First annual profit! Keep announces expected adjusted net profit of 25 million yuan in 2025

Sports technology company Keep (03650.HK) issued an announcement on the Hong Kong Stock Exchange, providing a profit forecast for the 2025 fiscal year. The announcement states that, within the 12 months ending December 31, 2025, the company’s attributable loss to owners was approximately 72 million yuan (RMB), narrowing by about 87% compared to the 535 million yuan loss in the previous year. Under non-International Financial Reporting Standards (IFRS), Keep recorded an adjusted net profit of about 25 million yuan for 2025, turning a profit from the adjusted net loss of 470 million yuan in 2024.

The announcement points out that the improvement in the company’s profitability is mainly due to the strategic focus on AI development and business structure optimization, which has begun to show results. Additionally, through refined operations across all business lines, the efficiency of each business segment has been comprehensively improved, and the revenue share of high-margin businesses has continued to expand. Based on this, Keep achieved sustained expansion of gross profit margins across all business segments in 2025, and implemented effective cost control through marketing optimization, supply chain improvements, increased workforce efficiency, and administrative efficiency enhancements.

The announcement states that Keep’s strategic focus remains centered on two core pillars: enhancing AI capabilities and upgrading proprietary brand products. In terms of AI intelligence, the company will accelerate the exploration and development of large language models for sports and health, AI agents, and AIGC, to increase user engagement, enrich content generation, and improve user experience. Regarding the upgrade of proprietary fitness products, the company will focus on user groups and sports scenarios, promoting the development and iteration of advantageous and high-potential categories, optimizing channel strategies, and expanding market coverage.

In early 2025, Keep founder Wang Ning issued a company-wide letter commemorating the 10th anniversary of Keep’s founding and announced the company’s all-in AI strategy, stating that based on ten years of sports data accumulation and insights, online fitness will evolve from recommendation to generation, continuing to lead the sports technology industry.

Subsequently, Keep released a dedicated model for the sports health vertical called Kinetic.ai, and launched its first general AI coach, Kaka, based on this model. It is reported that Kaka has undergone multiple iterations and offers functions such as intelligent sports plan generation, smart training guidance, sports data recording, dietary logging, and evaluation.