omniture

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

Quarterly Revenues up 62.7% Year-over-Year, Exceeding Guidance Range
Full Year Revenues up 77.9% Year-over-Year to RMB3,645.3 Million
2019-03-14 17:43 6389

BEIJING, March 14, 2019 /PRNewswire/ -- Huami Corporation ("Huami" or the "Company") (NYSE: HMI), a biometric and activity data-driven company with significant expertise in smart wearable technology, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Financial and Operating Highlights

  • Revenues[1] reached RMB1,224.6 million (US$178.1 million), representing an increase of 62.7% from the fourth quarter of 2017.
  • Gross margin was 25.2%, compared with 22.2% for the fourth quarter of 2017.
  • Net income attributable to Huami Corporation was RMB126.0 million (US$18.3 million), compared with RMB72.3 million for the fourth quarter of 2017.
  • Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB2.08 (US$0.30) and RMB1.97 (US$0.29), respectively, compared with RMB1.33 and RMB1.27, respectively, for the fourth quarter of 2017. Each ADS represents four (4) Class A ordinary shares.
  • Adjusted net income attributable to Huami Corporation[2] was RMB146.5 million (US$21.3 million), up 69.3% from the fourth quarter of 2017.
  • Adjusted basic and diluted net income per American depositary share ("ADS") attributable to ordinary shareholders of Huami Corporation was RMB2.42 (US$0.35) and RMB2.30 (US$0.33), respectively, compared with RMB1.63 and RMB1.56, respectively, for the fourth quarter of 2017. Each ADS represents four (4) Class A ordinary shares.
  • Total units shipped reached 9.2 million, compared with 6.5 million in the fourth quarter of 2017.

[1] The Company has adopted ASC 606 by using modified retrospective method since January 1, 2018.

[2] Adjusted net income is a non-GAAP measure, which excludes share-based compensation expenses. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.

Full Year 2018 Financial and Operating Highlights

  • Revenues reached RMB3,645.3 million (US$530.2 million), representing an increase of 77.9% from the full year 2017.
  • Gross margin reached 25.8%, compared with 24.1% for the full year 2017.
  • Net income attributable to Huami Corporation was RMB340.0 million (US$49.5 million), compared with RMB167.7 million in the full year 2017.
  • Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB5.98 (US$0.87) and RMB5.41 (US$0.79), respectively, compared with RMB2.72 and RMB2.60 respectively, for the full year 2017. Each ADS represents four (4) Class A ordinary shares.
  • Adjusted net income attributable to Huami Corporation was RMB474.8 million (US$69.0 million), up 106.0% from the full year 2017.
  • Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB8.39 (US$1.22) and RMB7.59 (US$1.10), respectively, compared with RMB4.07 and RMB3.90, respectively, for the full year 2017. Each ADS represents four (4) Class A ordinary shares.
  • Total units shipped reached 27.5 million, compared with 18.1 million in the full year 2017.

"We are very proud to conclude the year of 2018 with strong business performance as we continue to strengthen our leadership position in the global smart wearables industry. Our fourth quarter results capped off a very strong year for Huami," said Wang Huang, Chairman and CEO. "Customer adoption of the Amazfit brand grew significantly in 2018 with shipment of Amazfit products almost tripled compared with 2017, which was mainly driven by Amazfit watch products. In 2018, we introduced a breakthrough in healthcare technologies by applying in wearables powered by our self-developed AI chip Huangshan-1; broadened our IOT application scenarios; and engaged with strategic partnerships such as Timex and PAI Health. We see tremendous opportunity to continue our global growth. We intend to utilize our world-class research and development capabilities, as well as our collaborative partnerships to development new, innovative products and services that ensure we remain at the forefront of our industry."

David Cui, Chief Financial Officer, said, "Strong demand for our Amazfit products and continued robust sales of the Mi Bands allowed us to deliver revenues that exceeded the high-end of our previous guidance range in the fourth quarter. In addition, a focus on competitive product development and efficient business operation generated solid profitability in the quarter. Our pipeline of cutting-edge products, broad brand awareness and growing global distribution channels position us well for 2019 and beyond."

Fourth Quarter 2018 Financial Results

Revenues increased by 62.7% to RMB1,224.6 million (US$178.1 million) from RMB752.6 million for the fourth quarter of 2017, primarily due to the increase in the sales of Xiaomi wearable products and self-branded products, driven by increased brand recognition of our products.

Cost of revenues increased by 56.3% to RMB915.6 million (US$133.2 million) from RMB585.8 million for the fourth quarter of 2017. The increase was in-line with the rapid sales growth of Xiaomi wearable products and self-branded products.

Gross profit increased by 85.2% to RMB309.0 million (US$44.9 million) from RMB166.8 million for the fourth quarter of 2017. Gross margin of 25.2% is an improvement from the fourth quarter of 2017.

Total operating expenses increased by 93.2% to RMB177.8 million (US$25.9 million) from RMB92.0 million for the fourth quarter of 2017.

Research and development expenses increased by 88.1% to RMB85.1 million (US$12.4 million) from RMB45.2 million for the fourth quarter of 2017, primarily due to the increase in R&D personnel expenses and the recruitment of new employees.

General and administrative expenses increased by 97.3% to RMB63.9 million (US$9.3 million) from RMB32.4 million for the fourth quarter of 2017, primarily due to the increase in personnel-related expenses and foreign exchange rate fluctuation.

Selling and marketing expenses increased by 100.4% to RMB28.8 million (US$4.2 million) from RMB14.3 million for the fourth quarter of 2017, primarily due to an increase in personnel-related expenses, and an increase in advertising promotion expenses for self-branded products.

Operating income was RMB131.2 million (US$19.1 million), compared with RMB74.8 million for the fourth quarter of 2017.

Income before income tax was RMB139.4 million (US$20.3 million), compared with RMB79.9 million for the fourth quarter of 2017.

Income tax expenses were RMB12.3 million (US$1.8 million), compared with RMB12.1 million for the fourth quarter of 2017.

Net income attributable to Huami Corporation totaled RMB126.0 million (US$18.3 million), compared with RMB72.3 million for the fourth quarter of 2017.

Net income attributable to ordinary shareholders of Huami Corporation increased to RMB122.4 million (US$17.8 million), compared with RMB23.9 million for the fourth quarter of 2017.

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB2.08 (US$0.30) and RMB1.97 (US$0.29), respectively, compared with RMB1.33 and RMB1.27, respectively, for the fourth quarter of 2017. Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation, which excludes share-based compensation expenses, increased by 69.3% to RMB146.5 million (US$21.3 million) from RMB86.5 million for the fourth quarter of 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB2.42 (US$0.35) and RMB2.30 (US$0.33), respectively, compared with RMB1.63 and RMB1.56, respectively, for the fourth quarter of 2017.  Each ADS represents four (4) Class A ordinary shares.

As of December 31, 2018, the Company had cash and cash equivalents of RMB1,441.8 million (US$209.7 million), compared with RMB366.3 million as of December 31, 2017.

Full Year 2018 Financial Results

Revenues increased by 77.9% to RMB3,645.3 million (US$530.2 million) from RMB2,048.9 million for the full year 2017, due to the increase in shipment volume of both Xiaomi wearable products and self-branded products and others, driven by increasing market recognition of our products.

Cost of revenues increased by 74.1% to RMB2,705.9 million (US$393.6 million) from RMB1,554.2 million for the full year 2017. The increase was in-line with the rapid sales growth of Xiaomi wearable and self-branded products.

Gross profit increased by 89.9% to RMB939.5 million (US$136.6 million) from RMB494.7 million for the full year 2017. Gross margin increased to 25.8% from 24.1% for the full year 2017. The increase was driven by improved economies of scale and the rapid growth in sales of self-branded products.

Total operating expenses increased by 83.5% to RMB573.7 million (US$83.4 million) from RMB312.7 million for the full year 2017. The Company's successful IPO and the amendment of certain vesting schedules of previously granted options triggered an acceleration of expense recognition in the full year of 2018. Excluding share-based compensation expenses, the increase is primarily due to an increase in personnel-related expenses, advertisement promotion expenses, and foreign exchange rate fluctuation. 

Research and development expenses increased by 71.1% to RMB263.2 million (US$38.3 million) from RMB153.8 million for the full year 2017, primarily due to the increase in R&D personnel-related expenses and the recruitment of new employees.

General and administrative expenses increased by 86.3% to RMB214.0 million (US$31.1 million) from RMB114.9 million for the full year 2017, primarily due to the increase in personnel-related expenses, foreign exchange rate fluctuation, and professional fees related to business expansion and operating as a public company.

Selling and marketing expenses increased by 119.3% to RMB96.5 million (US$14.0 million) from RMB44.0 million for the full year 2017, primarily due to the increase in personnel-related expenses, and the increase in advertising promotion expenses for self-branded products.  

Operating income was RMB365.7 million (US$53.2 million), compared with RMB182.0 million for the full year 2017.

Income before income tax was RMB386.6 million (US$56.2 million), compared with RMB191.9 million for the full year 2017.

Income tax expenses were RMB52.0 million (US$7.6 million), compared with RMB27.6 million for the full year 2017.

Net income attributable to Huami Corporation totaled RMB340.0 million (US$49.5 million), compared with RMB167.7 million for the full year 2017.

Net income attributable to ordinary shareholders of Huami Corporation increased to RMB316.9 million (US$46.1 million), compared with RMB46.1 million for the full year 2017.

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB5.98 (US$0.87) and RMB5.41 (US$0.79), respectively, compared with RMB2.72 and RMB2.60 respectively, for the full year 2017.  Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation, which excludes share-based compensation expenses, increased by 106.0% to RMB474.8 million (US$69.0 million) from RMB230.5 million for the full year 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB8.39 (US$1.22) and RMB7.59 (US$1.10), respectively, compared with RMB4.07 and RMB3.90, respectively, for the full year 2017.  Each ADS represents four (4) Class A ordinary shares.

Outlook

For the first quarter of 2019, the management of the Company currently expects:

- Net revenues to be between RMB750.0 million and RMB770.0 million, which would represent an increase of approximately 28.0% to 31.4% from RMB585.9 million for the first quarter of 2018.

The above outlook is based on the current market conditions and reflects Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

The Company's management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, March 14, 2019 (8:00 p.m. Beijing Time on March 14, 2019) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

US (Toll Free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (Toll Free):

400-120-1203

Hong Kong (Toll Free):

800-905-945

Hong Kong:

+852-3018-4992

Participants should dial-in at least 10 minutes before the scheduled start time and ask to be connected to the call for "Huami Corporation."

Additionally, a live and archived webcast of the conference call will be available at http://www.huami.com/investor.

A telephone replay will be available one hour after the end of the conference until March 21, 2019 by dialing the following telephone numbers:

US (Toll Free):

+1-877-344-7529

International:

+1-412-317-0088

Replay Passcode:

10129354

About Huami Corporation

Huami is a biometric and activity data-driven company with significant expertise in smart wearable technology. Since its inception in 2013, Huami has quickly established its global market leadership and recognition by shipping millions of units of smart wearable devices. In 2018, Huami shipped 27.5 million units of smart wearable devices. Huami has one of the largest biometric and activity databases in the global smart wearables industry. Huami's mobile apps work hand in hand with its smart wearable devices and provide users with a comprehensive view and analysis of their biometric and activity data. 

Use of Non-GAAP Measures

We use adjusted net income, a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expenses, and such adjustment has no impact on income tax.

We believe that adjusted net income helps identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in net income. We believe that adjusted net income provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Adjusted net income should not be considered in isolation or construed as an alternative to net income, basic and diluted net income per share attributable to ordinary shareholders of Huami Corporation or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted net income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate

The Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.8755 to US$1.00, the effective noon buying rate for December 31, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2018, or at any other rate.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the cooperation with Xiaomi, the recognition of the Company's self-branded products; the Company's growth strategies; trends and competition in global wearable technology market; changes in the Company's revenues and certain cost or expense accounting policies; governmental policies relating to the Company's industry and general economic conditions in China and the global. Further information regarding these and other risks is included in the Company's filings with the United States Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
Huami Corporation
Grace Yujia Zhang
Tel: +86-10-5940-3255
E-mail:  ir@huami.com

The Piacente Group, Inc.
Ross Warner
Tel: +86-10-5730-6201
E-mail:  huami@tpg-ir.com

In the United States:
The Piacente Group, Inc.  
Brandi Piacente
Tel: +1-212-481-2050
E-mail:  huami@tpg-ir.com

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data, or otherwise noted)




As of December 31,


As of December 31,



2017


2018



RMB


RMB


US$








Assets







Current assets:







Cash and cash equivalents


366,336


1,441,802


209,701

Restricted cash


3,185


10,010


1,456

Term deposit


-


96,969


14,104

Accounts receivable


32,867


58,925


8,570

Amounts due from related parties, current


578,454


656,399


95,469

Inventories


249,735


484,622


70,485

Short-term investments


13,721


50,482


7,342

Prepaid expenses and other current assets


51,062


58,247


8,473

Total current assets


1,295,360


2,857,456


415,600

Property, plant and equipment, net


28,755


40,042


5,824

Intangible asset, net


5,339


63,722


9,268

Goodwill


5,930


5,930


862

Long-term investments


85,238


208,949


30,390

Deferred tax assets


41,895


75,032


10,913

Other non-current assets


3,000


7,350


1,070

Total assets


1,465,517


3,258,481


473,927

 

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data, or otherwise noted)




As of December 31,       


As of December 31,



2017


2018



RMB


RMB


US$








Liabilities







Current liabilities:







Accounts payable


707,782


1,064,106


154,768

Advance from customers


10,683


5,943


864

Amount due to related parties, current


8,143


10,695


1,556

Accrued expenses and other current liabilities


93,798


213,975


31,121

Income tax payables


21,600


54,037


7,859

Notes payable


5,243


18,936


2,754

Bank borrowings


30,000


20,000


2,909

Total current liabilities


877,249


1,387,692


201,831

Deferred tax liabilities


2,470


4,962


722

Amount due to a related party, non-current


3,076


-


-

Other non-current liabilities


4,940


56,249


8,181

Total liabilities


887,735


1,448,903


210,734

 

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data, or otherwise noted)




As of December 31,


As of December 31,



2017


2018



RMB


RMB


US$








Mezzanine equity







Series A convertible redeemable participating preferred shares


26,770


-


-

Series B-1 convertible redeemable participating preferred shares


26,906


-


-

Series B-2 convertible redeemable participating preferred shares


295,942


-


-

Total mezzanine equity


349,618


-


-

Equity







Ordinary shares


56


151


22

Additional paid-in capital


72,427


1,209,056


175,850

Accumulated retained earnings


131,192


504,567


73,386

Accumulated other comprehensive income


22,100


97,141


14,129

Total Huami Corporation shareholders' equity


225,775


1,810,915


263,387

Non-controlling interests


2,389


(1,337)


(194)

Total equity


228,164


1,809,578


263,193

Total liabilities, mezzanine equity and equity


1,465,517


3,258,481


473,927

 

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data, or otherwise noted)




For the Three Months Ended December 31,



2017


2018



RMB


RMB


US$








Revenues


752,648


1,224,569


178,106

Cost of revenues


585,825


915,574


133,165

Gross profit


166,823


308,995


44,941

Operating expenses:







Selling and marketing


14,346


28,753


4,182

General and administrative


32,406


63,929


9,298

Research and development


45,237


85,069


12,373

Total operating expenses


91,989


177,751


25,853

Operating income


74,834


131,244


19,088

Other income and expenses:







Realized gain from investments


38


261


38

Interest income


1,540


6,572


956

Other income(expense)                                                                     


3,489


(6,536)


(951)

Gain from fair value change of long-term investment


-


7,860


1,143

Income before income tax


79,901


139,401


20,274

Income tax expenses


(12,149)


(12,323)


(1,792)

Income before income from equity method investments


67,752


127,078


18,482

Income /(loss) from equity method investments


4,228


(1,920)


(279)

Net income


71,980


125,158


18,203

Less: Net loss attributable to non-controlling interest


(324)


(794)


(115)

Net income attributable to Huami Corporation


72,304


125,952


18,318

Less: Accretion of Series A Preferred Shares


976


-


-

Less: Accretion of Series B-1 Preferred Shares


803


-


-

Less: Accretion of Series B-2 Preferred Shares


8,831


-


-

Less: Undistributed earnings allocated to participating preferred

shares and nonvested restricted shares


37,832


3,573


520

Net income attributable to ordinary shareholders of Huami

Corporation


23,862


122,379


17,798

Net income per share attributable to ordinary 
shareholders of Huami Corporation







Basic income per ordinary share


0.33


0.52


0.08

Diluted income per ordinary share


0.32


0.49


0.07








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







ADS – basic


1.33


2.08


0.30

ADS – diluted


1.27


1.97


0.29








Weighted average number of shares used in computing net

income per share

Ordinary share – basic


71,920,852


234,818,943


234,818,943








Ordinary share – diluted


80,507,984


248,271,059


248,271,059

 

HUAMI CORPORATION

Reconciliation of GAAP and Non-GAAP Results

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data, or otherwise noted)




For the Three Months Ended December 31,



2017


2018



RMB


RMB


US$








Net income attributable to Huami

Corporation


72,304


125,952


18,318

Share-based compensation expenses


14,212


20,498


2,982

Adjusted net income attributable to Huami 
Corporation


86,516


146,450


21,300

Less: Accretion of Series A Preferred Shares


976


-


-

Less: Accretion of Series B-1 Preferred Shares


803


-


-

Less: Accretion of Series B-2 Preferred Shares


8,831


-


-

Less: Undistributed earnings allocated to 
participating preferred shares and nonvested 
restricted shares


46,546


4,155


604

Adjusted net income attributable to ordinary 
shareholders of Huami Corporation


29,360


142,295


20,696








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







Adjusted basic income per ordinary share


0.41


0.61


0.09

Adjusted diluted income per ordinary share


0.39


0.57


0.08








Adjusted net income per ADS (4 ordinary

shares equal to 1 ADS)







ADS – basic


1.63


2.42


0.35

ADS – diluted


1.56


2.30


0.33








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







Ordinary share – basic


71,920,852


234,818,943


234,818,943

Ordinary share – diluted


80,507,984


248,271,059


248,271,059








Share-based compensation expenses included 
are follows:







Selling and marketing


-


100


15

General and administrative


13,656


16,452


2,393

Research and development


556


3,946


574

Total


14,212


20,498


2,982

 

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data, or otherwise noted)




Years ended



Dec. 31,2017


Dec. 31,2018



RMB


RMB


US$








Revenues


2,048,896


3,645,335


530,192

Cost of revenues


1,554,194


2,705,885


393,555

Gross profit


494,702


939,450


136,637

Operating expenses:







Selling and marketing


44,026


96,538


14,041

General and administrative


114,880


213,973


31,121

Research and development


153,827


263,220


38,284

Total operating expenses


312,733


573,731


83,446

Operating income


181,969


365,719


53,191

Other income and expenses:







Realized gain from investment


2,373


261


38

Interest income


3,003


11,595


1,686

Other income                                                         


4,555


1,178


171

Gain from fair value change of long-term investments


-


7,860


1,143

Income before income tax


191,900


386,613


56,229

Income tax expenses


(27,611)


(52,036)


(7,568)

Income before loss from equity method investments


164,289


334,577


48,661

Income from equity method investments


2,806


1,743


254

Net income


167,095


336,320


48,915

Less: Net loss attributable to non-controlling interest


(587)


(3,726)


(542)

Net income attributable to Huami Corporation


167,682


340,046


49,457

Less: Accretion of Series A Preferred Shares


3,762


177


26

Less: Accretion of Series B-1 Preferred Shares


3,127


368


54

Less: Accretion of Series B-2 Preferred Shares


34,382


4,049


589

Less: Undistributed earnings allocated to

participating preferred shares and nonvested restricted shares


80,291


18,540


2,697

Net income attributable to ordinary shareholders
of Huami Corporation


46,120


316,912


46,091








Net income per share attributable to
ordinary shareholders of Huami Corporation







Basic income per ordinary share


0.68


1.50


0.22

Diluted income per ordinary share


0.65


1.35


0.20








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







ADS – basic


2.72


5.98


0.87

ADS – diluted


2.60


5.41


0.79








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







Ordinary share – basic


67,777,592


211,873,704


211,873,704

Ordinary share – diluted


76,291,901


225,034,650


225,034,650

 

HUAMI CORPORATION

Reconciliation of GAAP and Non-GAAP Results

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data, or otherwise noted)




Years ended



Dec. 31,2017


Dec. 31,2018



RMB


RMB


US$








Net income attributable to Huami

Corporation


167,682


340,046


49,457

Share-based compensation expenses


62,787


134,709


19,592

Adjusted net income attributable to Huami 
Corporation


230,469


474,755


69,049

Less: Accretion of Series A Preferred Shares


3,762


177


26

Less: Accretion of Series B-1 Preferred Shares


3,127


368


54

Less: Accretion of Series B-2 Preferred Shares


34,382


4,049


589

Less: Undistributed earnings allocated t

o participating preferred shares and

nonvested restricted shares


120,169


25,985


3,779

Adjusted net income attributable to ordinary 
shareholders of Huami Corporation


69,029


444,176


64,601








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







Adjusted basic income per ordinary share


1.02


2.10


0.31

Adjusted diluted income per ordinary share


0.97


1.90


0.28








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







ADS – basic


4.07


8.39


1.22

ADS – diluted


3.90


7.59


1.10








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







Ordinary share – basic


67,777,592


211,873,704


211,873,704

Ordinary share – diluted


76,291,901


225,034,650


225,034,650








Share-based compensation expenses included 
are follows:







Cost of revenues


-


414


60

Selling and marketing


-


4,271


621

General and administrative


55,804


87,857


12,778

Research and development


6,983


42,167


6,133

Total


62,787


134,709


19,592









Cision View original content:http://www.prnewswire.com/news-releases/huami-corporation-reports-fourth-quarter-and-full-year-2018-unaudited-financial-results-300812358.html

Source: Huami Corporation
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