Zepp Health Corp 6-K, filed May 25, 2022

Zepp Health Corp (ZEPP)

6-K 2022-05-25 For: 2022-05-25

Added on April 06, 2026

About this 6-K

Zepp Health Corp filed this 6-K on May 25, 2022.

	For the Three Months Ended
GAAP in millions, except for percentages and per share/ADS amounts	Mar. 31, 2022			Mar. 31, 2021¹
Revenue RMB		757.1			1,147.3
Revenue US$		119.4			175.1
Gross Margin		20.1	%		22.5	%
Net loss attributable to Zepp Health Corporation RMB		(88.7	)		(40.4	)
Adjusted net loss attributable to Zepp Health Corporation RMB²		(75.7	)		(29.0	)
Diluted net loss per share RMB		(0.36	)		(0.16	)
Diluted net loss per ADS US$		(0.22	)		(0.10	)
Adjusted diluted net loss per share RMB³		(0.30	)		(0.12	)
Adjusted diluted net loss per ADS US$		(0.19	)		(0.07	)
Units Shipped in millions		3.7			6.3

	As of December 31,		As of March 31,
	2021		2022
	RMB		RMB		US$
Assets
Current assets:
Cash and cash equivalents		1,468,499		1,022,014		161,219
Restricted cash		41,040		30,844		4,866
Term deposit		5,000		5,000		789
Accounts receivable, net		537,084		526,001		82,975
Amounts due from related parties		295,614		189,017		29,817
Inventories, net		1,249,327		1,530,587		241,444
Short-term investments		19,351		36,080		5,691
Prepaid expenses and other current assets		315,038		315,129		49,710
Total current assets		3,930,953		3,654,672		576,511

Property, plant and equipment, net		133,873		126,574		19,967
Intangible asset, net		135,582		131,592		20,758
Goodwill		61,055		60,736		9,581
Long-term investments		1,552,591		1,635,540		258,000
Deferred tax assets		143,419		177,683		28,029
Other non-current assets		19,593		20,877		3,293
Operating lease right-of-use assets		108,435		98,330		15,511
Total assets		6,085,501		5,906,004		931,650

	For the Three Months Ended March 31,
	2021			2022
	RMB			RMB			US$
Revenues		1,147,263			757,050			119,422
Cost of revenues		(889,058	)		(604,810	)		(95,406	)
Gross profit		258,205			152,240			24,016
Operating expenses:
Selling and marketing		(90,787	)		(103,105	)		(16,264	)
General and administrative		(65,285	)		(58,161	)		(9,175	)
Research and development		(152,330	)		(146,408	)		(23,095	)
Total operating expenses		308,402			307,674			48,534
Operating loss		(50,197	)		(155,434	)		(24,518	)

Other income and expenses:

Interest income		5,728			2,547			402
Interest expense		(6,648	)		(11,670	)		(1,841	)
Other income, net		2,501			3,745			591
Gain from fair value change of long-term investment		-			51,698			8,155
Loss before income tax and income from equity method investment		(48,616	)		(109,114	)		(17,211	)
Income tax benefits		7,598			16,747			2,642

Loss before income from equity method investments		(41,018	)		(92,367	)		(14,569	)
Net income from equity method investments		457			3,508			553
Net loss		(40,561	)		(88,859	)		(14,016	)

Less: Net loss attributable to noncontrolling interest		(134	)		(134	)		(21	)
Net loss attributable to Zepp Health Corporation		(40,427	)		(88,725	)		(13,995	)
Net loss per share attributable to Zepp Health Corporation
Basic loss per ordinary share		(0.16	)		(0.36	)		(0.06	)
Diluted loss per ordinary share		(0.16	)		(0.36	)		(0.06	)

Net loss per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic		(0.64	)		(1.42	)		(0.22	)
ADS – diluted		(0.64	)		(1.42	)		(0.22	)

Weighted average number of shares used in computing net loss per share
Ordinary share – basic		250,794,275			249,515,734			249,515,734
Ordinary share – diluted		250,794,275			249,515,734			249,515,734

	As of December 31,		As of March 31,
	2021		2022
	RMB		RMB		US$
Liabilities
Current liabilities:
Accounts payable		1,317,306		1,000,608		157,842
Advance from customers		4,230		2,424		382
Amount due to related parties		50,123		62,913		9,924
Accrued expenses and other current liabilities		316,083		292,801		46,188
Income tax payables		2,595		20,184		3,184
Notes payable		103,795		78,755		12,423
Short-term bank borrowings		358,000		701,000		110,580
Total current liabilities		2,152,132		2,158,685		340,523
Deferred tax liabilities		26,909		30,176		4,760
Long-term borrowings		726,851		670,309		105,739
Other non-current liabilities		175,053		175,053		27,614
Non-current operating lease liabilities		71,117		59,549		9,394
Total liabilities		3,152,062		3,093,772		488,030

	As of December 31,			As of March 31,
	2021			2022
	RMB			RMB			US$
Equity
Ordinary shares		159			159			25
Additional paid-in capital		1,641,544			1,654,762			261,032
Treasury stock		(21,798	)		(44,880	)		(7,080	)
Accumulated retained earnings		1,271,171			1,142,431			180,214
Accumulated other comprehensive income		29,271			46,802			7,385
Total Zepp Health Corporation shareholders' equity		2,920,347			2,799,274			441,576
Noncontrolling interests		13,092			12,958			2,044
Total equity		2,933,439			2,812,232			443,620
Total liabilities and equity		6,085,501			5,906,004			931,650