--- title: "KEEP's Consumer Goods Revenue Accounts for Over 60% in First Half, Membership Business Still Adjusting" type: "News" locale: "en" url: "https://longbridge.com/en/news/296737709.md" description: "Sports Equipment Takes Over from Membership Business" datetime: "2026-08-24T03:58:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296737709.md) - [en](https://longbridge.com/en/news/296737709.md) - [zh-HK](https://longbridge.com/zh-HK/news/296737709.md) generator: "portal-rs" --- # KEEP's Consumer Goods Revenue Accounts for Over 60% in First Half, Membership Business Still Adjusting On August 24, KEEP (03650.HK) announced its interim results for 2026. In the first half of the year, the company achieved revenue of RMB 825 million, a year-on-year increase of 0.4%; net loss during the period was RMB 12.19 million, narrowing by 65.6% year-on-year; under non-International Financial Reporting Standards, adjusted net profit was RMB 5.877 million, a year-on-year decrease of 21.4%. Gross profit totaled RMB 422 million, with a gross margin of 51.1%. Compared to profit figures, the more significant change comes from the revenue structure. In the first half, KEEP's self-branded sports products generated revenue of RMB 483 million, a year-on-year increase of 21.7%, accounting for nearly 60% of the company's total revenue, making it the largest source of income. The gross margin for this business rose from 34.8% in the same period last year to 40.1%. Among these, sports equipment revenue grew by 49% year-on-year, accounting for over 60% of consumer goods revenue. This is related to KEEP's adjustments to its consumer goods business over the past year. Previously, the company scaled back some low-margin categories with relatively lower turnover efficiency, focusing more resources on muscle building, body shaping, yoga, and outdoor sports equipment. In the first half of 2026, the gross merchandise volume for muscle building, body shaping, and yoga categories increased by 63%, 49%, and 33% year-on-year, respectively. In terms of channels, the scale of distribution channels grew by 35% year-on-year, while the Douyin channel saw growth exceeding 50%. Meanwhile, KEEP is also attempting to push its sports equipment overseas. Overseas revenue in the first half exceeded RMB 22 million, currently mainly sold through platforms such as Amazon and TikTok, primarily featuring sports equipment. Compared to domestic business, this portion of revenue remains small in scale and is unlikely to become a major growth source in the short term, but it expands the channel space for the consumer goods business. On the other hand, KEEP's previously core online membership and paid content business continues to face pressure. In the first half, revenue from this business was approximately RMB 246 million, a year-on-year decrease of 26.9%. KEEP's average monthly active users were 18.58 million, with an average of 2.17 million monthly subscribed members, resulting in a membership penetration rate of 11.7%. The decline in user and member numbers directly impacted subscription revenue performance. Advertising and other business revenue was approximately RMB 96 million, a year-on-year increase of 9.3%. However, looking at the usage patterns of existing users, some indicators have improved. In the first half, KEEP's average revenue per monthly active user (ARPU) increased from RMB 6.1 in the same period last year to RMB 7.4, a year-on-year increase of 21.3%; the average monthly exercise duration per monthly active user increased by 15.3% year-on-year. This indicates that despite a decline in the total user base, the company is attempting to enhance the activity levels and monetization efficiency of its existing users. KEEP's operational focus in recent years has gradually shifted from solely pursuing user scale to profitability and business efficiency. In 2025, the company's revenue was RMB 1.637 billion, a year-on-year decrease of 20.7%, but it achieved adjusted profitability for the full year for the first time. Entering the first half of 2026, revenue returned to slight growth, and net losses further narrowed, although adjusted profits declined year-on-year, indicating that the profitability status is not yet stable. AI is a direction where KEEP has significantly increased investment this year. In April, the company launched Keepace.ai, a vertical large model for sports and health, which is currently used for course generation, sports knowledge Q&A, and sports data interpretation. In the first half, KEEP launched over 8,000 AI courses and introduced related capabilities in scenarios such as voice-guided running. The company is also exploring AI membership services and providing services to corporate clients in sports hardware, insurance, and healthcare. These business models are still in the early stages. From the interim report, the issues KEEP currently faces are clear: the consumer goods business has resumed growth, offsetting the decline in membership revenue to some extent, but the company's online user base is still shrinking. Going forward, whether sports equipment can maintain growth, whether the membership scale can stabilize, and whether AI investments can ultimately form a new revenue source remain key variables in judging the sustainability of its profitability. ### Related Stocks - [03650.HK](https://longbridge.com/en/quote/03650.HK.md) ## Related News & Research - [Keep narrows interim loss as it pivots to AI-driven fitness ecosystem](https://longbridge.com/en/news/296717721.md) - [Church & Dwight to Present at the 2026 Barclays Global Consumer Staples Conference | CHD Stock News](https://longbridge.com/en/news/296639951.md) - [General Mills CEO Harmening, COO McNabb to speak at Barclays Global Consumer Staples Conference](https://longbridge.com/en/news/296352264.md) - [Nagacorp 1H FY26 net profit falls 3.2% to US$144 million; revenue drops 8.4% to US$313.2 million](https://longbridge.com/en/news/296777811.md) - [China’s CXMT hits a DRAM production ceiling as global memory prices keep climbing](https://longbridge.com/en/news/296858852.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**