Shipments exceeded 200 million, ranking fifth in the world Facing Apple and Huawei, this company has killed a road

Author: Tachibana Song

The progress of technology can change lives, and enterprises at the forefront of science and technology have accelerated the depth and breadth of science and technology services to the public. Whether it is a sweeping robot or a smart watch, it has brought a lot of convenience to people's daily lives.

In this wave of technological innovation trends, there is a technology company that started with smart hardware that has performed particularly well.

On March 17, 2022, Huami Technology released its fourth quarter and full year 2021 financial reports showing that in the fourth quarter of 2021, Huami Technology's revenue reached 1.662 billion yuan (US$260.7 million), and according to US GAAP, diluted net income per share was 0.14 yuan (US$0.02);

Yes, this company is Huami Technology.

In the capital market upwards steady and far-reaching

In the capital market, the company has achieved good results.

In February 2021, Anhui Shunyuan Xinke, a subsidiary of Huami Technology, became the controlling shareholder of the listed company E&T Technology (300211.SZ) for a cash consideration of about 960 million yuan, and subsequently, E&P Technology set up a wholly-owned subsidiary, Whale Microelectronics, and obtained the technical authorization of the Huangshan series of smart wearable chips and Zepp OS operating system.

With the help of Huami Technology's ecological resources and related technologies and patent authorization, E&P Technology has developed rapidly.

According to the annual report, in 2021, E&P Technology achieved operating income of 250 million yuan, an increase of 206.83% over the same period of the previous year; and achieved a net profit of 0.28 billion yuan, an increase of 208.36% over the same period of the previous year.

In addition, E&P Technology also hired Sun Peng, a member of Xiaomi's founding team, as the company's general manager. As one of the founding leaders of MiMIUI and Xiaomi Ecological Chain, Sun Peng has a senior professional background and rich management experience in the fields of operating system and IoT. After joining E&P Technology, Sun Peng will further lead it to achieve new business breakthroughs and growth.

The rapid development of E&P Technology will also help the development of Huami Technology in many aspects such as supply chain and return on investment.

Of course, for Huami Technology, whose own brand shipments have reached a new high, returning shareholders is also one of its key directions in the future. In addition to continuing to advance its share repurchase program, Huami Technology also announced that it will pay a special cash dividend of $0.025 per ordinary share or $0.1 per American Depositary Receipts.

As an enterprise committed to stability and long-term development, Huami Technology will firmly implement the established strategy to maximize the long-term value of shareholders.

Huang Wang, founder, chairman and CEO of Huami Technology, said, "In 2021, we will continue to grow our own brands Amazfit and Zepp, further enhance technological innovation, enrich the product portfolio, and meet the revised guidelines for annual revenue. "With the continuous improvement of the business, Huami Technology is bound to go out of its own way in the consumer market and capital market."

Deep ploughing product technology first

According to public information, the key to Huami Technology's continuous success in the capital market is because it has a high-quality product innovation gene.

According to the wearable device report released by IDC in the fourth quarter and full year of 2021, Huami Technology's two major private brands, Zepp and Amazfit, shipped more than 2.182 million units in the fourth quarter of 2021, up 22.9% year-on-year; the cumulative shipments for the whole year exceeded 6.816 million units, up 53.8% year-on-year in 2020, ranking fifth in the world.

Coinciding with quarterly shipment growth, cumulative shipments reached new highs. According to the data, by the end of 2021, the cumulative global shipments of Huami Technology's intelligent devices have exceeded 200 million units, which undoubtedly condenses the countless painstaking efforts of Huami Technology's team.

In order to achieve higher shipments and allow products to truly enter thousands of households, Huami Technology has done enough work at the research and development end.

For Huami Technology, 2021 is undoubtedly a year of technology blowout. In July 2021, Huami Technology held the Next Beat Conference. At the meeting, a new generation of smart wearable chip "Huangshan 2S", a health-focused native smart watch operating system Zepp OS, a 30-second one-click monitoring Pump Beats blood pressure engine, and a highly innovative portable MRI MRI technology were unveiled.

For enterprises such as Huami Technology, which are at the forefront of technology, the intensive launch of new technologies and new products is undoubtedly based on excellent technical strength and long-term R & D investment, according to the financial report, Huami Technology will invest 515 million yuan in research and development in 2021, with a research and development expense rate of 8.24%. Huang Wang of Huami Technology once said that in the past three years, Huami's investment in research and development has reached an average of 410 million yuan per year, which is equivalent to 2 times or even 3 times that of some emerging Internet companies and IoT intelligent hardware companies.

The ultimate goal of the technology is to achieve the mission of "connecting health with science and technology" that Huami Technology is committed to.

Children's health has always been the top priority of parents, in 2021, Huami Technology launched the first smart children's watch focusing on health - Amazfit Happy Duck Children's Watch, which is equipped with a new daylight sensor, which can help children prevent myopia through outdoor activity time reminders; built-in jump rope, sit-ups, running three student-specific sports modes to help sports meet the standard; also support 4G hd video calling, AI multiple positioning, ultra-long battery life, Help parents keep abreast of their children's sports health.

In addition, Huami Technology also cooperates with the First Hospital of Peking University, Wuhan University People's Hospital, Shanghai Tenth People's Hospital, etc., a well-known tertiary hospital in China, to screen the blood pressure of subjects through the PumpBeats blood pressure monitoring engine equipped with Amazfit GTR 3 Pro, and the doctors combine the data during the research cycle to determine whether the subjects are suspicious hypertensive patients. So that users can achieve early screening and early treatment, to avoid further development of the disease.

In January 2022, the project launched the "Night Blood Pressure Screening" function, which further improves the efficiency of blood pressure health screening through the combination of night sleep monitoring and passive blood pressure monitoring.

Lay a solid foundation Sail science and technology health

As an ecological chain enterprise that has jointly created a explosive Xiaomi bracelet with Xiaomi, Huami Technology's products, technologies and own brands have gradually matured in several years of polishing, and Huami Technology is gradually walking out of a path of its own.

On March 16, 2022, the Weibo of "Xiaomi Sports Health" announced that the original "Xiaomi Sports" application was officially renamed "Zepp Life" and will be independently operated by Huami Technology.

After the renaming, Zepp Life will continue to support the connection and use of existing Mi Bracelet 1-6 generation products, Xiaomi Scale Series products, and Xiaomi Body Fat Scale Series products. Since then, Huami Technology will continue to work with Xiaomi to continue to cooperate in the fields of wearable product development, self-developed chips, algorithms and other fields to provide high-quality wearable software and hardware services. It is reported that the two sides are currently actively exploring the development of new products, of which the latest generation of Xiaomi bracelet 7 will also be launched within the year.

On the one hand, it continues to maintain close strategic cooperation with Xiaomi Technology, on the other hand, it has ushered in its own "shipment volume exceeded 200 million, ranking among the top five in the world". Today's Huami has gradually "matured", and its future will surely embark on a path of "science and technology connecting health" that truly belongs to itself.

(This article is for reference only and does not constitute investment advice, and you do so at your own risk)