Zepp Health Corp 6-K, filed Mar 27, 2025

Zepp Health Corp (ZEPP)

6-K 2025-03-27 For: 2025-03-27

Added on April 06, 2026

About this 6-K

Zepp Health Corp filed this 6-K on March 27, 2025.

	·	Revenue reached US$59.5 million representing a 40.2% of quarter over quarter increase, out of which our Amazfit-branded products grew by 43.4% quarter-over-quarter.
	·	Gross margin was 36.8% compared with 34.7% in the same period last year.
	·	Adjusted operating loss¹ was US$7.4 million, which was the lowest level in 2024.

	·	Gross margin was 38.5% compared with 26.2% in the full year of 2023.
	·	Adjusted operating expenses² was US$110.4 million, compared with US$111.7 million in the full year of 2023.

	As of December 31,		As of December 31,
	2023		2024
	US$		US$
Assets
Current assets:
Cash and cash equivalents		133,669		91,069
Restricted cash		6,800		19,666
Accounts receivable, net		60,727		62,965
Amounts due from related parties		8,605		2,663
Inventories, net		84,887		56,789
Short-term investments		5,153		997
Prepaid expenses and other current assets		16,891		17,415
Total current assets		316,732		251,564

Property, plant and equipment, net		8,929		6,898
Intangible asset, net		9,868		7,091
Goodwill		9,581		9,581
Long-term investments		238,540		225,910
Deferred tax assets		32,401		17,465
Amount due from related parties, non-current		2,951		2,019
Other non-current assets		9,698		4,607
Operating lease right-of-use assets		6,819		3,458
Total assets		635,519		528,593

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 December 31,
	2023		2024
	US$		US$
Liabilities
Current liabilities:
Accounts payable		37,286		51,077
Advance from customers		233		197
Amount due to related parties		3,475		2,477
Accrued expenses and other current liabilities		44,450		37,576
Income tax payables		986		508
Notes payable		66,991		61,679
Short-term bank borrowings		1,690		41,853
Total current liabilities		155,111		195,367
Deferred tax liabilities		4,169		3,117
Long-term borrowings		120,020		75,241
Other non-current liabilities		270		133
Non-current operating lease liabilities		3,197		2,007
Total liabilities		282,767		275,865

	For the Three Months Ended December 31,
	2023			2024
	US$			US$
Revenues		83,007			59,542
Cost of revenues		(54,173	)		(37,613	)
Gross profit		28,834			21,929
Operating expenses:
Selling and marketing		(11,984	)		(13,251	)
General and administrative		(5,100	)		(6,555	)
Research and development		(11,124	)		(11,061	)
Total operating expenses		(28,208	)		(30,867	)
Operating income/(loss)		626			(8,938	)

Other income and expenses:
Interest income		825			771
Interest expense		(1,438	)		(1,447	)
Other income/(expense), net		116			(767	)
(Loss)/gain from fair value change of long-term investments		(709	)		33
Impairment loss from investments		(313	)		(10,129	)
Investment loss		(44	)		-
Loss before income tax and loss from equity method investments		(937	)		(20,477	)
Income tax expenses		(2,775	)		(13,574	)
Loss before income/(loss) from equity method investments		(3,712	)		(34,051	)
Net income/(loss) from equity method investments		2,448			(2,850	)
Net loss		(1,264	)		(36,901	)
Less: Net income/(loss) attributable to noncontrolling interest		15			(25	)
Net loss attributable to Zepp Health Corporation		(1,279	)		(36,876	)
Net loss per share attributable to Zepp Health Corporation
Basic loss per ordinary share		(0.01	)		(0.14	)
Diluted loss per ordinary share		(0.01	)		(0.14	)

Net loss per ADS (16 ordinary shares equal to 1 ADS)
ADS – basic		(0.08	)		(2.29	)
ADS – diluted		(0.08	)		(2.29	)

Weighted average number of shares used in computing net loss per share
Ordinary share – basic		241,521,944			257,216,039
Ordinary share – diluted		241,521,944			257,216,039

	Years Ended December 31,
	2023			2024
	US$			US$
Revenues		352,860			182,603
Cost of revenues		(260,502	)		(112,369	)
Gross profit		92,358			70,234
Operating expenses:

Selling and marketing		(44,527	)		(46,471	)
General and administrative		(26,778	)		(24,854	)
Research and development		(51,503	)		(46,159	)
Total operating expenses		(122,808	)		(117,484	)
Operating loss		(30,450	)		(47,250	)

Other income and expenses:
Interest income		3,089			3,672
Interest expense		(6,752	)		(5,552	)
Other expense, net		(525	)		(656	)
Gain from fair value change of long-term investments		213			2,011
Impairment loss from investments		(313	)		(10,129	)
Investment income		109			-
Loss before income tax and income/(loss) from equity method investments		(34,629	)		(57,904	)
Income tax benefits/(expenses)		2,430			(13,693	)
Loss before income/(loss) from equity method investments		(32,199	)		(71,597	)
Net income/(loss) from equity method investments		1,113			(4,211	)
Net loss		(31,086	)		(75,808	)
Less: Net loss attributable to noncontrolling interest		(66	)		(75	)
Net loss attributable to Zepp Health Corporation		(31,020	)		(75,733	)
Net loss per share attributable to Zepp Health Corporation
Basic loss per ordinary share		(0.13	)		(0.29	)
Diluted loss per ordinary share		(0.13	)		(0.29	)

Net loss per ADS (16 ordinary shares equal to 1 ADS)
ADS – basic		(2.04	)		(4.68	)
ADS – diluted		(2.04	)		(4.68	)

Weighted average number of shares used in computing net loss per share
Ordinary share – basic		243,135,964			258,876,120
Ordinary share – diluted		243,135,964			258,876,120


	As of December 31,			As of December 31,
	2023			2024
	US$			US$
Equity
Ordinary shares		26			26
Additional paid-in capital		273,386			278,116
Treasury stock		(12,874	)		(14,993	)
Accumulated retained earnings		104,351			28,618
Accumulated other comprehensive loss		(14,008	)		(40,178	)
Total Zepp Health Corporation shareholders’ equity		350,881			251,589
Noncontrolling interest		1,871			1,139
Total equity		352,752			252,728
Total liabilities and equity		635,519			528,593