BEIJING, Aug. 18, 2020
/PRNewswire/ -- Huami Corporation ("Huami" or the "Company") (NYSE:
HMI) today reported revenue of RMB1.137
billion, or US$161.0 million;
GAAP diluted net income per share of RMB0.05
(US$0.01), or GAAP diluted net income
per ADS of RMB0.21 (US$0.03) for the second quarter ended
June 30, 2020.
"I am proud of our teams and our brands that generated revenue
growth of 9.5% in the second quarter and 21.1% for the first half
of 2020, with the challenges of the worldwide pandemic," said
Wang Huang, Chairman and CEO of
Huami. "New products introduced in the first half of the year,
including smartwatches, ear buds and other smart health devices
helped our growth, although the pandemic did alter the magnitude of
our and the industry's growth. Interest in our new smart health
devices and the recent success in the application of our
proprietary health data analysis tools for healthcare insurers and
providers give us confidence in our strategy, growth and future
guidance."
Second Quarter
2020 Financial Summary
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended
|
GAAP In millions,
except percentages and per share
amounts
|
|
June 30,
2020
|
June 30,
2019
|
|
June 30,
2020
|
June 30,
2019
|
Revenue
RMB
|
|
1,137.3
|
1,038.7
|
|
2,225.7
|
1,838.3
|
Revenue
USD
|
|
161.0
|
151.3
|
|
315.0
|
267.8
|
Gross
Margin
|
|
22.3%
|
26.7%
|
|
22.4%
|
26.9%
|
Net income
attributable to Huami
Corporation RMB
|
|
13.3
|
89.4
|
|
32.5
|
164.6
|
Adjusted net income
attributable to Huami
Corporation RMB[1]
|
|
19.1
|
111.7
|
|
44.7
|
206.7
|
|
|
|
|
|
|
|
Diluted net income
per share RMB
|
|
0.05
|
0.35
|
|
0.13
|
0.64
|
Diluted net income
per ADS USD
|
|
0.03
|
0.20
|
|
0.07
|
0.37
|
Adjusted diluted net
income per share RMB[2]
|
|
0.07
|
0.43
|
|
0.17
|
0.80
|
Adjusted diluted net
income per ADS USD
|
|
0.04
|
0.25
|
|
0.10
|
0.47
|
Units
Shipped
|
|
8.9
|
8.3
|
|
16.5
|
13.9
|
|
[1]
Adjusted net income attributable to Huami Corporation 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 diluted net income is the abbreviation of Adjusted net
income attributable to ordinary shareholders
of Huami Corporation, which is a non-GAAP measure and excludes
share-based compensation expenses
attributable to ordinary shareholders of Huami Corporation, and is
used as the numerator in computation of
adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of Huami Corporation.
|
Management's Discussion and Analysis
Overview
Huami's mission is to connect health with technology. Since its
inception in 2013, Huami has developed a platform of proprietary
technology including AI chips, biometric sensors, and data
algorithms, which drive a broadening line of smart health devices
for consumers, and analytics services for industry. Consumer health
devices are sold through a number of partner and direct channels in
more than 70 countries, at the end of the second quarter,
2020. We market products utilizing our proprietary technology
under own brand names, including Amazfit and Zepp. We also develop
and manufacture under a preferred partner agreement for Xiaomi
Corporation, which are sold under its own brand names, such as the
Mi Band. We provide our proprietary technology to Timex for several
of its smart watch offerings. To get full utility from our devices,
consumers synchronize their devices with our Amazfit app on
their phones to track their biometric data and utilize intelligent
algorithms to gain insights into their health or fitness.
Proprietary technology
In the second quarter, Huami announced the second generation of
its proprietary artificial intelligence smart device chip, the
Huangshan 2 which came to market 18 months after the introduction
of the first generation in September
2018. At the same time, we announced the next generation of
our proprietary biometric sensor and biometric algorithms that
monitor a variety of health metrics. Leveraging internally
developed advanced technology allows us to produce health and
fitness focused products at price/feature points that consumers in
many countries find attractive. New products employing the
Huangshan 2 chip are planned to become available in the first
quarter of 2021. New products added to our offerings in the first
half of 2020 include several new smart watches and fitness bands,
smart ear buds, and a collapsible treadmill.
Revenue
Total units shipped reached 8.9 million, compared with 8.3
million in the second quarter of 2019, a 7.2% increase. Second
quarter revenues reached RMB1,137.3
million (US$161.0 million),
representing an increase of 9.5% from the second quarter of
2019. The increase in the quarter was driven by sales both
through Xiaomi and Huami's self-branded wearable products. New
products, such as ear buds, demonstrated early consumer
acceptance.
Both sequential and year-over-year quarterly revenue changes can
be affected by seasonality of purchase patterns globally, as well as by
timing of new product introductions. For example, in the second
quarter 2020, the company's shipments of Xiaomi wearable products
were in a transition period with the launch of the Mi Band 5 in
late June. We expect our business cooperation with Xiaomi to
continue in the future.
Covid-19 Impact
Covid-19 continued to have a significant negative affect on
retail sales in all areas of the world, and in most product
categories, through the second quarter. For example, although
China recovered and opened many
retail establishments midway through the second quarter, a number
of Asian retailers reported that shoppers were slow to return,
depressing second quarter results. In the Americas and Europe, continued or resurging Covid infection
rates kept many stores closed, and also kept many shoppers out of
the stores. Many retailers reduced inventories and orders during
the second quarter. These all affected our second quarter
results.
Production delays due to the pandemic that slowed manufacture of
products in the first quarter have been resolved, with minimal
lingering impacts in the second quarter.
Looking forward, Huami is working with its channel partners
flexibly as they reevaluate or change their market strategies, such
as shifting focus to online sales and on-demand retail models.
While Huami has several direct online sales channels, the vast
majority of our revenue flows through these retail partner
channels.
Before the pandemic hit, industry expectations were for strong
demand and continued growth for smart health technology for many
years. Aside from the disruption and re-setting of consumer
purchasing method choices, we see no evidence to indicate that
megatrend has been materially changed. Whether by personal choice
or by encouragement from those who pay for our care, the world is
increasingly focused on improving health. In the nearer term, with
all the reports of people gaining weight during lockdowns, we think
there may be upticks in demand for smart health technology in
different geographies as people refocus on their health.
In addition, the company is engaged in research and development
related to detection of Covid-19 infection signals through its internal R&D team,
as well as with some of its university research partners.
Gross Margin
Gross margin in the second quarter 2020 was 22.3%, compared
with 26.7% in the year-ago second quarter. Gross margin and
gross profit are affected by product mix as different products have
different margin contributions, and these can change over the life
of a product. In the second quarter 2020, total gross margin was
positively affected by a higher percentage of Huami-branded
products, offset by higher quantities of lower margin products
shipped to Xiaomi, and, by discount promotions for some older
products in the transition to the new Mi Band 5.
Research & Development
Second quarter 2020 R&D expense was RMB117.2 million, increasing 25% year-over year,
and comprised 10.3% of revenue, compared to 9.0% in the year-ago
second quarter, reflecting personnel additions and expansion of
R&D activities for future products and new product categories,
including consumer products and analytics solutions for industry,
such as new products expected to be launched in the second half of
2020. Second quarter R&D expense was down 1% sequentially from
the first quarter 2020.
The company believes that smart R&D investment is key to its
ability to more rapidly develop and bring to market new smart
devices and analytics for consumers and industry. The company
expects to continue to make these investments in its future despite
the challenges posed by the Covid-19 pandemic.
Sales & Marketing
Sales and Marketing expense for the second quarter 2020 was
RMB71.3 million, increasing 76.6%
year-over-year, and comprised 6.3% of revenue, compared to 3.9% in
the year-ago quarter. Sales and Marketing expense is higher in 2020
reflecting the company's focus on expanding international markets
outside of China for its own
Amazfit-branded products, including increases in advertising and
promotional expenses for self-branded products during holiday sales
and promotional events and growth in personnel-related expenses. In
June, we organized our first AI Innovation convention to present
our current research result to the public and opened our first
Amazfit offline retail store in Beijing to offer domestic consumers the
opportunity to have a first-hand in person experience with our
products.
General & Administrative
Second quarter 2020 General and Administrative expense was
RMB55.4 million, increasing 8.6%
year-over-year, and comprised 4.9% of revenue, the same as the 2019
second quarter. The 10.4% increase in first-half G&A expense in
2020 compared to 2019 reflects primarily the increase in exchange
rate fluctuations, professional fees for business management, and
depreciation and amortization expenses, offset by the decrease of
share-based compensation.
Operating Income and Expenses
Total Operating Expense for the second quarter 2020 was
RMB244.0 million, up 31.7% from the
year-ago quarter, reflecting the investments in R&D, Sales and
Marketing and G&A described in the preceding sections. Total
operating expense represented 21.5% of revenue in the second
quarter 2020 compared to 17.8% in the year-ago quarter, and 20.6%
in Q1 2020.
Operating Income for the second quarter 2020 was RMB9.4 million, down 89.8% from RMB92.1 million in the year-ago quarter, driven
primarily by the year-over-year increases of 76.6% in Sales &
Marketing expense and 25.0% in R&D expense.
Liquidity and Capital Resources
At June 30, 2020, the Company had
cash and cash equivalents of RMB2,649.2
million (US$375.0 million),
compared with RMB1,803.1 million as
of December 31, 2019.
Second Quarter Operational Highlights
"In the first half of 2020, we expanded the breadth of our
product offerings," added Huang. "Our first half results reflect
our strong brand recognition, effective sales and marketing
strategy and superior value proposition. In the first quarter,
Amazfit branded products ranked fifth in global shipment volume
according to IDC's quarterly report and registered triple digit
unit sales growth in the US, Western
Europe, and Southeast Asia. And in the second quarter,
our overseas shipments held their ground in recovering global
markets with international versions of our products accounting for
47.9% of total unit shipments. Another achievement in the second
quarter was that we successful launched Mi-band 5, the fifth
generation in the popular product line, with strong early sales
momentum. We are also very excited with the upcoming release of our
new brand, Zepp, by which we target a more premier market and
expect to broaden our customer base substantially.
"These product launches are part of our continuous execution on
our mission, 'Connect Health with Technology.' In July, Huami's
wholly owned subsidiary, PAI Health, announced an agreement with
Prudential Corporation Asia to incorporate PAI Health's
science-backed activity metric into Prudential's Pulse digital
health app. This will provide new actionable heart health insights
to Prudential members across 11 markets in Asia.
"While the first half of 2020 was a challenging period for all
of us, we are proud of our performance in smart wearable product
shipments, and the strong execution of our health service strategy.
We are confident that our device shipment volume will continue to
climb in the second half of the year and we look forward to
delivering value to all of our stakeholders," concluded Mr.
Huang.
Outlook
For the third quarter of 2020, the management of the
Company currently expects:
- Net revenues to be between RMB2.1
billion and RMB2.15 billion,
which would represent an increase of approximately 12.9% to 15.6%
from RMB1.86 billion in the third
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
Tuesday, August 18, 2020 (8:00
p.m. Beijing Time on August 18, 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 one hours after the call
until August 25, 2020 by dialing:
US Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay
Passcode:
|
10146949
|
About Huami Corporation
Huami's mission is to connect health with technology. Since its
inception in 2013, Huami has developed a platform of proprietary
technology including AI chips, biometric sensors, and data
algorithms, which drive a broadening line of smart health products
for consumers, and analytics services for industry. In 2019, Huami
shipped 42.3 million units of smart wearable devices, including its
own Amazfit brand, and products developed and manufactured for
Xiaomi and Timex, comprising 26% of global category
shipments[3]. Huami
Corporation is based in Hefei,
China, with U.S. operations, Huami-USA, based in Cupertino, Calif. For more information, please
visit https://www.huami.com/investor/pages/company-profile.
[3] IDC,
Correcting and Replacing Shipments of Wearable Devices,
3/10/20
|
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 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 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
RMB7.0651 to US$1.00, the effective noon buying rate for
June 30, 2020 as set forth in the
H.10 statistical release of the Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
June 30, 2020, 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:
Huami Corporation
Brad Samson
Tel: +1-714-955-3951
E-mail: brad.samson@huami-usa.com
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of June
30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,803,117
|
|
2,649,185
|
|
374,968
|
Restricted
cash
|
|
874
|
|
2,304
|
|
326
|
Term
deposit
|
|
-
|
|
7,065
|
|
1,000
|
Accounts
receivable
|
|
188,940
|
|
136,039
|
|
19,255
|
Amounts due from
related parties, current
|
|
1,421,170
|
|
645,920
|
|
91,424
|
Inventories
|
|
893,806
|
|
840,224
|
|
118,926
|
Short-term
investments
|
|
17,187
|
|
17,805
|
|
2,520
|
Prepaid expenses and
other current assets
|
|
67,358
|
|
61,315
|
|
8,678
|
Total current
assets
|
|
4,392,452
|
|
4,359,857
|
|
617,097
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
64,350
|
|
96,372
|
|
13,641
|
Intangible asset,
net
|
|
85,753
|
|
123,498
|
|
17,480
|
Goodwill[4]
|
|
5,930
|
|
73,619
|
|
10,420
|
Long-term
investments
|
|
406,099
|
|
314,635
|
|
44,534
|
Deferred tax
assets
|
|
102,649
|
|
124,598
|
|
17,636
|
Other non-current
assets
|
|
8,828
|
|
15,834
|
|
2,241
|
Non-current operating
lease right-of-use assets
|
|
108,682
|
|
92,001
|
|
13,022
|
Total
assets
|
|
5,174,743
|
|
5,200,414
|
|
736,071
|
|
[4] In June
2020, the Company purchase the 100% equity interest of PAI Health,
Inc. ("PAI")
with a preliminary total consideration of RMB102.5 million. Under
the preliminary consideration, the Company
recognized RMB67.7 million provisional amount as
goodwill.
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of June
30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
1,999,951
|
|
1,176,344
|
|
166,501
|
Advance from
customers
|
|
44,793
|
|
42,752
|
|
6,051
|
Amount due to related
parties, current
|
|
14,769
|
|
16,116
|
|
2,281
|
Accrued expenses and
other current liabilities
|
|
352,249
|
|
254,353
|
|
36,001
|
Income tax
payables
|
|
67,854
|
|
26,578
|
|
3,762
|
Notes
payable
|
|
2,184
|
|
-
|
|
-
|
Bank
borrowings
|
|
-
|
|
881,436
|
|
124,759
|
Total current
liabilities
|
|
2,481,800
|
|
2,397,579
|
|
339,355
|
Deferred tax
liabilities
|
|
5,399
|
|
11,689
|
|
1,654
|
Other non-current
liabilities
|
|
113,596
|
|
174,509
|
|
24,700
|
Non-current operating
lease liabilities
|
|
76,360
|
|
63,937
|
|
9,050
|
Total
liabilities
|
|
2,677,155
|
|
2,647,714
|
|
374,759
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of June
30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
155
|
|
155
|
|
22
|
Additional paid-in
capital
|
|
1,478,902
|
|
1,491,115
|
|
211,054
|
Accumulated retained
earnings
|
|
910,612
|
|
943,087
|
|
133,485
|
Accumulated other
comprehensive income
|
|
111,081
|
|
121,920
|
|
17,257
|
Total Huami
Corporation shareholders' equity
|
|
2,500,750
|
|
2,556,277
|
|
361,818
|
Non-controlling
interests
|
|
(3,162)
|
|
(3,577)
|
|
(506)
|
Total
equity
|
|
2,497,588
|
|
2,552,700
|
|
361,312
|
Total liabilities
and equity
|
|
5,174,743
|
|
5,200,414
|
|
736,071
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
1,038,715
|
|
1,137,274
|
|
160,971
|
Cost of
revenues
|
|
761,421
|
|
883,891
|
|
125,107
|
Gross
profit
|
|
277,294
|
|
253,383
|
|
35,864
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
40,405
|
|
71,342
|
|
10,098
|
General and
administrative
|
|
51,030
|
|
55,423
|
|
7,845
|
Research and
development
|
|
93,751
|
|
117,207
|
|
16,590
|
Total operating
expenses
|
|
185,186
|
|
243,972
|
|
34,533
|
Operating
income
|
|
92,108
|
|
9,411
|
|
1,331
|
Other income and
expenses:
|
|
|
|
|
|
|
Interest
income
|
|
4,803
|
|
13,667
|
|
1,934
|
Other income,
net
|
|
4,351
|
|
1,137
|
|
161
|
Income before
income tax
|
|
101,262
|
|
24,215
|
|
3,426
|
Income tax
expenses
|
|
(12,352)
|
|
(2,486)
|
|
(352)
|
Income before loss
from equity method investments
|
|
88,910
|
|
21,729
|
|
3,074
|
Loss from equity
method investments
|
|
(265)
|
|
(7,611)
|
|
(1,077)
|
Net
income
|
|
88,645
|
|
14,118
|
|
1,997
|
Less: Net (loss)
income attributable to non-controlling interest
|
|
(719)
|
|
811
|
|
115
|
Net income
attributable to Huami Corporation
|
|
89,364
|
|
13,307
|
|
1,882
|
Less: Undistributed
earnings allocated to participating nonvested
restricted shares
|
|
190
|
|
-
|
|
-
|
Net income
attributable to ordinary shareholders of Huami
Corporation
|
|
89,174
|
|
13,307
|
|
1,882
|
Net income per
share attributable to ordinary
|
|
|
|
|
|
|
shareholders of
Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.37
|
|
0.05
|
|
0.01
|
Diluted income per
ordinary share
|
|
0.35
|
|
0.05
|
|
0.01
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
1.46
|
|
0.21
|
|
0.03
|
ADS –
diluted
|
|
1.39
|
|
0.21
|
|
0.03
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net
income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
243,596,530
|
|
247,828,507
|
|
247,828,507
|
Ordinary share –
diluted
|
|
257,455,618
|
|
259,364,320
|
|
259,364,320
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Three
Months Ended June 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
attributable to Huami Corporation
|
|
89,364
|
|
13,307
|
|
1,882
|
Share-based
compensation expenses
|
|
22,355
|
|
5,835
|
|
826
|
Adjusted net
income attributable to Huami
Corporation
|
|
111,719
|
|
19,142
|
|
2,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
of Huami Corporation
|
|
89,174
|
|
13,307
|
|
1,882
|
Share-based
compensation expenses attributable to
ordinary shareholders of Huami Corporation
|
|
22,307
|
|
5,835
|
|
826
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation[2]
|
|
111,481
|
|
19,142
|
|
2,708
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
0.46
|
|
0.08
|
|
0.01
|
Adjusted diluted
income per ordinary share
|
|
0.43
|
|
0.07
|
|
0.01
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
1.83
|
|
0.31
|
|
0.04
|
ADS –
diluted
|
|
1.73
|
|
0.30
|
|
0.04
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
243,596,530
|
|
247,828,507
|
|
247,828,507
|
Ordinary share –
diluted
|
|
257,455,618
|
|
259,364,320
|
|
259,364,320
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
37
|
|
(61)
|
|
(9)
|
Selling and
marketing
|
|
1,579
|
|
632
|
|
89
|
General and
administrative
|
|
14,973
|
|
3,833
|
|
543
|
Research and
development
|
|
5,766
|
|
1,431
|
|
203
|
Total
|
|
22,355
|
|
5,835
|
|
826
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
1,838,311
|
|
2,225,735
|
|
315,032
|
Cost of
revenues
|
|
1,343,554
|
|
1,727,792
|
|
244,553
|
Gross
profit
|
|
494,757
|
|
497,943
|
|
70,479
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
62,588
|
|
126,185
|
|
17,860
|
General and
administrative
|
|
96,322
|
|
106,306
|
|
15,047
|
Research and
development
|
|
166,131
|
|
235,543
|
|
33,339
|
Total operating
expenses
|
|
325,041
|
|
468,034
|
|
66,246
|
Operating
income
|
|
169,716
|
|
29,909
|
|
4,233
|
Other income and
expenses:
|
|
|
|
|
|
|
Interest
income
|
|
12,293
|
|
21,338
|
|
3,020
|
Other income
(expenses), net
|
|
4,813
|
|
(8,018)
|
|
(1,135)
|
Gain from fair value
change of long-term investment
|
|
-
|
|
1,293
|
|
183
|
Income before
income tax
|
|
186,822
|
|
44,522
|
|
6,301
|
Income tax
expenses
|
|
(23,034)
|
|
(4,519)
|
|
(640)
|
Income before loss
from equity method investments
|
|
163,788
|
|
40,003
|
|
5,661
|
Loss from equity
method investments
|
|
(231)
|
|
(7,943)
|
|
(1,124)
|
Net
income
|
|
163,557
|
|
32,060
|
|
4,537
|
Less: Net loss
attributable to non-controlling interest
|
|
(1,091)
|
|
(415)
|
|
(59)
|
Net income
attributable to Huami Corporation
|
|
164,648
|
|
32,475
|
|
4,596
|
Less: Undistributed
earnings allocated to participating nonvested restricted
shares
|
|
1,425
|
|
-
|
|
-
|
Net income
attributable to ordinary shareholders of Huami
Corporation
|
|
163,223
|
|
32,475
|
|
4,596
|
Net income per
share attributable to ordinary
|
|
|
|
|
|
|
shareholders of
Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.68
|
|
0.13
|
|
0.02
|
Diluted income per
ordinary share
|
|
0.64
|
|
0.13
|
|
0.02
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
2.71
|
|
0.52
|
|
0.07
|
ADS –
diluted
|
|
2.56
|
|
0.50
|
|
0.07
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net income per
share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
240,817,983
|
|
247,742,838
|
|
247,742,838
|
Ordinary share –
diluted
|
|
255,237,925
|
|
259,456,193
|
|
259,456,193
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
attributable to Huami Corporation
|
|
164,648
|
|
32,475
|
|
4,596
|
Share-based
compensation expenses
|
|
42,088
|
|
12,213
|
|
1,728
|
Adjusted net
income attributable to Huami
Corporation
|
|
206,736
|
|
44,688
|
|
6,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
of Huami Corporation
|
|
163,223
|
|
32,475
|
|
4,596
|
Share-based
compensation expenses attributable
to ordinary
shareholders of Huami Corporation
|
|
41,724
|
|
12,213
|
|
1,728
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation[2]
|
|
204,947
|
|
44,688
|
|
6,324
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
0.85
|
|
0.18
|
|
0.03
|
Adjusted diluted
income per ordinary share
|
|
0.80
|
|
0.17
|
|
0.02
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
3.40
|
|
0.72
|
|
0.10
|
ADS –
diluted
|
|
3.21
|
|
0.69
|
|
0.10
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
240,817,983
|
|
247,742,838
|
|
247,742,838
|
Ordinary share –
diluted
|
|
255,237,925
|
|
259,456,193
|
|
259,456,193
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
39
|
|
(54)
|
|
(8)
|
Selling and
marketing
|
|
1,910
|
|
1,264
|
|
179
|
General and
administrative
|
|
32,409
|
|
7,930
|
|
1,122
|
Research and
development
|
|
7,730
|
|
3,073
|
|
435
|
Total
|
|
42,088
|
|
12,213
|
|
1,728
|
View original
content:http://www.prnewswire.com/news-releases/huami-corporation-reports-second-quarter-2020-unaudited-financial-results-301113834.html
SOURCE Huami Corporation