Huami Released 2019 Q2 Financial Report: Shipments of 8.3 Million Units

Huami Technology (Nasdaq: HMI) today released the second-quarter financial report as of June 30, the revenue of 1.0387 billion yuan (about $151.3 million), an increase of 36.6 %. Net profit attributable to Huami was RMB 89.4 million (approximately $13 million) compared to RMB 85.5 million in the same period last year. The adjusted net profit attributable to Huami was RMB 111.7 million ($16.3 million), an increase of 10.0% over the same period of the previous year.

Second Quarter Results Summary:

Revenue was RMB 1,388.7 million ($151.3 million), a year-on-year increase of 36.6%.

The gross profit margin was 26.7%, compared with 25.9% in the same period last year.

Net profit attributable to Huami was RMB 89.4 million (approximately $13 million) compared to RMB 85.5 million in the same period last year.

The basic and diluted earnings per share attributable to ordinary shareholders were RMB 1.46 ($0.21) and RMB 1.39 ($0.20), respectively, compared with RMB 1.42 ($0.21) for the same period last year and RMB 1.35 (about $0.20).

Not according to US GAAP, the adjusted net profit attributable to Huami was RMB 111.7 million ($16.3 million), an increase of 10.0% over the same period of the previous year.

Not according to US GAAP, the basic and diluted earnings per share attributable to ordinary shareholders were RMB 1.83 ($0.27) and RMB 1.73 ($0.25), compared with RMB 1.69 for the same period last year (about $0.26) and RMB1.61 (about $0.24).

Total equipment shipments were 8.3 million units, compared with 5.4 million units in the same period last year.

Summary of results for the first six months of this year:

Revenue was RMB 1,838.3 million ($267.8 million), a year-on-year increase of 36.6%.

The gross profit margin was 26.9%, compared to 25.5% in the same period last year.

Net profit attributable to Huami was RMB 164.6 million (approximately $ 24 million), compared to RMB 100.3 million for the same period last year.

The basic and diluted earnings per share attributable to ordinary shareholders were RMB 2.71 (approximately $ 0.39) and RMB 2.56 (approximately $ 0.37).

Not according to US GAAP, the adjusted net profit attributable to Huami was RMB 206.7 million ($30.1 million), an increase of 6.5% over the same period of the previous year.

Not according to US GAAP, the basic and diluted earnings per share attributable to ordinary shareholders were RMB 3.40 ($0.50) and RMB 3.21 ($0.47), respectively, compared with RMB 3.63 for the same period last year (about $0.55) and RMB 3.16 (about $0.48).

Total equipment shipments were 13.9 million units, compared to 10.1 million units in the same period last year.

Second-quarter performance analysis:

Revenue was RMB 1,388.7 million ($151.3 million), an increase of 36.6% compared with RMB 760.1 million in the same period last year.

The revenue cost was RMB 761.4 million (approximately $110.9 million), an increase of 35.2% compared with RMB 563.3 million in the same period last year.

Gross profit was RMB 277.3 million ($40.4 million), an increase of 40.8% compared with RMB 196.9 million in the same period last year. The gross profit margin was 26.7%, compared to 25.9% in the same period last year.

Total operating expenses were RMB 185.2 million (approximately $ 27 million) compared to RMB 97.9 million for the same period last year.

R&D expenditure was RMB 93.8 million (approximately $13.7 million), an increase of 111.4% compared with RMB 44.4 million in the same period last year.

General and administrative expenses were RMB 51 million (approximately $ 7.4 million), an increase of 55.6% compared with RMB 32.8 million in the same period last year.

Sales and marketing expenses were RMB 40.4 million ($5.9 million), an increase of 95.2% compared with RMB 20.7 million in the same period last year.

Operating profit was RMB 92.1 million (approximately $13.4 million) while operating profit for the same period last year was RMB 99 million.

Profit before tax was RMB 101.3 million (approximately $14.8 million), while profit before tax for the same period last year was RMB 101.4 million.

Income tax expense was RMB12.4 million (approximately $1.8 million), compared to RMB 15.9 million for the same period last year.

The net profit attributable to Huami Ordinary Shareholders was RMB 89.2 million (approximately $13 million), compared to RMB 80.8 million in the same period last year.

Net profit attributable to Huami was RMB 89.4 million (approximately $13 million) compared to RMB 85.5 million in the same period last year.

The basic and diluted earnings per share attributable to ordinary shareholders were RMB 1.46 ($0.21) and RMB 1.39 ($0.20), respectively, compared with RMB 1.42 ($0.21) for the same period last year and RMB 1.35 (about $0.20).

Not according to US GAAP, the adjusted net profit attributable to Huami was RMB 111.7 million ($16.3 million), an increase of 10.0% from RMB 101.6 million in the same period last year.

Not according to US GAAP, the basic and diluted earnings per share attributable to ordinary shareholders were RMB 1.83 ($0.27) and RMB 1.73 ($0.25), compared with RMB 1.69 for the same period last year (about $0.26) and RMB1.61 (about $0.24).

As of June 30, 2019, Huami had cash and cash equivalents of RMB 1,455.1 million ($211.2 million), and as of December 31, 2018, it was RMB 1,441.8 million.

Performance outlook:

Huami expects net revenue in the third quarter of 2019 to reach RMB 1.64 billion to 1.67 billion, an increase of 52.6% to 55.4% compared with RMB 1.747 billion in the same period last year.