KEEP (03650) has released its annual financial results for the period ending December 31, 2025. The group reported revenue of RMB 16.37 billion, with a gross profit of RMB 854 million. The adjusted net profit for the year, measured on a non-IFRS basis, reached RMB 25.216 million, resulting in an adjusted net profit margin of 1.5%.
By deeply integrating online content with fitness products, KEEP remains committed to providing users with accessible and personalized health experiences anytime, anywhere. The year 2025 marks the beginning of KEEP's second decade of strategic development. Operating in the evergreen field of sports and wellness, and in response to rapid advancements in AI technology, the company has decisively initiated a strategic transformation. This shift focuses on reshaping its business around AI-driven fitness and health experiences, while discontinuing operations that do not align with long-term strategic goals. The aim is to achieve more agile, rapid, and sustainable growth through a simplified business model and optimized resource allocation.
Throughout the year, the company consistently executed its established strategy, concentrating on core business segments and improving operational efficiency. This led to a critical turning point: KEEP achieved its first full-year adjusted net profit on a non-IFRS basis, amounting to RMB 25.2 million. The self-sustaining capacity of each business division continued to strengthen, with approximately 60% of the profit generated in the second half of 2025. This represents a significant improvement compared to the adjusted net loss of RMB 470 million recorded in 2024.
Additionally, as part of its long-term AI strategy, the company has completed key upgrades to its underlying infrastructure and achieved phased product implementation, laying a solid foundation for ongoing strategic transformation. For the third consecutive year, KEEP expanded its gross margin, which increased significantly by 5.5 percentage points to 52.2%. This enhancement in operating leverage was driven by several measures, including improving supply chain efficiency through bulk purchasing, engineering cost reductions, and enhanced logistics management, as well as leveraging AI to optimize content costs and operational workflows while improving organizational and personnel efficiency.
In the twelve months ending December 31, 2025, the company's average monthly active users (MAU) and average monthly subscribing members were 21.8 million and 2.7 million, respectively, compared to 29.9 million and 3.2 million during the same period in 2024. Member penetration rose to 12.6% in 2025, up from 10.6% in the previous year. Meanwhile, average monthly revenue per MAU increased by 8.9% year-over-year to RMB 6.3, compared to RMB 5.8 in 2024.
During the phase of AI infrastructure investment and product iteration, the company proactively reduced customer acquisition spending, focusing instead on engaging its core user base. As a result, the user base exhibited a shift in composition: while overall numbers fluctuated, the structure improved. Users who departed were primarily low-frequency exercisers motivated by temporary trends, whereas core users solidified into a group with consistent workout habits—particularly in outdoor activities such as running and cycling. Approximately 70% of the core user base consists of individuals under 30 years of age, who demonstrate strong exercise awareness and growing purchasing power.
In 2025, the optimized user structure translated into tangible improvements in engagement. The daily active user (DAU) exercise rate increased by 5.3 percentage points year-over-year to 57.8%. The average monthly exercise time per MAU grew by 6.9% compared to the previous year, and the DAU retention rate from one day to the next rose by 2.7 percentage points to 41.7%. These metrics indicate stronger activity and loyalty among core users. Moving forward, the company will continue to align its products with user needs and integrate AI capabilities throughout the user journey. Efforts will focus on enriching content offerings, refining audience segmentation, deepening user engagement, and enhancing multi-category exercise experiences.