Koach Kaka has showcased positive growth momentum, as evidenced by core AI daily active users surpassed 150,000 by the end of July 2025. Among its core functions, the dietary logging module has emerged as a high-frequency, essential-use scenario, further demonstrating the value and stickiness of our AI-powered coaching features.
Looking ahead, we will continue to pursue a strategy focused on gross margin improvement and operational efficiency to drive profit resilience, while capitalising on critical marketing windows to amplify product visibility and reignite business growth. We will firmly anchor our development path by advancing AI product innovation to breakthrough scale boundaries; fuel growth momentum for self-branded fitness products, altogether driving our long-term sustainable development."
2025 Interim Financial Results
Revenues
Total revenues were RMB821.8 million for the six months ended June 30, 2025, representing a 20.8% decrease from RMB1,037.3 million for the six months ended June 30, 2024, which was mainly due to the decrease in revenues generated from self-branded fitness products and online membership and paid content.
Revenues from self-branded fitness products were RMB396.7 million for the six months ended June 30, 2025, representing a 20.9% decrease from RMB501.5 million for the six months ended June 30, 2024, which was mainly attributable to the scaled back of certain less effective and underperforming categories.
Revenues from online membership and paid content were RMB337.1 million for the six months ended June 30, 2025, representing a 22.9% decrease from RMB437.0 million for the six months ended June 30, 2024, mainly attributable to the decreased revenues from online sports events.
Revenues from advertising and others were RMB88.0 million for the six months ended June 30, 2025, representing a decrease of 11.0% from RMB98.9 million for the six months ended June 30, 2024, which was mainly attributable to the scaled back certain non-core business operations in 2024.
Cost of revenues
Cost of revenues was RMB392.7 million for the six months ended June 30, 2025, representing a decrease of 29.9% from RMB560.0 million for the six months ended June 30, 2024, which was in line with respective to the revenue trends during the period.
Cost of self-branded fitness products was RMB258.7 million for the six months ended June 30, 2025, representing a 24.7% decrease from RMB343.3 million for the six months ended June 30, 2024, which was mainly attributable to the decrease of cost of inventories sold due to the optimized product mix and supply chain performance.
Cost of online membership and paid content was RMB96.6 million for the six months ended June 30, 2025, representing a 31.2% decrease from RMB140.4 million for the six months ended June 30, 2024, which was mainly attributable to decreases of RMB25.4 million in costs associated with online sports events and RMB9.0 million in payment channel fees paid to third-party application stores and other payment channels, respectively, in correspondence with the decrease of related revenues.
Cost of advertising and others was RMB37.4 million for the six months ended June 30, 2025, representing a 51.0% decrease from RMB76.4 million for the six months ended June 30, 2024, which was mainly attributable to the decreases of: (i) RMB7.6 million in advertising production costs due to the optimized costs for offline advertising activities; and (ii) RMB7.6 million in outsourcing and other labour cost and RMB7.1 million in employee benefit costs, respectively, relating to the gradual phase-out of the Keepland business in 2024.
Gross profit and gross profit margin
Gross profit was RMB429.1 million for the six months ended June 30, 2025, representing a 10.1% decrease from RMB477.3 million for the six months ended June 30, 2024, which was mainly due to the decrease of revenues, partially offset by the decrease of cost of revenues.
Gross profit margin was 52.2% for the six months ended June 30, 2025, representing a 6.2 percentage points increase from 46.0% for the six months ended June 30, 2024, mainly due to the optimized business structure and related costs.
Gross profit margin of self-branded fitness products increased by 3.3 percentage points from 31.5% for the six months ended June 30, 2024 to 34.8% for the six months ended June 30, 2025, which was mainly driven by the refined product portfolio, rationalized pricing strategy and improved cost management.
Gross profit margin of online membership and paid content increased by 3.4 percentage points from 67.9% for the six months ended June 30, 2024 to 71.3% for the six months ended June 30, 2025, due to higher revenue contribution from online membership subscription and improved operational efficiency.
Gross profit margin of advertising and others increased by 34.7 percentage points from 22.8% for the six months ended June 30, 2024 to 57.5% for the six months ended June 30, 2025, primarily because we scaled down certain low gross margin business operations and optimized advertising production costs.
Fulfillment expenses
Fulfillment expenses were RMB43.8 million for the six months ended June 30, 2025, representing a 29.3% decrease from RMB61.9 million for the six months ended June 30, 2024, primarily due to a decrease in sale of self-branded fitness products and online sports events, as well as the further optimization of logistics and storage expenses.
Selling and marketing expenses
Selling and marketing expenses were RMB223.5 million for the six months ended June 30, 2025, representing a 30.9% decrease from RMB323.4 million for the six months ended June 30, 2024, primarily due to a decrease of RMB102.8 million in branding and marketing expenses due to the optimized promotion efficiency.
Administrative expenses
Administrative expenses were RMB82.8 million for the six months ended June 30, 2025, representing an 8.5% decrease from RMB90.5 million for the six months ended June 30, 2024, primarily attributable to a decrease of RMB24.9 million in professional fees, and partially offset by RMB19.1 million increase in administrative personnel costs (including related share-based compensation expenses). The increase was mainly due to the share-based compensation expenses increased by RMB26.5 million.
Research and development expenses
Research and development expenses were RMB 162.4 million for the six months ended June 30, 2025, representing a 17.0% decrease from RMB195.7 million for the six months ended June 30, 2024, primarily attributable to decreases of RMB18.7 million in research and development personnel costs (including related share-based compensation expenses), RMB5.6 million in depreciation and amortization of long-term assets and RMB3.8 million in outsourcing and other labor costs, respectively, primarily attribute to advanced workforce productivity, with AI technological enhancement.
Loss/profit for the period
As a result of the foregoing, the loss for the six months ended June 30, 2025 was RMB35.4 million, compared with a loss of RMB163.4 million for the six months ended June 30, 2024. The decrease of loss for the period was primarily attributable to the higher gross profit margin and reduced operating expenses. Adjusted net profit (non-IFRS measure) was RMB10.3 million for the six months ended June 30, 2025, compared with an adjusted net loss (non-IFRS measure) of RMB160.7 million for the six months ended June 30, 2024.
Non-IFRS Measures
Adjusted net profit (non-IFRS measures) was RMB10.3 million for the six months ended June 30, 2025, compared with an adjusted net loss (non-IFRS measures) of RMB160.7 million for the six months ended June 30, 2024.
Conference Call
The Company's management will host an earnings conference call at 8:00 p.m. Beijing Time on August 25, 2025.
Participants who wish to join the call should follow the following method:
1) Please click on the call link and complete the online registration form. Kindly register at least one working day before the event.
https://register-conf.media-server.com/register/BI553d63412e324eb782a509c4a6228f33
2) Upon registering you will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details.
3) Select a method for joining the call
- Dial-In: A dial in number and unique PIN are displayed to connect directly from your phone.
- Call Me: Enter your phone number and click "Call Me" for an immediate callback from the system. The call will come from a US number, and this function is only applicable for participants outside China .
4) Please dial in 15 minutes before the call is scheduled to begin and provide the personal PIN to join the call.
Additionally, a live and archived webcast of the conference call will be available at https://ir.keep.com/en/news_events.php.
About Keep Inc.
Keep Inc. (HKEX Stock Code: 3650) is the largest online fitness platform in China in terms of MAUs and number of workout sessions completed by users in 2022, according to CIC. Keep offers a comprehensive fitness solution to help users achieve their fitness goals. On the Keep platform, extensive, professional, and premium fitness content with diverse activities and services are offered to encourage users to engage in daily exercise. Keep platform leverages AI technology to provide personalized workout programs incorporating recorded courses and interactive live streaming classes, dynamically customized to each user's athletic levels, fitness goals, daily workout patterns and diet. Keep's services seamlessly connect the physical and digital realms, spanning smart devices, workout equipment, athletic apparel and food to provide an immersive fitness experience.
For more information on Keep Inc., visit https://keep.com/.
Forward-looking Statements
This press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the board of directors of the Company or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.
Non-IFRS Measures
To supplement our consolidated financial statements, which are presented in accordance with IFRS Accounting Standards as issued by the IASB, we also use adjusted net profit/(loss) as an additional financial measure, which is not required by, or presented in accordance with, IFRS Accounting Standards.
The Company's management believe adjusted net profit/(loss) provides useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as they help our management. However, our presentation of adjusted net profit/(loss) may not be comparable to similarly titled measures presented by other companies. The use of adjusted net profit/(loss) has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for an analysis of, our results of operations or financial condition as reported under IFRS Accounting Standards.
Consolidated Statement of Profit or Loss | |||
Six months ended June 30, | |||
2025 | 2024 | ||
RMB'000 | RMB'000 | ||
(Unaudited) | (Unaudited) | ||
Revenues | 821,752 | 1,037,343 | |
Cost of revenues | (392,672) | (560,021) | |
Gross profit | 429,080 | 477,322 | |
Fulfillment expenses | (43,786) | (61,921) | |
Selling and marketing expenses | (223,508) | (323,412) | |
Administrative expenses | (82,772) | (90,455) | |
Research and development expenses | (162,421) | (195,690) | |
Other income | 27,668 | 3,809 | |
Other gains, net | 13,386 | 2,531 | |
Operating loss | (42,353) | (187,816) | |
Finance income | 7,555 | 25,834 | |
Finance expenses | (631) | (1,371) | |
Finance income, net | 6,924 | 24,463 | |
Loss before income tax | (35,429) | (163,353) | |
Income tax expense | - | - | |
Loss for the period attributable to owners of the Company | (35,429) | (163,353) | |
Loss per share (expressed in RMB per share) | |||
Basic | (0.08) | (0.35) | |
Diluted | (0.08) | (0.35) | |
Consolidated Statement of Financial Position
| |||
As at June 30, 2025 | As at December 31, 2024 | ||
RMB'000 | RMB'000 | ||
(Unaudited) | (Audited) | ||
ASSETS | |||
Non-current assets | |||
Property and equipment | 15,272 | 19,367 | |
Right-of-use assets | 23,987 | 34,657 | |
Intangible assets | 6,722 | 7,455 | |
Financial assets at fair value through profit or loss | 143,643 | 54,224 | |
Financial assets at fair value through other comprehensive | 20,000 | - | |
Other non-current assets | 53,635 | 54,164 | |
263,259 | 169,867 | ||
Current assets | |||
Inventories | 123,862 | 136,736 | |
Accounts and notes receivables | 217,016 | 205,191 | |
Prepayments and other current assets | 172,846 | 195,486 | |
Financial assets at fair value through profit or loss | 465,953 | 433,009 | |
Financial assets at amortized cost | 16,422 | - | |
Short-term time deposits | 588 | 553 | |
Restricted bank deposits | 700 | 700 | |
Cash and cash equivalents | 533,991 | 764,260 | |
1,531,378 | 1,735,935 | ||
Total assets | 1,794,637 | 1,905,802 | |
EQUITY | |||
Equity attributable to owners of the Company | |||
Share capital | 168 | 168 | |
Other reserves | 8,234,785 | 8,204,827 | |
Accumulated losses | (6,884,622) | (6,849,193) | |
Total equity | 1,350,331 | 1,355,802 | |
| Consolidated Statement of Financial Position (Continued) | |||
As at June 30, 2025 | As at December 31, 2024 | ||
RMB'000 | RMB'000 | ||
(Unaudited) | (Audited) | ||
LIABILITIES | |||
Non-current liabilities | |||
Lease liabilities | 8,334 | 17,462 | |
Other non-current liability | - | 5,639 | |
8,334 | 23,101 | ||
Current liabilities | |||
Accounts payable | 156,549 | 149,240 | |
Accrued expenses | 151,872 | 246,152 | |
Other current liabilities | 35,130 | 42,076 | |
Contract liabilities | 75,850 | 71,790 | |
Lease liabilities | 16,571 | 17,641 | |
435,972 | 526,899 | ||
Total liabilities | 444,306 | 550,000 | |
Total equity and liabilities | 1,794,637 | 1,905,802 | |
The following table reconciles our adjusted net profit/(loss) for the periods presented to the most directly comparable financial measure calculated and presented in accordance with IFRS Accounting Standards, which is loss for the six months ended June 30, 2025 and 2024:
Reconciliation of loss to adjusted net profit/(loss)
(Non-IFRS measure): |
Six months ended June 30, | |
2025 | 2024 | |
RMB'000 | RMB'000 | |
(Unaudited) | (Unaudited) | |
Loss for the period | (35,429) | (163,353) |
Adjustment for: | ||
Share-based compensation expenses | 45,776 | 2,663 |
Adjusted net profit/(loss) for the period (Non-IFRS measure) | 10,347 | (160,690) |
SOURCE Keep Inc.
