UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2018

 

Commission File Number: 001-38369

 

Huami Corporation

Building H8, No. 2800, Chuangxin Road

Hefei, 230088

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F     ___X____     Form 40-F     _________

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________

 


 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Huami Corporation

 

 

 

By:

 

/s/ David Cui

Name:

 

David Cui

Title:

 

Chief Financial Officer

 

Date: November 27, 2018


 


 

Exhibit Index

 

Exhibit 99.1 – Press Release

 

hmi-ex991_7.htm

Exhibit 99.1

Huami Corporation Reports Third Quarter 2018 Unaudited Financial Results

 

Revenues up 126.7% Year-over-Year to RMB1,074.7 Million, Exceeding Guidance Range

BEIJING, November 26, 2018 /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 third quarter ended September 30, 2018.

Third Quarter 2018 Financial and Operating Highlights

Revenues1 reached RMB1,074.7 million (US$156.5 million), representing an increase of 126.7% from the third quarter of 2017.

Gross margin was 26.7%, no material change from the third quarter of 2017.

Net income attributable to Huami Corporation was RMB113.8 million (US$16.6 million), compared with RMB50.2 million for the third quarter of 2017.

Adjusted net income attributable to Huami Corporation2 was RMB134.2 million (US$19.5 million), up 93.1% from the third quarter of 2017.

Adjusted basic and diluted net income per American depositary share ("ADS") attributable to ordinary shareholders of Huami Corporation was RMB2.23 (US$0.32) and RMB2.11 (US$0.31), respectively, compared with RMB1.27 and RMB1.22, respectively, for the third quarter of 2017.  Each ADS represents four (4) Class A ordinary shares.

Total units shipped reached 8.2 million, compared with 3.9 million in the third quarter of 2017.

First Nine Months of 2018 Financial and Operating Highlights

Revenues reached RMB2,420.8 million (US$352.5 million), representing an increase of 86.8% from the first nine months of 2017.

Gross margin reached 26.0%, increasing from 25.3% for the first nine months of 2017.

Net income attributable to Huami Corporation was RMB214.1 million (US$31.2 million), compared with RMB95.4 million in the first nine months of 2017.

 

1. The Group 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.

 


Adjusted net income attributable to Huami Corporation was RMB328.3 million (US$47.8 million), up 128.1% from the first nine months of 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB5.92 (US$0.86) and RMB5.30 (US$0.77), respectively, compared with RMB2.44 and RMB2.33, respectively, for the first nine months of 2017.  Each ADS represents four (4) Class A ordinary shares.

Total units shipped reached 18.3 million, compared with 11.6 million in the first nine months of 2017.

"Our third quarter results reflect our strong and growing market position and the enthusiastic reception of our products across the global smart wearables market," said Wang Huang, Chairman and CEO. "We were particularly pleased with the revenue growth we experienced in overseas markets, especially strong sales in the emerging markets as we executed focused sales strategies in these markets. We continue to develop cutting-edge products whose features excite and benefit consumers. During the quarter we launched a new generation Amazfit Health Band 1S, which allows us to provide cloud-based health monitoring services to users, future empowered by our newly developed Huangshan-1 AI Chip. We also introduced a new smartwatch, Amazfit Verge, that fully integrates with the Xiaomi IOT system via Xiao'ai intelligent voice assistant and we will further explore wearable technology scenarios in IOT industries. Meanwhile, the new Xiaomi-branded product Mi Band 3 along with its NFC version (with access to public transportation in 160+ cities), is experiencing a strong sales momentum, which also drove our growth of this quarter. The newly launched products and technologies create a foundation for our continued leadership in the development of advanced products in the smart wearables industry. We are excited to continue our growth and strengthen our market position through robust research and product development, including expansion of our value-added services, and the continued exploration of new markets and partners around the globe."

David Cui, Chief Financial Officer, said, "Strong year-over-year revenue growth of 126.7% supported continued improvement in our profit as we enjoy the benefits of our growing scale. Revenue generated from self-branded products grew to 34.5% of the total revenue for the first nine month sales and international version sales contributed 42.7% of the total shipment for the third quarter. We shipped 8.2 million units in the quarter, up 110.3% from the third quarter of 2017, driven by strong market reception for our Amazfit products and continued strong sales of the Mi Band 3 that was launched in the second quarter of 2018. Our growing share of the global smart wearables market, combined with strong alliances with industry leaders and solid momentum on many fronts, gives us confidence in our outlook for the fourth quarter and positions us well as we head into 2019."


 


Third Quarter 2018 Financial Results

Revenues increased by 126.7% to RMB1,074.7 million (US$156.5 million) from RMB474.1 million for the third quarter of 2017, primarily due to the increase in the sales of Xiaomi wearable products and self-branded products, driven by increasing market recognition of our products.

Cost of revenues increased by 126.9% to RMB787.8 million (US$114.7 million) from RMB347.2 million for the third 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 126.1% to RMB286.9 million (US$41.8 million) from RMB126.9 million for the third quarter of 2017. Gross margin of 26.7% was in line with the third quarter of 2017.

Total operating expenses increased by 121.0% to RMB160.3 million (US$23.3 million) from RMB72.5 million for the third quarter of 2017.

Research and development expenses increased by 70.1% to RMB60.0 million (US$8.7 million) from RMB35.2 million for the third 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 148.3% to RMB68.0 million (US$9.9 million) from RMB27.4 million for the third quarter of 2017, primarily due to the increase in personnel-related cost, the foreign exchange rate fluctuation, and the professional service fees associated with business expansion and being a public company.

Selling and marketing expenses increased by 226.8% to RMB32.3 million (US$4.7 million) from RMB9.9 million for the third quarter of 2017, primarily due to an increase in advertisement promotion expenses for self-branded products, and an increase in salary compensation.

Operating income was RMB126.6 million (US$18.4 million), compared with RMB54.4 million for the third quarter of 2017.

Income before income tax was RMB129.4 million (US$18.8 million), compared with RMB57.7 million for the third quarter of 2017.

Income tax expenses were RMB21.1 million (US$3.1 million), compared with RMB7.5 million for the third quarter of 2017.

Net income attributable to Huami Corporation totaled RMB113.8 million (US$16.6 million), compared with RMB50.2 million for the third quarter of 2017.

Net income attributable to ordinary shareholders of Huami Corporation increased to RMB109.1 million (US$15.9 million), compared with RMB14.8 million for the third quarter of 2017.

 


Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB1.89 (US$0.28) and RMB1.79 (US$0.26), respectively, compared with RMB0.85 and RMB0.82, respectively, for the third 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 93.1% to RMB134.2 million (US$19.5 million) from RMB69.5 million for the third quarter of 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB2.23(US$0.32) and RMB2.11 (US$0.31), respectively, compared with RMB1.27 and RMB1.22, respectively, for the third quarter of 2017.  Each ADS represents four (4) Class A ordinary shares.

As of September 30, 2018, the Company had cash and cash equivalents of RMB967.4 million (US$140.9 million), compared with RMB366.3 million as of December 31, 2017.

First Nine Months of 2018 Financial Results

Revenues increased by 86.8% to RMB2,420.8 million (US$352.5 million) from RMB1,296.2 million for the first nine months of 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 84.9% to RMB1,790.3 million (US$260.7 million) from RMB968.4 million for the first nine months of 2017. The increase was in line with the rapid sales growth of Xiaomi wearable products and self-branded products.

Gross profit increased by 92.3% to RMB630.5 million (US$91.8 million) from RMB327.9 million for the first nine months of 2017. Gross margin increased to 26.0% from 25.3% for the first nine months of 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 79.4% to RMB396.0 million (US$57.7 million) from RMB220.7 million for the first nine months of 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 first nine months of 2018. Excluding share-based compensation expenses, the increase is primarily due to an increase in personnel-related costs, advertisement promotion expenses, and professional service fees.  

Research and development expenses increased by 64.1% to RMB178.2 million (US$25.9 million) from RMB108.6 million for the first nine months of 2017, primarily due to the increase in R&D personnel expenses and the recruitment of new employees.

General and administrative expenses increased by 81.9% to RMB150.0 million (US$21.8 million) from RMB82.5 million for the first nine months of 2017, primarily due to the increase in personnel-related cost and professional fees to meet the need of business expansion and being a public company.

 


Selling and marketing expenses increased by 128.4% to RMB67.8 million (US$9.9 million) from RMB29.7 million for the first nine months of 2017, primarily due to the increase in salary compensation to retain sales and marketing personnel, and the increase in advertisement promotion expenses on the self-branded products.  

Operating income was RMB234.5 million (US$34.1 million), compared with RMB107.1 million for the first nine months of 2017.

Income before income tax was RMB247.2 million (US$36.0 million), compared with RMB112.0 million for the first nine months of 2017.

Income tax expenses were RMB39.7 million (US$5.8 million), compared with RMB15.5 million for the first nine months of 2017.

Net income attributable to Huami Corporation totaled RMB214.1 million (US$31.2 million), compared with RMB95.4 million for the first nine months of 2017.

Net income attributable to ordinary shareholders of Huami Corporation increased to RMB195.4 million (US$28.5 million), compared with RMB20.8 million for the first nine months of 2017.

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB3.83 (US$0.56) and RMB3.43 (US$0.50), respectively, compared with RMB1.39 and RMB1.33, respectively, for the first nine months 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 128.1% to RMB328.3 million (US$47.8 million) from RMB144.0 million for the first nine months of 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB5.92(US$0.86) and RMB5.30(US$0.77), respectively, compared with RMB2.44 and RMB2.33, respectively, for the first nine months of 2017.  Each ADS represents four (4) Class A ordinary shares.

Outlook

For the fourth quarter of 2018, the management of the Company currently expects:

- Net revenues to be between RMB1.12 billion and RMB1.15 billion, which would represent an increase of approximately 48.8% to 52.8% from RMB752.6 million for the fourth quarter of 2017.

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 7:30 a.m. Eastern Time on Monday, November 26, 2018 (8:30 p.m. Beijing Time on November 26, 2018) 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 December 2, 2018 by dialing the following telephone numbers:

 

US (Toll Free):

+1-877-344-7529

International:

+1-412-317-0088

Replay Passcode:

10126209

 

 

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 2017, Huami shipped 18.1 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.  In addition to designing, manufacturing and selling smart bands and watches under its own Amazfit brand, Huami is the sole partner of Xiaomi, a leading mobile internet company and global consumer electronics brand, to design and manufacture Xiaomi-branded smart bands, watches (excluding children watches and quartz watches), scales and associated accessories.


 


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 RMB6.8680 to US$1.00, the effective noon buying rate for September 28, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on September 28, 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 September 30,

 

 

 

2017

 

 

2018

 

 

 

RMB

 

 

RMB

 

 

US$

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

366,336

 

 

 

967,362

 

 

 

140,851

 

Restricted cash

 

 

3,185

 

 

 

3,020

 

 

 

440

 

Term deposit

 

 

 

 

288,456

 

 

 

42,000

 

Accounts receivable

 

 

32,867

 

 

 

38,535

 

 

 

5,611

 

Amounts due from related parties, current

 

 

578,454

 

 

 

663,260

 

 

 

96,573

 

Inventories

 

 

249,735

 

 

 

423,535

 

 

 

61,668

 

Short-term investments

 

 

13,721

 

 

 

49,665

 

 

 

7,231

 

Prepaid expenses and other current assets

 

 

51,062

 

 

 

45,730

 

 

 

6,658

 

Total current assets

 

 

1,295,360

 

 

 

2,479,563

 

 

 

361,032

 

Property, plant and equipment, net

 

 

28,755

 

 

 

35,366

 

 

 

5,149

 

Intangible asset, net

 

 

5,339

 

 

 

9,000

 

 

 

1,310

 

Goodwill

 

 

5,930

 

 

 

5,930

 

 

 

863

 

Long-term investments

 

 

85,238

 

 

 

152,788

 

 

 

22,246

 

Deferred tax assets

 

 

41,895

 

 

 

67,305

 

 

 

9,800

 

Other non-current assets

 

 

3,000

 

 

 

64,113

 

 

 

9,335

 

Total assets

 

 

1,465,517

 

 

 

2,814,065

 

 

 

409,735

 

 

 


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 September 30,

 

 

 

2017

 

 

2018

 

 

 

RMB

 

 

RMB

 

 

US$

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

707,782

 

 

 

849,736

 

 

 

123,724

 

Advance from customers

 

 

10,683

 

 

 

21,031

 

 

 

3,062

 

Amount due to related parties, current

 

 

8,143

 

 

 

8,513

 

 

 

1,240

 

Accrued expenses and other current liabilities

 

 

93,798

 

 

 

135,294

 

 

 

19,699

 

Income tax payables

 

 

21,600

 

 

 

38,682

 

 

 

5,632

 

Notes payable

 

 

5,243

 

 

 

5,034

 

 

 

733

 

Bank borrowings

 

 

30,000

 

 

 

20,000

 

 

 

2,912

 

Total current liabilities

 

 

877,249

 

 

 

1,078,290

 

 

 

157,002

 

Deferred tax liabilities

 

 

2,470

 

 

 

5,317

 

 

 

774

 

Amount due to a related party, non-current

 

 

3,076

 

 

 

3,185

 

 

 

464

 

Other non-current liabilities

 

 

4,940

 

 

 

56,249

 

 

 

8,190

 

Total liabilities

 

 

887,735

 

 

 

1,143,041

 

 

 

166,430

 

 

 


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 September 30,

 

 

 

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

 

 

 

1,196,715

 

 

 

174,245

 

Accumulated retained earnings

 

 

131,192

 

 

 

378,615

 

 

 

55,127

 

Accumulated other comprehensive income

 

 

22,100

 

 

 

96,086

 

 

 

13,990

 

Total Huami Corporation shareholders' equity

 

 

225,775

 

 

 

1,671,567

 

 

 

243,384

 

Non-controlling interests

 

 

2,389

 

 

 

(543

)

 

 

(79

)

Total equity

 

 

228,164

 

 

 

1,671,024

 

 

 

243,305

 

Total liabilities, mezzanine equity and equity

 

 

1,465,517

 

 

 

2,814,065

 

 

 

409,735

 

 

 


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 September 30,

 

 

 

2017

 

 

2018

 

 

 

RMB

 

 

RMB

 

 

US$

 

Revenues

 

 

474,079

 

 

 

1,074,707

 

 

 

156,480

 

Cost of revenues

 

 

347,174

 

 

 

787,811

 

 

 

114,707

 

Gross profit

 

 

126,905

 

 

 

286,896

 

 

 

41,773

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

9,896

 

 

 

32,341

 

 

 

4,709

 

General and administrative

 

 

27,376

 

 

 

67,971

 

 

 

9,897

 

Research and development

 

 

35,245

 

 

 

59,958

 

 

 

8,730

 

Total operating expenses

 

 

72,517

 

 

 

160,270

 

 

 

23,336

 

Operating income

 

 

54,388

 

 

 

126,626

 

 

 

18,437

 

Other income and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain from investments

 

 

2,335

 

 

 

 

 

Interest income

 

 

691

 

 

 

1,648

 

 

 

240

 

Other income

 

 

328

 

 

 

1,086

 

 

 

158

 

Income before income tax

 

 

57,742

 

 

 

129,360

 

 

 

18,835

 

Income tax expenses

 

 

(7,535

)

 

 

(21,095

)

 

 

(3,071

)

Income before income from equity method investments

 

 

50,207

 

 

 

108,265

 

 

 

15,764

 

(Loss)/income from equity method investments

 

 

(280

)

 

 

4,399

 

 

 

641

 

Net income

 

 

49,927

 

 

 

112,664

 

 

 

16,405

 

Less: Net loss attributable to non-controlling interest

 

 

(263

)

 

 

(1,148

)

 

 

(167

)

Net income attributable to Huami Corporation

 

 

50,190

 

 

 

113,812

 

 

 

16,572

 

Less: Accretion of Series A Preferred Shares

 

 

968

 

 

 

 

 

Less: Accretion of Series B-1 Preferred Shares

 

 

803

 

 

 

 

 

Less: Accretion of Series B-2 Preferred Shares

 

 

8,823

 

 

 

 

 

Less: Undistributed earnings allocated to participating preferred

   shares and nonvested restricted shares

 

 

24,833

 

 

 

4,759

 

 

 

693

 

Net income attributable to ordinary shareholders of

   Huami Corporation

 

 

14,763

 

 

 

109,053

 

 

 

15,879

 

Net income per share attributable to ordinary shareholders

   of Huami Corporation

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per ordinary share

 

 

0.21

 

 

 

0.47

 

 

 

0.07

 

Diluted income per ordinary share

 

 

0.20

 

 

 

0.45

 

 

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ADS (4 ordinary shares equal to 1 ADS)

 

 

 

 

 

 

 

 

 

 

 

 

ADS – basic

 

 

0.85

 

 

 

1.89

 

 

 

0.28

 

ADS – diluted

 

 

0.82

 

 

 

1.79

 

 

 

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing net

   income per share

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary share – basic

 

 

69,271,901

 

 

 

231,062,447

 

 

 

231,062,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary share – diluted

 

 

77,438,973

 

 

 

244,537,743

 

 

 

244,537,743

 

 

 


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 September 30,

 

 

 

2017

 

 

2018

 

 

 

RMB

 

 

RMB

 

 

US$

 

Net income attributable to Huami Corporation

 

 

50,190

 

 

 

113,812

 

 

 

16,572

 

Share-based compensation expenses

 

 

19,333

 

 

 

20,404

 

 

 

2,971

 

Adjusted net income attributable to Huami Corporation

 

 

69,523

 

 

 

134,216

 

 

 

19,543

 

Less: Accretion of Series A Preferred Shares

 

 

968

 

 

 

 

 

Less: Accretion of Series B-1 Preferred Shares

 

 

803

 

 

 

 

 

Less: Accretion of Series B-2 Preferred Shares

 

 

8,823

 

 

 

 

 

Less: Undistributed earnings allocated to participating preferred

   shares and nonvested restricted shares

 

 

36,959

 

 

 

5,613

 

 

 

817

 

Adjusted net income attributable to ordinary shareholders

   of Huami Corporation

 

 

21,970

 

 

 

128,603

 

 

 

18,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share attributable to ordinary

   shareholders of Huami Corporation

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted basic income per ordinary share

 

 

0.32

 

 

 

0.56

 

 

 

0.08

 

Adjusted diluted income per ordinary share

 

 

0.30

 

 

 

0.53

 

 

 

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per ADS (4 ordinary shares

   equal to 1 ADS)

 

 

 

 

 

 

 

 

 

 

 

 

ADS – basic

 

 

1.27

 

 

 

2.23

 

 

 

0.32

 

ADS – diluted

 

 

1.22

 

 

 

2.11

 

 

 

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing

   net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary share – basic

 

 

69,271,901

 

 

 

231,062,447

 

 

 

231,062,447

 

Ordinary share – diluted

 

 

77,438,973

 

 

 

244,537,743

 

 

 

244,537,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expenses included are follows:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

5

 

 

 

1

 

Selling and marketing

 

 

 

 

61

 

 

 

9

 

General and administrative

 

 

14,049

 

 

 

19,340

 

 

 

2,816

 

Research and development

 

 

5,284

 

 

 

998

 

 

 

145

 

Total

 

 

19,333

 

 

 

20,404

 

 

 

2,971

 

 

 


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 Nine Months Ended September 30,

 

 

 

2017

 

 

2018

 

 

 

RMB

 

 

RMB

 

 

US$

 

Revenues

 

 

1,296,248

 

 

 

2,420,766

 

 

 

352,470

 

Cost of revenues

 

 

968,369

 

 

 

1,790,311

 

 

 

260,674

 

Gross profit

 

 

327,879

 

 

 

630,455

 

 

 

91,796

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

29,680

 

 

 

67,785

 

 

 

9,870

 

General and administrative

 

 

82,474

 

 

 

150,044

 

 

 

21,847

 

Research and development

 

 

108,590

 

 

 

178,151

 

 

 

25,939

 

Total operating expenses

 

 

220,744

 

 

 

395,980

 

 

 

57,656

 

Operating income

 

 

107,135

 

 

 

234,475

 

 

 

34,140

 

Other income and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain from investment

 

 

2,335

 

 

 

 

 

Interest income

 

 

1,463

 

 

 

5,023

 

 

 

731

 

Other income

 

 

1,066

 

 

 

7,714

 

 

 

1,123

 

Income before income tax

 

 

111,999

 

 

 

247,212

 

 

 

35,994

 

Income tax expenses

 

 

(15,462

)

 

 

(39,713

)

 

 

(5,782

)

Income before loss from equity method investments

 

 

96,537

 

 

 

207,499

 

 

 

30,212

 

(Loss)/income from equity method investments

 

 

(1,422

)

 

 

3,663

 

 

 

533

 

Net income

 

 

95,115

 

 

 

211,162

 

 

 

30,745

 

Less: Net loss attributable to non-controlling interest

 

 

(263

)

 

 

(2,932

)

 

 

(427

)

Net income attributable to Huami Corporation

 

 

95,378

 

 

 

214,094

 

 

 

31,172

 

Less: Accretion of Series A Preferred Shares

 

 

2,786

 

 

 

177

 

 

 

26

 

Less: Accretion of Series B-1 Preferred Shares

 

 

2,324

 

 

 

368

 

 

 

54

 

Less: Accretion of Series B-2 Preferred Shares

 

 

25,551

 

 

 

4,049

 

 

 

590

 

Less: Undistributed earnings allocated to participating preferred

   shares and nonvested restricted shares

 

 

43,884

 

 

 

14,090

 

 

 

2,052

 

Net income attributable to ordinary shareholders of

   Huami Corporation

 

 

20,833

 

 

 

195,410

 

 

 

28,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to ordinary shareholders

   of Huami Corporation

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per ordinary share

 

 

0.35

 

 

 

0.96

 

 

 

0.14

 

Diluted income per ordinary share

 

 

0.33

 

 

 

0.86

 

 

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ADS (4 ordinary shares equal to 1 ADS)

 

 

 

 

 

 

 

 

 

 

 

 

ADS – basic

 

 

1.39

 

 

 

3.83

 

 

 

0.56

 

ADS – diluted

 

 

1.33

 

 

 

3.43

 

 

 

0.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing

   net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary share – basic

 

 

59,795,978

 

 

 

204,101,485

 

 

 

204,101,485

 

Ordinary share – diluted

 

 

68,395,489

 

 

 

216,264,202

 

 

 

216,264,202

 

 

 


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 Nine Months Ended September 30,

 

 

 

2017

 

 

2018

 

 

 

RMB

 

 

RMB

 

 

US$

 

Net income attributable to Huami Corporation

 

 

95,378

 

 

 

214,094

 

 

 

31,172

 

Share-based compensation expenses

 

 

48,575

 

 

 

114,211

 

 

 

16,628

 

Adjusted net income attributable to Huami Corporation

 

 

143,953

 

 

 

328,305

 

 

 

47,800

 

Less: Accretion of Series A Preferred Shares

 

 

2,786

 

 

 

177

 

 

 

26

 

Less: Accretion of Series B-1 Preferred Shares

 

 

2,324

 

 

 

368

 

 

 

54

 

Less: Accretion of Series B-2 Preferred Shares

 

 

25,551

 

 

 

4,049

 

 

 

590

 

Less: Undistributed earnings allocated to participating preferred

   shares and nonvested restricted shares

 

 

76,822

 

 

 

21,770

 

 

 

3,170

 

Adjusted net income attributable to ordinary shareholders

   of Huami Corporation

 

 

36,470

 

 

 

301,941

 

 

 

43,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share attributable to ordinary

   shareholders of Huami Corporation

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted basic income per ordinary share

 

 

0.61

 

 

 

1.48

 

 

 

0.22

 

Adjusted diluted income per ordinary share

 

 

0.58

 

 

 

1.32

 

 

 

0.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income per ADS (4 ordinary shares equal to 1 ADS)

 

 

 

 

 

 

 

 

 

 

 

 

ADS – basic

 

 

2.44

 

 

 

5.92

 

 

 

0.86

 

ADS – diluted

 

 

2.33

 

 

 

5.30

 

 

 

0.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing

   net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary share – basic

 

 

59,795,978

 

 

 

204,101,485

 

 

 

204,101,485

 

Ordinary share – diluted

 

 

68,395,489

 

 

 

216,264,202

 

 

 

216,264,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expenses included are follows:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

415

 

 

 

60

 

Selling and marketing

 

 

 

 

4,172

 

 

 

607

 

General and administrative

 

 

42,147

 

 

 

71,403

 

 

 

10,396

 

Research and development

 

 

6,428

 

 

 

38,221

 

 

 

5,565

 

Total

 

 

48,575

 

 

 

114,211

 

 

 

16,628