The world’s biggest wearable device company, Huami has just reported its financial result of the first quarter of 2019. The company seeks an increase of quarterly revenues by 36.5% year on year. This year it reaches $119.1 million.
It also recorded a RMB 75.3 million ($11.2 million) worth of net income, almost fourfold the number of the same period last year at RMB 14.8 million. And adjusted net income increased by 2.7% to RMB 95 million ($14.2 million).
In this first quarter of 2019, Huami shipped 5.6 million units. It is 17.9% higher than the 4.8 million units it shipped at the first quarter of 2018. It is also witnessed a 2.2% increase of gross margin at 27.2%. With gross profit recorded at RMB 217.5 billion ($32.4 million), compared to RMB 146.7 million it recorded last year.
Despite being a Xiaomi-backed the company, the growth of the sales Huami recorded this year are mostly not under Mi brands.
Huami’s own brand, Amazfit shipped 0.8 million bands and smartwatches. The number is up by 49.3% year on year, with revenue increasing by 62% year-on-year to RMB 330.5 million ($49.2 million). It is 41.3% of the company’s entire revenue.
Meanwhile Huami shipped 4.8 million Mi bands and Mi smartwatches this year. It is a 13.9% increase from the previous year. The revenue of the Mi brand recorded at RMB 489.1 million ($69.9 million), 22.8% away year-on-year.
Launched in 2014, Huami grew into the world’s biggest wearable device company. It beat up Apple and Fitbit by holding 17.1% of the global market share.
To expand even larger, the company holds a cooperation agreement with Timex, a US watchmaker company. Together, the two companies collaborate to launch smartwatches under Timex brand, if not under a co-brand of both.
Soon, the company is going to launch the newest version of Mi band, the Mi-Band 4. Wang Huang, CEO of Huami stated that his company is continuing to work with Xiaomi on future Mi Bands product developments. It is also working on various band models targeting different global market segments.
