omniture

Huami Corporation Reports Second Quarter 2019 Unaudited Financial Results

Quarterly Revenues up 36.6% Year-over-Year to RMB1,038.7 Million, Exceeding Guidance Range
2019-08-19 17:38 7106

BEIJING, Aug. 19, 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 second quarter ended June 30, 2019.

Second Quarter 2019 Financial and Operating Highlights

  • Revenues reached RMB1,038.7 million (US$151.3 million), representing an increase of 36.6% from the second quarter of 2018.
  • Gross margin was 26.7%, compared with 25.9% for the second quarter of 2018.
  • Net income attributable to Huami Corporation was RMB89.4 million (US$13.0 million), compared with RMB85.5 million for the second quarter of 2018.
  • Basic and diluted net income per American depositary share ("ADS") attributable to ordinary shareholders of Huami Corporation was RMB1.46 (US$0.21) and RMB1.39 (US$0.20), respectively. Each ADS represents four (4) Class A ordinary shares.
  • Adjusted net income attributable to Huami Corporation[1] was RMB111.7 million (US$16.3 million).
  • Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation[2] was RMB1.83 (US$0.27) and RMB1.73 (US$0.25), respectively. Each ADS represents four (4) Class A ordinary shares.
  • Total units shipped reached 8.3 million, compared with 5.4 million in the second quarter of 2018.

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

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

First Six Months 2019 Financial and Operating Highlights

  • Revenues reached RMB1,838.3 million (US$267.8 million), representing an increase of 36.6% from the first six months of 2018.
  • Gross margin reached 26.9%, increasing from 25.5% in the first six months of 2018.
  • Net income attributable to Huami Corporation was RMB164.6 million (US$24.0 million), compared with RMB100.3 million in the first six months of 2018.
  • Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB2.71 (US$0.39) and RMB2.56 (US$0.37), respectively. Each ADS represents four (4) Class A ordinary shares.
  • Adjusted net income attributable to Huami Corporation was RMB206.7 million (US$30.1 million), up 6.5% from the first six months of 2018.
  • Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation[2] was RMB3.40 (US$0.50) and RMB3.21 (US$0.47), respectively, compared with RMB3.63 and RMB3.16, respectively, in the first six months of 2018. Each ADS represents four (4) Class A ordinary shares.
  • Total units shipped reached 13.9 million, compared with 10.1 million in the first six months of 2018.

"Solid topline revenue growth and strong profitability continued in the second quarter, as our brand, product lines, footprint and strategic initiatives, all continued to develop and expand globally," said Wang Huang, Chairman and CEO. "Our revenue performance was driven by the extremely successful second quarter launch of the Mi-Band 4, with the best sales momentum among all generations of the Mi-Band series. In addition, sales of Amazfit brand smart watches continued to outperform, with our self-branded line now ranking fifth globally in shipments, according to a recent independent market research report. Our overseas expansion was in line with the Company's strategy and expectations.

"In the second quarter, we continued to expand and diversify our product lines. In late June and July, we launched multiple smart watch products with various functionalities designed for different customer demands. Also, our self-developed AI chip Huangshan-1 was successfully incorporated in our healthcare focused smart watch product line and significantly enhanced the health monitoring functionalities. These newly launched products and technologies create a concrete foundation for our continued leadership in the development of advanced products in the smart wearables industry. With our growth strategies in place, including international expansion, further product line diversification, and especially new product launches, we have full confidence for the second half 2019."

David Cui, Chief Financial Officer, said, "Robust revenue growth momentum continued in the second quarter, increasing 36.6% year-over-year, as the Company benefited from strong unit sales, particularly with the newly launched Mi-Band 4. During the quarter, we shipped 8.3 million total units, up 53.7% from the same period last year.

"We also continued to make strategic and incremental investments in our R&D capabilities, including rigorous product testing for new launches, to ensure we remain on the cutting edge of smart wearable technology. Additionally, during the second quarter, we made further investments to build our brand equity by increasing our marketing efforts to promote broader awareness and adoption of our self-branded products. We are confident these investments, along with strong alliances, operational efficiency and a growing global footprint, will help ensure our healthy growth and solid financial performance, in both the short and long term."

Second Quarter 2019 Financial Results

Revenues increased by 36.6% to RMB1,038.7 million (US$151.3 million) from RMB760.1 million for the second quarter of 2018, driven by the continuous growth in the sales of Xiaomi wearable products, an increase in brand recognition, and the overall rise of the smart wearable products market.

Cost of revenues increased by 35.2% to RMB761.4 million (US$110.9 million) from RMB563.3 million for the second quarter of 2018. The increase was in line with the sales growth of Xiaomi wearable products.

Gross profit increased by 40.8% to RMB277.3 million (US$40.4 million) from RMB196.9 million for the second quarter of 2018. Gross margin of 26.7% for the second quarter of 2019 compares with 25.9% for the second quarter of 2018.

Total operating expenses increased to RMB185.2 million (US$27.0 million) from RMB97.9 million for the second quarter of 2018.

Research and development expenses increased by 111.4% to RMB93.8 million (US$13.7 million) from RMB44.4 million for the second quarter of 2018, primarily due to an increase in personnel-related expenses, and a rise in intermediate test expenses as several new pipeline products underwent rigorous testing.

General and administrative expenses increased by 55.6% to RMB51.0 million (US$7.4 million) from RMB32.8 million for the second quarter of 2018, primarily due to an increase in personnel-related expenses, professional fees related to business expansion, and foreign exchange rate fluctuation.

Selling and marketing expenses increased by 95.2% to RMB40.4 million (US$5.9 million) from RMB20.7 million for the second quarter of 2018, primarily due to an increase in advertising and promotion expenses for self-branded products, and personnel-related expenses.

Operating income was RMB92.1 million (US$13.4 million), compared with RMB99.0 million for the second quarter of 2018.

Income before income tax was RMB101.3 million (US$14.8 million), compared with RMB101.4 million for the second quarter of 2018.

Income tax expenses were RMB12.4 million (US$1.8 million), compared with RMB15.9 million for the second quarter of 2018.

Net income attributable to Huami Corporation totaled RMB89.4 million (US$13.0 million), compared with RMB85.5 million for the second quarter of 2018.

Net income attributable to ordinary shareholders of Huami Corporation increased to RMB89.2 million (US$13.0 million), compared with RMB80.8 million for the second quarter of 2018.

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB1.46 (US$0.21) and RMB1.39 (US$0.20), respectively. Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation, which excludes share-based compensation expenses, increased by 10.0% to RMB111.7 million (US$16.3 million) from RMB101.6 million for the second quarter of 2018.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB1.83 (US$0.27) and RMB1.73 (US$0.25), respectively. Each ADS represents four (4) Class A ordinary shares.

As of June 30, 2019, the Company had cash and cash equivalents of RMB1,450.1 million (US$211.2 million), compared with RMB1,441.8 million as of December 31, 2018.

First Six Months 2019 Financial Results

Revenues increased by 36.6% to RMB1,838.3 million (US$267.8 million) from RMB1,346.1 million in the first six months of 2018, due to an increase in shipment volumes of both Xiaomi and self-branded wearable products, driven by increased brand recognition of our products.

Cost of revenues increased by 34.0% to RMB1,343.6 million (US$195.7 million) from RMB1,002.5 million in the first six months of 2018. The increase was in line with accelerating sales growth of Xiaomi wearable products and self-branded products.

Gross profit increased by 44.0% to RMB494.8 million (US$72.1 million) from RMB343.6 million in the first six months of 2018. Gross margin increased to 26.9% from 25.5% in the first six months of 2018. The increase was driven by improved economies of scale and accelerating growth in sales of self-branded products.

Total operating expenses increased to RMB325.0 million (US$47.3 million) from RMB235.7 million in the first six months of 2018.

Research and development expenses increased by 40.6% to RMB166.1 million (US$24.2 million) from RMB118.2 million in the first six months of 2018, primarily due to an increase in personnel-related expenses, and a rise in intermediate test expenses as several new pipeline products were undergoing rigorous testing.

General and administrative expenses increased by 17.4% to RMB96.3 million (US$14.0 million) from RMB82.1 million in the first six months of 2018, primarily due to an increase in personnel-related expenses, professional fees for business expansion, and foreign exchange rate fluctuation.

Selling and marketing expenses increased by 76.6% to RMB62.6 million (US$9.1 million) from RMB35.4 million in the first six months of 2018, primarily due to an increase in advertising and promotional expenses for self-branded products as well as personnel-related expenses.

Operating income was RMB169.7 million (US$24.7 million), compared with RMB107.8 million in the first six months of 2018.

Income before income tax was RMB186.8 million (US$27.2 million), compared with RMB117.9 million in the first six months of 2018.

Income tax expenses were RMB23.0 million (US$3.4 million), compared with RMB18.6 million in the first six months of 2018.

Net income attributable to Huami Corporation totaled RMB164.6 million (US$24.0 million), compared with RMB100.3 million in the first six months of 2018.

Net income attributable to ordinary shareholders of Huami Corporation improved to RMB163.2 million (US$23.8 million), compared with RMB114.1 million net loss in the first six months of 2018, which included the impact of deemed dividend to preferred shareholders.

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB2.71 (US$0.39) and RMB2.56 (US$0.37), respectively, compared with RMB2.40 and RMB2.40 net loss, respectively, in the first six months of 2018. Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation, which excludes share-based compensation expenses, increased by 6.5% to RMB206.7 million (US$30.1 million) from RMB194.1 million in the first six months of 2018.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB3.40 (US$0.50) and RMB3.21 (US$0.47), respectively, compared with RMB3.63 and RMB3.16, respectively, in the first six months of 2018. Each ADS represents four (4) Class A ordinary shares.

Outlook

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

-  Net revenues to be between RMB1.64 billion and RMB1.67 billion, which would represent an increase of approximately 52.6% to 55.4% from RMB1,074.7 million for the third quarter of 2018.

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 Time on Monday, August 19, 2019 (8:00 p.m. Beijing Time on August 19, 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 two hours after the call until August 26, 2019 by dialing:

US Toll Free:

1-877-344-7529

International:

1-412-317-0088

Replay Passcode:

10134015

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

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

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

Exchange Rate

The Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB 6.8650 to US$1.00, the effective noon buying rate for June 28, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 28, 2019, or at any other rate.

Safe Harbor Statement

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

For investor and media inquiries, please contact:

In China:
Huami Corporation
Grace Yujia Zhang
E-mail: ir@huami.com

The Piacente Group, Inc.
Ross Warner
Tel: +86-10-6508-0677
E-mail: huami@tpg-ir.com

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

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

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









As of December 31,


As of June 30,



2018


2019



RMB


RMB


US$















Assets







Current assets:







Cash and cash equivalents


1,441,802


1,450,125


211,235

Restricted cash


10,010


1,908


278

Term deposit


96,969


-


-

Accounts receivable


58,925


83,558


12,172

Amounts due from related parties, current


656,399


741,136


107,959

Inventories


484,622


541,956


78,945

Short-term investments


50,482


43,738


6,371

Prepaid expenses and other current assets


58,247


45,308


6,600

Total current assets


2,857,456


2,907,729


423,560








Property, plant and equipment, net


40,042


50,567


7,366

Intangible asset, net


63,722


90,066


13,120

Goodwill


5,930


5,930


864

Long-term investments


208,949


358,594


52,235

Deferred tax assets


75,032


94,952


13,831

Other non-current assets


7,350


10,051


1,464

Non-current operating lease right-of-use assets


-


34,162


4,976

Total assets


3,258,481


3,552,051


517,416

 

 

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,



2018


2019



RMB


RMB


US$








Liabilities







Current liabilities:







Accounts payable


1,064,106


1,066,395


155,338

Advance from customers


5,943


10,191


1,485

Amount due to related parties, current


10,695


12,065


1,758

Accrued expenses and other current liabilities


213,975


226,264


32,959

Income tax payables


54,037


24,801


3,613

Notes payable


18,936


4,770


695

Bank borrowings


20,000


-


-

Current operating lease liabilities


-


18,461


2,689

Total current liabilities


1,387,692


1,362,947


198,537

Deferred tax liabilities


4,962


4,868


709

Other non-current liabilities


56,249


111,856


16,295

Non-current operating lease liabilities


-


13,177


1,919

Total liabilities


1,448,903


1,492,848


217,460

 

 

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,



2018


2019



RMB


RMB


US$








Equity







Ordinary shares


151


154


22

Additional paid-in capital


1,373,577


1,464,880


213,384

Accumulated retained earnings


340,046


500,156


72,856

Accumulated other comprehensive income


97,141


96,441


14,048

Total Huami Corporation shareholders' equity


1,810,915


2,061,631


300,310

Non-controlling interests


(1,337)


(2,428)


(354)

Total equity


1,809,578


2,059,203


299,956

Total liabilities and equity


3,258,481


3,552,051


517,416

 

 

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,



2018


2019



RMB


RMB


US$








Revenues


760,139


1,038,715


151,306

Cost of revenues


563,254


761,421


110,913

Gross profit


196,885


277,294


40,393

Operating expenses:







Selling and marketing


20,704


40,405


5,886

General and administrative


32,803


51,030


7,433

Research and development


44,355


93,751


13,656

Total operating expenses


97,862


185,186


26,975

Operating income


99,023


92,108


13,418

Other income and expenses:







Interest income


1,981


4,803


700

Other income


391


4,351


634

Income before income tax


101,395


101,262


14,752

Income tax expenses


(15,874)


(12,352)


(1,799)

Income before loss from equity method investments


85,521


88,910


12,953

Loss from equity method investments


(743)


(265)


(39)

Net income


84,778


88,645


12,914

Less: Net loss attributable to non-controlling interest


(736)


(719)


(105)

Net income attributable to Huami Corporation


85,514


89,364


13,019

Less: Accretion of Series A Preferred Shares


-


-


-

Less: Accretion of Series B-1 Preferred Shares


-


-


-

Less: Accretion of Series B-2 Preferred Shares


-


-


-

Less: Deemed Dividend for Preferred Shares


-


-


-

Less: Undistributed earnings allocated to
participating nonvested restricted shares


4,722


190


28

Net income attributable to ordinary shareholders of Huami
Corporation


80,792


89,174


12,991

Net income per share attributable to ordinary 







shareholders of Huami Corporation







Basic income per ordinary share


0.36


0.37


0.05

Diluted income per ordinary share


0.34


0.35


0.05








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







ADS – basic


1.42


1.46


0.21

ADS – diluted


1.35


1.39


0.20








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







Ordinary share – basic


227,464,737


243,596,530


243,596,530

Ordinary share – diluted


239,639,643


257,455,618


257,455,618

 

 

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



2018


2019



RMB


RMB


US$

Net income attributable to Huami
Corporation


85,514


89,364


13,019

Share-based compensation expenses


16,051


22,355


3,256

Adjusted net income attributable to Huami 
Corporation


101,565


111,719


16,275

















For the Three Months Ended June 30,



2018


2019



RMB


RMB


US$








Net income attributable to ordinary
shareholders of Huami Corporation


80,792


89,174


12,991

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


15,164


22,307


3,249

Adjusted net income attributable to ordinary 
shareholders of Huami Corporation
[2]


95,956


111,481


16,240








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







Adjusted basic income per ordinary share


0.42


0.46


0.07

Adjusted diluted income per ordinary share


0.40


0.43


0.06








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







ADS – basic


1.69


1.83


0.27

ADS – diluted


1.61


1.73


0.25








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







Ordinary share – basic


227,464,737


243,596,530


243,596,530

Ordinary share – diluted


239,639,643


257,455,618


257,455,618








Share-based compensation expenses included 
are follows:







Cost of revenues


78


37


5

Selling and marketing


49


1,579


230

General and administrative


15,053


14,973


2,181

Research and development


871


5,766


840

Total


16,051


22,355


3,256

 

 

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,



2018


2019



RMB


RMB


US$








Revenues


1,346,059


1,838,311


267,780

Cost of revenues


1,002,500


1,343,554


195,711

Gross profit


343,559


494,757


72,069

Operating expenses:







Selling and marketing


35,444


62,588


9,117

General and administrative


82,073


96,322


14,031

Research and development


118,193


166,131


24,200

Total operating expenses


235,710


325,041


47,348

Operating income


107,849


169,716


24,721

Other income and expenses:







Interest income


3,375


12,293


1,791

Other income


6,628


4,813


701

Income before income tax


117,852


186,822


27,213

Income tax expenses


(18,618)


(23,034)


(3,355)

Income before loss from equity method investments


99,234


163,788


23,858

Loss from equity method investments


(736)


(231)


(34)

Net income


98,498


163,557


23,824

Less: Net loss attributable to non-controlling interest


(1,784)


(1,091)


(159)

Net income attributable to Huami Corporation


100,282


164,648


23,983

Less: Accretion of Series A Preferred Shares


177


-


-

Less: Accretion of Series B-1 Preferred Shares


368


-


-

Less: Accretion of Series B-2 Preferred Shares


4,049


-


-

Less: Deemed Dividend for Preferred Shares


209,752


-


-

Less: Undistributed earnings allocated to
participating nonvested restricted shares


-


1,425


208

Net (loss) income attributable to ordinary shareholders
of Huami Corporation


(114,064)


163,223


23,775

Net income per share attributable to ordinary 
shareholders of Huami Corporation







Basic (loss) income per ordinary share


(0.60)


0.68


0.10

Diluted (loss) income per ordinary share


(0.60)


0.64


0.09








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







ADS – basic


(2.40)


2.71


0.39

ADS – diluted


(2.40)


2.56


0.37








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

Ordinary share – basic


190,397,570


240,817,983


240,817,983

Ordinary share – diluted


190,397,570


255,237,925


255,237,925

 

 

 

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



2018


2019



RMB


RMB


US$

Net income attributable to Huami
Corporation


100,282


164,648


23,983

Share-based compensation expenses


93,807


42,088


6,131

Adjusted net income attributable to Huami 
Corporation


194,089


206,736


30,114

















For the Six Months Ended June 30,



2018


2019



RMB


RMB


US$








Net (loss) income attributable to ordinary
shareholders of Huami Corporation


(114,064)


163,223


23,775

Share-based compensation expenses attributable

to ordinary shareholders of Huami Corporation


76,973


41,724


6,078

Deemed Dividend for Preferred shares


209,752


-


-

Adjusted net income attributable to ordinary 
shareholders of Huami Corporation
[2]


172,661


204,947


29,853








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







Adjusted basic income per ordinary share


0.91


0.85


0.12

Adjusted diluted income per ordinary share


0.79


0.80


0.12








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







ADS – basic


3.63


3.40


0.50

ADS – diluted


3.16


3.21


0.47








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







Ordinary share – basic


190,397,570


240,817,983


240,817,983

Ordinary share – diluted


202,203,360


255,237,925


255,237,925








Share-based compensation expenses included 
are follows:







Cost of revenues


410


39


6

Selling and marketing


4,111


1,910


278

General and administrative


52,063


32,409


4,721

Research and development


37,223


7,730


1,126

Total


93,807


42,088


6,131

 

Cision View original content:http://www.prnewswire.com/news-releases/huami-corporation-reports-second-quarter-2019-unaudited-financial-results-300903399.html

Source: Huami Corporation
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