AMSTERDAM, Nov. 20,
2023 /PRNewswire/ -- Zepp Health Corporation ("Zepp"
or the "Company") (NYSE: ZEPP) today reported revenues of
RMB0.6 billion (US$82.5 million); a basic and diluted net income
per share of RMB0.01 (US$0.002); and a basic and diluted net income
per ADS of RMB0.05 (US$0.01) for
the third quarter ended September 30,
2023. Each ADS represents four Class A ordinary shares.
Mr. Wayne Wang Huang, Chairman and CEO of Zepp, commented,
"In the third quarter, we achieved a business turnaround, returning
to profitability after six loss-making quarters. Despite a
year-over-year revenue decline, our high-margin self-branded
products' contribution to our top line grew to approximately 80%.
This accomplishment reaffirms the effectiveness of our operational
strategy and early success in our business model
transformation."
Mr. Huang continued, "We sustained our self-branded
products' strong performance in this quarter, thanks to our
expanded AI-empowered product portfolio and elevated brand
influence around the globe. In September
2023, we launched Amazfit Balance (previously GT series) at
IFA Berlin with seamlessly integrated health, fitness and lifestyle
features, including Zepp Pay and
Zepp Aura, enabling users to strike the ultimate balance between
life, work and wellness. Furthermore, with the launch of Amazfit
Active and Amazfit Active Edge in the fourth quarter of 2023, both
tailored for modern-day city consumers, we expect to continue
propelling sales growth of our self-branded product in the upcoming
quarters. Looking ahead, our strategy of leveraging leading
vertically integrated technology to rapidly and flexibly provide
high-quality, competitive, high-margin products will continue to be
effective and demonstrate results.
Mr. Leon Deng, Zepp's Chief Financial Officer, added, "In
the third quarter, we achieved revenues of RMB602.1 million, in line with our guidance
range. Despite a year-over-year revenue decline of 50.1%, primarily
due to lower Xiaomi-branded products sales, we marked a significant
milestone by returning to profitability in this quarter. Our net
income for the third quarter reached RMB3.0
million, a remarkable turnaround from the RMB17.1 million net loss in the same period last
year. Notably, we are making strides in our journey to transform
the Company from its heavy reliance on Xiaomi-branded products to
becoming a self-sustaining enterprise that focuses on our Amazfit
brand."
"Our improved net income could be attributed to enhanced
operating efficiency and the increasing contribution of our
self-branded products sales, which led to an overall gross margin
of 33.9%, the highest gross margin since the Company's inception in
2013. Simultaneously, our total operating expenses for the third
quarter amounted to RMB193.2
million, a 36.4% reduction compared to the same period last year.
This was achieved through our disciplined cost control
measures."
"We are proud to report our fifth consecutive quarter of
positive cash flow from operations. Our inventory levels remained
relatively steady at RMB787.0 million
as of September 30, 2023.
Additionally, we successfully reduced our debt level by
RMB117.3 million in the third quarter
of 2023, and at the same time we remained strong cash and cash
equivalent position of RMB1 billion
by the end of this quarter. Looking ahead, we will continue to
optimize our retail channels and product mix to maintain our
margins trend, with a steadfast focus on disciplined expense
management for sustained shareholder profitability."
Third Quarter 2023 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,
2023
|
Sept. 30,
2022[1]
|
Sept.
30,
2023
|
Sept.
30,
2022[1]
|
Revenue RMB
|
|
602.1
|
1,205.8
|
1,895.6
|
3,071.1
|
Revenue US$
|
|
82.5
|
169.5
|
259.8
|
431.7
|
Gross margin
|
33.9 %
|
19.1 %
|
23.7 %
|
18.9 %
|
Net
income/(loss) attributable to Zepp Health
Corporation RMB
|
3.0
|
(17.1)
|
(203.7)
|
(212.8)
|
Adjusted net
income/(loss) attributable to Zepp
Health Corporation RMB[2]
|
16.0
|
(8.8)
|
(156.0)
|
(178.9)
|
Diluted net
income/(loss) per share RMB
|
0.01
|
(0.07)
|
(0.84)
|
(0.86)
|
Diluted net
income/(loss) per ADS US$
|
0.01
|
(0.04)
|
(0.46)
|
(0.48)
|
Adjusted diluted net
income/(loss) per share RMB[3]
|
0.06
|
(0.04)
|
(0.64)
|
(0.72)
|
Adjusted diluted net
income/(loss) per ADS US$
|
0.03
|
(0.02)
|
(0.35)
|
(0.41)
|
Units shipped in
millions
|
2.8
|
5.8
|
10.0
|
15.8
|
-Xiaomi-branded
|
|
1.7
|
4.1
|
|
6.8
|
11.5
|
-Self-branded
|
|
1.1
|
1.7
|
|
3.2
|
4.3
|
|
[1] The US$
numbers in 2022 are referenced with the prior 6-K disclosures,
where translations from RMB to US$ are made at a rate
of RMB7.1135 to US$1.00, the effective noon buying rate on
September 30, 2022 as set forth in the H.10 statistical release of
the
Federal Reserve Board.
|
[2] Adjusted
net loss 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] Adjusted
diluted net loss is the abbreviation of adjusted net loss
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 2023 Financial Results
Revenues
Revenues for the third quarter of 2023 reached RMB0.6 billion (US$82.5
million), a decrease by 50.1% from the third quarter of
2022. Over 70% of the decrease in total revenues was due to the
decrease in the sales of Xiaomi wearable products.
Total units shipped in the third quarter of 2023 decreased by
51.7% year-over-year to 2.8 million, compared with 5.8 million in
the third quarter of 2022. Over 80% of the decrease in total units
shipped was due to the decrease in Xiaomi wearable products.
Gross Margin
Gross margin in the third quarter of 2023 was 33.9%, compared to
19.1% in the same period of 2022. We reached a record-high gross
margin, mainly due to the improved gross margin of our self-branded
products (which hit an all-time high of 40.1%) and largely driven
by a better product mix especially on our new products
introductions, partially offset by the decrease in the gross margin
of Xiaomi branded products.
Research and Development Expenses
Research and development expenses in the third quarter of 2023
were RMB74.6 million, a decrease by
41.4% year-over-year. This comprised 12.4% of revenues, versus
10.6% for the same period in 2022. The decrease could be attributed
to our refined research and development approaches, as we
consistently evaluated resource efficiency to ensure maximum return
on investment and productivity. We are committed to investing
in new technologies and AI to maintain our competitive edge against
our peers.
Selling and Marketing Expenses
Selling and marketing expenses in the third quarter of 2023 were
RMB70.6 million, a decrease by 43.0%
year-over-year. This comprised 11.7% of revenues, versus 10.3% for
the same period in 2022. The amount decrease resulted primarily
from our consistent push on retail profitability and channel mix
improvement, which included meticulous refinement of our retail
channels and strategic staffing arrangements across sales regions.
Meanwhile, we also sponsored several events in Berlin Marathon and
held press conference for the launch of the Amazfit Balance at
IFA-Berlin in the third quarter, and these efforts notably enhanced
our brand image in the smart wearable device market. We are
committed to investing efficiently in marketing and branding to
ensure our sustained growth.
General and Administrative Expenses
General and administrative expenses were RMB48.0 million in the third quarter of
2023, a decrease by 8.9% year-over-year. This comprised 8.0% of
revenues, compared with 4.4% in the same period in 2022. The
decrease in absolute value was largely attributable to our
personnel optimization initiative and strict administrative expense
control.
Operating Expenses
Total operating expenses for the third quarter of 2023 were
RMB193.2 million, a decrease by 36.4%
year-over-year. Adjusted operating expenses, which exclude
share-based compensation, were RMB180.3
million. We will maintain our cost-conscious approach in the
upcoming quarters, anticipating that our operating expenses will
remain at current levels or decrease further. Concurrently, we
remain committed to investing in R&D and marketing activities
to ensure our long-term competitiveness.
Operating Income/(Loss)
Operating income for the third quarter of 2023 was
RMB10.8 million, compared with
operating loss of RMB73.3 million for
the same period in 2022. The recovery in operating profit was
largely due to the improved gross margin of our self-branded
products and reduced operating expenses.
Net Income/(Loss)
Net income attributable to Zepp Health Corporation for the
third quarter of 2023 was RMB3.0
million, compared with RMB17.1
million of net loss in the third quarter of 2022. The
adjusted net income attributable to Zepp Health Corporation was
RMB16.0 million, compared with the
adjusted net loss of RMB8.8 million
for the same period of 2022.
Liquidity and Capital Resources
As of September 30, 2023, the
Company had cash and cash equivalents and restricted cash of
RMB981.0 million (US$134.5 million), compared with
RMB1,064.0 million as of June 30, 2023 and RMB1,005.7 million as of September 30, 2022. We generated positive cash
flow from our operating activities for the fifth consecutive
quarter. We also successfully reduced our total debt, including
short-term and long-term bank borrowing balance, by RMB117.3 million in the third quarter, and
we anticipate further reductions in our debt level in the upcoming
quarters.
The Company continued to manage its working capital and
inventory efficiently and recorded inventory levels of RMB787.0 million as of September 30, 2023, compared to RMB742.6 million as of June 30, 2023 and RMB1,375.1 million as of September 30, 2022.
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. Pursuant to the
extended share repurchase program, the Company may repurchase its
shares in the form of American depositary shares and/or ordinary
shares through November 2024 with an
aggregate value equal to the remaining balance under the share
repurchase program. As of September 30, 2023, the Company had
used US$12.3 million to repurchase
4,645,732 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 2023, the Company's management
currently expects net revenues to be between RMB600 million and RMB850
million, compared with RMB1.07
billion in the fourth quarter of 2022.
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
7:30 a.m. Eastern Time on Monday,
November 20, 2023 (8:30 p.m. Beijing
Time on November 20, 2023) to discuss
financial results and answer questions from investors and analysts.
Listeners may access the call by dialling:
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 https://ir.zepp.com/investor.
A telephone replay will be available one hour after the call
until November 27, 2023 by
dialing:
US Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay
Passcode:
|
3369346
|
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 North America, Europe,
Middle East, Africa and Asia
Pacific 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
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) 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) 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) 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) 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.
Exchange Rate
The Company's business is primarily conducted in China. This announcement contains currency
conversions of RMB amounts into US$ solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
US$ are made at a rate of RMB 7.2960
to US$1.00, the effective noon buying
rate on September 29, 2023 as set
forth in the H.10 statistical release of the Federal Reserve Board.
No representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
September 29, 2023, or at any other
rate.
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 Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
886,632
|
|
923,220
|
|
126,538
|
Restricted
cash
|
|
86,708
|
|
57,794
|
|
7,921
|
Term deposit
|
|
-
|
|
5,000
|
|
685
|
Accounts receivable,
net
|
|
682,103
|
|
431,394
|
|
59,127
|
Amounts due from
related parties
|
|
138,614
|
|
147,536
|
|
20,221
|
Inventories,
net
|
|
1,021,923
|
|
786,962
|
|
107,862
|
Short-term
investments
|
|
34,316
|
|
24,629
|
|
3,376
|
Prepaid expenses and
other current assets
|
|
108,252
|
|
127,787
|
|
17,514
|
Total current
assets
|
|
2,958,548
|
|
2,504,322
|
|
343,244
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
100,605
|
|
69,466
|
|
9,521
|
Intangible asset,
net
|
|
123,300
|
|
104,862
|
|
14,373
|
Goodwill
|
|
66,081
|
|
69,902
|
|
9,581
|
Long-term
investments
|
|
1,686,628
|
|
1,696,275
|
|
232,494
|
Deferred tax
assets
|
|
210,186
|
|
265,553
|
|
36,397
|
Amount due from a
related party, non-current
|
|
6,333
|
|
6,832
|
|
936
|
Other non-current
assets
|
|
50,389
|
|
73,670
|
|
10,097
|
Operating lease
right-of-use assets
|
|
65,573
|
|
42,164
|
|
5,779
|
Total
assets
|
|
5,267,643
|
|
4,833,046
|
|
662,422
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
456,585
|
|
440,887
|
|
60,429
|
Advance from
customers
|
|
2,133
|
|
1,841
|
|
252
|
Amount due to related
parties
|
|
40,978
|
|
38,890
|
|
5,330
|
Accrued expenses and
other current liabilities
|
|
197,819
|
|
152,566
|
|
20,911
|
Income tax
payables
|
|
2,715
|
|
22,052
|
|
3,022
|
Notes
payable
|
|
456,438
|
|
479,370
|
|
65,703
|
Short-term bank
borrowings
|
|
512,000
|
|
87,000
|
|
11,924
|
Total current
liabilities
|
|
1,668,668
|
|
1,222,606
|
|
167,571
|
Deferred tax
liabilities
|
|
35,552
|
|
33,664
|
|
4,614
|
Long-term
borrowings
|
|
684,210
|
|
861,412
|
|
118,066
|
Other non-current
liabilities
|
|
162,602
|
|
164,422
|
|
22,536
|
Non-current operating
lease liabilities
|
|
31,690
|
|
15,090
|
|
2,068
|
Total
liabilities
|
|
2,582,722
|
|
2,297,194
|
|
314,855
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
162
|
|
164
|
|
22
|
Additional paid-in
capital
|
|
1,690,879
|
|
1,738,542
|
|
238,287
|
Treasury
stock
|
|
(67,163)
|
|
(81,408)
|
|
(11,158)
|
Accumulated retained
earnings
|
|
942,848
|
|
739,162
|
|
101,311
|
Accumulated other
comprehensive income
|
|
105,796
|
|
127,565
|
|
17,484
|
Total Zepp Health
Corporation shareholders' equity
|
|
2,672,522
|
|
2,524,025
|
|
345,946
|
Noncontrolling
interests
|
|
12,399
|
|
11,827
|
|
1,621
|
Total
equity
|
|
2,684,921
|
|
2,535,852
|
|
347,567
|
Total liabilities
and equity
|
|
5,267,643
|
|
4,833,046
|
|
662,422
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
1,205,793
|
|
602,099
|
|
82,525
|
Cost of
revenues
|
|
(975,106)
|
|
(398,023)
|
|
(54,554)
|
Gross
profit
|
|
230,687
|
|
204,076
|
|
27,971
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
(123,850)
|
|
(70,565)
|
|
(9,672)
|
General and
administrative
|
|
(52,715)
|
|
(48,027)
|
|
(6,583)
|
Research and
development
|
|
(127,382)
|
|
(74,643)
|
|
(10,231)
|
Total operating
expenses
|
|
(303,947)
|
|
(193,235)
|
|
(26,486)
|
Operating
(loss)/income
|
|
(73,260)
|
|
10,841
|
|
1,485
|
Other income and
expenses:
|
|
|
|
|
|
|
Interest
income
|
|
3,268
|
|
5,879
|
|
806
|
Interest
expense
|
|
(15,098)
|
|
(11,677)
|
|
(1,600)
|
Other income/(expense),
net
|
|
38,269
|
|
(1,729)
|
|
(237)
|
Loss
from fair value change of long-term
investment
|
|
(7,411)
|
|
(552)
|
|
(76)
|
Investment
income
|
|
-
|
|
862
|
|
118
|
(Loss)/income before
income tax and income from equity method
investment
|
|
(54,232)
|
|
3,624
|
|
496
|
Income tax
benefits/(expense)
|
|
33,606
|
|
(475)
|
|
(65)
|
(Loss)/income before
income from equity method investments
|
|
(20,626)
|
|
3,149
|
|
431
|
Net income/(loss) from
equity method investments
|
|
3,409
|
|
(367)
|
|
(50)
|
Net
(loss)/income
|
|
(17,217)
|
|
2,782
|
|
381
|
Less: Net loss
attributable to noncontrolling interest
|
|
(127)
|
|
(193)
|
|
(26)
|
Net (loss)/income
attributable to Zepp Health Corporation
|
|
(17,090)
|
|
2,975
|
|
407
|
Net (loss)/income
per share attributable to Zepp Health
Corporation
|
|
|
|
|
|
|
Basic (loss)/income per
ordinary share
|
|
(0.07)
|
|
0.01
|
|
-
|
Diluted (loss)/income
per ordinary share
|
|
(0.07)
|
|
0.01
|
|
-
|
|
|
|
|
|
|
|
Net
(loss)/income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS – basic
|
|
(0.28)
|
|
0.05
|
|
0.01
|
ADS –
diluted
|
|
(0.28)
|
|
0.05
|
|
0.01
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net loss per
share
Ordinary share –
basic
|
|
245,116,812
|
|
243,154,138
|
|
243,154,138
|
Ordinary share –
diluted
|
|
245,116,812
|
|
256,149,311
|
|
256,149,311
|
Zepp Health
Corporation
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
(303,947)
|
|
(193,235)
|
|
(26,486)
|
Share-based
compensation expenses2
|
|
8,246
|
|
12,975
|
|
1,778
|
Total adjusted
operating expenses
|
|
(295,701)
|
|
(180,260)
|
|
(24,708)
|
|
|
|
|
|
|
|
Operating
(loss)/income
|
|
(73,260)
|
|
10,841
|
|
1,485
|
Share-based
compensation expenses
|
|
8,246
|
|
12,975
|
|
1,778
|
Adjusted operating
(loss)/income
|
|
(65,014)
|
|
23,816
|
|
3,263
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to Zepp Health
Corporation
|
|
(17,090)
|
|
2,975
|
|
407
|
Share-based
compensation expenses
|
|
8,246
|
|
12,975
|
|
1,778
|
Adjusted net
(loss)/income attributable to Zepp Health
Corporation2
|
|
(8,844)
|
|
15,950
|
|
2,185
|
|
Adjusted net
(loss)/income per share attributable to
Zepp Health Corporation
|
|
|
|
|
|
|
Adjusted basic
(loss)/income per ordinary share
|
|
(0.04)
|
|
0.07
|
|
0.01
|
Adjusted diluted
(loss)/income per ordinary share
|
|
(0.04)
|
|
0.06
|
|
0.01
|
|
|
|
|
|
|
|
Adjusted net
(loss)/income per ADS (4 ordinary
shares equal to 1 ADS)
|
|
|
|
|
|
|
ADS – basic
|
|
(0.14)
|
|
0.26
|
|
0.04
|
ADS –
diluted
|
|
(0.14)
|
|
0.25
|
|
0.03
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing adjusted net loss per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
245,116,812
|
|
243,154,138
|
|
243,154,138
|
Ordinary share –
diluted
|
|
245,116,812
|
|
256,149,311
|
|
256,149,311
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Selling and
marketing
|
|
879
|
|
1,228
|
|
168
|
General and
administrative
|
|
2,172
|
|
5,784
|
|
793
|
Research and
development
|
|
5,195
|
|
5,963
|
|
817
|
Total
|
|
8,246
|
|
12,975
|
|
1,778
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the Nine Months
Ended September 30,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
3,071,131
|
|
1,895,625
|
|
259,817
|
Cost of
revenues
|
|
(2,489,861)
|
|
(1,446,162)
|
|
(198,213)
|
Gross
profit
|
|
581,270
|
|
449,463
|
|
61,604
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
(335,210)
|
|
(228,093)
|
|
(31,263)
|
General and
administrative
|
|
(182,570)
|
|
(152,000)
|
|
(20,833)
|
Research and
development
|
|
(402,781)
|
|
(281,810)
|
|
(38,625)
|
Total operating
expenses
|
|
(920,561)
|
|
(661,903)
|
|
(90,721)
|
Operating
loss
|
|
(339,291)
|
|
(212,440)
|
|
(29,117)
|
Other income and
expenses:
|
|
|
|
|
|
|
Interest
income
|
|
7,963
|
|
15,958
|
|
2,187
|
Interest
expense
|
|
(40,891)
|
|
(37,312)
|
|
(5,114)
|
Other income/(expense),
net
|
|
44,334
|
|
(4,497)
|
|
(616)
|
Gain
from fair value change of long-term
investment
|
|
32,889
|
|
6,367
|
|
873
|
Investment
income
|
|
-
|
|
1,096
|
|
150
|
Loss before income
tax and income from equity method investment
|
|
(294,996)
|
|
(230,828)
|
|
(31,637)
|
Income tax
benefits
|
|
63,371
|
|
35,871
|
|
4,917
|
Loss before income
from equity method investments
|
|
(231,625)
|
|
(194,957)
|
|
(26,720)
|
Net income/(loss) from
equity method investments
|
|
18,367
|
|
(9,301)
|
|
(1,275)
|
Net
loss
|
|
(213,258)
|
|
(204,258)
|
|
(27,995)
|
Less: Net loss
attributable to noncontrolling interest
|
|
(498)
|
|
(572)
|
|
(78)
|
Net loss
attributable to Zepp Health Corporation
|
|
(212,760)
|
|
(203,686)
|
|
(27,917)
|
Net loss per share
attributable to Zepp Health Corporation
|
|
|
|
|
|
|
Basic loss per ordinary
share
|
|
(0.86)
|
|
(0.84)
|
|
(0.12)
|
Diluted loss per
ordinary share
|
|
(0.86)
|
|
(0.84)
|
|
(0.12)
|
|
|
|
|
|
|
|
Net loss per
ADS (4 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
ADS – basic
|
|
(3.45)
|
|
(3.34)
|
|
(0.46)
|
ADS –
diluted
|
|
(3.45)
|
|
(3.34)
|
|
(0.46)
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net loss per
share
Ordinary share –
basic
|
|
246,762,346
|
|
243,679,883
|
|
243,679,883
|
Ordinary share –
diluted
|
|
246,762,346
|
|
243,679,883
|
|
243,679,883
|
Zepp Health
Corporation
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the Nine Months
Ended September 30,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
(920,561)
|
|
(661,903)
|
|
(90,721)
|
Share-based
compensation expenses2
|
|
33,891
|
|
47,659
|
|
6,532
|
Total adjusted
operating expenses
|
|
(886,670)
|
|
(614,244)
|
|
(84,189)
|
|
|
|
|
|
|
|
Operating
loss
|
|
(339,291)
|
|
(212,440)
|
|
(29,117)
|
Share-based
compensation expenses
|
|
33,891
|
|
47,659
|
|
6,532
|
Adjusted operating
loss
|
|
(305,400)
|
|
(164,781)
|
|
(22,585)
|
|
|
|
|
|
|
|
Net loss
attributable to Zepp Health Corporation
|
|
(212,760)
|
|
(203,686)
|
|
(27,917)
|
Share-based
compensation expenses
|
|
33,891
|
|
47,659
|
|
6,532
|
Adjusted net loss
attributable to Zepp Health
Corporation2
|
|
(178,869)
|
|
(156,027)
|
|
(21,385)
|
|
Adjusted net loss
per share attributable to
Zepp Health Corporation
|
|
|
|
|
|
|
Adjusted basic loss per
ordinary share
|
|
(0.72)
|
|
(0.64)
|
|
(0.09)
|
Adjusted diluted loss
per ordinary share
|
|
(0.72)
|
|
(0.64)
|
|
(0.09)
|
|
|
|
|
|
|
|
Adjusted net
loss per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS – basic
|
|
(2.90)
|
|
(2.56)
|
|
(0.35)
|
ADS –
diluted
|
|
(2.90)
|
|
(2.56)
|
|
(0.35)
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing adjusted net loss per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
246,762,346
|
|
243,679,883
|
|
243,679,883
|
Ordinary share –
diluted
|
|
246,762,346
|
|
243,679,883
|
|
243,679,883
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Selling and
marketing
|
|
3,093
|
|
3,274
|
|
449
|
General and
administrative
|
|
14,044
|
|
21,728
|
|
2,978
|
Research and
development
|
|
16,754
|
|
22,657
|
|
3,105
|
Total
|
|
33,891
|
|
47,659
|
|
6,532
|
View original
content:https://www.prnewswire.com/news-releases/zepp-health-corporation-reports-third-quarter-2023-unaudited-financial-results-301993331.html
SOURCE Zepp Health Corp.