Huami Corporation Reports Third Quarter 2019 Unaudited Financial Results
BEIJING, Nov. 12, 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 third quarter ended September 30, 2019.
Third Quarter 2019 Financial and Operating Highlights
-- Revenues reached RMB1,862.5 million (US$260.6 million), representing an increase of 73.3% from the third quarter of 2018. -- Gross margin was 25.2%, compared with 26.7% for the third quarter of 2018. -- Net income attributable to Huami Corporation was RMB203.3 million (US$28.4 million), compared with RMB113.8 million for the third quarter of 2018. -- Basic and diluted net income per American depositary share ("ADS") attributable to ordinary shareholders of Huami Corporation was RMB3.31 (US$0.46) and RMB3.15 (US$0.44), respectively. Each ADS represents four (4) Class A ordinary shares. -- Adjusted net income attributable to Huami Corporation([1]) was RMB209.8 million (US$29.4 million). -- Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation([2]) was RMB3.41 (US$0.48) and RMB3.25 (US$0.45), respectively. Each ADS represents four (4) Class A ordinary shares. -- Total units shipped reached 13.7 million, compared with 8.2 million in the third quarter of 2018.
First Nine Months 2019 Financial and Operating Highlights
-- Revenues reached RMB3,700.8 million (US$517.8 million), representing an increase of 52.9% from the first nine months of 2018. -- Gross margin reached 26.1%, increasing from 26.0% in the first nine months of 2018. -- Net income attributable to Huami Corporation was RMB368.0 million (US$51.5 million), compared with RMB214.1 million in the first nine months of 2018. -- Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB6.03 (US$0.84) and RMB5.73 (US$0.80), respectively. Each ADS represents four (4) Class A ordinary shares. -- Adjusted net income attributable to Huami Corporation was RMB416.6 million (US$58.3 million), compared with RMB328.3 million in the first nine months of 2018. -- Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation([2]) was RMB6.83 (US$0.96) and RMB6.49 (US$0.91), respectively, compared with RMB5.92 and RMB5.30, respectively, in the first nine months of 2018. Each ADS represents four (4) Class A ordinary shares. -- Total units shipped reached 27.6 million, compared with 18.3 million in the first nine months 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.
"Our persistent execution of strategic initiatives focused on product diversification, brand elevation, and international expansion, continues to pay off, driving outstanding top-line and bottom-line growth in the third quarter," said Wang Huang, Chairman and CEO. "Our revenue performance was primarily the result of the strong sales of both the Mi-Band 4 and our newly released Amazfit products, as both brand categories become increasingly recognized by consumers. Our international shipments keep on climbing, underpinned by our first international product launch event in Berlin, Germany and numerous global product design awards we received. We view the overseas marketing campaign as an essential strategy for our growth with additional global product launches being planned for future dates.
"In the third quarter, we leveraged our expertise in smart wearable hardware and big data analytics to further optimize algorithms for our cloud-based healthcare services. The accuracy and effectiveness of our healthcare service offering has been testified by top physicians in China. A recent research published at the 2019 Asia Pacific Heart Rhythm Society by Peking University First Hospital, showed that Huami smart wearables manage to detect atrial fibrillation at an accuracy rate of approximately 94%, similar to the accuracy of professional physicians. Looking ahead, we will continue investing in and improving our R&D capabilities as well as seek new strategic partnerships, all while maintaining our close relationship with Xiaomi. With all of these efforts, we strive to provide users a better experience in sports and healthcare services, as they integrate our smart products and services into their daily lives."
David Cui, Chief Financial Officer, said, "We are very pleased with the robust financial results in the third quarter, with revenues growing 73.3% year-over-year and net income attributed to Huami Corporation also increasing strongly year-over-year at 78.7%, as we benefited from strong unit sales, particularly with increasing global demand for both Mi-Band 4 and our newly launched Amazfit products. During this quarter, we shipped 13.7 million total units, up 67.1% from the same period last year.
"Along with revenue expansion, our operating efficiency also improved in the quarter, with operating expense as a percentage of revenues at 13.5% during the quarter, declining 4.3 and 1.4 percentage points respectively from the second quarter 2019 and the third quarter last year, despite our increasing investment in R&D capabilities and brand equity during the quarter. As we further diversify our product lines, strengthen our service offerings, form and solidify strategic alliances, and grow our global footprint, we are confident in our ability to continue delivering healthy financial and operating performance going forward."
Third Quarter 2019 Financial Results
Revenues increased by 73.3% to RMB1,862.5 million (US$260.6 million) from RMB1,074.7 million for the third quarter of 2018, driven by continued sales growth of Xiaomi and self-branded wearable products, an increase in overall brand recognition and the global rise in the adoption of smart wearable products.
Cost of revenues increased by 76.8% to RMB1,392.7 million (US$194.8 million) from RMB787.8 million for the third quarter of 2018. The increase was in line with the sales growth of Xiaomi and self-branded wearable products.
Gross profit increased by 63.8% to RMB469.9 million (US$65.7 million) from RMB286.9 million for the third quarter of 2018. Gross margin of 25.2% for the third quarter of 2019, compared with 26.7% for the third quarter of 2018.
Total operating expenses increased to RMB250.7 million (US$35.1 million) from RMB160.3 million for the third quarter of 2018.
Research and development expenses increased by 107.7% to RMB124.5 million (US$17.4 million) from RMB60.0 million for the third quarter of 2018, primarily due to an increase in the number of R&D staff and a rise in testing costs associated with future products.
General and administrative expenses increased to RMB69.6 million (US$9.7 million) from RMB68.0 million for the third quarter of 2018, primarily due to an increase in personnel-related expenses and professional fees related to business expansion, offset by a decrease in share-based compensation.
Selling and marketing expenses increased by 75.1% to RMB56.6 million (US$7.9 million) from RMB32.3 million for the third quarter of 2018, primarily due to an increase in advertising and promotional expenses for new self-branded products and growth in personnel-related expenses.
Operating income was RMB219.1 million (US$30.7 million), compared with RMB126.6 million for the third quarter of 2018.
Income before income tax was RMB228.1 million (US$31.9 million), compared with RMB129.4 million for the third quarter of 2018.
Income tax expenses were RMB27.5 million (US$3.9 million), compared with RMB21.1 million for the third quarter of 2018.
Net income attributable to Huami Corporation totaled RMB203.3 million (US$28.4 million), compared with RMB113.8 million for the third quarter of 2018.
Net income attributable to ordinary shareholders of Huami Corporation increased to RMB203.3 million (US$28.4 million), compared with RMB109.1 million for the third quarter of 2018.
Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB3.31 (US$0.46) and RMB3.15 (US$0.44), 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 56.3% to RMB209.8 million (US$29.4 million) from RMB134.2 million for the third quarter of 2018.
Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB3.41 (US$0.48) and RMB3.25 (US$0.45), respectively. Each ADS represents four (4) Class A ordinary shares.
As of September 30, 2019, the Company had cash and cash equivalents of RMB1,719.8 million (US$240.6 million), compared with RMB1,441.8 million as of December 31, 2018.
First Nine Months 2019 Financial Results
Revenues increased by 52.9% to RMB3,700.8 million (US$517.8 million) from RMB2,420.8 million in the first nine months of 2018, due to the growth of Xiaomi and self-branded wearable products, an increase in overall brand recognition and the global rise in the adoption of smart wearable products.
Cost of revenues increased by 52.8% to RMB2,736.2 million (US$382.8 million) from RMB1,790.3 million in the first nine months of 2018. The increase was in line with accelerating sales growth of both Xiaomi and self-branded wearable products.
Gross profit increased by 53.0% to RMB964.6 million (US$135.0 million) from RMB630.5 million in the first nine months of 2018. Gross margin increased to 26.1% from 26.0% in the first nine months of 2018.
Total operating expenses increased to RMB575.8 million (US$80.6 million) from RMB396.0 million in the first nine months of 2018.
Research and development expenses increased by 63.2% to RMB290.7 million (US$40.7 million) from RMB178.2 million in the first nine months of 2018, primarily due to an increase in personnel-related expenses and a rise in testing costs associated with future products.
General and administrative expenses increased by 10.6% to RMB165.9 million (US$23.2 million) from RMB150.0 million in the first nine months of 2018, primarily due to an increase in personnel-related expenses, professional fees related to business expansion, offsetting by the decrease of share-based compensation.
Selling and marketing expenses increased by 75.9% to RMB119.2 million (US$16.7 million) from RMB67.8 million in the first nine 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 RMB388.8 million (US$54.4 million), compared with RMB234.5 million in the first nine months of 2018.
Income before income tax was RMB414.9 million (US$58.0 million), compared with RMB247.2 million in the first nine months of 2018.
Income tax expenses were RMB50.6 million (US$7.1 million), compared with RMB39.7 million in the first nine months of 2018.
Net income attributable to Huami Corporation totaled RMB368.0 million (US$51.5 million), compared with RMB214.1 million in the first nine months of 2018.
Net income attributable to ordinary shareholders of Huami Corporation improved to RMB365.9 million (US$51.2 million), compared with a net loss of RMB0.3 million in the first nine 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 RMB6.03 (US$0.84) and RMB5.73 (US$0.80), 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 26.9% to RMB416.6 million (US$58.3 million) from RMB328.3 million in the first nine months of 2018.
Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB6.83 (US$0.96) and RMB6.49 (US$0.91), respectively, compared with RMB5.92 and RMB5.30, respectively, in the first nine months of 2018. Each ADS represents four (4) Class A ordinary shares.
Outlook
For the fourth quarter of 2019, the management of the Company currently expects:
- Net revenues to be between RMB1.93 billion and RMB1.95 billion, which would represent an increase of approximately 57.6% to 59.2% from RMB1,224.6 million for the fourth 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 7:30 a.m. Eastern Standard Time on Tuesday, November 12, 2019 (8:30 p.m. Beijing Time on November 12, 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 November 19, 2019 by dialing:
US Toll Free: +1-877-344-7529 International: +1-412-317-0088 Replay Passcode: 10136554
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 7.1477 to US$1.00, the effective noon buying rate for September 30, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on September 30, 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$") except for number of shares and per share data, or otherwise noted) As of December 31, As of September 30, 2018 2019 RMB RMB US$ Assets Current assets: Cash and cash equivalents 1,441,802 1,719,807 240,610 Restricted cash 10,010 498 70 Term deposit 96,969 Accounts receivable 58,925 111,877 15,652 Amounts due from related parties, current 656,399 1,226,396 171,579 Inventories 484,622 854,010 119,480 Short-term investments 50,482 22,102 3,092 Prepaid expenses and other current assets 58,247 43,049 6,023 Total current assets 2,857,456 3,977,739 556,506 Property, plant and equipment, net 40,042 56,171 7,859 Intangible asset, net 63,722 87,926 12,301 Goodwill 5,930 5,930 830 Long-term investments 208,949 407,382 56,995 Deferred tax assets 75,032 106,344 14,878 Other non-current assets 7,350 10,816 1,513 Noncurrent operating lease right-of-use assets 112,109 15,685 Total assets 3,258,481 4,764,417 666,567
HUAMI CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares and per share data, or otherwise noted) As of December 31, As of September 30, 2018 2019 RMB RMB US$ Liabilities Current liabilities: Accounts payable 1,064,106 1,887,379 264,054 Advance from customers 5,943 41,307 5,779 Amount due to related parties, current 10,695 13,170 1,843 Accrued expenses and other current liabilities 213,975 236,660 33,110 Income tax payables 54,037 53,059 7,423 Notes payable 18,936 1,245 174 Bank borrowings 20,000 Current operating lease liabilities 30,017 4,200 Total current liabilities 1,387,692 2,262,837 316,583 Deferred tax liabilities 4,962 5,648 790 Other non-current liabilities 56,249 111,856 15,649 Noncurrent operating lease liabilities 80,181 11,218 Total liabilities 1,448,903 2,460,522 344,240
HUAMI CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares and per share data, or otherwise noted) As of December 31, As of September 30, 2018 2019 RMB RMB US$ Equity Ordinary shares 151 154 22 Additional paid-in capital 1,373,577 1,472,299 205,982 Accumulated retained earnings 340,046 703,493 98,422 Accumulated other comprehensive income 97,141 130,300 18,230 Total Huami Corporation shareholders' equity 1,810,915 2,306,246 322,656 Non-controlling interests (1,337) (2,351) (329) Total equity 1,809,578 2,303,895 322,327 Total liabilities and equity 3,258,481 4,764,417 666,567
HUAMI CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares and per share data, or otherwise noted) For the Three Months Ended September 30, 2018 2019 RMB RMB US$ Revenues 1,074,707 1,862,531 260,578 Cost of revenues 787,811 1,392,670 194,842 Gross profit 286,896 469,861 65,736 Operating expenses: Selling and marketing 32,341 56,631 7,923 General and administrative 67,971 69,578 9,734 Research and development 59,958 124,538 17,424 Total operating expenses 160,270 250,747 35,081 Operating income 126,626 219,114 30,655 Other income and expenses: Interest income 1,648 10,911 1,527 Other income (expenses), net 1,086 (1,971) (276) Income before income tax 129,360 228,054 31,906 Income tax expenses (21,095) (27,518) (3,850) Income before loss from equity method investments 108,265 200,536 28,056 Income from equity method investments 4,399 2,878 403 Net income 112,664 203,414 28,459 Less: Net (loss) income attributable to non- controlling interest (1,148) 77 11 Net income attributable to Huami Corporation 113,812 203,337 28,448 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 4,759 restricted shares Net income attributable to ordinary shareholders of Huami 109,053 203,337 28,448 Corporation Net income per share attributable to ordinary shareholders of Huami Corporation Basic income per ordinary share 0.47 0.83 0.12 Diluted income per ordinary share 0.45 0.79 0.11 Net income per ADS (4 ordinary shares equal to 1 ADS) ADS - basic 1.89 3.31 0.46 ADS - diluted 1.79 3.15 0.44 Weighted average number of shares used in computing net income per share Ordinary share - basic 231,062,447 245,934,981 245,934,981 Ordinary share - diluted 244,537,743 258,343,485 258,343,485
HUAMI CORPORATION Reconciliation of GAAP and Non-GAAP Results (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares and per share data, or otherwise noted) For the Three Months Ended September 30 2018 2019 RMB RMB US$ Net income attributable to Huami Corporation 113,812 203,337 28,448 Share-based compensation expenses 20,404 6,491 909 Adjusted net income attributable to Huami 134,216 209,828 29,357 Corporation For the Three Months Ended September 30, 2018 2019 RMB RMB US$ Net income attributable to ordinary shareholders 109,053 203,337 28,448 of Huami Corporation Share-based compensation expenses attributable to 19,550 6,491 909 ordinary shareholders of Huami Corporation Adjusted net income attributable to ordinary 128,603 209,828 29,357 shareholders of Huami Corporation [2] Adjusted net income per share attributable to ordinary shareholders of Huami Corporation Adjusted basic income per ordinary share 0.56 0.85 0.12 Adjusted diluted income per ordinary share 0.53 0.81 0.11 Adjusted net income per ADS (4 ordinary shares equal to 1 ADS) ADS - basic 2.23 3.41 0.48 ADS - diluted 2.11 3.25 0.45 Weighted average number of shares used in computing net income per share Ordinary share - basic 231,062,447 245,934,981 245,934,981 Ordinary share - diluted 244,537,743 258,343,485 258,343,485 Share-based compensation expenses included are follows: Cost of revenues 5 8 1 Selling and marketing 61 647 91 General and administrative 19,340 4,130 578 Research and development 998 1,706 239 Total 20,404 6,491 909
HUAMI CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares and per share data, or otherwise noted) For the Nine Months Ended September 30, 2018 2019 RMB RMB US$ Revenues 2,420,766 3,700,842 517,767 Cost of revenues 1,790,311 2,736,224 382,812 Gross profit 630,455 964,618 134,955 Operating expenses: Selling and marketing 67,785 119,219 16,679 General and administrative 150,044 165,900 23,210 Research and development 178,151 290,669 40,666 Total operating expenses 395,980 575,788 80,555 Operating income 234,475 388,830 54,400 Other income and expenses: Interest income 5,023 23,204 3,246 Other income, net 7,714 2,842 398 Income before income tax 247,212 414,876 58,044 Income tax expenses (39,713) (50,552) (7,072) Income before loss from equity method investments 207,499 364,324 50,972 Income from equity method investments 3,663 2,647 370 Net income 211,162 366,971 51,342 Less: Net loss attributable to non- controlling interest (2,932) (1,014) (142) Net income attributable to Huami Corporation 214,094 367,985 51,484 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 2,102 294 restricted shares Net (loss) income attributable to ordinary shareholders of Huami (252) 365,883 51,190 Corporation Net income per share attributable to ordinary shareholders of Huami Corporation Basic income per ordinary share (0.00) 1.51 0.21 Diluted income per ordinary share (0.00) 1.43 0.20 Net income per ADS (4 ordinary shares equal to 1 ADS) ADS - basic (0.00) 6.03 0.84 ADS - diluted (0.00) 5.73 0.80 Weighted average number of shares used in computing net income per share Ordinary share - basic 204,101,485 242,542,392 242,542,392 Ordinary share - diluted 204,101,485 255,322,189 255,322,189
HUAMI CORPORATION Reconciliation of GAAP and Non-GAAP Results (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares and per share data, or otherwise noted) For the Nine Months Ended September 30 2018 2019 RMB RMB US$ Net income attributable to Huami Corporation 214,094 367,985 51,484 Share-based compensation expenses 114,211 48,579 6,797 Adjusted net income attributable to Huami 328,305 416,564 58,281 Corporation For the Nine Months Ended September 30, 2018 2019 RMB RMB US$ Net (loss) income attributable to ordinary shareholders (252) 365,883 51,190 of Huami Corporation Share-based compensation expenses attributable 92,441 48,301 6,758 to ordinary shareholders of Huami Corporation Deemed Dividend for Preferred shares 209,752 Adjusted net income attributable to ordinary 301,941 414,184 57,948 shareholders of Huami Corporation [2] Adjusted net income per share attributable to ordinary shareholders of Huami Corporation Adjusted basic income per ordinary share 1.48 1.71 0.24 Adjusted diluted income per ordinary share 1.32 1.62 0.23 Adjusted net income per ADS (4 ordinary shares equal to 1 ADS) ADS - basic 5.92 6.83 0.96 ADS - diluted 5.30 6.49 0.91 Weighted average number of shares used in computing net income per share Ordinary share - basic 204,101,485 242,542,392 242,542,392 Ordinary share - diluted 216,264,202 255,322,189 255,322,189 Share-based compensation expenses included are follows: Cost of revenues 415 47 7 Selling and marketing 4,172 2,557 358 General and administrative 71,403 36,539 5,112 Research and development 38,221 9,436 1,320 Total 114,211 48,579 6,797
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SOURCE Huami Corporation