BEIJING, Nov. 26, 2018
/PRNewswire/ -- Huami Corporation ("Huami" or the "Company") (NYSE:
HMI), a biometric and activity data-driven company with significant
expertise in smart wearable technology, today announced its
unaudited financial results for the third quarter ended
September 30, 2018.
Third Quarter 2018 Financial and Operating
Highlights
- Revenues[1] reached RMB1,074.7 million (US$156.5 million), representing an increase of
126.7% from the third quarter of 2017.
- Gross margin was 26.7%, no material change from the
third quarter of 2017.
- Net income attributable to Huami Corporation was
RMB113.8 million (US$16.6 million), compared with RMB50.2 million for the third quarter of
2017.
- Adjusted net income attributable to Huami
Corporation[2] was RMB134.2
million (US$19.5 million), up
93.1% from the third quarter of 2017.
- Adjusted basic and diluted net income per American
depositary share ("ADS") attributable to ordinary shareholders of
Huami Corporation was RMB2.23 (US$0.32)
and RMB2.11 (US$0.31), respectively, compared with
RMB1.27 and RMB1.22, respectively, for the third quarter of
2017. Each ADS represents four (4) Class A ordinary shares.
- Total units shipped reached 8.2 million, compared with
3.9 million in the third quarter of 2017.
First Nine Months of 2018 Financial and Operating
Highlights
- Revenues reached RMB2,420.8
million (US$352.5 million),
representing an increase of 86.8% from the first nine months of
2017.
- Gross margin reached 26.0%, increasing from 25.3% for
the first nine months of 2017.
- Net income attributable to Huami Corporation was
RMB214.1 million (US$31.2 million), compared with RMB95.4 million in the first nine months of
2017.
- Adjusted net income attributable to Huami Corporation
was RMB328.3 million (US$47.8 million), up 128.1% from the first nine
months of 2017.
- Adjusted basic and diluted net income per ADS attributable
to ordinary shareholders of Huami Corporation was RMB5.92 (US$0.86)
and RMB5.30 (US$0.77), respectively, compared with
RMB2.44 and RMB2.33, respectively, for the first nine months
of 2017. Each ADS represents four (4) Class A ordinary shares.
- Total units shipped reached 18.3 million, compared with
11.6 million in the first nine months of 2017.
[1] The Group adopted ASC 606 by
using modified retrospective method since January 1,
2018.
|
[2] Adjusted net income is a non-GAAP
measure, which excludes share-based compensation expenses. See
"Reconciliation of GAAP and Non-GAAP Results" at the end of this
press release.
|
"Our third quarter results reflect our strong and growing market
position and the enthusiastic reception of our products across the
global smart wearables market," said Wang Huang, Chairman and
CEO. "We were particularly pleased with the revenue growth we
experienced in overseas markets, especially strong sales in the
emerging markets as we executed focused sales strategies in these
markets. We continue to develop cutting-edge products whose
features excite and benefit consumers. During the quarter we
launched a new generation Amazfit Health Band 1S, which allows us
to provide cloud-based health monitoring services to users, future
empowered by our newly developed Huangshan-1 AI Chip. We also
introduced a new smartwatch, Amazfit Verge, that fully integrates
with the Xiaomi IOT system via
Xiao'ai intelligent voice assistant and we will further
explore wearable technology scenarios in IOT industries. Meanwhile,
the new Xiaomi-branded product Mi Band 3 along with its NFC version
(with access to public transportation in 160+ cities), is
experiencing a strong sales momentum, which also drove our growth
of this quarter. The newly launched products and technologies
create a foundation for our continued leadership in the development
of advanced products in the smart wearables industry. We are
excited to continue our growth and strengthen our market position
through robust research and product development, including
expansion of our value-added services, and the continued
exploration of new markets and partners around the globe."
David Cui, Chief Financial
Officer, said, "Strong year-over-year revenue growth of 126.7%
supported continued improvement in our profit as we enjoy the
benefits of our growing scale. Revenue generated from self-branded
products grew to 34.5% of the total revenue for the first nine
month sales and international version sales contributed 42.7% of
the total shipment for the third quarter. We shipped 8.2 million
units in the quarter, up 110.3% from the third quarter of 2017,
driven by strong market reception for our Amazfit products and
continued strong sales of the Mi Band 3 that was launched in the
second quarter of 2018. Our growing share of the global smart
wearables market, combined with strong alliances with industry
leaders and solid momentum on many fronts, gives us confidence in
our outlook for the fourth quarter and positions us well as we head
into 2019."
Third Quarter 2018 Financial Results
Revenues increased by 126.7% to RMB1,074.7 million (US$156.5 million) from RMB474.1 million for the third quarter of 2017,
primarily due to the increase in the sales of Xiaomi wearable
products and self-branded products, driven by increasing market
recognition of our products.
Cost of revenues increased by 126.9% to RMB787.8 million (US$114.7
million) from RMB347.2 million
for the third quarter of 2017. The increase was in line with the
rapid sales growth of Xiaomi wearable products and self-branded
products.
Gross profit increased by 126.1% to RMB286.9 million (US$41.8
million) from RMB126.9 million
for the third quarter of 2017. Gross margin of 26.7% was in line
with the third quarter of 2017.
Total operating expenses increased by 121.0% to
RMB160.3 million (US$23.3 million) from RMB72.5 million for the third quarter of
2017.
Research and development expenses increased by 70.1%
to RMB60.0 million (US$8.7
million) from RMB35.2 million for the third
quarter of 2017, primarily due to the increase in R&D personnel
expenses and the recruitment of new employees.
General and administrative expenses increased by
148.3% to RMB68.0 million (US$9.9
million) from RMB27.4 million for the third
quarter of 2017, primarily due to the increase in personnel-related
cost, the foreign exchange rate fluctuation, and the professional
service fees associated with business expansion and being a public
company.
Selling and marketing expenses increased by 226.8%
to RMB32.3 million (US$4.7
million) from RMB9.9 million for the third quarter
of 2017, primarily due to an increase in advertisement promotion
expenses for self-branded products, and an increase in salary
compensation.
Operating income was RMB126.6
million (US$18.4 million),
compared with RMB54.4
million for the third quarter of 2017.
Income before income tax was RMB129.4
million (US$18.8 million),
compared with RMB57.7
million for the third quarter of 2017.
Income tax expenses were RMB21.1
million (US$3.1 million),
compared with RMB7.5 million for the third quarter of
2017.
Net income attributable to Huami
Corporation totaled RMB113.8
million (US$16.6 million),
compared with RMB50.2 million for the third quarter of
2017.
Net income attributable to ordinary shareholders of Huami
Corporation increased to RMB109.1
million (US$15.9 million),
compared with RMB14.8 million for the third quarter of
2017.
Basic and diluted net income per ADS attributable to ordinary
shareholders of
Huami Corporation was RMB1.89 (US$0.28) and RMB1.79 (US$0.26),
respectively, compared with RMB0.85 and RMB0.82,
respectively, for the third quarter of 2017. Each ADS represents
four (4) Class A ordinary shares.
Adjusted net income attributable to Huami Corporation,
which excludes share-based compensation expenses, increased by
93.1% to RMB134.2 million (US$19.5
million) from RMB69.5 million for the third
quarter of 2017.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of
Huami Corporation was RMB2.23(US$0.32) and RMB2.11 (US$0.31),
respectively, compared with RMB1.27 and RMB1.22,
respectively, for the third quarter of 2017. Each ADS represents
four (4) Class A ordinary shares.
As of September 30, 2018, the Company had cash and cash
equivalents of RMB967.4 million (US$140.9 million), compared with RMB366.3
million as of December 31, 2017.
First Nine Months of 2018 Financial Results
Revenues increased by 86.8% to RMB2,420.8 million (US$352.5 million) from RMB1,296.2 million for the first nine months of
2017, due to the increase in shipment volume of both Xiaomi
wearable products and self-branded products and others, driven by
increasing market recognition of our products.
Cost of revenues increased by 84.9% to RMB1,790.3 million (US$260.7 million) from RMB968.4 million for the first nine months of
2017. The increase was in line with the rapid sales growth of
Xiaomi wearable products and self-branded products.
Gross profit increased by 92.3% to RMB630.5 million (US$91.8
million) from RMB327.9 million
for the first nine months of 2017. Gross margin increased to 26.0%
from 25.3% for the first nine months of 2017. The increase was
driven by improved economies of scale and the rapid growth in sales
of self-branded products.
Total operating expenses increased by 79.4% to
RMB396.0 million (US$57.7 million) from RMB220.7 million for the first nine months of
2017. The Company's successful IPO and the amendment of certain
vesting schedules of previously granted options triggered an
acceleration of expense recognition in the first nine months of
2018. Excluding share-based compensation expenses, the increase is
primarily due to an increase in personnel-related costs,
advertisement promotion expenses, and professional service
fees.
Research and development expenses increased by 64.1%
to RMB178.2 million (US$25.9
million) from RMB108.6 million for the first nine
months of 2017, primarily due to the increase in R&D personnel
expenses and the recruitment of new employees.
General and administrative expenses increased by
81.9% to RMB150.0 million (US$21.8
million) from RMB82.5 million for the first nine
months of 2017, primarily due to the increase in personnel-related
cost and professional fees to meet the need of business expansion
and being a public company.
Selling and marketing expenses increased by 128.4%
to RMB67.8 million (US$9.9
million) from RMB29.7 million for the first nine
months of 2017, primarily due to the increase in salary
compensation to retain sales and marketing personnel, and the
increase in advertisement promotion expenses on the self-branded
products.
Operating income was RMB234.5
million (US$34.1 million),
compared with RMB107.1 million for the first nine months
of 2017.
Income before income tax was RMB247.2 million (US$36.0
million), compared with RMB112.0
million for the first nine months of 2017.
Income tax expenses were RMB39.7
million (US$5.8 million),
compared with RMB15.5 million for the first nine months
of 2017.
Net income attributable to Huami
Corporation totaled RMB214.1
million (US$31.2 million),
compared with RMB95.4 million for the first nine months
of 2017.
Net income attributable to ordinary shareholders of Huami
Corporation increased to RMB195.4
million (US$28.5 million),
compared with RMB20.8 million for the first nine months
of 2017.
Basic and diluted net income per ADS attributable to ordinary
shareholders of
Huami Corporation was RMB3.83 (US$0.56) and RMB3.43 (US$0.50),
respectively, compared with RMB1.39 and RMB1.33,
respectively, for the first nine months of 2017. Each ADS
represents four (4) Class A ordinary shares.
Adjusted net income attributable to Huami Corporation,
which excludes share-based compensation expenses, increased by
128.1% to RMB328.3 million (US$47.8 million) from RMB144.0
million for the first nine months of 2017.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of Huami Corporation was
RMB5.92(US$0.86) and RMB5.30(US$0.77), respectively, compared
with RMB2.44 and RMB2.33, respectively, for the
first nine months of 2017. Each ADS represents four (4) Class A
ordinary shares.
Outlook
For the fourth quarter of 2018, the management of the Company
currently expects:
- Net revenues to be between RMB1.12
billion and RMB1.15 billion, which would represent an
increase of approximately 48.8% to 52.8% from RMB752.6
million for the fourth quarter of 2017.
The above outlook is based on the current market conditions and
reflects Company management's current and preliminary estimates of
market and operating conditions and customer demand, which are all
subject to change.
Conference Call
The Company's management will hold a conference call
at 7:30 a.m. Eastern Time on Monday, November 26, 2018 (8:30 p.m.
Beijing Time on November 26, 2018) to
discuss financial results and answer questions from investors and
analysts. Listeners may access the call by dialing:
US (Toll
Free):
|
+1-888-346-8982
|
International:
|
+1-412-902-4272
|
Mainland China (Toll
Free):
|
400-120-1203
|
Hong Kong (Toll
Free):
|
800-905-945
|
Hong Kong:
|
+852-3018-4992
|
Participants should dial-in at least 10 minutes before the
scheduled start time and ask to be connected to the call for "Huami
Corporation."
Additionally, a live and archived webcast of the conference call
will be available at http://www.huami.com/investor
A telephone replay will be available one hour after the end of
the conference until December 2, 2018
by dialing the following telephone numbers:
US (Toll
Free):
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay
Passcode:
|
10126209
|
About Huami Corporation
Huami is a biometric and activity data-driven company with
significant expertise in smart wearable technology. Since its
inception in 2013, Huami has quickly established its global market
leadership and recognition by shipping millions of units of smart
wearable devices. In 2017, Huami shipped 18.1 million units of
smart wearable devices. Huami has one of the largest biometric and
activity databases in the global smart wearables industry. Huami's
mobile apps work hand in hand with its smart wearable devices and
provide users with a comprehensive view and analysis of their
biometric and activity data. In addition to designing,
manufacturing and selling smart bands and watches under its own
Amazfit brand, Huami is the sole partner of Xiaomi, a leading
mobile internet company and global consumer electronics brand, to
design and manufacture Xiaomi-branded smart bands, watches
(excluding children watches and quartz watches), scales and
associated accessories.
Use of Non-GAAP Measures
We use adjusted net income, a non-GAAP financial measure, in
evaluating our operating results and for financial and operational
decision-making purposes. Adjusted net income represents net income
excluding share-based compensation expenses, and such adjustment
has no impact on income tax.
We believe that adjusted net income helps identify underlying
trends in our business that could otherwise be distorted by the
effect of certain expenses that we include in net income. We
believe that adjusted net income provides useful information about
our operating results, enhances the overall understanding of our
past performance and future prospects and allows for greater
visibility with respect to key metrics used by our management in
its financial and operational decision-making.
Adjusted net income, should not be considered in isolation or
construed as an alternative to net income, basic and diluted net
income per share attributable to ordinary shareholders of Huami
Corporation or any other measure of performance or as an indicator
of our operating performance. Investors are encouraged to review
the historical non-GAAP financial measures to the most directly
comparable GAAP measures. Adjusted net income, presented here may
not be comparable to similarly titled measures presented by other
companies. Other companies may calculate similarly titled measures
differently, limiting their usefulness as comparative measures to
our data. We encourage investors and others to review our financial
information in its entirety and not rely on a single financial
measure.
Exchange Rate
The Company's business is primarily conducted
in China and the significant majority of revenues
generated are denominated in Renminbi ("RMB"). This announcement
contains currency conversions of RMB amounts into U.S. dollars
("US$") solely for the convenience of the reader. Unless otherwise
noted, all translations from RMB to US$ are made at a rate
of RMB6.8680 to US$1.00, the effective noon buying
rate for September 28, 2018 as set
forth in the H.10 statistical release of the Federal Reserve Board.
No representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
September 28, 2018, or at any other
rate.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
cooperation with Xiaomi, the recognition of the Company's
self-branded products; the Company's growth strategies; trends and
competition in global wearable technology market; changes in the
Company's revenues and certain cost or expense accounting policies;
governmental policies relating to the Company's industry and
general economic conditions in China and the global.
Further information regarding these and other risks is included in
the Company's filings with the United States Securities and
Exchange Commission. All information provided in this press release
and in the attachments is as of the date of this press release, and
the Company undertakes no obligation to update any forward-looking
statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Huami Corporation
Grace Yujia Zhang
Tel: +86-10-5940-3255
E-mail: ir@huami.com
The Piacente Group, Inc.
Ross Warner
Tel: +86-10-5730-6201
E-mail: huami@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: huami@tpg-ir.com
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of September
30,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
366,336
|
|
967,362
|
|
140,851
|
Restricted
cash
|
|
3,185
|
|
3,020
|
|
440
|
Term deposit
|
|
-
|
|
288,456
|
|
42,000
|
Accounts
receivable
|
|
32,867
|
|
38,535
|
|
5,611
|
Amounts due from
related parties, current
|
|
578,454
|
|
663,260
|
|
96,573
|
Inventories
|
|
249,735
|
|
423,535
|
|
61,668
|
Short-term
investments
|
|
13,721
|
|
49,665
|
|
7,231
|
Prepaid expenses and
other current assets
|
|
51,062
|
|
45,730
|
|
6,658
|
Total current
assets
|
|
1,295,360
|
|
2,479,563
|
|
361,032
|
Property, plant and
equipment, net
|
|
28,755
|
|
35,366
|
|
5,149
|
Intangible asset,
net
|
|
5,339
|
|
9,000
|
|
1,310
|
Goodwill
|
|
5,930
|
|
5,930
|
|
863
|
Long-term
investments
|
|
85,238
|
|
152,788
|
|
22,246
|
Deferred tax
assets
|
|
41,895
|
|
67,305
|
|
9,800
|
Other non-current
assets
|
|
3,000
|
|
64,113
|
|
9,335
|
Total
assets
|
|
1,465,517
|
|
2,814,065
|
|
409,735
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of September
30,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
707,782
|
|
849,736
|
|
123,724
|
Advance from
customers
|
|
10,683
|
|
21,031
|
|
3,062
|
Amount due to related
parties, current
|
|
8,143
|
|
8,513
|
|
1,240
|
Accrued expenses and
other current liabilities
|
|
93,798
|
|
135,294
|
|
19,699
|
Income tax
payables
|
|
21,600
|
|
38,682
|
|
5,632
|
Notes
payable
|
|
5,243
|
|
5,034
|
|
733
|
Bank
borrowings
|
|
30,000
|
|
20,000
|
|
2,912
|
Total current
liabilities
|
|
877,249
|
|
1,078,290
|
|
157,002
|
Deferred tax
liabilities
|
|
2,470
|
|
5,317
|
|
774
|
Amount due to a
related party, non-current
|
|
3,076
|
|
3,185
|
|
464
|
Other non-current
liabilities
|
|
4,940
|
|
56,249
|
|
8,190
|
Total
liabilities
|
|
887,735
|
|
1,143,041
|
|
166,430
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of September
30,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
|
|
Series A convertible
redeemable participating preferred shares
|
|
26,770
|
|
-
|
|
-
|
Series B-1
convertible redeemable participating preferred shares
|
|
26,906
|
|
-
|
|
-
|
Series B-2
convertible redeemable participating preferred shares
|
|
295,942
|
|
-
|
|
-
|
Total mezzanine
equity
|
|
349,618
|
|
-
|
|
-
|
Equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
56
|
|
151
|
|
22
|
Additional paid-in
capital
|
|
72,427
|
|
1,196,715
|
|
174,245
|
Accumulated retained
earnings
|
|
131,192
|
|
378,615
|
|
55,127
|
Accumulated other
comprehensive income
|
|
22,100
|
|
96,086
|
|
13,990
|
Total Huami
Corporation shareholders' equity
|
|
225,775
|
|
1,671,567
|
|
243,384
|
Non-controlling
interests
|
|
2,389
|
|
(543)
|
|
(79)
|
Total
equity
|
|
228,164
|
|
1,671,024
|
|
243,305
|
Total liabilities,
mezzanine equity and equity
|
|
1,465,517
|
|
2,814,065
|
|
409,735
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
474,079
|
|
1,074,707
|
|
156,480
|
Cost of
revenues
|
|
347,174
|
|
787,811
|
|
114,707
|
Gross
profit
|
|
126,905
|
|
286,896
|
|
41,773
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
9,896
|
|
32,341
|
|
4,709
|
General and
administrative
|
|
27,376
|
|
67,971
|
|
9,897
|
Research and
development
|
|
35,245
|
|
59,958
|
|
8,730
|
Total operating
expenses
|
|
72,517
|
|
160,270
|
|
23,336
|
Operating
income
|
|
54,388
|
|
126,626
|
|
18,437
|
Other income and
expenses:
|
|
|
|
|
|
|
Realized gain from
investments
|
|
2,335
|
|
-
|
|
-
|
Interest
income
|
|
691
|
|
1,648
|
|
240
|
Other
income
|
|
328
|
|
1,086
|
|
158
|
Income before
income tax
|
|
57,742
|
|
129,360
|
|
18,835
|
Income tax
expenses
|
|
(7,535)
|
|
(21,095)
|
|
(3,071)
|
Income before
income from equity method investments
|
|
50,207
|
|
108,265
|
|
15,764
|
(Loss)/income from
equity method investments
|
|
(280)
|
|
4,399
|
|
641
|
Net income
|
|
49,927
|
|
112,664
|
|
16,405
|
Less: Net loss
attributable to non-controlling interest
|
|
(263)
|
|
(1,148)
|
|
(167)
|
Net income
attributable to Huami Corporation
|
|
50,190
|
|
113,812
|
|
16,572
|
Less: Accretion of
Series A Preferred Shares
|
|
968
|
|
-
|
|
-
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
803
|
|
-
|
|
-
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
8,823
|
|
-
|
|
-
|
Less: Undistributed
earnings allocated to participating preferred
shares and nonvested restricted shares
|
|
24,833
|
|
4,759
|
|
693
|
Net income
attributable to ordinary shareholders of Huami
Corporation
|
|
14,763
|
|
109,053
|
|
15,879
|
Net income per
share attributable to ordinary
shareholders of Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.21
|
|
0.47
|
|
0.07
|
Diluted income per
ordinary share
|
|
0.20
|
|
0.45
|
|
0.07
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
0.85
|
|
1.89
|
|
0.28
|
ADS –
diluted
|
|
0.82
|
|
1.79
|
|
0.26
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net
income per share
Ordinary share –
basic
|
|
69,271,901
|
|
231,062,447
|
|
231,062,447
|
|
|
|
|
|
|
|
Ordinary share –
diluted
|
|
77,438,973
|
|
244,537,743
|
|
244,537,743
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to Huami
Corporation
|
|
50,190
|
|
113,812
|
|
16,572
|
Share-based
compensation expenses
|
|
19,333
|
|
20,404
|
|
2,971
|
Adjusted net
income attributable to Huami
Corporation
|
|
69,523
|
|
134,216
|
|
19,543
|
Less: Accretion of
Series A Preferred Shares
|
|
968
|
|
-
|
|
-
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
803
|
|
-
|
|
-
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
8,823
|
|
-
|
|
-
|
Less: Undistributed
earnings allocated to
participating preferred shares and nonvested
restricted shares
|
|
36,959
|
|
5,613
|
|
817
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation
|
|
21,970
|
|
128,603
|
|
18,726
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
0.32
|
|
0.56
|
|
0.08
|
Adjusted diluted
income per ordinary share
|
|
0.30
|
|
0.53
|
|
0.08
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary
shares equal to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
1.27
|
|
2.23
|
|
0.32
|
ADS –
diluted
|
|
1.22
|
|
2.11
|
|
0.31
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
69,271,901
|
|
231,062,447
|
|
231,062,447
|
Ordinary share –
diluted
|
|
77,438,973
|
|
244,537,743
|
|
244,537,743
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
-
|
|
5
|
|
1
|
Selling and
marketing
|
|
-
|
|
61
|
|
9
|
General and
administrative
|
|
14,049
|
|
19,340
|
|
2,816
|
Research and
development
|
|
5,284
|
|
998
|
|
145
|
Total
|
|
19,333
|
|
20,404
|
|
2,971
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
1,296,248
|
|
2,420,766
|
|
352,470
|
Cost of
revenues
|
|
968,369
|
|
1,790,311
|
|
260,674
|
Gross
profit
|
|
327,879
|
|
630,455
|
|
91,796
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
29,680
|
|
67,785
|
|
9,870
|
General and
administrative
|
|
82,474
|
|
150,044
|
|
21,847
|
Research and
development
|
|
108,590
|
|
178,151
|
|
25,939
|
Total operating
expenses
|
|
220,744
|
|
395,980
|
|
57,656
|
Operating
income
|
|
107,135
|
|
234,475
|
|
34,140
|
Other income and
expenses:
|
|
|
|
|
|
|
Realized gain from
investment
|
|
2,335
|
|
-
|
|
-
|
Interest
income
|
|
1,463
|
|
5,023
|
|
731
|
Other
income
|
|
1,066
|
|
7,714
|
|
1,123
|
Income before
income tax
|
|
111,999
|
|
247,212
|
|
35,994
|
Income tax
expenses
|
|
(15,462)
|
|
(39,713)
|
|
(5,782)
|
Income before loss
from equity method investments
|
|
96,537
|
|
207,499
|
|
30,212
|
(Loss)/income from
equity method investments
|
|
(1,422)
|
|
3,663
|
|
533
|
Net income
|
|
95,115
|
|
211,162
|
|
30,745
|
Less: Net loss
attributable to non-controlling interest
|
|
(263)
|
|
(2,932)
|
|
(427)
|
Net income
attributable to Huami Corporation
|
|
95,378
|
|
214,094
|
|
31,172
|
Less: Accretion of
Series A Preferred Shares
|
|
2,786
|
|
177
|
|
26
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
2,324
|
|
368
|
|
54
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
25,551
|
|
4,049
|
|
590
|
Less: Undistributed
earnings allocated to
participating preferred shares and nonvested restricted
shares
|
|
43,884
|
|
14,090
|
|
2,052
|
Net income
attributable to ordinary shareholders
of Huami Corporation
|
|
20,833
|
|
195,410
|
|
28,450
|
|
|
|
|
|
|
|
Net income per share
attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.35
|
|
0.96
|
|
0.14
|
Diluted income per
ordinary share
|
|
0.33
|
|
0.86
|
|
0.13
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
1.39
|
|
3.83
|
|
0.56
|
ADS –
diluted
|
|
1.33
|
|
3.43
|
|
0.50
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
59,795,978
|
|
204,101,485
|
|
204,101,485
|
Ordinary share –
diluted
|
|
68,395,489
|
|
216,264,202
|
|
216,264,202
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to Huami
Corporation
|
|
95,378
|
|
214,094
|
|
31,172
|
Share-based
compensation expenses
|
|
48,575
|
|
114,211
|
|
16,628
|
Adjusted net
income attributable to Huami
Corporation
|
|
143,953
|
|
328,305
|
|
47,800
|
Less: Accretion of
Series A Preferred Shares
|
|
2,786
|
|
177
|
|
26
|
Less: Accretion of
Series B-1 Preferred Shares
|
|
2,324
|
|
368
|
|
54
|
Less: Accretion of
Series B-2 Preferred Shares
|
|
25,551
|
|
4,049
|
|
590
|
Less: Undistributed
earnings allocated
to participating preferred shares and
nonvested restricted shares
|
|
76,822
|
|
21,770
|
|
3,170
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation
|
|
36,470
|
|
301,941
|
|
43,960
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable
to ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
0.61
|
|
1.48
|
|
0.22
|
Adjusted diluted
income per ordinary share
|
|
0.58
|
|
1.32
|
|
0.19
|
|
|
|
|
|
|
|
Adjusted
income per ADS (4 ordinary shares
equal to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
2.44
|
|
5.92
|
|
0.86
|
ADS –
diluted
|
|
2.33
|
|
5.30
|
|
0.77
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
59,795,978
|
|
204,101,485
|
|
204,101,485
|
Ordinary share –
diluted
|
|
68,395,489
|
|
216,264,202
|
|
216,264,202
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
-
|
|
415
|
|
60
|
Selling and
marketing
|
|
-
|
|
4,172
|
|
607
|
General and
administrative
|
|
42,147
|
|
71,403
|
|
10,396
|
Research and
development
|
|
6,428
|
|
38,221
|
|
5,565
|
Total
|
|
48,575
|
|
114,211
|
|
16,628
|
View original
content:http://www.prnewswire.com/news-releases/huami-corporation-reports-third-quarter-2018-unaudited-financial-results-300755010.html
SOURCE Huami Corporation