Financial Performance - Zepp Health's revenue for 1Q25 was $38.5 million[7], meeting the guidance range - The company shipped 0.5 million units in 1Q25[8] - Adjusted net loss attributable to Zepp was $18.1 million[8] Revenue Breakdown - In 1Q25, revenue from Xiaomi wearable products accounted for 38.6%[11] while Amazfit-branded wearable products accounted for 61.4%[11] of total revenue - Year-over-year, Xiaomi wearable products revenue decreased by 67.3%[14], while Amazfit-branded wearable products decreased by 32.7%[12] Gross Margin Analysis - The total gross profit in 1Q25 was $14.4 million[17] - The gross margin for Amazfit-branded products was 37.3%[19] in 1Q25 - The gross margin for total products was 37.3%[19] in 1Q25 Operating Expenses - Adjusted operating expenses for 1Q25 included General & Administrative (G&A), Sales & Marketing (S&M), and Research & Development (R&D)[30] - Adjusted operating expenses as a percentage of total revenue were 16.2% for G&A, 35.8% for S&M, and 29.8% for R&D[32] Liquidity and Outlook - Zepp Health's cash and cash equivalents stood at $103.8 million[42] - The company expects net revenues to be between $50 million and $55 million[47] for the second quarter of 2025

Industry Overview - The smart wristband is a wearable smart device that allows users to record real-time data related to exercise, sleep, and diet, syncing this data with their smartphones to guide a healthier lifestyle [1] - The smart wristband industry involves multiple segments, including upstream raw material and component suppliers, midstream device manufacturers, and downstream sales channels and application fields [4][5] Industry Development - The development of smart wristbands in China has progressed through several stages: initial phase, rapid growth phase, mature phase, and is currently in the innovation development phase, focusing on product differentiation and smart upgrades [6] - The market for smart wristbands is projected to grow at an annual rate of 18%, potentially reaching a market size of 21 billion yuan by 2030 [24] Market Size and Sales - In 2024, China's smart wristband market is expected to see a shipment volume of 17.99 million units, representing a year-on-year growth of 20.2% [14] - The total market size for smart wristbands in China is estimated to be approximately 7.78 billion yuan in 2024, driven by the "national subsidy" policy [15] Competitive Landscape - The smart wristband market is characterized by a "dual oligopoly" structure, with Xiaomi and Huawei dominating approximately 85% of the market share [21] - Xiaomi has emerged as the only brand among the top five to achieve growth, largely due to the successful launch of the Xiaomi Band 9, which has enhanced features and performance [21] Policy Support - The Chinese government has implemented various policies to support the development of wearable devices, particularly in health monitoring applications, encouraging advancements in technology and component manufacturing [11][12][13]

Investment Rating - The report provides a positive investment rating for the AI glasses industry, indicating strong growth potential and market opportunities [2]. Core Insights - The AI glasses market is expected to experience significant growth, driven by advancements in technology and increasing consumer interest in augmented reality (AR) applications [12][15]. - Major players in the market include Ray-Ban Meta, which is highlighted for its innovative product offerings and market presence [9][34]. - The report emphasizes the importance of integrating AI and AR technologies to enhance user experience and functionality in AI glasses [10][14]. Summary by Sections AI Glasses Definition and Classification - AI glasses are categorized into three main types: AI-only, AI+AR, and AR-only, each with distinct hardware components and functionalities [10][12]. - Key products in the market include Ray-Ban Meta and INMO GO2, showcasing the diversity in design and technology [9][10]. Current Market Status - The AI glasses market is currently valued at approximately $1 billion, with projections to grow significantly by 2025 [12][15]. - The report notes a competitive landscape with several emerging players alongside established brands, indicating a dynamic market environment [12][34]. Market Trends and Projections - The report forecasts a compound annual growth rate (CAGR) of around 35% for the AI glasses market from 2023 to 2025, reflecting robust demand and technological advancements [15][30]. - Consumer preferences are shifting towards multifunctional devices that combine AI and AR capabilities, driving innovation in product development [12][15]. Key Product Features - AI glasses are characterized by lightweight designs, advanced hardware components, and features such as voice recognition and real-time data processing [10][12]. - The report highlights the importance of user-friendly interfaces and seamless integration with mobile devices to enhance consumer adoption [10][12]. Pricing and Market Segmentation - The pricing for AI glasses varies significantly, with entry-level models starting around $700 and high-end models reaching up to $5000 [30][31]. - The market is segmented into various price ranges, catering to different consumer demographics and preferences [30][31].

深圳一直是全球人工智能眼镜创新的策源地。2025年3月，深圳市工信局发布《深圳市加快推进人工智 能终端产业发展行动计划（2025-2026年）》，将聚焦人工智能手机、人工智能计算机、人工智能平板 电脑、大模型一体机、人工智能可穿戴设备、全屋智能产品等共9大产品品类。到2026年，全市人工智 能终端产业规模达8000亿元以上、力争一万亿元。《行动计划》将智能眼镜列为重点赛道。 记者从联盟揭牌大会上了解到，目前深圳龙岗眼镜产业聚集了1500多家企业，占全市眼镜企业数量 80%，眼镜年产量1.25亿副，在全球高端市场占比超50%，集中了全国90%的高端设计师，形成了完整 产业链。 推动AI眼镜OS开源系统平台研发建设 记者从大会上获悉，凭借移动通信、智能终端、新型显示等领域的全产业链优势，深圳已形成覆盖"芯 片研发-光学设计-整机组装-场景应用"的完整生态。随着国产端侧AI模型性能跃升、产业链自主化程度 提高，目前深圳不仅成为全球AI眼镜创新的策源地，更向"全球AI眼镜第一城"发起冲刺。 锚定"全球AI眼镜第一城"目标，深圳又有动作。南都湾财社从深圳市商业联合会获悉，近日，深圳市AI 眼镜产业联盟正式揭牌，标志着深 ...

Table of Contents Zepp Health Earnings Presentation Second Quarter 2024 Investor Relations 21 August 2024 2Q24 Financial and Operating Results 01 06 2Q24 Revenue and Gross Margin Trend 07 Adjusted Operating Expenses 2 Empowering Health, Inspiring Joy 02 1H24 Financial and Operating Results 03 Revenue 04 2Q24 Gross Margin 05 Business Outlook 1H24 Gross Margin 08 Net Income/ Earnings Performance Liquidity Position 09 10 2Q24 Financial and Operating Results $40.6 Million Revenue • Meeting guidance range Units ...

Zepp Health Earnings Presentation Third Quarter 2024 Investor Relations 18 November 2024 Table of Contents 3Q24 Financial and Operating Results 01 06 3Q24 Revenue and Gross Margin Trend 07 Adjusted Operating Expenses 2 Empowering Health, Inspiring Joy 02 9M24 Financial and Operating Results 03 Revenue 04 3Q24 Gross Margin 05 Business Outlook 9M24 Gross Margin 08 Net Income/ Earnings Performance Liquidity Position 09 10 3Q24 Financial and Operating Results $42.5 Million Revenue • Meeting guidance range 0.7 M ...

Zepp Health Earnings Presentation Fourth Quarter and Full Year 2024 Investor Relations 26 March 2025 Table of Contents 01 06 4Q24 Revenue and Gross Margin Trend 07 Adjusted Operating Expenses 08 Net Income/ Earnings Performance Liquidity Position 09 10 2 Empowering Health, Inspiring Joy 4Q24 Financial and Operating Results 02 FY24 Financial and Operating Results 03 Revenue 04 4Q24 Gross Margin 05 Business Outlook FY24 Gross Margin 4Q24 Financial and Operating Results $59.5 Million Revenue • Meeting guidance ...

Financial Data and Key Metrics Changes - The company ended the quarter with a net asset value (NAV) of $156.8 million or $6.66 per share, a slight decrease from $6.68 per share at the end of the previous year [19][37] - The decrease in NAV per share was primarily driven by a net investment loss, offset by an increase in unrealized appreciation of investments [37] Business Line Data and Key Metrics Changes - OpenAI announced a $40 billion funding round at a $300 billion post-money valuation, significantly up from its previous $7 billion round [9] - CoreWeave completed a $1.5 billion IPO at a valuation of approximately $23 billion, and its stock price increased over 35% post-IPO [11][13] - Canva reported annualized revenue exceeding $6 billion, marking an increase of over 30% year-over-year [15] Market Data and Key Metrics Changes - The Nasdaq experienced its worst quarterly performance since 2022, impacting private market valuations [6][7] - The S&P 500 saw significant volatility, with a drop of up to 12% before rebounding slightly [8] Company Strategy and Development Direction - The company is focused on AI infrastructure and applications, with significant investments in companies like OpenAI and CoreWeave [24] - The management believes the portfolio is well-positioned for future growth, particularly in AI and fintech sectors [23][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's positioning despite ongoing market volatility and uncertainties [8][24] - The company is seeing more investment opportunities than ever, particularly in AI and fintech [42] Other Important Information - The company made a $5 million investment in Plaid, which is expected to be its last private financing before going public [16] - The company has a note repurchase program for its 6% notes due 2026, having repurchased $35.3 million in aggregate principal [34] Q&A Session Questions and Answers Question: Plans for ServiceTitan position post-lockup expiration - Management indicated that they do not view themselves as holders of public securities and would exit the position in normalized market conditions [42] Question: Discount for unregistered shares - The discount applied to CoreWeave and ServiceTitan shares is due to their unregistered status, which will be removed once they are registered [48] Question: Return of capital to shareholders - Management stated that if net realized gains are achieved by year-end, a distribution would be made by then or early in the next quarter [52] Question: OpenAI's valuation and investment mark-up - Management clarified that the investment mark-up reflects a less than 100% increase due to the nature of the valuation adjustments [55]

Financial Data and Key Metrics Changes - Overall sales in Q4 2024 rose by more than 40% quarter over quarter, aligning with guidance despite macroeconomic headwinds and supply bottlenecks [3][21] - Gross margin for 2024 reached 39%, compared to 26.2% for the full year 2023, indicating significant margin expansion [4][23] - Cash on hand at the end of 2024 was $112 million, providing ample runway for market investments [4][30] - Adjusted operating loss for Q4 2024 was $7.4 million, the narrowest in the past four quarters, demonstrating sequential improvement [27][28] - GAAP net loss for Q4 2024 was $36.9 million, including various impairments and deferred tax asset valuation allowances [28] Business Line Data and Key Metrics Changes - The successful launch of the T Rex3 smartwatch significantly boosted sales, establishing a strong market demand [4][21] - The Amazfit Active2 and BIP6 series are expected to expand reach in the entry-level segment, enhancing sales growth in Q2 2025 [7][11] - The T Rex series has outperformed competitors, achieving higher profitability and steady growth [11][12] Market Data and Key Metrics Changes - Global smartwatch sales fell by 7% in 2024, primarily due to a decline in Apple Watch shipments, which fell by 19% [18][19] - Sales in China grew from 19% to 25% of the market, marking a significant shift in market dynamics [19] - The Indian market saw a decline from 30% to 23%, attributed to quality issues with ultra-cheap devices [19] Company Strategy and Development Direction - The company is transitioning towards a brand-empowered, high-margin business model for Amazfit products, focusing on technological innovation and global marketing [3][4] - The strategy includes diversifying the product portfolio beyond smartwatches to include health solutions and lifestyle products [8][12] - Partnerships with athletes and emerging sports organizations are aimed at enhancing brand visibility and market positioning [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory of ZEP Health, emphasizing the importance of a robust product pipeline and strategic partnerships [15][14] - The company anticipates a recovery in the global smartwatch market in 2025, driven by AI features and health data emphasis [20] - Management highlighted the importance of maintaining cost management while investing in R&D and marketing for long-term competitive advantage [25][26] Other Important Information - The company plans to continue its share repurchase program in 2025, reflecting confidence in long-term value [15][31] - Inventory levels were reported at $57 million in Q4, the lowest since 2018, indicating effective inventory management [30] Q&A Session Summary Question: Impact of new tariffs on Chinese smartwatch imports - Management indicated minimal impact on U.S. consumer pricing or gross margin due to proactive supply chain management, with 20% to 25% of overall manufacturing coming from non-China regions [17][35][36] Question: Details on impairment losses and tax increases - The impairment losses were due to investments in upstream and downstream technology companies that did not perform as expected, leading to a $13 million impairment [38][40] Question: Market demand shift towards lower-priced players - Management noted that while the overall market declined, segments like outdoor and sports smartwatches, particularly the T Rex series, gained market share [43][44] Question: Long-term strategy and vision for a global health ecosystem - The company is diversifying its product portfolio and exploring B2B opportunities, aiming to create a comprehensive health ecosystem [52][54] Question: Relationship with Xiaomi and its impact - Management emphasized a strong relationship with Xiaomi while focusing on transforming into a self-branded company to improve profitability [56][58] Question: Stock liquidity and market valuation - Management acknowledged the stock's illiquidity and outlined plans for a stock buyback program, expressing confidence in the company's growth trajectory [62][64]

Financial Data and Key Metrics Changes - Overall sales in Q4 2024 rose by more than 40% quarter over quarter, aligning with guidance despite macroeconomic headwinds and supply bottlenecks [3][21] - Gross margin for 2024 reached 39%, up from 26.2% in 2023, indicating significant margin expansion [4][23] - Cash on hand at the end of 2024 was $112 million, providing ample runway for market investments [4][30] - Adjusted operating loss for Q4 2024 was $7.4 million, the narrowest in the past four quarters, demonstrating sequential improvement [27][28] - GAAP net loss for Q4 2024 was $36.9 million, including various impairments and deferred tax asset valuation allowances [28] Business Line Data and Key Metrics Changes - The successful launch of the T Rex3 smartwatch significantly boosted sales and market demand, establishing a strong position in the outdoor and sports smartwatch segment [5][21] - The Amazfit Active2 and BIP6 series are expected to drive further sales growth in the entry-level segment [7][11] - The T Rex series has outperformed competitors, achieving higher profitability and steady growth [11][12] Market Data and Key Metrics Changes - Global smartwatch sales fell by 7% in 2024, primarily due to a decline in Apple Watch shipments, which dropped by 19% [18][19] - Sales in China grew from 19% to 25% of the market, marking a significant shift in market dynamics [19] - The Indian market saw a decline from 30% to 23% due to issues with ultra-cheap devices [19] Company Strategy and Development Direction - The company is transitioning towards a brand-empowered, high-margin business model, focusing on technological innovation and global marketing [3][4] - A comprehensive smart wearable ecosystem is being built, integrating advanced AI-driven health solutions and performance tracking [14][15] - The strategy includes launching one to two new products every quarter in 2025, aiming for a different demand pattern compared to 2024 [22][61] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about growth in 2025, driven by new product launches and a focus on AI features [20][45] - The company is confident in its long-term growth trajectory, supported by a robust product pipeline and strategic partnerships [15][30] - Despite challenges in 2024, the company effectively managed costs and is positioned for sustained growth [32] Other Important Information - The company is committed to maintaining a lean operating structure while investing in R&D and marketing [25][27] - A share repurchase program will continue in 2025, reflecting confidence in the company's long-term value [15][31] Q&A Session Summary Question: Impact of new tariffs on Chinese smartwatch imports - Management indicated minimal impact due to proactive supply chain management and dual sourcing strategies [17][35] Question: Details on impairment losses and tax increases - Impairment losses were due to investments in upstream and downstream technology companies that underperformed [38][41] Question: Shift in demand towards lower-priced players - Management noted that while the market declined, segments like outdoor and sports smartwatches, particularly the T Rex series, are performing well [43][45] Question: Long-term strategy and vision for a global health ecosystem - The company is diversifying its product portfolio and exploring B2B opportunities while focusing on consumer health solutions [49][52] Question: Relationship with Xiaomi and its impact - The relationship remains strong, but the company is focusing on self-branded products to achieve profitability before expanding revenue with Xiaomi [55][59] Question: Stock liquidity and market valuation - Management acknowledged the stock's illiquidity and emphasized ongoing buyback programs and strategic growth initiatives to enhance market perception [63][65] Question: New product roadmap for 2025 - The company plans to launch multiple new products across different price segments, which is expected to drive significant growth in 2025 [70][73]