Huami Corporation, the company behind Amazfit-branded fitness products has released its financial report for Q1 2020. According to it, the firm witnessed its revenue to reach RMB1,088.5 million ($153.7 million), which equals to 36.1% YoY increase.
The COVID-19 global pandemic has affected every company in the world and Huami is no exception. The company had shut down its contracted manufacturing facilities temporarily, which resulted in lower production in the months of January and February.
Although the manufacturing has resumed from March, the overall supply chain, production, and sales of Huami were affected in Q1 2020. All of this led to lower than initially projected growth rates and gross margin.
The company shipped 7.6 million units of its self-branded (Amazfit) products and Xiaomi Mi Band 4 in Q1 2020, which is 35.7% more than the same period last year.
Further, Huami admits the demand for its products to dip in overseas markets as COVID-19 continues to impact the global economy. Hence the company predicts its net revenue to be between RMB1.0 billion and RMB1.05 billion in Q2 2020, compared to RMB1.04 billion in Q2 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.
He also recalled the company’s launch at CES 2020, which included new product categories like interactive treadmills and earbuds (TWS). The executive also confirmed the release of Mi Band 5 later this year.
Last but not least, Huami has also jointly established a laboratory for research on monitoring respiratory diseases using wearable devices in partnership with the respiratory diseases team of Dr. Zhong Nanshan.
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(Source)
