Zepp Health Corporation

Hello, ladies and gentlemen. Thank you for standing by for ZEPP Health Corporation's first quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Grace Zhang, Director of Investor Relations for the company. Please go ahead, Grace.

Hello, everyone. and welcome to Zapp Health Corporation's first quarter 2026 earnings conference call. The company's financial and operating results were issued in a press release about the newsletter services earlier today and are posted online. You can also view the earnings press release and the slides referred to on this call by visiting the IR section of the company's website. Presenting today are Wang Huang, our founder and chief executive officer, and Leon Deng, our chief financial officer. Joining us today, we also have Mike Yan, chief operating officer and general manager of North America, and Eric Fleming, vice president of capital markets for North America. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Certification Reform Act of 1995. Forward-looking statements involving harm 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, 2025 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 ZAP's earnings Press release and this conference call include discussions of unaudited gap financial information as well as unaudited non-gap financial information. That press release contains a reconciliation of unaudited non-gap measures to the unaudited most directly comparable gap measures. I will now turn the call over to our CEO, Mr. Wang Huang. Please go ahead.

Hello, everyone, and thank you for joining us today. We are pleased to begin 2026 with a promising start, delivering another solid quarter. In the first quarter, Amazfit branded revenue grew 33.8% year over year, demonstrating exceptional resilience during what is traditionally a software season for the consumer electronics industry. This strong performance was primarily driven by the successful launches of the Amazfit Active Max, Active 3 Premium, and our flagship T-Rex Ultra 2. Delivering this level of goals in a Seasonary Quieter Quarter further enforces our conviction that the market opportunity we are capturing is structural rather than cyclical. More importantly, we do not view this quarter simply as a revenue growth story. We see it as another area validation of the structural changes we have been building. Stronger premium product mix, improving pricing power, expanding growth margin, and a clear brand position in performance-oriented training. During our last earnings call, I outline how Zapp Health is evolving into a comprehensive hybrid training platform seamlessly integrating endurance, strength, and recovery through hardware, AI-driven training intelligence, software, and data. Our 2026 ambition is clear. We aim to build a global leadership position in hybrid training. To advance this strategy, we further deepened our collaboration with HIROX, one of the world's fastest growing hybrid endurance sports organizations, through a new exclusive three-year global partnership. This expanded partnership enhances the high-worth athlete experience across training, competition, and recovery, leveraging a broader portfolio of exclusive smart wearable categories, including smart watches, smart rings, smart cameras, smart glasses, and smart straps. alongside kinetic app experience, HIRO specific training modes, and synaptic performance data integrations. This partnership represents more than a sponsorship. It is a strategic step for us to participate in and helped shape the emerging hybrid training category. By engaging directly with IROC's global athlete community, gym ecosystem, coaches, and race environments, we can build a more authentic connection with users whose training behaviors Ben Strings, Endurance Recovery, Nutrition, and Performance Readiness. These give us a differentiated position in the market other than endurance and general smart lifestyle. While we have the opportunity to build authority around hybrid training and a more complete completed training system. We believe one of the most important opportunities is the moment when a user moves from casual tracking to more serious training. At that point, the phone ecosystem becomes less important. and the training value becomes more important. HI-ROS and gym-based hybrid training help create that moment, allowing Amazfit to enter through app experiences, training content, HI-ROS-specific modes, and lower-friction product before users make a full device switch. At the recent New York HIROX event, we introduced Balance 3 and Balance Ultra in a real hybrid training environment. This launch setting was intentional. These products are designed for users who balance strength, endurance, recovery, work, stress, and daily life. Powered by hybrid charge energy intelligence in the ZEPP app, they bring together bio-charge life load and training load into one clear view of personal capacity. helping users better understand when to push, when to recover, and how to maintain consistency over the long term. These activities are important because premiumization is not only about higher price points. It is about building trust in the environments where serious users decide which brands they rely on. By showing up in marathon preparation, trail and expedition environments, and hybrid training communities, Amazfit is strengthening the credibility required to support higher value products. improved product mix and long-term pricing power. Our premiumization strategy is strongly supported by our hybrid training positioning. We are already seeing earlier evidence that users are willing to move up the price ladder across certain product families. within the T-Rex lineup. Our higher-priced premium models are becoming an increasingly meaningful part of the overall sales mix. This reinforces an important point. Consumers are not choosing Amazfit solely for affordability. In March and April, Our premium T-Rex models priced at $399 USD and $549 USD accounted for nearly 50% of total T-Rex family unit sales. As we continue to strengthen our product differentiation and premium brand positioning, users are showing a growing willingness to engage with Amazfit at more premium price tiers. By embedding hybrid training more deeply into both our hardware and software ecosystem, we are enhancing the perceived value of the Amazfit brand and driving a consistent shipped toward higher-end product positioning. This remains one of our key strategic priorities as we move into 2026. In the first quarter, this strategy delivered tangible results with average selling price point with average selling price increasing more than 20% year-over-year. Notably, even amid rising memory component causes and broader storage chip price inflection, we were still able to achieve gross margin expansion. reflecting the effectiveness of our product mix improvement and discipline cost execution. In April, we extended this philosophy into one of the world's largest performance community, running. By adapting our hybrid training methodology to runners, We are enabling them to train more intelligently, improve endurance, and support long-term health and durability. This strategy is embodied in our newly launched Cheetah 2 lineup, including the Cheetah 2 Pro, a performance-focused Watch designed for marathon training and the Cheetah 2 Ultra engineered for the most demanding mountain and trail environments. Both integrated seamlessly with their coach with a full suite of running metrics and personalized training plans. Recovery insights and the third-party training platform integrations. These devices deliver structure hybrid style training guidance directly to endurance runners, further strengthening our penetration in the dedicated running segment. Notably, our first quarter growth was for the base across both entry and premium tiers. At the high end, the T-Rex Ultra II, crafted from grade V titanium, elevates our price ceiling to US dollar of $550, marking the highest in Amazfit's history and further reinforcing our premium branded positioning. At the same time, in our core value segments, the Amazfit, the Active Max and Active 3 Premium positions around the $169 price point. are expanding our reach among everyday fitness enthusiasts and entry-level runners beginning their structured training journeys. Most recently, we also introduced Bip Max, the latest addition to our most popular entry-level series. Our Strategic progress is also reflected in continued market share gains. In the first quarter, we achieved sequential value share expansion across EMEA, the US, and Asia Pacific, supported by strong performance across our full product matrix. according to third-party data sources. Amazfit now ranks among the top six smartwatch brands in both the United States and Europe by value share, underscoring the growing global business and market chains of the brand. Turning to software, we continue to strengthen our ecosystem through ZAP OS. Proprietary features such as ZAP Coach, BioCharge, and our expanding suite of hybrid training and high loss modes are being deployed across a growing range of devices, driving deeper user engagement and Retention. As we increasingly tailor our training intelligence for running and other endurance disciplines, our software ecosystem is becoming a key reason users choose and remain loyal to our brand, further widening the competitiveness modes around our platform. Across running, outdoor, and hybrid training, we are increasingly connecting Amazfit products with real performance environments and elite athlete validation. In running, Cheetah 2 Pro was supported by major marathon moments in Paris, London, and Boston. including acid proof points from Yemen Kriber, Amano Petros, and Rory Linkletter. In outdoor, T-Rex Altitude continues to gain collectability through high altitude alpinist, Josh Kavush, and Maria Expedition use cases, while Chris Bocotte strengthens the aspirational outdoor positioning of the T-Rex series. We also continue to build credibility around elite performance moments. During the high loss workshop major, a major athlete, Joanna Wierick, completed a clean sweep of all four HIROX majors this season while setting a new HIROX world record. We are also supporting Josh Kor's Project 222, his attempt to break the mile world record at the London Diamond League. Together, these moments reflect How Amazfit is showing up at the highest level of both hybrid training and endurance performance. Against the microeconomic backdrop, our premiumization strategy, expanding pricing power, vertically integrated supply chain, and diversifying manufacturing footprint across China and Vietnam provide us with multiple levels to mitigate these pressures. We remain confident that the alignment of our product mix channel strategy and cost structure will support sustainable growth and a clear path toward long-term profitability. Looking ahead to the second quarter, we expect revenue to be in the range of 63 million to 68 million. This outlook reflects continued year-over-year growth supported by demand across our product portfolio, while also accounting for normal shipment timing and product launch facing during the quarter. More importantly, we will continue to focus on the quality of growth, product mix, pricing power, growing gross margin structure, and user engagement. rather than only short-term revenue worrying. With that, I now turn the call over to Leo to walk through the financial details. Leo, please go ahead.