BEIJING, March 17, 2022 /PRNewswire/ -- Zepp Health
Corporation ("Zepp" or the "Company") (NYSE: ZEPP) today reported
revenue of RMB1.7 billion
(US$260.7 million); GAAP diluted net
income per share of RMB0.14
(US$0.02); and GAAP diluted net
income per ADS of RMB0.55
(US$0.09) for the fourth quarter
ended December 31, 2021. Each ADS
represents four Class A ordinary shares.
"In 2021, we advanced our Amazfit and Zepp brands, elevated our
technology, further enriched our product portfolio, and closed the
year with revenues in line with our revised fourth quarter
guidance," said Wang Huang, Chairman
and CEO of Zepp Health. "Despite the challenges posed by the global
macro-environment, shipment volume of our Amazfit and Zepp-branded
products grew in the fourth quarter, increasing 14.3%
year-over-year thanks to their expanding worldwide appeal. In the
year of 2021, our self-branded product shipments increased 60% year-over-year. This growth
reflects our increasing global appeal. Our strong international
expansion momentum continued, for example, in the North America our shipment grew over 200% in 2021. In the meantime, our
relationship with Xiaomi stays strong. We are proactively in
discussion with Xiaomi on development of new products. We will
continue our Share Repurchase Program. In addition, we
are pleased to announce a special cash dividend of US$0.025 per ordinary share
or US$0.1 per ADS to thank our shareholders for their
continued support. We are confident that we will strive to
execute our strategy and maximize
our shareholders' value in the long-term. "
Zepp CFO Leon Deng stated,
"Shadowed by the far-reaching effects of COVID-19 and a global
shortage in semiconductors, our fourth quarter top line came
to RMB1,661.6 million. Despite the
headwinds, our full year revenue reached RMB6.25 billion, and our self-branded products
contributed 46.5% of the revenue and over half of the gross profit.
Effective cost control measures helped to decrease our operating
expenses in the fourth quarter by 0.1%, which also contributed to
net income. With a strong cash balance of RMB1,468.5 million as of December 31, 2021 and continuous focus on cost
and working capital management, we are well positioned to capture
the demand rebound once the world moves beyond COVID-19."
Fourth Quarter and Full Year 2021 Financial
Summary
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Full Year
Ended
|
GAAP in millions,
except for percentages
and per share/ADS amounts
|
|
Dec.
31,
2021
|
Dec.
31,
2020[1]
|
|
Dec.
31,
2021
|
Dec.
31,
20201
|
Revenue
RMB
|
|
1,661.6
|
1,972.5
|
|
6,250.1
|
6,433.4
|
Revenue
US$
|
|
260.7
|
302.3
|
|
980.8
|
986.0
|
Gross
Margin
|
|
19.3%
|
19.0%
|
|
20.9%
|
20.7%
|
Net income
attributable to Zepp Health
Corporation RMB
|
|
36.3
|
115.2
|
|
137.8
|
228.8
|
Adjusted net income
attributable to Zepp
Health Corporation RMB[2]
|
|
52.0
|
128.4
|
|
220.9
|
293.9
|
Diluted net income
per share RMB
|
|
0.14
|
0.44
|
|
0.52
|
0.88
|
Diluted net income
per ADS US$
|
|
0.09
|
0.27
|
|
0.33
|
0.54
|
Adjusted diluted net
income per share
RMB[3]
|
|
0.20
|
0.49
|
|
0.84
|
1.13
|
Adjusted diluted net
income per ADS US$
|
|
0.12
|
0.30
|
|
0.52
|
0.69
|
Units
Shipped
|
|
8.3
|
13.3
|
|
36.1
|
45.7
|
[1] The US$ numbers in 2020 are
referenced with the prior 6-K disclosures, which translations from
RMB to US$ are made at a rate of RMB6.5250 to US$1.00, the
effective noon buying rate for December 31, 2020 as set forth in
the H.10 statistical release of the Federal Reserve
Board.
|
[2]
Adjusted net income attributable to Zepp Health Corporation is a
non-GAAP measure, which excludes share-based compensation expenses.
See "Reconciliation of GAAP and Non-GAAP Results" at the end of
this press release.
|
[3] Adjusted diluted net income is
the abbreviation of adjusted net income 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 income per ADS attributable to Zepp Health
Corporation.
|
Fourth Quarter 2021 Financial Results
Revenue
Revenues for the fourth quarter of 2021 reached RMB1.66 billion (US$260.7
million), a decrease of 15.8% from the fourth quarter of
2020. The decrease was mostly driven by the decrease in Mi band
shipments. Our self brand product sales is impacted by COVID-19 and
shortage of semiconductors causing production to fall short of
market demand during the holiday season.
Total units shipped in the fourth quarter of 2021 was 8.3
million, compared with 13.3 million for the fourth quarter of 2020.
This was driven by a 14.3% increase in unit shipments of Amazfit
and Zepp branded products, offset by a 47.3% decrease in unit
shipments of Xiaomi wearable products.
Impact of COVID-19 and Russia-Ukraine Conflict on Our Business
The global impact of the COVID-19 pandemic continued in the
fourth quarter of 2021, and affected the retail store sales and
brought challenges to the supply chain globally. The market is
experiencing shortages of electronic components and chips for
different industries and accordingly affecting the supply and
production cycle for the Company. The continued pandemic may cause
the logistic time to be longer for our products arriving at target
places. The Company cannot predict the potential, if any, of future
negative impacts on market conditions or the Company's
operations.
The current situation between Russia and the Ukraine may affect the demand for and sales of
Xiaomi wearable products and our self-branded products in the
affected regions. Revenue from sales of products in Russia and Ukraine accounted for approximately 4% of our
total revenues in 2021. Currently the
situation does not have material adverse impact on the
Company.
Gross Margin
Gross margin in the fourth quarter of 2021 was 19.3%,
compared with 19.0% for the same period of 2020. Gross margin and
gross profit were affected by the change in product mix.
Research and Development
Research and development expense in the fourth quarter of 2021
was RMB93.8 million, decreasing 27.6%
year-over-year, and comprising 5.6% of revenue, versus 6.6% for the
same period last year. This reflects effective expense control in
the Company's R&D activities as well as the recognition of
certain government subsidies.
Selling and Marketing
Selling and marketing expense in the fourth quarter of 2021
was RMB152.1 million, increasing
30.2% year-over-year, and comprising 9.2% of revenue, compared with
5.9% of revenue for the same period in 2020. The increase was due
to the launch of the new product GT3 series and other promotions
during the holiday seasons.
General and Administrative
General and administrative expense was RMB64.7 million in the fourth quarter of 2021,
and remained stable in the same period in 2020, and comprising 3.9%
of revenue, compared with 3.3% in the same period in 2020. It was
largely attributable to the effective control of operating
activities, offset by the negative
foreign exchange fluctuation.
Operating Expenses
Total operating expenses for the fourth quarter of 2021 were
RMB310.6 million, a decrease of 0.1% year-over-year, which accounted
for 18.7% of revenue for the period, as compared with 15.8%
in the fourth quarter of 2020.
Operating Income
Operating income for the fourth quarter of 2021 was RMB10.1 million, a decrease of 84.2% from
RMB63.7 million for the same
period in 2020. The Operating income of the fourth quarter of 2021
represents 0.6% of the total sales income, compared to 3.2% of the
same period in 2020. The decrease in the
ratio was as a result of an increase of 2.9% in the operating
expenses as a percentage of revenue.
Net income attributable to Zepp Health
Corporation for the fourth quarter of 2021 was
RMB36.3 million, compared with
RMB115.2 million in the fourth
quarter of 2020. The Company recognized a
one-off RMB56.5 million (US8.7
million) gain from deconsolidation of a smart toothbrush company in
2020.
Liquidity and Capital Resources
As of December 31, 2021, the
Company had cash and cash equivalents of RMB1,468.5 million (US$230.4 million), compared with RMB2,273.3 million as of December 31, 2020, and RMB1,229.3 million as of September 30, 2021.
The liquidity improvement in the fourth quarter as compared to
the third quarter was mainly
attributable to the lower inventory levels and better working
capital management.
Share Repurchase Program Update
Management announced the authorization of up to US$20 million to repurchase shares in the 2021
third quarter earnings, and the repurchased share will in part to
be used to fund the Company's employee stock plan. As of
December 31, 2021, the Company has
used US$3.4 million to repurchase
664,041 American Depositary Shares ("ADS"). As of today, the
Company has bought back approximately US$6
million of stock. The Company intends to continue the
repurchase program.
Dividend
The Company today announced that its Board of Directors has
approved a special cash dividend of US$0.025 per ordinary share (US$0.1 per ADS) on its outstanding shares to
shareholders of record as of the close of trading on March 28, 2022, ex-dividend date will be
March 25. Holders of ADS, each
representing four ordinary shares of the Company, are accordingly
entitled to a cash dividend of US$0.1
per ADS. Deutsche Bank Trust Company Americas, the depositary bank
for the Company's ADS program, expects to pay out dividends to ADS
holders on or about April 15,
2022.
Full Year 2021
Revenue
Total revenue of 2021 was RMB6.25
billion, decreasing 2.8% from the full year 2020. However,
our revenue grew slightly 1% (Non-GAAP) over 2020 if we adopt the
same reference to exchange rate of 6.5250
RMB to the US dollar as the previous year, and exclude the
impact on revenue in prior year from the deconsolidation of a smart
toothbrush company. The exchange rate effect to revenue was
RMB147.8 million and the impact on
revenue in prior year was RMB96.2
million as we deconsolidated
such smart toothbrush company upon sale of its equity interests in
2021.
Total units shipped in the full year 2021 was 36.1 million,
compared with 45.7 million in the full year of 2020.
The number of units shipped of our
self-branded products grew by 59.6%, offset by 30.5% decrease in
Xiaomi wearable products.
Gross Margin
Gross margin in the full year 2021 was 20.9%, compared with
20.7% in the full year 2020. Higher gross margin is largely due to
improvement in product mix.
Research and Development
Full year 2021 R&D expense was RMB515.1 million,
decreasing 4.3% from the full year 2020, and comprised 8.2% of
revenue, compared to 8.4% of revenue in the full year 2020,
reflected by the optimization of the integrated product development
process and recognition of certain government subsidies. The decrease was offset by an increase of share-based
compensation expenses.
Selling and Marketing
Selling and marketing expense for the full year 2021
was RMB438.3 million, increased 22.2% from the full year 2020,
and comprised 7.0% of revenue, compared to 5.6% of revenue in the
full year 2020. The increase was driven by our "up your game"
Amazfit and Zepp brands' global marketing expansion, products
promotion campaigns, and recruitment of overseas
employees. The Company also launched the GT3 series, one of
the most popular product lines, in the last quarter of this
year.
General and Administrative
General and administrative expense was RMB258.3
million for the full year 2021, decreasing 1.3% from the full
year 2020, and comprised 4.1% of revenue, the ratio remained stable
in the full year 2020. The decrease was primarily attributable to expense
control in operating activities.
Operating Expense
Operating expenses for the full-year 2021 increase 4.6% over
2020. The Company implemented expense controls throughout the
year. At the same time, the Company also hopes to align its
employees to work toward the long-term business goal and granted
share-based compensation in this year and still put more efforts on
brand recognition and marketing channel expansion, causing the
expenses growth.
Net income attributable to Zepp Health
Corporation for the full year of 2021 was RMB137.8 million, compared with RMB228.8 million for the full year of 2020.
The Company recognized a one-off
RMB56.5 million (US8.7 million) gain
from deconsolidation of a smart toothbrush company in
2020.
Outlook
For the first quarter of 2022, the management of the
Company currently expects:
- Net revenues to be between RMB0.75
billion and RMB1.0 billion,
compared with RMB1.15 billion in the
first quarter of 2021.
This outlook reflects continued uncertainty pertaining to the
potential effects of the COVID-19 pandemic on sales and on
electronic component delays, as well as the expected sales
seasonality of both self-branded and Xiaomi products. It is based
on the current market conditions and reflects the Company
management's current and preliminary estimates of market and
operating conditions and customer demand, which are all subject to
change.
Conference Call
The Company's management will hold a conference call at
8:00 a.m. Eastern Time on Thursday,
March 17, 2022 (8:00 p.m. Beijing
Time on March 17, 2022) to discuss
financial results and answer questions from investors and analysts.
Listeners may access the call by dialing:
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 March 24, 2022 by dialing:
US Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay
Passcode:
|
4255080
|
About Zepp Health Corporation (NYSE: ZEPP)
Zepp Health changed its name from Huami Corp. (HMI)
on February 25, 2021 to emphasize its health focus with a
name that resonates across languages and cultures globally. The
Company's mission continues to be connecting health with
technology. Since its inception in 2013, Zepp Health has developed
a platform of proprietary technology including AI chips, biometric
sensors, and data algorithms, which drive a broadening line of
smart health devices for consumers, and data analytics services for
population health. Zepp Health is one of the largest global
developers of smart wearable health and consumer fitness devices,
shipping 36 million units in 2021. Zepp Health Corp. is based
in Hefei, China, with U.S.
operations, Zepp Health USA, based in Cupertino,
California.
Use of Non-GAAP Measures
We use adjusted net income, a non-GAAP financial measure, in
evaluating our operating results and for financial and operational
decision-making purposes. Adjusted net income represents net income
excluding share-based compensation expenses, and such adjustment
has no impact on income tax. Adjusted net income 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 per share and per ADS attributable to Zepp
Health Corporation.
We believe that adjusted net income and adjusted net income
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 and net
income attributable to Zepp Health Corporation. We believe that
adjusted net income and adjusted net income 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 and adjusted net income attributable to Zepp
Health Corporation, should not be considered in isolation or
construed as an alternative to net income, basic and diluted net
income 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 and adjusted net
income 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 and the significant majority of revenues
generated are denominated in RMB. 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 RMB6.3726 to US$1.00, the effective noon buying rate for
December 30, 2021 as set forth in the
H.10 statistical release of the Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
December 30, 2021, 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
The Piacente Group, Inc.
Yang Song
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$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,273,349
|
|
1,468,499
|
|
230,440
|
Restricted
cash
|
|
2,401
|
|
41,040
|
|
6,440
|
Term
deposit
|
|
5,000
|
|
5,000
|
|
785
|
Accounts
receivable
|
|
298,038
|
|
537,084
|
|
84,280
|
Amounts due from
related parties
|
|
860,213
|
|
295,614
|
|
46,388
|
Inventories,
net
|
|
1,217,537
|
|
1,249,327
|
|
196,047
|
Short-term
investments
|
|
18,430
|
|
19,351
|
|
3,037
|
Prepaid expenses and
other current assets
|
|
152,898
|
|
315,038
|
|
49,436
|
Total current
assets
|
|
4,827,866
|
|
3,930,953
|
|
616,853
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
124,619
|
|
133,873
|
|
21,008
|
Intangible asset,
net
|
|
145,213
|
|
135,582
|
|
21,276
|
Goodwill
|
|
62,515
|
|
61,055
|
|
9,581
|
Long-term
investments
|
|
443,986
|
|
1,552,591
|
|
243,635
|
Deferred tax
assets
|
|
120,190
|
|
143,419
|
|
22,506
|
Other non-current
assets
|
|
28,165
|
|
19,593
|
|
3,075
|
Operating lease
right-of-use assets
|
|
151,165
|
|
108,435
|
|
17,016
|
Total
assets
|
|
5,903,719
|
|
6,085,501
|
|
954,950
|
Zepp Health
Corporation
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
1,951,335
|
|
1,317,306
|
|
206,714
|
Advance from
customers
|
|
42,502
|
|
4,230
|
|
664
|
Amount due to related
parties
|
|
11,185
|
|
50,123
|
|
7,865
|
Accrued expenses and
other current liabilities
|
|
252,275
|
|
316,083
|
|
49,600
|
Income tax
payables
|
|
27,706
|
|
2,595
|
|
407
|
Notes
payable
|
|
-
|
|
103,795
|
|
16,288
|
Short-term bank
borrowings
|
|
504,671
|
|
358,000
|
|
56,178
|
Total current
liabilities
|
|
2,789,674
|
|
2,152,132
|
|
337,716
|
Deferred tax
liabilities
|
|
22,374
|
|
26,909
|
|
4,223
|
Long-term
borrowings
|
|
60,000
|
|
726,851
|
|
114,059
|
Other non-current
liabilities
|
|
185,168
|
|
175,053
|
|
27,470
|
Operating lease
liabilities
|
|
116,245
|
|
71,117
|
|
11,160
|
Total
liabilities
|
|
3,173,461
|
|
3,152,062
|
|
494,628
|
Zepp Health
Corporation
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
157
|
|
159
|
|
25
|
Additional paid-in
capital
|
|
1,552,109
|
|
1,641,544
|
|
257,594
|
Treasury
stock
|
|
-
|
|
(21,798)
|
|
(3,421)
|
Accumulated retained
earnings
|
|
1,133,368
|
|
1,271,171
|
|
199,474
|
Accumulated other
comprehensive income
|
|
44,624
|
|
29,271
|
|
4,596
|
Total Zepp Health
Corporation shareholders' equity
|
|
2,730,258
|
|
2,920,347
|
|
458,268
|
Noncontrolling
interests
|
|
-
|
|
13,092
|
|
2,054
|
Total
equity
|
|
2,730,258
|
|
2,933,439
|
|
460,322
|
Total liabilities
and equity
|
|
5,903,719
|
|
6,085,501
|
|
954,950
|
|
|
|
|
|
|
|
|
Zepp Health
Corporation
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
1,972,535
|
|
1,661,648
|
|
260,749
|
Cost of
revenues
|
|
(1,597,889)
|
|
(1,340,996)
|
|
(210,432)
|
Gross
profit
|
|
374,646
|
|
320,652
|
|
50,317
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
(116,853)
|
|
(152,097)
|
|
(23,867)
|
General and
administrative
|
|
(64,512)
|
|
(64,705)
|
|
(10,154)
|
Research and
development
|
|
(129,575)
|
|
(93,784)
|
|
(14,717)
|
Total operating
expenses
|
|
310,940
|
|
310,586
|
|
48,738
|
Operating
income
|
|
63,706
|
|
10,066
|
|
1,579
|
|
|
|
|
|
|
|
Other income and
expenses:
|
|
|
|
|
|
|
Interest
income
|
|
14,450
|
|
2,860
|
|
449
|
Interest
expense
|
|
(6,311)
|
|
(14,404)
|
|
(2,260)
|
Other
(expense)/income, net
|
|
(3,469)
|
|
23,391
|
|
3,671
|
Gain from fair value
change of long-term investment
|
|
7,728
|
|
-
|
|
-
|
Gain from
deconsolidation of a subsidiary
|
|
56,522
|
|
-
|
|
-
|
Income before
income tax and income from equity method
investment
|
|
132,626
|
|
21,913
|
|
3,439
|
Income tax
expenses
|
|
(18,198)
|
|
(507)
|
|
(80)
|
Income before loss
from equity method investments
|
|
114,428
|
|
21,406
|
|
3,359
|
Net income from
equity method investments
|
|
722
|
|
14,739
|
|
2,313
|
Net
income
|
|
115,150
|
|
36,145
|
|
5,672
|
Less: Net loss
attributable to noncontrolling interest
|
|
(54)
|
|
(170)
|
|
(27)
|
Net income
attributable to Zepp Health Corporation
|
|
115,204
|
|
36,315
|
|
5,699
|
Net income per
share attributable to Zepp Health Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.46
|
|
0.14
|
|
0.02
|
Diluted income per
ordinary share
|
|
0.44
|
|
0.14
|
|
0.02
|
|
|
|
|
|
|
|
Net incomeper
ADS (4 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
1.85
|
|
0.57
|
|
0.09
|
ADS –
diluted
|
|
1.76
|
|
0.55
|
|
0.09
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net income
per share
|
|
249,632,609
|
|
253,533,066
|
|
253,533,066
|
Ordinary share –
basic
|
|
|
|
|
|
|
Ordinary share –
diluted
|
|
261,623,610
|
|
264,350,385
|
|
264,350,385
|
Zepp Health
Corporation
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
For the Three
Months Ended December 31
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to Zepp Health Corporation
|
|
115,204
|
|
36,315
|
|
5,699
|
Share-based
compensation expenses
|
|
13,218
|
|
15,691
|
|
2,462
|
Adjusted net
income attributable to Zepp
Health
Corporation [2]
|
|
128,422
|
|
52,006
|
|
8,161
|
|
Adjusted net
income per share attributable to
Zepp Health Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
0.51
|
|
0.21
|
|
0.03
|
Adjusted diluted
income per ordinary share
|
|
0.49
|
|
0.20
|
|
0.03
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
2.06
|
|
0.82
|
|
0.13
|
ADS –
diluted
|
|
1.96
|
|
0.79
|
|
0.12
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing adjusted net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
249,632,609
|
|
253,533,066
|
|
253,533,066
|
Ordinary share –
diluted
|
|
261,623,610
|
|
264,350,385
|
|
264,350,385
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Selling and
marketing
|
|
805
|
|
887
|
|
139
|
General and
administrative
|
|
9,642
|
|
8,990
|
|
1,411
|
Research and
development
|
|
2,771
|
|
5,814
|
|
912
|
Total
|
|
13,218
|
|
15,691
|
|
2,462
|
Zepp Health
Corporation
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
6,433,363
|
|
6,250,109
|
|
980,778
|
Cost of
revenues
|
|
(5,100,698)
|
|
(4,944,467)
|
|
(775,895)
|
Gross
profit
|
|
1,332,665
|
|
1,305,642
|
|
204,883
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
(358,655)
|
|
(438,273)
|
|
(68,775)
|
General and
administrative
|
|
(261,805)
|
|
(258,346)
|
|
(40,540)
|
Research and
development
|
|
(538,009)
|
|
(515,081)
|
|
(80,827)
|
Total operating
expenses
|
|
1,158,469
|
|
1,211,700
|
|
190,142
|
Operating
income
|
|
174,196
|
|
93,942
|
|
14,741
|
Other income and
expenses:
|
|
|
|
|
|
|
Gain from
deconsolidation of a subsidiary
|
|
56,522
|
|
-
|
|
-
|
Interest
income
|
|
46,118
|
|
16,686
|
|
2,618
|
Interest
expense
|
|
(22,623)
|
|
(44,884)
|
|
(7,043)
|
Other
(expense)/income, net
|
|
(929)
|
|
40,925
|
|
6,422
|
Gain from fair value
change of long-term investments
|
|
12,325
|
|
-
|
|
-
|
Income before
income tax and income from equity method
investment
|
|
265,609
|
|
106,669
|
|
16,738
|
Income tax
expenses
|
|
(31,154)
|
|
(10,745)
|
|
(1,686)
|
Income before loss
from equity method investments
|
|
234,455
|
|
95,924
|
|
15,052
|
Net (loss)/income
from equity method investments
|
|
(4,749)
|
|
41,028
|
|
6,438
|
Net
income
|
|
229,706
|
|
136,952
|
|
21,490
|
Less: Net
income/(loss) attributable to noncontrolling interest
|
|
953
|
|
(851)
|
|
(134)
|
Net income
attributable to Zepp Health Corporation
|
|
228,753
|
|
137,803
|
|
21,624
|
Net income per
share attributable to Zepp Health Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.92
|
|
0.55
|
|
0.09
|
Diluted income per
ordinary share
|
|
0.88
|
|
0.52
|
|
0.08
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
3.68
|
|
2.19
|
|
0.34
|
ADS –
diluted
|
|
3.51
|
|
2.09
|
|
0.33
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net
income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
248,470,684
|
|
252,167,610
|
|
252,167,610
|
Ordinary share –
diluted
|
|
260,351,994
|
|
264,368,629
|
|
264,368,629
|
Zepp Health
Corporation
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to Zepp Health Corporation
|
|
228,753
|
|
137,803
|
|
21,624
|
Share-based
compensation expenses
|
|
65,154
|
|
83,122
|
|
13,043
|
Adjusted net
income attributable to Zepp Health
Corporation[2]
|
|
293,907
|
|
220,925
|
|
34,667
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
Zepp Health Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
1.18
|
|
0.88
|
|
0.14
|
Adjusted diluted
income per ordinary share
|
|
1.13
|
|
0.84
|
|
0.13
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
4.73
|
|
3.50
|
|
0.55
|
ADS –
diluted
|
|
4.52
|
|
3.34
|
|
0.52
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing adjusted net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
248,470,684
|
|
252,167,610
|
|
252,167,610
|
Ordinary share –
diluted
|
|
260,351,994
|
|
264,368,629
|
|
264,368,629
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
(54)
|
|
-
|
|
-
|
Selling and
marketing
|
|
2,625
|
|
8,198
|
|
1,286
|
General and
administrative
|
|
38,605
|
|
32,247
|
|
5,060
|
Research and
development
|
|
23,978
|
|
42,677
|
|
6,697
|
Total
|
|
65,154
|
|
83,122
|
|
13,043
|
View original
content:https://www.prnewswire.com/news-releases/zepp-health-corporation-reports-fourth-quarter-and-full-year-2021-unaudited-financial-results-301504969.html
SOURCE Zepp Health Corp.