Zepp Health Corporation Provides Update on its Status under the Holding Foreign Companies Accountable Act
Zepp Health Corp. (NYSE: ZEPP) announced its identification by the SEC under the Holding Foreign Companies Accountable Act (HFCAA) on May 4, 2022. This occurred due to the use of an auditor whose working papers are not fully inspectable by the PCAOB. A company identified under HFCAA risks delisting if this continues for three consecutive years. Zepp Health is actively seeking to maintain its listing and protect stakeholder interests while complying with regulations in both China and the U.S.
- Zepp Health shipped 36 million smart wearable units in 2021, indicating strong market demand.
- The company is proactively exploring options to maintain its U.S. listing status.
- Identification under the HFCAA raises concerns about potential delisting from U.S. exchanges.
- The company used an auditor with uninspectable working papers, increasing scrutiny on its financial practices.
BEIJING, May 5, 2022 /PRNewswire/ -- Zepp Health Corp. ("Zepp Health" or the "Company") (NYSE: ZEPP), a cloud-based healthcare services provider with world-leading smart wearable technology, today announced that the Company is aware of the fact that it was identified by the United States Securities and Exchange Commission (the "SEC") under the Holding Foreign Companies Accountable Act of the United States (the "HFCAA") on May 4, 2022. Such identification may have resulted from the Company's filing of the annual report on Form 20-F for the fiscal year ended December 31, 2021.
The Company understands that the SEC made such identification pursuant to the HFCAA and its implementation rules issued thereunder. This indicates that the SEC has determined the Company used an auditor, whose working paper cannot be inspected or investigated completely by the Public Company Accounting Oversight Board of the United States (the "PCAOB"), to issue the audit opinion for the Company's financial statements for the fiscal year ended December 31, 2021.
In accordance with the HFCAA, a company will be delisted from a U.S. stock exchange if such company has been identified by the SEC for three consecutive years due to PCAOB's inability to inspect the auditor working paper related to such company.
Zepp Health is actively exploring plans to maintain its listing status and to best protect the interest of its stakeholders. The Company will continue to comply with applicable laws and regulations in both China and the U.S.
About Zepp Health Corporation (NYSE: ZEPP)
Zepp Health is a leading global developer of smart health technology, whose mission is to connect health with technology. Since its inception in 2013, Zepp Health has developed a platform of proprietary technology including AI chips, biometric sensors, data algorithms and operating systems, which drive a broadening line of smart health devices for consumers, data analytics services for population health, and industrial medical technology for diagnostics and care delivery. 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, Calif. For more information, please visit https://ir.zepp.com/investor/pages/company-profile
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:
Zepp Health Corporation
Grace Yujia Zhang
E-mail: ir@zepp.com
The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
E-mail: zepp@tpg-ir.com
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SOURCE Zepp Health Corp.
FAQ
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