#China #Beijing #Keep Inc. #AI Koach Kaka #China Fitness

Keep Inc. Unveils 2025 Interim Financial Results

On August 25, 2025, Keep Inc., the largest online fitness platform in China, announced its unaudited interim results for the first half of 2025, marking a significant pivot in its operational strategy. As the company transitions to prioritize artificial intelligence, it recently disclosed a considerable decline in revenues, totaling RMB 821.8 million, a 20.8% decrease from the previous year. However, there are positive signs in profitability as adjusted net profit reached RMB 10.3 million, a substantial increase compared to the prior year's adjusted net loss of RMB 160.7 million.

Financial Highlights

During the first half of 2025, Keep Inc. faced challenges with its revenue streams, particularly in self-branded fitness products and online membership. The company strategically downsized several non-core operations and restructured its product mix to enhance profitability. Gross profit stood at RMB 429.1 million, with an increased gross profit margin of 52.2%, showing a significant improvement from 46.0% reported in the same period of 2024. This indicates that while revenues have dropped, the company has made strides in efficiency and cost management.

Keep Inc.'s CEO, Mr. Wang Ning, commented on the pivotal changes occurring within the company. "2025 marks a pivotal chapter as we transform from a content-centric platform into an AI-powered, data-driven fitness agent," he stated. By refocusing its resources on AI technology, Keep aims to dynamically enhance its services, which include customizable workout programs that adapt to individual user needs.

Operational Metrics

The interim results also highlighted a reduction in the average number of monthly active users (MAUs), which fell to 22.5 million from 29.7 million. Nevertheless, the average revenue per user rose slightly to RMB 6.1 from RMB 5.8. Membership penetration saw a climb, indicating growing engagement among existing users.

One of the transformative initiatives introduced this year is the AI Koach Kaka, an innovative coaching feature that has quickly gained traction, with daily active users surpassing 150,000 by July. The dietary logging function has proven particularly popular, emphasizing the value of AI-enabled tools in enhancing user experience in fitness management.

Revenue Breakdown

Keep Inc. reported its revenue sources, which reflected declines across the board. Revenues from self-branded fitness products decreased by 20.9%, while online membership and paid content saw a 22.9% drop. Advertising revenues also fell by 11%. However, the cost of revenues declined significantly by 29.9%, indicating the efficiency measures implemented alongside the strategic transformation efforts.

The company's dedication to operational efficiency is evident in its reduced marketing expenses and optimized advertising costs, enabling Keep Inc. to navigate these turbulent financial waters more effectively. Selling and marketing expenses then amounted to RMB 223.5 million, down from RMB 323.4 million, showing the results of more judicious spending in pursuit of profitability.

Looking Forward

As Keep Inc. moves forward, its focus will remain on improving gross margins and enhancing operational efficiency. The leadership is optimistic about leveraging its AI technology to propel the next phase of growth and re-engage with its user base. The company is expected to capitalize on strategic marketing opportunities to drive product awareness and accelerate business expansion, particularly within its fitness product segments.

Wang concluded with a forward-looking perspective, stating, "We will firmly anchor our development path by advancing AI product innovation to break through scale boundaries and fuel growth momentum for self-branded fitness products. Our long-term sustainable development remains our primary goal."

As Keep Inc. continues on this transformative journey, stakeholders will be watching closely to assess how these changes will unfold in the remaining months of 2025 and beyond.