The shares of Zepp Health Corp – ADR (NYSE:ZEPP) would be in focus on Thursday as the company reported second quarter earnings.
Zepp Health said that revenues during the latest quarter grew 61.40% year-over-year to RMB1.8 billion (US$284.2 million), compared to a year ago period revenue of RMB1.13 billion (US$161 million). Total units shipped jumped by 29.2% year-over-year to 11.5 million, compared with 8.9 million in the second quarter of 2020, thanks to a 114.3% increase in unit shipments of Amazfit and Zepp-branded products and a 22.0% increase in unit shippments of Xiaomi wearable products.
However, gross margin during the quarter fell to 22.0%, compared with 22.3% in the same period of 2020. Operating income stood at RMB71.6 million, a jump of 660.8% from RMB9.4 million for the same period in 2020.
Net income for the second quarter was RMB92.6 million, compared with RMB13.3 million in the second quarter of 2020. The increase was partially attributable to RMB13.5 million investment income and RMB24.8 net income from equity method investments.
“We were pleased to top the high end of our guidance range for the second quarter, which included an 81% increase in our own Amazfit and Zepp branded product revenue and a 53% increase in revenue from products designed and built for Xiaomi,” said Wang Huang, Chairman and CEO of Zepp Health.
Separately, the company announced the appointed of Mr. Meihui Fan as the Company’s Chief Technology Officer, effective on August 19, 2021. After his appointment as CTO, Mr. Fan will review and supervise the technical roadmap, key functions and technical indicators of the Company’s business divisions
ZEPP stock is flat in the pre-market session. The stock has fallen over 23% so far this year.