BEIJING, Nov. 23, 2020
/PRNewswire/ -- Huami Corporation (NYSE: HMI) today reported
revenue of RMB2.2 billion, or
US$329.2 million; GAAP diluted net
income per share of RMB0.31
(US$0.05), or GAAP diluted net income
per ADS of RMB1.24 (US$0.18) for
the third quarter ended September 30,
2020.
"Third quarter unit and revenue growth of 16% and 20%,
respectively, was predominantly driven by shipments of the Xiaomi
Mi Band 5, continued geographic expansion, and the effect of
improved economic conditions in many regions," said Wang Huang, Chairman and CEO of Huami. "We are
continuing our strategy as a value leader, leveraging our
proprietary technology to drive feature set/price points that are
attractive to many budget ranges, and we launched a number of
promising new products in the third quarter. At the same time we
are continuing to explore the healthcare services business with our
partners like Prudential Asia, in order to capture the
opportunities in the fast-growing healthcare service industry."
"We continue to manage the business for long-term success,"
added chief financial officer Leon
Deng. "However, we experienced some new products launch plan
delays and production delays due to the pandemic, and resurgence of
the virus in many key markets tempers our near-term outlook. As a
result, we will be exercising control on expenses in the coming
quarter by focusing on projects with higher return on
investment."
Third Quarter 2020
Financial Summary
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
GAAP in millions,
except percentages and per share
amounts
|
|
Sept. 30,
2020
|
Sept.
30, 2019[1]
|
|
Sept.
30, 2020
|
Sept.
30, 2019[1]
|
Revenue
RMB
|
|
2,235.1
|
1,862.5
|
|
4,460.8
|
3,700.8
|
Revenue
USD
|
|
329.2
|
260.6
|
|
657.0
|
517.8
|
Gross
Margin
|
|
20.6%
|
25.2%
|
|
21.5%
|
26.1%
|
Net income
attributable to Huami
Corporation RMB
|
|
81.1
|
203.3
|
|
113.5
|
368.0
|
Adjusted net income
attributable to Huami
Corporation RMB[2]
|
|
120.8
|
209.8
|
|
165.5
|
416.6
|
|
|
|
|
|
|
|
Diluted net income
per share RMB
|
|
0.31
|
0.79
|
|
0.44
|
1.43
|
Diluted net income
per ADS USD
|
|
0.18
|
0.44
|
|
0.26
|
0.80
|
Adjusted diluted net
income per share RMB[3]
|
|
0.46
|
0.81
|
|
0.64
|
1.62
|
Adjusted diluted net
income per ADS USD
|
|
0.27
|
0.45
|
|
0.38
|
0.91
|
Units
Shipped
|
|
15.9
|
13.7
|
|
32.4
|
27.6
|
[1] The
USD numbers in 2019 are referenced with the prior 6-K
disclosures.
|
[2]
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.
|
[3] 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
Revenue
Total units shipped in the third quarter 2020 increased 16.1%
year-over-year, reaching 15.9 million, compared with 13.7 million
in the third quarter of 2019. Third quarter revenues reached
RMB2,235.1 million (US$329.2 million), an increase of 20% from the
third quarter of 2019. The increase in the quarter was driven
primarily by sales through Xiaomi, principally the new Mi Band 5. Sales of self-branded products in the
third quarter were primarily driven by new products, including the
new Amazfit watches and TWS earbuds. 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.
Covid-19 Impact
The negative impact of Covid-19 receded in Q3 on retail sales
and the worldwide economy generally. China's GDP rose 5% in the third quarter, some
sectors of European retail were stronger, and U.S. retail sales
increased 5% in September. We believe this was a contributing
factor to Huami's growth in the third quarter, and we experienced a
significant rebound and growth of device activations in most of the
markets during the quarter, compared sequentially to the June
quarter.
Production delays related to the pandemic in the quarter
delayed the launch date of a new product and affected new product
inventory availability.
Currently, it is reported that a new resurgence of COVID-19
cases is widely around the world, including the U.S., many European
countries, Russia, and
Japan. Renewed restrictions are
being implemented and considered. We expect this resurgence to
negatively impact our customers and fourth quarter sales of our key
product categories.
Longer-term, smart health technology plays a unique and
important role in healthcare, as outlined in a recent white paper
published by the company. Industry forecasts and research into
consumer adoption and use of wearables and personal health
technology still point to strong future demand. However, the
company expects the near-term disruptions to daily life on a global
scale will impact the fourth quarter, and are setting its
expectations accordingly.
Gross Margin
Gross margin in the third quarter 2020 was 20.6%, compared
with 25.2% in the year-ago third 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 third quarter 2020, mix between total Xiaomi
and self-branded unit shipments was the same as the prior year's
quarter, but gross margin was predominantly driven by lower margins
on Xiaomi products compared to the year-ago quarter.
Research & Development
Third quarter 2020 R&D expense was RMB172.9 million, increasing 38.8% year-over
year, and comprised 7.7% of revenue, compared to 6.7% of revenue in
the year-ago third 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. The company believes that smart R&D investment is
key, and that at this percent of sales level is adequately
resourced to effectively develop and bring to market new smart
devices and analytics for consumers and industry.
Sales & Marketing
Sales and Marketing expense for the third quarter 2020 was
RMB115.6 million, increasing 104.2%
year-over-year, and comprised 5.2% of revenue, compared to 3.0% of
revenue in the year-ago quarter. Higher sales and marketing expense
in 2020 was mainly driven by brand promotions for our own branded
products globally.
General & Administrative
General and Administrative expense was RMB91.0 million, increasing 30.8% year-over-year,
and comprised 4.1% of revenue, compared to 3.7% in the 2019 third
quarter. The increase is primarily due to an increase in
share-based compensation.
Operating Income and Expenses
Total Operating Expense for the third quarter 2020 was
RMB379.5 million, up 51.3% 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 17.0% of revenue in the third quarter
2020 compared to 13.5% in the year-ago quarter. The company will be exercising control
on expenses in the fourth quarter, focusing on costs as a percent
of sales.
Operating Income for the third quarter 2020 was RMB80.6 million, down 63.2% from RMB219.1 million in the year-ago quarter.
Liquidity and Capital Resources
At September 30, 2020, the Company
had cash and cash equivalents of RMB2,555.6
million (US$376.4 million),
compared with RMB1,803.1 million as
of December 31, 2019.
Outlook
For the fourth quarter of 2020, the management of the
Company currently expects:
- Net revenues to be between RMB1.95 billion and RMB2.15 billion, compared with RMB2.11 billion in the fourth 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
7:30 a.m. Eastern Standard Time on
Monday, November 23, 2020 (8:30
p.m. Beijing Time on November 23,
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 hour after the call until November 30, 2020 by dialing:
US Toll
Free:
|
|
+1-877-344-7529
|
International:
|
|
+1-412-317-0088
|
Replay
Passcode:
|
|
10149826
|
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 watches and fitness bands,
including its own Amazfit brand, and products developed and
manufactured for Xiaomi, comprising 26% of global category
shipments[4].
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.
[4]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
RMB6.7896 to US$1.00, the effective noon buying rate for
September 30, 2020 as set forth in
the H.10 statistical release of the Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
September 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.
Yang Song
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$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of September
30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,803,117
|
|
2,555,561
|
|
376,393
|
Restricted
cash
|
|
874
|
|
2,404
|
|
354
|
Term
deposit
|
|
-
|
|
200,000
|
|
29,457
|
Accounts
receivable
|
|
188,940
|
|
157,983
|
|
23,268
|
Amounts due from
related parties, current
|
|
1,421,170
|
|
1,312,677
|
|
193,336
|
Inventories
|
|
893,806
|
|
1,100,458
|
|
162,080
|
Short-term
investments
|
|
17,187
|
|
18,118
|
|
2,668
|
Prepaid expenses and
other current assets
|
|
67,358
|
|
101,982
|
|
15,020
|
Total current
assets
|
|
4,392,452
|
|
5,449,183
|
|
802,576
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
64,350
|
|
106,771
|
|
15,726
|
Intangible asset,
net
|
|
85,753
|
|
158,334
|
|
23,320
|
Goodwill
|
|
5,930
|
|
70,980
|
|
10,454
|
Long-term
investments
|
|
406,099
|
|
336,759
|
|
49,599
|
Deferred tax
assets
|
|
102,649
|
|
128,794
|
|
18,969
|
Other non-current
assets
|
|
8,828
|
|
15,405
|
|
2,269
|
Non-current operating
lease right-of-use assets
|
|
108,682
|
|
168,266
|
|
24,783
|
Total
assets
|
|
5,174,743
|
|
6,434,492
|
|
947,696
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of September
30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
1,999,951
|
|
2,215,864
|
|
326,361
|
Advance from
customers
|
|
44,793
|
|
41,865
|
|
6,166
|
Amount due to related
parties, current
|
|
14,769
|
|
7,565
|
|
1,114
|
Accrued expenses and
other current liabilities
|
|
352,249
|
|
291,108
|
|
42,875
|
Income tax
payables
|
|
67,854
|
|
34,052
|
|
5,015
|
Notes
payable
|
|
2,184
|
|
-
|
|
-
|
Bank
borrowings
|
|
-
|
|
814,207
|
|
119,920
|
Total current
liabilities
|
|
2,481,800
|
|
3,404,661
|
|
501,451
|
Deferred tax
liabilities
|
|
5,399
|
|
21,646
|
|
3,188
|
Long-term
borrowing
|
|
-
|
|
60,000
|
|
8,837
|
Other non-current
liabilities
|
|
113,596
|
|
172,254
|
|
25,370
|
Non-current operating
lease liabilities
|
|
76,360
|
|
125,020
|
|
18,413
|
Total
liabilities
|
|
2,677,155
|
|
3,783,581
|
|
557,259
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of September
30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
155
|
|
156
|
|
23
|
Additional paid-in
capital
|
|
1,478,902
|
|
1,533,475
|
|
225,856
|
Accumulated retained
earnings
|
|
910,612
|
|
1,024,161
|
|
150,843
|
Accumulated other
comprehensive income
|
|
111,081
|
|
95,274
|
|
14,032
|
Total Huami
Corporation shareholders' equity
|
|
2,500,750
|
|
2,653,066
|
|
390,754
|
Non-controlling
interests
|
|
(3,162)
|
|
(2,155)
|
|
(317)
|
Total
equity
|
|
2,497,588
|
|
2,650,911
|
|
390,437
|
Total liabilities
and equity
|
|
5,174,743
|
|
6,434,492
|
|
947,696
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
1,862,531
|
|
2,235,093
|
|
329,194
|
Cost of
revenues
|
|
1,392,670
|
|
1,775,017
|
|
261,432
|
Gross
profit
|
|
469,861
|
|
460,076
|
|
67,762
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
56,631
|
|
115,617
|
|
17,029
|
General and
administrative
|
|
69,578
|
|
90,987
|
|
13,401
|
Research and
development
|
|
124,538
|
|
172,891
|
|
25,464
|
Total operating
expenses
|
|
250,747
|
|
379,495
|
|
55,894
|
Operating
income
|
|
219,114
|
|
80,581
|
|
11,868
|
Other income and
expenses:
|
|
|
|
|
|
|
Interest
income
|
|
10,911
|
|
10,330
|
|
1,521
|
Other expenses,
net
|
|
(1,971)
|
|
(5,754)
|
|
(847)
|
Gain from fair value
change of long-term investment
|
|
-
|
|
3,304
|
|
487
|
Income before
income tax
|
|
228,054
|
|
88,461
|
|
13,029
|
Income tax
expenses
|
|
(27,518)
|
|
(8,437)
|
|
(1,243)
|
Income before loss
from equity method investments
|
|
200,536
|
|
80,024
|
|
11,786
|
Net income from equity
method investments
|
|
2,878
|
|
2,472
|
|
364
|
Net
income
|
|
203,414
|
|
82,496
|
|
12,150
|
Less: Net income
attributable to non-controlling interest
|
|
77
|
|
1,422
|
|
209
|
Net income
attributable to Huami Corporation
|
|
203,337
|
|
81,074
|
|
11,941
|
Net income
attributable to ordinary shareholders of Huami
Corporation
|
|
203,337
|
|
81,074
|
|
11,941
|
Net income per
share attributable to ordinary
|
|
|
|
|
|
|
shareholders of
Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
0.83
|
|
0.33
|
|
0.05
|
Diluted income per
ordinary share
|
|
0.79
|
|
0.31
|
|
0.05
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
3.31
|
|
1.30
|
|
0.19
|
ADS –
diluted
|
|
3.15
|
|
1.24
|
|
0.18
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net
income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
245,934,981
|
|
248,748,630
|
|
248,748,630
|
Ordinary share –
diluted
|
|
258,343,485
|
|
260,829,357
|
|
260,829,357
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
attributable to Huami Corporation
|
|
203,337
|
|
81,074
|
|
11,941
|
Share-based
compensation expenses
|
|
6,491
|
|
39,723
|
|
5,851
|
Adjusted net
income attributable to Huami
Corporation
|
|
209,828
|
|
120,797
|
|
17,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
of Huami Corporation
|
|
203,337
|
|
81,074
|
|
11,941
|
Share-based
compensation expenses attributable to
ordinary shareholders of Huami Corporation
|
|
6,491
|
|
39,723
|
|
5,851
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation[2]
|
|
209,828
|
|
120,797
|
|
17,792
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
0.85
|
|
0.49
|
|
0.07
|
Adjusted diluted
income per ordinary share
|
|
0.81
|
|
0.46
|
|
0.07
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
3.41
|
|
1.94
|
|
0.29
|
ADS –
diluted
|
|
3.25
|
|
1.85
|
|
0.27
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
245,934,981
|
|
248,748,630
|
|
248,748,630
|
Ordinary share –
diluted
|
|
258,343,485
|
|
260,829,357
|
|
260,829,357
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
8
|
|
-
|
|
-
|
Selling and
marketing
|
|
647
|
|
556
|
|
82
|
General and
administrative
|
|
4,130
|
|
21,033
|
|
3,098
|
Research and
development
|
|
1,706
|
|
18,134
|
|
2,671
|
Total
|
|
6,491
|
|
39,723
|
|
5,851
|
HUAMI
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
|
3,700,842
|
|
4,460,828
|
|
657,009
|
Cost of
revenues
|
|
2,736,224
|
|
3,502,809
|
|
515,908
|
Gross
profit
|
|
964,618
|
|
958,019
|
|
141,101
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
119,219
|
|
241,802
|
|
35,614
|
General and
administrative
|
|
165,900
|
|
197,293
|
|
29,058
|
Research and
development
|
|
290,669
|
|
408,434
|
|
60,156
|
Total operating
expenses
|
|
575,788
|
|
847,529
|
|
124,828
|
Operating
income
|
|
388,830
|
|
110,490
|
|
16,273
|
Other income and
expenses:
|
|
|
|
|
|
|
Interest
income
|
|
23,204
|
|
31,668
|
|
4,664
|
Other income
(expenses), net
|
|
2,842
|
|
(13,772)
|
|
(2,028)
|
Gain from fair value
change of long-term investment
|
|
-
|
|
4,597
|
|
677
|
Income before
income tax
|
|
414,876
|
|
132,983
|
|
19,586
|
Income tax
expenses
|
|
(50,552)
|
|
(12,956)
|
|
(1,908)
|
Income before loss
from equity method investments
|
|
364,324
|
|
120,027
|
|
17,678
|
Net income (loss)
from equity method investments
|
|
2,647
|
|
(5,471)
|
|
(806)
|
Net
income
|
|
366,971
|
|
114,556
|
|
16,872
|
Less: Net income
(loss) attributable to non-controlling interest
|
|
(1,014)
|
|
1,007
|
|
148
|
Net income
attributable to Huami Corporation
|
|
367,985
|
|
113,549
|
|
16,724
|
Less: Undistributed
earnings allocated to participating nonvested restricted
shares
|
|
2,102
|
|
-
|
|
-
|
Net income
attributable to ordinary shareholders of Huami
Corporation
|
|
365,883
|
|
113,549
|
|
16,724
|
Net income per
share attributable to ordinary
shareholders of Huami Corporation
|
|
|
|
|
|
|
Basic income per
ordinary share
|
|
1.51
|
|
0.46
|
|
0.07
|
Diluted income per
ordinary share
|
|
1.43
|
|
0.44
|
|
0.06
|
|
|
|
|
|
|
|
Net
income per ADS (4 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
6.03
|
|
1.83
|
|
0.27
|
ADS –
diluted
|
|
5.73
|
|
1.75
|
|
0.26
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing net income per
share
Ordinary share –
basic
|
|
242,542,392
|
|
248,080,549
|
|
248,080,549
|
Ordinary share –
diluted
|
|
255,322,189
|
|
259,723,569
|
|
259,723,569
|
HUAMI
CORPORATION
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
except for number
of shares and per share data, or otherwise noted)
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
attributable to Huami Corporation
|
|
367,985
|
|
113,549
|
|
16,724
|
Share-based
compensation expenses
|
|
48,579
|
|
51,936
|
|
7,649
|
Adjusted net
income attributable to Huami
Corporation
|
|
416,564
|
|
165,485
|
|
24,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
of Huami Corporation
|
|
365,883
|
|
113,549
|
|
16,724
|
Share-based
compensation expenses attributable
to ordinary
shareholders of Huami Corporation
|
|
48,301
|
|
51,936
|
|
7,649
|
Adjusted net
income attributable to ordinary
shareholders of Huami Corporation[2]
|
|
414,184
|
|
165,485
|
|
24,373
|
|
|
|
|
|
|
|
Adjusted net
income per share attributable to
ordinary shareholders of Huami Corporation
|
|
|
|
|
|
|
Adjusted basic income
per ordinary share
|
|
1.71
|
|
0.67
|
|
0.10
|
Adjusted diluted
income per ordinary share
|
|
1.62
|
|
0.64
|
|
0.09
|
|
|
|
|
|
|
|
Adjusted net
income per ADS (4 ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
ADS –
basic
|
|
6.83
|
|
2.67
|
|
0.39
|
ADS –
diluted
|
|
6.49
|
|
2.55
|
|
0.38
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computing net income per share
|
|
|
|
|
|
|
Ordinary share –
basic
|
|
242,542,392
|
|
248,080,549
|
|
248,080,549
|
Ordinary share –
diluted
|
|
255,322,189
|
|
259,723,569
|
|
259,723,569
|
|
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
|
|
Cost of
revenues
|
|
47
|
|
(54)
|
|
(8)
|
Selling and
marketing
|
|
2,557
|
|
1,820
|
|
268
|
General and
administrative
|
|
36,539
|
|
28,963
|
|
4,266
|
Research and
development
|
|
9,436
|
|
21,207
|
|
3,123
|
Total
|
|
48,579
|
|
51,936
|
|
7,649
|
View original
content:http://www.prnewswire.com/news-releases/huami-corporation-reports-third-quarter-2020-unaudited-financial-results-301178734.html
SOURCE Huami Corporation