Zepp Health Corp 6-K, filed Aug 20, 2021

Zepp Health Corp (ZEPP)

6-K 2021-08-20 For: 2021-08-20

Added on April 06, 2026

About this 6-K

Zepp Health Corp filed this 6-K on August 20, 2021.

	For the Three Months Ended						For the Six Months Ended
GAAP in millions, except for percentages and per share/ADS amounts	June 30, 2021			June 30, 2020 ¹			June 30, 2021			June 30, 2020¹
Revenue RMB		1,835.1			1,137.3			2,982.4			2,225.7
Revenue USD		284.2			161.0			461.9			315.0
Gross Margin		22.0	%		22.3	%		22.2	%		22.4	%
Net income attributable to Zepp Health Corporation RMB		92.6			13.3			52.1			32.5
Adjusted net income attributable to Zepp Health Corporation RMB²		132.5			19.1			103.4			44.7
Diluted net income per share RMB		0.35			0.05			0.20			0.13
Diluted net income per ADS USD		0.22			0.03			0.12			0.07
Adjusted diluted net income per share RMB³		0.50			0.07			0.39			0.17
Adjusted diluted net income per ADS USD		0.31			0.04			0.24			0.10
Units Shipped		11.5			8.9			17.8			16.5

	As of December 31,		As of June 30,
	2020		2021
	RMB		RMB		US$
Assets
Current assets:
Cash and cash equivalents		2,273,349		1,392,572		215,682
Restricted cash		2,401		1,418		220
Term deposit		5,000		5,000		774
Accounts receivable		298,038		422,346		65,413
Amounts due from related parties, current		860,213		913,451		141,476
Inventories, net		1,217,537		1,305,510		202,198
Short-term investments		18,430		19,045		2,950
Prepaid expenses and other current assets		152,898		152,801		23,666
Total current assets		4,827,866		4,212,143		652,379

Property, plant and equipment, net		124,619		149,308		23,125
Intangible asset, net		145,213		139,245		21,566
Goodwill		62,515		61,860		9,581
Long-term investments		443,986		1,512,922		234,322
Deferred tax assets		120,190		136,361		21,120
Other non-current assets		28,165		20,094		3,112
Non-current operating lease right-of-use assets		151,165		129,816		20,106
Total assets		5,903,719		6,361,749		985,311

Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
except for number of shares and per share data, or otherwise noted)

Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
except for number of shares and per share data, or otherwise noted)

	For the Three Months Ended June 30,
	2020			2021
	RMB			RMB			US$
Revenues		1,137,274			1,835,141			284,227
Cost of revenues		(883,891	)		(1,432,105	)		(221,805	)
Gross profit		253,383			403,036			62,422
Operating expenses:
Selling and marketing		(71,342	)		(104,686	)		(16,214	)
General and administrative		(55,423	)		(66,448	)		(10,291	)
Research and development		(117,207	)		(160,304	)		(24,828	)
Total operating expenses		243,972			331,438			51,333
Operating income		9,411			71,598			11,089
Other income and expenses:
Investment income		-			13,507			2,092
Interest income		13,667			4,525			701
Interest expense		(8,049	)		(10,342	)		(1,602	)
Other income/(expenses), net		9,186			(216	)		(33	)
Income before income tax and income from equity method investment		24,215			79,072			12,247
Income tax expenses		(2,486	)		(11,607	)		(1,798	)
Income before (loss)/income from equity method investments		21,729			67,465			10,449
Net (loss)/income from equity method investments		(7,611	)		24,836			3,847
Net income		14,118			92,301			14,296
Less: Net income/(loss) attributable to noncontrolling interest		811			(269	)		(42	)
Net income attributable to Zepp Health Corporation		13,307			92,570			14,338
Net income per share attributable to Zepp Health Corporation
Basic income per ordinary share		0.05			0.37			0.06
Diluted income per ordinary share		0.05			0.35			0.05

Net income per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic		0.21			1.47			0.23
ADS – diluted		0.21			1.41			0.22

Weighted average number of shares used in computing net income per share
Ordinary share – basic		247,828,507			251,813,617			251,813,617
Ordinary share – diluted		259,364,320			263,499,745			263,499,745

Zepp Health Corporation
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
except for number of shares and per share data, or otherwise noted)

	For the Three Months Ended June 30,
	2020			2021
	RMB			RMB		US$
Net income attributable to Zepp Health Corporation		13,307			92,570		14,338
Share-based compensation expenses		5,835			39,922		6,183
Adjusted net income attributable to Zepp Health Corporation ²		19,142			132,492		20,521

Adjusted net income per share attributable to Zepp Health Corporation
Adjusted basic income per ordinary share		0.08			0.53		0.08
Adjusted diluted income per ordinary share		0.07			0.50		0.08

Adjusted net income per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic		0.31			2.10		0.33
ADS – diluted		0.30			2.01		0.31

Weighted average number of shares used in computing adjusted net income per share
Ordinary share – basic		247,828,507			251,813,617		251,813,617
Ordinary share – diluted		259,364,320			263,499,745		263,499,745

Share-based compensation expenses included are follows:
Cost of revenues		(61	)		-		-
Selling and marketing		632			6,860		1,062
General and administrative		3,833			6,003		930
Research and development		1,431			27,059		4,191
Total		5,835			39,922		6,183

	For the Six Months Ended June 30,
	2020			2021
	RMB			RMB			US$
Revenues		2,225,735			2,982,404			461,916
Cost of revenues		(1,727,792	)		(2,321,163	)		(359,502	)
Gross profit		497,943			661,241			102,414
Operating expenses:
Selling and marketing		(126,185	)		(195,473	)		(30,275	)
General and administrative		(106,306	)		(131,733	)		(20,403	)
Research and development		(235,543	)		(312,634	)		(48,421	)
Total operating expenses		468,034			639,840			99,099
Operating income		29,909			21,401			3,315
Other income and expenses:
Investment income		-			13,507			2,092
Interest income		21,338			10,253			1,588
Interest expense		(8,773	)		(16,990	)		(2,631	)
Other income, net		755			2,285			354
Gain from fair value change of long-term investment		1,293			-			-
Income before income tax and income from equity method investment		44,522			30,456			4,718
Income tax expenses		(4,519	)		(4,009	)		(621	)
Income before (loss)/income from equity method investments		40,003			26,447			4,097
Net (loss)/income from equity method investments		(7,943	)		25,293			3,917
Net income		32,060			51,740			8,014
Less: Net loss attributable to noncontrolling interest		(415	)		(403	)		(62	)
Net income attributable to Zepp Health Corporation		32,475			52,143			8,076
Net income per share attributable to Zepp Health Corporation
Basic income per ordinary share		0.13			0.21			0.03
Diluted income per ordinary share		0.13			0.20			0.03

Net income per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic		0.52			0.83			0.13
ADS – diluted		0.50			0.79			0.12

Weighted average number of shares used in computing net income per share
Ordinary share – basic		247,742,838			251,306,762			251,306,762
Ordinary share – diluted		259,456,193			263,397,411			263,397,411

	As of December 31,		As of June 30,
	2020		2021
	RMB		RMB		US$
Liabilities
Current liabilities:
Accounts payable		1,951,335		1,465,456		226,970
Advance from customers		42,502		31,336		4,853
Amount due to related parties, current		11,185		23,028		3,567
Accrued expenses and other current liabilities		252,275		204,221		31,630
Income tax payables		27,706		15,014		2,325
Notes payable		-		4,525		701
Short-term bank borrowings		504,671		687,789		106,525
Total current liabilities		2,789,674		2,431,369		376,571
Deferred tax liabilities		22,374		25,870		4,007
Long-term borrowing		60,000		727,395		112,659
Other non-current liabilities		185,168		240,915		37,313
Non-current operating lease liabilities		116,245		94,698		14,667
Total liabilities		3,173,461		3,520,247		545,217

	As of December 31,		As of June 30,
	2020		2021
	RMB		RMB		US$
Equity
Ordinary shares		157		158		24
Additional paid-in capital		1,552,109		1,613,095		249,837
Accumulated retained earnings		1,133,368		1,185,510		183,612
Accumulated other comprehensive income		44,624		38,712		5,997
Total Zepp Health Corporation shareholders' equity		2,730,258		2,837,475		439,470
Noncontrolling interests		-		4,027		624
Total equity		2,730,258		2,841,502		440,094
Total liabilities and equity		5,903,719		6,361,749		985,311