KEEP(03650) released its annual performance report, with adjusted net profit reaching 25.216 million RMB. The gross profit margin increased to 52.2%, as the company started its AI strategic transformation.

As of the deadline of 31st December 2025, the annual performance of Keep (03650) showed a group revenue of 1.637 billion RMB, a gross profit of 854 million RMB, an adjusted net profit (non-International Financial Reporting Standards measurement) of 25.216 million RMB, and an adjusted net profit margin of 1.5%. With the deep integration of online content and fitness products, Keep has always been committed to providing users with personalized and anytime, anywhere health experiences. 2025 marks the beginning of the second decade of Keep's strategic plan. Anchored in the evergreen track of sports health, facing the surging wave of AI technology iteration, the company firmly launched a strategic transformation, focusing on AI-driven sports health experiences and ecosystem revamping business, abandoning businesses that do not align with long-term strategic goals, aiming to achieve lighter, faster, and healthier development with a purer business essence and resource intensity. The company steadfastly executed its established strategies throughout the year, focusing on key sectors and optimizing operational efficiency. The company reached a turning point, for the first time achieving a full year profit after adjustments (adjusted net profit reached 25.2 million RMB), with self-sufficiency capabilities in all business sectors continuing to strengthen, with around 60% of it coming from the second half of 2025, significantly improving from a net loss of 470 million RMB in 2024. In addition, in the long-term AI strategy, the company has completed key iterations of the underlying structure and achieved phased landing of products, laying a solid foundation for long-term strategic transformation. In 2025, the company achieved an expansion of its gross profit margin for the third consecutive year, significantly increasing by 5.5 percentage points to 52.2%, effectively enhancing the company's operating leverage. The main measures include: 1) improving supply chain efficiency through scale procurement, cost reduction in engineering, and logistics management; and 2) optimizing content costs and business flow efficiency through AI technology, while synchronously improving organizational efficiency and personnel effectiveness. In the twelve months ending 31st December 2025, the company's average monthly active users (MAU) and average monthly subscription members were 21.8 million and 2.7 million respectively, compared to 29.9 million and 3.2 million in the same period in 2024. The membership penetration rate in 2025 increased to 12.6%, up from 10.6% in the previous year; while the average monthly revenue per active user increased by 8.9% compared to 2024, reaching 6.3 RMB. During the period of AI infrastructure investment and product iteration, the company proactively reduced customer acquisition costs, focusing on core user engagement. The user structure showed characteristics of fluctuations in total numbers and optimization: lost users were mainly low-frequency exercise groups driven by trends, while core users settled as people with stable exercise habits (especially in outdoor vertical groups such as running and cycling), with users under 30 contributing about 70% of the base, possessing good exercise mentality and growing consumption capabilities. In 2025, the optimization of the user structure further translated into substantial improvements in engagement: the sports rate of Daily Active Users (DAU) increased by 5.3 percentage points to 57.8% year-on-year, the average monthly exercise time of MAU increased by 6.9% year-on-year in 2025, and the next day retention rate of DAU increased by 2.7 percentage points to 41.7%. The activity and stickiness of core users continued to strengthen. As the user structure continues to evolve, the company will focus on the adaptation of products and demand, as well as the integration of AI capabilities in the user journey. In the future, the company will continue to deepen content supply and improve refined operation of user groups, deepen user mentality, and enhance the multi-category sports experience.