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 March 2019

 

 

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: March 15, 2019


 


 

Exhibit Index

 

Exhibit 99.1 – Press Release

 

 

 

hmi-ex991_6.htm

Exhibit 99.1

 

Huami Corporation Reports Fourth Quarter and Full Year 2018 Unaudited Financial Results

Quarterly Revenues up 62.7% Year-over-Year, Exceeding Guidance Range

Full Year Revenues up 77.9% Year-over-Year to RMB3,645.3 Million

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

Revenues1 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 American depositary share ("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 Corporation2 was RMB146.5 million (US$21.3 million), up 69.3% from 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.

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 to 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