Zepp Regains Compliance with NYSE Minimum Price Continued Listing Criterion

Rhea-AI Summary

Zepp Health (NYSE: ZEPP), a global leader in smart wearables and health technology, has regained compliance with the New York Stock Exchange's (NYSE) continued listing criterion of a minimum share price. The company received a letter from the NYSE on October 2, 2024, confirming its compliance with Section 802.01C of the NYSE Listed Company Manual.

This development follows a previous notification from the NYSE on April 30, 2024, which informed Zepp Health that it had fallen below compliance standards due to its American depositary shares' average closing price being less than $1.00 for a consecutive 30 trading-day period. With this new confirmation, Zepp Health is no longer considered below the NYSE Minimum Price Continued Listing Criterion.

Positive

• Regained compliance with NYSE's minimum share price listing requirement
• No longer at risk of delisting from the New York Stock Exchange

Negative

• None.

Insights

Financial Analyst

This news is moderately positive for Zepp Health Regaining compliance with NYSE's minimum share price requirement eliminates the immediate risk of delisting, which is important for maintaining investor confidence and market access. However, it's important to note that this doesn't necessarily indicate an improvement in the company's fundamental performance or financial health.

For context, Zepp Health's stock had been trading below $1 for an extended period, which triggered the NYSE's non-compliance notice in April. The fact that it took nearly six months to regain compliance suggests the company may have faced challenges in boosting its stock price, possibly through measures like a reverse stock split or by improving investor sentiment.

While this development removes a significant near-term risk, investors should remain cautious. The company's ability to maintain compliance will depend on its future performance and market perception. Given Zepp Health's relatively small market cap of about $57.5 million, it may still be vulnerable to volatility and potential future compliance issues if it doesn't demonstrate sustainable growth and profitability.

MILPITAS, Calif., Oct. 2, 2024 /PRNewswire/ -- Zepp Health Corporation ("Zepp Health" or the "Company") (NYSE: ZEPP), a global leader in smart wearables and health technology, today announced that it has received a letter from the New York Stock Exchange ("NYSE") dated October 2, 2024 (the "October Letter"), notifying the Company that it has regained compliance with the NYSE's continued listing criterion of a minimum share price as set forth in Section 802.01C of the NYSE Listed Company Manual (the "NYSE Minimum Price Continued Listing Criterion").

As previously announced, the Company received a letter from the NYSE dated April 30, 2024, notifying the Company that it was below compliance standards due to the average closing price of the Company's American depositary shares being less than $1.00 for a consecutive 30 trading-day period. Following the receipt of the October Letter, the Company is no longer considered below the NYSE Minimum Price Continued Listing Criterion and has regained compliance regarding this matter.

About Zepp Health Corporation

Zepp Health (NYSE: ZEPP), a global smart wearable and health technology leader, empowers users to live their healthiest lives through its leading consumer brands, including Amazfit, Zepp Clarity, and Zepp Aura. Leveraging its proprietary Zepp Digital Health Management Platform, Zepp Health delivers actionable insights and guidance to users worldwide. With a presence in over 90 countries and a robust ecosystem of products and services, Zepp Health is at the forefront of advancing wearable intelligence and digital health technology.

For more information on Zepp Health and its products, please visit www.zepp.com

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
Email: ir@zepp.com

Piacente Financial Communications
Email: zepp@tpg-ir.com

View original content:https://www.prnewswire.com/news-releases/zepp-regains-compliance-with-nyse-minimum-price-continued-listing-criterion-302265308.html

SOURCE Zepp Health Corp.

FAQ

What NYSE compliance issue did Zepp Health (ZEPP) resolve on October 2, 2024?

Zepp Health regained compliance with the NYSE's minimum share price continued listing criterion, which requires a minimum average closing price of $1.00 over a consecutive 30 trading-day period.

When was Zepp Health (ZEPP) initially notified of non-compliance with NYSE listing standards?

Zepp Health was initially notified of non-compliance with NYSE listing standards on April 30, 2024, due to its average closing share price being below $1.00 for 30 consecutive trading days.

What is the significance of Zepp Health (ZEPP) regaining NYSE compliance?

Regaining NYSE compliance means Zepp Health is no longer at risk of being delisted from the New York Stock Exchange, which is important for maintaining investor confidence and access to capital markets.