Deng Cheng 4

What Happened
Deng Cheng, Chief Financial Officer of Zepp Health (ZEPP), had 366,000 restricted share units (RSUs) granted on April 1, 2026 that vested on June 26, 2026 and were settled into American Depositary Shares (ADSs). The RSUs (366,000 Class A ordinary shares) converted into 22,875 ADSs (each ADS = 16 Class A shares). On June 26, 2026 he sold 9,836 ADSs in a sell-to-cover transaction for taxes, generating about $45,344 (weighted average $4.61 per ADS). No cash was paid for the conversion (derivative exercise/conversion).

Key Details

• Transaction dates: Grant 2026-04-01 (RSU grant); conversion/settlement and sell-to-cover 2026-06-26; Form 4 filed 2026-06-29.
• Sale proceeds: 9,836 ADSs sold for a weighted average price of $4.61 per ADS, totaling ~$45,344. Sales occurred in multiple trades at $4.31–$4.8034 per ADS (footnote).
• Conversion: 366,000 RSUs converted into 22,875 ADSs (366,000 ÷ 16 ADS-per-share ratio). Reporting shows acquisition of 22,875 ADSs on conversion and disposition of the 366,000 underlying shares (derivative).
• Shares remaining (post-transaction, calculated): 13,039 ADSs retained (22,875 acquired − 9,836 sold) — equivalent to 208,624 Class A ordinary shares (13,039 × 16).
• Footnotes: ADSs each represent 16 Class A shares; sale was a sell-to-cover to satisfy tax withholding on vesting; weighted-average sale price disclosed, with detailed breakdown available on request.
• Filing timeliness: Form 4 filed 6/29/2026 and covers the 6/26/2026 vesting/sell-to-cover — this filing date is within the typical two-business-day window for the 6/26 transactions.

Context
This was primarily a routine tax-withholding sell-to-cover following the vesting and settlement of RSUs rather than an outright open-market purchase or voluntary sell for investment reasons. The key actionable item for investors is that management retained the majority of the converted ADSs (approximately 13,039 ADSs remaining), rather than selling the entire vested position.