Zepp Health Corporation Reports 1st Quarter 2023 Unaudited Financial Results.

BEIJING: Zepp Health Corporation ("Zepp" or the "Company") (NYSE: ZEPP) today reported revenues of RMB0.6 billion (US$93.9 million); a GAAP basic and diluted net loss per share of RMB0.56 (US$0.08); and a GAAP basic and diluted net loss per ADS of RMB2.23 (US$0.32) for the first quarter ended March 31, 2023. Each ADS represents four Class A ordinary shares.

"Our first quarter revenue came in within our guidance range at RMB645.2 million, including 60% of self-branded revenue. Total revenue down 14.8% year-over-year, the decrease is mainly due to the macroeconomic uncertainties globally that dampened discretionary consumption especially in the electronic devices market in the first quarter." Said Wayne Wang Huang, Chairman and CEO of Zepp Health. "We have successfully met our objective of reducing quarterly operating expenses to RMB254 million (adjusted operating expenses to RMB230 million), and we remain dedicated to implementing stringent cost control measures in the future. Our commitment to investing in state-of-the-art technology and product development remains steadfast. We will launch an advanced platform that integrates Zepp OS and our unique RISC-V based chip. This approach reduces the need for additional resources and ensures the development of high-quality hardware and software. Therefore, it allows us to develop new products quickly, inexpensively, and with outstanding quality, ultimately leading to increased efficiency and profitability in the future. By incorporating these latest cutting-edge technologies into our smartwatch products, we have successfully engaged with our users, grown alongside them, cultivated a thriving community, and established a distinct brand and market position."

"We are thrilled to introduce our highly anticipated new products, including the Trex Ultra, and GTR mini. Moreover, as a technology-driven smart wearable and healthcare solution provider and industry pioneer, we recently applied large language model (LLM) and Generative AI technology to our smart wearables. We are empowering users to make informed decisions and achieve their wellness and fitness goals intelligently. These AI empowered functionalities such as Zepp Coach, Zepp Aura, and Zepp AI Flex. Zepp Chatfacer will further enhance our products' competency. In the meantime, we strive to enhance the user experience in Zepp OS by integrating generative AI technology. As we continue to develop Zepp OS, we will also incorporate the latest GPT-4...