Huami, Friday, released its financial report for the fourth quarter and the entire 2019. The company reported some impressive gains in wearable shipment commanding an estimated shipment of 42.3 million units of both smartwatches and fitness bands for the entire year. This figure represents a Year-on-Year increase of 72.4%. The company generated a total of 2.114 billion yuan ($303.3 million) in the fourth quarter alone. However, the adjusted net profit after deducting cost was put at 213.8 million yuan ($30.7 million).
For the entire 2019, Huami’s overall financial performance was also impressive. The company recorded rapid growth in both revenue and profit. For the revenue, the company’s total revenue for 2019 peaked at 5.823 billion yuan ($ 834.9 million), representing an increase of 59.4% when compared with the revenue for 2018. Huami posted a net profit of 630.3 million yuan ($90.5 million), an increase of 32.8% Year-on-Year.
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Most of the shipments were recorded in the fourth quarter where the company saw an estimated 14.7 million units sold. In comparison, Huami shipped 9.2 million units in the fourth quarter of 2018, representing a year-on-year increase of 59.8%. Total shipments for the full year of 2019 reached 42.3 million units, an increase of 53.8% compared to 27.5 million units for the entire 2018.
Huami’s founder and CEO, Huang Wang, stated that 2019 was a great year for the company. The performance makes Huami one of the leading brands in the smart wearable industry. Mr Huang also disclosed that Huami and Timex entered into a partnership for product development. The partnership has had its first product and it has gone on sale in North American market. The product is likely the Timex Ironman R300 which was launched recently as Timex’s first smartwatch. Also, Huami’s partnership with Xiaomi is still on course and the Mi Band 5 manufactured by Huami for Xiaomi is expected to be launched later this year.
Despite the current global economic impact of the Coronavirus epidemic, Huami is still optimistic in its forecast for the first quarter of 2020. The New York Stock Exchange-listed company forecast a net income of between 980 million yuan and 1.01 billion yuan. Compared to the 799.6 million yuan revenue generated in the first quarter of 2019, the company expects a YoY growth estimate of 22.6% to 26.3%.
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(source)
