Huami Technology today released its second quarter earnings report for fiscal year 2018 ended June 30, with revenue of 760,1 million yuan ($ 114,9 million), an increase of 54,8%. every year. At the same time, its net profit was 85,5 million yuan ($ 12,9 million). Last year, this indicator was 49,7 million yuan (7,24 million dollars). Based on non-GAAP (Generally Accepted Accounting Principles), net profit attributable to Huami was 101,6 million ($ 15,3 million), an increase of 57,8% over the same period last year .
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Summary of the results of the second quarter
- The turnover was 760,1 million ($ 114,9 million), with an increase of 54,8% on an annual basis.
- The gross profit margin was 25,9%, substantially the same period of the previous year.
- The net profit attributable to Huami was 85,5 million ($ 12,9 million), compared to 49,7 million yuan of the same period last year.
- Based on non-GAAP, the net profit attributable to Huami was 101,6 million ($ 15,3 million), with an increase of 57,8% compared to the same period of the previous year.
- Based on non-GAAP, the basic and diluted earnings per share attributable to ordinary shareholders were respectively 1,69 yuan (0,26 $) and 1,61 yuan (0,24 $) compared to 1,17 yuan (0,17 $) and 1,12 yuan (0,16 $) for the same period of the year.
- Total shipments of equipment (smart wearables) were 5,4 million units, compared to 4,5 million units in the same period last year.
Summary of results for the first six months of this year
- The turnover was 1.346,1 million yuan ($ 203,4 million), with an increase of 63,7% compared to the previous year.
- The gross profit margin was 25,5%, compared to 24,4% in the same period of the previous year.
- The net profit attributable to Huami was 100,3 million yuan ($ 15,2 million), compared to 45,2 million yuan ($ 6,59 million) in the same period last year.
- Based on non-GAAP, the net profit attributable to Huami was 194,1 million yuan (29,30 million US dollars), an increase of 160,8% over the same period last year.
- Based on non-GAAP, the basic and diluted earnings per share attributable to ordinary shareholders were 3,63 yuan (0,55 $) and 3,16 yuan (US $ 0,48), compared to 1,17 yuan and 1,12 yuan for the same period last year .
Analysis of the performance of the second quarter
- Turnover was 760,1 million yuan ($ 114,9 million), an increase of 54,8% compared to 491,1 million yuan ($ 71,58 million) in the same period last year.
- The cost of revenue was 563,3 million yuan (85,1 million US dollars), an increase of 54,7% compared to 364,1 million yuan of the same period last year.
- Gross profit was 196,9 million yuan ($ 29,8 million), an increase of 55,0% from 127 million yuan ($ 18,51) in the same period last year. Gross profit margin was 25,9%, which was the same as in the same period last year.
- Total operating expenses were 97,9 million yuan ($ 14,8 million), an increase of 42,2% compared to 68,8 million yuan ($ 10,03 million) in the same period last year.
- Research and development spending was 44,4 million yuan ($ 6,7 million), an increase of 35,1% compared to 32,8 million yuan ($ 4,78) in the same period last year.
- General and administrative expenses were 32,8 million yuan (5 million dollars), an increase of 23,3% compared to 26,6 million yuan (3,88 million dollars) of the same period last year.
- Selling and marketing expenses were 20,7 million yuan (3,1 million dollars), an increase of 120,5% compared to 9,4 million yuan of the same period last year.
- Operating income was 99 million yuan ($ 15 million), while operating income for the same period last year was 58,2 million yuan ($ 8,48 million).
- The pre-tax profit was 101,4 million yuan (15,3 million US dollars), while pre-tax profit for the same period last year was 58,8 million yuan (8,57 million US dollars).
- Income taxes were 15,9 million yuan (2,4 million dollars) compared to 8,5 million yuan (1,24 million dollars) in the same period last year.
- The net profit attributable to Huami was 85,5 million yuan ($ 12,9 million), compared to 49,7 million yuan ($ 7,24 million) in the same period last year.
- The net profit attributable to ordinary shareholders of Huami was 80,8 million yuan ($ 12,2 million), compared to 14,1 million yuan ($ 2,06 million) of the same period last year.
- The basic and diluted earnings per share attributable to ordinary shareholders were 1,42 yuan ($ 0,21) and 1,35 yuan ($ 0,20), compared to 0,85 yuan ($ 0,12) and 0,82 yuan ($ 0,12) in the same period last year, respectively.
- Based on non-GAAP, the net profit attributable to Huami was 101,6 million yuan (15,3 million US dollars), an increase of 57,8% over the same period last year.
- Based on non-GAAP, the basic and diluted earnings per share attributable to ordinary shareholders were respectively 1,69 yuan ($ 0,26) and 1,61 yuan ($ 0,24), compared to 1,17 yuan and 1,12 yuan for the same period of the year previous one.
- At 30 Jun 2018, Huami had cash equivalents equivalent to 893,9 million yuan ($ 135,1 million) and at 31 December 2017 was 366,3 million yuan ($ 53,39 million).
Performance perspective:
Huami expects net revenue for the third quarter of 2018 to reach 820 million to 840 million yuan ($ 119,5 - 122 million), with a variable increase from 73,0% to 77,2% compared to 474,1 million yuan ($ 69,10 million) in the same period last year.
