The following is a summary of the Zepp Health Corporation (ZEPP) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Zepp Health reported a net loss for the first half of the year, but it was narrower compared to the previous year.

• Gross margin reached 40.3%, the highest in the company's history, attributed to an improved product mix and higher proportion of new products.

• Operating costs were maintained at $25.3 million, the lowest level in the past year, with R&D expenses at $10.4 million, marking a 13.8% decrease year-over-year.

Business Progress:

• Zepp Health is focusing on AI integration and has launched Zepp OS 4.0 with GPT-4 for enhanced smartwatch functionalities.

• Significant product launches planned including T-Rex 3 outdoor smartwatch and OWS earbuds, and the introduction of Amazfit Helio Ring.

• Expanded global brand visibility through partnerships with athletes and sponsorships, achieving breakthroughs in markets like Germany and stabilizing partnerships such as with Decathlon in France.

Opportunities:

• Increasing demand for open headphone designs presents a growth opportunity with the new line of OWS earbuds.

• The smart ring market, into which Zepp has recently entered, represents a $2 billion plus opportunity, growing at a high double-digit rate.

Risks:

• Competitive pressure from major tech giants like Apple and Samsung, who offered significant discounts affecting the consumer electronics sector.

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.