Zepp Health Corp 6-K, filed Aug 22, 2024

Zepp Health Corp (ZEPP)

6-K 2024-08-22 For: 2024-08-22

Added on April 06, 2026

About this 6-K

Zepp Health Corp filed this 6-K on August 22, 2024.

	For the Three Months Ended						For the Six Months Ended
Number in millions, except for percentages and per- share/ADS amounts	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Revenue US$		40.6			92.4			80.6			186.7
Gross margin		40.3	%		22.0	%		38.5	%		18.9	%
Net loss US$		(10.8	)		(10.1	)		(25.6	)		(30.1	)
Adjusted EBIT US$³		(9.5	)		(9.2	)		(21.5	)		(28.0	)
Net loss attributable to Zepp Health Corporation US$		(10.8	)		(10.0	)		(25.6	)		(30.0	)
Adjusted net loss attributable to Zepp Health Corporation US$¹		(9.9	)		(8.5	)		(22.4	)		(24.9	)
Basic/diluted net loss per ADS US$		(0.17	)		(0.16	)		(0.39	)		(0.49	)
Adjusted basic/diluted net loss per ADS US$²		(0.15	)		(0.14	)		(0.34	)		(0.41	)
Units shipped in millions		1.3			3.8			2.5			7.3

	As of December 31,		As of June 30,
	2023		2024
	US$		US$
Assets
Current assets:
Cash and cash equivalents		133,669		118,601
Restricted cash		6,800		10,070
Accounts receivable, net		60,727		42,183
Amounts due from related parties		8,605		5,531
Inventories, net		84,887		71,908
Short-term investments		5,153		4,770
Prepaid expenses and other current assets		16,891		16,722
Total current assets		316,732		269,785

Property, plant and equipment, net		8,929		7,881
Intangible asset, net		9,868		8,561
Goodwill		9,581		9,581
Long-term investments		238,540		234,543
Deferred tax assets		32,401		31,480
Amount due from related parties, non-current		2,951		3,255
Other non-current assets		9,698		7,647
Operating lease right-of-use assets		6,819		4,446
Total assets		635,519		577,179

	For the Three Months Ended June 30,
	2023			2024
	US$			US$
Revenues		92,449			40,642
Cost of revenues		(72,124	)		(24,281	)
Gross profit		20,325			16,361
Operating expenses:
Selling and marketing		(10,214	)		(10,555	)
General and administrative		(7,727	)		(4,853	)
Research and development		(12,771	)		(10,818	)
Total operating expenses		(30,712	)		(26,226	)
Operating loss		(10,387	)		(9,865	)

Other income and expenses:
Interest income		848			948
Interest expense		(1,756	)		(1,373	)
Other (expense)/income, net		(112	)		127
Gain/(loss) from fair value change of long-term investments		541			(300	)
Loss before income tax and loss from equity method investments		(10,866	)		(10,463	)
Income tax benefits/(expenses)		1,656			(47	)
Loss before income from equity method investments		(9,210	)		(10,510	)
Net loss from equity method investments		(856	)		(337	)
Net loss		(10,066	)		(10,847	)
Less: Net loss attributable to noncontrolling interest		(26	)		(10	)
Net loss attributable to Zepp Health Corporation		(10,040	)		(10,837	)
Net loss per share attributable to Zepp Health Corporation
Basic loss per ordinary share		(0.04	)		(0.04	)
Diluted loss per ordinary share		(0.04	)		(0.04	)

Net loss per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic		(0.16	)		(0.17	)
ADS – diluted		(0.16	)		(0.17	)

Weighted average number of shares used in computing net loss per share
Ordinary share – basic		243,550,673			260,399,926
Ordinary share – diluted		243,550,673			260,399,926

	For the Six Months Ended June 30,
	2023			2024
	US$			US$
Revenues		186,742			80,599
Cost of revenues		(151,387	)		(49,538	)
Gross profit		35,355			31,061
Operating expenses:

Selling and marketing		(22,787	)		(21,324	)
General and administrative		(15,009	)		(11,273	)
Research and development		(30,014	)		(24,239	)
Total operating expenses		(67,810	)		(56,836	)
Operating loss		(32,455	)		(25,775	)

Other income and expenses:
Interest income		1,452			1,960
Interest expense		(3,702	)		(2,816	)
Other (expense)/income, net		(402	)		195
Gain from fair value change of long-term investments		998			1,803
Investment income		34			-
Loss before income tax and loss from equity method investments		(34,075	)		(24,633	)
Income tax benefits/(expenses)		5,271			(119	)
Loss before income from equity method investments		(28,804	)		(24,752	)
Net loss from equity method investments		(1,284	)		(896	)
Net loss		(30,088	)		(25,648	)
Less: Net loss attributable to noncontrolling interest		(54	)		(42	)
Net loss attributable to Zepp Health Corporation		(30,034	)		(25,606	)
Net loss per share attributable to Zepp Health Corporation
Basic loss per ordinary share		(0.12	)		(0.10	)
Diluted loss per ordinary share		(0.12	)		(0.10	)

Net loss per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic		(0.49	)		(0.39	)
ADS – diluted		(0.49	)		(0.39	)

Weighted average number of shares used in computing net loss per share
Ordinary share – basic		243,947,113			259,962,803
Ordinary share – diluted		243,947,113			259,962,803

	As of December 31,		As of June 30,
	2023		2024
	US$		US$
Liabilities
Current liabilities:
Accounts payable		37,286		26,344
Advance from customers		233		227
Amount due to related parties		3,475		2,709
Accrued expenses and other current liabilities		44,450		34,856
Income tax payables		986		1,008
Notes payable		66,991		64,124
Short-term bank borrowings		1,690		65,362
Total current liabilities		155,111		194,630
Deferred tax liabilities		4,169		4,013
Long-term borrowings		120,020		52,902
Other non-current liabilities		270		67
Non-current operating lease liabilities		3,197		2,659
Total liabilities		282,767		254,271

	As of December 31,			As of June 30,
	2023			2024
	US$			US$
Equity
Ordinary shares		26			26
Additional paid-in capital		273,386			276,317
Treasury stock		(12,874	)		(14,061	)
Accumulated retained earnings		104,351			78,745
Accumulated other comprehensive loss		(14,008	)		(19,500	)
Total Zepp Health Corporation shareholders’ equity		350,881			321,527
Noncontrolling interest		1,871			1,381
Total equity		352,752			322,908
Total liabilities and equity		635,519			577,179