The contribution of AI behind the first-time profit: Keep (03650) enters the performance verification period.

In early spring of 2026, Keep (03650) submitted a financial report that was enough to redefine its valuation logic. On February 24th, Keep released a positive profit forecast. The data shows that as of the end of December 31, 2025, the company recorded a net profit of approximately 25 million yuan after adjusting for non-international financial reporting standards. This is the first time in ten years that Keep has achieved annual profit, marking a fundamental turning point in its operating fundamentals. At the same time, the announcement disclosed that the company's owner's share of losses narrowed significantly by about 87% compared to the same period last year, indicating a significant improvement in profitability and operational efficiency. Behind this breakthrough in performance is the systematic implementation of the "AI Focus + Business Optimization" dual-drive strategy. Under the strategic guidance of fully embracing artificial intelligence, Keep is completing a valuation leap from an internet tool-type platform to a provider of intelligent health solutions. With the continuous release of data accumulation in vertical scenes and the leverage of technology, Keep has the potential to become the first national-level AI application in the sports and health field to run a commercial closed-loop. Supply-side reform: "Quality squats" lead to sustainable "jumps" In the first half of 2025, Keep achieved revenue of 822 million yuan, an adjusted net profit of 10.35 million yuan, and a gross profit margin increased from 46.0% in the same period last year to 52.2%. The full-year profit forecast further confirmed the sustainability of this improvement trend. This is the result of a precise "supply-side reform": optimizing business portfolios, improving resource allocation efficiency, and reshaping the profit base. In 2025, the company showed clear strategic determination by focusing resources on high-margin core tracks - sports equipment and apparel. The result of this choice was that despite the reduction in total revenue scale, the business structure tended towards health. The announcement shows that in the second half of 2025, the decline in sales of own-brand fitness products stabilized, with the core fitness equipment category reversing its downward trend and achieving over 20% year-on-year growth. This rebound is a result of Keep's shift from "scale first" to "quality first" strategy. When consumer goods businesses no longer focus on general coverage but provide high-value products around core runners, yoga enthusiasts, and other vertical scenes, a positive cycle of brand assets and user value is established. The resonance effect of online content and offline consumption is driving the "dual-drive" model from a strategic narrative to cash flow implementation. Profit logic: AI reshapes the business model from "concept" to "productivity" If business optimization is efficiency improvement at the "throttle" level, then AI is the underlying DRIVE for Keep to achieve "open source" growth. The financial performance and operational data from the past year demonstrate that AI has transformed from a strategic slogan to an actual productivity factor. Keep's application of AI is not just superficial but deeply integrated into the service chain of sports and health, shifting from a "tool attribute" to an "intelligent service body" paradigm. Firstly, upgraded user experience drives payment conversion. Keep, based on the vertical field-exclusive model Kinetic.ai, continues to iterate the general AI coach "Kaka," which covers the entire service capability chain, including intelligent solution generation, real-time training guidance, multimodal data recording, and dietary assessment. Secondly, operating leverage effects and marginal cost optimization. Keep replaces high-cost human services with AI in content production (AIGC course generation) and real-time guidance, achieving cost savings through technology. Currently, AI covers the concurrent service needs of millions of users at nearly zero marginal cost, which is the underlying logic behind Keep's gross profit margin increasing from 46.0% to 52.2% - technology leverage is reconstructing its cost curve. Thirdly, business model reshaping and opening up incremental space. The AI coach systematically responds to the three major pain points of "not knowing how to exercise, not knowing how to eat, and difficulty persisting," driving the user payment model from "buying out content" to "subscribing for services." This means that AI has evolved from a functional module to an independent revenue growth driver, pushing Keep's revenue structure from the traditional "content + hardware" binary model to a strategic transformation of the "content payment + hardware sales + intelligent services" trinary model, opening up new valuation space. Flywheel effect release: From "internet tools" to "provider of intelligent health solutions" The profit forecast for 2025 has prompted the market to rethink Keep's underlying assets and business essence - Keep is completing a valuation paradigm shift from "monetizing traffic" to "technology services." The core driving force behind this valuation leap is the bidirectional empowerment of data assets and AI capabilities. Over the past decade, Keep has accumulated billions of user exercise data, building a vertical domain data barrier that any internet giant would find difficult to replicate. As AI models penetrate from general capabilities to vertical scenes, Keep's data accumulation is rapidly transforming into technological barriers, forming an enhanced loop of "data-driven AI, AI feeding back experience." It is believed that redefining Keep's strategic positioning is timely. Today, Keep should be defined as a "provider of intelligent health solutions." Its business logic has been constructed as a clear three-layer structure: front-end touch layer - achieving high-frequency scene touch and brand mind share through its own-brand consumer products, building offline traffic entry; middle service layer - relying on AI coaches to provide personalized, real-time intelligent services, improving user retention and payment conversion, building competitive moats; back-end capability layer - reducing content production costs through AIGC technology, while iterating products based on user data, forming a self-evolution mechanism of capabilities. This three-layer closed loop is unleashing a powerful "flywheel effect": front-end touch brings user increments, middle services enhance user value, back-end capabilities feed back to front-end experience, all enhancing each other. The market has formed a clear consensus: Keep's profitability is not a fortuitous financial operation but a sustainable state after strategic realignment, and its valuation logic should be redefined to reflect its reconstructed business essence and pricing. The future is here: the sports and health track may become a breeding ground for national-level AI applications In the race to implement AI technology, companies that can lead in running a "service loop" in vertical scenes will grasp the entry ticket for the next round of growth. Keep has the endowed conditions to take on this historic opportunity. In terms of market space, sports and health have an essential demand that is suitable for the masses. According to industry data, the number of people who regularly exercise in China has exceeded 500 million and continues to grow steadily. This huge user base provides a natural soil for the birth of national-level applications. In terms of capability reserves, Keep's AI coach has transitioned from "passive response" to "active service." From a business validation perspective, the first annual profit in 2025 is the starting line for its move into the deep waters of AI. While many technology companies are still exploring AI areas and have not found clear monetization paths, Keep has leveraged its data endowment and scene advantages to establish a positive cycle from technology investment to business returns. Looking ahead, as AI technology continues to deepen its penetration into vertical industries, the sports and health track is expected to become an important incubation ground for national-level AI applications. With its first-mover advantage in data accumulation, scene understanding, and business validation, Keep is positioned at the forefront of this trend. A truly national-level intelligent health application may soon emerge in this track. In conclusion, Keep's first annual profit in 2025 is a natural result of the systematic implementation of its "AI focus" and "business optimization" dual-drive strategy. By divesting inefficient businesses, the company has optimized its asset structure and cost curve, building a healthy operational body. By fully embracing AI, the company has iterated its service form and business model, injecting sustainable growth momentum. This milestone not only marks a fundamental turning point in Keep's operating fundamentals but also heralds the redefinition of the valuation logic in the sports technology industry in the AI era. From "internet tools" to "provider of intelligent health solutions," Keep's strategic transition is now clear. Looking to the future, the company's core proposition is to transform AI capabilities into a national-level health service platform, driving profitability advancement through continuous technological iteration and gradually turning market imagination into verifiable financial performance and business reality.