UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2024
Commission File Number: 001-38369
Zepp Health Corporation
(Registrant’s Name)
Huami Global Innovation Center
Building B2, Zhong’an Chuanggu
Technology Park
No. 900 Wangjiang West Road
Hefei, 230088
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
Exhibit Index
Exhibit 99.1 – Press Release
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
Zepp Health Corporation |
| |
|
|
| |
By: |
/s/ Leon Deng |
| |
Name: |
Leon Deng |
| |
Title: |
Chief Financial Officer |
Date: November 19, 2024
Exhibit 99.1
Zepp Health Corporation Reports Third Quarter
2024 Unaudited Financial Results
MILPITAS, Calif., November 18, 2024 /PRNewswire/
-- Zepp Health Corporation (“Zepp” or the “Company”) (NYSE: ZEPP) today reported revenues of US$42.5 million;
a basic and diluted net loss per share of US$0.05; and a basic and diluted net loss per ADS of US$0.82 for the third quarter ended September 30,
2024; adjusted basic and diluted net loss per share of US$0.05; and adjusted basic and diluted net loss per ADS of US$0.78. Each ADS represents
sixteen Class A ordinary shares.
Mr. Wang 'Wayne' Huang, Chairman and CEO
of Zepp, commented, "I’m pleased to report that this quarter our Amazfit branded sales had a 10% quarter-over-quarter increase,
the highest sequential growth we've achieved this year, overcoming the supply constraints of our newly launched products. This positive
momentum demonstrates that the most challenging phase of our transformation is now behind us, and we are optimistic that this growth will
continue into the fourth quarter as our new outdoor product, the T-Rex3 smartwatch, has received better than expected market feedback
worldwide. It combines military-grade durability, cutting-edge outdoor features, and unparalleled battery life, making it the perfect
companion for those seeking adventure in their everyday lives and becoming one of the most competitive smartwatch products in the sports
and outdoor categories."
Wang added, "Furthermore, introducing the
Amazfit UP OWS (Open Wearable Stereo) earbuds has expanded our product ecosystem and enhanced the user experience allowing them to hear
background sounds clearly while using UP earbuds for outdoor activities to enhance their safety. Additionally, we have made significant
advancements in our software capabilities, with the latest updates on Zepp OS and the redesign of our Zepp App interface to enhance functionality
and user engagement which received positive feedback from media and users widely.
These developments reaffirm our commitment to
innovation and meeting the evolving needs of our customers. We are particularly proud to be named as the official wearable partner and
timekeeper of HYROX, the World Series of Fitness Racing, reaching over 300,000 participants per season across EU and US regions.
On the marketing front, we are expanding the size of our Amazfit Athletes, this quarter we newly partnered with Spain Padel Athlete Bea
Gonzalez, American Hyrox Hunter and Meg and others. These developments reaffirm our commitment to innovation and meeting the evolving
needs of our customers. Looking ahead, we remain confident in our strategic direction. With a strong pipeline of new products, continued
investments in R&D and marketing, and an unwavering focus on operational excellence, we are well-positioned to drive sustainable growth
and create long-term value for our shareholders."
Mr. Leon Deng, Zepp's Chief Financial Officer,
added, "In the third quarter, our financial results continued to demonstrate the effectiveness of our refined operational strategies
and rigorous cost management. We reported the highest sequential revenue growth in the year, overcoming the supply constraints of our
newly launched T-Rex 3 and achieved the highest gross margin in our company’s history, reflecting our ongoing improvements in product
mix and operational efficiencies. While we maintained a consistent approach in aligning our operating expenses with strategic objectives,
during this quarter, we frontloaded certain marketing expenditures, helping to build brand awareness and promote our sales in the long
run. As a result, we reported a net loss, largely driven by cost coverage issues and negative foreign currency results, but with the successful
new product launches, we are confident in the recovery of our profitability growth momentum. Furthermore, our cash balance remained at
a similar level compared to the previous quarter, partially attributed to our tight working capital management. This achievement not only
demonstrates our capability to adapt swiftly to fluctuating market demands but also positions us to reduce operational risks and enhance
financial flexibility. Last but not the least, we will continue executing our share repurchase program to demonstrate our confidence on
the company’s long-term strategy."
Third Quarter 2024 Financial Summary
| | |
For the Three Months Ended | | |
For the Nine Months Ended | |
Number in millions, except for percentages and
per- share/ADS amounts | |
Sept. 30,
2024 | | |
Sept. 30,
2023 | | |
Sept. 30,
2024 | | |
Sept. 30,
2023 | |
| Revenue (US$) | |
| 42.5 | | |
| 83.1 | | |
| 123.1 | | |
| 269.9 | |
| Gross margin | |
| 40.6 | % | |
| 33.9 | % | |
| 39.3 | % | |
| 23.5 | % |
| Operating (loss)/income (US$) | |
| (12.5 | ) | |
| 1.4 | | |
| (38.3 | ) | |
| (31.1 | ) |
| Net (loss)/income (US$) | |
| (13.3 | ) | |
| 0.3 | | |
| (38.9 | ) | |
| (29.8 | ) |
| Adjusted EBIT (US$)1 | |
| (12.3 | ) | |
| 3.0 | | |
| (33.8 | ) | |
| (25.0 | ) |
| Net (loss)/income attributable to Zepp Health Corporation (US$) | |
| (13.3 | ) | |
| 0.3 | | |
| (38.9 | ) | |
| (29.7 | ) |
| Adjusted net (loss)/income attributable to Zepp Health Corporation (US$)2 | |
| (12.6 | ) | |
| 2.2 | | |
| (35.0 | ) | |
| (22.7 | ) |
| Basic/diluted net (loss)/income per ADS (US$)3 | |
| (0.82 | ) | |
| 0.02 | | |
| (2.40 | ) | |
| (1.95 | ) |
| Adjusted basic/diluted net (loss)/income per ADS (US$)4 | |
| (0.78 | ) | |
| 0.14 | | |
| (2.16 | ) | |
| (1.49 | ) |
| Units shipped in millions | |
| 0.7 | | |
| 2.8 | | |
| 3.2 | | |
| 10.0 | |
1
Adjusted EBIT is a non-GAAP financial measure, which is defined as net loss, excluding (i) share-based compensation expenses,
(ii) income tax (benefit)/ expense, (iii) interest income, (iv) interest expense.
2 Adjusted net (loss)/income attributable to Zepp Health
Corporation is a non-GAAP measure, which excludes share-based compensation expenses. The tax effect from the adjustment of the share-based
compensation expenses is nil. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
3
One ADS represents sixteen Class A ordinary shares. The ADS figures give effect to the ADS to share ratio change, as described
in “Third Quarter 2024 Financial Results—Shares Outstanding”.
4 Adjusted diluted net (loss)/income is the abbreviation
of adjusted net (loss)/income attributable to Zepp Health Corporation, which is a non-GAAP measure and excludes share-based compensation
expenses attributable to Zepp Health Corporation, and is used as the numerator in computation of adjusted basic and diluted net loss
per ADS attributable to Zepp Health Corporation.
Third Quarter 2024 Financial Results
Revenues
Revenues for the third quarter of 2024 reached
US$42.5 million, a decrease by 48.9% from the third quarter of 2023. The decrease was primarily due to the decrease in the sales of Xiaomi
wearable products, as well as the decrease in sales of self-branded products, as supply was constrained by the production capacity for
new product launches and macroeconomic weakness. However, compared with the second quarter of 2024, revenue of self-branded products increased
by 9.9%, which is the highest quarter-over-quarter increase in 2024, the increase was primarily driven by the market reception of our
recent launches, especially the newly introduced Amazfit T-Rex 3, and our core products such as Balance, Active, have seen continued popularity
and growing demand.
Total units shipped in the third quarter of 2024
was 0.7 million, compared with 2.8 million in the third quarter of 2023.
Gross Margin
Gross margin in the third quarter of 2024 was
40.6%, compared to 33.9% in the same period of 2023. We reached another record-high quarterly gross margin since the third quarter of
2023, supported by the strong performance of our self-branded products and a more favourable product mix, with a higher proportion of
new products and less clearance sales, which typically have lower margins. This was the sixth consecutive quarter of gross margin expansion.
Research and Development Expenses
Research and development expenses in the third
quarter of 2024 were US$10.9 million, an increase by 4.8% year-over-year. This accounted for 25.6% of revenues, compared to 12.5% for
the same period in 2023. The increase was a result from our investment in new technologies, including AI, to maintain our competitive
edge against our peers. At the same time, we focused on refined research and development approaches, as we consistently evaluated resource
efficiency to ensure maximum return on investment and productivity.
Selling and Marketing Expenses
Selling and marketing expenses in the third quarter
of 2024 were US$11.9 million, an increase by 21.9% year-over-year. This accounted for 28.0% of revenues, compared to 11.7% for the same
period in 2023.
The increase was primarily due to the launch of
various marketing campaigns for our products, as well as the expansion of our Amazfit Athletes team by partnering with renowned athletes
to build brand recognition. At the same time, we consistently pushed on retail profitability and channel mix improvement, which included
meticulous refinement of our retail channels and strategic staffing arrangements across sales regions. We are committed to investing efficiently
in marketing and branding to ensure our sustainable growth.
General and Administrative Expenses
General and administrative expenses were US$7.0
million in the third quarter of 2024, an increase by 5.4% year-over-year. This accounted for 16.5% of revenues, compared with 8.0% in
the same period in 2023. The increase was largely attributable to foreign exchange rate fluctuations. Foreign exchange rate fluctuations
loss was US$1.0 million in the third quarter of 2024, compared with fluctuations gain of US$0.7 in the same period of 2023.
Operating Expenses
Total operating expenses for the third quarter
of 2024 were US$29.8 million, an increase by 11.2% year-over-year. Adjusted operating expenses, which exclude share-based compensation,
were US$29.1 million. The increase was primarily due to the launch of various marketing campaigns for our new products, as well as the
expansion of our Amazfit Athletes team by partnering with renowned athletes to build brand recognition. We will maintain our cost-conscious
approach in the upcoming quarters. Concurrently, we remain committed to investing in R&D and marketing activities to ensure our long-term
competitiveness.
Operating Income/(Loss)
Operating loss for the third quarter of 2024 was
US$12.5 million, compared to operating income of US$1.4 million for the third quarter of 2023. Adjusted operating loss for the third quarter
of 2024 was US$11.9 million, compared to adjusted operating income of US$3.3 million for the third quarter of 2023. The loss was mainly
due to lower sales volume, which resulted in an inability to fully cover operating expenses.
Net Income/(Loss)
Net loss attributable to Zepp Health Corporation
for the third quarter of 2024 was US$13.3 million, compared to net income of US$0.3 million in the third quarter of 2023. Adjusted net
loss attributable to Zepp Health Corporation, which excludes share-based compensation expenses attributable
to Zepp Health Corporation, was US$12.6 million, compared to adjusted net income of US$2.2 million in the third quarter of 2023. Net loss
attributable to Zepp Health Corporation for the third quarter of 2024 included a foreign exchanges loss of US$1.0 million, compared to
a gain of US1.2 million and US$1.1 million in the first and second quarter of 2024, respectively. Net loss and adjusted net loss attributable
to Zepp Health Corporation for the nine months ended September 30, 2024 was US$38.9 million and US$35.0 million.
Liquidity and Capital Resources
As of September 30, 2024, the Company had
cash and cash equivalents and restricted cash of US$127.7 million, which was in similar level compared with the second quarter of 2024,
despite a loss position. This cash position provides a runway for the Company to invest and seize potential market opportunities.
The Company continued to manage its working capital
and inventory efficiently and recorded inventory of US$76.6 million as of September 30, 2024 and maintained it with a relatively
low level since June 30, 2019, representing an increase by 6.5% and a decrease by 29.0% compared with June 30, 2024 and September 30,
2023, respectively. We will continue to manage working capital tightly. Also, we anticipate further reductions in our debt level in the
upcoming quarters.
Shares Outstanding
As of September 30, 2024, the Company had
a total of 234.0 million ordinary shares outstanding, representing the equivalent of 14.6 million ADSs assuming the conversion of all
ordinary shares into ADSs.
The Company changed the ratio of its American
Depositary Shares (“ADSs”) to its Class A ordinary shares (the “ADS Ratio”) from the previous ADS Ratio of
one ADS representing four Class A ordinary shares to a new ADS Ratio of one ADS representing sixteen Class A ordinary shares.
The change in the ADS Ratio took effect on September 16, 2024 (U.S. Eastern Time). All earnings per ADS figures in this announcement
give effect to the foregoing ADS Ratio change.
Share Repurchase Program Update
The Company announced in its third quarter 2021
earnings release that the board had authorized a share repurchase program of up to US$20 million through November 2022. On November 21,
2022, the board authorized a 12-month extension of the Company’s share repurchase program. On November 20, 2023, the board
further authorized the Company to extend its share repurchase program for another 12 months. On November 18, 2024, the board further
authorized the Company to extend its share repurchase program for another 24 months. Pursuant to the extended share repurchase program,
the Company may repurchase its shares in the form of ADSs and/or ordinary shares through November 2026 with an aggregate value equal
to the remaining balance under the share repurchase program. As of September 30, 2024, the Company had used US$14.5 million to repurchase
approximately 1.7 million ADSs. The Company expects to fund the repurchases under the extended share repurchase program out of its existing
cash balance.
Outlook
For the fourth quarter
of 2024, the Company’s management currently expects net revenues to be between US$55 million and US$70 million, representing 29%
to 65% growth for revenue of self-branded products compared with third quarter of 2024.
This outlook is based
on current market conditions and reflects the Company’s current and preliminary estimates of market, operating conditions and customer
demand, which are all subject to change.
Conference Call
The Company’s management team will hold
a conference call at 8:30 p.m. Eastern Time on Monday, November 18, 2024 (9:30 a.m. Beijing Time on November 19, 2024)
to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
| US (Toll Free): |
+1-888-346-8982 |
| International: |
+1-412-902-4272 |
| Mainland China (Toll Free): |
400-120-1203 |
| Hong Kong (Toll Free): |
800-905-945 |
| Hong Kong: |
+852-3018-4992 |
Participants should dial in at least 10 minutes
before the scheduled start time and ask to be connected to the call for “Zepp Health Corporation”.
Additionally, a live and archived webcast of the
conference call will be available at http://ir.zepp.com.
A telephone replay will be available one hour
after the call until November 25, 2024 by dialing:
| US Toll Free: |
+1-877-344-7529 |
| International: |
+1-412-317-0088 |
| Replay Passcode: |
5720021 |
About Zepp Health Corporation
Zepp Health Corporation
(NYSE: ZEPP) is a global smart wearable and health technology leader, empowering users to live their healthiest lives by optimizing their
health, fitness, and wellness journeys through its leading consumer brands, Amazfit, Zepp Clarity and Zepp Aura. Powered by its proprietary
Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors and data algorithms, Zepp delivers cloud-based
24/7 actionable insights and guidance to help users attain their wellness goals. To date, Zepp has shipped over 200 million units, and
its products are available in more than 90 countries and regions. Founded in 2013 as Huami Corp., the Company changed its name to Zepp
Health Corporation in February 2021 to emphasize its health focus with a name that resonates across languages and cultures globally.
Zepp has team members and offices across globe, especially in Europe and USA regions.
Use of Non-GAAP Measures
We use adjusted net income/(loss), a non-GAAP
financial measure, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted operating
expenses represent operating expenses excluding share-based compensation expenses. Adjusted operating income/(loss) represents operating
income/(loss) excluding share-based compensation expenses. Adjusted EBIT represents net income/(loss) excluding share-based compensation
expenses, income tax (benefit)/expense, interest income and interest expense. Adjusted net income/(loss) represents net income/(loss)
excluding share-based compensation expenses, and such adjustment has no impact on income tax. Adjusted net income/(loss) attributable
to Zepp Health Corporation is a non-GAAP measure, which excludes share-based compensation expenses attributable to Zepp Health Corporation,
and is used as the numerator in computation of adjusted net income/(loss) per share and per ADS attributable to Zepp Health Corporation.
We believe that adjusted net income/(loss), adjusted
EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation help identify underlying trends in our business that could
otherwise be distorted by the effect of certain expenses that we include in net income/(loss) and net income/(loss) attributable to Zepp
Health Corporation. We believe that adjusted net income/(loss), adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health
Corporation provides useful information about our operating results, enhances the overall understanding of our past performance and future
prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.
Adjusted net income/(loss), adjusted EBIT and
adjusted net income/(loss) attributable to Zepp Health Corporation, should not be considered in isolation or construed as an alternative
to net income/(loss), basic and diluted net income/(loss) per share and per ADS attributable to Zepp Health Corporation or any other measure
of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures
to the most directly comparable GAAP measures. Adjusted net income/(loss), adjusted EBIT and adjusted net income/(loss) attributable to
ordinary shareholders, presented here may not be comparable to similarly titled measures presented by other companies. Other companies
may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors
and others to review our financial information in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This announcement contains forward-looking statements.
These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,”
“future,” “intends,” “plans,” “believes,” “estimates,” “confident”
and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations,
are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual
results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the cooperation
with Xiaomi, the recognition of the Company’s self-branded products; the Company’s growth strategies; trends and competition
in global wearable technology market; changes in the Company’s revenues and certain cost or expense accounting policies; governmental
policies relating to the Company’s industry and general economic conditions in China and the global. Further information regarding
these and other risks is included in the Company’s filings with the United States Securities and Exchange Commission. All information
provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation
to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Zepp Health Corporation
Grace Yujia Zhang
Email: ir@zepp.com
Piacente Financial Communications
Tel: +86-10-6508-0677
Email: zepp@tpg-ir.com
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data,
or otherwise noted)
| | |
As of December 31, | | |
As of September 30, | |
| | |
2023 | | |
2024 | |
| | |
| US$ | | |
| US$ | |
| Assets | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
| 133,669 | | |
| 114,173 | |
| Restricted cash | |
| 6,800 | | |
| 13,567 | |
| Accounts receivable, net | |
| 60,727 | | |
| 42,329 | |
| Amounts due from related parties | |
| 8,605 | | |
| 3,057 | |
| Inventories, net | |
| 84,887 | | |
| 76,579 | |
| Short-term investments | |
| 5,153 | | |
| 4,894 | |
| Prepaid expenses and other current assets | |
| 16,891 | | |
| 18,820 | |
| Total current assets | |
| 316,732 | | |
| 273,419 | |
| | |
| | | |
| | |
| Property, plant and equipment, net | |
| 8,929 | | |
| 7,688 | |
| Intangible asset, net | |
| 9,868 | | |
| 8,238 | |
| Goodwill | |
| 9,581 | | |
| 9,581 | |
| Long-term investments | |
| 238,540 | | |
| 242,637 | |
| Deferred tax assets | |
| 32,401 | | |
| 32,430 | |
| Amount due from related parties, non-current | |
| 2,951 | | |
| 3,343 | |
| Other non-current assets | |
| 9,698 | | |
| 7,271 | |
| Operating lease right-of-use assets | |
| 6,819 | | |
| 4,187 | |
| Total assets | |
| 635,519 | | |
| 588,794 | |
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
- CONTINUED
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data,
or otherwise noted)
| | |
As of December 31, | | |
As of September 30, | |
| | |
2023 | | |
2024 | |
| | |
| US$ | | |
| US$ | |
| Liabilities | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
| 37,286 | | |
| 32,179 | |
| Advance from customers | |
| 233 | | |
| 235 | |
| Amount due to related parties | |
| 3,475 | | |
| 3,229 | |
| Accrued expenses and other current liabilities | |
| 44,450 | | |
| 35,188 | |
| Income tax payables | |
| 986 | | |
| 179 | |
| Notes payable | |
| 66,991 | | |
| 74,046 | |
| Short-term bank borrowings | |
| 1,690 | | |
| 80,512 | |
| Total current liabilities | |
| 155,111 | | |
| 225,568 | |
| Deferred tax liabilities | |
| 4,169 | | |
| 4,132 | |
| Long-term borrowings | |
| 120,020 | | |
| 41,193 | |
| Other non-current liabilities | |
| 270 | | |
| 49 | |
| Non-current operating lease liabilities | |
| 3,197 | | |
| 2,310 | |
| Total liabilities | |
| 282,767 | | |
| 273,252 | |
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
- CONTINUED
(Amounts in thousands of U.S. dollars (“US$”)
except for number of shares and per share data,
or otherwise noted)
| | |
As of December 31, | | |
As of September 30, | |
| | |
2023 | | |
2024 | |
| | |
| US$ | | |
| US$ | |
| Equity | |
| | | |
| | |
| Ordinary shares | |
| 26 | | |
| 26 | |
| Additional paid-in capital | |
| 273,386 | | |
| 276,956 | |
| Treasury stock | |
| (12,874 | ) | |
| (14,543 | ) |
| Accumulated retained earnings | |
| 104,351 | | |
| 65,494 | |
| Accumulated other comprehensive loss | |
| (14,008 | ) | |
| (13,763 | ) |
| Total Zepp Health Corporation shareholders’ equity | |
| 350,881 | | |
| 314,170 | |
| Noncontrolling interest | |
| 1,871 | | |
| 1,372 | |
| Total equity | |
| 352,752 | | |
| 315,542 | |
| Total liabilities and equity | |
| 635,519 | | |
| 588,794 | |
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(Amounts in thousands of U.S. dollars (“US$”)
except for number of shares and per share data,
or otherwise noted)
| | |
For the Three Months Ended September 30, | |
| | |
2023 | | |
2024 | |
| | |
US$ | | |
US$ | |
| Revenues | |
| 83,111 | | |
| 42,462 | |
| Cost of revenues | |
| (54,942 | ) | |
| (25,218 | ) |
| Gross profit | |
| 28,169 | | |
| 17,244 | |
| Operating expenses: | |
| | | |
| | |
| Selling and marketing | |
| (9,756 | ) | |
| (11,896 | ) |
| General and administrative | |
| (6,669 | ) | |
| (7,026 | ) |
| Research and development | |
| (10,365 | ) | |
| (10,859 | ) |
| Total operating expenses | |
| (26,790 | ) | |
| (29,781 | ) |
| Operating income/(loss) | |
| 1,379 | | |
| (12,537 | ) |
| | |
| | | |
| | |
| Other income and expenses: | |
| | | |
| | |
| Interest income | |
| 812 | | |
| 941 | |
| Interest expense | |
| (1,612 | ) | |
| (1,289 | ) |
| Other expense, net | |
| (239 | ) | |
| (84 | ) |
| (Loss)/gain from fair value change of long-term investments | |
| (76 | ) | |
| 175 | |
| Investment income | |
| 119 | | |
| - | |
| Income/(loss) before income tax and loss from equity method investments | |
| 383 | | |
| (12,794 | ) |
| Income tax expenses | |
| (66 | ) | |
| - | |
| Income/(loss) before income from equity method investments | |
| 317 | | |
| (12,794 | ) |
| Net loss from equity method investments | |
| (51 | ) | |
| (465 | ) |
| Net income/(loss) | |
| 266 | | |
| (13,259 | ) |
| Less: Net loss attributable to noncontrolling interest | |
| (27 | ) | |
| (8 | ) |
| Net income/(loss) attributable to Zepp Health Corporation | |
| 293 | | |
| (13,251 | ) |
| Net income/(loss) per share attributable to Zepp Health Corporation | |
| | | |
| | |
| Basic income/(loss) per ordinary share | |
| 0.001 | | |
| (0.05 | ) |
| Diluted income/(loss) per ordinary share | |
| 0.001 | | |
| (0.05 | ) |
| | |
| | | |
| | |
| Net income/(loss) per ADS (16 ordinary shares equal to 1 ADS) 3 | |
| | | |
| | |
| ADS – basic | |
| 0.02 | | |
| (0.82 | ) |
| ADS – diluted | |
| 0.02 | | |
| (0.82 | ) |
| | |
| | | |
| | |
| Weighted average number of shares used in computing net income/(loss) per share | |
| | | |
| | |
| Ordinary share – basic | |
| 243,154,138 | | |
| 258,386,436 | |
| Ordinary share – diluted | |
| 256,149,311 | | |
| 258,386,436 | |
Zepp Health Corporation
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data,
or otherwise noted)
| | |
For the Three Months Ended September 30, | |
| | |
2023 | | |
2024 | |
| | |
US$ | | |
US$ | |
| Total operating expenses | |
| (26,790 | ) | |
| (29,781 | ) |
| Share-based compensation expenses2 | |
| 1,906 | | |
| 638 | |
| Total adjusted operating expenses | |
| (24,884 | ) | |
| (29,143 | ) |
| | |
| | | |
| | |
| Operating income/(loss) | |
| 1,379 | | |
| (12,537 | ) |
| Share-based compensation expenses | |
| 1,906 | | |
| 638 | |
| Adjusted operating income/(loss) | |
| 3,285 | | |
| (11,899 | ) |
| | |
| | | |
| | |
| Net income/(loss) | |
| 266 | | |
| (13,259 | ) |
| Share-based compensation expenses | |
| 1,906 | | |
| 638 | |
| Income tax expenses | |
| 66 | | |
| - | |
| Interest income | |
| (812 | ) | |
| (941 | ) |
| Interest expense | |
| 1,612 | | |
| 1,289 | |
| Adjusted EBIT | |
| 3,038 | | |
| (12,273 | ) |
| | |
| | | |
| | |
| Net income/(loss) attributable to Zepp Health Corporation | |
| 293 | | |
| (13,251 | ) |
| Share-based compensation expenses | |
| 1,906 | | |
| 638 | |
| Adjusted net income/(loss) attributable to Zepp Health Corporation2 | |
| 2,199 | | |
| (12,613 | ) |
| Adjusted net income/(loss) per share attributable to Zepp Health Corporation | |
| | | |
| | |
| Adjusted basic income/(loss) per ordinary share | |
| 0.01 | | |
| (0.05 | ) |
| Adjusted diluted income/(loss) per ordinary share | |
| 0.01 | | |
| (0.05 | ) |
| | |
| | | |
| | |
| Adjusted net income/(loss) per ADS (16 ordinary shares equal to 1 ADS) 3 | |
| | | |
| | |
| ADS – basic | |
| 0.14 | | |
| (0.78 | ) |
| ADS – diluted | |
| 0.14 | | |
| (0.78 | ) |
| | |
| | | |
| | |
| Weighted average number of shares used in computing adjusted net income/(loss) per share | |
| | | |
| | |
| Ordinary share – basic | |
| 243,154,138 | | |
| 258,386,436 | |
| Ordinary share – diluted | |
| 256,149,311 | | |
| 258,386,436 | |
| | |
| | | |
| | |
| Share-based compensation expenses included are follows: | |
| | | |
| | |
| Selling and marketing | |
| 183 | | |
| 31 | |
| General and administrative | |
| 838 | | |
| 340 | |
| Research and development | |
| 885 | | |
| 267 | |
| Total | |
| 1,906 | | |
| 638 | |
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(Amounts in thousands of U.S. dollars (“US$”)
except for number of shares and per share data,
or otherwise noted)
| | |
For the Nine Months Ended September 30, | |
| | |
2023 | | |
2024 | |
| | |
US$ | | |
US$ | |
| Revenues | |
| 269,853 | | |
| 123,061 | |
| Cost of revenues | |
| (206,329 | ) | |
| (74,756 | ) |
| Gross profit | |
| 63,524 | | |
| 48,305 | |
| Operating expenses: | |
| | | |
| | |
| Selling and marketing | |
| (32,543 | ) | |
| (33,220 | ) |
| General and administrative | |
| (21,678 | ) | |
| (18,299 | ) |
| Research and development | |
| (40,379 | ) | |
| (35,098 | ) |
| Total operating expenses | |
| (94,600 | ) | |
| (86,617 | ) |
| Operating loss | |
| (31,076 | ) | |
| (38,312 | ) |
| | |
| | | |
| | |
| Other income and expenses: | |
| | | |
| | |
| Interest income | |
| 2,264 | | |
| 2,901 | |
| Interest expense | |
| (5,314 | ) | |
| (4,105 | ) |
| Other (expense)/income, net | |
| (641 | ) | |
| 111 | |
| Gain from fair value change of long-term investments | |
| 922 | | |
| 1,978 | |
| Investment income | |
| 153 | | |
| - | |
| Loss before income tax and loss from equity method investments | |
| (33,692 | ) | |
| (37,427 | ) |
| Income tax benefits/(expenses) | |
| 5,205 | | |
| (119 | ) |
| Loss before income from equity method investments | |
| (28,487 | ) | |
| (37,546 | ) |
| Net loss from equity method investments | |
| (1,335 | ) | |
| (1,361 | ) |
| Net loss | |
| (29,822 | ) | |
| (38,907 | ) |
| Less: Net loss attributable to noncontrolling interest | |
| (81 | ) | |
| (50 | ) |
| Net loss attributable to Zepp Health Corporation | |
| (29,741 | ) | |
| (38,857 | ) |
| Net loss per share attributable to Zepp Health Corporation | |
| | | |
| | |
| Basic loss per ordinary share | |
| (0.12 | ) | |
| (0.15 | ) |
| Diluted loss per ordinary share | |
| (0.12 | ) | |
| (0.15 | ) |
| | |
| | | |
| | |
| Net loss per ADS (16 ordinary shares equal to 1 ADS) 3 | |
| | | |
| | |
| ADS – basic | |
| (1.95 | ) | |
| (2.40 | ) |
| ADS – diluted | |
| (1.95 | ) | |
| (2.40 | ) |
| | |
| | | |
| | |
| Weighted average number of shares used in computing net loss per share | |
| | | |
| | |
| Ordinary share – basic | |
| 243,679,883 | | |
| 259,433,512 | |
| Ordinary share – diluted | |
| 243,679,883 | | |
| 259,433,512 | |
Zepp Health Corporation
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data,
or otherwise noted)
| | |
For the Nine Months Ended September 30, | |
| | |
2023 | | |
2024 | |
| | |
US$ | | |
US$ | |
| Total operating expenses | |
| (94,600 | ) | |
| (86,617 | ) |
| Share-based compensation expenses2 | |
| 7,013 | | |
| 3,827 | |
| Total adjusted operating expenses | |
| (87,587 | ) | |
| (82,790 | ) |
| | |
| | | |
| | |
| Operating loss | |
| (31,076 | ) | |
| (38,312 | ) |
| Share-based compensation expenses | |
| 7,013 | | |
| 3,827 | |
| Adjusted operating loss | |
| (24,063 | ) | |
| (34,485 | ) |
| | |
| | | |
| | |
| Net loss | |
| (29,822 | ) | |
| (38,907 | ) |
| Share-based compensation expenses | |
| 7,013 | | |
| 3,827 | |
| Income tax (benefits)/expenses | |
| (5,205 | ) | |
| 119 | |
| Interest income | |
| (2,264 | ) | |
| (2,901 | ) |
| Interest expense | |
| 5,314 | | |
| 4,105 | |
| Adjusted EBIT | |
| (24,964 | ) | |
| (33,757 | ) |
| | |
| | | |
| | |
| Net loss attributable to Zepp Health Corporation | |
| (29,741 | ) | |
| (38,857 | ) |
| Share-based compensation expenses | |
| 7,013 | | |
| 3,827 | |
| Adjusted net loss attributable to Zepp Health Corporation2 | |
| (22,728 | ) | |
| (35,030 | ) |
| Adjusted net loss per share attributable to Zepp Health Corporation | |
| | | |
| | |
| Adjusted basic loss per ordinary share | |
| (0.09 | ) | |
| (0.14 | ) |
| Adjusted diluted loss per ordinary share | |
| (0.09 | ) | |
| (0.14 | ) |
| | |
| | | |
| | |
| Adjusted net loss per ADS (16 ordinary shares equal to 1 ADS) 3 | |
| | | |
| | |
| ADS – basic | |
| (1.49 | ) | |
| (2.16 | ) |
| ADS – diluted | |
| (1.49 | ) | |
| (2.16 | ) |
| | |
| | | |
| | |
| Weighted average number of shares used in computing adjusted net loss per share | |
| | | |
| | |
| Ordinary share – basic | |
| 243,679,883 | | |
| 259,433,512 | |
| Ordinary share – diluted | |
| 243,679,883 | | |
| 259,433,512 | |
| | |
| | | |
| | |
| Share-based compensation expenses included are follows: | |
| | | |
| | |
| Selling and marketing | |
| 497 | | |
| 368 | |
| General and administrative | |
| 3,154 | | |
| 1,812 | |
| Research and development | |
| 3,362 | | |
| 1,647 | |
| Total | |
| 7,013 | | |
| 3,827 | |
Zepp Health (NYSE:ZEPP)
Historical Stock Chart
From Dec 2024 to Jan 2025
Zepp Health (NYSE:ZEPP)
Historical Stock Chart
From Jan 2024 to Jan 2025
