2020 Q1: Huami Corporation Maintains Continued Profitability and Growth
Quarterly Revenues up 36.1% to RMB1,088.5 Million, and Shipments up 35.7% YoY.
SHENZHEN, China, May 14, 2020 /PRNewswire/ -- Huami Corporation (NYSE: HMI) announced its unaudited financial results for the first quarter ended March 31, 2020. Huami revenues reached RMB1,088.5 million (US$153.7 million), representing an increase of 36.1% from the first quarter of 2019. Total units shipped reached 7.6 million, compared with 5.6 million in the first quarter of 2019.
"Despite the unprecedented challenges created by the COVID-19 pandemic, brand recognition, new product launches and successful marketing spearheaded solid first quarter revenue growth of 36.1%," said Wang Huang, Chairman and CEO of Huami. "In addition to the aforementioned revenue drivers, we also made solid headway in international markets, with a keen focus on the market nuances of each key region and a multi-channel strategy including both direct sales and third-party sales channels.
David Cui, Chief Financial Officer, added, "Despite of the impact of the COVID-19 pandemic that many other companies are also facing, we still kept our robust revenue growth, and remained profitable in this challenging time period. This was driven by increasing brand awareness and adoption of our products by users both domestically and in the overseas market.
During the first quarter, we continue to push investments in both R&D and sales and marketing, as product innovation and sales channel integrity are key components of our success. While we have seen some shortage impacts on our product manufacturing due to disruptions to our supply chain during the quarter, we are optimistic of stronger profitability in the long term as the pandemic, along with its impact, runs its course."
Research and development expenses increased by 63.5% from RMB72.4 million in first quarter 2019 to RMB118.3 million (US$16.7 million) in first quarter 2020. This increase was primarily due to an increase in the number of R&D staff and a rise in investment in healthcare related features, algorithms, cloud-services, chip research, and new products development to carry out Huami's mission Connect Health with Technology. Huami aims to launch a series of new products in the upcoming quarters of 2020. In April, its self-owned brand, Amazfit launched the Amazfit X Smartwatch with curved AMOLED screen and button free design by crowdfunding.
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