Huami Corporation Reports Fourth Quarter and Full Year 2018 Unaudited Financial Results

BEIJING,March 14,2019 -- Huami Corporation ("Huami" or the "Company") (NYSE: HMI),a biometric and activity data-driven company with significant expertise in smart wearable technology,today announced its unaudited financial results for the fourth quarter and full year ended December 31,2018.

FourthQuarter 2018 Financial and Operating Highlights

Revenues[1] reached RMB1,224.6 million (US$178.1 million),representing an increase of 62.7% from the fourth quarter of 2017.

Gross margin was 25.2%,compared with 22.2% for the fourth quarter of 2017.

Net income attributable to Huami Corporation was RMB126.0 million (US$18.3 million),compared with RMB72.3 million for the fourth quarter of 2017.

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB2.08 (US$0.30) and RMB1.97 (US$0.29),respectively,compared with RMB1.33 and RMB1.27,for the fourth quarter of 2017. Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation[2] was RMB146.5 million (US$21.3 million),up 69.3% from the fourth quarter of 2017.

Adjusted basic and diluted net income per American depositary share ("ADS") attributable to ordinary shareholders of Huami Corporationwas RMB2.42 (US$0.35) and RMB2.30 (US$0.33),compared with RMB1.63 and RMB1.56,for the fourth quarter of 2017. Each ADS represents four (4) Class A ordinary shares.

Total units shipped reached 9.2 million,compared with 6.5 million in the fourth quarter of 2017.

[1]The Company has adopted ASC 606 by using modified retrospective method since January 1,2018.

[2]Adjusted net income is a non-GAAP measure,which excludes share-based compensation expenses. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.

Full Year 2018 Financial and Operating Highlights

Revenues reached RMB3,645.3 million (US$530.2 million),representing an increase of 77.9% from the full year 2017.

Gross margin reached 25.8%,compared with 24.1% for the full year 2017.

Net income attributable to Huami Corporation was RMB340.0 million (US$49.5 million),compared with RMB167.7 million in the full year 2017.

Basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB5.98 (US$0.87) and RMB5.41 (US$0.79),compared with RMB2.72 and RMB2.60 respectively,for the full year 2017. Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation was RMB474.8 million (US$69.0 million),up 106.0% from the full year 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of Huami Corporation was RMB8.39 (US$1.22) and RMB7.59 (US$1.10),compared with RMB4.07 and RMB3.90,for the full year 2017. Each ADS represents four (4) Class A ordinary shares.

Total units shipped reached 27.5 million,compared with 18.1 million in the full year 2017.

"We are very proud to conclude the year of 2018 with strong business performance as we continue to strengthen our leadership position in the global smart wearables industry. Our fourth quarter results capped off a very strong year for Huami," said Wang Huang,Chairman and CEO. "Customer adoption of the Amazfit brand grew significantly in 2018 with shipment of Amazfit products almost tripled compared with 2017,which was mainly driven by Amazfit watch products. In 2018,we introduced a breakthrough in healthcare technologies by applying in wearables powered by our self-developed AI chip Huangshan-1; broadened our IOT application scenarios; and engaged with strategic partnerships such as Timex and PAI Health. We see tremendous opportunity to continue our global growth. We intend to utilize our world-class research and development capabilities,as well as our collaborative partnerships to development new,innovative products and services that ensure we remain at the forefront of our industry."

David Cui,Chief Financial Officer,said,"Strong demand for our Amazfit products and continued robust sales of the Mi Bands allowed us to deliver revenues that exceeded the high-end of our previous guidance range in the fourth quarter. In addition,a focus on competitive product development and efficient business operation generated solid profitability in the quarter. Our pipeline of cutting-edge products,broad brand awareness and growing global distribution channels position us well for 2019 and beyond."

Fourth Quarter 2018Financial Results

Revenues increased by 62.7% to RMB1,224.6 million (US$178.1 million) from RMB752.6 million for the fourth quarter of 2017,primarily due to the increase in the sales of Xiaomi wearable products and self-branded products,driven by increased brand recognition of our products.

Cost of revenuesincreased by 56.3% to RMB915.6 million (US$133.2 million) from RMB585.8 million for the fourth quarter of 2017. The increase was in-line with the rapid sales growth of Xiaomi wearable products and self-branded products.

Gross profitincreased by 85.2% to RMB309.0 million (US$44.9 million) from RMB166.8 million for the fourth quarter of 2017. Gross margin of 25.2% is an improvement from the fourth quarter of 2017.

Total operating expensesincreased by 93.2% to RMB177.8 million (US$25.9 million) from RMB92.0 million for the fourth quarter of 2017.

Research and development expensesincreased by 88.1% toRMB85.1 million(US$12.4 million) fromRMB45.2 millionfor the fourth quarter of 2017,primarily due to the increase in R&D personnel expenses and the recruitment of new employees.

General and administrative expensesincreased by 97.3% toRMB63.9 million(US$9.3 million) fromRMB32.4 millionfor the fourth quarter of 2017,primarily due to the increase in personnel-related expenses and foreign exchange rate fluctuation.

Selling and marketing expensesincreased by 100.4% toRMB28.8 million(US$4.2 million) fromRMB14.3 millionfor the fourth quarter of 2017,primarily due to an increase in personnel-related expenses,and an increase in advertising promotion expenses forself-branded products.

Operating incomewasRMB131.2 million(US$19.1 million),compared with RMB74.8 millionfor the fourth quarter of 2017.

Income before income taxwasRMB139.4 million(US$20.3 million),compared with RMB79.9 millionfor the fourth quarter of 2017.

Income tax expenseswereRMB12.3 million(US$1.8 million),compared withRMB12.1 millionfor the fourth quarter of 2017.

Net incomeattributable to Huami CorporationtotaledRMB126.0 million(US$18.3 million),compared withRMB72.3 millionfor the fourth quarter of 2017.

Net income attributable to ordinary shareholders of Huami Corporationincreased toRMB122.4 million(US$17.8 million),compared withRMB23.9 millionfor the fourth quarter of 2017.

Basic and diluted net income per ADS attributable to ordinary shareholders of HuamiCorporationwasRMB2.08(US$0.30)andRMB1.97(US$0.29),compared withRMB1.33andRMB1.27,for the fourth quarter of 2017. Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation,which excludes share-based compensation expenses,increased by 69.3% toRMB146.5 million(US$21.3 million) fromRMB86.5 millionfor the fourth quarter of 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of HuamiCorporationwasRMB2.42 (US$0.35)andRMB2.30 (US$0.33),compared withRMB1.63andRMB1.56,for the fourth quarter of 2017. Each ADS represents four (4) Class A ordinary shares.

As ofDecember 31,2018,the Company had cash and cash equivalents ofRMB1,441.8 million(US$209.7 million),compared withRMB366.3 millionas ofDecember 31,2017.

Full Year 2018 Financial Results

Revenuesincreased by 77.9% to RMB3,645.3 million (US$530.2 million) from RMB2,048.9 million for the full year 2017,due to the increase in shipment volume of both Xiaomi wearable products and self-branded products and others,driven by increasing market recognition of our products.

Cost of revenuesincreased by 74.1% to RMB2,705.9 million (US$393.6 million) from RMB1,554.2 million for the full year 2017. The increase was in-line with the rapid sales growth of Xiaomi wearable and self-branded products.

Gross profitincreased by 89.9% to RMB939.5 million (US$136.6 million) from RMB494.7 million for the full year 2017. Gross margin increased to 25.8% from 24.1% for the full year 2017. The increase was driven by improved economies of scale and the rapid growth in sales of self-branded products.

Total operating expensesincreased by 83.5% to RMB573.7 million (US$83.4 million) from RMB312.7 million for the full year 2017. The Company's successful IPO and the amendment of certain vesting schedules of previously granted options triggered an acceleration of expense recognition in the full year of 2018. Excluding share-based compensation expenses,the increase is primarily due to an increase in personnel-related expenses,advertisement promotion expenses,and foreign exchange rate fluctuation.

Research and development expensesincreased by 71.1% toRMB263.2 million(US$38.3 million) fromRMB153.8 millionfor the full year 2017,primarily due to the increase in R&D personnel-related expenses and the recruitment of new employees.

General and administrative expensesincreased by 86.3% toRMB214.0 million(US$31.1 million) fromRMB114.9 millionfor the full year 2017,primarily due to the increase in personnel-related expenses,foreign exchange rate fluctuation,and professional fees related to business expansion and operating as a public company.

Selling and marketing expensesincreased by 119.3% toRMB96.5 million(US$14.0 million) fromRMB44.0 millionfor the full year 2017,and the increase in advertising promotion expenses for self-branded products.

Operating incomewasRMB365.7 million(US$53.2 million),compared withRMB182.0 millionfor the full year 2017.

Income before income taxwas RMB386.6 million (US$56.2 million),compared with RMB191.9 million for the full year 2017.

Income tax expenseswereRMB52.0 million(US$7.6 million),compared withRMB27.6 millionfor the full year 2017.

Net incomeattributable to Huami CorporationtotaledRMB340.0 million(US$49.5 million),compared withRMB167.7 millionfor the full year 2017.

Net income attributable to ordinary shareholders of Huami Corporationincreased toRMB316.9 million(US$46.1 million),compared withRMB46.1 millionfor the full year 2017.

Basic and diluted net income per ADS attributable to ordinary shareholders of HuamiCorporationwasRMB5.98(US$0.87)andRMB5.41(US$0.79),compared withRMB2.72 andRMB2.60 respectively,for the full year 2017. Each ADS represents four (4) Class A ordinary shares.

Adjusted net income attributable to Huami Corporation,increased by 106.0% toRMB474.8 million(US$69.0 million) fromRMB230.5 millionfor the full year 2017.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders of HuamiCorporationwas RMB8.39 (US$1.22)andRMB7.59 (US$1.10),compared withRMB4.07andRMB3.90,for the full year 2017. Each ADS represents four (4) Class A ordinary shares.

Outlook

For the first quarter of 2019,the management of the Company currently expects:

- Net revenues to be betweenRMB750.0 millionandRMB770.0 million,which would represent an increase of approximately 28.0% to 31.4% fromRMB585.9 millionfor the first quarter of 2018.

The above outlook is based on the current market conditions and reflects Company management's current and preliminary estimates of market and operating conditions and customer demand,which are all subject to change.

Conference Call

The Company's management will hold a conference call at8:00 a.m. Eastern Time on Thursday,2019 (8:00 p.m. Beijing Time on March 14,2019) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

US (Toll Free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (Toll Free):

400-120-1203

Hong Kong (Toll Free):

800-905-945

Hong Kong:

+852-3018-4992

Participants should dial-in at least 10 minutes before the scheduled start time and ask to be connected to the call for "Huami Corporation."

Additionally,a live and archived webcast of the conference call will be available at http://www.huami.com/investor.

A telephone replay will be available one hour after the end of the conference until March 21,2019 by dialing the following telephone numbers:

US (Toll Free):

+1-877-344-7529

International:

+1-412-317-0088

Replay Passcode:

10129354

About Huami Corporation

Huami is a biometric and activity data-driven company with significant expertise in smart wearable technology. Since its inception in 2013,Huami has quickly established its global market leadership and recognition by shipping millions of units of smart wearable devices. In 2018,Huami shipped 27.5 million units of smart wearable devices.Huami has one of the largest biometric and activity databases in the global smart wearables industry.Huami's mobile apps work hand in hand with its smart wearable devices and provide users with a comprehensive view and analysis of their biometric and activity data.

Use of Non-GAAP Measures

We use adjusted net income,a non-GAAP financial measure,in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expenses,and such adjustment has no impact on income tax.

We believe that adjusted net income helps identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in net income. We believe that adjusted net income provides useful information about our operating results,enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Adjusted net income should not be considered in isolation or construed as an alternative to net income,basic and diluted net income per share attributable to ordinary shareholders of Huami Corporation or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted net income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently,limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate

The Company's business is primarily conducted inChinaand the significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted,all translations from RMB to US$ are made at a rate ofRMB6.8755toUS$1.00,the effective noon buying rate for December 31,2018 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been,or could be,converted,realized or settled into US$ at that rate on December 31,or at any other rate.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: the cooperation with Xiaomi,the recognition of the Company's self-branded products; the Company's growth strategies; trends and competition in global wearable technology market; changes in the Company's revenues and certain cost or expense accounting policies; governmental policies relating to the Company's industry and general economic conditions inChinaand the global. Further information regarding these and other risks is included in the Company's filings with the United States Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release,and the Company undertakes no obligation to update any forward-looking statement,except as required under applicable law.

For investor and media inquiries,please contact:

InChina:

Huami Corporation

Grace Yujia Zhang

Tel: +86-10-5940-3255

E-mail:ir@huami.com

The Piacente Group,Inc.

Ross Warner

Tel: +86-10-5730-6201

E-mail:huami@tpg-ir.com

Inthe United States:

The Piacente Group,Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail:huami@tpg-ir.com

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data,or otherwise noted)

As of December 31,

As of December 31,

2017

2018

RMB

RMB

US$

Assets

Current assets:

Cash and cash equivalents

366,336

1,441,802

209,701

Restricted cash

3,185

10,010

1,456

Term deposit

-

96,969

14,104

Accounts receivable

32,867

58,925

8,570

Amounts due from related parties,current

578,454

656,399

95,469

Inventories

249,735

484,622

70,485

Short-term investments

13,721

50,482

7,342

Prepaid expenses and other current assets

51,062

58,247

8,473

Total current assets

1,295,360

2,857,456

415,600

Property,plant and equipment,net

28,755

40,042

5,824

Intangible asset,net

5,339

63,722

9,268

Goodwill

5,930

5,930

862

Long-term investments

85,238

208,949

30,390

Deferred tax assets

41,895

75,032

10,913

Other non-current assets

3,000

7,350

1,070

Total assets

1,465,517

3,258,481

473,927

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data,

2017

2018

RMB

RMB

US$

Liabilities

Current liabilities:

Accounts payable

707,782

1,064,106

154,768

Advance from customers

10,683

5,943

864

Amount due to related parties,current

8,143

10,695

1,556

Accrued expenses and other current liabilities

93,798

213,975

31,121

Income tax payables

21,600

54,037

7,859

Notes payable

5,243

18,936

2,754

Bank borrowings

30,000

20,000

2,909

Total current liabilities

877,249

1,387,692

201,831

Deferred tax liabilities

2,470

4,962

722

Amount due to a related party,non-current

3,076

-

-

Other non-current liabilities

4,940

56,249

8,181

Total liabilities

887,735

1,448,903

210,734

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data,

2017

2018

RMB

RMB

US$

Mezzanine equity

Series A convertible redeemable participating preferred shares

26,770

-

-

Series B-1 convertible redeemable participating preferred shares

26,906

-

-

Series B-2 convertible redeemable participating preferred shares

295,942

-

-

Total mezzanine equity

349,618

-

-

Equity

Ordinary shares

56

151

22

Additional paid-in capital

72,427

1,209,056

175,850

Accumulated retained earnings

131,192

504,567

73,386

Accumulated other comprehensive income

22,100

97,141

14,129

Total Huami Corporation shareholders' equity

225,775

1,810,915

263,387

Non-controlling interests

2,389

(1,337)

(194)

Total equity

228,164

1,809,578

263,193

Total liabilities,mezzanine equity and equity

1,927

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data,or otherwise noted)

For the Three Months Ended December 31,

2017

2018

RMB

RMB

US$

Revenues

752,648

1,224,569

178,106

Cost of revenues

585,825

915,574

133,165

Gross profit

166,823

308,995

44,941

Operating expenses:

Selling and marketing

14,346

28,753

4,182

General and administrative

32,406

63,929

9,298

Research and development

45,237

85,069

12,373

Total operating expenses

91,989

177,751

25,853

Operating income

74,834

131,244

19,088

Other income and expenses:

Realized gain from investments

38

261

38

Interest income

1,540

6,572

956

Other income(expense)

3,489

(6,536)

(951)

Gain from fair value change of long-term investment

-

7,860

1,143

Income before income tax

79,901

139,401

20,274

Income tax expenses

(12,149)

(12,323)

(1,792)

Income before income from equity method investments

67,752

127,078

18,482

Income /(loss) from equity method investments

4,228

(1,920)

(279)

Net income

71,980

125,158

18,203

Less: Net loss attributable to non-controlling interest

(324)

(794)

(115)

Net income attributable to Huami Corporation

72,304

125,952

18,318

Less: Accretion of Series A Preferred Shares

976

-

-

Less: Accretion of Series B-1 Preferred Shares

803

-

-

Less: Accretion of Series B-2 Preferred Shares

8,831

-

-

Less: Undistributed earnings allocated to participatingpreferred

shares and nonvested restricted shares

37,832

3,573

520

Net income attributable to ordinary shareholders ofHuami

Corporation

23,862

122,379

17,798

Net income per share attributable to ordinary

shareholders of Huami Corporation

Basic income per ordinary share

0.33

0.52

0.08

Diluted income per ordinary share

0.32

0.49

0.07

Net incomeper ADS (4 ordinary shares equal to 1 ADS)

ADS – basic

1.33

2.08

0.30

ADS – diluted

1.27

1.97

0.29

Weighted average number of shares used in computingnet

incomeper share

Ordinary share – basic

71,920,852

234,818,943

234,943

Ordinary share – diluted

80,507,984

248,271,059

248,059

HUAMI CORPORATION

Reconciliation of GAAP and Non-GAAP Results

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data,

2017

2018

RMB

RMB

US$

Net income attributable to Huami

Corporation

72,304

125,952

18,318

Share-based compensation expenses

14,212

20,498

2,982

Adjusted net income attributable to Huami

Corporation

86,516

146,450

21,300

Less: Accretion of Series A Preferred Shares

976

-

-

Less: Accretion of Series B-1 Preferred Shares

803

-

-

Less: Accretion of Series B-2 PreferredShares

8,831

-

-

Less: Undistributed earnings allocated to

participating preferred shares and nonvested

restricted shares

46,546

4,155

604

Adjusted net income attributable to ordinary

shareholders of Huami Corporation

29,360

142,295

20,696

Adjusted net income per share attributable to

ordinary shareholders of Huami Corporation

Adjusted basic income per ordinary share

0.41

0.61

0.09

Adjusted diluted income per ordinary share

0.39

0.57

0.08

Adjusted net incomeper ADS (4 ordinary

sharesequal to 1 ADS)

ADS – basic

1.63

2.42

0.35

ADS – diluted

1.56

2.30

0.33

Weighted average number of shares used in

computing net income per share

Ordinary share – basic

71,943

Ordinary share – diluted

80,059

Share-based compensation expenses included

are follows:

Selling and marketing

-

100

15

General and administrative

13,656

16,452

2,393

Research and development

556

3,946

574

Total

14,212

20,498

2,982

HUAMI CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data,or otherwise noted)

Years ended

Dec. 31,2017

Dec. 31,2018

RMB

RMB

US$

Revenues

2,048,896

3,645,335

530,192

Cost of revenues

1,554,194

2,705,885

393,555

Gross profit

494,702

939,450

136,637

Operating expenses:

Selling and marketing

44,026

96,538

14,041

General and administrative

114,880

213,973

31,121

Research and development

153,827

263,220

38,284

Total operating expenses

312,733

573,731

83,446

Operating income

181,969

365,719

53,191

Other income and expenses:

Realized gain from investment

2,373

261

38

Interest income

3,003

11,595

1,686

Other income

4,555

1,178

171

Gain from fair value change of long-term investments

-

7,143

Income before income tax

191,900

386,613

56,229

Income tax expenses

(27,611)

(52,036)

(7,568)

Income before loss from equity method investments

164,289

334,577

48,661

Income from equity method investments

2,806

1,743

254

Net income

167,095

336,320

48,915

Less: Net loss attributable to non-controlling interest

(587)

(3,726)

(542)

Net income attributable to Huami Corporation

167,682

340,046

49,457

Less: Accretion of Series A Preferred Shares

3,762

177

26

Less: Accretion of Series B-1 PreferredShares

3,127

368

54

Less: Accretion of Series B-2 PreferredShares

34,382

4,049

589

Less: Undistributed earnings allocated to

participatingpreferred shares and nonvested restricted shares

80,291

18,540

2,697

Net income attributable to ordinary shareholders

ofHuami Corporation

46,120

316,912

46,091

Net income per share attributable to

ordinaryshareholders of Huami Corporation

Basic income per ordinary share

0.68

1.50

0.22

Diluted income per ordinary share

0.65

1.35

0.20

Net incomeper ADS (4 ordinary shares equal to 1 ADS)

ADS – basic

2.72

5.98

0.87

ADS – diluted

2.60

5.41

0.79

Weighted average number of shares used in

computingnet incomeper share

Ordinary share – basic

67,777,592

211,873,704

211,704

Ordinary share – diluted

76,291,901

225,034,650

225,650

HUAMI CORPORATION

Reconciliation of GAAP and Non-GAAP Results

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

except for number of shares and per share data,2018

RMB

RMB

US$

Net income attributable to Huami

Corporation

167,682

340,046

49,457

Share-based compensation expenses

62,787

134,709

19,592

Adjusted net income attributable to Huami

Corporation

230,469

474,755

69,049

Less: Accretion of Series A Preferred Shares

3,049

589

Less: Undistributed earnings allocated t

oparticipating preferred shares and

nonvestedrestricted shares

120,169

25,985

3,779

Adjusted net income attributable to ordinary

shareholders of Huami Corporation

69,029

444,176

64,601

Adjusted net income per share attributable to

ordinary shareholders of Huami Corporation

Adjusted basic income per ordinary share

1.02

2.10

0.31

Adjusted diluted income per ordinary share

0.97

1.90

0.28

Adjusted incomeper ADS (4 ordinary shares

equal to 1 ADS)

ADS – basic

4.07

8.39

1.22

ADS – diluted

3.90

7.59

1.10

Weighted average number of shares used in

computing net income per share

Ordinary share – basic

67,650

Share-based compensation expenses included

are follows:

Cost of revenues

-

414

60

Selling and marketing

-

4,271

621

General and administrative

55,804

87,857

12,778

Research and development

6,983

42,167

6,133

Total

62,787

134,709

19,592

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