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 2020

 


 

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  o

 

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):    o

 

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):    o

 

 

 


 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

2


 

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 16, 2020

 

3


Exhibit 99.1

 

Huami Corporation Reports Fourth Quarter and Full Year 2019 Unaudited Financial Results

 

Quarterly Revenues up 72.4% to RMB2,111.4 Million, and Shipments up 59.8% YoY

 

Annually Revenues up 59.4% to RMB5,812.3 Million, and Shipments up 53.8% YoY

 

BEIJING, March 13, 2020 /PRNewswire/ — Huami Corporation (“Huami” or the “Company”) (NYSE: HMI), a cloud-based healthcare services provider with world-leading smart wearable technology, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2019.

 

Fourth Quarter 2019 Financial and Operating Highlights

 

·                  Revenues reached RMB2,111.4 million (US$303.3 million), representing an increase of 72.4% from the fourth quarter of 2018.

 

·                  Gross margin was 23.8%, compared with 25.2% for the fourth quarter of 2018.

 

·                  Net income attributable to Huami Corporation was RMB207.2 million (US$29.8 million), compared with RMB126.0 million for the fourth quarter of 2018.

 

·                  Basic and diluted net income per American depositary share (“ADS”) attributable to ordinary shareholders of Huami Corporation was RMB3.36 (US$0.48) and RMB3.21 (US$0.46), respectively. Each ADS represents four (4) Class A ordinary shares.

 

·                  Adjusted net income attributable to Huami Corporation1 was RMB213.8 million (US$30.7 million).

 

·                  Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation2 was RMB3.46 (US$0.50) and RMB3.31 (US$0.48), respectively. Each ADS represents four (4) Class A ordinary shares.

 

·                  Total units shipped reached 14.7 million, compared with 9.2 million in the fourth quarter of 2018.

 

Full Year 2019 Financial and Operating Highlights

 

·                  Revenues reached RMB5,812.3 million (US$834.9 million), representing an increase of 59.4% from the full year 2018.

 

·                  Gross margin was 25.3%, compared with 25.8% for the full year 2018.

 

·                  Net income attributable to Huami Corporation was RMB575.2 million (US$82.6 million), compared with RMB340.0 million for the full year 2018.

 


1  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.

2  Adjusted net income attributable to ordinary shareholders of Huami Corporation is a non-GAAP measure, which excludes share-based compensation expenses attributable to ordinary shareholders of Huami Corporation and deemed dividend for preferred shares, and is used as the numerator in computation of adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation.

 


 

·                  Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB9.40 (US$1.35) and RMB8.95 (US$1.29), respectively. Each ADS represents four (4) Class A ordinary shares.

 

·                  Adjusted net income attributable to Huami Corporation was RMB630.3 million (US$90.5 million), up 32.8% from the full year 2018.

 

·                  Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB10.30 (US$1.48) and RMB9.81 (US$1.41), respectively, compared with RMB8.39 and RMB7.59, respectively, for the full year 2018. Each ADS represents four (4) Class A ordinary shares.

 

·                  Total units shipped reached 42.3 million, compared with 27.5 million in the full year 2018.

 

“2019 was an outstanding year for Huami marked by accelerated growth, strengthening brand recognition, and robust financial and operational results, as we solidified our leadership position in the global smart wearables industry” said Wang Huang, Chairman and CEO. “In the fourth quarter, we achieved healthy revenue and net income growth, driven by successful new product launches, effective sales and marketing outreach, and our successful efforts to expand internationally through a multi-channel strategy comprised of direct sales and third-party sales channels. In addition, we collaborated closely with Timex on product development, and the product has been launched into the market, while our partnership with Xiaomi continued, leading to the Mi-Band 5’s expected release in 2020.

 

“Most significantly, we started the initial phases of several exciting new business initiatives, including ear buds and interactive treadmills, marking a new chapter for our Company. By creating new product categories, we are further expanding our products and services offerings beyond current smart wearables, which will ultimately dovetail with our vision of a future centering around health and fitness services. Healthcare has always been a focus for the Company since Huami was founded in 2013. With our established corporate mission of ‘Connect Health with Technology,’ we will continue focusing on healthcare related functionalities through the development of our smart devices, proprietary AI-chip and healthcare services. Despite the COVID-19 virus outbreak that posted world-wide challenges and affected parts of our supply chain, we and our supply chain partners have gradually resumed normal operations since mid-February. We are confident that our growth initiatives coupled with our strong sales and marketing capabilities, will help us achieve another successful year in 2020.”

 

David Cui, Chief Financial Officer, added, “In the fourth quarter of 2019, the Company continued its trend of strong growth momentum, driven by robust unit sales of both self-branded products and Mi-Band 4, most notably during the Double 11 shopping festival this year. We shipped 14.7 million units in the fourth quarter, representing a 59.8% growth from the same quarter last year. Our revenues and net income, attributed to Huami Corporation, increased by 72.4% and 64.5% year-over-year respectively, demonstrating growing brand awareness and adoption of our products by users.

 


 

“During the fourth quarter, we continued investing in R&D for innovative products and strengthened our sales and marketing strategy to promote our Amazfit brand. While we do anticipate some impact on first quarter results from the recent nationwide COVID-19 outbreak, we are confident we can sustain growth and profitability in 2020 and beyond through new product initiatives, collaborative opportunities, global expansion, and balanced operational expense control.”

 

Fourth Quarter 2019 Financial Results

 

Revenues increased by 72.4% to RMB2,111.4 million (US$303.3 million) from RMB1,224.6 million for the fourth quarter of 2018, driven by continued sales growth of Xiaomi and self-branded wearable products, an increase in overall brand recognition and the global rise in the adoption of smart wearable products.

 

Cost of revenues increased by 75.7% to RMB1,608.3 million (US$231.0 million) from RMB915.6 million for the fourth quarter of 2018. The increase was in line with the sales growth of Xiaomi and self-branded wearable products.

 

Gross profit increased by 62.8% to RMB503.1 million (US$72.3 million) from RMB309.0 million for the fourth quarter of 2018. Gross margin of 23.8% for the fourth quarter of 2019, compared with 25.2% for the fourth quarter of 2018.

 

Total operating expenses increased to RMB285.5 million (US$41.0 million) from RMB177.8 million for the fourth quarter of 2018.

 

Research and development expenses increased by 64.8% to RMB140.2 million (US$20.1 million) from RMB85.1 million for the fourth quarter of 2018, primarily due to an increase in the number of R&D staff and a rise in testing costs associated with the pipeline products.

 

General and administrative expenses increased by 29.1% to RMB82.6  million (US$11.9 million) from RMB63.9 million for the fourth quarter of 2018, primarily due to an increase in professional fees related to improve operation management and business expansion, and personnel-related expenses, offsetting by a decrease in share-based compensation.

 

Selling and marketing expenses increased by 118.3% to RMB62.8 million (US$9.0 million) from RMB28.8 million for the fourth quarter of 2018, primarily due to an increase in advertising and promotional expenses for self-branded products during the holiday sales and promotional events and growth in personnel-related expenses.

 


 

Operating income was RMB217.7 million (US$31.3 million), compared with RMB131.2 million for the fourth quarter of 2018.

 

Income before income tax was RMB237.5 million (US$34.1 million), compared with RMB139.4 million for the fourth quarter of 2018.

 

Income tax expenses were RMB27.3 million (US$3.9 million), compared with RMB12.3 million for the fourth quarter of 2018.

 

Net income attributable to Huami Corporation totaled RMB207.2 million (US$29.8 million), compared with RMB126.0 million for the fourth quarter of 2018.

 

Net income attributable to ordinary shareholders of Huami Corporation increased to RMB207.2 million (US$29.8 million), compared with RMB122.4 million for the fourth quarter of 2018.

 

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB3.36 (US$0.48) and RMB3.21 (US$0.46), respectively. Each ADS represents four (4) Class A ordinary shares.

 

Adjusted net income attributable to Huami Corporation, which excludes share-based compensation expenses, increased by 46.0% to RMB213.8 million (US$30.7 million) from RMB146.5 million for the fourth quarter of 2018.

 

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB3.46 (US$0.50) and RMB3.31 (US$0.48), respectively. Each ADS represents four (4) Class A ordinary shares.

 

As of December 31, 2019, the Company had cash and cash equivalents of RMB1,803.1 million (US$259.0 million), compared with RMB1,441.8 million as of December 31, 2018.

 


 

Full Year 2019 Financial Results

 

Revenues increased by 59.4% to RMB5,812.3 million (US$834.9 million) from RMB3,645.3 million for the full year 2018, due to the growth of Xiaomi and self-branded wearable products, an increase in overall brand recognition and the global rise in the adoption of smart wearable products.

 

Cost of revenues increased by 60.6% to RMB4,344.5 million (US$624.1 million) from RMB2,705.9 million for the full year 2018. The increase was in line with accelerating sales growth of both Xiaomi and self-branded wearable products.

 

Gross profit increased by 56.2% to RMB1,467.7 million (US$210.8 million) from RMB939.5 million for the full year 2018. Gross margin decreased to 25.3% from 25.8% for the full year 2018.

 

Total operating expenses increased to RMB861.3 million (US$123.7 million) from RMB573.7 million for the full year 2018.

 

Research and development expenses increased by 63.7% to RMB430.8 million (US$61.9 million) from RMB263.2 million for the full year 2018, primarily due to an increase in personnel-related expenses and a rise in testing costs associated with the pipeline products, offsetting by the decrease of share-based compensation.

 

General and administrative expenses increased by 16.1% to RMB248.5 million (US$35.7 million) from RMB214.0 million for the full year 2018, primarily due to an increase in personnel-related expenses, professional fees related to improve management operation and business expansion, offsetting by the decrease of share-based compensation.

 

Selling and marketing expenses increased by 88.5% to RMB182.0 million (US$26.1 million) from RMB96.5 million for the full year 2018, primarily due to an increase in advertising and promotional expenses for self-branded products in domestic and overseas market as well as personnel-related expenses.

 

Operating income was RMB606.5 million (US$87.1 million), compared with RMB365.7 million for the full year 2018.

 

Income before income tax was RMB652.4 million (US$93.7 million), compared with RMB386.6 million for the full year 2018.

 

Income tax expenses were RMB77.9 million (US$11.2 million), compared with RMB52.0 million for the full year 2018.

 


 

Net income attributable to Huami Corporation totaled RMB575.2 million (US$82.6 million), compared with RMB340.0 million for the full year 2018.

 

Net income attributable to ordinary shareholders of Huami Corporation improved to RMB572.7 million (US$82.3 million), compared with RMB113.5 million for the full year of 2018, which included the impact of deemed dividend to preferred shareholders.

 

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB9.40 (US$1.35) and RMB8.95 (US$1.29), respectively. Each ADS represents four (4) Class A ordinary shares.

 

Adjusted net income attributable to Huami Corporation, which excludes share-based compensation expenses, increased by 32.8% to RMB630.3 million (US$90.5 million) from RMB474.8 million for the full year 2018.

 

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB10.30 (US$1.48) and RMB9.81 (US$1.41), respectively, compared with RMB8.39 and RMB7.59, respectively, for the full year 2018. Each ADS represents four (4) Class A ordinary shares.

 

Outlook

 

For the first quarter of 2020, the management of the Company currently expects:

 

·                  Net revenues to be between RMB980.0 million and RMB1,010.0 million, which would represent an increase of approximately 22.6% to 26.3% from RMB799.6 million for the first quarter of 2019.

 

The above outlook is based on the current market conditions and reflects the 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 Standard Time on Friday, March 13, 2020 (8:00 p.m. Beijing Time on March 13, 2020) 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 two hours after the call until March 20, 2020 by dialing:

 

US Toll Free:

1-877-344-7529

International:

1-412-317-0088

Replay Passcode:

10139897

 

About Huami Corporation

 

Huami is a cloud-based healthcare services provider with world-leading 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 2019, Huami shipped 42.3 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. Adjusted net income attributable to ordinary shareholders of Huami Corporation is a non-GAAP measure, which excludes share-based compensation expenses attributable to ordinary shareholders of Huami Corporation and deemed dividend for preferred shares, and is used as the numerator in computation of adjusted net income per share attributable to ordinary shareholders of Huami Corporation .

 

We believe that adjusted net income and adjusted net income attributable to ordinary shareholders help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses and deemed dividend that we include in net income and net income attributable to ordinary shareholders. We believe that adjusted net income and adjusted net income attributable to ordinary shareholders 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 and adjusted net income attributable to ordinary shareholders, 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 and adjusted net income attributable to ordinary shareholders, 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 RMB6.9618 to US$1.00, the effective noon buying rate for December 31, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2019, 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

E-mail: ir@huami.com

 

The Piacente Group, Inc.

Ross Warner

Tel: +86-10-6508-0677

E-mail: huami@tpg-ir.com

 

In the United States:

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,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

1,441,802

 

1,803,117

 

259,002

 

Restricted cash

 

10,010

 

874

 

126

 

Term deposit

 

96,969

 

 

 

Accounts receivable

 

58,925

 

188,940

 

27,140

 

Amounts due from related parties, current

 

656,399

 

1,421,170

 

204,138

 

Inventories

 

484,622

 

893,806

 

128,387

 

Short-term investments

 

50,482

 

17,187

 

2,469

 

Prepaid expenses and other current assets

 

58,247

 

67,358

 

9,675

 

Total current assets

 

2,857,456

 

4,392,452

 

630,937

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

40,042

 

64,350

 

9,243

 

Intangible asset, net

 

63,722

 

85,753

 

12,318

 

Goodwill

 

5,930

 

5,930

 

852

 

Long-term investments

 

208,949

 

406,099

 

58,332

 

Deferred tax assets

 

75,032

 

102,649

 

14,745

 

Other non-current assets

 

7,350

 

8,828

 

1,268

 

Non-current operating lease right-of-use assets

 

 

108,682

 

15,611

 

Total assets

 

3,258,481

 

5,174,743

 

743,306

 

 


 

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,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Liabilities

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

1,064,106

 

1,999,951

 

287,275

 

Advance from customers

 

5,943

 

44,793

 

6,434

 

Amount due to related parties, current

 

10,695

 

14,769

 

2,121

 

Accrued expenses and other current liabilities

 

213,975

 

319,450

 

45,887

 

Income tax payables

 

54,037

 

67,854

 

9,747

 

Notes payable

 

18,936

 

2,184

 

314

 

Bank borrowings

 

20,000

 

 

 

Current operating lease liabilities

 

 

32,799

 

4,711

 

Total current liabilities

 

1,387,692

 

2,481,800

 

356,489

 

Deferred tax liabilities

 

4,962

 

5,399

 

776

 

Other non-current liabilities

 

56,249

 

113,596

 

16,317

 

Non-current operating lease liabilities

 

 

76,360

 

10,968

 

Total liabilities

 

1,448,903

 

2,677,155

 

384,550

 

 


 

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,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Equity

 

 

 

 

 

 

 

Ordinary shares

 

151

 

155

 

22

 

Additional paid-in capital

 

1,373,577

 

1,478,902

 

212,431

 

Accumulated retained earnings

 

340,046

 

910,612

 

130,801

 

Accumulated other comprehensive income

 

97,141

 

111,081

 

15,956

 

Total Huami Corporation shareholders’ equity

 

1,810,915

 

2,500,750

 

359,210

 

Non-controlling interests

 

(1,337

)

(3,162

)

(454

)

Total equity

 

1,809,578

 

2,497,588

 

358,756

 

Total liabilities and equity

 

3,258,481

 

5,174,743

 

743,306

 

 


 

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,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Revenues

 

1,224,569

 

2,111,413

 

303,286

 

Cost of revenues

 

915,574

 

1,608,288

 

231,016

 

Gross profit

 

308,995

 

503,125

 

72,270

 

Operating expenses:

 

 

 

 

 

 

 

Selling and marketing

 

28,753

 

62,756

 

9,014

 

General and administrative

 

63,929

 

82,562

 

11,859

 

Research and development

 

85,069

 

140,153

 

20,132

 

Total operating expenses

 

177,751

 

285,471

 

41,005

 

Operating income

 

131,244

 

217,654

 

31,265

 

Other income and expenses:

 

 

 

 

 

 

 

Realized gain from investment

 

261

 

1,822

 

262

 

Interest income

 

6,572

 

10,274

 

1,476

 

Other income (expenses), net

 

(6,536

)

7,744

 

1,112

 

Gain from fair value change of long-term investment

 

7,860

 

 

 

Income before income tax

 

139,401

 

237,494

 

34,115

 

Income tax expenses

 

(12,323

)

(27,335

)

(3,926

)

Income before loss from equity method investments

 

127,078

 

210,159

 

30,189

 

Loss from equity method investments

 

(1,920

)

(3,759

)

(540

)

Net income

 

125,158

 

206,400

 

29,649

 

Less: Net loss attributable to non-controlling interest

 

(794

)

(811

)

(116

)

Net income attributable to Huami Corporation

 

125,952

 

207,211

 

29,765

 

Less: Accretion of Series A Preferred Shares

 

 

 

 

Less: Accretion of Series B-1 Preferred Shares

 

 

 

 

Less: Accretion of Series B-2 Preferred Shares

 

 

 

 

Less: Deemed Dividend for Preferred Shares

 

 

 

 

Less: Undistributed earnings allocated to participating nonvested restricted shares

 

3,573

 

 

 

Net income attributable to ordinary shareholders of Huami Corporation

 

122,379

 

207,211

 

29,765

 

Net income per share attributable to ordinary  shareholders of Huami Corporation

 

 

 

 

 

 

 

Basic income per ordinary share

 

0.52

 

0.84

 

0.12

 

Diluted income per ordinary share

 

0.49

 

0.80

 

0.12

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

ADS — basic

 

2.08

 

3.36

 

0.48

 

ADS — diluted

 

1.97

 

3.21

 

0.46

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing net income per share

 

 

 

 

 

 

 

Ordinary share — basic

 

234,818,943

 

246,929,507

 

246,929,507

 

Ordinary share — diluted

 

248,271,059

 

258,484,867

 

258,484,867

 

 


 

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,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Net income attributable to Huami Corporation

 

125,952

 

207,211

 

29,765

 

Share-based compensation expenses

 

20,498

 

6,549

 

940

 

Adjusted net income attributable to Huami  Corporation

 

146,450

 

213,760

 

30,705

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Net income attributable to ordinary shareholders of Huami Corporation

 

122,379

 

207,211

 

29,765

 

Share-based compensation expenses attributable to ordinary shareholders of Huami Corporation

 

19,916

 

6,549

 

940

 

Adjusted net income attributable to ordinary  shareholders of Huami Corporation2

 

142,295

 

213,760

 

30,705

 

 

 

 

 

 

 

 

 

Adjusted net income per share attributable to  ordinary shareholders of Huami Corporation

 

 

 

 

 

 

 

Adjusted basic income per ordinary share

 

0.61

 

0.87

 

0.12

 

Adjusted diluted income per ordinary share

 

0.57

 

0.83

 

0.12

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

ADS — basic

 

2.42

 

3.46

 

0.50

 

ADS — diluted

 

2.30

 

3.31

 

0.48

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in  computing net income per share

 

 

 

 

 

 

 

Ordinary share — basic

 

234,818,943

 

246,929,507

 

246,929,507

 

Ordinary share — diluted

 

248,271,059

 

258,484,867

 

258,484,867

 

 

 

 

 

 

 

 

 

Share-based compensation expenses included  are follows:

 

 

 

 

 

 

 

Cost of revenues

 

 

8

 

1

 

Selling and marketing

 

100

 

641

 

92

 

General and administrative

 

16,452

 

4,145

 

595

 

Research and development

 

3,946

 

1,755

 

252

 

Total

 

20,498

 

6,549

 

940

 

 


 

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 December 31,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Revenues

 

3,645,335

 

5,812,255

 

834,878

 

Cost of revenues

 

2,705,885

 

4,344,512

 

624,050

 

Gross profit

 

939,450

 

1,467,743

 

210,828

 

Operating expenses:

 

 

 

 

 

 

 

Selling and marketing

 

96,538

 

181,975

 

26,139

 

General and administrative

 

213,973

 

248,462

 

35,689

 

Research and development

 

263,220

 

430,822

 

61,884

 

Total operating expenses

 

573,731

 

861,259

 

123,712

 

Operating income

 

365,719

 

606,484

 

87,116

 

Other income and expenses:

 

 

 

 

 

 

 

Realized gain from investment

 

261

 

1,822

 

262

 

Interest income

 

11,595

 

33,478

 

4,809

 

Other income, net

 

1,178

 

10,586

 

1,521

 

Gain from fair value change of long-term investment

 

7,860

 

 

 

Income before income tax

 

386,613

 

652,370

 

93,708

 

Income tax expenses

 

(52,036

)

(77,887

)

(11,188

)

Income before loss from equity method investments

 

334,577

 

574,483

 

82,520

 

Income (Loss) from equity method investments

 

1,743

 

(1,112

)

(160

)

Net income

 

336,320

 

573,371

 

82,360

 

Less: Net loss attributable to non-controlling interest

 

(3,726

)

(1,825

)

(262

)

Net income attributable to Huami Corporation

 

340,046

 

575,196

 

82,622

 

Less: Accretion of Series A Preferred Shares

 

177

 

 

 

Less: Accretion of Series B-1 Preferred Shares

 

368

 

 

 

Less: Accretion of Series B-2 Preferred Shares

 

4,049

 

 

 

Less: Deemed Dividend for Preferred Shares

 

209,752

 

 

 

Less: Undistributed earnings allocated to participating nonvested restricted shares

 

12,210

 

2,450

 

352

 

Net income attributable to ordinary shareholders of Huami Corporation

 

113,490

 

572,746

 

82,270

 

Net income per share attributable to ordinary  shareholders of Huami Corporation

 

 

 

 

 

 

 

Basic income per ordinary share

 

0.54

 

2.35

 

0.34

 

Diluted income per ordinary share

 

0.51

 

2.24

 

0.32

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

ADS — basic

 

2.14

 

9.40

 

1.35

 

ADS — diluted

 

2.03

 

8.95

 

1.29

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing net income per share

 

 

 

 

 

 

 

Ordinary share — basic

 

211,873,704

 

243,648,186

 

243,648,186

 

Ordinary share — diluted

 

225,034,650

 

255,959,172

 

255,959,172

 

 


 

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 December 31,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Net income attributable to Huami Corporation

 

340,046

 

575,196

 

82,622

 

Share-based compensation expenses

 

134,709

 

55,128

 

7,918

 

Adjusted net income attributable to Huami  Corporation

 

474,755

 

630,324

 

90,540

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

Net income attributable to ordinary shareholders of Huami Corporation

 

113,490

 

572,746

 

82,270

 

Share-based compensation expenses attributable to ordinary shareholders of Huami Corporation

 

120,934

 

54,893

 

7,884

 

Deemed Dividend for Preferred shares

 

209,752

 

 

 

Adjusted net income attributable to ordinary  shareholders of Huami Corporation2

 

444,176

 

627,639

 

90,154

 

 

 

 

 

 

 

 

 

Adjusted net income per share attributable to  ordinary shareholders of Huami Corporation

 

 

 

 

 

 

 

Adjusted basic income per ordinary share

 

2.10

 

2.58

 

0.37

 

Adjusted diluted income per ordinary share

 

1.90

 

2.45

 

0.35

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

ADS — basic

 

8.39

 

10.30

 

1.48

 

ADS — diluted

 

7.59

 

9.81

 

1.41

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in  computing net income per share

 

 

 

 

 

 

 

Ordinary share — basic

 

211,873,704

 

243,648,186

 

243,648,186

 

Ordinary share — diluted

 

225,034,650

 

255,959,172

 

255,959,172

 

 

 

 

 

 

 

 

 

Share-based compensation expenses included  are follows:

 

 

 

 

 

 

 

Cost of revenues

 

414

 

55

 

8

 

Selling and marketing

 

4,271

 

3,198

 

459

 

General and administrative

 

87,857

 

40,684

 

5,844

 

Research and development

 

42,167

 

11,191

 

1,607

 

Total

 

134,709

 

55,128

 

7,918