Financial Data and Key Metrics Changes - Full-year revenue for 2021 reached 6.125 billion RMB, representing a nominal year-over-year growth of 1% [6][16] - Q4 2021 total revenue was 1.7 billion RMB, a decrease of 15.8% year-over-year, primarily due to a decline in Xiaomi product sales and supply chain challenges [16][18] - Net income attributed to Zepp Health for Q4 2021 was 36 million RMB, down from 150 million RMB in Q4 2020 [23] Business Line Data and Key Metrics Changes - Self-branded products accounted for over 47% of total revenue in 2021, up from 31% in 2020, and contributed over half of the gross profit [19] - Shipments of self-branded products increased by 60% in 2021 despite supply chain challenges [16][19] - Gross margin for Q4 2021 was 19.3%, a slight improvement of 30 basis points compared to Q4 2020, supported by a higher proportion of self-branded products [19] Market Data and Key Metrics Changes - Self-branded product shipment volumes in North America increased by approximately 200% year-over-year [7] - Shipments to Italy and France increased by more than 100% in Q4 2021 [7] - Zepp Health ranked number 5 in the global adult smartwatch market according to IDC data for Q4 2021 [7] Company Strategy and Development Direction - The company aims to enhance its product capabilities and brand recognition globally while expanding its smart health ecosystem [8][14] - Plans to launch an AI sleep service and integrate investments in imaging technology to empower users in managing health data [9][14] - The company is focusing on vertical integration to strengthen capabilities in chips, cloud services, algorithms, and operating systems [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming supply chain challenges, expecting improvements in the second half of 2022 [17][24] - The ongoing COVID-19 pandemic and geopolitical tensions, particularly the Russia-Ukraine conflict, pose risks to revenue but are manageable in the short term [34][60] - Guidance for Q1 2022 is conservative, with expected net revenues between 0.75 billion and 1 billion RMB, down from 1.15 billion RMB in Q1 2021 [25] Other Important Information - The company announced a special cash dividend of US$0.025 per ordinary share and continued its share buyback program [15][23] - The company has seen a strong increase in its active user base, surpassing 40 million by the end of 2021 [8] Q&A Session Summary Question: Impact of chip shortage on gross margin - Management indicated that a shift towards self-branded products, which have higher gross margins, helped improve overall gross margin despite chip shortages [29][30] Question: Marketing strategy changes in uncertain global environment - Management stated that the marketing strategy remains unchanged, although they are monitoring risks related to the Russia-Ukraine situation [34] Question: Sales performance of the newly launched GT 3 series - The GT 3 series has received positive feedback and is performing well, although supply chain issues have limited potential sales [38] Question: Timeline for regulatory approval of GT 3 series - Management expects a shorter timeline for Chinese regulatory approval, with potential certifications for European and U.S. markets following [40] Question: Current state of the European market - Apart from Russia and Ukraine, the European market is experiencing healthy growth, with strong performance in Western Europe [42] Question: Risks associated with Xiaomi product shipments - Management confirmed a strong ongoing relationship with Xiaomi and noted that while the band market is declining, Xiaomi maintains a significant market share [46][47] Question: R&D expenditure trends - R&D expenses have decreased as a percentage of revenue due to fewer new product launches, but the company remains committed to R&D investment [49][51] Question: COVID-19 impact on manufacturing capacity - COVID-19 has created logistical challenges and impacted sales, particularly during lockdowns in key regions [53][54] Question: Semiconductor supply challenges - Management anticipates improvements in semiconductor supply by the second half of 2022, although challenges may persist in Q2 [56][57]

Zepp Health Corporation (NYSE:ZEPP) Q3 2021 Earnings Conference Call November 16, 2021 7:30 AM ET Company Participants Grace Zhang - Director-Investor Relations Wang Huang - Chairman of Board of Directors & Chief Executive Officer Leon Deng - Chief Financial Officer Mike Yeung - Chief Operating Officer Conference Call Participants Clive Cheung - Credit Suisse Kevin Chen - China Renaissance Marcel Muench - DONGXii Operator Hello, ladies and gentlemen. Thank you for standing by to Zepp Health Corporation Thi ...

Financial Performance (Q3 2021) - Revenue decreased by 28.1% from RMB 2,235.1 million in 3Q20 to RMB 1,606.1 million (US$249.3 million) in 3Q21[7, 21] - Adjusted net income attributable to Zepp decreased by 45.8% from RMB 120.8 million in 3Q20 to RMB 65.5 million (US$10.2 million) in 3Q21[13] - Gross margin slightly decreased from 20.6% in 3Q20 to 20.2% in 3Q21[21] Financial Performance (9M 2021) - Revenue decreased by 2.9% from RMB 4,588.5 million in 9M20 to RMB 4,460.8 million (US$712.1 million) in 9M21[7, 21] - Adjusted net income attributable to Zepp increased by 2.1% from RMB 165.5 million in 9M20 to RMB 168.9 million (US$26.2 million) in 9M21[13] - Gross margin remained the same at 21.5% compared to last year[21] Product Performance - Xiaomi wearable products revenue decreased by 44.7%[7] - Self-branded wearable products revenue increased by 37.9%[7] Business Outlook - The company expects net revenues to be between RMB 1.75 billion and RMB 2.0 billion for the fourth quarter of 2021, compared with RMB 1.97 billion in the fourth quarter of 2020[17]

Zepp Health Corporation (NYSE:ZEPP) Q2 2021 Earnings Conference Call August 19, 2021 8:00 AM ET Company Participants Grace Zhang - Director of Investor Relations Huang Wang - Chairman of Board of Directors & Chief Executive Officer Leon Deng - Chief Financial Officer Mike Yeung - Chief Operating Officer Conference Call Participants Clive Cheung - Credit Suisse Andre Lin - Citi Marcel Münch - DONGXii Operator Hello, ladies and gentlemen, thank you for standing by for Zepp Health Corporation Second Quarter 20 ...

Zepp Health Corp (NYSE:ZEPP) Q1 2021 Earnings Conference Call May 13, 2021 8:00 AM ET Company Participants Grace Zhang - Director, IR Huang Wang - Founder, Chairman & CEO Leon Deng - CFO Conference Call Participants Clive Cheung - Crédit Suisse Andre Lin - Citigroup Michelle Zhang - China Renaissance Securities Operator Hello, ladies and gentlemen, thank you for standing by for Zepp Health Corp.'s First Quarter 2021 Earnings Conference Call. [Operator Instructions]. I will now turn the call over to your hos ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 20% year-over-year, driven by the shipment of 15.9 million units, which is an increase of 16.1% from the previous year [8][20] - Gross margin decreased by 460 basis points year-over-year, primarily due to product mix and the higher volume of lower-margin Xiaomi products [21][22] - Operating expenses increased by 51.3% year-over-year, comprising 17% of revenue compared to 13.5% in the previous year [24] Business Line Data and Key Metrics Changes - The largest portion of revenue growth was attributed to the Xiaomi Mi-Band 5, alongside new product launches under the company's own brand [20] - R&D expenses increased by 38.8% year-over-year, comprising 7.7% of revenue, while sales and marketing expenses rose by 104.2% year-over-year, making up 5.2% of revenue [22][23] Market Data and Key Metrics Changes - The company achieved a market share of number one in Spain and Indonesia, with significant growth in the Indian market (323.7%) and Western Europe (241.6%) [12] - International shipments accounted for 49.5% of total shipments in the third quarter [12] Company Strategy and Development Direction - The company is focused on innovation and expanding its product portfolio, having launched five new smartwatch products in the third quarter [8][9] - The strategy includes geographic expansion and partnerships, such as the extended cooperation with Xiaomi and the introduction of products in over 2,800 Walmart stores in the U.S. [11][13] - The company is also engaging in academic research projects to enhance healthcare services through its wearable devices [15][16] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of COVID-19 on future sales, particularly with new lockdowns in key markets [24][25] - The guidance for fourth quarter 2020 net revenues is expected to be between RMB 1.95 billion and RMB 2.15 billion, reflecting current market conditions [25] Other Important Information - The company appointed a new independent director and a new Chief Financial Officer, enhancing its leadership team [17][19] - The cash position remained strong, with cash and cash equivalents of RMB 2,556 million, up 42% from the previous year [24] Q&A Session Summary Question: Concerns about gross margin sustainability - Management acknowledged that the gross margin is affected by the product mix, particularly with Xiaomi products, but expects it to stabilize and potentially improve in the future [28][30] Question: R&D and sales and marketing investments - Management emphasized the importance of long-term investments in R&D and sales and marketing to build a foundation for future growth, especially as the pandemic subsides [31][32] Question: Health monitoring functionalities in smartwatches - Management noted the increasing consumer adoption of health monitoring features and the barriers related to medical device certification [34][35] Question: Distribution channel expansion for Amazfit products - Management reported meaningful progress in expanding distribution channels, including entry into Walmart stores and partnerships with major online platforms [48] Question: Shipment growth outlook for Xiaomi Band and Amazfit products - Management indicated that while the Xiaomi Band market may stabilize, they expect continued growth in their own branded products alongside gross margin expansion [50]

Financial Data and Key Metrics Changes - Revenues in Q2 2020 increased by 9.5% to RMB1.137 billion from RMB1.039 billion in Q2 2019 [15] - Unit sales grew by 7.2% year-over-year, with a total of approximately 8.9 million units sold [14] - Gross profit decreased by 8.6% to RMB253.4 million, resulting in a gross margin of 22.3%, down from 26.7% a year ago [15][16] - Operating income for Q2 2020 was RMB9.4 million, down from RMB22.1 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - Smartwatch shipments grew by 30% year-over-year in Q2 2020, indicating strong demand for the company's main brands [6] - The launch of Xiaomi's Mi Band 5 contributed to product shipments, with a focus on transitioning from older models [6][16] Market Data and Key Metrics Changes - The company experienced a significant impact from COVID-19, affecting retail sales globally, particularly in the Americas and Europe [16] - Despite the pandemic, the company anticipates a strong recovery in sales, particularly for its branded products in both domestic and overseas markets [37] Company Strategy and Development Direction - The company is focused on connecting health with technology, with a strategy to expand into healthcare services globally [11][7] - Investment in R&D remains a priority, with a 25% increase in R&D expenses to RMB117.2 million, reflecting a commitment to innovation and product development [18] - The introduction of the Zepp brand aims to target a different audience with a focus on digital health solutions [32] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenges posed by COVID-19 and expects a strong second half of 2020 [13][22] - The company anticipates net revenues for Q3 2020 to be between RMB2.1 billion and RMB2.15 billion, representing a 13% to 16% increase from Q3 2019 [22] Other Important Information - The company is engaged in R&D related to COVID-19 detection signals, showcasing its commitment to addressing current health challenges [18] - The partnership with Prudential Corporation Asia aims to integrate health metrics into digital health applications, expanding the company's reach in the healthcare sector [10][33] Q&A Session Summary Question: Sales and marketing expenses in Q2 - Management highlighted that expenses were directed towards channel expansion in Europe and Southeast Asia, including hiring new personnel [25] Question: R&D expectations for the second half of 2020 - Management expects R&D expenses to remain moderate in the second half of 2020 and early 2021, despite anticipated revenue growth [26] Question: Status of contract renewal with Xiaomi - Management indicated a strong relationship with Xiaomi, emphasizing that contract negotiations are ongoing and optimistic for future agreements [27] Question: Strategy for the Zepp brand - The Zepp brand is aimed at a different audience, focusing on digital health solutions and stylish product features [32] Question: Geographic sales distribution and recovery in overseas markets - Management noted that a significant portion of Amazfit products is sold overseas, particularly in Europe and Southeast Asia, with improvements expected as the pandemic situation stabilizes [41] Question: Pricing trends and average selling price - Management acknowledged that the average selling price was affected by discounts on older models but expects an increase in ASP with the launch of Mi Band 5 [45] Question: Product mix contribution in the next quarter - Management anticipates a similar product mix as previous quarters, with a 70-30 split between Xiaomi and self-branded products [47]