Zepp Health Corp (ZEPP) 2025 Q2 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for Zepp Health Corporation's second-quarter 2025 earnings conference call. (Operator Instructions) Today's conference call is being recorded.

女士們、先生們，大家好，感謝您參加 Zepp Health Corporation 2025 年第二季財報電話會議。（操作員指示）今天的電話會議正在錄音。

I will now turn the call over to your host, Ms. Grace Zhang, Director of Investor Relations for the company. Please go ahead, Grace.

現在我將電話轉給主持人、公司投資人關係總監 Grace Zhang 女士。請繼續，格蕾絲。

Hello, everyone, and welcome to Zepp Health Corporation's second-quarter 2025 earnings conference call. The company's financial and operating results were issued in a press release via the Newswire services earlier today and are posted online. You can also view the earnings press release and slides referred on this call by visiting the IR section of the company's website at ir.zepp.com.

大家好，歡迎參加 Zepp Health Corporation 2025 年第二季財報電話會議。該公司的財務和經營業績於今天早些時候透過新聞專線服務以新聞稿形式發布並在網路上發布。您也可以造訪公司網站 ir.zepp.com 的 IR 部分，查看本次電話會議上提到的收益新聞稿和投影片。

Participating in today's call are Mr. [Wang Huang Wang], our Chairman of the Board of Directors and Chief Executive Officer; and Mr. Leon Deng, our Chief Financial Officer. The company's management will begin with prepared remarks, and the call will conclude with a Q&A session. Mr. Mike Yeung, our Chief Operating Officer, will join us for the Q&A session.

參加今天電話會議的有我們的董事會主席兼執行長王黃旺先生和我們的財務長 Leon Deng 先生。公司管理階層將以準備好的發言開始會議，最後以問答環節結束。我們的營運長 Mike Yeung 先生將參加我們的問答環節。

Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties are included in the company's annual report on Form 20-F for the fiscal year ended December 31, 2024, and other filings as filed with the US Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，該公司的實際結果可能與今天表達的觀點有重大差異。有關此風險和其他風險及不確定因素的更多信息，包含在公司截至 2024 年 12 月 31 日的財政年度的 20-F 表年度報告以及向美國證券交易委員會提交的其他文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

Please also note that Zepp's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial information. Zepp's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

另請注意，Zepp 的收益新聞稿和本次電話會議包括未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務資訊的討論。Zepp 的新聞稿包含未經審計的非 GAAP 指標與未經審計的最直接可比較 GAAP 指標的對帳。

I'll now turn the call over to our CEO, Mr. Wang Huang Wang. Please go ahead.

現在我將電話轉給我們的執行長王黃旺先生。請繼續。

Thank you, everyone, for joining us today. I'm excited to share that Zepp Health delivered an exceptional performance in the second quarter of 2025, achieving a remarkable 46% year-over-year increase in revenue to $59.4 million. All revenue contributed by Amazfit brand. This is impressive not only on its own merit, but also as it marks our first quarter of year-over-year revenue growth since the second quarter of 2021, a significant milestone in our business transformation and this is just the beginning of our growth trajectory. We are confident these initiatives are forging a robust operational and financial foundation to support sustained long-term growth.

感謝大家今天加入我們。我很高興地告訴大家，Zepp Health 在 2025 年第二季取得了出色的業績，營收年增 46%，達到 5,940 萬美元。所有收入均由Amazfit品牌貢獻。這不僅本身就令人印象深刻，而且標誌著我們自 2021 年第二季以來首次實現營收年增，這是我們業務轉型的一個重要里程碑，而這只是我們成長軌蹟的開始。我們相信，這些舉措正在打造強勁的營運和財務基礎，以支持長期持續成長。

After years of refining product competitiveness, building brand awareness, and fostering user trust, our strategic vision has never been clear or more resolute. Our core product lines vividly embody our guiding philosophy; training, recover, evolve.

經過多年打磨產品競爭力、打造品牌知名度、培養用戶信任度，我們的策略願景從未如此清晰、如此堅定。我們的核心產品線生動地體現了我們的指導理念：訓練、恢復、發展。

In the second quarter, our adventure series, the T-Rex smartwatch, maintained its competitive edge with sustained volume growth. It is setting new standards in the premium outdoor smartwatch category with extreme durability, unmatched battery life, and advanced sports modes like HYROX race and training mode.

第二季度，我們的探險系列T-Rex智慧手錶維持了競爭優勢，銷售持續成長。它以極高的耐用性、無與倫比的電池壽命以及 HYROX 比賽和訓練模式等先進的運動模式為高端戶外智慧手錶類別樹立了新的標準。

Our adventure series is strengthening our credibility among endurance sports professionals and high-performance users, an audience pivotal to our long-term premiumization strategy. Moreover, we introduced a new integrated solution for training and recovery with Balance 2 smartwatch and the Helio Strap.

我們的冒險系列正在加強我們在耐力運動專業人士和高性能用戶中的信譽，這些受眾對於我們的長期高端化策略至關重要。此外，我們還推出了新的整合訓練和恢復解決方案，即 Balance 2 智慧手錶和 Helio Strap。

The Balance 2 is designed for multisport athletes offering advanced checking for various sports, heart rate variability, and recovery insights. Priced at $299, this flagship integrates 40,000-plus golf maps worldwide with a 1.5-inch high brightness sapphire crystal display for clear outdoor visibility, a 100-meter water resistance for scuba diving, industrial-leading GPS accuracy with patents circularly polarized antenna technology for urban canyons, and AI-powered Zepp Coach for runners. This all-in-one device consolidates capabilities typically requiring multiple watches from competing brands. As the most premium offering in Amazfit's mainstream lineup to date, the Balance 2 flagships expands our user base and sets a solid foundation for future growth.

Balance 2 專為多項運動運動員設計，提供各種運動、心率變異性和恢復見解的進階檢查。這款旗艦產品售價 299 美元，集成了全球 40,000 多張高爾夫地圖，配備 1.5 英寸高亮度藍寶石水晶顯示屏，可在戶外提供清晰的可視性，具有 100 米防水功能，可用於水肺潛水，具有行業領先的 GPS 精度，並採用適用於城市峽谷的專利極化天線技術，以及作為圓極化這款一體化設備整合了通常需要多個競爭品牌的手錶才能實現的功能。作為 Amazfit 主流產品線迄今為止最優質的產品，Balance 2 旗艦產品擴大了我們的用戶群，並為未來的發展奠定了堅實的基礎。

The Helio Strap Amazfit first screen-free fitness, recovery, and sleep tracker have garnered extensive praise from KOLs and high customer acclaim, helping us tap into a new and underserved market niche. It offers subscription-free 24/7 health monitoring and advanced AI-driven smart training and recovery metrics. And is an attractive alternative to competitors' products, which traditionally require premium subscriptions priced above $200 per year.

Helio Strap Amazfit 首款無螢幕健身、恢復和睡眠追蹤器獲得了 KOL 的廣泛讚譽和客戶的高度認可，幫助我們開拓了新的、服務不足的市場領域。它提供免費訂閱的全天候健康監測和先進的人工智慧驅動的智慧訓練和恢復指標。與競爭對手的產品相比，它是一種頗具吸引力的替代品，因為競爭對手的產品通常需要每年 200 美元以上的高級訂閱。

Helio Strap complements the Balance 2 with continuous heart rate monitoring and 27 workout modes. Both devices sync effect effortlessly through the Zepp App. Its 24/7 operation, data solution, and integration into a complete ecosystem distinguish us from prominent competitors.

Helio Strap 為 Balance 2 提供了持續心率監測和 27 種運動模式。兩種裝置均可透過 Zepp App 輕鬆同步效果。其全天候營運、數據解決方案以及與完整生態系統的整合使我們從眾多知名競爭對手中脫穎而出。

Most recently, Helio Strap has been recognized by professional review influencers, the quantified scientists, as the most accurate heart rate monitoring device among all the watches and famous trackers they have tested, surpassing industry well-known brands.

最近，Helio Strap 被專業評測影響者量化科學家評為他們測試過的所有手錶和知名追蹤器中最精確的心率監測設備，超越了行業知名品牌。

At the same time, our entry-level Bip 6 and lifestyle-oriented Active 2 series continue to see steady growth across major global markets, earning strong support from retail and Amazon partners, including better sales placement, increased ordering volume, and deeper co-marketing efforts. This helped further expand brand awareness and reinforce the resilience of our tiered product strategy.

同時，我們的入門級 Bip 6 和以生活方式為導向的 Active 2 系列在全球主要市場繼續保持穩步增長，獲得零售商和亞馬遜合作夥伴的大力支持，包括更好的銷售位置、增加的訂購量以及更深入的聯合營銷力度。這有助於進一步擴大品牌知名度並增強我們分層產品策略的彈性。

Together with the new product launches in the second quarter, we also upgraded Zepp OS to Zepp OS 5.0, powered by AI, Zepp Flow 2.0 redefines training with voice controlled workouts, real-time environmental data, and personalized fairness insights, delivering an intuitive hands-free experience. Through deep integration with OpenAI and Google Gemini, Zepp OS 5.0 achieved substantial advancements in both functionality and performance at a lower cost. The system now operates faster with expanded capabilities. Most notably, our foot locking feature recognizes more first and auto categorize their calories for users.

結合第二季新產品的發布，我們還將 Zepp OS 升級到 Zepp OS 5.0，由 AI 提供支持，Zepp Flow 2.0 透過語音控制鍛煉、實時環境數據和個性化公平洞察重新定義訓練，提供直觀的免提體驗。透過與OpenAI、Google Gemini等深度融合，Zepp OS 5.0以更低的成本，在功能和效能上都實現了大幅提升。該系統現在運行速度更快，功能也擴展。最值得注意的是，我們的腳鎖功能可以先識別更多資訊並自動為使用者分類卡路里。

In the meantime, our hardware and software ecosystem is expanding with integrations from third-party platforms like Strava and TrainingPeaks. We are actively working on integrating their sensors and solutions to provide more value to Amazfit users.

同時，我們的硬體和軟體生態系統正在透過與 Strava 和 TrainingPeaks 等第三方平台的整合而不斷擴展。我們正在積極致力於整合他們的感測器和解決方案，為 Amazfit 用戶提供更多價值。

Operationally, our flexible supply chain and multi-region sourcing strategy have effectively steered us from the impact amidst trade uncertainties and shifting tariff policies, reinforcing our competitive edge by strategically diversifying our manufacturing capacity across China and Vietnam and actively evaluating further expansion opportunities within the NAFTA region. Our operational performance in the first half of this year demonstrates our ability to mitigate majority of the tariff headwinds through greater product demands and global efficiency gains.

在營運方面，我們靈活的供應鏈和多區域採購策略有效地使我們免受貿易不確定性和關稅政策變化的影響，透過在中國和越南策略性地分散製造能力並積極評估在北美自由貿易協定地區的進一步擴張機會，增強了我們的競爭優勢。我們今年上半年的營運表現表明，我們有能力透過增加產品需求和提高全球效率來緩解大部分關稅阻力。

In terms of branding and marketing positioning, our integrated region sports community strategy continues to deliver outstanding results. By strategically leveraging the influence of global celebrated athletes and collaborating closely with emerging sports communities like HYROX, we have significantly boosted our global brand recognition.

在品牌和行銷定位方面，我們的綜合區域運動社群策略持續取得優異成績。透過策略性地利用全球知名運動員的影響力並與 HYROX 等新興運動社群密切合作，我們顯著提升了全球品牌知名度。

This carefully curated partnerships has enhanced consumer trust, deepen emotional connections with diverse users demographics, and amplified our market presence worldwide. In the recent HYROX event in Chicago and Hong Kong, our products made an extraordinary presence among the sports enthusiasts.

這種精心策劃的合作關係增強了消費者的信任，加深了與不同使用者群體的情感聯繫，並擴大了我們在全球的市場影響力。在最近芝加哥和香港舉行的HYROX活動中，我們的產品在體育愛好者中引起了轟動。

We continue to cultivate a robust Amazfit Athletes team. And to date, we have over 10 sports stars on board, including Gabby Thomas and Jasmine Paolini. This quarter, we are thrilled to welcome NFL first-tier athlete and Pro Bowl running back, Derrick Henry; and Ultra Runner, Rod Farvard to our athletes family. We are committed to continuously creating greater value for the entire Amazfit community, our users, athletes and all stakeholders alike.

我們繼續培養一支強大的 Amazfit 運動員團隊。到目前為止，我們已經擁有超過 10 位運動明星加盟，包括 Gabby Thomas 和 Jasmine Paolini。本季度，我們很高興歡迎 NFL 一級運動員和職業碗跑衛德里克·亨利 (Derrick Henry) 和超級跑步者羅德·法瓦德 (Rod Farvard) 加入我們的運動員大家庭。我們致力於為整個Amazfit社群、我們的用戶、運動員以及所有利害關係人持續創造更大的價值。

Moreover, our targeted multilayered global marketing campaigns across platforms like YouTube, TikTok, and Instagram have created a powerful marketing matrix from authentic functionality tests by tech influencers to fitness scenario demonstrations by wellness creators and high-profile endorsements by professional athletes. This approach has successfully elevated Zepp Health's global brand perception, resonating deeply with our target audience.

此外，我們在 YouTube、TikTok 和 Instagram 等平台上開展的有針對性的多層次全球行銷活動已經創建了一個強大的行銷矩陣，從技術影響者的真實功能測試到健康創造者的健身場景演示以及專業運動員的高調代言。這種方法成功提升了 Zepp Health 的全球品牌知名度，並與我們的目標受眾產生了深刻共鳴。

The recent Amazon Prime Day serves as a perfect showcase of the effectiveness of our marketing outreach. In USA, Amazfit ranked as the second most improved wearable brand year over year. In the EMEA region, our Prime Day sales surged by approximately 60% compared to the 2024 event.

最近的亞馬遜 Prime Day 完美地展示了我們的行銷推廣的有效性。在美國，Amazfit 被評為同比進步第二大的穿戴式裝置品牌。在歐洲、中東和非洲地區，我們的 Prime Day 銷售額與 2024 年活動相比激增了約 60%。

In summary, this outstanding quarter represents a powerful validation of our strategic transformation. Our relentless focus on sports tech and premium high-impact products has differentiated our brand in the highly competitive wearable technology market. Innovation, strategic partnerships, and operational excellence are filling our momentum and shaping the future of connected sports experience.

總而言之，這個出色的季度是對我們策略轉型的有力驗證。我們堅持不懈地專注於運動科技和高端高衝擊產品，使我們的品牌在競爭激烈的穿戴式科技市場中脫穎而出。創新、策略合作夥伴關係和卓越營運正在激發我們的動力並塑造互聯體育體驗的未來。

To capitalize on the industry's upcoming peak season, we are expanding our premium product portfolio with our flagship device designed to fortify our competitive edge and long-term business soon, so stay tuned.

為了利用即將到來的行業旺季，我們將透過旗艦設備擴展我們的高端產品組合，旨在增強我們的競爭優勢和長期業務，敬請期待。

With all the things mentioned above, we are poised to capture additional market share, drive continued growth, creating sustainable value for all stakeholders.

透過上述所有事項，我們準備好佔領更多的市場份額，推動持續成長，為所有利害關係人創造永續價值。

Thank you once again for your unwavering support and confidence in Zepp Health. We are incredibly excited about the future and look forward to delivering continued excellence as we progress through the second half of 2025 and beyond.

再次感謝您對 Zepp Health 的堅定支持與信任。我們對未來充滿期待，並期待在 2025 年下半年及以後繼續保持卓越表現。

I will now turn the call over to Leon to go over the highlights of our second-quarter financial results.

現在我將把電話轉給 Leon，讓他介紹我們第二季財務表現的亮點。

Thank you, Wayne. Greetings, everyone. Thank you again for joining our second-quarter 2025 earnings call. Let me start by highlighting some key metrics from our financial results for the second quarter of 2025.

謝謝你，韋恩。大家好。再次感謝您參加我們的 2025 年第二季財報電話會議。首先，我來重點介紹我們 2025 年第二季財務表現的一些關鍵指標。

I would like to start off by recapping the recent campaigns such as Helio Strap debut in HYROX, Chicago led to a substantial increase in search activity and engagement. As Wayne mentioned, for the Prime Day, we achieved significant year-over-year growth in both the USA and EMEA regions.

首先，我想回顧一下最近的活動，例如 Helio Strap 在芝加哥 HYROX 的首次亮相導致搜尋活動和參與度大幅增加。正如韋恩所提到的，在 Prime Day，我們在美國和歐洲、中東和非洲地區都實現了顯著的同比增長。

In USA, Amazfit ranked as the second most improved wearable brand year over year. In Europe, we significantly outperformed the overall smartwatch category growth of 32% with particularly strong sales in Germany, Italy, and France.

在美國，Amazfit 被評為同比進步第二大的穿戴式裝置品牌。在歐洲，我們的表現遠超過智慧手錶類別整體 32% 的增幅，其中德國、義大利和法國的銷售尤其強勁。

Our growth in the mid- to premium Smartwatch segment was propelled by strategic pricing, positive customer feedback and effective off-site brand awareness initiatives. This strong performance sets the stage for continued success with momentum building ahead of the key events such as the Black Friday for 2025.

我們在中高階智慧手錶領域的成長得益於策略定價、積極的客戶回饋和有效的場外品牌知名度措施。這一強勁表現為持續取得成功奠定了基礎，並在 2025 年黑色星期五等重大事件之前積聚了強勁勢頭。

Now, let's turn to the financials. We made an impressive progress in the second quarter with robust sales driving a 46% year-over-year revenue increase, reaching $59.4 million, exceeding the upper end of our previous guidance, primarily driven by the strong demand for our Bip 6 and Active 2 series as well as the continued success of our T-Rex 3 series. These results highlight the effectiveness of our strategic shift to a Amazfit branded product ecosystem with the market recognizing our efforts and positioning the Amazfit brand for a new phase of value reevaluation.

現在，讓我們來談談財務狀況。我們在第二季度取得了令人矚目的進展，強勁的銷售推動收入同比增長 46%，達到 5940 萬美元，超過了我們之前預期的上限，這主要得益於我們對 Bip 6 和 Active 2 系列的強勁需求以及我們的 T-Rex 3 系列的持續成功。這些結果凸顯了我們向 Amazfit 品牌產品生態系統策略轉變的有效性，市場認可了我們的努力，並將 Amazfit 品牌定位於價值重新評估的新階段。

Our performance is even more impressive in the context of the quarter's dynamic market environment. Tariff policies and global wearable technology trends continue to evolve, presenting both challenges and opportunities. Our proactive supply chain management and diversified manufacturing presence enhanced our operational resilience, while our value-centered product approach allowed us to deliver advanced features at more accessible price points, reinforcing our competitive edge.

在本季充滿活力的市場環境下，我們的業績更加令人印象深刻。關稅政策和全球穿戴式科技趨勢不斷發展，既帶來挑戰，也帶來機會。我們積極主動的供應鏈管理和多元化的製造業務增強了我們的營運彈性，而以價值為中心的產品方法使我們能夠以更實惠的價格提供先進的功能，從而增強了我們的競爭優勢。

Turning to gross margin. It was influenced by various factors, including product mix, product launch timing, and product life cycles upgrade such as model upgrades. In Q2 2025, we achieved a gross margin of 36.2%, on par with Q1 2025, but down slightly year-over-year due to a higher revenue proportion of relatively lower-margin entry-level products, namely Amazfit Bip 6 and Active 2 smartwatches and the clearance of older mid-range Balance 1 products to prepare for Balance 2-range launches. For the third quarter, with a full quarter of Helio Strap and Balance 2 sales as well as several planned new product launches, we expect gross margin to expand.

轉向毛利率。它受到多種因素的影響，包括產品結構、產品推出時機以及模型升級等產品生命週期升級。2025 年第二季度，我們的毛利率為 36.2%，與 2025 年第一季度持平，但同比略有下降，原因是利潤率相對較低的入門級產品（即 Amazfit Bip 6 和 Active 2 智慧手錶）的收入比例較高，以及為準備推出 Balance 2 系列而清倉舊款中檔 Balance 1 產品中檔。對於第三季度，隨著 Helio Strap 和 Balance 2 全季度的銷售以及計劃中的幾款新產品的推出，我們預計毛利率將會擴大。

Now, let's turn to costs. We remain steadfast in our commitment to cost management, continuing with the program that we began in Q3 2020 on reducing overall operating costs. Our overall adjusted operating cost in the second quarter come in at $26 million compared to $25 million in the second quarter of 2024 and $32 million last quarter. By maintaining a cost-conscious approach, we are actively moving towards a run rate of approximately $25 million per quarter for operating costs.

現在，讓我們來談談成本。我們堅定不移地致力於成本管理，繼續執行我們於 2020 年第三季啟動的降低整體營運成本的計劃。我們第二季的整體調整後營運成本為 2,600 萬美元，而 2024 年第二季為 2,500 萬美元，上一季為 3,200 萬美元。透過保持注重成本的方法，我們正在積極地將營運成本的運作率提高到每季約 2500 萬美元。

Currently, we remain committed to investing in R&D and marketing activities to ensure our long-term competitiveness. Research and development expenses in the second quarter of 2025 were USD10.3 million (sic - see press release, "USD11.2 million") that increased by 4.2% (sic - see press release, "3.1%") year over year. The increase was a result from our investment in new technologies, including AI, to maintain our competitive edge against our peers. And we also have more new products in the pipeline, so stay tuned.

目前，我們仍然致力於投資研發和行銷活動，以確保我們的長期競爭力。2025 年第二季的研發費用為 1030 萬美元（原文如此 - 參見新聞稿，「1120 萬美元」），年成長 4.2%（原文如此 - 參見新聞稿，「3.1%）。這一成長源於我們對包括人工智慧在內的新技術的投資，以保持我們相對於同行的競爭優勢。我們還有更多的新產品正在籌備中，敬請期待。

At the same time, we focus on refined research and development approaches as we consistently evaluated resource efficiency to ensure maximum return on investment and productivity.

同時，我們注重精細化研發方法，並不斷評估資源效率，以確保最大程度的投資回報和生產力。

Selling and marketing expenses in the second quarter of 2025 were USD12 million and increased by 15.1% (sic - see press release, "14.2%") year over year and a decrease of 12.7% (sic - see press release, "12.9%") quarter over quarter. The year-over-year increase was primarily due to the promotional campaigns to build brand recognition and drive sales growth. The quarter-over-quarter decrease was primarily due to the absence of large-scale physical product launch events such as the CES held in the first quarter of 2025.

2025 年第二季的銷售和行銷費用為 1,200 萬美元，年成長 15.1%（原文如此 - 參見新聞稿，「14.2%），環比下降 12.7%（原文如此 - 參見新聞稿，「12.9%）。年比成長主要得益於建立品牌知名度和推動銷售成長的促銷活動。環比下降主要是由於2025年第一季沒有舉辦CES等大型實體產品發表活動。

However, we continue to invest in selling expenses and signed a few more renowned athletes to expand our Amazfit Athletes team in order to build brand recognition. At the same time, we consistently pushed on retail profitability and channel mix improvement. We're committed to investing efficiently in marketing and branding to ensure our sustainable growth.

然而，我們繼續投資銷售費用，並簽約幾位更知名的運動員來擴大我們的 Amazfit 運動員團隊，以建立品牌知名度。同時，我們不斷推動零售獲利能力和通路組合改善。我們致力於有效投資行銷和品牌建設，以確保我們的永續成長。

G&A expenses were USD4.1 million (sic - see press release, "USD4.4 million") in the second quarter of 2025 compared to USD4.4 million (sic - see press release, "USD4.9 million") in the same quarter of 2024.

2025 年第二季的一般及行政管理費用為 410 萬美元（原文如此 - 參見新聞稿，「440 萬美元」），而 2024 年同期為 440 萬美元（原文如此 - 參見新聞稿，「490 萬美元」）。

As a result, we narrowed our adjusted operating loss to $4.9 million for the quarter, an improvement of 42% compared to last year. The first half of the year is typically the season with lower sales compared to the second half of the year, which resulted in an inability to fully cover our operating expenses.

因此，本季我們的調整後營業虧損縮小至 490 萬美元，較去年同期改善了 42%。與下半年相比，上半年通常是銷售額較低的季節，這導致我們無法完全支付營運費用。

As of June 30, our overall cash balance stood at $95 million compared to $103 million in Q1 2025. Inventory increased slightly due to preparations for upcoming new product launches. Overall cash position saw a small quarter-on-quarter decrease, largely influenced by timing and operating performance factors, offset in part by solid working capital management that continues to deliver strong results. In Q3, we expect our overall cash balance to grow from its current levels.

截至 6 月 30 日，我們的總現金餘額為 9,500 萬美元，而 2025 年第一季為 1.03 億美元。由於準備即將推出的新產品，庫存略有增加。整體現金狀況環比小幅下降，主要受到時間和經營業績因素的影響，但穩健的營運資本管理繼續帶來強勁業績，部分抵消了這一下降。在第三季度，我們預計整體現金餘額將在當前水準上成長。

In terms of capital structure, our overall long-term and short-term debt levels remained consistent between the first and the second quarter of 2025, following the restructuring we completed during the first quarter.

在資本結構方面，我們在第一季完成重組後，2025 年第一季和第二季期間我們的整體長期和短期債務水準保持一致。

We refinanced a significant portion of our short-term debt into long-term instruments with a more favorable interest rates and a two-year duration, which significantly reduced near-term liquidity pressures and enhanced our overall capital structure. Since the first quarter of 2023, the company has cumulatively retired $68.0 million of debt. We'll continue to optimize the capital structure for the company.

我們將很大一部分短期債務再融資為利率更優惠、期限為兩年的長期工具，這大大降低了短期流動性壓力並改善了我們的整體資本結構。自 2023 年第一季以來，該公司已累計償還 6,800 萬美元的債務。我們將繼續優化公司的資本結構。

We're pleased to reconfirm our commitment to our share repurchase program in 2025, reflecting our confidence in Zepp's fundamentals and long-term trajectory. We believe our valuation continues to represent an attractive opportunity to return value to shareholders in the current market environment.

我們很高興再次確認我們對 2025 年股票回購計畫的承諾，這反映了我們對 Zepp 基本面和長期發展軌蹟的信心。我們相信，在當前的市場環境下，我們的估值仍然代表著向股東回報價值的誘人機會。

Finally, our outlook for the third quarter of 2025, we expect revenue to be in the range of $72 million to $76 million, representing a 70% to 79% year-over-year growth compared to $42.5 million in the third quarter of 2024. Furthermore, our efforts to reduce operating expenses and improve gross margins are proving effective even as we invest in developing and launching new products.

最後，我們對 2025 年第三季的展望是，我們預計營收將在 7,200 萬美元至 7,600 萬美元之間，與 2024 年第三季的 4,250 萬美元相比年增 70% 至 79%。此外，即使我們投資開發和推出新產品，我們降低營運費用和提高毛利率的努力也證明是有效的。

We are very excited to enter the next phase of our post-transformation development with strong momentum.

我們非常高興能夠以強勁的勢頭邁入轉型後發展的下一階段。

Thank you all for your time today. I will now open the call for questions. Operator, please go ahead.

感謝大家今天的寶貴時間。我現在開始提問。接線員，請繼續。

(Operator Instructions) Sid Rajeev, Fundamental Research.

（操作員指示）Sid Rajeev，基礎研究。

Congratulations to the entire team at Zepp on a strong quarter and your strong guidance for Q3. Firstly, could you please give more color on the recent spike in share price drivers?

恭喜 Zepp 整個團隊取得強勁的季度業績並為第三季度做出有力指導。首先，您能否詳細說明一下近期股價上漲的驅動因素？

Yes. I think if you ask me, there's a few things which are happening. Number one, we continue to see that our products are well received by the markets and our brand is getting noticed everywhere. And I just mentioned that we had one of the best Amazon Day we had in the company's history, right?

是的。我想如果你問我的話，你會發現有幾件事正在發生。首先，我們不斷看到我們的產品受到市場的歡迎，我們的品牌也越來越受到關注。我剛才提到，我們舉辦了公司歷史上最好的亞馬遜日之一，對吧？

The second thing I would say, probably it's coming out of the value discovery journey, which is happening right now in the overall market, because a lot of investors probably see that smart hardware companies like us are taking market share versus the competitors. And then we are -- I think I mentioned this many times before, we are hugely undervalued if you look at the fair value of our shareholder equity value or if you look at our peers, right?

我想說的第二件事，可能是價值發現之旅的成果，目前整個市場都在經歷這個過程，因為許多投資者可能看到，像我們這樣的智慧硬體公司正在從競爭對手手中搶佔市場份額。然後我們——我想我之前多次提到過這一點，如果你看看我們的股東權益價值的公允價值或看看我們的同行，我們被嚴重低估了，對嗎？

So I'm not surprised by the recent share price movement. And as a management, we believe if we continue to execute the strategy, which we embarked upon, you will see continued growth and the value revaluation, as I mentioned in my script, in the upcoming quarters and years.

因此，我對最近的股價走勢並不感到驚訝。作為管理層，我們相信，如果我們繼續執行我們所製定的策略，那麼正如我在腳本中提到的那樣，您將在未來幾個季度和幾年看到持續的成長和價值重估。

Thank you. How many more product launches in the second half of the year versus how many did you launch in the first half?

謝謝。與上半年相比，下半年推出了多少新產品？

I think on the first half, we -- in Q2 -- in Q1, we launched our entry-level new products. We refreshed the line and it's actually well received by the customers. To name a few, it's Bip 6 and Active 2. And then in Q2, we actually managed to refresh our mid-tier line, the Balance 2. And also, we coupled that with a new device, which is called Helio Strap. It's actually well received by the customers and it has been ranked as the best heart rate sensors out of all the wearables, which the KOL has ever tested.

我認為在上半年，我們——在第二季度——在第一季度，我們推出了入門級新產品。我們更新了產品線，並且確實受到了客戶的好評。舉幾個例子，它是 Bip 6 和 Active 2。然後在第二季度，我們實際上成功更新了我們的中階產品線 Balance 2。此外，我們還將其與一款名為 Helio Strap 的新設備結合在一起。它實際上受到了客戶的一致好評，並被評為 KOL 測試過的所有可穿戴設備中最好的心率感測器。

So -- and then in the upcoming quarters, I think -- I'm sorry, I cannot tell you exactly what it is. But if you listen to Wayne's script and if you listen to my script, we have very exciting products in the pipeline for Q3 and Q4. And I think it will be, for sure, on par with the new product launches we had in the second half of previous year, if not more. So we do have a lot of new products in the pipeline in the upcoming quarters, so stay tuned.

所以 — — 然後在接下來的幾個季度裡，我想 — — 抱歉，我無法確切地告訴你它是什麼。但是如果你聽韋恩的腳本和我的腳本，你就會知道我們在第三季和第四季有非常令人興奮的產品。我認為它肯定會與我們去年下半年推出的新產品數量持平，甚至更多。因此，我們在接下來的幾季中確實會推出許多新產品，敬請期待。

Got it. And in terms of gross margins, I know you said you expect gross margins to improve in the coming quarters. Do you think you can hit closer to 40% for the full year?

知道了。就毛利率而言，我知道您說過預計未來幾季毛利率會提高。您認為全年的業績可以接近 40% 嗎？

Yes. We don't guide on gross margins, but we -- our business has a seasonal factor here. So if you look at Q1 and Q2, we launched our entry-level -- we refreshed our entry-level line and then rightfully so entry-level lines carries less than our premium or mid-tier product lines gross margin.

是的。我們不提供毛利率指導，但我們的業務有季節性因素。因此，如果你看一下第一季和第二季度，我們推出了入門級產品——我們更新了入門級產品線，因此入門級產品線的毛利率低於我們的高階或中階產品線。

So that actually has a small mix impact in the first and second quarter's gross margin you see. But then as we are heading into Q3, we have a full quarter of Balance 2 and Helio Strap and also the new products, which is on the horizon for us to push into the market. Those would definitely lift the product mix for the second half of the year for the company.

因此，這實際上對第一季和第二季的毛利率產生了很小的影響。但隨著我們進入第三季度，我們有整整一個季​​度的 Balance 2 和 Helio Strap 以及新產品，這些產品即將面世。這些肯定會提升公司下半年的產品組合。

So I, for sure, would expect that our gross margin is going to expand in the second half of the year. And that is how you should look at the gross margin for our company for the upcoming quarters and for the full year.

因此，我確信我們的毛利率將在下半年擴大。這就是您應該看待我們公司未來幾個季度和全年的毛利率的方式。

Okay. Just one final question, if I may. Given a lot of back and forth on tariffs, are you able to tell us more about what percent of your imports to USA comes from Vietnam? And what are the current tariffs you are experiencing for your Chinese and Vietnam production?

好的。如果可以的話，我只想問最後一個問題。鑑於關稅問題反覆無常，您能否告訴我們更多有關美國進口產品中有多少比例來自越南的資訊？目前你們在中國和越南生產時需要繳多少關稅？

No. Okay. So I think it's public information, right? So if I'm shipping the products from China to USA, the tariff at this moment, it's just south of 25% at this moment for our product category.

不。好的。所以我認為這是公開訊息，對嗎？因此，如果我將產品從中國運往美國，目前的關稅，對於我們的產品類別來說，目前略低於 25%。

If we are shipping the same thing out of Vietnam towards USA, the tariff impact on that is close to zero because on certain products between Vietnam and USA, there's a tariff waiver on it. So the idea here is that if we can ship as much as the products out of Vietnam to USA, then we can mitigate the tariff impact in full.

如果我們將同樣的東西從越南運往美國，關稅的影響接近零，因為越南和美國之間的某些產品有關稅減免。所以這裡的想法是，如果我們可以將盡可能多的產品從越南運往美國，那麼我們就可以完全減輕關稅的影響。

And rightfully so, if you look at our impact for the first and second quarter on the tariff, it's almost -- I have to say it's better than what we have expected. Yes, there's some impact on the tariffs, especially on the part from China to USA, but we could offset majority of that through productivity gains in the other parts of the bump.

這是理所當然的，如果你看看我們第一季和第二季對關稅的影響，它幾乎——我不得不說它比我們預期的要好。是的，關稅確實會產生一些影響，尤其是從中國到美國的部分，但我們可以透過提高其他地區的生產力來抵消大部分影響。

Dylan Chu, Point72 Hong Kong.

Dylan Chu，Point72 香港。

Congratulations on a strong set of results. Maybe two questions, just following up on gross margin. Number one would be, what kind of sales contribution would you expect from the new Helio Strap launch? And what kind of gross margin do you expect the product to carry? And how would it sort of evolve as the scale continues to ramp up?

恭喜您取得一系列優異的成績。也許有兩個問題，只是跟進毛利率。第一個問題是，您期望新款 Helio Strap 能帶來什麼樣的銷售貢獻？您預計該產品的毛利率是多少？隨著規模不斷擴大，它將如何發展？

And number two, slightly medium term, in two to three years, as your sales product mix continue to improve, how should we think about your gross margin benchmarking against [to the guidance] fitness lines because right now, at around 40%, we're sort of close to the operating margin. If we further upgrade our product mix, I'm just wondering if you can give us a little bit color on your medium-term gross margin thoughts.

第二，從中期來看，也就是兩到三年內，隨著你們的銷售產品組合不斷改善，我們該如何看待你們的毛利率與健身產品線的指導價位相比，因為現在我們的毛利率約為 40%，已經接近營業利潤率了。如果我們進一步升級我們的產品組合，我只是想知道您是否可以給我們一些關於中期毛利率的想法。

Hi. Yeah, so let me comment on your first question first on the Helio Strap, right? The Helio Strap, we only launched it in June. And after we launched it in June, it actually received a very good popularity from the customers who bought it.

你好。是的，那麼讓我先評論一下您關於 Helio Strap 的第一個問題，對嗎？Helio Strap，我們六月才推出。自六月推出以來，它確實受到了購買者的熱烈歡迎。

I think this product, if you ask us, it has unique value to our company because we are being noticed and it's the first time that serious performance users are actually buying our devices for the reason that we have the best HR and the hardware sensors in the market and we also have the best insights which can be provided by our Zepp OS and our App towards the users who are using it.

我認為，如果您問我們，這款產品對我們公司具有獨特的價值，因為我們受到了關注，而且這是第一次有嚴肅的性能用戶真正購買我們的設備，因為我們擁有市場上最好的 HR 和硬體感測器，而且我們的 Zepp OS 和應用程式還可以為使用它的用戶提供最好的見解。

And then we also mentioned that if you benchmark this product against its competitors, it's much cheaper, it's much better from a performance perspective, and it's gaining popularity and it's actually -- I think if you ask me, we're having more supply constraint versus the demand.

然後我們也提到，如果你將這款產品與其競爭對手進行比較，你會發現它便宜得多，性能也好得多，而且越來越受歡迎，實際上——如果你問我，我認為我們的供應限制比需求限制更嚴重。

And Helio Strap in itself, it carries a very healthy gross margin because on one hand, it's a relatively cheap product. It has been priced at $99, right? But on the other hand, it has a quite healthy gross margin, which is on par with the overall company's gross margin we're currently having, right? So the more we can sell on the Helio Strap in the future, it might become a separate line by itself. But then it's still very early to say. That's how you should look at the Helio Strap.

就 Helio Strap 本身而言，它的毛利率非常可觀，因為一方面，它是一種相對便宜的產品。它的定價是 99 美元，對嗎？但另一方面，它的毛利率相當健康，與我們目前的整體公司毛利率相當，對嗎？因此，隨著未來 Helio Strap 銷量的增加，它可能會成為一個獨立的產品線。但現在說這些還太早。您應該這樣看待 Helio Strap。

And then if I come back to your second question, obviously, if you go back to the products we have on a very ballpark, we have the outdoor series, which is represented by T-Rex. We have the Balance series, which is our mid-tier product, which is competing against the mainstream Apple and Samsung watch. And then we have the Essential series, which is in the price range of around $100, which is representing the Bip 6 and Active 2 watches we're having.

然後，如果我回到你的第二個問題，顯然，如果你回到我們大致的產品，我們有戶外系列，以 T-Rex 為代表。我們有 Balance 系列，這是我們的中階產品，與主流的 Apple 和三星手錶競爭。然後我們有 Essential 系列，價格在 100 美元左右，代表了我們擁有的 Bip 6 和 Active 2 手錶。

So we are actually covering the full price range of different price ranges for the smartwatches. And different ranges from the entry level all the way till the most high-end watches, obviously, it carries different gross margin from low to high, right?

因此，我們實際上涵蓋了智慧手錶不同價格範圍的全部價格範圍。從入門級一直到最高端的手錶，不同的系列，顯然毛利率從低到高是不同的，對嗎？

And we -- on a mix perspective, we think the proportion of the high-end and the mid-end products will continue to expand in a midterm, so over two years to three years' time frame or maybe shorter than that. And we still want to have a good base and the funnel from the entry-level products because we also see that there's a growing demand and popularity on the products which we price at $100.

從產品組合的角度來看，我們認為高端和中階產品的比例將在中期繼續擴大，也就是在兩到三年的時間範圍內，甚至可能更短。我們仍然希望從入門級產品中獲得良好的基礎和管道，因為我們也看到，對於我們定價 100 美元的產品，需求和受歡迎程度正在增長。

So yeah, this is maybe a quite a long answer to your question. I think in the upcoming two years or mid- to long term, you should expect our gross margin to further expand above the 40%, which we set as a goal for now.

是的，這也許是對你的問題的一個相當長的答案。我認為在未來兩年或中長期，我們的毛利率將進一步擴大到40%以上，這是我們目前設定的目標。

Thank you. That's very clear. Could I please maybe follow up one quick question. You mentioned the Helio Strap is running into a little supply constraint. I'm just wondering when do you expect it to sort of improve? And what kind of capacity or volume expectation can we possibly have for next year?

謝謝。這非常清楚。我可以問一個簡單的問題嗎？您提到 Helio Strap 遇到了一些供應限制。我只是想知道您預計什麼時候它會有所改善？我們對明年的產能或產量預期是怎麼樣的？

No, I think we're working day and night to improve on the supply issues as we speak. So I think in Q3, we should be able to resolve it. So that's why, I mean, you should be able to see a full Q3 with the Helio Strap performance from a run rate perspective.

不，我認為我們正在日以繼夜地努力改善供應問題。所以我認為在第三季我們應該能夠解決這個問題。所以，我的意思是，你應該能夠從運行率的角度看到 Q3 與 Helio Strap 的完整性能。

[Frank Duggan], Brooks Investments.

[弗蘭克杜根]，布魯克斯投資公司。

Thank you. Congratulations for such a good quarter. I only have one question. You mentioned a very strong guidance for the third quarter. So what's going to be the main driver for this?

謝謝。恭喜本季取得如此好的業績。我只有一個問題。您提到了對第三季非常強勁的預期。那麼，這現象的主要驅動力是什麼呢？

I think I just mentioned there's a few things. So number one, our -- the Essential series, the Bip and Active 2, the entry-level products continue to get traction and we have a very strong Amazon Prime Day performance out of those two products. So these two products will continue to perform for Q3. And also from a seasonality perspective, Q3, Q4 are typically the high seasons for smartwatch and electronics purchase, right? So that's number one.

我想我剛才提到了幾件事。首先，我們的 Essential 系列、Bip 和 Active 2 等入門級產品繼續受到關注，這兩款產品在亞馬遜 Prime Day 上的表現非常強勁。因此這兩款產品將在第三季繼續表現出色。而且從季節性的角度來看，第三季和第四季通常是智慧手錶和電子產品購買的旺季，對嗎？這是第一點。

Number two, we recently launched Balance 2 and Helio Strap. Those are two products which we launched in June. And it's actually a big and major refresh of our mid-range products. And it actually received very good reviews from the KOLs and also the consumers. So these two products is going to continue to perform in the course of Q3, and it will be a full-quarter performance. So what you see in Q2 is only one month, right? So that's number two.

第二，我們最近推出了 Balance 2 和 Helio Strap。這是我們六月推出的兩款產品。這實際上是我們中檔產品的重大更新。事實上，它得到了 KOL 和消費者的一致好評。因此，這兩款產品將在第三季繼續表現良好，並將持續整個季度的表現。那麼您在第二季度看到的只是一個月，對嗎？這是第二點。

Number three is that our T-Rex 3, which is our flagship line, continue to perform. It actually performed -- it was well received the moment it launched last year Q3. And then every quarter, it's just steadily growing in its popularity.

第三，我們的旗艦產品系列 T-Rex 3 繼續表現出色。它確實表現良好——去年第三季推出後就受到了好評。然後每個季度，它的受歡迎程度都在穩步增長。

So these three lines, as I just mentioned, will continue to perform in Q3. And not to mention, we have something which Wayne also hinted to an interesting product, which we're very proud of to be launched in Q3 as well. So a factor of the four would drive the growth for Q3.

因此，正如我剛才提到的，這三條線路將在第三季繼續表現良好。更不用說，韋恩也暗示過我們有一個有趣的產品，我們非常自豪它也將在第三季推出。因此，這四個因素將推動第三季的成長。

Ladies and gentlemen, at this time, we will conclude our question-and-answer session. I'd like to turn the conference back over to Grace Zhang for any closing remarks.

女士們、先生們，我們的問答環節到此結束。我想將會議交還給 Grace Zhang 做最後發言。

Thank you once again for joining us today. If you have further questions, please feel free to contact Zepp's Investor Relations department through the contact information provided on our IR website. Thank you.

再次感謝您今天加入我們。如果您還有其他問題，請隨時透過我們的 IR 網站上提供的聯絡資訊聯絡 Zepp 的投資者關係部門。謝謝。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.

會議現已結束。感謝您參加今天的演示，現在您可以斷開您的線路了。