On August 24th, Keep (03650. HK), a sports technology company, released its financial report showing that it achieved revenue of 825 million yuan in the first half of the year, a year-on-year increase of 0.4%; A loss of 12.19 million yuan was recorded, a significant decrease of 65.6% year-on-year; Adjusted net profit of 5.88 million yuan under non International Financial Reporting Standards.

In the first half of the year, Keep's own brand sports products exceeded half and approached 60% for the first time, becoming Keep's largest source of revenue, with a specific revenue of 483 million yuan, a year-on-year increase of 21.7%.

During the earnings conference call, Xu Ce, Chief Financial Officer of Keep, stated that the consumer market was not strong in the first half of the year, but Keep's consumer goods business significantly outperformed the market. The core reason for this is the improvement of product strength and the improvement of channels. Among them, the equipment category is the main engine driving growth, with indoor equipment increasing by about 50% year-on-year and outdoor equipment increasing by about 18% year-on-year. Keep has shifted its equipment category strategy from single SKU competition to scenario based series packaging, focusing on the combination sales of yoga, muscle building, and weight loss scenarios, increasing repurchase rates and reducing the volatility risk of individual products. From the category data, in the first half of 2026, the total transaction volume of products in the muscle building, shaping, and yoga categories increased by 63%, 49%, and 33% year-on-year, respectively.

In terms of channels, the scale of distribution channels increased by 34% year on year, and the Tiktok channel increased by more than 50%. In the first half of 2026, Keep's sales and marketing expenses increased by 4.9% year-on-year, mainly due to an increase of 11.1 million yuan in service fees and commission fees paid to third-party e-commerce platforms.

Keep founder Wang Ning stated during the earnings call that platform e-commerce remains the cornerstone of the business, thanks to the integration and efficiency improvement of the supply chain. In the first half of the year, the turnover days of consumer goods inventory were reduced by 5 days year-on-year, and the gross profit margin of consumer goods increased from 34.8% in the same period last year to 40.1%.

At the same time, Keep is also trying to expand its sports equipment overseas. In the first half of the year, overseas revenue exceeded 22 million yuan, mainly sold through platforms such as Amazon and TikTok, with a focus on sports equipment. Wang Ning stated that this portion of revenue is still relatively small and is unlikely to become the main source of growth in the short term, but it has opened up broader channel space for the consumer goods business.

On the other hand, Keep's core online membership and paid content businesses are still under pressure. In the first half of the year, the revenue of this business was about 246 million yuan, a year-on-year decrease of 26.9%. The average monthly active users of Keep are 18.58 million, with an average monthly subscription membership of 2.17 million and a membership penetration rate of 11.7%. The decline in the number of users and members directly affects the performance of subscription revenue.

Wang Ning explained that the average monthly active users and subscribed members decreased in the first half of the year due to the loss of some users with low exercise willingness; In the context of a decrease in the total number of users, the company is focusing on improving the activity and monetization efficiency of existing users. According to the financial report, the average monthly revenue per active user of Keep increased from 6.1 yuan in the same period last year to 7.4 yuan in the first half of the year, a year-on-year increase of 21.3%; The average monthly exercise time of active users increased by 15.3% year-on-year.

AI is one of Keep's main investment directions this year. In April, Keep released the sports and health vertical model Keepaceai， Currently used for course generation, sports knowledge Q&A, and sports data interpretation. In the first half of the year, Keep launched over 8000 AI courses and introduced related capabilities in scenarios such as voice assisted running.

In addition, Keep is also exploring AI membership and providing services to enterprise customers such as sports hardware, insurance, and healthcare. Wang Ning revealed that the B2B business model is exploring various methods such as platform subscriptions, project-based services, and token call volume billing, with a large potential for commercialization. But currently, the contribution of related businesses to revenue is not yet significant.