BEIJING, March 14, 2019 /PRNewswire/ -- Huami Corporation
("Huami" or the "Company") (NYSE: HMI), a biometric and activity
data-driven company with significant expertise in smart wearable
technology, today announced its unaudited financial results for the
fourth quarter and full year ended December
31, 2018.
Fourth Quarter 2018 Financial and Operating
Highlights
- Revenues[1]
reached RMB1,224.6 million
(US$178.1 million), representing an
increase of 62.7% from the fourth quarter of 2017.
- Gross margin was 25.2%, compared with 22.2% for the
fourth quarter of 2017.
- Net income attributable to Huami Corporation was
RMB126.0 million (US$18.3 million), compared with RMB72.3 million for the fourth quarter of
2017.
- Basic and diluted net income per ADS attributable to
ordinary shareholders of Huami Corporation was RMB2.08 (US$0.30)
and RMB1.97 (US$0.29), respectively, compared with
RMB1.33 and RMB1.27, respectively, for the fourth quarter of
2017. Each ADS represents four (4) Class A ordinary shares.
- Adjusted net income attributable to Huami
Corporation[2] was
RMB146.5 million (US$21.3 million), up 69.3% from the fourth
quarter of 2017.
- Adjusted basic and diluted net income per American
depositary share ("ADS") attributable to ordinary shareholders of
Huami Corporation was RMB2.42 (US$0.35)
and RMB2.30 (US$0.33), respectively, compared with
RMB1.63 and RMB1.56, respectively, for the fourth quarter of
2017. Each ADS represents four (4) Class A ordinary shares.
- Total units shipped reached 9.2 million, compared with
6.5 million in the fourth quarter of 2017.
[1] The Company
has adopted ASC 606 by using modified retrospective method since
January 1, 2018.
|
[2] Adjusted net
income is a non-GAAP measure, which excludes share-based
compensation expenses. See "Reconciliation of GAAP and Non-GAAP
Results" at the end of this press release.
|
Full Year 2018 Financial and Operating Highlights
- Revenues reached RMB3,645.3
million (US$530.2 million),
representing an increase of 77.9% from the full year 2017.
- Gross margin reached 25.8%, compared with 24.1% for the
full year 2017.
- Net income attributable to Huami Corporation was
RMB340.0 million (US$49.5 million), compared with RMB167.7 million in the full year 2017.
- Basic and diluted net income per ADS attributable to
ordinary shareholders of Huami Corporation was
RMB5.98 (US$0.87) and RMB5.41 (US$0.79),
respectively, compared with RMB2.72
and RMB2.60 respectively, for the
full year 2017. Each ADS represents four (4) Class A ordinary
shares.
- Adjusted net income attributable to Huami Corporation
was RMB474.8 million (US$69.0 million), up 106.0% from the full year
2017.
- Adjusted basic and diluted net income per ADS attributable
to ordinary shareholders of Huami Corporation was RMB8.39 (US$1.22)
and RMB7.59 (US$1.10), respectively, compared with
RMB4.07 and RMB3.90, respectively, for the full year 2017.
Each ADS represents four (4) Class A ordinary shares.
- Total units shipped reached 27.5 million, compared with
18.1 million in the full year 2017.
"We are very proud to conclude the year of 2018 with strong
business performance as we continue to strengthen our leadership
position in the global smart wearables industry. Our fourth quarter
results capped off a very strong year for Huami," said Wang Huang, Chairman and CEO. "Customer adoption
of the Amazfit brand grew significantly in 2018 with shipment of
Amazfit products almost tripled compared with 2017, which was
mainly driven by Amazfit watch products. In 2018, we introduced a
breakthrough in healthcare technologies by applying in wearables
powered by our self-developed AI chip Huangshan-1; broadened our
IOT application scenarios; and engaged with strategic partnerships
such as Timex and PAI Health. We see tremendous opportunity to
continue our global growth. We intend to utilize our world-class
research and development capabilities, as well as our collaborative
partnerships to development new, innovative products and services
that ensure we remain at the forefront of our industry."
David Cui, Chief Financial
Officer, said, "Strong demand for our Amazfit products and
continued robust sales of the Mi Bands allowed us to deliver
revenues that exceeded the high-end of our previous guidance range
in the fourth quarter. In addition, a focus on competitive product
development and efficient business operation generated solid
profitability in the quarter. Our pipeline of cutting-edge
products, broad brand awareness and growing global distribution
channels position us well for 2019 and beyond."
Fourth Quarter 2018 Financial Results
Revenues increased by 62.7% to RMB1,224.6 million (US$178.1 million) from RMB752.6 million for the fourth quarter of 2017,
primarily due to the increase in the sales of Xiaomi wearable
products and self-branded products, driven by increased brand
recognition of our products.
Cost of revenues increased by 56.3% to RMB915.6 million (US$133.2
million) from RMB585.8 million
for the fourth quarter of 2017. The increase was in-line with the
rapid sales growth of Xiaomi wearable products and self-branded
products.
Gross profit increased by 85.2% to RMB309.0 million (US$44.9
million) from RMB166.8 million
for the fourth quarter of 2017. Gross margin of 25.2% is an
improvement from the fourth quarter of 2017.
Total operating expenses increased by 93.2% to
RMB177.8 million (US$25.9 million) from RMB92.0 million for the fourth quarter of
2017.
Research and development expenses increased by 88.1%
to RMB85.1 million (US$12.4
million) from RMB45.2 million for the fourth
quarter of 2017, primarily due to the increase in R&D personnel
expenses and the recruitment of new employees.
General and administrative expenses increased by
97.3% to RMB63.9 million (US$9.3
million) from RMB32.4 million for the fourth
quarter of 2017, primarily due to the increase in personnel-related
expenses and foreign exchange rate fluctuation.
Selling and marketing expenses increased by 100.4%
to RMB28.8 million (US$4.2
million) from RMB14.3 million for the fourth
quarter of 2017, primarily due to an increase in personnel-related
expenses, and an increase in advertising promotion expenses
for self-branded products.
Operating income was RMB131.2
million (US$19.1 million),
compared with RMB74.8
million for the fourth quarter of 2017.
Income before income tax was RMB139.4
million (US$20.3 million),
compared with RMB79.9
million for the fourth quarter of 2017.
Income tax expenses were RMB12.3
million (US$1.8 million),
compared with RMB12.1 million for the fourth quarter of
2017.
Net income attributable to Huami
Corporation totaled RMB126.0
million (US$18.3 million),
compared with RMB72.3 million for the fourth quarter of
2017.
Net income attributable to ordinary shareholders of Huami
Corporation increased to RMB122.4
million (US$17.8 million),
compared with RMB23.9 million for the fourth quarter of
2017.
Basic and diluted net income per ADS attributable to ordinary
shareholders of
Huami Corporation was RMB2.08 (US$0.30) and RMB1.97 (US$0.29),
respectively, compared with RMB1.33 and RMB1.27,
respectively, for the fourth quarter of 2017. Each ADS represents
four (4) Class A ordinary shares.
Adjusted net income attributable to Huami Corporation,
which excludes share-based compensation expenses, increased by
69.3% to RMB146.5 million (US$21.3
million) from RMB86.5 million for the fourth
quarter of 2017.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of
Huami Corporation was RMB2.42
(US$0.35) and RMB2.30
(US$0.33), respectively, compared
with RMB1.63 and RMB1.56, respectively, for the
fourth quarter of 2017. Each ADS represents four (4) Class A
ordinary shares.
As of December 31, 2018, the Company had cash and cash
equivalents of RMB1,441.8 million (US$209.7 million), compared with RMB366.3
million as of December 31, 2017.
Full Year 2018 Financial Results
Revenues increased by 77.9% to RMB3,645.3 million (US$530.2 million) from RMB2,048.9 million for the full year 2017, due to
the increase in shipment volume of both Xiaomi wearable products
and self-branded products and others, driven by increasing market
recognition of our products.
Cost of revenues increased by 74.1% to RMB2,705.9 million (US$393.6 million) from RMB1,554.2 million for the full year 2017. The
increase was in-line with the rapid sales growth of Xiaomi wearable
and self-branded products.
Gross profit increased by 89.9% to RMB939.5 million (US$136.6
million) from RMB494.7 million
for the full year 2017. Gross margin increased to 25.8% from 24.1%
for the full year 2017. The increase was driven by improved
economies of scale and the rapid growth in sales of self-branded
products.
Total operating expenses increased by 83.5% to
RMB573.7 million (US$83.4 million) from RMB312.7 million for the full year 2017. The
Company's successful IPO and the amendment of certain vesting
schedules of previously granted options triggered an acceleration
of expense recognition in the full year of 2018. Excluding
share-based compensation expenses, the increase is primarily due to
an increase in personnel-related expenses, advertisement promotion
expenses, and foreign exchange rate fluctuation.
Research and development expenses increased by 71.1%
to RMB263.2 million (US$38.3
million) from RMB153.8 million for the full year
2017, primarily due to the increase in R&D personnel-related
expenses and the recruitment of new employees.
General and administrative expenses increased by
86.3% to RMB214.0 million (US$31.1
million) from RMB114.9 million for the full year
2017, primarily due to the increase in personnel-related expenses,
foreign exchange rate fluctuation, and professional fees related to
business expansion and operating as a public company.
Selling and marketing expenses increased by 119.3%
to RMB96.5 million (US$14.0
million) from RMB44.0 million for the full year
2017, primarily due to the increase in personnel-related expenses,
and the increase in advertising promotion expenses for self-branded
products.
Operating income was RMB365.7
million (US$53.2 million),
compared with RMB182.0 million for the full year
2017.
Income before income tax was RMB386.6 million (US$56.2
million), compared with RMB191.9
million for the full year 2017.
Income tax expenses were RMB52.0
million (US$7.6 million),
compared with RMB27.6 million for the full year 2017.
Net income attributable to Huami
Corporation totaled RMB340.0
million (US$49.5 million),
compared with RMB167.7 million for the full year
2017.
Net income attributable to ordinary shareholders of Huami
Corporation increased to RMB316.9
million (US$46.1 million),
compared with RMB46.1 million for the full year 2017.
Basic and diluted net income per ADS attributable to ordinary
shareholders of
Huami Corporation was RMB5.98 (US$0.87) and RMB5.41 (US$0.79),
respectively, compared with RMB2.72 and RMB2.60
respectively, for the full year 2017. Each ADS represents
four (4) Class A ordinary shares.
Adjusted net income attributable to Huami Corporation,
which excludes share-based compensation expenses, increased by
106.0% to RMB474.8 million (US$69.0 million) from RMB230.5
million for the full year 2017.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of Huami Corporation was
RMB8.39 (US$1.22) and RMB7.59 (US$1.10), respectively, compared
with RMB4.07 and RMB3.90, respectively, for the full
year 2017. Each ADS represents four (4) Class A ordinary
shares.
Outlook
For the first quarter of 2019, the management of the Company
currently expects:
- Net revenues to be between RMB750.0
million and RMB770.0 million, which would represent an
increase of approximately 28.0% to 31.4% from RMB585.9
million for the first quarter of 2018.
The above outlook is based on the current market conditions and
reflects Company management's current and preliminary estimates of
market and operating conditions and customer demand, which are all
subject to change.
Conference Call
The Company's management will hold a conference call
at 8:00 a.m. Eastern Time on Thursday,
March 14, 2019 (8:00 p.m.
Beijing Time on March 14, 2019) to
discuss financial results and answer questions from investors and
analysts. Listeners may access the call by dialing:
US (Toll
Free):
|
+1-888-346-8982
|
International:
|
+1-412-902-4272
|
Mainland China (Toll
Free):
|
400-120-1203
|
Hong Kong (Toll
Free):
|
800-905-945
|
Hong Kong:
|
+852-3018-4992
|
Participants should dial-in at least 10 minutes before the
scheduled start time and ask to be connected to the call for "Huami
Corporation."
Additionally, a live and archived webcast of the conference call
will be available at http://www.huami.com/investor.
A telephone replay will be available one hour after the end of
the conference until March 21, 2019
by dialing the following telephone numbers:
US (Toll
Free):
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay
Passcode:
|
10129354
|
About Huami Corporation
Huami is a biometric and activity data-driven company with
significant expertise in smart wearable technology. Since its
inception in 2013, Huami has quickly established its global market
leadership and recognition by shipping millions of units of smart
wearable devices. In 2018, Huami shipped 27.5 million units of
smart wearable devices. Huami has one of the largest biometric
and activity databases in the global smart wearables
industry. Huami's mobile apps work hand in hand with its smart
wearable devices and provide users with a comprehensive view and
analysis of their biometric and activity data.
Use of Non-GAAP Measures
We use adjusted net income, a non-GAAP financial measure, in
evaluating our operating results and for financial and operational
decision-making purposes. Adjusted net income represents net income
excluding share-based compensation expenses, and such adjustment
has no impact on income tax.
We believe that adjusted net income helps identify underlying
trends in our business that could otherwise be distorted by the
effect of certain expenses that we include in net income. We
believe that adjusted net income provides useful information about
our operating results, enhances the overall understanding of our
past performance and future prospects and allows for greater
visibility with respect to key metrics used by our management in
its financial and operational decision-making.
Adjusted net income should not be considered in isolation or
construed as an alternative to net income, basic and diluted net
income per share attributable to ordinary shareholders of Huami
Corporation or any other measure of performance or as an indicator
of our operating performance. Investors are encouraged to review
the historical non-GAAP financial measures to the most directly
comparable GAAP measures. Adjusted net income presented here may
not be comparable to similarly titled measures presented by other
companies. Other companies may calculate similarly titled measures
differently, limiting their usefulness as comparative measures to
our data. We encourage investors and others to review our financial
information in its entirety and not rely on a single financial
measure.
Exchange Rate
The Company's business is primarily conducted
in China and the significant majority of revenues
generated are denominated in Renminbi ("RMB"). This announcement
contains currency conversions of RMB amounts into U.S. dollars
("US$") solely for the convenience of the reader. Unless otherwise
noted, all translations from RMB to US$ are made at a rate
of RMB6.8755 to US$1.00, the effective noon buying
rate for December 31, 2018 as set
forth in the H.10 statistical release of the Federal Reserve Board.
No representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
December 31, 2018, or at any other
rate.
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:
In China:
Huami Corporation
Grace Yujia Zhang
Tel: +86-10-5940-3255
E-mail: ir@huami.com
The Piacente Group, Inc.
Ross Warner
Tel: +86-10-5730-6201
E-mail: huami@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: huami@tpg-ir.com
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
366,336
|
|
1,441,802
|
|
209,701
|
Restricted
cash
|
|
3,185
|
|
10,010
|
|
1,456
|
Term
deposit
|
|
-
|
|
96,969
|
|
14,104
|
Accounts
receivable
|
|
32,867
|
|
58,925
|
|
8,570
|
Amounts due from
related parties, current
|
|
578,454
|
|
656,399
|
|
95,469
|
Inventories
|
|
249,735
|
|
484,622
|
|
70,485
|
Short-term
investments
|
|
13,721
|
|
50,482
|
|
7,342
|
Prepaid expenses and
other current assets
|
|
51,062
|
|
58,247
|
|
8,473
|
Total current
assets
|
|
1,295,360
|
|
2,857,456
|
|
415,600
|
Property, plant and
equipment, net
|
|
28,755
|
|
40,042
|
|
5,824
|
Intangible asset,
net
|
|
5,339
|
|
63,722
|
|
9,268
|
Goodwill
|
|
5,930
|
|
5,930
|
|
862
|
Long-term
investments
|
|
85,238
|
|
208,949
|
|
30,390
|
Deferred tax
assets
|
|
41,895
|
|
75,032
|
|
10,913
|
Other non-current
assets
|
|
3,000
|
|
7,350
|
|
1,070
|
Total
assets
|
|
1,465,517
|
|
3,258,481
|
|
473,927
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
707,782
|
|
1,064,106
|
|
154,768
|
Advance from
customers
|
|
10,683
|
|
5,943
|
|
864
|
Amount due to related
parties, current
|
|
8,143
|
|
10,695
|
|
1,556
|
Accrued expenses and
other current liabilities
|
|
93,798
|
|
213,975
|
|
31,121
|
Income tax
payables
|
|
21,600
|
|
54,037
|
|
7,859
|
Notes
payable
|
|
5,243
|
|
18,936
|
|
2,754
|
Bank
borrowings
|
|
30,000
|
|
20,000
|
|
2,909
|
Total current
liabilities
|
|
877,249
|
|
1,387,692
|
|
201,831
|
Deferred tax
liabilities
|
|
2,470
|
|
4,962
|
|
722
|
Amount due to a
related party, non-current
|
|
3,076
|
|
-
|
|
-
|
Other non-current
liabilities
|
|
4,940
|
|
56,249
|
|
8,181
|
Total
liabilities
|
|
887,735
|
|
1,448,903
|
|
210,734
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
|
|
Series A convertible
redeemable participating preferred shares
|
|
26,770
|
|
-
|
|
-
|
Series B-1
convertible redeemable participating preferred shares
|
|
26,906
|
|
-
|
|
-
|
Series B-2
convertible redeemable participating preferred shares
|
|
295,942
|
|
-
|
|
-
|
Total mezzanine
equity
|
|
349,618
|
|
-
|
|
-
|
Equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
56
|
|
151
|
|
22
|
Additional paid-in
capital
|
|
72,427
|
|
1,209,056
|
|
175,850
|
Accumulated retained
earnings
|
|
131,192
|
|
504,567
|
|
73,386
|
Accumulated other
comprehensive income
|
|
22,100
|
|
97,141
|
|
14,129
|
Total Huami
Corporation shareholders' equity
|
|
225,775
|
|
1,810,915
|
|
263,387
|
Non-controlling
interests
|
|
2,389
|
|
(1,337)
|
|
(194)
|
Total
equity
|
|
228,164
|
|
1,809,578
|
|
263,193
|
Total liabilities,
mezzanine equity and equity
|
|
1,465,517
|
|
3,258,481
|
|
473,927
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Three
Months Ended December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
752,648
|
|
1,224,569
|
|
178,106
|
Cost of
revenues
|
|
585,825
|
|
915,574
|
|
133,165
|
Gross
profit
|
|
166,823
|
|
308,995
|
|
44,941
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
14,346
|
|
28,753
|
|
4,182
|
General and
administrative
|
|
32,406
|
|
63,929
|
|
9,298
|
Research and
development
|
|
45,237
|
|
85,069
|
|
12,373
|
Total operating
expenses
|
|
91,989
|
|
177,751
|
|
25,853
|
Operating
income
|
|
74,834
|
|
131,244
|
|
19,088
|
Other income and
expenses:
|
|
|
|
|
|
|
Realized gain from
investments
|
|
38
|
|
261
|
|
38
|
Interest
income
|
|
1,540
|
|
6,572
|
|
956
|
Other
income(expense)
|
|
3,489
|
|
(6,536)
|
|
(951)
|
Gain from fair value
change of long-term investment
|
|
-
|
|
7,860
|
|
1,143
|
Income before
income tax
|
|
79,901
|
|
139,401
|
|
20,274
|
Income tax
expenses
|
|
(12,149)
|
|
(12,323)
|
|
(1,792)
|
Income before
income from equity method investments
|
|
67,752
|
|
127,078
|
|
18,482
|
Income /(loss) from
equity method investments
|
|
4,228
|
|
(1,920)
|
|
(279)
|
Net income
|
|
71,980
|
|
125,158
|
|
18,203
|
Less: Net loss
attributable to non-controlling interest
|
|
(324)
|
|
(794)
|
|
(115)
|
Net income
attributable to Huami Corporation
|
|
72,304
|
|
125,952
|
|
18,318
|
Less: Accretion of
Series A Preferred Shares
|
|
976
|
|
-
|
|
-
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
803
|
|
-
|
|
-
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
8,831
|
|
-
|
|
-
|
Less: Undistributed
earnings allocated to participating preferred
shares and nonvested
restricted shares
|
|
37,832
|
|
3,573
|
|
520
|
Net income
attributable to ordinary shareholders of Huami
Corporation
|
|
23,862
|
|
122,379
|
|
17,798
|
Net income per
share attributable to ordinary
shareholders of Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.33
|
|
0.52
|
|
0.08
|
Diluted income per
ordinary share
|
|
0.32
|
|
0.49
|
|
0.07
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
1.33
|
|
2.08
|
|
0.30
|
ADS –
diluted
|
|
1.27
|
|
1.97
|
|
0.29
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net
income per share
Ordinary share –
basic
|
|
71,920,852
|
|
234,818,943
|
|
234,818,943
|
|
|
|
|
|
|
|
Ordinary share –
diluted
|
|
80,507,984
|
|
248,271,059
|
|
248,271,059
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Three
Months Ended December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to Huami
Corporation
|
|
72,304
|
|
125,952
|
|
18,318
|
Share-based
compensation expenses
|
|
14,212
|
|
20,498
|
|
2,982
|
Adjusted net
income attributable to Huami
Corporation
|
|
86,516
|
|
146,450
|
|
21,300
|
Less: Accretion of
Series A Preferred Shares
|
|
976
|
|
-
|
|
-
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
803
|
|
-
|
|
-
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
8,831
|
|
-
|
|
-
|
Less: Undistributed
earnings allocated to
participating preferred shares and nonvested
restricted shares
|
|
46,546
|
|
4,155
|
|
604
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation
|
|
29,360
|
|
142,295
|
|
20,696
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
0.41
|
|
0.61
|
|
0.09
|
Adjusted diluted
income per ordinary share
|
|
0.39
|
|
0.57
|
|
0.08
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary
shares equal
to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
1.63
|
|
2.42
|
|
0.35
|
ADS –
diluted
|
|
1.56
|
|
2.30
|
|
0.33
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
71,920,852
|
|
234,818,943
|
|
234,818,943
|
Ordinary share –
diluted
|
|
80,507,984
|
|
248,271,059
|
|
248,271,059
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Selling and
marketing
|
|
-
|
|
100
|
|
15
|
General and
administrative
|
|
13,656
|
|
16,452
|
|
2,393
|
Research and
development
|
|
556
|
|
3,946
|
|
574
|
Total
|
|
14,212
|
|
20,498
|
|
2,982
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
Years
ended
|
|
|
Dec.
31,2017
|
|
Dec.
31,2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
2,048,896
|
|
3,645,335
|
|
530,192
|
Cost of
revenues
|
|
1,554,194
|
|
2,705,885
|
|
393,555
|
Gross
profit
|
|
494,702
|
|
939,450
|
|
136,637
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
44,026
|
|
96,538
|
|
14,041
|
General and
administrative
|
|
114,880
|
|
213,973
|
|
31,121
|
Research and
development
|
|
153,827
|
|
263,220
|
|
38,284
|
Total operating
expenses
|
|
312,733
|
|
573,731
|
|
83,446
|
Operating
income
|
|
181,969
|
|
365,719
|
|
53,191
|
Other income and
expenses:
|
|
|
|
|
|
|
Realized gain from
investment
|
|
2,373
|
|
261
|
|
38
|
Interest
income
|
|
3,003
|
|
11,595
|
|
1,686
|
Other
income
|
|
4,555
|
|
1,178
|
|
171
|
Gain from fair value
change of long-term investments
|
|
-
|
|
7,860
|
|
1,143
|
Income before
income tax
|
|
191,900
|
|
386,613
|
|
56,229
|
Income tax
expenses
|
|
(27,611)
|
|
(52,036)
|
|
(7,568)
|
Income before loss
from equity method investments
|
|
164,289
|
|
334,577
|
|
48,661
|
Income from equity
method investments
|
|
2,806
|
|
1,743
|
|
254
|
Net income
|
|
167,095
|
|
336,320
|
|
48,915
|
Less: Net loss
attributable to non-controlling interest
|
|
(587)
|
|
(3,726)
|
|
(542)
|
Net income
attributable to Huami Corporation
|
|
167,682
|
|
340,046
|
|
49,457
|
Less: Accretion of
Series A Preferred Shares
|
|
3,762
|
|
177
|
|
26
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
3,127
|
|
368
|
|
54
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
34,382
|
|
4,049
|
|
589
|
Less: Undistributed
earnings allocated to
participating preferred shares and nonvested
restricted shares
|
|
80,291
|
|
18,540
|
|
2,697
|
Net income
attributable to ordinary shareholders of Huami Corporation
|
|
46,120
|
|
316,912
|
|
46,091
|
|
|
|
|
|
|
|
Net income per share
attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.68
|
|
1.50
|
|
0.22
|
Diluted income per
ordinary share
|
|
0.65
|
|
1.35
|
|
0.20
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
2.72
|
|
5.98
|
|
0.87
|
ADS –
diluted
|
|
2.60
|
|
5.41
|
|
0.79
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
67,777,592
|
|
211,873,704
|
|
211,873,704
|
Ordinary share –
diluted
|
|
76,291,901
|
|
225,034,650
|
|
225,034,650
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
Years
ended
|
|
|
Dec.
31,2017
|
|
Dec.
31,2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to Huami
Corporation
|
|
167,682
|
|
340,046
|
|
49,457
|
Share-based
compensation expenses
|
|
62,787
|
|
134,709
|
|
19,592
|
Adjusted net
income attributable to Huami
Corporation
|
|
230,469
|
|
474,755
|
|
69,049
|
Less: Accretion of
Series A Preferred Shares
|
|
3,762
|
|
177
|
|
26
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
3,127
|
|
368
|
|
54
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
34,382
|
|
4,049
|
|
589
|
Less: Undistributed
earnings allocated t
o participating
preferred shares and
nonvested restricted shares
|
|
120,169
|
|
25,985
|
|
3,779
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation
|
|
69,029
|
|
444,176
|
|
64,601
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
1.02
|
|
2.10
|
|
0.31
|
Adjusted diluted
income per ordinary share
|
|
0.97
|
|
1.90
|
|
0.28
|
|
|
|
|
|
|
|
Adjusted
income per ADS (4 ordinary shares
equal to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
4.07
|
|
8.39
|
|
1.22
|
ADS –
diluted
|
|
3.90
|
|
7.59
|
|
1.10
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
67,777,592
|
|
211,873,704
|
|
211,873,704
|
Ordinary share –
diluted
|
|
76,291,901
|
|
225,034,650
|
|
225,034,650
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
-
|
|
414
|
|
60
|
Selling and
marketing
|
|
-
|
|
4,271
|
|
621
|
General and
administrative
|
|
55,804
|
|
87,857
|
|
12,778
|
Research and
development
|
|
6,983
|
|
42,167
|
|
6,133
|
Total
|
|
62,787
|
|
134,709
|
|
19,592
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/huami-corporation-reports-fourth-quarter-and-full-year-2018-unaudited-financial-results-300812358.html
SOURCE Huami Corporation