Zepp Health Corporation

Ladies and gentlemen, thank you for standing by for ZEP Health Corporation's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Grace Jung, Director of Investor Relations for the company. Please go ahead, Grace.

Hello, everyone. and welcome to Zapp Health Corporation's fourth quarter and four-year 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 to on this call by visiting the IR section of the company's website. Presenting today are Wang Fang, our Founder and Chief Executive Officer, and Leon Dunn, our Chief Financial Officer. Joining us today, we also have Mike Young, Chief Operating Officer and General Manager of North America, and Eric Fleming, VP of Capital Markets in North America. Before we continue, please note that today's discussion will contain forward looting 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 20F for the fiscal year ended December 31st, 2024. and other filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that ZEPP's earnings press release and the 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. I'll now turn the call over to our CEO, Wen. Please go ahead.

Hello, everyone, and thank you for joining us today. Before going into the details of the quarter, let me first share how we see ZAP evolving. Over the past few years, we have been transforming that from a traditional wearable hardware company into what we call a hybrid training platform. Our goal is not simply to launch competitive devices, but to build a border performance system that integrates endurance, change, and recovery through hardware, training intelligence, software, and data capabilities. With that context in mind, 2025 was a strong year for ZAPP. For the full year, Amazfit branded product revenue grew 51% year over year. In the fourth quarter, Amazfit branded product sales grew 45% year-over-year, while gross margin reached a record level of 40.3%. Importantly, this growth was achieved without relying on heavy discounting during the holiday season. These results reflect the continued progress of our multi-year transformation as we evolve from a volume-driven business toward a brand-lead and premium-focused global company. We also demonstrate strengthening pricing power across our portfolio. as our product mix continues shifting toward higher value segments. Turning into our product highlights, our growth in Q4 was broad-based across both entry-level and premium segments. As we continue expanding our portfolio, to serve a wider range of users and training scenarios. At CES, we launched Amazfit Active Max, the newest member of the Active family. Active Max fills the gap between our entry-level lifestyle watches and our rugged outdoor series. It targets everyday trainers beginning their fitness journey. It features a vibrant AMOLED display, long battery life, over 170 workout modes, and building support for offline maps, and training guidance powered by Zap Coach. We also recently introduced Active 3 Premium. designed specifically for new and entry-level runners. Positioned around the 169 US dollar price tier, ActiveMax and Active3 Premium reinforce the core volume segment of our portfolio, while expanding our reach among users beginning structural training. In our premium portfolio, the T-Rex and Balance series continue to perform strongly. In February, we launched T-Rex Ultra II, our newest flagship outdoor watch. Built with grade five titanium and designed for extreme durability, Ultra 2 extends the top end of our portfolio to around the 550 US dollar price level, the highest price point in our history. Products like Ultra 2 enforce the premium positioning of the amazing brand while expanding the selling of our product portfolio. On the software side, we continue strengthening our ecosystem through updates to ZEP OS. Features such as BioCharge energy monitoring and ZEP Coach AI-driven training guidance are now reaching more devices and helping increase engagement, retention, and long-term user value. Together, Our ZAP app, variables, and sensor technologies are creating a stronger ecosystem around our hardware foundation, forming what we believe is a growing defensive mode around our platform. By increasing switching costs, improving user retention, and expanding lifetime value, On the brand side, we have also made deliberate investments to elevate our credibility in the global performance sports community. This month, we announced a partnership with Josh Kerr, a two-time Olympic medalist and world champion middle distance runner. joins our growing roster of elite athletes, including Grant Fisher, David Henry, and Ruth Croft. These athletes are not just brand ambassadors. They actively use Amazfit devices such as Balance 2, HelioRing, and HelioStrap in their daily training and recovery. When world-class athletes rely on our data and training insights to prepare for the highest level of competition, it sends a powerful signal about the accuracy, credibility, and performance capabilities of our technology. Another important component of our strategy is our collaboration with HIROC. one of the fattest-growing hybrid endurance competitions globally. At high-loss races around the world, including recent events in cities such as Venice and Las Vegas, athletes gather in front of their official results screen to capture and share their finish times directly beneath the raised results appears presented by AmazeFit, making AmazeFit the most prominent brand integrated into that moment. When athletes share those results across social platforms, the brand naturally spreads through athlete-generated content rather than paid promotion. This is not traditional sponsorship visibility. It is infrastructure level exposure embedded directly into the athlete experience. More broadly, HIROPS plays a key role in our hybrid training strategy, which integrates endurance, change, and recovery into one coherent performance system where variable data, training intelligence, and real-world performance validation converge. Looking ahead to 2026, we remain focused on strengthening our premium product lineup, expanding our ecosystem, through AI-driven training insights and performance technologies, and deepening our engagement with performance-focused communities. For the first quarter of 2026, we expect revenue in the range of $50 million to $55 million. representing an increase of 30% to 43% year over year. This outlook reflects our confidence that the demand we are seeing is not simply seasonal, but structural. We believe we now have the right combination of products, channels, and cost structure to drive sustainable growth and a clear path towards sustained profitability. As our premium mix continues to expand and higher margin categories scale, we expect our margin profile to continue strengthening. With that, I will now Turn the call over to Leo to walk through the financial details. Leo, please go ahead.