Zepp Health posts a ~40% drop in revenue for the second quarter of 2022
Zepp Health is a thriving health- and fitness-tech company thanks to its long-standing role as the ODM for the Xiaomi Mi Band (or, most recently, Xiaomi Band) series of devices, as well as its own-brand Amazfit wearables - well, under normal circumstances, anyway. However, some particularly 2022 circumstances have pushed it to record an uncharacteristic net loss per share of ~US$0.07 for this year's second quarter.
Then again, the company did manage to accrue takings of 1.1 billion yuan (~US$161 million) in total for 2Q2022: +46.4% quarter-on-quarter (QoQ), or -39.6% year-on-year (YoY). Then again, Zepp Health has a decent enough excuse for this shortfall, which is that the latest, 7th-gen Xiaomi Band launched 2 months later than usual.
This delay, linked to the global chip shortage, halved the number of shipments Zepp Health normally derives from its relationship with Xiaomi in 2Q2022. The ODM's total shipments for the quarter were cut by 45.2% as a result.
The company also acknowledged the effect of the conflict in Ukraine and the latest spate of lockdowns in China on its 2Q2022 performance.
Nevertheless, Zepp Health remains optimistic for the rest of the year, asserting that its revenues are set to recover thanks to sales of its new Amazfit T-Rex 2 and Bip 3 series. Furthermore, the OEM's fourth-gen GTR and GTS flagship smartwatches are also tipped to launch soon.