Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | HMI |
Entity Registrant Name | Huami Corporation |
Entity Central Index Key | 1,720,446 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Ordinary Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 91,134,327 |
Preferred Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 94,537,315 |
Series A Preferred Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 71,641,792 |
Series B-1 Preferred Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,000,000 |
Series B-2 Preferred Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 20,895,523 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 366,336 | $ 56,305 | ¥ 153,152 |
Restricted cash | 3,185 | 489 | |
Accounts receivable (net of allowance of nil and nil as of December 31, 2016 and 2017, respectively) | 32,867 | 5,052 | 19,707 |
Amounts due from related parties (net of allowance of nil and nil as of December 31, 2016 and 2017, respectively) | 578,454 | 88,907 | 476,698 |
Inventories | 249,735 | 38,384 | 192,372 |
Short-term investments | 13,721 | 2,109 | 9,236 |
Prepaid expenses and other current assets | 51,062 | 7,847 | 8,678 |
Total current assets | 1,295,360 | 199,093 | 859,843 |
Property, plant and equipment, net | 28,755 | 4,420 | 10,801 |
Intangible assets, net | 5,339 | 821 | 1,223 |
Goodwill | 5,930 | 911 | |
Long-term investments | 85,238 | 13,101 | 78,057 |
Deferred tax assets | 41,895 | 6,439 | 22,972 |
Other non-current assets | 3,000 | 461 | |
Total assets | 1,465,517 | 225,246 | 972,896 |
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Group of RMB480,927 and RMB671,942 as of December 31, 2016 and 2017, respectively) | 707,782 | 108,784 | 524,072 |
Advance from customers of the consolidated VIEs without recourse to the Group | 10,683 | 1,642 | 5,885 |
Amount due to related parties (including amount due to related parties of the consolidated VIEs without recourse to the Group of RMB15,000 and RMB8,143 as of December 31, 2016 and 2017, respectively) | 8,143 | 1,252 | 23,500 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Group of RMB29,430 and RMB62,042 as of December 31, 2016 and 2017, respectively) | 93,798 | 14,416 | 47,623 |
Income tax payables of the consolidated VIEs without recourse to the Group | 21,600 | 3,320 | 20,628 |
Notes payable of the consolidated VIEs without recourse to the Group | 5,243 | 806 | 2,662 |
Bank borrowings of the consolidated VIEs without recourse to the Group | 30,000 | 4,611 | 10,000 |
Total current liabilities | 877,249 | 134,831 | 634,370 |
Deferred tax liabilities of the consolidated VIEs without recourse to the Group | 2,470 | 380 | |
Amount due to a related party, non-current of the consolidated VIEs without recourse to the Group | 3,076 | 473 | |
Other non-current liabilities of the consolidated VIEs without recourse to the Group | 4,940 | 759 | |
Total liabilities | 887,735 | 136,443 | 634,370 |
Mezzanine equity | |||
Total mezzanine equity | 349,618 | 53,734 | 308,347 |
Commitments and contingencies (Note 23) | |||
Equity | |||
Ordinary shares (US$0.0001 par value; 405,462,685 shares authorized as of December 31, 2016 and 17; 91,169,327 and 91,304,327 shares issued and outstanding as of December 31, 2016 and 2017, respectively) | 56 | 9 | 56 |
Additional paid-in capital | 72,427 | 11,132 | 50,822 |
Accumulated (deficit)/ retained earnings | 131,192 | 20,164 | (36,490) |
Accumulated other comprehensive income | 22,100 | 3,397 | 15,791 |
Total Huami Corporation shareholders’ equity | 225,775 | 34,702 | 30,179 |
Noncontrolling interest | 2,389 | 367 | |
Total equity | 228,164 | 35,069 | 30,179 |
Total liabilities, mezzanine equity and equity | 1,465,517 | 225,246 | 972,896 |
Series A Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 26,770 | 4,114 | 23,008 |
Series B-1 Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 26,906 | 4,135 | 23,779 |
Series B-2 Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | ¥ 295,942 | $ 45,485 | ¥ 261,560 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016$ / shares |
Accounts receivable, allowance | ¥ | ¥ 0 | ¥ 0 | ||
Amounts due from related parties, allowance | ¥ | 0 | 0 | ||
Accounts payable | 707,782 | $ 108,784 | 524,072 | |
Amount due to a related party | 8,143 | 1,252 | 23,500 | |
Accrued expenses and other current liabilities | ¥ 93,798 | $ 14,416 | ¥ 47,623 | |
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized | 405,462,685 | 405,462,685 | 405,462,685 | |
Ordinary shares, issued | 91,304,327 | 91,304,327 | 91,169,327 | |
Ordinary shares, outstanding | 91,304,327 | 91,304,327 | 91,169,327 | |
Series A Preferred Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Mezzanine equity, authorized | 71,641,792 | 71,641,792 | 71,641,792 | |
Mezzanine equity, issued | 71,641,792 | 71,641,792 | 71,641,792 | |
Mezzanine equity, outstanding | 71,641,792 | 71,641,792 | 71,641,792 | |
Mezzanine equity, liquidation value | ¥ | ¥ 24,870 | ¥ 24,870 | ||
Series B-1 Preferred Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Mezzanine equity, authorized | 2,000,000 | 2,000,000 | 2,000,000 | |
Mezzanine equity, issued | 2,000,000 | 2,000,000 | 2,000,000 | |
Mezzanine equity, outstanding | 2,000,000 | 2,000,000 | 2,000,000 | |
Mezzanine equity, liquidation value | ¥ | ¥ 33,188 | ¥ 33,188 | ||
Series B-2 Preferred Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Mezzanine equity, authorized | 20,895,523 | 20,895,523 | 20,895,523 | |
Mezzanine equity, issued | 20,895,523 | 20,895,523 | 20,895,523 | |
Mezzanine equity, outstanding | 20,895,523 | 20,895,523 | 20,895,523 | |
Mezzanine equity, liquidation value | ¥ | ¥ 364,145 | ¥ 364,145 | ||
Variable Interest Entities | ||||
Accounts payable | ¥ | 671,942 | 480,927 | ||
Amount due to a related party | ¥ | 8,143 | 15,000 | ||
Accrued expenses and other current liabilities | ¥ | ¥ 62,042 | ¥ 29,430 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | |
Revenues (including RMB876,736, RMB1,449,927 and RMB1,778,640 with related parties for the years ended December 31, 2015, 2016 and 2017, respectively) | ¥ 2,048,896 | $ 314,910 | ¥ 1,556,476 | ¥ 896,458 |
Cost of revenues (including RMB762,855, RMB1,198,295 and RMB1,355,493 with related parties for the years ended December 31, 2015, 2016 and 2017, respectively) | 1,554,194 | 238,875 | 1,280,324 | 785,867 |
Gross profit | 494,702 | 76,035 | 276,152 | 110,591 |
Operating expenses: | ||||
Selling and marketing | 44,026 | 6,767 | 27,821 | 19,168 |
General and administrative | 114,880 | 17,657 | 102,644 | 69,984 |
Research and development | 153,827 | 23,643 | 132,304 | 61,553 |
Total operating expenses | 312,733 | 48,067 | 262,769 | 150,705 |
Operating (loss)/income | 181,969 | 27,968 | 13,383 | (40,114) |
Other income and expenses | ||||
Realized gain from investments | 2,373 | 365 | ||
Interest income | 3,003 | 462 | 754 | 255 |
Other income | 4,555 | 699 | 14,726 | 1,109 |
(Loss)/Income before income tax | 191,900 | 29,494 | 28,863 | (38,750) |
Income tax benefit (expense) | (27,611) | (4,244) | (3,088) | 897 |
(Loss)/Income before (loss)/income from equity method investments | 164,289 | 25,250 | 25,775 | (37,853) |
(Loss)/income from equity method investments | 2,806 | 431 | (1,829) | |
Net (loss)/income | 167,095 | 25,681 | 23,946 | (37,853) |
Less: Net loss attributable to noncontrolling interest | (587) | (90) | ||
Net (loss)/income attributable to Huami Corporation | 167,682 | 25,771 | 23,946 | (37,853) |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 80,291 | 12,341 | ||
Net (loss)/income attributable to ordinary shareholders of Huami Corporation | ¥ 46,120 | $ 7,087 | ¥ (12,122) | ¥ (61,250) |
Net (loss)/income per share attributable to ordinary shareholders of Huami Corporation | ||||
Basic (loss)/income per ordinary share | (per share) | ¥ 0.68 | $ 0.10 | ¥ (0.22) | ¥ (1.22) |
Diluted (loss)/income per ordinary share | (per share) | ¥ 0.65 | $ 0.10 | ¥ (0.22) | ¥ (1.22) |
Weighted average number of shares used in computing net (loss)/income per share | ||||
Ordinary share - basic | shares | 67,777,592 | 67,777,592 | 55,612,626 | 50,038,279 |
Ordinary share - diluted | shares | 76,291,901 | 76,291,901 | 55,612,626 | 50,038,279 |
Series A Preferred Shares | ||||
Other income and expenses | ||||
Accretion of Preferred Shares | ¥ 3,762 | $ 578 | ¥ 3,209 | ¥ 4,799 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 48,753 | |||
Series B-1 Preferred Shares | ||||
Other income and expenses | ||||
Accretion of Preferred Shares | 3,127 | 481 | 2,738 | 1,222 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 1,361 | |||
Series B-2 Preferred Shares | ||||
Other income and expenses | ||||
Accretion of Preferred Shares | 34,382 | $ 5,284 | ¥ 30,121 | ¥ 17,376 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | ¥ 14,220 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue from related parties | ¥ 1,778,640 | ¥ 1,449,927 | ¥ 876,736 |
Cost of revenue related parties | ¥ 1,355,493 | ¥ 1,198,295 | ¥ 762,855 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss)/income | ¥ 167,095 | $ 25,681 | ¥ 23,946 | ¥ (37,853) |
Other comprehensive (loss)/income, net of tax | ||||
Exchange differences arising on translation | (3,175) | (488) | 5,262 | 10,226 |
Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, nil and RMB 1,554 for years ended December 31, 2015, 2016 and 2017, respectively) | 9,484 | 1,458 | 303 | |
Comprehensive (loss)/income | 173,404 | 26,651 | 29,511 | (27,627) |
Less: Net loss attributable to noncontrolling interest | (587) | (90) | ||
Comprehensive (loss)/income attributable to Huami Corporation | ¥ 173,991 | $ 26,741 | ¥ 29,511 | ¥ (27,627) |
CONSOLIDATED STATEMENTS OF COM7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized gain on available-for-sale investments and others, tax effect | ¥ 1,554 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Series A Preferred SharesCNY (¥) | Series B Preferred SharesCNY (¥) | Series B-1 Preferred SharesCNY (¥) | Ordinary SharesCNY (¥)shares | Ordinary SharesSeries B-1 Preferred SharesCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalSeries A Preferred SharesCNY (¥) | Additional Paid-in CapitalSeries B Preferred SharesCNY (¥) | Accumulated Other Comprehensive IncomeCNY (¥) | (Accumulated Deficit)/Retained EarningsCNY (¥) | (Accumulated Deficit)/Retained EarningsSeries B-1 Preferred SharesCNY (¥) | Total Huami Corporation Shareholders’ (Deficit)/EquityCNY (¥) | Total Huami Corporation Shareholders’ (Deficit)/EquitySeries A Preferred SharesCNY (¥) | Total Huami Corporation Shareholders’ (Deficit)/EquitySeries B Preferred SharesCNY (¥) | Total Huami Corporation Shareholders’ (Deficit)/EquitySeries B-1 Preferred SharesCNY (¥) | Noncontrolling InterestCNY (¥) |
Beginning Balance at Dec. 31, 2014 | ¥ (6,523) | ¥ 57 | ¥ 5,442 | ¥ (12,022) | ¥ (6,523) | |||||||||||||
Beginning Balance, shares at Dec. 31, 2014 | shares | 93,134,327 | |||||||||||||||||
Accretion of preferred shares | ¥ (4,799) | ¥ (18,598) | ¥ (4,799) | ¥ (18,598) | ¥ (4,799) | ¥ (18,598) | ||||||||||||
Repurchase of ordinary share and issuance of Series B-1 preferred shares (note15) | ¥ (9,053) | ¥ (1) | ¥ (9,052) | ¥ (9,053) | ||||||||||||||
Repurchase of ordinary share and issuance of preferred, shares | shares | (2,000,000) | |||||||||||||||||
Net income (loss) | (37,853) | (37,853) | (37,853) | |||||||||||||||
Statutory reserve | 1,509 | (1,509) | ||||||||||||||||
Share-based compensation | 45,577 | 45,577 | 45,577 | |||||||||||||||
Foreign currency translation adjustment | 10,226 | ¥ 10,226 | 10,226 | |||||||||||||||
Ending Balance at Dec. 31, 2015 | (21,023) | ¥ 56 | 29,131 | 10,226 | (60,436) | (21,023) | ||||||||||||
Ending Balance, shares at Dec. 31, 2015 | shares | 91,134,327 | |||||||||||||||||
Accretion of preferred shares | (3,209) | (32,859) | (3,209) | (32,859) | (3,209) | (32,859) | ||||||||||||
Exercise of option | 24 | ¥ 35,000 | 24 | 24 | ||||||||||||||
Net income (loss) | 23,946 | 23,946 | 23,946 | |||||||||||||||
Share-based compensation | 57,735 | 57,735 | 57,735 | |||||||||||||||
Foreign currency translation adjustment | 5,262 | 5,262 | 5,262 | |||||||||||||||
Unrealized gain on available-for-sale investments | 303 | 303 | 303 | |||||||||||||||
Ending Balance at Dec. 31, 2016 | 30,179 | ¥ 56 | 50,822 | 15,791 | (36,490) | 30,179 | ||||||||||||
Ending Balance, shares at Dec. 31, 2016 | shares | 91,169,327 | |||||||||||||||||
Accretion of preferred shares | ¥ (3,762) | ¥ (37,509) | ¥ (3,762) | ¥ (37,509) | ¥ (3,762) | ¥ (37,509) | ||||||||||||
Exercise of option | 89 | 89 | 89 | |||||||||||||||
Exercise of option, shares | shares | 135,000 | |||||||||||||||||
Net income (loss) | 167,095 | $ 25,681 | 167,682 | 167,682 | ¥ (587) | |||||||||||||
Share-based compensation | 62,787 | 62,787 | 62,787 | |||||||||||||||
Foreign currency translation adjustment | (3,175) | (3,175) | (3,175) | |||||||||||||||
Noncontrolling interest arise from acquisition | 2,976 | 2,976 | ||||||||||||||||
Unrealized gain on available-for-sale investments | 9,484 | 1,458 | 9,484 | 9,484 | ||||||||||||||
Ending Balance at Dec. 31, 2017 | ¥ 228,164 | $ 35,069 | ¥ 56 | ¥ 72,427 | ¥ 22,100 | ¥ 131,192 | ¥ 225,775 | ¥ 2,389 | ||||||||||
Ending Balance, shares at Dec. 31, 2017 | shares | 91,304,327 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash Flows from Operating Activities | ||||
Net (loss)/income | ¥ 167,095 | $ 25,681 | ¥ 23,946 | ¥ (37,853) |
Adjustment to reconcile net income to net cash (used in) provided by operating activities: | ||||
Depreciation of property, plant and equipment | 3,542 | 544 | 2,399 | 285 |
Amortization of intangible assets | 175 | 27 | ||
Inventory write-down | 2,449 | 376 | 1,037 | 0 |
Share-based compensation | 62,787 | 9,650 | 57,735 | 55,991 |
Loss / (gain) on equity method investment | (2,806) | (431) | 1,829 | |
Realized gain from the disposal of long-term investments | (2,373) | (365) | ||
Loss on disposal of property, plant and equipment | 192 | 30 | ||
Deferred income taxes | (18,962) | (2,915) | (18,468) | (3,208) |
Changes in operating assets and liabilities | ||||
Accounts receivable | (13,158) | (2,022) | 2,218 | (17,770) |
Inventories | (57,609) | (8,854) | (103,464) | (52,822) |
Prepaid expenses and other current assets | (32,985) | (5,069) | 6,691 | (9,888) |
Amount due from related parties | (109,756) | (16,869) | (287,661) | (128,478) |
Amount due to related parties | (281) | (43) | 7,957 | |
Accounts payable | 181,628 | 27,916 | 271,999 | 164,044 |
Notes payable | 2,581 | 397 | 2,662 | |
Advance from customers | 4,333 | 666 | 5,885 | |
Income tax payable | 972 | 149 | 21,697 | (1,068) |
Accrued expense and other current liabilities | 45,572 | 7,005 | 28,761 | 16,043 |
Other non-current liability | 4,940 | 759 | ||
Net Cash (used in) provided by Operating Activities | 238,336 | 36,632 | 17,266 | (6,767) |
Cash Flows from Investing Activities | ||||
Purchase of property, plant and equipment | (21,454) | (3,297) | (10,274) | (2,915) |
Prepayment for other non-current assets | (3,000) | (461) | ||
Purchase of intangible assets | (88) | (14) | (1,223) | |
Cash received from the disposal of property, plant and equipment | 164 | 25 | 4 | |
Loans provided to related parties | (16,071) | |||
Loans provided to others | (12,857) | (1,976) | ||
Loans repaid by others | 1,000 | 154 | ||
Purchase of short-term investment | (6,506) | (1,000) | (8,937) | |
Purchase of long-term investments | (23,610) | (3,629) | (62,882) | (2,000) |
Disposal of short-term investment | 2,062 | 317 | ||
Disposal of long-term investments | 23,085 | 3,548 | ||
Net Cash Used in Investing Activities | (38,881) | (5,976) | (99,387) | (4,911) |
Cash Flows from Financing Activities | ||||
Exercise of share options | 89 | 13 | 24 | |
Bank borrowings | 30,000 | 4,611 | 10,000 | |
Repayment of bank borrowing | (10,000) | (1,537) | ||
Repurchase of ordinary shares | (19,467) | |||
Net Cash Provided by Financing Activities | 20,089 | 3,087 | 10,024 | 214,063 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 219,544 | 33,743 | (72,097) | 202,385 |
Effect of exchange rate changes | (3,175) | (488) | 5,262 | 10,226 |
Cash and cash equivalents and restricted cash at beginning of year | 153,152 | 23,539 | 219,987 | 7,376 |
Cash and cash equivalents and restricted cash at end of the year | 369,521 | 56,794 | 153,152 | 219,987 |
Supplemental disclosure of cash flow information | ||||
Income tax paid | 35,892 | 5,517 | 9,599 | 3,595 |
Interest paid | 1,997 | 307 | ||
Non-cash investing and financing activity | ||||
Payable for long-term investment | ¥ 15,000 | |||
Conversion from loan to long-term investment | 8,000 | 1,230 | ||
Payable for property, plant and equipment | 264 | 41 | ||
Series B-2 Preferred Shares | ||||
Cash Flows from Financing Activities | ||||
Proceeds received from issuance of preferred shares | 214,063 | |||
Non-cash investing and financing activity | ||||
Conversion of bridge loan to Series B-2 preferred shares (Note 15) | 55,232 | |||
Series B-1 Preferred Shares | ||||
Cash Flows from Financing Activities | ||||
Proceeds received from issuance of preferred shares | ¥ 19,467 | |||
Yunding | ||||
Cash Flows from Investing Activities | ||||
Purchase of Yunding, net of cash acquired of RMB3,475 | ¥ 2,323 | $ 357 |
CONSOLIDATED STATEMENTS OF CA10
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Yunding | |
Purchase of Yunding, cash acquired | ¥ 3,475 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. ORGANAZATION AND PRINCIPAL ACTIVITIES Huami Corporation (the “Company”) was incorporated in the Cayman Islands in December 2014. The Company, its wholly owned subsidiaries and its variable interest entities (“VIEs”), Anhui Huami Information Technology Co., Ltd. (“Anhui Huami”), its subsidiaries and Huami (Beijing) Information Technology Co., Ltd. (“Beijing Huami”), are collectively referred to as the “Group”. The Group primarily engages in the business of developing, manufacturing and selling smart, wearable technological devices in the People’s Republic of China (“PRC”). During the year ended December 31, 2015, 2016 and 2017, the Group derived over 75% of its revenue from sales of exclusively designed and manufactured smart wearable devices to one customer who is controlled by one of its shareholders. As of December 31, 2017, details of the Company’s subsidiaries and VIEs were as follows: Place of incorporation Date of incorporation/acquisition Percentage of ownership Subsidiaries of the Company: Huami HK Limited (“Huami HK”) Hong Kong (“HK”) December 23, 2014 100% Huami, Inc. (“Huami Inc”) United States of America (“U.S.”) January 15, 2015 100% Beijing ShunYuan KaiHua Technology Co., Ltd. (“ShunYuan”) PRC February 25, 2015 100% Huami (Shenzhen) Information Technology Co., Ltd. (“Huami SZ”) PRC December 7, 2015 100% Anhui Huami Intelligent Technology Co., Ltd. (“Huami Intelligent”) PRC December 28, 2015 100% Rill, Inc. (“Rill”) US June 16, 2016 100% Variable interest entities of the Company: Anhui Huami PRC December 27, 2013 Consolidated VIE Beijing Huami PRC July 11, 2014 Consolidated VIE Subsidiaries of Anhui Huami: Anhui Huami Healthcare Co., Ltd. (“Huami Healthcare”) PRC December 5, 2016 VIE’s subsidiary Shenzhen Yunding Information Technology Co., Ltd. (“Yunding”) PRC July 31, 2017 VIE’s subsidiary The VIE arrangements The Company conducts substantially all of its smart, wearable and technological devices business in the PRC through contractual arrangements with its VIEs, Anhui Huami and its subsidiaries and Beijing Huami. Since the operations of Anhui Huami and its subsidiaries and Beijing Huami are closely interrelated and almost indistinguishable from one another, the risks and rewards associated with their operations are substantially the same. In addition, the Company consolidates Anhui Huami and its subsidiaries and Beijing Huami as disclosed. Therefore, the Company aggregates disclosures related to Anhui Huami and its subsidiaries and Beijing Huami as variable interest entities and referred to them as “the VIEs” in the Company’s consolidated financial statements. The VIEs hold the requisite licenses and permits necessary to conduct the Company’s business. In addition, the VIEs hold the assets necessary to operate the Company’s business and generate substantially all of the Company’s revenues. 1. ORGANAZATION AND PRINCIPAL ACTIVITIES - continued VIE Arrangements between the VIEs and the Company’s PRC subsidiary The Company, through Shun Yuan, a wholly-owned subsidiary of the Company in the PRC (the “WFOE”) has entered into the following contractual arrangements with Anhui Huami, Beijing Huami and their shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that the Company is the primary beneficiary of the VIEs, the Company believes the Company’s rights under the terms of the purchase option agreement provide it with a substantive kick-out right. More specifically, the Company believes the terms of the purchase option agreement are valid, binding and enforceable under PRC laws and regulations currently in effect. The Company also believes that the consideration which is the minimum amount permitted by the applicable PRC law to exercise the option does not represent a financial barrier or disincentive for the Company to currently exercise its rights under the purchase option agreement. A simple majority vote of the Company’s board of directors is required to pass a resolution to exercise the Company’s rights under the purchase option agreement, for which Mr. Wang Huang’s, the CEO of the Company (“Mr. Huang”), consent is not required. The Company’s rights under the purchase option agreement give the Company the power to control the shareholders of Anhui Huami and Beijing Huami. In addition, the Company’s rights under the power of attorney also reinforce the Company’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Company also believes that this ability to exercise control ensures that the VIEs will continue to execute consulting and service agreements and also ensures that consulting and service agreements will be executed and renewed indefinitely unless a written agreement is signed by all parties to terminate it or a mandatory termination is requested by the local government. The Company has the rights to receive substantially all of the economic benefits from the VIEs. Exclusive consulting and service agreement On April 29, 2015, Shun Yuan entered into an exclusive consulting and service agreement with Anhui Huami and Beijing Huami to enable Shun Yuan to receive substantially all of the economic benefits of the VIEs and such agreement was amended on November 3, 2017. Under the exclusive consulting and service agreement, Shun Yuan has the exclusive right to provide or designate any entity affiliated with it to provide VIEs the technical and business support services, including information technology support, hardware management and updates, software development, maintenance and updates and other operating services. The exclusive consulting and service agreement could be indefinitely effective unless a written agreement is signed by all parties to terminate it or a mandatory termination is requested by the local government. The exclusive consulting and service agreement was effective on April 29, 2015. Equity pledge agreement Pursuant to the equity pledge agreements dated April 29, 2015 and amended on November 3, 2017 among Anhui Huami, Beijng Huami, all their shareholders and Shun Yuan, all shareholders of Anhui Huami and Beijing Huami agreed to pledge their equity interests in Anhui Huami or Beijing Huami to Shun Yuan to secure the performance of the VIEs’ obligations under the existing purchase option agreement, power of attorney, exclusive consulting and service agreement and also the equity pledge agreement. Exclusive purchase option agreement Pursuant to the exclusive purchase option agreements entered into on April 29, 2015 and amended on November 3, 2017 among Shun Yuan, Anhui Huami, Beijing Huami and their shareholders, the shareholders of Anhui Huami and Beijing Huami are obligated to sell product to Shun Yuan. Shun Yuan has the exclusive and irrevocable right to purchase, or cause the shareholders of Anhui Huami and Beijing Huami to sell to the party designated by Shun Yuan, in Shun Yuan’s sole discretion, all of the shareholders’ equity interests or any assets in Anhui Huami and Beijing Huami when and to the extent that applicable PRC law permits the Company to own such equity interests and assets in Anhui Huami and Beijing Huami. The price to be paid by Shun Yuan or any party designated by Shun Yuan will be the minimum amount of consideration permitted by applicable PRC law at the time when such transaction occurs. All of the shareholders promised and agreed that they will refund the consideration once received to Shun Yuan or any party designated by Shun Yuan within 10 working days. Also, the shareholders of Anhui Huami and Beijing Huami should try their best to help Anhui Huami and Beijing Huami develop well and are prohibited from transferring, pledging, intentionally terminating significant contracts or otherwise disposing of any significant assets in Anhui Huami and Beijing Huami without the Shun Yuan’s prior written consent. 1. ORGANAZATION AND PRINCIPAL ACTIVITIES - continued Power of Attorney On April 29, 2015 and amended on November 3, 2017, all of the shareholders of Anhui Huami and Beijing Huami have executed a power of attorney with Shun Yuan, Anhui Huami and Beijing Huami, whereby all of the shareholders irrevocably appoint and constitute the person designated by Shun Yuan as their attorney-in-fact to exercise on their behalf any and all rights that the shareholders have in respect of their equity interests in Anhui Huami and Beijing Huami. The power of attorney will be indefinitely effective unless all parties decide to terminate it by written agreement. Risks in relation to VIE structure The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Company’s PRC subsidiaries and VIEs; • discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and VIEs; • limit the Group’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Company’s PRC subsidiaries and VIEs may not be able to comply; • impose additional conditions or requirements with which the Group may not be able to comply; • take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business or • require the Company or the Company’s PRC subsidiaries or VIEs to restructure the relevant ownership structure or operations. The Company’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries or VIEs. The VIE agreements were amended on November 3, 2017 with no significant differences. Mr. Huang is the largest shareholder of Anhui Huami and Beijing Huami, and Mr. Huang is also the largest beneficiary owner of the Company. The interests of Mr. Huang as the largest beneficiary owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Huang is only one of the beneficiary shareholders of the Company, holding 39.4% of the total common shares as of December 31, 2017. The Company cannot assert that when conflicts of interest arise, Mr. Huang will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest Mr. Huang may encounter in his capacity as a beneficial owner and director of the VIEs, on the one hand, and as a beneficial owner and director of the Company, on the other hand. The Company believes Mr. Huang will not act contrary to any of the contractual arrangements and the exclusive option agreement provides the Company with a mechanism to remove Mr. Huang as a beneficiary shareholder of the VIEs should he act to the detriment of the Company. The Company relies on Mr. Huang, as a director and executive officer of the Company, to fulfill his fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and Mr. Huang, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. In addition, most of the current shareholders of Anhui Huami and Beijing Huami are also beneficial owners of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that the shareholders of Anhui Huami and Beijing Huami may act contrary to the contractual arrangements, the Company, through Shun Yuan, entered into an irrevocable power of attorney with all of the shareholders of Anhui Huami and Beijing Huami on April 29, 2015 and November 3, 2017 resulting in the VIE agreements were amended on that date. Through the power of attorney, all shareholders of Anhui Huami and Beijing Huami have entrusted the person designated by Shun Yuan as its proxy to exercise their rights as the shareholders of Anhui Huami and Beijing Huami with respect to an aggregate of 100% of the equity interests in Anhui Huami and Beijing Huami. 1. ORGANAZATION AND PRINCIPAL ACTIVITIES - continued Risks in relation to VIE structure – continued The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions within the Group: As of December 31, 2016 2017 RMB RMB Total current assets 742,497 1,178,273 Total non-current assets 81,503 129,588 Total assets 824,000 1,307,861 Total current liabilities 564,532 809,653 Total non-current liabilities — 10,486 Total liabilities 564,532 820,139 For the years ended December 31, 2015 2016 2017 RMB RMB RMB Revenues 895,286 1,552,340 2,042,640 Net income 250,216 269,162 327,101 For the years ended December 31, 2015 2016 2017 RMB RMB RMB Net cash (used in)/provided by operating activities (162,507 ) 15,316 248,642 Net cash used in investing activities (3,370 ) (81,954 ) (19,643 ) Net cash provided by financing activities 36,836 17,500 20,000 The intercompany payable between Anhui Huami and Shunyuan were RMB71,969 and RMB44,420 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principle of consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements of the Group include the financial statements of the Company, its wholly-owned subsidiaries, its VIEs and the VIEs’ subsidiaries. The Company believes that the disclosures are adequate to make the information presented not misleading. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts, inventory valuation, the useful lives of long-lived assets, impairment of long-lived assets, goodwill, product warranties, fair value measurement of ordinary shares and preferred shares, share-based compensation, the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Measured fair value on a recurring basis The Group measured its financial assets and liabilities primarily including available-for-sale securities at fair value on a recurring basis as of December 31, 2016 and 2017. Measured fair value on a nonrecurring basis The Company measured the value of its ordinary shares at fair value to determine the intrinsic value of the beneficial conversion feature attached to the Series B-1 Preferred Shares and Series B-2 Preferred Shares on each of the issuance date. The fair value was determined using models with significant unobservable inputs (Level 3 inputs). 2. SIGNIFICANT ACCOUNTING POLICIES - continued Measured fair value on a nonrecurring basis – continued The Group applied the income approach by applying the discounted cash flow method (“DCF”). The DCF involves applying an appropriate discount rate to discount future cash flows to present value. The future cash flows represent management’s best estimation as of measurement date. The projected cash flow estimation includes, among others, analysis of projected revenue growth, gross margins and terminal value and these assumptions are consistent with the Group’s business plan. In determining an appropriate discount rate, the Group has considered the weighted average cost of capital (“WACC”) by considering relative risk of the industry and the characteristics of the Company. A discount rate of 22% as of the valuation date was used. Goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized. The Group measured goodwill at fair value on a nonrecurring basis when it is evaluated annually or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measured acquired intangible assets using the income approach-discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to other intangible assets arising from acquisitions during the years ended December 31, 2015, 2016 and 2017. The fair value of goodwill is determined using discounted cash flows, and an impairment loss will be recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group did not recognized any impairment loss related to goodwill during the year ended December 31, 2017. The Group did not have any goodwill as of December 31, 2016 and 2015. Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, restricted cash, amount due from related parties, available-for-sale securities investments, accounts payable, notes payable, short-term bank borrowing and amount due to related parties. The Company carries its available-for-sales investments at fair value. The carrying amounts of cash and cash equivalents, accounts receivable, restricted cash, amount due from related parties, accounts payable, notes payable and short-term bank borrowings approximate their fair values due to the short-term maturities of these instruments. The carrying amount of amount due to a related party approximates fair value as it includes a market interest rate. Cash and cash equivalents Cash and cash equivalents consist of cash on-hand, demand deposits with financial institutions, term deposits with an original maturity of three months or less and highly liquid investments, which are unrestricted from withdrawal or use, or which have original maturities of three months or less when purchased. Restricted cash Restricted cash represents deposits made to the bank for bank acceptance notes (or notes payable) issued by the Group. When the Group issues the bank acceptance notes, the banks requires the Group to make a deposit for 60% or 100% of the face value of the bank acceptance notes issued as collateral. The deposits for unsettled bank acceptance notes are recorded as restricted cash in the consolidated balance sheet. Notes payable The Group endorses bank acceptance notes (“Notes”) to suppliers in the PRC in the normal course of business. The Group may endorse these Notes with its suppliers to clear its accounts payable. When the Notes are endorsed by the Group, the Group is jointly liable with other endorsers in the Notes. Notes that have been presented to banks or endorsed with suppliers are derecognized from the consolidated balance sheets when the Notes are settled with banks or when the obligations as endorser are discharged. Accounts receivable Accounts receivable represents those receivables derived in the ordinary course of business, net of allowance for doubtful accounts. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Allowance for doubtful accounts The Group maintains an allowance for doubtful accounts for estimated losses on uncollected accounts receivable. Management considers the following factors when determining the collectability of specific accounts: creditworthiness of customers, aging of the receivables, past transaction history with customers and their current condition, changes in customer payment terms, specific facts and circumstances, and the overall economic climate in the industries the Group serves. Prepaid expenses and other current assets Prepaid expenses and other current assets primarily consist of advance to suppliers, prepaid expenses, other receivables and value-added tax receivables. Inventories Inventories of the Group consist of raw materials, finished goods and work in process. Inventories are stated at the lower of cost or net realizable value on a weighted average basis. Inventory costs include expenses that are directly or indirectly incurred in the purchase, including shipping and handling costs charged to the Group by suppliers, and production of manufactured product for sale. Expenses include the cost of materials and supplies used in production, direct labor costs and allocated overhead costs such as depreciation, insurance, employee benefits, and indirect labor. Cost is determined using the weighted average method. The Group assesses the valuation of inventory and periodically writes down the value for estimated excess and obsolete inventory based upon the product life cycle. During the years ended December 31, 2015, 2016 and 2017, inventory write-down amounted to nil, RMB1,037 and Short-term investments Short-term investments are available-for-sale investments with a maturity of less than one year. The Group’s short-term available-for-sale investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are measured at fair value. Property, plant and equipment, net Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Software and electronic equipment 3-5 years Building 20 years Leasehold improvements Shorter of the lease term or estimated useful lives Intangible asset, net Acquired intangible assets other than goodwill consist of the domain name for the Company’s website www.huami.com and the patents and trademark from the acquisition of Yunding. The domain name is recognized as an intangible asset with indefinite life and evaluated for impairment at least annually or if events or changes in circumstances indicate that the asset might be impaired. Such impairment test compares the fair values of asset with its carrying value amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair value. The estimates of values of the intangible asset not subject to amortization are determined using discounted cash flow valuation approach. Significant assumptions are inherent in this process, including estimates of discount rates. The patents and trademark are recognized as intangible assets with finite lives and are amortized on a straight-line basis over their expected useful economic lives. Amortization is calculated on a straight-line basis over the estimated useful life of 10 years. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Goodwill – continued Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. The Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. During the year ended December 31, 2017, there are no reporting units at risk of step 1 and the Group recognized nil impairment loss on goodwill. Long-term investments The Group’s long-term investments consist of cost method investments, equity method investments and available-for-sale securities investments. (a) Cost Method Investments For investee companies over which the Group does not have significant influence or a controlling interest, the Group carries the investment at cost and recognizes as income any dividend received from distribution of the investee’s earnings. The Group reviews its cost method investments for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Group estimated the fair value of these investee companies based on the discounted cash flow approach. Factors the Group considers in making such a determination include general market conditions, the duration and the extent to which the fair value of an investment is less than its cost, and the Group’s intent and ability to hold such investment. An impairment charge is recorded if the carrying amount of an investment exceeds its fair value and such excess is determined to be other-than-temporary. The Group did not record any impairment loss on its cost method investments during the years ended December 31, 2015, 2016 and 2017. (b) Equity Method Investments For an investee company over which the Group has the ability to exercise significant influence, but does not have a controlling interest, the Group accounts for the investment under the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements are also considered in determining whether the equity method of accounting is appropriate. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Long-term investments – continued Under the equity method of accounting, the investee company’s accounts are not reflected within the Group’s consolidated balance sheets and statements of operations; however, the Group’s share of the earnings or losses of the investee company is reflected in the caption “(loss)/income from equity method investments” in the consolidated statements of operations. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long-term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Group did not record any impairment losses on its equity method investments during the years ended December 31, 2015, 2016 and 2017. (c) Available-for-sale Investments For investments which are determined to be debt securities, the Group accounts for them as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investment is carried at its fair value and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The Group reviews its investments for other than temporary impairment based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Group did not record any impairment losses on its available- for-sale investments during the years ended December 31, 2015, 2016 and 2017, respectively. Revenue recognition The Group generates substantially all of its revenues from sales of smart wearable devices. The Group also generates a small amount of its revenues from its subscription-based services. The Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and the services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. The Group recognizes revenue, net of estimated sales returns and value-added taxes (“VAT”). The Group’s contracts with its customers have multiple element arrangements. The first deliverable is the smart wearable device and embedded firmware that is essential to the functionality of the device. The second deliverable is the software services included with the products, which are provided free of charge and enable users to sync, view, and access real-time data on the Group’s mobile apps. The third deliverable is the embedded right included with the purchase of the device to receive, on a when-and-if-available basis, future unspecified firmware upgrades and features relating to the product’s essential firmware. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - The Group allocates revenue to all deliverables based on their relative selling prices. The Group uses a hierarchy to determine the selling price to be used for allocating revenue to the deliverables: (i) vendor-specific objective evidence (“VSOE”) of fair value, (ii) third-party evidence (“TPE”), and (iii) best estimate of the selling price (“BESP”). Because the Group currently has neither VSOE nor TPE for any of its deliverables, revenue is allocated to the deliverables on the Group’s BESP as if each deliverable was sold regularly on a stand-alone basis. The Group’s process for determining its BESP considers multiple factors including consumer behaviors and the Group’s internal pricing model. The BESP for the smart wearable devices comprises the majority of the arrangement consideration. The BESP for the software services and software upgrades is currently estimated at RMB0.31 per unit, RMB0.43 per unit and RMB1.30 per unit during the years ended December 31, 2015, 2016 and 2017, respectively. The Group recognizes revenue for the amounts allocated to the smart wearable devices at the time of delivery (except as noted below), provided the other conditions for revenue recognition have been met. Most of the revenue for products sold through distributors or retailers is recognized on a sell-in basis. Amounts allocated to the software services and unspecified upgrade rights are deferred and recognized on a straight-line basis over their estimated usage period which approximates 9 months. During the years ended December 31, 2015, 2016 and 2017, the Company generated 97.1%, 92.1% and 78.8% of revenues from one customer that entered into a cooperation agreement as further described below. The remaining revenues during the years ended December 31, 2016 and 2017 was mostly generated from sales of the Company’s self-branded Amazfit products to retailers, distributors and end users, among which the customer discussed above is also an important distribution channel for Amazifit products. The Company’s revenue recognition for its Amazfit products is consistent with that described in the preceding paragraphs. Cooperation agreement with one customer During the years ended December 31, 2015, 2016 and 2017, the Group generated most of its revenues from sales of exclusively designed and manufactured smart wearable devices to one customer, who is also the sole distribution channel for such smart wearable devices. This customer is a company controlled by one of our shareholders (see note 21). Under a cooperation agreement with this customer, the Group produces and assembles final product for shipments of smart wearable devices to that customer, who is then responsible for commercial distribution and sale of the product. The arrangement includes two payment installments. The first payment installment is priced to recover the costs incurred by the Group in developing, producing and shipping the devices to its customer and is due from the customer to the Group once products have been delivered. The Group allocates the initial payment installment between the hardware device, the software services, and the software upgrades based on their relative fair value and recognizes revenue based on its recognition policy further described in the preceding paragraph. The Group is also entitled to receive a potential second installment payment calculated as 50 percent of the future net profits from commercial sales made by the customer. Given the revenue from the profit sharing arrangement is contingent on the commercial sale, the Group recognizes revenue from the second installment in the period following the commercial sale by the customer, which is when the fee is fixed and determinable. The fee related to the second installment is usually earned by the Group between 30 to 45 days after initial shipment of the product to the customer. The second installment is also allocated between the hardware device, the software services, and the software upgrades based on their relative fair value and is recognized based on the Group’s recognition policy further described in the preceding paragraph. The Company’s revenue recognition policy of its products under its cooperation agreement is substantially consistent with that for its sales of Amazfit products except that the installment payments available to its customer under its cooperation agreement are not available to customers who purchase its Amazfit products. Value added taxes “VAT” on sales is calculated at 17% on revenue from products. The Group reports revenue net of VAT. Subsidiaries that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. Rights of return The Group offers limited sales returns for several products. The Group estimates reserves for these sales based on historical experience, and records the reserve as a reduction of revenue and accounts receivable. During the years ended December 31, 2015, 2016 and 2017, actual returns have been insignificant. Cost of revenues Cost of revenues consists primarily of material costs, salaries and benefits for staff engaged in production activities and related expenses that are directly attributable to the production of products. The shipping and handling fees billed to the customers are presented as part of cost of revenues as well. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Product warranty The Group offers a standard product warranty that the product will operate under normal use. For products sold to the one customer under the cooperation agreement, the warranty period is 18 months which includes a six month warranty to that customer and an additional 12 months warranty to end-users. For products sold directly to end users, the warranty period include a 12 months warranty to end users. The Group has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs is recorded as a component of cost of revenues. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as a cost of revenue. Research and development expenses Research and development expenses primarily consist of salaries and benefits for research and development personnel, materials, office rental expense, general expenses and depreciation expenses associated with research and development activities. Advertising expense Advertising expense are expensed as incurred and included in selling and marketing expenses. Total advertising expenses were RMB14,819, RMB13,474 and RMB7,586 for the years ended December 31, 2015, 2016 and 2017, respectively. Government subsidies Government subsidies represent government grants received from local government authorities to encourage the Group’s technology and innovation. The Group records such government subsidies as other income when it has fulfilled all of its obligation related to the subsidy. During the years ended December 31, 2015, 2016 and 2017, the Group recognized RMB549, RMB14,726 and RMB6,719 as subsidy income, respectively. As of December 31, 2017, the balance of RMB9,104 subsidy was deferred and recorded as other current liabilities and other non-current liabilities as the Group has to meet the performance conditions required by the government authority. Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Share-based payment Share-based payment transactions with employees, such as share options are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight-line method for all employee equity awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Comprehensive (loss)/income Comprehensive (loss)/income consists of two components, net income and other comprehensive income, net of tax. Other comprehensive income refers to revenue, expenses, and gains and losses that are recorded as an element of shareholders’ equity but are excluded from net (loss)/income. The Group’s other comprehensive income consists of foreign currency translation adjustments from its subsidiaries not using the RMB as their functional currency and the fair value change of available-for-sale investments of the Group. Comprehensive (loss)/income is reported in the consolidated statements of comprehensive (loss)/income. Foreign currencies The functional currency of the Company outside of the PRC is the US$. The reporting currency of the Company is the RMB. The Company’s subsidiaries, consolidated VIEs and VIEs’ subsidiaries with operations in the PRC, Hong Kong, the United States and other jurisdictions generally use their respective local currencies as their functional currencies. The financial statements of the Company’s subsidiaries, other than the subsidiaries and consolidated VIEs with the functional currency of RMB, are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. In the financial statements of the Company’s subsidiaries and consolidated VIEs and VIEs’ subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated statements of operations during the year in which they occur. RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents denominated in US$ amounted to RMB164,188, RMB98,537 and RMB66,494 as of December 31, 2015, 2016 and 2017, respectively. Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows from RMB into US$ as of and during the year ended December 31, 2017 is solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.5063, representing the rate as certified by the statistical release of the Federal Reserve Board of United States on December 29, 2017. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollar at that rate on December 29, 2017, or at any other rate. Net (loss)/income per share Basic net (loss)/income per share is computed by dividing net (loss)/income attributable to ordinary shareholders by the weighted average number of ordinary shares o |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. BUSINESS ACQUISITIONS Acquisition of Yunding In March 2016, the Group invested and paid RMB2,520 to obtain 35% equity interests in Yunding to expand the business of smart technology devices and benefit from the synergistic effect expected from such investment. The investment was initially recognized as an equity-method investment as the Group enjoyed one out of three board seats and concluded that it had significant influence over the operations of Yunding. In July 2017, the Group acquired an additional 22% equity interests in Yunding for consideration of RMB1,584 in cash. The acquisition resulted in the Group obtaining control of Yunding with an ownership of 57% equity interests. The purchase price consists of the following: RMB Cash consideration 1,584 Fair value of the 35% equity interests: Carrying amount 380 Gain on re-measurement of fair value of noncontrolling equity investment 2,140 Total 4,104 The Group recognized RMB2,140 of realized gain from investment in the consolidated statements of operations as a result of remeasuring the 35% equity interests to fair value immediately before the business combination. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The acquisition-date fair value of the equity interests held by the Company immediately prior to the acquisition date was measured at fair value using a discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. The purchase price allocation described below was determined by the Group with the assistance of an independent valuation appraiser. Yunding financial statements constituted less than 1% of revenue, net income, and total assets of the consolidated financial statement as of and during the year ended December 31, 2017. The acquired net assets were recorded at their estimated fair values on the acquisition date. The acquired goodwill is not deductible for tax purposes. 3. BUSINESS ACQUISITIONS - continued Acquisition of Yunding - The purchase price was allocated as of July 31, 2017, the date of acquisition as follows: RMB Amortization period Cash 3,475 Other current assets 3,213 Property, plant and equipment 134 3.6-4.8 years Intangible assets Patents 4,203 10 years Goodwill 5,930 Other current liabilities (2,887 ) Deferred tax liabilities (955 ) Other non-current liabilities (6,033 ) Noncontrolling interests (2,976 ) Total 4,104 The goodwill is mainly attributable to intangible assets that cannot be recognized separately as identifiable assets under US GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. INVENTORIES Inventories consisted of the following: As of December 31, 2016 2017 RMB RMB Raw materials 115,374 169,665 Work in process 30,528 30,195 Finished goods 46,470 49,875 Total 192,372 249,735 During the years ended December 31, 2015, 2016 and 2017, the Group recorded write-down of nil, RMB1,037 and RMB2,449 for the obsolete inventories respectively. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2017 | |
Short Term Investments [Abstract] | |
Short-Term Investments | 5. SHORT-TERM INVESTMENTS Short-term investments included convertible bonds with maturities less than 1 year and consisted of the following: As of December 31, 2016 2017 RMB RMB Convertible bonds: Abee Semi, Inc. (“Abee”) (a) 7,198 7,208 Beijing Zulin Technology Co., Ltd. (“Zulin”) (b) 2,038 — Zepp International Limited (“Zepp”) (c) — 6,513 Total: 9,236 13,721 (a) In June 2016, the Group invested RMB6,937 to acquire a convertible bond issued by Abee, a Delaware corporation, with 7% interest rate per annum and one year maturity. In June, 2017, the Group agreed to extend the maturity date for one additional year. The investment was classified as an available-for-sale investment and measured at fair value. Unrealized holding gains of RMB261 and RMB10 was reported in other comprehensive income during the years ended December 31, 2016 and 2017, respectively. (b) On July 25, 2016, the Group entered into a one-year convertible bond investment agreement with Zulin with principal amounted to RMB2,000 and interest rate of 4.35%. On April 20, 2017, Zulin repaid the principle and interest totaling RMB2,062. The group recognized RMB62 as realized gain from investment. (c) In December 2017, the Group invested RMB6,506 to acquire a convertible bond issued by Zepp, with 10% interest rate and nine months maturity. The investment was classified as an avaiable-for-sale investment and measured at fair value. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS As of December 31, 2016 2017 RMB RMB Deferred IPO expense — 13,268 Value-added tax — 13,170 Short-term loans provided (a) — 11,857 Advances to suppliers 1,229 5,128 Other receivables 2,418 4,656 Rental deposits 2,316 1,969 Prepaid expenses 2,715 1,014 Total 8,678 51,062 (a) During the year ended December 31, 2017, the Group provided short-term loans to third parties within one year maturity. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 7. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of December 31, 2016 2017 RMB RMB Software and electronic equipment 5,627 7,092 Buildings — 18,592 Leasehold improvements 7,872 9,327 Total 13,499 35,011 Less: accumulated depreciation (2,698 ) (6,256 ) Property, plant and equipment, net 10,801 28,755 The Group has recorded depreciation expenses of RMB285, RMB2,399 and RMB3,542 during the years ended December 31, 2015, 2016 and 2017, respectively. No impairment was recorded during the years ended December 31, 2015, 2016 and 2017. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Long-Term Investments | 8. LONG-TERM INVESTMENTS Long-term investments consisted of the following: As of December 31, 2016 2017 RMB RMB Cost method investments (a) 7,750 750 Equity method investments: Hefei Huaying Xingzhi Fund Partnership (limited partnership) (“Huaying Fund”) (b) 50,000 55,905 Other equity method investments (c) 19,303 8,097 Available-for-sale investments (d) 1,004 20,486 Total 78,057 85,238 (a) On July 27, 2017, the Group sold its investment in Beijing Feisou Technology Co., Ltd. (“Beijing Feisou”) for a total cash consideration of RMB5,133 to Huaying Fund, and recognized a gain of RMB67. (b) In August 2016, the Group invested RMB50,000 to acquire 49.5% equity interests in a limited partnership, Huaying Fund, a fund engaged in the investing activities in small and middle scale High Tech private companies. The Group accounted for the investment under the equity method because the investments are of common stock and the Group has significant influence in the Fund but does not own a majority equity interest or otherwise control. (c) The other equity method investments represent several insignificant investments classified as equity method investments as the Group has the ability to exercise significant influence but does not have control over the investees during the year of December 31, 2017. ( d ) Available-for-sales consist of convertible bonds and investment with redemption features. In July 2017, the Group converted a RMB8,000 loan previously provided to Hefei LianRui, resulting in the Group obtaining an aggregate 27.5% interest and reclassify its investment from cost method to equity method investment. In November 2017, the Group disposed certain interest to Huaying, and obtained 17.16% interest after dilution In December 2017, LianRui granted certain redemption option to its investors. Accordingly, the investment was reclassified as available-for-sale security as the Group determined that the shares were debt securities in nature due to the redemption option available to the investors and measured the investment subsequently at fair value. Unrealized holding gain of RMB10,363 was reported in other comprehensive income for the year ended December 31, 2017. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Fair Value Measurement | 9. FAIR-VALUE MEASUREMENT As of December 31, 2016 and 2017, available-for-sale investments recorded in short-term and long-term investments mainly include the convertible bonds As of December 31, 2016 Description Quoted Prices in Active Market for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total RMB RMB RMB RMB Convertible bonds — 10,240 — 10,240 Total: — 10,240 — 10,240 As of December 31, 2017 Description Quoted Prices in Active Market for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total RMB RMB RMB RMB Convertible bonds — 14,130 — 14,130 Redeemable preferred shares — 20,077 — 20,077 Total: — 34,207 — 34,207 The Group measured the fair value of the convertible bonds based on the respective principals, expected returns and the estimated conversion value. Those convertible bonds are classified as level 2 measurement. The Company measured the fair value of the redeemable preferred shares based on the recent transactions. Recent transactions include the purchase price agreed by an independent third party for an investment with similar terms. This investment is classified as level 2 measurement No transfers occurred between different level fair-value measurements during the years presented. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | 10. OTHER NON-CURRENT ASSETS In May 2017, the Group signed a commitment to purchase certain properties from Anhui Zhong’an Chuanggu Technology Park Co., Ltd. for business operating purpose. In June 2017, the Group has prepaid RMB3,000 cash consideration as the down payment and recorded it as other non-current assets. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2016 2017 RMB RMB Deferred revenue 9,159 17,876 Product warranty 4,870 8,431 Accrued payroll and welfare 17,937 30,207 Accrued expenses 1,386 3,943 Accrued professional fee — 13,268 Other tax payable 8,899 6,569 Other current liabilities 5,372 13,504 Total 47,623 93,798 Product warranty activities were as follows: Product Warranty RMB Balance as of January 1, 2015 843 Provided during the year 12,255 Utilized during the year (8,823 ) Balance at December 31, 2015 4,275 Provided during the year 14,153 Utilized during the year (13,558 ) Balance at December 31, 2016 4,870 Provided during the year 23,093 Utilized during the year (19,532 ) Balance at December 31, 2017 8,431 The warranty costs recorded in cost of revenue were RMB12,255, RMB14,153 and RMB23,093 during the years ended December 31, 2015, 2016 and 2017, respectively. |
Bank Borrowing
Bank Borrowing | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Bank Borrowing | 12. BANK BORROWING On December 22, 2016, the Group has entered into a loan agreement with Hui Shang Bank amounted to RMB10,000 with one year maturity and a floating interest rate up to 121% of the benchmark interest rate on payment date, and on December 22, 2017, the loan was fully repaid by the Group. On January 4, 2017, the Group borrowed another loan amounted to RMB30,000 from Hefei Branch of China Merchants Bank with one year maturity and a fixed interest rate of 5%. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | 13. INCOME TAXES The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. The Company’s subsidiary Huami HK Limited is located in Hong Kong and is subject to an income tax rate of 16.5% for taxable income earned in Hong Kong. The Company’s subsidiaries, Huami Inc and Rill, are located in the U.S. and are subject to the US federal On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to, (1) reducing the U.S. federal corporate tax rate, (2) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years, and (3) bonus depreciation that will allow for full expensing of qualified property. The impact of the Tax Act is not material to our operation and resulted in a decrease in income tax rate from 35% before January 1, 2018 to 21% after January 1, 2018 for tax and income earned as determined in accordance with the relevant tax rules and regulations . The Company’s PRC subsidiaries, the VIEs and VIEs’ subsidiaries are subject to the 25% standard enterprise income tax rate except for Anhui Huami that qualify as a high and new technology enterprise (“HNTE”), which is subject to a tax rate of 15%. Anhui Huami began to qualify as HNTE since 2015 and was subject to a tax rate of 15% during the years ended December 31, 2015, 2016 and 2017. The current and deferred components of income taxes appearing in the consolidated statements of operation are as follows: For the years ended December 31, 2015 2016 2017 RMB RMB RMB Current tax expenses 2,311 21,556 46,573 Deferred tax benefits (3,208 ) (18,468 ) (18,962 ) Income tax (benefit) expense (897 ) 3,088 27,611 The significant components of the Group’s deferred tax assets and liabilities were as follows: As of December 31, 2016 2017 RMB RMB Deferred tax assets Accrued expenses 208 7,919 Net operating loss carry forwards 22,764 33,976 Total deferred tax assets 22,972 41,895 Less: valuation allowance — — Deferred tax assets, net 22,972 41,895 As of December 31, 2017, the Group had RMB143,710 operating loss carry forwards that expire from 2020 through 2037, which will be available to offset future taxable income. 13. INCOME TAXES – CONTINUED Reconciliation between the income tax expense computed by applying the PRC enterprise tax rate of 25% to (loss)/income before income tax and actual provision were as follows: For the years ended December 31, 2015 2016 2017 RMB RMB RMB (Loss) income before income tax (38,750 ) 28,863 191,900 Tax (benefit) expense at PRC enterprise (9,688 ) 7,216 47,975 income tax rate of 25% Income tax on tax holidays (2,972 ) (16,533 ) (30,740 ) Tax effect of permanence differences (2,080 ) (621 ) (8,190 ) Effect of income tax rate differences in jurisdictions other than the PRC 13,843 13,026 14,364 Change in tax rate — — 4,202 Income tax (benefit) expense (897 ) 3,088 27,611 If the tax holiday granted to Anhui Huami was not available, the Group’s income tax expense would have increased by RMB2,972, RMB16,533 and RMB30,740, the basic net income per share attributable to the Company would have decreased by RMB0.06, RMB0.30 and RMB0.45 during the years ended December 31, 2015, 2016 and 2017, respectively, and the diluted net income per share attributable to the Company would have decreased by RMB0.06, RMB0.30 and RMB0.45 during the years ended December 31, 2015, 2016 and 2017, respectively. The group assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. On the basis of this evaluation, for the years ended December 31, 2015, 2016 and 2017, no allowance has been recorded for the deferred tax assets. Under the Income Tax Law effective from January 1, 2008, the rules for determining whether an entity is resident in the PRC for tax purposes have changed and the determination of residence depends among other things on the “place of actual management”. If the Group, or its non-PRC subsidiaries, were to be determined as a PRC resident for tax purposes, they would be subject to a 25% income tax rate on their worldwide income including the income arising in jurisdictions outside the PRC. The Group does not believe that its legal entities organized outside of the PRC are considered PRC residents. If the Company was to be a non-resident for PRC tax purposes, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC entities to the entities organized outside of the PRC or any foreign investors, the withholding tax would be 10%, unless any entities organized outside of the PRC or any such foreign investors' jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Aggregate undistributed earnings of the Company’s PRC subsidiaries and VIEs that are available for distribution was RMB100,329 and RMB350,251 as of December 31, 2016 and 2017, respectively. Upon distribution of such earnings, the Company will be subject to PRC EIT taxes, the amount of which is impractical to estimate. The Company did not record any tax on any of the aforementioned undistributed earnings because the relevant subsidiaries and VIEs do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings because the Company believes the undistributed earnings can be distributed in a manner that would not be subject to income tax. The Group did not identify any significant unrecognized tax benefits for the years ended December 31, 2015, 2016 and 2017, respectively. The Group did not incur any significant interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods. According to the PRC Tax Administration and Collection Law, the tax authority may require the taxpayer or the withholding agent to make delinquent tax payment within three years if the underpayment of taxes is resulted from the tax authority’s act or error. No late payment surcharge will be assessed under such circumstances. The statute of limitation will be three years if the underpayment of taxes is due to the computational errors made by the taxpayer or the withholding agent. Late payment surcharge will be assessed in such case. The statute of limitation will be extended to five years under special circumstances which are not clearly defined (but an underpayment of tax liability exceeding US$16 (RMB0.1 million) is specifically listed as a “special circumstance”). The statute of limitation for transfer pricing related issue is ten years. There is no statute of limitation in the case of tax evasion. Therefore, the Group’s PRC domiciled entities are subject to examination by the PRC tax authorities based on the above. |
Parent Company | |
Income Taxes | 3. INCOME TAXES The Company is a Cayman Islands company, therefore, is not subjected to income taxes for all years presented. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Ordinary Shares | 14. ORDINARY SHARES The Company’s Amended and Restated Certificate of Formation authorizes the Company to issue 405,462,685 ordinary shares with a par value of US$0.0001 per share approximately. As of December 31, 2016 and 2017, the Company had 91,169,327 and 91,304,327 ordinary shares issued and outstanding, respectively. |
Preferred Shares
Preferred Shares | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Preferred Shares | 15. PREFERRED SHARES In January 2014, a subsidiary of Xiaomi one of our shareholders, purchased a 40% equity ownership of Anhui Huami for a total consideration of RMB15,000. Such equity interest included preferential rights to ordinary shares with respect to redemption and distribution of proceeds upon liquidation (“Series A Preferential Equity Interest”). Upon the reorganization, investors exchanged their Series A Preferential Equity Interest into 35,820,896 Series A Preferred Shares. The terms of the Series A Preferred Shares effectively mirrored those of the Series A Preferential Equity Interest. As this transaction represented an exchange as opposed to an extinguishment of preferred shares, only an increase in fair value required accounting. The Company calculated the increase in fair value of Series A Preferred Shares compared to the initial Series A Preferential Equity Interest at the time of the exchange and concluded that the increase was insignificant. In April 2015, the Group repurchased 2,000,000 ordinary shares held by HHtech Holdings Limited, a Company controlled by the Group’s founder at a consideration of RMB19,467. The fair value of the ordinary shares immediately prior to the repurchase was determined by the Group with the assistance of an independent valuation firm and amounted to RMB5.14 per share. The difference between the repurchase price paid to HHtech and the fair value of the ordinary shares was recorded as share-based compensation expense during the year ended December 31, 2015. At the same time, the Group issued 2,000,000 Series B-1 Preferred Shares at a consideration of RMB19,467 to Shunwei. The difference between the fair value of Series B-1 Preferred share of RMB9.9 per share as determined by the Group with the assistance of an independent valuation firm and the consideration paid by Shunwei was not significant. In April 2015, 20,895,523 Series B-2 preferred shares (“Series B-2 Preferred Shares”)were issued at an issuance price of approximately RMB10.25 per share (the “Series B-2 Purchase Share Issue Price”, collectively with the “Series A Purchase Share Issue Price” and “Series B-1 Purchase Share Issue Price”, the “Preferred Share Issue Price”) for a total gross cash proceeds of RMB214,063 to Morningside China TMT Special Opportunity Fund, LP, Mornings ide China TMT Fund III Co-Investment, L.P (collectively referred to “Mornings ide”),Banyan Capital Holding Co. Ltd (“Banyan”)and SCC Venture V Holdco I, Ltd. (“SCC”). At the same time, bridge loans previously issued during the year ended December 31, 2014 to Banyan and SCC for RMB36,682 and RMB18,359 were converted into 3,582,090 and 1,791,045 Series B-2 Preferred Shares at a conversion price of approximately RMB10.25. Remaining proceeds of RMB159,022 from Series B-2 were paid and received in full. The significant terms of the Series A Preferred Shares, Series B-1 Preferred Shares and Series B-2 Preferred Shares issued by the Company are as follows: Conversion rights Optional Conversion Each holder of Preferred Shares shall have the right, at such holder’s sole discretion, to convert all or any portion of the Preferred Shares into Ordinary Shares at any time. The conversion rate for Preferred Shares shall Conversion price adjustment The initial conversion price will be the applicable Preferred Share Issue Price, which will be subject to adjustments to reflect stock dividends, stock splits and other events (the “Preferred Share Conversion Price”), being no less than par value. The conversion price is subject to (1) Adjustment for Share Dividends, Subdivisions, Combinations or Consolidations of Ordinary Shares; (2) Adjustments for Other Distributions; (3) Adjustments for Reclassification, Exchange and Substitution; (4) Deemed issue of additional ordinary shares. 15. PREFERRED SHARES – CONTINUED Automatic Conversion Each Preferred Share shall automatically be converted into ordinary shares of the Company, at the then applicable Preferred Share Conversion Price (i) upon the closing of a Qualified Initial Public Offering (the “Qualified IPO”); (ii) upon the prior written approval of the holders of a majority of the Series A Preferred Shares and the holders of two thirds (2/3) of the Series B Preferred Shares. Voting rights Each Preferred Share shall carry a number of votes equal to the number of Ordinary Shares then issuable upon its conversion into Ordinary Shares at the record date for determination of the shareholders entitled to vote on such matters, or, if no such record date is established, at the date such vote is taken or any written consent of shareholders is solicited. Redemption rights Redemption Condition for Series A Preferred Shares: The Series A Preferred Shares is redeemable at any time after the earlier of: ( i ) forty-eight (48) months after January 17, 2014, if the Company has not consummated a Qualified IPO; (ii) any Redemption required by other Investors (the “Redemption Start Date for Series A Shares”, together with Redemption Start Date for Series B Shares, the “Redemption Start Date”), then subject to the applicable laws of the Cayman Islands and if so requested by the Majority Series A Holders, the Company shall redeem all or part of the issued, outstanding Series A Preferred Shares in cash out of funds legally available therefor (the “Series A Redemption”, together with the Series B Redemption, the “Redemption”). Redemption Condition for Series B Preferred Shares: The Series B Preferred Shares is redeemable, at any time after the earlier of: ( i ) forty-eight (48) months after January 17, 2014, if the Company has not consummated a Qualified IPO; (ii) any Redemption required by other Investors (the “Redemption Start Date for Series A Shares”, together with Redemption Start Date for Series B Shares, the “Redemption Start Date”), then subject to the applicable laws of the Cayman Islands and if so requested by the Majority Series A Holders, the Company shall redeem all or part of the issued, outstanding Series A Preferred Shares in cash out of funds legally available therefor (the “Series A Redemption”, together with the Series B Redemption, the “Redemption”). Redemption Price for Series A Preferred Shares: The redemption price of each Series A preferred share (the “Series A Redemption Price) shall be the higher Of: (i) the sum of the Series A preferred share issuance price; plus 15% compound interest per annum on the Series A preferred share issuance price for each Series A preferred share accreted over the period from January 17, 2014 to the earliest redemption date of the security; plus all declared but unpaid dividends per Series A preferred share; (ii) the fair market value determined in accordance with the assessment by the independent appraiser selected jointly by the majority holders of Series A and the Company. 15. PREFERRED SHARES – CONTINUED Redemption Price for Series B Preferred Shares: The redemption price of each Series B preferred share (the “Series B Redemption Price”, together with the “Series A Redemption Price”, the “Redemption Price”) shall be the higher of: (i) the sum of the Series B preferred share issuance price; plus 12% compound interest per annum on the Series B preferred share issuance price for each Series B preferred share accreted over the period from the date of issuance to the earliest redemption date of the security; plus all declared but unpaid dividends per Series B preferred share; (ii) the fair market value of each Series B preferred share determined in accordance with the assessment by the independent appraiser selected jointly by the holders of the majority holders of Series B Holders and the Company at the date of redemption. Dividends rights No dividend, whether in cash, in property or in shares of the capital of the Company, shall be paid on any other class or series of shares of the Company unless and until a cumulative dividend at the rate of eight percent (8%) of the applicable Preferred Share Issue Price per annum per Preferred Share is first paid in full on the Preferred Shares (on an as-converted basis). Dividends shall be paid on the Series B Preferred Shares, payable out of funds or assets when and as such funds or assets become legally available therefor on parity with each other, on an as-converted basis and prior and in preference to any dividend on the Series A Preferred Shares; after full and unconditional payment of all dividends on the Series B Preferred Shares, dividends shall be paid on the Series A Preferred Shares, payable out of funds or assets when and as such funds or assets become legally available therefor on parity with each other, Liquidation rights: Liquidation Preferences In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, all assets and funds of the Company legally available for distribution among holders of the outstanding Shares (on an as-converted to basis) in the following order and manner: ( i ) the holders of the Series B Preferred Shares shall be entitled to receive, prior to any distribution to the holders of the Series A Preferred Shares, the Ordinary Shares or any other class or series of shares then issued, outstanding, an amount per Series B Preferred Share equal to one hundred and fifty percent (150%) of the applicable Series B Issue Price (the “Series B Preference Amount”); (ii) after the full Series B Preference Amount has been paid on all issued, outstanding Series B Preferred Shares, the holders of the Series A Preferred Shares shall be entitled to receive, prior to any distribution to the holders of the Ordinary Shares or any other class or series of shares then issued, outstanding, an amount per Series A Preferred Share equal to one hundred and fifty percent (150%) of the Series A Issue Price (the “Series A Preference Amount”); (iii) after the full Series B Preference Amount and the Series A Preference Amount on all issued, outstanding Preferred Shares has been paid, any remaining funds or assets of the Company legally available for distribution to shareholders shall be distributed on a pro rata, pari passu basis among the holders of the Preferred Shares (on an as-converted basis), together with the holders of the Ordinary Shares. Liquidation Event The following events shall be deemed a liquidation, dissolution or winding up of the Company (each, a “Liquidation Event”): ( i ) any acquisition of the Company (whether by a sale of equity, merger or consolidation) in which in excess of 50% of the Company’s voting power outstanding before such transaction is transferred; (ii) a sale of all or substantially all of the Company’s assets and no substantial business operations will be continued by the Company. 15. PREFERRED SHARES – CONTINUED The change in the balance of Series Preferred included in mezzanine equity during the years ended December 31, 2015, 2016 and 2017 are as follows: Series A Preferred Series B-1 Preferred Series B-2 Preferred RMB RMB RMB Balance as of January 1, 2015 15,000 — — Issuance of Series B-1 preferred shares — 19,819 — Issuance of Series B-2 preferred shares — — 214,063 Accretion of Preferred A shares 4,799 — — Accretion of Preferred B shares — 1,222 17,376 Balance as of December 31, 2015 19,799 21,041 231,439 Accretion of Preferred A shares 3,209 — — Accretion of Preferred B shares — 2,738 30,121 Balance as of December 31, 2016 23,008 23,779 261,560 Accretion of Preferred A shares 3,762 — — Accretion of Preferred B shares — 3,127 34,382 Balance as of December 31, 2017 26,770 26,906 295,942 The Group recognizes changes in the redemption value ratable over the redemption period. Increases in the carrying amount of the redeemable preferred shares are recorded by charges against retained earnings, or in the absence of retained earnings, by charges as reduction of additional paid-in capital until additional paid-in capital is reduced to zero. Once paid-in capital is reduced to zero, the redemption value measurement adjustment is recognized as an increase in accumulated deficit. All of these preferred shares were converted to ordinary shares upon the Qualified IPO which was completed in February 2018. |
Share-Based Payment
Share-Based Payment | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Payment | 16. SHARE-BASED PAYMENT Restricted Share owned by the founders As one of the condition to the closing of the Preferential Equity Interests in January 2014, two founders entered into a share restriction agreement with the preferential equity interests shareholders. Pursuant to this agreement, those founders are prohibited from transferring, selling, assigning, pledging or disposing in any way their equity interests in the Company before such interest is vested. The equity interests held by the Founders were 50% converted to restricted equity interests and vest in 24 equal and continuous monthly installments for each month starting from January 2014, provided that those founders remain full-time employees of the Group at the end of such month. A total of 45,567,164 restricted shares were held by those founders as of April 2015. In April 2015, as one of the condition of the closing of the preferred shareholder agreement, the agreement was amended to (1) restrict additional shares and extend the vesting period for an additional 48 months and (2) restrict shares held by four other founders similar to the restrictions imposed in January 2014. The Group also obtained an irrevocable and exclusive option to repurchase all of the restricted shares held by those founders at par value both in January 2014 and April 2015. The share restriction agreement between the founders and the Company was accounted for as a grant of restricted stock awards under a stock-based compensation plan. Accordingly, the Group measured the fair value of the restricted shares of the Founders at the grant date and recognizes the amount as compensation expense over the service period. Additionally, the modification of the restriction in April 2015 was accounted as a modification of share-based compensation. The Group calculated the incremental fair value resulting from the modification and recorded it as share-based compensation over the revised vesting term. 16. SHARE-BASED PAYMENT – CONTINUED A summary of non-vested restricted share activity during the year ended December 31, 2017 is presented below: Number of shares Outstanding at January 1, 2017 34,175,373 Granted — Forfeited — Vested 11,391,791 Outstanding at December 31, 2017 22,783,582 The Group determined that the non-vested restricted shares are participating securities as the holders of the non-vested restricted shares have a non-forfeitable right to receive dividends with all ordinary shares but the non-vested restricted shares do not have a contractual obligation to fund or otherwise absorb the Group’s losses. See note 22 for details. During the years ended December 31, 2015, 2016 and 2017, the Group recorded share-based compensation expense of RMB37,188, RMB50,842 and RMB51,463 related to the unvested shares of the Founders respectively. Share options On October 21, 2015, the Group adopted the 2015 share incentive plan (“2015 Plan”) which consists of a share incentive plan for U.S. service providers (“US Plan”) and a share incentive plan for PRC service providers (“PRC Plan”). The maximum aggregate number of ordinary shares that may be issued under the 2015 Plan is 14,328,358 ordinary shares to be allocated to employees, officers, directors or consultants of the Company. During the years ended December 31, 2015, 2016 and 2017, the Group granted 270,000, 140,000 and nil share options to certain personnel under the US Plan. Those options have an exercise price of US$0.1 per share and vest over four years. 25% of the share options vest on the first anniversary, while the remaining vest 1/3 yearly after each one-year continuous service. The share options expire 10 years from the date of grant. . During the years ended December 31, 2015, 2016 and 2017, the Group granted 5,061,622, 925,235 and 1,545,688 share options to certain personnel under the PRC Plan. Those options have an exercise price of US$0 per share and expire 10 years from the date of grant. Those options also include an exercise provision whereas shares become exercisable after the closing of an IPO. The Group has not recorded any share-based compensation expense during the years ended December 31, 2015, 2016 and 2017 related to such options. Share-based compensation related to those options will be recorded once the closing of an IPO becomes probable. During the years ended December 31, 2015, 2016 and 2017, the Group granted 900,000, nil and 500,000 share options to certain personnel under the U.S. Plan which were fully vested as of the grant date. Those options have an exercise price range from US$0.79 to US$0.99 per share and expire 10 years from the date of grant. The Group calculated the estimated fair value of the options on the respective grant dates using the binomial option pricing model with assistance from independent valuation firms. Assumptions used to determine the fair value of share options granted during the years ended December 31, 2015, 2016 and 2017 are summarized in the following table: For the years ended December 31, 2015 2016 2017 Risk-free interest rate 2.04 % 1.62%-2.85% 2.2 % Expected volatility 46.1 % 46.2 % 49.0 % Expected life of option (years) 10 10 9.76-10 Expected dividend yield 0.0 % 0.0 % 0.0 % Fair value per ordinary share 5.83 7.5 12.56 16. SHARE-BASED PAYMENT – CONTINUED Share options - continued (i) Risk-free interest rate Risk-free interest rate was estimated based on the yield to maturity of China international government bonds with a maturity period close to the contractual term of the options. (ii) Expected life of option (years) Expected life of option (years) represents the expected years to vest the options. (iii) Volatility The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the contractual term of the options. (iv) Dividend yield The dividend yield was estimated by the Group based on its expected dividend policy over the contractual term of the options. (v) Fair value of underlying ordinary shares The estimated fair value of ordinary shares as of the respective dates was determined based on a retrospective valuation with the assistance of a third party appraiser. A summary of the stock option activity under the 2015 Plan during the year ended December 31, 2017 is included in the table below. Options granted Share Number Weighted average exercise price per option RMB Outstanding at January 1, 2017 6,078,298 0.91 Granted 2,045,688 1.26 Exercised 135,000 0.65 Cancelled and Forfeited 650,427 0.14 Outstanding at December 31, 2017 7,338,559 1.03 The following table summarizes information regarding the share options granted as of December 31, 2017: As of December 31, 2017 Options Number Weighted- average exercise price per option Weighted- average remaining exercise contractual life (years) Aggregate intrinsic value RMB RMB Options Outstanding 7,338,559 1.03 8.38 94,233 Exercisable 1,400,000 5.42 8.46 17,977 Expected to vest 5,938,559 — 8.36 76,256 The total intrinsic value of options exercised during the years ended December 31, 2015, 2016 and 2017 amounted nil, RMB262 and RMB1,695, respectively. 16. SHARE-BASED PAYMENT – CONTINUED Share options - continued The weighted average grant date fair value of options granted during the year ended December 31, 2015, 2016 and 2017 was RMB5.43, RMB5.67 and RMB11.22 per share, respectively. During the years ended December 31, 2015, 2016 and 2017, the Group recorded share-based compensation expense of RMB2,632, RMB394 and RMB4,713 related to the options granted under the 2015 Plan. As of December 31, 2017, there was RMB44,216 of unrecognized compensation expenses related to the options and most of them are expected to be recognized upon a Qualified IPO. Restricted Share On October 21, 2015, the Company granted 4,740,777 restricted shares under the U.S. Plan to employees at exercise price of US$0 per share. These shares have a vesting period of four years of employment services with the first one-fourth vesting on the first anniversary from grant date, and the remaining three-fourth vesting on an annual basis over a three-year period ending on the fourth anniversary of the grant date. The non-vested shares are not transferable and may not be sold or pledged and the holder has no voting or dividend right on the non-vested shares. In the event a non-vested shareholder’s employment for the Company is terminated for any reason prior to the fourth anniversary of the grant date, the holder’s right to the non-vested shares will terminate effectively. The outstanding non-vested shares shall be forfeited and automatically transferred to and reacquired by the Company at nil consideration. The Group recognized compensation expense over the four year service period on a straight line basis. The aggregate fair value of the restricted shares at grant dates was RMB25,397. The fair values of non-vested shares are measured at the fair value of the Company’s ordinary shares on the grant-date which was RMB5.36 (US$0.84). As of December 31, 2017 there was RMB6,977 unrecognized compensation cost related to non-vested shares which is expected to be recognized over a weighted average vesting period of 1.1 years. During the year ended December 31, 2015, the Company granted 4,740,777, cancelled and forfeited 103,430 restricted shares under the US Plan to employees at exercise price of US$0 per share. There were no restricted shares granted, cancelled or forfeited during the years ended December 31, 2016 and 2017. During the years ended December 31, 2015, 2016 and 2017, the Group recorded compensation expense of RMB5,757, RMB6,499 and RMB6,611 related to the restricted shares, respectively. Restricted Stock Units During the year ended December 31, 2015, 2016 and 2017, the Company granted 795,500, 745,000 and 1,700,000 restricted stock units respectively to employees at exercise price of US$0 per share. These shares have a vesting period of four years of employment services with the first one-fourth vesting on the first anniversary from grant date, and the remaining three-fourth vesting on an annual basis over a three-year period ending on the fourth anniversary of the grant date. The restricted stock units (“RSU”) are not transferable and may not be sold or pledged and the holder has no voting or dividend right on the non-vested shares. In the event a non-vested shareholder’s employment for the Company is terminated for any reason prior to the fourth anniversary of the grant date, the holder’s right to the non-vested shares will terminate effectively. The outstanding restricted stock units shall be forfeited and automatically transferred to and reacquired by the Company at nil consideration. The Group recognized compensation expense over the four year service period on a straight line basis. The aggregate fair value of the restricted stock units at grant dates was RMB27,604. The fair values of non-vested shares are measured at the fair value of the Company’s ordinary shares on the grant-date which were RMB5.4, RMB5.96 and RMB11.38 during the years ended December 31, 2015, 2016 and 2017. 16. SHARE-BASED PAYMENT – CONTINUED Restricted Stock Units - continued As of December 31, 2017 there was RMB25,021 unrecognized compensation cost related to restricted stock units which is expected to be recognized over a weighted average vesting period of 3.13 years. The weighted average granted fair value of restricted stock units granted during the years ended December 31, 2015, 2016 and 2017 were RMB5.8 per RSU, RMB7.5 per RSU and RMB12.54 per RSU. A summary of the restricted stock units activity during the year ended December 31, 2017 is presented below: RSUs Unvested balance at January 1, 2017 1,176,050 Granted 1,700,000 Cancelled and Forfeited 577,275 Unvested balance at December 31, 2017 2,298,775 Total share-based compensation recognized was as follows: For the years ended December 31, 2015 2016 2017 RMB RMB RMB Research and development 2,588 2,626 6,983 General and administrative 53,403 55,109 55,804 Total stock-based compensation expense (1) 55,991 57,735 62,787 (1) The total amount in 2015, included RMB10,414 of share-based compensation expense derived from the repurchase of ordinary share from the founder at a price in excess of fair value. There was no repurchase of ordinary share from the founder occurred in 2016 and 2017. See |
Mainland China Contribution Pla
Mainland China Contribution Plan | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Mainland China Contribution Plan | 17. MAINLAND CHINA CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The total provisions for such employee benefits were RMB7,129, RMB19,290 and RMB24,539 during the years ended December 31, 2015, 2016 and 2017. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 18. NONCONTROLLING INTERESTS Yunding RMB Balance as of January 1, 2017 — Addition of noncontrolling interest in connection with acquisition (a) 2,976 Loss attributed to noncontrolling interest shareholders (587 ) Balance as of December 31, 2017 2,389 (a) In July 2017, the Group purchased an additional 22% of Yunding resulting in the Group controlling Yunding through 57% ownership. See Note 3. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 19. SEGMENT INFORMATION The Group is mainly engaged in the business of smart wearable technology development. The Group’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer of the Group, who reviews financial information of operating segments when making decisions about allocating resources and assessing performance of the Group. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Group’s CODM. During the years ended December 31, 2015, 2016 and 2017, the Group identified two operating segments. Those segments include Xiaomi Wearable Products and Self-branded products and others. The wearable products segment comprise of sales of Xiaomi-branded products. The self-branded products and others segment comprises of self-branded products. Both Xiaomi Wearable Product and Self-branded products and others have been identified as reportable segments. The Group operates mainly in the PRC and most of the Group’s long-lived assets are located in the PRC. The Group’s CODM evaluates performance based on each reporting segment’s revenue, costs of revenues and gross profit. Revenues, cost of revenues and gross profits by segment are presented below. Separate financial information of operating income by segment is not available. For the years ended December 31, 2015 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 870,766 25,692 896,458 Cost of revenues 762,211 23,656 785,867 Gross Profit 108,555 2,036 110,591 For the years ended December 31, 2016 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 1,434,136 122,340 1,556,476 Cost of revenues 1,182,646 97,678 1,280,324 Gross Profit 251,490 24,662 276,152 For the years ended December 31, 2017 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 1,614,512 434,384 2,048,896 Cost of revenues 1,232,792 321,402 1,554,194 Gross Profit 381,720 112,982 494,702 The Group does not evaluate its segment on a fully allocated cost basis nor does the Group keeps track of segment assets separately. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2017 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net Assets | 20. STATUTORY RESERVES AND RESTRICTED NET ASSETS PRC legal restrictions permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, determined in accordance with PRC regulations. Prior to payment of dividends, pursuant to the laws applicable to the PRC Domestic Enterprises and PRC Foreign Investment Enterprises, the PRC subsidiaries must make appropriations from after-tax profit to non-distributable statutory reserve funds as determined by the Board of Directors of the Group. Subject to certain cumulative limits including until the total amount set aside reaches 50% of its registered capital, the general reserve fund requires annual appropriations of not less than 10% of after-tax profit (as determined under accounting principles and financial regulations applicable to PRC enterprises at each year-end); These reserve funds can only be used for specific purposes and are not distributable as cash dividends. The Group made appropriation to these statutory reserve funds of RMB1,509 for the year ended December 31, 2015. As of December 31, 2015, the company’s profit appropriation made to the reserve fund reached the maximum required amount of 50% of registered capital. Accordingly, no additional profit appropriation was made during the years ended December 31, 2016 and 2017. As a result of these PRC laws and regulations, the Group’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. The balance of restricted net assets were RMB79,056, RMB154,342 and RMB163,350 as of December 31, 2015, 2016 and 2017, respectively. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | 21. RELATED PARTY BALANCES AND TRANSACTIONS Name Relationship with the Group Xiaomi Communication Technology Co. Ltd.("Xiaomi Communication") Controlled by one of the Company’s shareholders Hefei HuaHeng Electronic Technology Co. Ltd.("Hefei Huaheng") Controlled by one of the Company’s shareholders Xiaomi Technology Co. Ltd. ("Xiaomi Technology") Controlled by one of the Company’s shareholders Beijing Xiaomi Mobile Software Co. Ltd. ("Xiaomi Mobile") Controlled by one of the Company’s shareholders Guangzhou Xiaomi Information Service Co. Ltd.("Xiaomi Information", collectively with Xiaomi Communication, Xiaomi Technology, Xiaomi Mobile, "Xiaomi") Controlled by one of the Company’s shareholders Hefei LianRui Microelectronics Technology Co. Ltd. ("Hefei Lianrui") Long-term investee of the Group Hangzhou Aqi Vision Technology Co. Ltd.("Hangzhou Aqi") Long-term investee of the Group Xi'an Haidao Information Technology Co. Ltd.("Haidao") Controlled by one of the Company’s shareholders Heifei Huaying Xingzhi Fund Partnership.(limited partship)("Huaying Fund") Long-term investee of the Group Shunwei Hitech Limited("Shunwei") One (1) Balances : As of December 31, 2016 2017 RMB RMB Amount due from related parties: Xiaomi Communication (a) 457,100 566,732 Hefei HuaHeng (b) 42 — Xiaomi Mobile (a) 3,485 — Xiaomi Information (a) — 908 Hefei LianRui (c) 10,571 2,571 Hangzhou Aqi (c) 3,000 3,000 Haidao (c) 2,500 2,500 Others (d) — 2,743 Total 476,698 578,454 21. RELATED PARTY BALANCES AND TRANSACTIONS – CONTINUED (1) Balances : – continued As of December 31, 2016 2017 RMB RMB Amount due to related parties, current: Shunwei (e) (8,500 ) — Huaying Fund (f) (15,000 ) (3,061 ) Xiaomi Technology — (330 ) Xiaomi Mobile (g) — (4,752 ) Total (23,500 ) (8,143 ) Amount due to related party, non-current: Huaying Fund (f) — (3,076 ) Total — (3,076 ) (2) Transactions: For the years ended December 31, 2015 2016 2017 RMB RMB RMB Sales to related parties: Xiaomi Communication — 1,448,960 1,773,595 Xiaomi Technology 872,890 711 2,072 Hefei HuaHeng 3,846 256 730 Xiaomi Mobile — — 925 Xiaomi Information — — 1,318 Total 876,736 1,449,927 1,778,640 For the years ended December 31, 2015 2016 2017 RMB RMB RMB Others: Loan provided to related parties (c) — 16,071 (8,000 ) Investments disposed to a related party (h) — — 22,047 (a) The amount due from Xiaomi represents receivables from the sales of Xiaomi wearable products. All balances were subsequently collected. ( b ) The amount due from Hefei HuaHeng represents the sales of the self-branded products of the Group. ( c ) The amount due from Hefei LianRui, Hangzhou Aqi, Haidao, represents the loans provided by the Group to these related parties in 2016. In July 2017, the Group converted a RMB8,000 loan provided to Hefei LianRui previously to equity interests in Hefei LianRui. ( d ) The amount due from others represents the withholding tax receivables from certain management paid by the Group on behalf of them, of which RMB1,471 has been collected subsequently. ( e ) The balance represents capital injection to be returned to Shunwei, which has been repaid in 2017. (f) The amount due to Huaying Fund consists of current and non-current balances. The current balance of RMB15,000 as of December 31, 2016 represents the unpaid capital injection agreed by the Group to Huaying Fund which has been fully paid in 2017. The current balance of RMB3,061 as of December 31, 2017 represents the cash received in advance for the disposal of the investment from the Group to the fund. The non-current balance of RMB3,076 represents the loan received from Huaying Fund with the interest rate of 4.35%. ( g ) The amount due to Xiaomi Mobile respects the accrued expenses of cloud service provided by Xiaomi Mobile ( h ) The Group disposed five long-term investments to Huaying Fund during the year ended December 31, 2017. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 22. NET (LOSS) INCOME PER SHARE During the year ended December 31, 2015, 2016 and 2017, the Group has determined that its convertible redeemable participating preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. The holders of the preferred shares are entitled to receive dividends on a pro rata basis, as if their shares had been converted into ordinary shares. The Group determined that the nonvested restricted shares of the founders are participating securities as the holders of the nonvested restricted shares have a nonforfeitable right to receive dividends with all ordinary shares but the nonvested restricted shares do not have a contractual obligation to fund or otherwise absorb the Company’s losses. Accordingly, the Group uses the two class method of computing net loss per share, for ordinary shares, nonvested restricted shares and preferred shares according to the participation rights in undistributed earnings. However, undistributed loss is only allocated to ordinary shareholders because holders of preferred shares and nonvested restricted shares are not contractually obligated to share losses. For the years ended December 31, 2015 2016 2017 RMB RMB RMB Basic net (loss)/income per share calculation Numerator: Net (loss)/income for the year attributable to the Company: (37,853 ) 23,946 167,682 Less: Accretion of Series A Shares 4,799 3,209 3,762 Less: Accretion of Series B-1 Shares 1,222 2,738 3,127 Less: Accretion of Series B-2 Shares 17,376 30,121 34,382 Less: Undistributed earnings allocated to Series A preferred shareholders — — 48,753 Less: Undistributed earnings allocated to Series B-1 preferred shareholders — — 1,361 Less: Undistributed earnings allocated to Series B-2 preferred shareholders — — 14,220 Less: Undistributed earnings allocated to participating nonvested restricted shares — — 15,957 Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic (61,250 ) (12,122 ) 46,120 Denominator: Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares – basic 50,038,279 55,612,626 67,777,592 Net (loss) income per ordinary share attributable to ordinary shareholders—basic (1.22 ) (0.22 ) 0.68 Diluted net (loss)/income per share calculation Net (loss) income attributable to ordinary shareholders for computing net (loss income per ordinary shares—basic (61,250 ) (12,122 ) 46,120 Add: adjustments to undistributed earnings to participating securities — — 3,519 Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic (61,250 ) (12,122 ) 49,639 Denominator: Weighted average ordinary shares basic outstanding 50,038,279 55,612,626 67,777,592 Effect of potentially diluted stock options, restricted stocks and RSUs — — 8,514,309 Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares—dilute 50,038,279 55,612,626 76,291,901 Net (loss) income per ordinary share attributable to ordinary shareholders—diluted (1.22 ) (0.22 ) 0.65 22. NET (LOSS) INCOME PER SHARE – CONTINUED During the years ended December 31, 2015, 2016 and 2017, the following shares outstanding were excluded from the calculation of diluted net (loss) income per ordinary shares, as their inclusion would have been anti-dilutive for the years ended December 31, 2015, 2016 and 2017. For the years ended December 31, 2015 2016 2017 RMB RMB RMB Shares issuable upon exercise of share options, restricted stocks and RSUs 11,545,297 11,891,695 12,683,366 Shares issuable upon vesting of nonvested restricted shares 45,893,191 34,175,372 23,450,173 Shares issuable upon conversion of Series A shares 71,641,792 71,641,792 71,641,792 Shares issuable upon conversion of Series B-1 shares 1,347,945 2,000,000 2,000,000 Shares issuable upon conversion of Series B-2 shares 14,083,010 20,895,523 20,895,523 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 23. COMMITMENTS AND CONTINGENCIES Lease commitments Future minimum payments under lease commitments as of December. 31, 2017 were as follows: For the years ended December 31: RMB 2018 7,490 2019 and after 1,930 9,420 Capital commitments As of December 31, 2017, future minimum capital commitments under non-cancelable construction and investments were as follows: Capital commitment for the purchase of property, plant and equipment RMB423,441 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. SUBSEQUENT EVENTS In January 2018, The Company adopted the 2018 Share Incentive Plan, commencing January 1, 2018, which provides additional incentives to employees, directors and consultants and promote the success of the Group’s business. As of March 31, 2018, 3,489,469 options have been granted under the 2018 Share Incentive Plan. In February 2018, the Company issued 12,064,825 Class B ordinary shares to preferred shareholders prior to the completion of the public offering in the New York Stock Exchange ("NYSE") Market and deemed dividend was realized at the time of the shares were issued. On February 7, 2018, the Group was listed on the NYSE, and raised total proceeds of US$110,000. On March 13, 2018, 1,100,000 ADSs were converted and 400,000 ADSs were newly issued under the Green shoe. |
Financial Statement Schedule I
Financial Statement Schedule I Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Financial Statement Schedule I Condensed Financial Information of Parent Company | BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB” and U.S. dollars (“US$”)) except for number of shares and per share data, or otherwise noted) For the years ended December 31, 2016 2017 2017 RMB RMB US$ (Note2) Assets Current assets: Cash and cash equivalents 40,518 34,470 5,298 Prepaid expenses and other current assets — 14,284 2,195 Amount due from related parties 123,270 101,624 15,619 Total current assets 163,788 150,378 23,112 Investments in subsidiaries 183,265 435,085 66,871 Total assets 347,053 585,463 89,983 Liabilities Current liabilities: Accrued expense and other current liabilities 27 10,070 1,547 Amount due to related parties 8,500 — — Total current liabilities 8,527 10,070 1,547 Total liabilities 8,527 10,070 1,547 Mezzanine equity Series A convertible redeemable participating preferred shares (“Series A Preferred Shares”) (US$0.0001 par value; 71,641,792 shares authorized, issued and outstanding as of December 31, 2016 and 2017; liquidation value of RMB24,870 as of December 31, 2016 and 2017) 23,008 26,770 4,114 Series B-1 convertible redeemable participating preferred shares (“Series B-1 Preferred Shares”) (US$0.0001 par value; 2,000,000 shares authorized, issued and outstanding as of December 31, 2016 and 2017; liquidation value of RMB33,188 as of December 31, 2016 and 2017) 23,779 26,906 4,135 Series B-2 convertible redeemable participating preferred shares (“Series B-2 Preferred Shares”) (US$0.0001 par value; 20,895,523 shares Authorized, issued and outstanding as of December 31, 2016 and 2017; liquidation value of RMB364,145 as of December 31, 2016 and 2017) 261,560 295,942 45,485 Total mezzanine equity 308,347 349,618 53,734 Equity Ordinary shares (US$0.0001 par value; 405,462,685 shares authorized as of December 31, 2016 and 2017; 91,169,327 and 91,304,327 shares issued and outstanding as of December 31, 2016 and 2017, respectively) 56 56 9 Additional paid-in capital 50,822 72,427 11,132 Accumulated (deficit)/ retained earnings (36,490 ) 131,192 20,164 Accumulated other comprehensive income 15,791 22,100 3,397 Total equity 30,179 225,775 34,702 Total liabilities, mezzanine equity and equity 347,053 585,463 89,983 The accompanying notes are an integral part of these condensed consolidated financial statements. STATEMENTS OF OPERATIONS (Amounts in thousands of Renminbi (“RMB” and U.S. dollars (“US$”)) except for number of shares and per share data, or otherwise noted) For the year ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Note2) Operating expenses: General and administrative 48,529 54,916 57,898 8,899 Research and development 2,589 2,626 6,984 1,073 Total operating expenses 51,118 57,542 64,882 9,972 Operating loss (51,118 ) (57,542 ) (64,882 ) (9,972 ) Equity in earnings of subsidiaries and VIEs 13,265 81,488 232,564 35,743 Net (loss)/income (37,853 ) 23,946 167,682 25,771 The accompanying notes are an integral part of these condensed consolidated financial statements. STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Amounts in thousands of Renminbi (“RMB” and U.S. dollars (“US$”)) except for number of shares and per share data, or otherwise noted) For the years ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Note2) Net (loss)/income (37,853 ) 23,946 167,682 25,771 Other comprehensive (loss)/income, net of tax Exchange differences arising on translation 10,226 5,262 (3,175 ) (488 ) Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, nil and RMB1,554 for years ended December 31, 2015, 2016 and 2017, respectively) — 303 9,484 1,458 Comprehensive (loss)/income attributable to Huami Corporation (27,627 ) 29,511 173,991 26,741 The accompanying notes are an integral part of these consolidated financial statements. STATEMENTS OF CASH FLOW (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except share and share related data, or otherwise noted) For the years ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Note2) Cash Flow from Operating Activities Net (loss)/income (37,853 ) 23,946 167,682 25,771 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in earnings of subsidiaries (13,265 ) (81,488 ) (232,564 ) (35,743 ) Share-based compensation 56,343 57,736 62,787 9,650 Changes in operating assets and liabilities Prepaid expenses and other current assets — — (14,284 ) (2,195 ) Accrued expense and other current liabilities 26 2 10,043 1,544 Amount due to a related party 7,957 — (8,500 ) (1,307 ) Net Cash provided by (used in) Operating Activities 13,208 196 (14,836 ) (2,280 ) Cash Flow from Investing Activities Investment in subsidiaries (77,636 ) (2,400 ) (9,772 ) (1,502 ) Amount due from related parties — (122,728 ) 21,646 3,326 Net Cash (used in) provided by Investing Activities (77,636 ) (125,128 ) 11,874 1,824 Cash Flow from Financing Activities Cash flows from financing activities Exercise of share options — 24 89 14 Repurchase of ordinary shares (19,467 ) — — — Proceed from issuance of Series B-1 preferred shares 19,467 — — — Proceeds received from issuance of preferred shares 214,063 — — — Net Cash provided by Financing Activities 214,063 24 89 14 Net increase (decrease) in cash and cash equivalent 149,635 (124,908 ) (2,873 ) (442 ) Effect of exchange rate changes 10,226 5,565 (3,175 ) (488 ) Cash and cash equivalents at beginning of the year — 159,861 40,518 6,228 Cash and cash equivalents at end of the year 159,861 40,518 34,470 5,298 The accompanying notes are an integral part of these condensed consolidated financial statement. |
Basis for Preparation
Basis for Preparation | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company | |
Basis for Preparation | 1. BASIS FOR PREPARATION The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company has used the equity method to account for investments in its subsidiaries and VIEs. |
Investments in Subsidiaries
Investments in Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company | |
Investments in Subsidiaries and VIEs | 2. INVESTMENTS IN SUBSIDIARIES AND VIEs The Company and its subsidiaries and VIEs were included in the consolidated financial statements where the intercompany transactions and balances were eliminated upon consolidation. For purpose of the Company’s standalone financial statements, its investments in subsidiaries and VIEs were reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries and VIEs were reported as equity in earnings of subsidiaries and VIEs in the accompanying parent company financial statements. |
Significant Accounting Polici38
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principle of Consolidation | Basis of presentation and principle of consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements of the Group include the financial statements of the Company, its wholly-owned subsidiaries, its VIEs and the VIEs’ subsidiaries. The Company believes that the disclosures are adequate to make the information presented not misleading. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts, inventory valuation, the useful lives of long-lived assets, impairment of long-lived assets, goodwill, product warranties, fair value measurement of ordinary shares and preferred shares, share-based compensation, the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. |
Fair Value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Measured fair value on a recurring basis The Group measured its financial assets and liabilities primarily including available-for-sale securities at fair value on a recurring basis as of December 31, 2016 and 2017. Measured fair value on a nonrecurring basis The Company measured the value of its ordinary shares at fair value to determine the intrinsic value of the beneficial conversion feature attached to the Series B-1 Preferred Shares and Series B-2 Preferred Shares on each of the issuance date. The fair value was determined using models with significant unobservable inputs (Level 3 inputs). 2. SIGNIFICANT ACCOUNTING POLICIES - continued Measured fair value on a nonrecurring basis – continued The Group applied the income approach by applying the discounted cash flow method (“DCF”). The DCF involves applying an appropriate discount rate to discount future cash flows to present value. The future cash flows represent management’s best estimation as of measurement date. The projected cash flow estimation includes, among others, analysis of projected revenue growth, gross margins and terminal value and these assumptions are consistent with the Group’s business plan. In determining an appropriate discount rate, the Group has considered the weighted average cost of capital (“WACC”) by considering relative risk of the industry and the characteristics of the Company. A discount rate of 22% as of the valuation date was used. Goodwill and other intangible assets are measured at fair value on a nonrecurring basis when an impairment is recognized. The Group measured goodwill at fair value on a nonrecurring basis when it is evaluated annually or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measured acquired intangible assets using the income approach-discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to other intangible assets arising from acquisitions during the years ended December 31, 2015, 2016 and 2017. The fair value of goodwill is determined using discounted cash flows, and an impairment loss will be recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group did not recognized any impairment loss related to goodwill during the year ended December 31, 2017. The Group did not have any goodwill as of December 31, 2016 and 2015. |
Fair Value of Financial Instruments | Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, restricted cash, amount due from related parties, available-for-sale securities investments, accounts payable, notes payable, short-term bank borrowing and amount due to related parties. The Company carries its available-for-sales investments at fair value. The carrying amounts of cash and cash equivalents, accounts receivable, restricted cash, amount due from related parties, accounts payable, notes payable and short-term bank borrowings approximate their fair values due to the short-term maturities of these instruments. The carrying amount of amount due to a related party approximates fair value as it includes a market interest rate. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on-hand, demand deposits with financial institutions, term deposits with an original maturity of three months or less and highly liquid investments, which are unrestricted from withdrawal or use, or which have original maturities of three months or less when purchased. |
Restricted Cash | Restricted cash Restricted cash represents deposits made to the bank for bank acceptance notes (or notes payable) issued by the Group. When the Group issues the bank acceptance notes, the banks requires the Group to make a deposit for 60% or 100% of the face value of the bank acceptance notes issued as collateral. The deposits for unsettled bank acceptance notes are recorded as restricted cash in the consolidated balance sheet. |
Notes Payable | Notes payable The Group endorses bank acceptance notes (“Notes”) to suppliers in the PRC in the normal course of business. The Group may endorse these Notes with its suppliers to clear its accounts payable. When the Notes are endorsed by the Group, the Group is jointly liable with other endorsers in the Notes. Notes that have been presented to banks or endorsed with suppliers are derecognized from the consolidated balance sheets when the Notes are settled with banks or when the obligations as endorser are discharged. |
Accounts Receivable | Accounts receivable Accounts receivable represents those receivables derived in the ordinary course of business, net of allowance for doubtful accounts. |
Allowance for Doubtful Accounts | 2. SIGNIFICANT ACCOUNTING POLICIES - continued Allowance for doubtful accounts The Group maintains an allowance for doubtful accounts for estimated losses on uncollected accounts receivable. Management considers the following factors when determining the collectability of specific accounts: creditworthiness of customers, aging of the receivables, past transaction history with customers and their current condition, changes in customer payment terms, specific facts and circumstances, and the overall economic climate in the industries the Group serves. |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets Prepaid expenses and other current assets primarily consist of advance to suppliers, prepaid expenses, other receivables and value-added tax receivables. |
Inventories | Inventories Inventories of the Group consist of raw materials, finished goods and work in process. Inventories are stated at the lower of cost or net realizable value on a weighted average basis. Inventory costs include expenses that are directly or indirectly incurred in the purchase, including shipping and handling costs charged to the Group by suppliers, and production of manufactured product for sale. Expenses include the cost of materials and supplies used in production, direct labor costs and allocated overhead costs such as depreciation, insurance, employee benefits, and indirect labor. Cost is determined using the weighted average method. The Group assesses the valuation of inventory and periodically writes down the value for estimated excess and obsolete inventory based upon the product life cycle. During the years ended December 31, 2015, 2016 and 2017, inventory write-down amounted to nil, RMB1,037 and |
Short-Term Investments | Short-term investments Short-term investments are available-for-sale investments with a maturity of less than one year. The Group’s short-term available-for-sale investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are measured at fair value. |
Property, Plant and Equipment, Net | Property, plant and equipment, net Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Software and electronic equipment 3-5 years Building 20 years Leasehold improvements Shorter of the lease term or estimated useful lives |
Intangible Asset, Net | Intangible asset, net Acquired intangible assets other than goodwill consist of the domain name for the Company’s website www.huami.com and the patents and trademark from the acquisition of Yunding. The domain name is recognized as an intangible asset with indefinite life and evaluated for impairment at least annually or if events or changes in circumstances indicate that the asset might be impaired. Such impairment test compares the fair values of asset with its carrying value amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair value. The estimates of values of the intangible asset not subject to amortization are determined using discounted cash flow valuation approach. Significant assumptions are inherent in this process, including estimates of discount rates. The patents and trademark are recognized as intangible assets with finite lives and are amortized on a straight-line basis over their expected useful economic lives. Amortization is calculated on a straight-line basis over the estimated useful life of 10 years. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Goodwill – continued Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. The Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. During the year ended December 31, 2017, there are no reporting units at risk of step 1 and the Group recognized nil impairment loss on goodwill. |
Long-Term Investments | Long-term investments The Group’s long-term investments consist of cost method investments, equity method investments and available-for-sale securities investments. (a) Cost Method Investments For investee companies over which the Group does not have significant influence or a controlling interest, the Group carries the investment at cost and recognizes as income any dividend received from distribution of the investee’s earnings. The Group reviews its cost method investments for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Group estimated the fair value of these investee companies based on the discounted cash flow approach. Factors the Group considers in making such a determination include general market conditions, the duration and the extent to which the fair value of an investment is less than its cost, and the Group’s intent and ability to hold such investment. An impairment charge is recorded if the carrying amount of an investment exceeds its fair value and such excess is determined to be other-than-temporary. The Group did not record any impairment loss on its cost method investments during the years ended December 31, 2015, 2016 and 2017. (b) Equity Method Investments For an investee company over which the Group has the ability to exercise significant influence, but does not have a controlling interest, the Group accounts for the investment under the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements are also considered in determining whether the equity method of accounting is appropriate. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Long-term investments – continued Under the equity method of accounting, the investee company’s accounts are not reflected within the Group’s consolidated balance sheets and statements of operations; however, the Group’s share of the earnings or losses of the investee company is reflected in the caption “(loss)/income from equity method investments” in the consolidated statements of operations. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long-term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Group did not record any impairment losses on its equity method investments during the years ended December 31, 2015, 2016 and 2017. (c) Available-for-sale Investments For investments which are determined to be debt securities, the Group accounts for them as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investment is carried at its fair value and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The Group reviews its investments for other than temporary impairment based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Group did not record any impairment losses on its available- for-sale investments during the years ended December 31, 2015, 2016 and 2017, respectively. |
Revenue Recognition | Revenue recognition The Group generates substantially all of its revenues from sales of smart wearable devices. The Group also generates a small amount of its revenues from its subscription-based services. The Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and the services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. The Group recognizes revenue, net of estimated sales returns and value-added taxes (“VAT”). The Group’s contracts with its customers have multiple element arrangements. The first deliverable is the smart wearable device and embedded firmware that is essential to the functionality of the device. The second deliverable is the software services included with the products, which are provided free of charge and enable users to sync, view, and access real-time data on the Group’s mobile apps. The third deliverable is the embedded right included with the purchase of the device to receive, on a when-and-if-available basis, future unspecified firmware upgrades and features relating to the product’s essential firmware. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - The Group allocates revenue to all deliverables based on their relative selling prices. The Group uses a hierarchy to determine the selling price to be used for allocating revenue to the deliverables: (i) vendor-specific objective evidence (“VSOE”) of fair value, (ii) third-party evidence (“TPE”), and (iii) best estimate of the selling price (“BESP”). Because the Group currently has neither VSOE nor TPE for any of its deliverables, revenue is allocated to the deliverables on the Group’s BESP as if each deliverable was sold regularly on a stand-alone basis. The Group’s process for determining its BESP considers multiple factors including consumer behaviors and the Group’s internal pricing model. The BESP for the smart wearable devices comprises the majority of the arrangement consideration. The BESP for the software services and software upgrades is currently estimated at RMB0.31 per unit, RMB0.43 per unit and RMB1.30 per unit during the years ended December 31, 2015, 2016 and 2017, respectively. The Group recognizes revenue for the amounts allocated to the smart wearable devices at the time of delivery (except as noted below), provided the other conditions for revenue recognition have been met. Most of the revenue for products sold through distributors or retailers is recognized on a sell-in basis. Amounts allocated to the software services and unspecified upgrade rights are deferred and recognized on a straight-line basis over their estimated usage period which approximates 9 months. During the years ended December 31, 2015, 2016 and 2017, the Company generated 97.1%, 92.1% and 78.8% of revenues from one customer that entered into a cooperation agreement as further described below. The remaining revenues during the years ended December 31, 2016 and 2017 was mostly generated from sales of the Company’s self-branded Amazfit products to retailers, distributors and end users, among which the customer discussed above is also an important distribution channel for Amazifit products. The Company’s revenue recognition for its Amazfit products is consistent with that described in the preceding paragraphs. |
Cooperation Agreement with One Customer | Cooperation agreement with one customer During the years ended December 31, 2015, 2016 and 2017, the Group generated most of its revenues from sales of exclusively designed and manufactured smart wearable devices to one customer, who is also the sole distribution channel for such smart wearable devices. This customer is a company controlled by one of our shareholders (see note 21). Under a cooperation agreement with this customer, the Group produces and assembles final product for shipments of smart wearable devices to that customer, who is then responsible for commercial distribution and sale of the product. The arrangement includes two payment installments. The first payment installment is priced to recover the costs incurred by the Group in developing, producing and shipping the devices to its customer and is due from the customer to the Group once products have been delivered. The Group allocates the initial payment installment between the hardware device, the software services, and the software upgrades based on their relative fair value and recognizes revenue based on its recognition policy further described in the preceding paragraph. The Group is also entitled to receive a potential second installment payment calculated as 50 percent of the future net profits from commercial sales made by the customer. Given the revenue from the profit sharing arrangement is contingent on the commercial sale, the Group recognizes revenue from the second installment in the period following the commercial sale by the customer, which is when the fee is fixed and determinable. The fee related to the second installment is usually earned by the Group between 30 to 45 days after initial shipment of the product to the customer. The second installment is also allocated between the hardware device, the software services, and the software upgrades based on their relative fair value and is recognized based on the Group’s recognition policy further described in the preceding paragraph. The Company’s revenue recognition policy of its products under its cooperation agreement is substantially consistent with that for its sales of Amazfit products except that the installment payments available to its customer under its cooperation agreement are not available to customers who purchase its Amazfit products. |
Value Added Taxes | Value added taxes “VAT” on sales is calculated at 17% on revenue from products. The Group reports revenue net of VAT. Subsidiaries that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. |
Rights of Return | Rights of return The Group offers limited sales returns for several products. The Group estimates reserves for these sales based on historical experience, and records the reserve as a reduction of revenue and accounts receivable. During the years ended December 31, 2015, 2016 and 2017, actual returns have been insignificant. |
Cost of Revenues | Cost of revenues Cost of revenues consists primarily of material costs, salaries and benefits for staff engaged in production activities and related expenses that are directly attributable to the production of products. The shipping and handling fees billed to the customers are presented as part of cost of revenues as well. |
Product Warranty | Product warranty The Group offers a standard product warranty that the product will operate under normal use. For products sold to the one customer under the cooperation agreement, the warranty period is 18 months which includes a six month warranty to that customer and an additional 12 months warranty to end-users. For products sold directly to end users, the warranty period include a 12 months warranty to end users. The Group has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs is recorded as a component of cost of revenues. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as a cost of revenue. |
Research and Development Expenses | Research and development expenses Research and development expenses primarily consist of salaries and benefits for research and development personnel, materials, office rental expense, general expenses and depreciation expenses associated with research and development activities. |
Advertising Expense | Advertising expense Advertising expense are expensed as incurred and included in selling and marketing expenses. Total advertising expenses were RMB14,819, RMB13,474 and RMB7,586 for the years ended December 31, 2015, 2016 and 2017, respectively. |
Government Subsidies | Government subsidies Government subsidies represent government grants received from local government authorities to encourage the Group’s technology and innovation. The Group records such government subsidies as other income when it has fulfilled all of its obligation related to the subsidy. During the years ended December 31, 2015, 2016 and 2017, the Group recognized RMB549, RMB14,726 and RMB6,719 as subsidy income, respectively. As of December 31, 2017, the balance of RMB9,104 subsidy was deferred and recorded as other current liabilities and other non-current liabilities as the Group has to meet the performance conditions required by the government authority. |
Income Taxes | Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
Share-based Payment | Share-based payment Share-based payment transactions with employees, such as share options are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight-line method for all employee equity awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. |
Comprehensive (Loss)/Income | Comprehensive (loss)/income Comprehensive (loss)/income consists of two components, net income and other comprehensive income, net of tax. Other comprehensive income refers to revenue, expenses, and gains and losses that are recorded as an element of shareholders’ equity but are excluded from net (loss)/income. The Group’s other comprehensive income consists of foreign currency translation adjustments from its subsidiaries not using the RMB as their functional currency and the fair value change of available-for-sale investments of the Group. Comprehensive (loss)/income is reported in the consolidated statements of comprehensive (loss)/income. |
Foreign Currencies | Foreign currencies The functional currency of the Company outside of the PRC is the US$. The reporting currency of the Company is the RMB. The Company’s subsidiaries, consolidated VIEs and VIEs’ subsidiaries with operations in the PRC, Hong Kong, the United States and other jurisdictions generally use their respective local currencies as their functional currencies. The financial statements of the Company’s subsidiaries, other than the subsidiaries and consolidated VIEs with the functional currency of RMB, are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. In the financial statements of the Company’s subsidiaries and consolidated VIEs and VIEs’ subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated statements of operations during the year in which they occur. RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents denominated in US$ amounted to RMB164,188, RMB98,537 and RMB66,494 as of December 31, 2015, 2016 and 2017, respectively. |
Convenience Translation | Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows from RMB into US$ as of and during the year ended December 31, 2017 is solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.5063, representing the rate as certified by the statistical release of the Federal Reserve Board of United States on December 29, 2017. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollar at that rate on December 29, 2017, or at any other rate. |
Net (Loss)/Income Per Share | Net (loss)/income per share Basic net (loss)/income per share is computed by dividing net (loss)/income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group’s convertible redeemable participating preferred shares are participating securities as they participate in undistributed earnings on an as-if converted basis. The Group determined that the nonvested restricted shares owned by the founders are participating securities as the holders of these nonvested restricted shares have nonforfeitable rights to receive dividends with all ordinary shares but these nonvested restricted shares do not have a contractual obligation to fund or otherwise absorb the Group’s loss. Accordingly, the Group uses the two-class method, whereby undistributed net income is allocated on a pro rata basis to the ordinary shares, preferred shares and nonvested restricted shares held by the founders to the extent that each class may share income in the year; whereas the undistributed net loss for the year is allocated to ordinary shares only because the convertible redeemable participating preferred shares and nonvested restricted shares owned by the founders are not contractually obligated to share the loss. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Net (loss)/income per share - Diluted (loss)/income per ordinary share reflect the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had convertible redeemable participating preferred shares, share options, restricted shares and restricted stock units which could potentially dilute basic (loss)/ income per share in the future. To calculate the number of shares for diluted (loss)/income per ordinary shares, the effect of the convertible redeemable participating preferred shares is computed using the as-if-converted method; the effect of the share options, restricted shares and restricted stock units is computed using the treasury stock method. |
Concentration of Credit Risk | Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and revenue. The Group places its cash and cash equivalents with financial institutions with high credit ratings and quality. The Group conducts credit evaluations of third-party customers and related parties, and generally does not require collateral or other security from its third-party customers and related parties. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific third-party customers and related parties. Accounts receivable concentration of credit risk as below: As of December 31, 2016 2017 RMB RMB Company A 6,658(24.7%) 18,782(57.1%) Total 6,658(24.7%) 18,782(57.1%) Amount due from related parties concentration of credit risk as below: As of December 31, 2016 2017 RMB RMB Company C 457,100(95.0%) 566,732(98.0%) Total 457,100(95.0%) 566,732(98.0%) Revenue generated from Company B and Company C accounted for 97.4%, 93.2% and 86.7% of total revenue during the year ended December 31, 2015, 2016 and 2017, respectively. Company B and Company C are both subsidiaries of a company controlled by one of the Group’s shareholders (see note 21). For the years ended December 31, 2015 2016 2017 RMB RMB RMB Company C — 1,448,960(93.1%) 1,773,595(86.6%) Company B 872,890(97.4%) 711(0.05%) 2,072(0.1%) Total 872,890(97.4%) 1,449,671(93.2%) 1,775,667(86.7%) |
Supplier Concentration | Supplier Concentration The Group relies on third parties for the supply and manufacturing of its products, as well as third-party logistics providers. In instances where these parties fail to perform their obligations, the Group may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time, if at all. For the year ended December 31, 2017, 29% of its raw materials were purchased through Company D, but numerous alternate sources of supply are readily available on comparable terms. |
Newly Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Newly adopted accounting pronouncements In November 2016, FASB issued ASU 2016-18, requiring that a statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017. Early adoption is permitted. On January 1, 2017, the Group elected to early adopt this new guidance and have applied the changes to the consolidated cash flows during the years ended December 31, 2016 and 2017. As of December 31, 2017, restricted cash of approximately RMB3,185 is included in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statement of cash flows. The Company did not have any restricted cash prior to 2017. Recent accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Group will adopt ASU 2014-09 as of January 1, 2018 utilizing the modified retrospective transition method. Upon adoption, the Company will recognize the cumulative effect of adopting this guidance as an adjustment to its opening retained earnings balance. The Group has substantially completed its assessment of the new standard. Based on its preliminary assessment, the Company does not believe the adoption of Topic 606 will have a significant impact on revenue recognized on sales from the Company's self-branded Amazfit products. However, the Company believes that the new standard will impact the timing of when revenue is recognized on sales under the Company's cooperation agreement with its main customer. Under the accounting standard in effect prior to the new revenue standard, the second installment payment in the Company's cooperation agreement, calculated as 50 percent of the future net profits from commercial sales made by the customer was considered contingent and recognized in the period following the commercial sale by the customer, which is when the fee became fixed or determinable. Under the new revenue standard, revenue related to the second installment payment in the Company's cooperation agreement will be considered variable consideration and the amount determined to not be probable of significant reversal will be included in the transaction price utilizing the expected value method. Additionally, the Company has determined that the new revenue standard will impact the balance sheet presentation of its sales return reserve which will be shown as a separate asset and refund liability on its consolidated balance sheet. The Company also expects the adoption to lead to increased footnote disclosures, particularly with regard to revenue related balance sheet accounts and revenue by category. In January 2016, the FASB issued a new pronouncement ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values, which should be applied prospectively. The Group is in the process of evaluating the impact of the adoption. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Group is in the process of evaluating the impact that this pronouncements on its consolidated financial statements. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Recent accounting pronouncements not yet adopted - In January 2017, the FASB issued ASU 2017-04, addressing concerns regarding the cost and complexity of the two-step goodwill impairment test, the amendments in this ASU remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. For public business entities that are SEC filers, the amendments are effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019. For public business entities that are not SEC filers, the ASU’s amendments are effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2020. For all other entities, including not-for-profit entities, the ASU’s amendments are effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group is in the process of evaluating the impact that this pronouncements on its consolidated financial statements. |
Organization and Principal Ac39
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Subsidiaries and VIEs | As of December 31, 2017, details of the Company’s subsidiaries and VIEs were as follows: Place of incorporation Date of incorporation/acquisition Percentage of ownership Subsidiaries of the Company: Huami HK Limited (“Huami HK”) Hong Kong (“HK”) December 23, 2014 100% Huami, Inc. (“Huami Inc”) United States of America (“U.S.”) January 15, 2015 100% Beijing ShunYuan KaiHua Technology Co., Ltd. (“ShunYuan”) PRC February 25, 2015 100% Huami (Shenzhen) Information Technology Co., Ltd. (“Huami SZ”) PRC December 7, 2015 100% Anhui Huami Intelligent Technology Co., Ltd. (“Huami Intelligent”) PRC December 28, 2015 100% Rill, Inc. (“Rill”) US June 16, 2016 100% Variable interest entities of the Company: Anhui Huami PRC December 27, 2013 Consolidated VIE Beijing Huami PRC July 11, 2014 Consolidated VIE Subsidiaries of Anhui Huami: Anhui Huami Healthcare Co., Ltd. (“Huami Healthcare”) PRC December 5, 2016 VIE’s subsidiary Shenzhen Yunding Information Technology Co., Ltd. (“Yunding”) PRC July 31, 2017 VIE’s subsidiary |
Schedule of Financial Statement Amounts and Balances of VIEs | 1. ORGANAZATION AND PRINCIPAL ACTIVITIES - continued Risks in relation to VIE structure – continued The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions within the Group: As of December 31, 2016 2017 RMB RMB Total current assets 742,497 1,178,273 Total non-current assets 81,503 129,588 Total assets 824,000 1,307,861 Total current liabilities 564,532 809,653 Total non-current liabilities — 10,486 Total liabilities 564,532 820,139 For the years ended December 31, 2015 2016 2017 RMB RMB RMB Revenues 895,286 1,552,340 2,042,640 Net income 250,216 269,162 327,101 For the years ended December 31, 2015 2016 2017 RMB RMB RMB Net cash (used in)/provided by operating activities (162,507 ) 15,316 248,642 Net cash used in investing activities (3,370 ) (81,954 ) (19,643 ) Net cash provided by financing activities 36,836 17,500 20,000 |
Significant Accounting Polici40
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Software and electronic equipment 3-5 years Building 20 years Leasehold improvements Shorter of the lease term or estimated useful lives |
Schedule of Concentration of Credit Risk | Accounts receivable concentration of credit risk as below: As of December 31, 2016 2017 RMB RMB Company A 6,658(24.7%) 18,782(57.1%) Total 6,658(24.7%) 18,782(57.1%) Amount due from related parties concentration of credit risk as below: As of December 31, 2016 2017 RMB RMB Company C 457,100(95.0%) 566,732(98.0%) Total 457,100(95.0%) 566,732(98.0%) Revenue generated from Company B and Company C accounted for 97.4%, 93.2% and 86.7% of total revenue during the year ended December 31, 2015, 2016 and 2017, respectively. Company B and Company C are both subsidiaries of a company controlled by one of the Group’s shareholders (see note 21). For the years ended December 31, 2015 2016 2017 RMB RMB RMB Company C — 1,448,960(93.1%) 1,773,595(86.6%) Company B 872,890(97.4%) 711(0.05%) 2,072(0.1%) Total 872,890(97.4%) 1,449,671(93.2%) 1,775,667(86.7%) |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Purchase Price | The purchase price consists of the following: RMB Cash consideration 1,584 Fair value of the 35% equity interests: Carrying amount 380 Gain on re-measurement of fair value of noncontrolling equity investment 2,140 Total 4,104 |
Summary of Purchase Price Allocation | 3. BUSINESS ACQUISITIONS - continued Acquisition of Yunding - The purchase price was allocated as of July 31, 2017, the date of acquisition as follows: RMB Amortization period Cash 3,475 Other current assets 3,213 Property, plant and equipment 134 3.6-4.8 years Intangible assets Patents 4,203 10 years Goodwill 5,930 Other current liabilities (2,887 ) Deferred tax liabilities (955 ) Other non-current liabilities (6,033 ) Noncontrolling interests (2,976 ) Total 4,104 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: As of December 31, 2016 2017 RMB RMB Raw materials 115,374 169,665 Work in process 30,528 30,195 Finished goods 46,470 49,875 Total 192,372 249,735 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short Term Investments [Abstract] | |
Schedule of Short-Term Investment Included Convertible Bonds | Short-term investments included convertible bonds with maturities less than 1 year and consisted of the following: As of December 31, 2016 2017 RMB RMB Convertible bonds: Abee Semi, Inc. (“Abee”) (a) 7,198 7,208 Beijing Zulin Technology Co., Ltd. (“Zulin”) (b) 2,038 — Zepp International Limited (“Zepp”) (c) — 6,513 Total: 9,236 13,721 (a) In June 2016, the Group invested RMB6,937 to acquire a convertible bond issued by Abee, a Delaware corporation, with 7% interest rate per annum and one year maturity. In June, 2017, the Group agreed to extend the maturity date for one additional year. The investment was classified as an available-for-sale investment and measured at fair value. Unrealized holding gains of RMB261 and RMB10 was reported in other comprehensive income during the years ended December 31, 2016 and 2017, respectively. (b) On July 25, 2016, the Group entered into a one-year convertible bond investment agreement with Zulin with principal amounted to RMB2,000 and interest rate of 4.35%. On April 20, 2017, Zulin repaid the principle and interest totaling RMB2,062. The group recognized RMB62 as realized gain from investment. (c) In December 2017, the Group invested RMB6,506 to acquire a convertible bond issued by Zepp, with 10% interest rate and nine months maturity. The investment was classified as an avaiable-for-sale investment and measured at fair value. |
Prepaid Expenses and Other Cu44
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | As of December 31, 2016 2017 RMB RMB Deferred IPO expense — 13,268 Value-added tax — 13,170 Short-term loans provided (a) — 11,857 Advances to suppliers 1,229 5,128 Other receivables 2,418 4,656 Rental deposits 2,316 1,969 Prepaid expenses 2,715 1,014 Total 8,678 51,062 (a) During the year ended December 31, 2017, the Group provided short-term loans to third parties within one year maturity. |
Property, Plant and Equipment45
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following: As of December 31, 2016 2017 RMB RMB Software and electronic equipment 5,627 7,092 Buildings — 18,592 Leasehold improvements 7,872 9,327 Total 13,499 35,011 Less: accumulated depreciation (2,698 ) (6,256 ) Property, plant and equipment, net 10,801 28,755 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Long-Term Investments | Long-term investments consisted of the following: As of December 31, 2016 2017 RMB RMB Cost method investments (a) 7,750 750 Equity method investments: Hefei Huaying Xingzhi Fund Partnership (limited partnership) (“Huaying Fund”) (b) 50,000 55,905 Other equity method investments (c) 19,303 8,097 Available-for-sale investments (d) 1,004 20,486 Total 78,057 85,238 (a) On July 27, 2017, the Group sold its investment in Beijing Feisou Technology Co., Ltd. (“Beijing Feisou”) for a total cash consideration of RMB5,133 to Huaying Fund, and recognized a gain of RMB67. (b) In August 2016, the Group invested RMB50,000 to acquire 49.5% equity interests in a limited partnership, Huaying Fund, a fund engaged in the investing activities in small and middle scale High Tech private companies. The Group accounted for the investment under the equity method because the investments are of common stock and the Group has significant influence in the Fund but does not own a majority equity interest or otherwise control. (c) The other equity method investments represent several insignificant investments classified as equity method investments as the Group has the ability to exercise significant influence but does not have control over the investees during the year of December 31, 2017. ( d ) Available-for-sales consist of convertible bonds and investment with redemption features. In July 2017, the Group converted a RMB8,000 loan previously provided to Hefei LianRui, resulting in the Group obtaining an aggregate 27.5% interest and reclassify its investment from cost method to equity method investment. In November 2017, the Group disposed certain interest to Huaying, and obtained 17.16% interest after dilution In December 2017, LianRui granted certain redemption option to its investors. Accordingly, the investment was reclassified as available-for-sale security as the Group determined that the shares were debt securities in nature due to the redemption option available to the investors and measured the investment subsequently at fair value. Unrealized holding gain of RMB10,363 was reported in other comprehensive income for the year ended December 31, 2017. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Schedule of Available-for-Sale Investments Include Convertible Bonds and Redeemable Preferred Shares Measured and Recorded at Fair Value on Recurring Basis | As of December 31, 2016 and 2017, available-for-sale investments recorded in short-term and long-term investments mainly include the convertible bonds As of December 31, 2016 Description Quoted Prices in Active Market for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total RMB RMB RMB RMB Convertible bonds — 10,240 — 10,240 Total: — 10,240 — 10,240 As of December 31, 2017 Description Quoted Prices in Active Market for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total RMB RMB RMB RMB Convertible bonds — 14,130 — 14,130 Redeemable preferred shares — 20,077 — 20,077 Total: — 34,207 — 34,207 |
Accrued Expenses and Other Cu48
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2016 2017 RMB RMB Deferred revenue 9,159 17,876 Product warranty 4,870 8,431 Accrued payroll and welfare 17,937 30,207 Accrued expenses 1,386 3,943 Accrued professional fee — 13,268 Other tax payable 8,899 6,569 Other current liabilities 5,372 13,504 Total 47,623 93,798 |
Summary of Product Warranty Activities | Product warranty activities were as follows: Product Warranty RMB Balance as of January 1, 2015 843 Provided during the year 12,255 Utilized during the year (8,823 ) Balance at December 31, 2015 4,275 Provided during the year 14,153 Utilized during the year (13,558 ) Balance at December 31, 2016 4,870 Provided during the year 23,093 Utilized during the year (19,532 ) Balance at December 31, 2017 8,431 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Current and Deferred Components of Income Taxes | The current and deferred components of income taxes appearing in the consolidated statements of operation are as follows: For the years ended December 31, 2015 2016 2017 RMB RMB RMB Current tax expenses 2,311 21,556 46,573 Deferred tax benefits (3,208 ) (18,468 ) (18,962 ) Income tax (benefit) expense (897 ) 3,088 27,611 |
Schedule of Significant Components of Group's Deferred Tax Assets and Liabilities | The significant components of the Group’s deferred tax assets and liabilities were as follows: As of December 31, 2016 2017 RMB RMB Deferred tax assets Accrued expenses 208 7,919 Net operating loss carry forwards 22,764 33,976 Total deferred tax assets 22,972 41,895 Less: valuation allowance — — Deferred tax assets, net 22,972 41,895 |
Schedule of Income Tax Expense Reconciliation | Reconciliation between the income tax expense computed by applying the PRC enterprise tax rate of 25% to (loss)/income before income tax and actual provision were as follows: For the years ended December 31, 2015 2016 2017 RMB RMB RMB (Loss) income before income tax (38,750 ) 28,863 191,900 Tax (benefit) expense at PRC enterprise (9,688 ) 7,216 47,975 income tax rate of 25% Income tax on tax holidays (2,972 ) (16,533 ) (30,740 ) Tax effect of permanence differences (2,080 ) (621 ) (8,190 ) Effect of income tax rate differences in jurisdictions other than the PRC 13,843 13,026 14,364 Change in tax rate — — 4,202 Income tax (benefit) expense (897 ) 3,088 27,611 |
Preferred Shares (Tables)
Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Change in Balance of Series Preferred Included in Mezzanine Equity | 15. PREFERRED SHARES – CONTINUED The change in the balance of Series Preferred included in mezzanine equity during the years ended December 31, 2015, 2016 and 2017 are as follows: Series A Preferred Series B-1 Preferred Series B-2 Preferred RMB RMB RMB Balance as of January 1, 2015 15,000 — — Issuance of Series B-1 preferred shares — 19,819 — Issuance of Series B-2 preferred shares — — 214,063 Accretion of Preferred A shares 4,799 — — Accretion of Preferred B shares — 1,222 17,376 Balance as of December 31, 2015 19,799 21,041 231,439 Accretion of Preferred A shares 3,209 — — Accretion of Preferred B shares — 2,738 30,121 Balance as of December 31, 2016 23,008 23,779 261,560 Accretion of Preferred A shares 3,762 — — Accretion of Preferred B shares — 3,127 34,382 Balance as of December 31, 2017 26,770 26,906 295,942 |
Share-Based Payment (Tables)
Share-Based Payment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Assumptions used to Determine Fair Value of Share Options Granted | The Group calculated the estimated fair value of the options on the respective grant dates using the binomial option pricing model with assistance from independent valuation firms. Assumptions used to determine the fair value of share options granted during the years ended December 31, 2015, 2016 and 2017 are summarized in the following table: For the years ended December 31, 2015 2016 2017 Risk-free interest rate 2.04 % 1.62%-2.85% 2.2 % Expected volatility 46.1 % 46.2 % 49.0 % Expected life of option (years) 10 10 9.76-10 Expected dividend yield 0.0 % 0.0 % 0.0 % Fair value per ordinary share 5.83 7.5 12.56 |
Summary of Stock Option Activity | A summary of the stock option activity under the 2015 Plan during the year ended December 31, 2017 is included in the table below. Options granted Share Number Weighted average exercise price per option RMB Outstanding at January 1, 2017 6,078,298 0.91 Granted 2,045,688 1.26 Exercised 135,000 0.65 Cancelled and Forfeited 650,427 0.14 Outstanding at December 31, 2017 7,338,559 1.03 |
Summary of Share Options Granted | The following table summarizes information regarding the share options granted as of December 31, 2017: As of December 31, 2017 Options Number Weighted- average exercise price per option Weighted- average remaining exercise contractual life (years) Aggregate intrinsic value RMB RMB Options Outstanding 7,338,559 1.03 8.38 94,233 Exercisable 1,400,000 5.42 8.46 17,977 Expected to vest 5,938,559 — 8.36 76,256 |
Summary of Restricted Stock Units Activity | A summary of the restricted stock units activity during the year ended December 31, 2017 is presented below: RSUs Unvested balance at January 1, 2017 1,176,050 Granted 1,700,000 Cancelled and Forfeited 577,275 Unvested balance at December 31, 2017 2,298,775 |
Total Share-based Compensation Recognized | Total share-based compensation recognized was as follows: For the years ended December 31, 2015 2016 2017 RMB RMB RMB Research and development 2,588 2,626 6,983 General and administrative 53,403 55,109 55,804 Total stock-based compensation expense (1) 55,991 57,735 62,787 |
Founders | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Non-vested Restricted Share Activity | A summary of non-vested restricted share activity during the year ended December 31, 2017 is presented below: Number of shares Outstanding at January 1, 2017 34,175,373 Granted — Forfeited — Vested 11,391,791 Outstanding at December 31, 2017 22,783,582 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interests | Yunding RMB Balance as of January 1, 2017 — Addition of noncontrolling interest in connection with acquisition (a) 2,976 Loss attributed to noncontrolling interest shareholders (587 ) Balance as of December 31, 2017 2,389 (a) In July 2017, the Group purchased an additional 22% of Yunding resulting in the Group controlling Yunding through 57% ownership. See Note 3. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenues, Cost of Revenues and Gross Profits by Segment | The Group’s CODM evaluates performance based on each reporting segment’s revenue, costs of revenues and gross profit. Revenues, cost of revenues and gross profits by segment are presented below. Separate financial information of operating income by segment is not available. For the years ended December 31, 2015 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 870,766 25,692 896,458 Cost of revenues 762,211 23,656 785,867 Gross Profit 108,555 2,036 110,591 For the years ended December 31, 2016 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 1,434,136 122,340 1,556,476 Cost of revenues 1,182,646 97,678 1,280,324 Gross Profit 251,490 24,662 276,152 For the years ended December 31, 2017 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 1,614,512 434,384 2,048,896 Cost of revenues 1,232,792 321,402 1,554,194 Gross Profit 381,720 112,982 494,702 |
Related Party Balances and Tr54
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Related Parties and Relationship with the Group | Name Relationship with the Group Xiaomi Communication Technology Co. Ltd.("Xiaomi Communication") Controlled by one of the Company’s shareholders Hefei HuaHeng Electronic Technology Co. Ltd.("Hefei Huaheng") Controlled by one of the Company’s shareholders Xiaomi Technology Co. Ltd. ("Xiaomi Technology") Controlled by one of the Company’s shareholders Beijing Xiaomi Mobile Software Co. Ltd. ("Xiaomi Mobile") Controlled by one of the Company’s shareholders Guangzhou Xiaomi Information Service Co. Ltd.("Xiaomi Information", collectively with Xiaomi Communication, Xiaomi Technology, Xiaomi Mobile, "Xiaomi") Controlled by one of the Company’s shareholders Hefei LianRui Microelectronics Technology Co. Ltd. ("Hefei Lianrui") Long-term investee of the Group Hangzhou Aqi Vision Technology Co. Ltd.("Hangzhou Aqi") Long-term investee of the Group Xi'an Haidao Information Technology Co. Ltd.("Haidao") Controlled by one of the Company’s shareholders Heifei Huaying Xingzhi Fund Partnership.(limited partship)("Huaying Fund") Long-term investee of the Group Shunwei Hitech Limited("Shunwei") One |
Summary of Amount Due from/to Related Parties | As of December 31, 2016 2017 RMB RMB Amount due from related parties: Xiaomi Communication (a) 457,100 566,732 Hefei HuaHeng (b) 42 — Xiaomi Mobile (a) 3,485 — Xiaomi Information (a) — 908 Hefei LianRui (c) 10,571 2,571 Hangzhou Aqi (c) 3,000 3,000 Haidao (c) 2,500 2,500 Others (d) — 2,743 Total 476,698 578,454 21. RELATED PARTY BALANCES AND TRANSACTIONS – CONTINUED (1) Balances : – continued As of December 31, 2016 2017 RMB RMB Amount due to related parties, current: Shunwei (e) (8,500 ) — Huaying Fund (f) (15,000 ) (3,061 ) Xiaomi Technology — (330 ) Xiaomi Mobile (g) — (4,752 ) Total (23,500 ) (8,143 ) Amount due to related party, non-current: Huaying Fund (f) — (3,076 ) Total — (3,076 ) (a) The amount due from Xiaomi represents receivables from the sales of Xiaomi wearable products. All balances were subsequently collected. ( b ) The amount due from Hefei HuaHeng represents the sales of the self-branded products of the Group. ( c ) The amount due from Hefei LianRui, Hangzhou Aqi, Haidao, represents the loans provided by the Group to these related parties in 2016. In July 2017, the Group converted a RMB8,000 loan provided to Hefei LianRui previously to equity interests in Hefei LianRui. ( d ) The amount due from others represents the withholding tax receivables from certain management paid by the Group on behalf of them, of which RMB1,471 has been collected subsequently. ( e ) The balance represents capital injection to be returned to Shunwei, which has been repaid in 2017. (f) The amount due to Huaying Fund consists of current and non-current balances. The current balance of RMB15,000 as of December 31, 2016 represents the unpaid capital injection agreed by the Group to Huaying Fund which has been fully paid in 2017. The current balance of RMB3,061 as of December 31, 2017 represents the cash received in advance for the disposal of the investment from the Group to the fund. The non-current balance of RMB3,076 represents the loan received from Huaying Fund with the interest rate of 4.35%. ( g ) The amount due to Xiaomi Mobile respects the accrued expenses of cloud service provided by Xiaomi Mobile ( h ) The Group disposed five long-term investments to Huaying Fund during the year ended December 31, 2017. |
Summary of Sales to Related Parties | (2) Transactions: For the years ended December 31, 2015 2016 2017 RMB RMB RMB Sales to related parties: Xiaomi Communication — 1,448,960 1,773,595 Xiaomi Technology 872,890 711 2,072 Hefei HuaHeng 3,846 256 730 Xiaomi Mobile — — 925 Xiaomi Information — — 1,318 Total 876,736 1,449,927 1,778,640 |
Summary of Other to Related Party | For the years ended December 31, 2015 2016 2017 RMB RMB RMB Others: Loan provided to related parties (c) — 16,071 (8,000 ) Investments disposed to a related party (h) — — 22,047 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Profit Attributable to Owners | For the years ended December 31, 2015 2016 2017 RMB RMB RMB Basic net (loss)/income per share calculation Numerator: Net (loss)/income for the year attributable to the Company: (37,853 ) 23,946 167,682 Less: Accretion of Series A Shares 4,799 3,209 3,762 Less: Accretion of Series B-1 Shares 1,222 2,738 3,127 Less: Accretion of Series B-2 Shares 17,376 30,121 34,382 Less: Undistributed earnings allocated to Series A preferred shareholders — — 48,753 Less: Undistributed earnings allocated to Series B-1 preferred shareholders — — 1,361 Less: Undistributed earnings allocated to Series B-2 preferred shareholders — — 14,220 Less: Undistributed earnings allocated to participating nonvested restricted shares — — 15,957 Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic (61,250 ) (12,122 ) 46,120 Denominator: Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares – basic 50,038,279 55,612,626 67,777,592 Net (loss) income per ordinary share attributable to ordinary shareholders—basic (1.22 ) (0.22 ) 0.68 Diluted net (loss)/income per share calculation Net (loss) income attributable to ordinary shareholders for computing net (loss income per ordinary shares—basic (61,250 ) (12,122 ) 46,120 Add: adjustments to undistributed earnings to participating securities — — 3,519 Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic (61,250 ) (12,122 ) 49,639 Denominator: Weighted average ordinary shares basic outstanding 50,038,279 55,612,626 67,777,592 Effect of potentially diluted stock options, restricted stocks and RSUs — — 8,514,309 Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares—dilute 50,038,279 55,612,626 76,291,901 Net (loss) income per ordinary share attributable to ordinary shareholders—diluted (1.22 ) (0.22 ) 0.65 |
Summary of Anti-dilutive Securities Excluded from Calculation of Diluted Net (Loss) Income Per Ordinary Shares | 22. NET (LOSS) INCOME PER SHARE – CONTINUED During the years ended December 31, 2015, 2016 and 2017, the following shares outstanding were excluded from the calculation of diluted net (loss) income per ordinary shares, as their inclusion would have been anti-dilutive for the years ended December 31, 2015, 2016 and 2017. For the years ended December 31, 2015 2016 2017 RMB RMB RMB Shares issuable upon exercise of share options, restricted stocks and RSUs 11,545,297 11,891,695 12,683,366 Shares issuable upon vesting of nonvested restricted shares 45,893,191 34,175,372 23,450,173 Shares issuable upon conversion of Series A shares 71,641,792 71,641,792 71,641,792 Shares issuable upon conversion of Series B-1 shares 1,347,945 2,000,000 2,000,000 Shares issuable upon conversion of Series B-2 shares 14,083,010 20,895,523 20,895,523 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Lease Commitments | Future minimum payments under lease commitments as of December. 31, 2017 were as follows: For the years ended December 31: RMB 2018 7,490 2019 and after 1,930 9,420 |
Schedule of Future Minimum Capital Commitments Under Non-cancellable Construction and Investments | As of December 31, 2017, future minimum capital commitments under non-cancelable construction and investments were as follows: Capital commitment for the purchase of property, plant and equipment RMB423,441 |
Organization and Principal Ac57
Organization and Principal Activities - Additional Information (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CNY (¥)Customer | Dec. 31, 2016CNY (¥)Customer | Dec. 31, 2015Customer | |
Variable Interest Entity [Line Items] | |||
Number of major customer | During the year ended December 31, 2015, 2016 and 2017, the Group derived over 75% of its revenue from sales of exclusively designed and manufactured smart wearable devices to one customer who is controlled by one of its shareholders. | ||
Number of major customers | Customer | 1 | 1 | 1 |
Anhui Huami and Beijing Huami | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 100.00% | ||
Anhui Huami and Beijing Huami | Mr. Huang | |||
Variable Interest Entity [Line Items] | |||
Percentage of common shares held | 39.40% | ||
Beijing Shun Yuan Kai Hua Technology Company Limited | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 100.00% | ||
Beijing Shun Yuan Kai Hua Technology Company Limited | Anhui Huami Intelligent Technology Company Limited | Eliminations | |||
Variable Interest Entity [Line Items] | |||
Intercompany payable | ¥ | ¥ 44,420 | ¥ 71,969 | |
Customer Concentration Risk | Sales Revenue Net | Minimum | |||
Variable Interest Entity [Line Items] | |||
Concentration risk, percentage | 75.00% | 75.00% | 75.00% |
Organization and Principal Ac58
Organization and Principal Activities - Schedule of Subsidiaries and VIEs (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Huami HK Limited (“Huami HK”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | Hong Kong (“HK”) |
Date of incorporation/acquisition | Dec. 23, 2014 |
Percentage of ownership | 100.00% |
Huami, Inc. (“Huami Inc”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | United States of America (“U.S.”) |
Date of incorporation/acquisition | Jan. 15, 2015 |
Percentage of ownership | 100.00% |
Beijing ShunYuan KaiHua Technology Co., Ltd. (“ShunYuan”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | PRC |
Date of incorporation/acquisition | Feb. 25, 2015 |
Percentage of ownership | 100.00% |
Huami (Shenzhen) Information Technology Co., Ltd. (“Huami SZ”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | PRC |
Date of incorporation/acquisition | Dec. 7, 2015 |
Percentage of ownership | 100.00% |
Anhui Huami Intelligent Technology Co., Ltd. (“Huami Intelligent”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | PRC |
Date of incorporation/acquisition | Dec. 28, 2015 |
Percentage of ownership | 100.00% |
Rill, Inc. (“Rill”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | US |
Date of incorporation/acquisition | Jun. 16, 2016 |
Percentage of ownership | 100.00% |
Anhui Huami | |
Schedule Of Investments [Line Items] | |
Place of incorporation | PRC |
Date of incorporation/acquisition | Dec. 27, 2013 |
Variable interest entity, nature of VIE | Consolidated VIE |
Beijing Huami | |
Schedule Of Investments [Line Items] | |
Place of incorporation | PRC |
Date of incorporation/acquisition | Jul. 11, 2014 |
Variable interest entity, nature of VIE | Consolidated VIE |
Anhui Huami Healthcare Co., Ltd. (“Huami Healthcare”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | PRC |
Date of incorporation/acquisition | Dec. 5, 2016 |
Variable interest entity, nature of VIE | VIE’s subsidiary |
Shenzhen Yunding Information Technology Co., Ltd. (“Yunding”) | |
Schedule Of Investments [Line Items] | |
Place of incorporation | PRC |
Date of incorporation/acquisition | Jul. 31, 2017 |
Variable interest entity, nature of VIE | VIE’s subsidiary |
Organization and Principal Ac59
Organization and Principal Activities - Schedule of Financial Statement Amounts and Balances of VIEs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | |||||
Total current assets | ¥ 1,295,360 | ¥ 859,843 | $ 199,093 | ||
Total assets | 1,465,517 | 972,896 | 225,246 | ||
Total current liabilities | 877,249 | 634,370 | 134,831 | ||
Total non-current liabilities | 10,486 | ||||
Total liabilities | 887,735 | 634,370 | $ 136,443 | ||
Revenues | 2,048,896 | 1,556,476 | ¥ 896,458 | ||
Net income | 167,682 | $ 25,771 | 23,946 | (37,853) | |
Net cash (used in)/provided by operating activities | 238,336 | 36,632 | 17,266 | (6,767) | |
Net cash used in investing activities | (38,881) | (5,976) | (99,387) | (4,911) | |
Net cash provided by financing activities | 20,089 | $ 3,087 | 10,024 | 214,063 | |
Variable Interest Entities | |||||
Variable Interest Entity [Line Items] | |||||
Total current assets | 1,178,273 | 742,497 | |||
Total non-current assets | 129,588 | 81,503 | |||
Total assets | 1,307,861 | 824,000 | |||
Total current liabilities | 809,653 | 564,532 | |||
Total liabilities | 820,139 | 564,532 | |||
Revenues | 2,042,640 | 1,552,340 | 895,286 | ||
Net income | 327,101 | 269,162 | 250,216 | ||
Net cash (used in)/provided by operating activities | 248,642 | 15,316 | (162,507) | ||
Net cash used in investing activities | (19,643) | (81,954) | (3,370) | ||
Net cash provided by financing activities | ¥ 20,000 | ¥ 17,500 | ¥ 36,836 |
Significant Accounting Polici60
Significant Accounting Policies - Additional Information (Details) $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017CNY (¥)Installment¥ / Unit | Dec. 31, 2017USD ($)Installment¥ / Unit | Dec. 31, 2016CNY (¥)¥ / Unit | Dec. 31, 2015CNY (¥)¥ / Unit | Dec. 31, 2017USD ($) | Dec. 29, 2017¥ / $ | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Significant Accounting Policies [Line Items] | |||||||||
Discount rate | 22.00% | 22.00% | |||||||
Impairment loss related to other intangible assets arising from acquisitions | ¥ 0 | ¥ 0 | ¥ 0 | ||||||
Impairment loss related to goodwill | 0 | ||||||||
Goodwill | ¥ 5,930,000 | ¥ 5,930,000 | $ 911 | $ 0 | $ 0 | ||||
Restricted cash description | Restricted cash represents deposits made to the bank for bank acceptance notes (or notes payable) issued by the Group. When the Group issues the bank acceptance notes, the banks requires the Group to make a deposit for 60% or 100% of the face value of the bank acceptance notes issued as collateral. | Restricted cash represents deposits made to the bank for bank acceptance notes (or notes payable) issued by the Group. When the Group issues the bank acceptance notes, the banks requires the Group to make a deposit for 60% or 100% of the face value of the bank acceptance notes issued as collateral. | |||||||
Inventory write-down | ¥ 2,449,000 | $ 376 | 1,037,000 | 0 | |||||
Impairment loss on cost method investments | 0 | 0 | 0 | ||||||
Impairment losses on equity method Investments | 0 | 0 | 0 | ||||||
Impairment losses on available- for-sale investments | ¥ 0 | ¥ 0 | ¥ 0 | ||||||
Best estimated selling price | ¥ / Unit | 1.30 | 1.30 | 0.43 | 0.31 | |||||
Revenues recognition period | 9 months | 9 months | |||||||
Percentage of sales revenue | 78.80% | 78.80% | 92.10% | 97.10% | |||||
Number of payment installments from customer | Installment | 2 | 2 | |||||||
Percentage of second installment payment receivable | 50.00% | 50.00% | |||||||
Value added tax rate | 17.00% | 17.00% | |||||||
Warranty term for products sold to one customer | 18 months | 18 months | |||||||
Product warranty term for one customer | 6 months | 6 months | |||||||
Additional warranty term to end users for products sold to one customer | 12 months | 12 months | |||||||
Warranty term for products sold to end users | 12 months | 12 months | |||||||
Government subsidies recognized as income | ¥ 6,719,000 | ¥ 14,726,000 | ¥ 549,000 | ||||||
Government deferred subsidy income | 9,104,000 | 9,104,000 | |||||||
Cash and cash equivalents | ¥ 366,336,000 | 366,336,000 | ¥ 153,152,000 | $ 56,305 | |||||
Foreign currency exchange rate | ¥ / $ | 6.5063 | ||||||||
Percentage of installment payments on future net profits | 50.00% | ||||||||
Cash and Cash Equivalents | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Restricted cash | ¥ 3,185,000 | ¥ 3,185,000 | |||||||
Company B and Company C | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Percentage of net revenues generated during the period | 86.70% | 86.70% | 93.20% | 97.40% | |||||
Company D | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Percentage of raw materials purchased | 29.00% | 29.00% | |||||||
U.S. Dollar Denominated | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash and cash equivalents | ¥ 66,494,000 | ¥ 66,494,000 | ¥ 98,537,000 | ¥ 164,188,000 | |||||
Selling and Marketing Expenses | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Advertising Expense | ¥ 7,586,000 | ¥ 13,474,000 | ¥ 14,819,000 | ||||||
Minimum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Second installment receivable period | 30 days | 30 days | |||||||
Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Second installment receivable period | 45 days | 45 days | |||||||
Patents and Trademark | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Amortization period | 10 years | 10 years |
Significant Accounting Polici61
Significant Accounting Policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Software and Electronic Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Software and Electronic Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 3 years |
Building | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 20 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | Shorter of the lease term or estimated useful lives |
Significant Accounting Polici62
Significant Accounting Policies - Account Receivable Concentration of Credit Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 32,867 | ¥ 19,707 | $ 5,052 |
Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 18,782 | ¥ 6,658 | |
Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 57.10% | 24.70% | |
Customer Concentration Risk | Company A | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 18,782 | ¥ 6,658 | |
Customer Concentration Risk | Company A | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 57.10% | 24.70% |
Significant Accounting Polici63
Significant Accounting Policies - Related Parties Concentration of Credit Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Amounts due from related parties | ¥ 578,454 | ¥ 476,698 | $ 88,907 |
Amount Due from Related Parties | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Amounts due from related parties | ¥ 566,732 | ¥ 457,100 | |
Concentration risk, percentage | 98.00% | 95.00% | |
Amount Due from Related Parties | Credit Concentration Risk | Company C | |||
Concentration Risk [Line Items] | |||
Amounts due from related parties | ¥ 566,732 | ¥ 457,100 | |
Concentration risk, percentage | 98.00% | 95.00% |
Significant Accounting Polici64
Significant Accounting Policies - Revenue Generated from Related Parties (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Concentration Risk [Line Items] | ||||
Revenues | ¥ 2,048,896 | $ 314,910 | ¥ 1,556,476 | ¥ 896,458 |
Sales Revenue Net | Credit Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Revenues | ¥ 1,775,667 | ¥ 1,449,671 | ¥ 872,890 | |
Concentration risk, percentage | 86.70% | 86.70% | 93.20% | 97.40% |
Sales Revenue Net | Credit Concentration Risk | Company B | ||||
Concentration Risk [Line Items] | ||||
Revenues | ¥ 2,072 | ¥ 711 | ¥ 872,890 | |
Concentration risk, percentage | 0.10% | 0.10% | 0.05% | 97.40% |
Sales Revenue Net | Credit Concentration Risk | Company C | ||||
Concentration Risk [Line Items] | ||||
Revenues | ¥ 1,773,595 | ¥ 1,448,960 | ||
Concentration risk, percentage | 86.60% | 86.60% | 93.10% |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - Yunding - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Percentage of equity interests acquired | 35.00% | ||
Payments to acquire equity interest | ¥ 2,520 | ||
Percentage of equity interests acquired | 22.00% | ||
Cash consideration | ¥ 1,584 | ||
Ownership equity interest acquired | 57.00% | ||
Realized gain on re-measurement of fair value of equity investment | ¥ 2,140 | ||
Percentage of equity interests acquired | 35.00% | ||
Maximum | |||
Business Acquisition [Line Items] | |||
Percentage of financial statements constituted | 1.00% |
Business Acquisitions - Summary
Business Acquisitions - Summary of Purchase Price (Details) - Yunding ¥ in Thousands | 1 Months Ended |
Jul. 31, 2017CNY (¥) | |
Business Acquisition [Line Items] | |
Cash consideration | ¥ 1,584 |
Fair value of the 35% equity interests: | |
Carrying amount | 380 |
Gain on re-measurement of fair value of noncontrolling equity investment | 2,140 |
Total | ¥ 4,104 |
Business Acquisitions - Summa67
Business Acquisitions - Summary of Purchase Price (Parenthetical) (Details) | Jul. 31, 2017 |
Yunding | |
Business Acquisition [Line Items] | |
Percentage of equity interests acquired | 35.00% |
Business Acquisitions - Summa68
Business Acquisitions - Summary of Purchase Price Allocation (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||
Jul. 31, 2017CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Intangible assets | |||||
Goodwill | ¥ 5,930 | $ 911 | $ 0 | $ 0 | |
Yunding | |||||
Business Acquisition [Line Items] | |||||
Cash | ¥ 3,475 | ||||
Other current assets | 3,213 | ||||
Property, plant and equipment | 134 | ||||
Intangible assets | |||||
Goodwill | 5,930 | ||||
Other current liabilities | (2,887) | ||||
Deferred tax liabilities | (955) | ||||
Other non-current liabilities | (6,033) | ||||
Noncontrolling interests | (2,976) | ||||
Total | ¥ 4,104 | ||||
Yunding | Minimum | |||||
Intangible assets | |||||
Property, plant and equipment, amortization period | 3 years 7 months 6 days | ||||
Yunding | Maximum | |||||
Intangible assets | |||||
Property, plant and equipment, amortization period | 4 years 9 months 18 days | ||||
Yunding | Patents | |||||
Intangible assets | |||||
Patents | ¥ 4,203 | ||||
Amortization period | 10 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 30, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Inventory Disclosure [Abstract] | ||||
Raw materials | ¥ 169,665 | ¥ 115,374 | ||
Work in process | 30,195 | 30,528 | ||
Finished goods | 49,875 | 46,470 | ||
Total | ¥ 249,735 | $ 38,384 | ¥ 249,735 | ¥ 192,372 |
Inventories - Additional Inform
Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Inventory Disclosure [Abstract] | ||||
Write down of obsolete inventory | ¥ 2,449 | $ 376 | ¥ 1,037 | ¥ 0 |
Short Term Investments - Schedu
Short Term Investments - Schedule of Short-Term Investment Included Convertible Bonds (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Convertible bonds: | |||
Total: | ¥ 13,721 | $ 2,109 | ¥ 9,236 |
Convertible Bond | Abee Semi, Inc. (“Abee”) | |||
Convertible bonds: | |||
Convertible bonds | 7,208 | 7,198 | |
Convertible Bond | Beijing Zulin Technology Co., Ltd | |||
Convertible bonds: | |||
Convertible bonds | ¥ 2,038 | ||
Convertible Bond | Zepp International Limited | |||
Convertible bonds: | |||
Convertible bonds | ¥ 6,513 |
Short Term Investments - Sche72
Short Term Investments - Schedule of Short-Term Investment Included Convertible Bonds (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Apr. 20, 2017CNY (¥) | Jul. 25, 2016CNY (¥) | Dec. 31, 2017CNY (¥) | Jun. 30, 2017 | Jun. 30, 2016CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 6,506 | $ 1,000 | ¥ 8,937 | |||||
Unrealized gain on available-for-sale investments | 9,484 | 1,458 | 303 | |||||
Realized gain from investment | 2,373 | $ 365 | ||||||
Abee Semi, Inc. (“Abee”) | Convertible Bond | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 6,937 | |||||||
Interest rate | 7.00% | |||||||
Maturity term | 1 year | |||||||
Extended maturity term | 1 year | |||||||
Unrealized gain on available-for-sale investments | ¥ 10 | ¥ 261 | ||||||
Beijing Zulin Technology Co., Ltd | Convertible Bond | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Interest rate | 4.35% | |||||||
Maturity term | 1 year | |||||||
Invested to acquire convertible bond | ¥ 2,000 | |||||||
Proceeds from Investments | ¥ 2,062 | |||||||
Realized gain from investment | ¥ 62 | |||||||
Zepp International Limited | Convertible Bond | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 6,506 | |||||||
Interest rate | 10.00% | |||||||
Maturity term | 9 months |
Prepaid Expenses and Other Cu73
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Prepaid Expense And Other Assets Current [Abstract] | |||
Deferred IPO expense | ¥ 13,268 | ||
Value-added tax | 13,170 | ||
Short-term loans provided | 11,857 | ||
Advances to suppliers | 5,128 | ¥ 1,229 | |
Other receivables | 4,656 | 2,418 | |
Rental deposits | 1,969 | 2,316 | |
Prepaid expenses | 1,014 | 2,715 | |
Total | ¥ 51,062 | $ 7,847 | ¥ 8,678 |
Prepaid Expenses and Other Cu74
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Maximum | |
Schedule Of Prepaid Expenses And Other Assets [Line Items] | |
Short-term loans to third parties, maturity period | 1 year |
Property, Plant And Equipment75
Property, Plant And Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 35,011 | ¥ 13,499 | |
Less: accumulated depreciation | (6,256) | (2,698) | |
Property, plant and equipment, net | 28,755 | $ 4,420 | 10,801 |
Software and Electronic Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 7,092 | 5,627 | |
Building | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 18,592 | ||
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 9,327 | ¥ 7,872 |
Property, Plant And Equipment76
Property, Plant And Equipment, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | ¥ 3,542 | $ 544 | ¥ 2,399 | ¥ 285 |
Impairment charge | ¥ 0 | ¥ 0 | ¥ 0 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Long-Term Investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Aug. 31, 2016CNY (¥) |
Schedule Of Investments [Line Items] | ||||
Cost method investments | ¥ 750 | ¥ 7,750 | ||
Available-for-sale investments | 20,486 | 1,004 | ||
Total | 85,238 | $ 13,101 | 78,057 | |
Huaying Fund | ||||
Schedule Of Investments [Line Items] | ||||
Equity method investments: | 55,905 | 50,000 | ¥ 50,000 | |
Other Equity Method Investments | ||||
Schedule Of Investments [Line Items] | ||||
Equity method investments: | ¥ 8,097 | ¥ 19,303 |
Long-Term Investments - Sched78
Long-Term Investments - Schedule of Long-Term Investments (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Jul. 27, 2017CNY (¥) | Nov. 30, 2017 | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Jul. 31, 2017CNY (¥) | Aug. 31, 2016CNY (¥) |
Schedule Of Investments [Line Items] | |||||||
Proceeds from sale of long-term investments, cash consideration | ¥ 23,085 | $ 3,548 | |||||
Unrealized gain on available-for-sale investments | 9,484 | 1,458 | ¥ 303 | ||||
Huaying Fund | |||||||
Schedule Of Investments [Line Items] | |||||||
Equity method investments | ¥ 55,905 | ¥ 50,000 | ¥ 50,000 | ||||
Equity method investment, ownership percentage | 49.50% | ||||||
Hefei LianRui | |||||||
Schedule Of Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 27.50% | ||||||
Conversion of loan to equity method investment | ¥ 8,000 | ||||||
Percentage of interest transferred after dilution | 17.16% | ||||||
Unrealized gain on available-for-sale investments | $ | $ 10,363 | ||||||
Beijing Feisou | |||||||
Schedule Of Investments [Line Items] | |||||||
Proceeds from sale of long-term investments, cash consideration | ¥ 5,133 | ||||||
Gain on sale of investments | ¥ 67 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Available-for-Sale Investments Include Convertible Bonds and Redeemable Preferred Shares Measured and Recorded at Fair Value on Recurring Basis (Details) - Recurring Basis - Convertible Bonds - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | ¥ 34,207 | ¥ 10,240 |
Redeemable Preferred Shares | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 20,077 | |
Significant Other Observable Inputs Level 2 | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 34,207 | 10,240 |
Significant Other Observable Inputs Level 2 | Redeemable Preferred Shares | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 20,077 | |
Convertible Bond | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 14,130 | 10,240 |
Convertible Bond | Significant Other Observable Inputs Level 2 | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | ¥ 14,130 | ¥ 10,240 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Fair value assets transferred from level 1 to level 2 | ¥ 0 | ¥ 0 |
Fair value assets transferred from level 2 to level 1 | 0 | 0 |
Fair value assets transferred into level 3 | 0 | 0 |
Fair value assets transferred out of level 3 | ¥ 0 | ¥ 0 |
Other Non-Current Assets - Addi
Other Non-Current Assets - Additional Information (Details) ¥ in Thousands | 1 Months Ended |
Jun. 30, 2017CNY (¥) | |
Other Non-Current Assets | Anhui Zhong’an Chuanggu Technology Park Co., Ltd. | |
Other Non Current Assets [Line Items] | |
Prepaid cash consideration | ¥ 3,000 |
Accrued Expenses and Other Cu82
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Payables And Accruals [Abstract] | |||||
Deferred revenue | ¥ 17,876 | ¥ 9,159 | |||
Product warranty | 8,431 | 4,870 | ¥ 4,275 | ¥ 843 | |
Accrued payroll and welfare | 30,207 | 17,937 | |||
Accrued expenses | 3,943 | 1,386 | |||
Accrued professional fee | 13,268 | ||||
Other tax payable | 6,569 | 8,899 | |||
Other current liabilities | 13,504 | 5,372 | |||
Total | ¥ 93,798 | $ 14,416 | ¥ 47,623 |
Accrued Expenses and Other Cu83
Accrued Expenses and Other Current Liabilities - Summary of Product Warranty Activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantees And Product Warranties [Abstract] | |||
Beginning balance | ¥ 4,870 | ¥ 4,275 | ¥ 843 |
Provided during the year | 23,093 | 14,153 | 12,255 |
Utilized during the year | (19,532) | (13,558) | (8,823) |
Ending balance | ¥ 8,431 | ¥ 4,870 | ¥ 4,275 |
Accrued Expenses and Other Cu84
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost of Revenue | |||
Product Warranty Liability [Line Items] | |||
Warranty costs recorded | ¥ 23,093 | ¥ 14,153 | ¥ 12,255 |
Bank Borrowing - Additional Inf
Bank Borrowing - Additional Information (Details) ¥ in Thousands, $ in Thousands | Jan. 04, 2017CNY (¥) | Dec. 22, 2016CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Short Term Debt [Line Items] | |||||
Bank borrowings | ¥ 30,000 | $ 4,611 | ¥ 10,000 | ||
Hui Shang Bank [Member] | |||||
Short Term Debt [Line Items] | |||||
Bank borrowings | ¥ 10,000 | ||||
Bank borrowings, maturity term | 1 year | ||||
Hui Shang Bank [Member] | Maximum | |||||
Short Term Debt [Line Items] | |||||
Percentage of floating interest rate bearing benchmark interest rate | 121.00% | ||||
Hefei Branch of China Merchants Bank [Member] | |||||
Short Term Debt [Line Items] | |||||
Bank borrowings | ¥ 30,000 | ||||
Bank borrowings, maturity term | 1 year | ||||
Bank borrowings, fixed interest rate | 5.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Operating loss carry forwards | ¥ 143,710 | ||
Operating loss carry forwards, expiration start year | 2,020 | ||
Operating loss carry forwards, expiration end year | 2,037 | ||
Income tax holiday, description | If the tax holiday granted to Anhui Huami was not available, the Group’s income tax expense would have increased by RMB2,972, RMB16,533 and RMB30,740, the basic net income per share attributable to the Company would have decreased by RMB0.06, RMB0.30 and RMB0.45 during the years ended December 31, 2015, 2016 and 2017, respectively, and the diluted net income per share attributable to the Company would have decreased by RMB0.06, RMB0.30 and RMB0.45 during the years ended December 31, 2015, 2016 and 2017, respectively. | ||
If no income tax holiday, increase effect in income tax expense | ¥ 30,740 | ¥ 16,533 | ¥ 2,972 |
If no income tax holiday, decrease effect in basic net income per share | ¥ 0.45 | ¥ 0.30 | ¥ 0.06 |
If no income tax holiday, decrease effect in diluted net income per share | ¥ 0.45 | ¥ 0.30 | ¥ 0.06 |
Deferred tax assets, valuation allowance | ¥ 0 | ¥ 0 | ¥ 0 |
Percentage of withholding tax on dividends paid to foreign investors | 10.00% | ||
High and New Technology Enterprise | Anhui Huami | |||
Income Tax Contingency [Line Items] | |||
Income tax rate | 15.00% | 15.00% | 15.00% |
Huami HK Limited | Hong Kong | |||
Income Tax Contingency [Line Items] | |||
Income tax rate | 16.50% | ||
PRC Subsidiaries [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax rate | 25.00% | ||
PRC Subsidiaries [Member] | VIEs and VIEs’ Subsidiaries [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax rate | 25.00% | ||
PRC subsidiaries and VIEs | |||
Income Tax Contingency [Line Items] | |||
Aggregate undistributed earnings available for distribution | ¥ 350,251 | ¥ 100,329 | |
Deferred tax liabilities attributable to undistributed earning | ¥ 0 | ¥ 0 |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Components of Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 46,573 | ¥ 21,556 | ¥ 2,311 | |
Deferred tax benefits | (18,962) | $ (2,915) | (18,468) | (3,208) |
Income tax (benefit) expense | ¥ 27,611 | $ 4,244 | ¥ 3,088 | ¥ (897) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Group's Deferred Tax Assets and Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Deferred tax assets | ||||
Accrued expenses | ¥ 7,919 | ¥ 208 | ||
Net operating loss carry forwards | 33,976 | 22,764 | ||
Total deferred tax assets | 41,895 | 22,972 | ||
Less: valuation allowance | 0 | 0 | ¥ 0 | |
Deferred tax assets, net | ¥ 41,895 | $ 6,439 | ¥ 22,972 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense Reconciliation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
(Loss) income before income tax | ¥ 191,900 | $ 29,494 | ¥ 28,863 | ¥ (38,750) |
Tax (benefit) expense at PRC enterprise income tax rate of 25% | 47,975 | 7,216 | (9,688) | |
Income tax on tax holidays | (30,740) | (16,533) | (2,972) | |
Tax effect of permanence differences | (8,190) | (621) | (2,080) | |
Effect of income tax rate differences in jurisdictions other than the PRC | 14,364 | 13,026 | 13,843 | |
Change in tax rate | 4,202 | |||
Income tax (benefit) expense | ¥ 27,611 | $ 4,244 | ¥ 3,088 | ¥ (897) |
Income Taxes - Schedule of In90
Income Taxes - Schedule of Income Tax Expense Reconciliation (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
PRC Subsidiaries [Member] | |
Reconciliation Of Income Taxes [Line Items] | |
Enterprise income tax rate | 25.00% |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Ordinary shares, shares authorized | 405,462,685 | 405,462,685 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares issued | 91,304,327 | 91,169,327 |
Ordinary shares, shares outstanding | 91,304,327 | 91,169,327 |
Preferred Shares - Additional I
Preferred Shares - Additional Information (Details) ¥ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2015CNY (¥)¥ / sharesshares | Apr. 30, 2015USD ($)shares | Jan. 31, 2014CNY (¥)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2014CNY (¥)¥ / sharesshares | |
Class Of Stock [Line Items] | |||||
Preferred share, terms of conversion | Each Preferred Share shall automatically be converted into ordinary shares of the Company, at the then applicable Preferred Share Conversion Price (i) upon the closing of a Qualified Initial Public Offering (the “Qualified IPO”); (ii)upon the prior written approval of the holders of a majority of the Series A Preferred Shares and the holders of two thirds (2/3) of the Series B Preferred Shares. | ||||
Preferred share, dividend payment terms | No dividend, whether in cash, in property or in shares of the capital of the Company, shall be paid on any other class or series of shares of the Company unless and until a cumulative dividend at the rate of eight percent (8%) of the applicable Preferred Share Issue Price per annum per Preferred Share is first paid in full on the Preferred Shares (on an as-converted basis). | ||||
Dividend | ¥ 0 | ||||
Cumulative dividend rate | 8.00% | ||||
Preferred share, liquidation event terms | The following events shall be deemed a liquidation, dissolution or winding up of the Company (each, a “Liquidation Event”): (i)any acquisition of the Company (whether by a sale of equity, merger or consolidation) in which in excess of 50% of the Company’s voting power outstanding before such transaction is transferred; (ii)a sale of all or substantially all of the Company’s assets and no substantial business operations will be continued by the Company. | ||||
Reduction of additional paid-in capital | ¥ 0 | ||||
Minimum | |||||
Class Of Stock [Line Items] | |||||
Liquidation event voting power percentage | 50.00% | ||||
Banyan | |||||
Class Of Stock [Line Items] | |||||
Bridge loan | ¥ 36,682,000 | ||||
SCC | |||||
Class Of Stock [Line Items] | |||||
Bridge loan | ¥ 18,359,000 | ||||
HHtech Holdings Limited, a Company | Ordinary Shares | |||||
Class Of Stock [Line Items] | |||||
Repurchased of ordinary shares | shares | 2,000,000 | 2,000,000 | |||
Repurchased of ordinary shares value | ¥ 19,467,000 | ||||
Share price | ¥ / shares | ¥ 5.14 | ||||
Series A Preferred Shares | |||||
Class Of Stock [Line Items] | |||||
Preferred share, redemption terms | Redemption Condition for Series A Preferred Shares: The Series A Preferred Shares is redeemable at any time after the earlier of: (i)forty-eight (48) months after January 17, 2014, if the Company has not consummated a Qualified IPO; (ii)any Redemption required by other Investors (the “Redemption Start Date for Series A Shares”, together with Redemption Start Date for Series B Shares, the “Redemption Start Date”), then subject to the applicable laws of the Cayman Islands and if so requested by the Majority Series A Holders, the Company shall redeem all or part of the issued, outstanding Series A Preferred Shares in cash out of funds legally available therefor (the “Series A Redemption”, together with the Series B Redemption, the “Redemption”). | ||||
Preferred shares, redeemable period | 48 months | ||||
Preferred share, redemption price terms | The redemption price of each Series A preferred share (the “Series A Redemption Price) shall be the higher Of: (i) the sum of the Series A preferred share issuance price; plus 15% compound interest per annum on the Series A preferred share issuance price for each Series A preferred share accreted over the period from January 17, 2014 to the earliest redemption date of the security; plus all declared but unpaid dividends per Series A preferred share; (ii) (iii) the fair market value determined in accordance with the assessment by the independent appraiser selected jointly by the majority holders of Series A and the Company. | ||||
Compound interest rate | 15.00% | ||||
Preferred share, liquidation preference description | The holders of the Series A Preferred Shares shall be entitled to receive, prior to any distribution to the holders of the Ordinary Shares or any other class or series of shares then issued, outstanding, an amount per Series A Preferred Share equal to one hundred and fifty percent (150%) of the Series A Issue Price (the “Series A Preference Amount”) | ||||
Preferred share, percentage of liquidation preference | 150.00% | ||||
Series B-1 Preferred Shares | HHtech Holdings Limited, a Company | |||||
Class Of Stock [Line Items] | |||||
Consideration amount | ¥ 19,467,000 | ||||
Number of preferred shares issued | shares | 2,000,000 | 2,000,000 | |||
Shares issued, price per share | ¥ / shares | ¥ 9.9 | ||||
Series B-2 Preferred Shares | |||||
Class Of Stock [Line Items] | |||||
Shares issued, price per share | ¥ / shares | ¥ 10.25 | ||||
Preferred shares issued | shares | 20,895,523 | ||||
Proceeds from issuance of preferred shares | ¥ 214,063,000 | ||||
Conversion price | ¥ / shares | ¥ 10.25 | ||||
Remaining proceeds paid and received in full | $ | $ 159,022 | ||||
Series B-2 Preferred Shares | Banyan | |||||
Class Of Stock [Line Items] | |||||
Convertible preferred stock, shares issued upon conversion | shares | 3,582,090 | ||||
Series B-2 Preferred Shares | SCC | |||||
Class Of Stock [Line Items] | |||||
Convertible preferred stock, shares issued upon conversion | shares | 1,791,045 | ||||
Series B Preferred Shares | |||||
Class Of Stock [Line Items] | |||||
Preferred share, redemption terms | The Series B Preferred Shares is redeemable, at any time after the earlier of: (i)forty-eight (48) months after January 17, 2014, if the Company has not consummated a Qualified IPO; (ii) any Redemption required by other Investors (the “Redemption Start Date for Series A Shares”, together with Redemption Start Date for Series B Shares, the “Redemption Start Date”), then subject to the applicable laws of the Cayman Islands and if so requested by the Majority Series A Holders, the Company shall redeem all or part of the issued, outstanding Series A Preferred Shares in cash out of funds legally available therefor (the “Series A Redemption”, together with the Series B Redemption, the “Redemption”). | ||||
Preferred shares, redeemable period | 48 months | ||||
Preferred share, redemption price terms | The redemption price of each Series B preferred share (the “Series B Redemption Price”, together with the “Series A Redemption Price”, the “Redemption Price”) shall be the higher of: (i) (ii) the sum of the Series B preferred share issuance price; plus 12% compound interest per annum on the Series B preferred share issuance price for each Series B preferred share accreted over the period from the date of issuance to the earliest redemption date of the security; plus all declared but unpaid dividends per Series B preferred share; (iii) the fair market value of each Series B preferred share determined in accordance with the assessment by the independent appraiser selected jointly by the holders of the majority holders of Series B Holders and the Company at the date of redemption. | ||||
Compound interest rate | 12.00% | ||||
Preferred share, liquidation preference description | The holders of the Series B Preferred Shares shall be entitled to receive, prior to any distribution to the holders of the Series A Preferred Shares, the Ordinary Shares or any other class or series of shares then issued, outstanding, an amount per Series B Preferred Share equal to one hundred and fifty percent (150%) of the applicable Series B Issue Price (the “Series B Preference Amount”) | ||||
Preferred share, percentage of liquidation preference | 150.00% | ||||
Anhui Huami | |||||
Class Of Stock [Line Items] | |||||
Equity method investment, ownership percentage | 40.00% | ||||
Consideration amount | ¥ 15,000,000 | ||||
Anhui Huami | Series A Preferred Shares | |||||
Class Of Stock [Line Items] | |||||
Number of preferential equity converted into preferred shares | shares | 35,820,896 |
Preferred Shares - Change in Ba
Preferred Shares - Change in Balance of Series Preferred Included in Mezzanine Equity (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Series A Preferred Shares | |||
Class Of Stock [Line Items] | |||
Beginning balance | ¥ 23,008 | ¥ 19,799 | ¥ 15,000 |
Accretion of preferred share | 3,762 | 3,209 | 4,799 |
Ending balance | 26,770 | 23,008 | 19,799 |
Series B-1 Preferred Shares | |||
Class Of Stock [Line Items] | |||
Beginning balance | 23,779 | 21,041 | |
Issuance of preferred shares | 19,819 | ||
Accretion of preferred share | 3,127 | 2,738 | 1,222 |
Ending balance | 26,906 | 23,779 | 21,041 |
Series B-2 Preferred Shares | |||
Class Of Stock [Line Items] | |||
Beginning balance | 261,560 | 231,439 | |
Issuance of preferred shares | 214,063 | ||
Accretion of preferred share | 34,382 | 30,121 | 17,376 |
Ending balance | ¥ 295,942 | ¥ 261,560 | ¥ 231,439 |
Share-Based Payment - Additiona
Share-Based Payment - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Oct. 21, 2015shares | Apr. 30, 2015shares | Dec. 31, 2017CNY (¥)Installment¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2017$ / shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Equity interests held by founders | 50.00% | ||||||||
Total intrinsic value of options exercised | ¥ | ¥ 1,695 | ¥ 262 | ¥ 0 | ||||||
Weighted average grant date fair value of options granted | ¥ / shares | ¥ 11.22 | ¥ 5.67 | ¥ 5.43 | ||||||
IPO | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unrecognized compensation expenses | ¥ | ¥ 44,216 | ||||||||
2015 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expense | ¥ | 4,713 | ¥ 394 | ¥ 2,632 | ||||||
Restricted Shares | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expense | ¥ | ¥ 6,611 | ¥ 6,499 | ¥ 5,757 | ||||||
Number of restricted shares granted | 0 | 0 | 0 | 0 | |||||
Recognized compensation expense service period | 4 years | 4 years | |||||||
Aggregate fair value of restricted shares | ¥ | ¥ 25,397 | ||||||||
Non-vested shares measured at fair value of ordinary shares | (per share) | ¥ 5.36 | $ 0.84 | |||||||
Unrecognized compensation cost | ¥ | ¥ 6,977 | ||||||||
Weighted average vesting period over which unrecognized compensation costs is expected to be recognized | 1 year 1 month 6 days | 1 year 1 month 6 days | |||||||
Number of shares cancelled or forfeited | 0 | 0 | 0 | 0 | |||||
Restricted Shares | US Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of restricted shares granted | 4,740,777 | 4,740,777 | |||||||
Number of restricted shares cancelled and forfeited | 103,430 | 103,430 | |||||||
Share Options | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Non-vested shares measured at fair value of ordinary shares | ¥ / shares | ¥ 12.56 | ¥ 7.5 | ¥ 5.83 | ||||||
Share Options | 2015 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options granted | 2,045,688 | 2,045,688 | |||||||
Share options granted exercise price | ¥ / shares | ¥ 1.26 | ||||||||
Share Options | US Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options granted | 0 | 0 | 140,000 | 140,000 | 270,000 | 270,000 | |||
Share options granted exercise price | $ / shares | $ 0.1 | ||||||||
Share options granted expiration period | 10 years | 10 years | |||||||
Fully vested share options | 500,000 | 500,000 | 0 | 0 | 900,000 | 900,000 | |||
Share Options | US Plan | Share-based Compensation Award, Tranche One | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting rights percentage | 25.00% | 25.00% | |||||||
Share Options | US Plan | Second Anniversary from Grant Date | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting rights percentage | 25.00% | 25.00% | |||||||
Share Options | US Plan | Third Anniversary from Grant Date | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting rights percentage | 25.00% | 25.00% | |||||||
Share Options | US Plan | Fourth Anniversary from Grant Date | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting rights percentage | 25.00% | 25.00% | |||||||
Share Options | PRC Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 0 | $ 0 | $ 0 | ||||||
Share options granted | 1,545,688 | 1,545,688 | 925,235 | 925,235 | 5,061,622 | 5,061,622 | |||
Share options granted exercise price | $ / shares | $ 0 | ||||||||
Share options granted expiration period | 10 years | 10 years | |||||||
Share Options | Maximum | 2015 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of ordinary shares to be issued | 14,328,358 | ||||||||
Share Options | Maximum | US Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options granted exercise price | $ / shares | $ 0.99 | ||||||||
Share Options | Minimum | US Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options granted exercise price | $ / shares | $ 0.79 | ||||||||
Vesting period | 4 years | 4 years | |||||||
Restricted Stock Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of restricted shares held | 2,298,775 | 1,176,050 | |||||||
Share-based compensation expense | ¥ | ¥ 62,787 | ¥ 57,735 | ¥ 55,991 | ||||||
Number of restricted shares granted | 1,700,000 | 1,700,000 | |||||||
Recognized compensation expense service period | 4 years | 4 years | |||||||
Non-vested shares measured at fair value of ordinary shares | ¥ / shares | ¥ 11.38 | ¥ 5.96 | ¥ 5.4 | ||||||
Unrecognized compensation cost | ¥ | ¥ 25,021 | ||||||||
Weighted average vesting period over which unrecognized compensation costs is expected to be recognized | 3 years 1 month 17 days | 3 years 1 month 17 days | |||||||
Number of shares cancelled or forfeited | 577,275 | 577,275 | |||||||
Aggregate fair value of restricted shares | ¥ | ¥ 27,604 | ||||||||
Weighted average grant date fair value | ¥ / shares | ¥ 12.54 | ¥ 7.5 | ¥ 5.8 | ||||||
Founders | Restricted Shares | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of equal vesting monthly installments | Installment | 24 | ||||||||
Number of restricted shares held | 45,567,164 | 22,783,582 | 34,175,373 | ||||||
Additional vesting period for restricted shares | 48 months | ||||||||
Founders | Unvested Shares | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expense | ¥ | ¥ 51,463 | ¥ 50,842 | ¥ 37,188 | ||||||
Employees | Restricted Shares | US Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of restricted shares granted | 4,740,777 | ||||||||
Vesting rights, description | These shares have a vesting period of four years of employment services with the first one-fourth vesting on the first anniversary from grant date, and the remaining three-fourth vesting on an annual basis over a three-year period ending on the fourth anniversary of the grant date. | These shares have a vesting period of four years of employment services with the first one-fourth vesting on the first anniversary from grant date, and the remaining three-fourth vesting on an annual basis over a three-year period ending on the fourth anniversary of the grant date. | |||||||
Employees | Restricted Shares | US Plan | Share-based Compensation Award, Tranche One | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Vesting rights percentage | 0.25% | ||||||||
Employees | Restricted Shares | US Plan | Annual Basis Ending on Fourth Anniversary of Grant Date | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Vesting rights percentage | 0.75% | ||||||||
Employees | Restricted Stock Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of restricted shares granted | 1,700,000 | 1,700,000 | 745,000 | 745,000 | 795,500 | 795,500 | |||
Vesting rights, description | These shares have a vesting period of four years of employment services with the first one-fourth vesting on the first anniversary from grant date, and the remaining three-fourth vesting on an annual basis over a three-year period ending on the fourth anniversary of the grant date. | These shares have a vesting period of four years of employment services with the first one-fourth vesting on the first anniversary from grant date, and the remaining three-fourth vesting on an annual basis over a three-year period ending on the fourth anniversary of the grant date. | |||||||
Employees | Restricted Stock Units | Share-based Compensation Award, Tranche One | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | 4 years | |||||||
Vesting rights percentage | 0.25% | 0.25% | |||||||
Employees | Restricted Stock Units | Annual Basis Ending on Fourth Anniversary of Grant Date | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | 3 years | |||||||
Vesting rights percentage | 0.75% | 0.75% |
Share-Based Payment - Summary o
Share-Based Payment - Summary of Non-vested Restricted Share Activity (Details) - Restricted Shares - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Granted | 0 | 0 |
Number of shares, Forfeited | 0 | 0 |
Founders | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Outstanding | 34,175,373 | |
Number of shares, Vested | 11,391,791 | |
Number of shares, Outstanding | 22,783,582 | 34,175,373 |
Share-Based Payment - Summary96
Share-Based Payment - Summary of Assumptions used to Determine Fair Value of Share Options Granted (Details) - Share Options - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.20% | 2.04% | |
Expected volatility | 49.00% | 46.20% | 46.10% |
Expected life of option (years) | 10 years | 10 years | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value per ordinary share | ¥ 12.56 | ¥ 7.5 | ¥ 5.83 |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.62% | ||
Expected life of option (years) | 9 years 9 months 3 days | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.85% | ||
Expected life of option (years) | 10 years |
Share-Based Payment - Summary97
Share-Based Payment - Summary of Stock Option Activity (Details) - Share Options | 12 Months Ended |
Dec. 31, 2017¥ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options granted Share Number, Outstanding Beginning Balance | shares | |
Options granted Share Number, Outstanding Ending Balance | shares | 7,338,559 |
Weighted average exercise price per option, Outstanding Beginning Balance | ¥ / shares | |
Weighted average exercise price per option, Outstanding Ending Balance | ¥ / shares | ¥ 1.03 |
2015 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options granted Share Number, Outstanding Beginning Balance | shares | 6,078,298 |
Options granted Share Number, Granted | shares | 2,045,688 |
Options granted Share Number, Exercised | shares | 135,000 |
Options granted Share Number, Cancelled and Forfeited | shares | 650,427 |
Options granted Share Number, Outstanding Ending Balance | shares | 7,338,559 |
Weighted average exercise price per option, Outstanding Beginning Balance | ¥ / shares | ¥ 0.91 |
Weighted average exercise price per option, Granted | ¥ / shares | 1.26 |
Weighted average exercise price per option, Exercised | ¥ / shares | 0.65 |
Weighted average exercise price per option, Cancelled and Forfeited | ¥ / shares | 0.14 |
Weighted average exercise price per option, Outstanding Ending Balance | ¥ / shares | ¥ 1.03 |
Share-Based Payment - Summary98
Share-Based Payment - Summary of Share Options Granted (Details) - Share Options ¥ / shares in Units, ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Number, Outstanding | shares | 7,338,559 |
Options Number, Exercisable | shares | 1,400,000 |
Options Number, Expected to vest | shares | 5,938,559 |
Weighted average exercise price per option, Outstanding Ending Balance | ¥ / shares | ¥ 1.03 |
Weighted-average exercise price per option, Exercisable | ¥ / shares | ¥ 5.42 |
Weighted-average remaining exercise contractual life (years), Outstanding | 8 years 4 months 17 days |
Weighted-average remaining exercise contractual life (years), Exercisable | 8 years 5 months 15 days |
Weighted-average remaining exercise contractual life (years), Excepted to vest | 8 years 4 months 9 days |
Aggregate intrinsic value, Outstanding | ¥ | ¥ 94,233 |
Aggregate intrinsic value, Exercisable | ¥ | 17,977 |
Aggregate intrinsic value, Expected to vest | ¥ | ¥ 76,256 |
Share-Based Payment - Summary99
Share-Based Payment - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2017shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares, Outstanding | 1,176,050 |
Number of shares, Granted | 1,700,000 |
Number of shares, Cancelled and Forfeited | 577,275 |
Number of shares, Outstanding | 2,298,775 |
Share-Based Payment - Total Sha
Share-Based Payment - Total Share-based Compensation Recognized (Details) - Restricted Stock Units - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | ¥ 62,787 | ¥ 57,735 | ¥ 55,991 |
Research and Development | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 6,983 | 2,626 | 2,588 |
General and Administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | ¥ 55,804 | ¥ 55,109 | ¥ 53,403 |
Share-Based Payment - Total 101
Share-Based Payment - Total Share-based Compensation Recognized (Parenthetical) (Details) - Founders - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense from repurchase of ordinary shares | ¥ 10,414 | ||
Repurchase of ordinary share | 0 | 0 |
Mainland China Contribution 102
Mainland China Contribution Plan - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Total provisions for employee benefits | ¥ 24,539 | ¥ 19,290 | ¥ 7,129 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) - 12 months ended Dec. 31, 2017 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Noncontrolling Interest [Abstract] | ||
Noncontrolling interest arise from acquisition | ¥ 2,976 | |
Less: Net loss attributable to noncontrolling interest | (587) | $ (90) |
Ending balance | ¥ 2,389 | $ 367 |
Noncontrolling Interests - S104
Noncontrolling Interests - Schedule of Noncontrolling Interests (Parenthetical) (Details) - Yunding | Jul. 31, 2017 |
Minority Interest [Line Items] | |
Percentage of equity interests acquired | 22.00% |
Ownership equity interest acquired | 57.00% |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 2 | 2 | 2 |
Segment Information - Schedule
Segment Information - Schedule of Revenues, Cost of Revenues and Gross Profits by Segment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Revenues | ¥ 2,048,896 | ¥ 1,556,476 | ¥ 896,458 | |
Cost of revenues | 1,554,194 | $ 238,875 | 1,280,324 | 785,867 |
Gross profit | 494,702 | $ 76,035 | 276,152 | 110,591 |
Xiaomi Wearable Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,614,512 | 1,434,136 | 870,766 | |
Cost of revenues | 1,232,792 | 1,182,646 | 762,211 | |
Gross profit | 381,720 | 251,490 | 108,555 | |
Self-branded Products and Others | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 434,384 | 122,340 | 25,692 | |
Cost of revenues | 321,402 | 97,678 | 23,656 | |
Gross profit | ¥ 112,982 | ¥ 24,662 | ¥ 2,036 |
Statutory Reserves and Restr107
Statutory Reserves and Restricted Net Assets - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | |||
Appropriation to statutory reserve funds | ¥ 1,509 | ||
Restricted net assets | ¥ 79,056 | ¥ 163,350 | ¥ 154,342 |
PRC | |||
Statutory Accounting Practices [Line Items] | |||
Required maximum percentage of statutory surplus reserve to registered capital | 50.00% | ||
Required minimum percentage of after tax profits to allocate to statutory common reserve | 10.00% | ||
Maximum | |||
Statutory Accounting Practices [Line Items] | |||
Percentage of profit appropriation made to reserve fund required amount of registered capital | 50.00% |
Related Party Balances and T108
Related Party Balances and Transactions - Summary of Related Parties and Relationship with the Group (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Xiaomi Communication Technology Co. Ltd.("Xiaomi Communication") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by one of the Company’s shareholders |
Hefei HuaHeng Electronic Technology Co. Ltd.("Hefei Huaheng") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by one of the Company’s shareholders |
Xiaomi Technology Co. Ltd. ("Xiaomi Technology") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by one of the Company’s shareholders |
Beijing Xiaomi Mobile Software Co. Ltd. ("Xiaomi Mobile") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by one of the Company’s shareholders |
Guangzhou Xiaomi Information Service Co. Ltd. ("Xiaomi Information") collectively with Xiaomi Communication, Xiaomi Technology, Xiaomi Mobile, "Xiaomi") behind "Xiaomi Information | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by one of the Company’s shareholders |
Hefei LianRui Microelectronics Technology Co. Ltd. ("Hefei Lianrui") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Long-term investee of the Group |
Hangzhou Aqi Vision Technology Co. Ltd.("Hangzhou Aqi") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Long-term investee of the Group |
Xi'an Haidao Information Technology Co. Ltd.("Haidao") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by one of the Company’s shareholders |
Heifei Huaying Xingzhi Fund Partnership.(limited partship)("Huaying Fund") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Long-term investee of the Group |
Shunwei Hitech Limited("Shunwei") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | One of the Company’s shareholder |
Related Party Balances and T109
Related Party Balances and Transactions - Summary of Amount Due from/to Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Amount due from related parties: | |||
Amounts due from related parties | ¥ 578,454 | $ 88,907 | ¥ 476,698 |
Amount due to related parties, current: | |||
Amount due to related parties, current | (8,143) | (1,252) | (23,500) |
Amount due to related party, non-current: | |||
Amount due to related party, non-current | (3,076) | $ (473) | |
Xiaomi Communication | |||
Amount due from related parties: | |||
Amounts due from related parties | 566,732 | 457,100 | |
Hefei HuaHeng | |||
Amount due from related parties: | |||
Amounts due from related parties | 42 | ||
Xiaomi Mobile | |||
Amount due from related parties: | |||
Amounts due from related parties | 3,485 | ||
Amount due to related parties, current: | |||
Amount due to related parties, current | (4,752) | ||
Xiaomi Information | |||
Amount due from related parties: | |||
Amounts due from related parties | 908 | ||
Hefei LianRui | |||
Amount due from related parties: | |||
Amounts due from related parties | 2,571 | 10,571 | |
Hangzhou Aqi Vision Technology Co. Ltd.("Hangzhou Aqi") | |||
Amount due from related parties: | |||
Amounts due from related parties | 3,000 | 3,000 | |
Haidao | |||
Amount due from related parties: | |||
Amounts due from related parties | 2,500 | 2,500 | |
Other | |||
Amount due from related parties: | |||
Amounts due from related parties | 2,743 | ||
Shunwei | |||
Amount due to related parties, current: | |||
Amount due to related parties, current | (8,500) | ||
Xiaomi Technology | |||
Amount due to related parties, current: | |||
Amount due to related parties, current | (330) | ||
Huaying Fund | |||
Amount due to related parties, current: | |||
Amount due to related parties, current | (3,061) | ¥ (15,000) | |
Amount due to related party, non-current: | |||
Amount due to related party, non-current | ¥ (3,076) |
Related Party Balances and T110
Related Party Balances and Transactions - Summary of Sales to Related Parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Sales to related parties | ¥ 1,778,640 | ¥ 1,449,927 | ¥ 876,736 |
Xiaomi Communication | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 1,773,595 | 1,448,960 | |
Xiaomi Technology | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 2,072 | 711 | 872,890 |
Hefei HuaHeng | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 730 | ¥ 256 | ¥ 3,846 |
Xiaomi Mobile | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 925 | ||
Xiaomi Information | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | ¥ 1,318 |
Related Party Balances and T111
Related Party Balances and Transactions - Summary of Others to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | ||
Loan provided to related parties | $ (8,000) | $ 16,071 |
Investments disposed to a related party | $ 22,047 |
Related Party Balances and T112
Related Party Balances and Transactions - Summary of Amount Due from/to Related Parties (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2017CNY (¥) | Dec. 31, 2017CNY (¥)Investment | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Aug. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Withholding tax receivables from certain management | ¥ 1,471 | ||||
Amount due to a related party | ¥ 8,143 | $ 1,252 | ¥ 23,500 | ||
Huaying Fund | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 49.50% | ||||
Interest rate | 4.35% | ||||
Number of long-term investments disposed | Investment | 5 | ||||
Unpaid Capital | Huaying Fund | |||||
Related Party Transaction [Line Items] | |||||
Amount due to a related party | ¥ 3,061 | ¥ 15,000 | |||
Loan | Huaying Fund | |||||
Related Party Transaction [Line Items] | |||||
Amount due to a related party, non-current | ¥ 3,076 | ||||
Hefei LianRui Microelectronics Technology Co. Ltd. ("Hefei Lianrui") | |||||
Related Party Transaction [Line Items] | |||||
Debt conversion amount to equity investment | ¥ 8,000 |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Summary of Profit Attributable to Owners (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | |
Basic net (loss)/income per share calculation Numerator: | ||||
Net (loss)/income for the year attributable to the Company: | ¥ 167,682 | $ 25,771 | ¥ 23,946 | ¥ (37,853) |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 80,291 | 12,341 | ||
Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic | ¥ 46,120 | $ 7,087 | ¥ (12,122) | ¥ (61,250) |
Denominator: | ||||
Ordinary share - basic | shares | 67,777,592 | 67,777,592 | 55,612,626 | 50,038,279 |
Basic (loss)/income per ordinary share | (per share) | ¥ 0.68 | $ 0.10 | ¥ (0.22) | ¥ (1.22) |
Diluted net (loss)/income per share calculation | ||||
Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic | ¥ 46,120 | $ 7,087 | ¥ (12,122) | ¥ (61,250) |
Add: adjustments to undistributed earnings to participating securities | 3,519 | |||
Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic | ¥ 49,639 | ¥ (12,122) | ¥ (61,250) | |
Denominator: | ||||
Ordinary share - basic | shares | 67,777,592 | 67,777,592 | 55,612,626 | 50,038,279 |
Effect of potentially diluted stock options, restricted stocks and RSUs | shares | 8,514,309 | 8,514,309 | ||
Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares—dilute | shares | 76,291,901 | 76,291,901 | 55,612,626 | 50,038,279 |
Diluted (loss)/income per ordinary share | (per share) | ¥ 0.65 | $ 0.10 | ¥ (0.22) | ¥ (1.22) |
Series A Preferred Shares | ||||
Basic net (loss)/income per share calculation Numerator: | ||||
Less: Accretion of Shares | ¥ 3,762 | $ 578 | ¥ 3,209 | ¥ 4,799 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 48,753 | |||
Series B-1 Preferred Shares | ||||
Basic net (loss)/income per share calculation Numerator: | ||||
Less: Accretion of Shares | 3,127 | 481 | 2,738 | 1,222 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 1,361 | |||
Series B-2 Preferred Shares | ||||
Basic net (loss)/income per share calculation Numerator: | ||||
Less: Accretion of Shares | 34,382 | $ 5,284 | ¥ 30,121 | ¥ 17,376 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 14,220 | |||
Restricted Shares | ||||
Basic net (loss)/income per share calculation Numerator: | ||||
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | ¥ 15,957 |
Net (Loss) Income Per Share 114
Net (Loss) Income Per Share - Summary of Anti-dilutive Securities Excluded from Calculation of Diluted Net (Loss) Income Per Ordinary Shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Issuable Upon Exercise of Share Options, Restricted Stocks and RSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from calculation of diluted net (loss) income per ordinary shares | 12,683,366 | 11,891,695 | 11,545,297 |
Shares Issuable Upon Vesting of Nonvested Restricted Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from calculation of diluted net (loss) income per ordinary shares | 23,450,173 | 34,175,372 | 45,893,191 |
Shares Issuable Upon Conversion of Series A Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from calculation of diluted net (loss) income per ordinary shares | 71,641,792 | 71,641,792 | 71,641,792 |
Shares Issuable Upon Conversion of Series B-1 Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from calculation of diluted net (loss) income per ordinary shares | 2,000,000 | 2,000,000 | 1,347,945 |
Shares Issuable Upon Conversion of Series B-2 Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from calculation of diluted net (loss) income per ordinary shares | 20,895,523 | 20,895,523 | 14,083,010 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments under Lease Commitments (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | ¥ 7,490 |
2019 and after | 1,930 |
Future minimum payments under lease commitments | ¥ 9,420 |
Commitments and Contingencie116
Commitments and Contingencies - Schedule of Future Minimum Capital Commitments Under Non-cancellable Construction and Investments (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Purchase of Property, Plant and Equipment | |
Long Term Purchase Commitment [Line Items] | |
Capital commitment for the purchase of property, plant and equipment | ¥ 423,441 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event - USD ($) $ in Thousands | Mar. 13, 2018 | Feb. 07, 2018 | Feb. 28, 2018 | Mar. 31, 2018 |
Subsequent Event [Line Items] | ||||
Proceeds from public offering | $ 110,000 | |||
Class B Ordinary Shares | ||||
Subsequent Event [Line Items] | ||||
Number of preferred shares issued | 12,064,825 | |||
American Depositary Shares | Green Shoe | ||||
Subsequent Event [Line Items] | ||||
Number of preferred shares issued | 400,000 | |||
Number of shares converted | 1,100,000 | |||
2018 Share Incentive Plan | Share Options | ||||
Subsequent Event [Line Items] | ||||
Share options granted | 3,489,469 |
Financial Statement Schedule118
Financial Statement Schedule I Condensed Financial Information of Parent Company - BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 366,336 | $ 56,305 | ¥ 153,152 | |||
Prepaid expenses and other current assets | 51,062 | 7,847 | 8,678 | |||
Amounts due from related parties | 578,454 | 88,907 | 476,698 | |||
Total current assets | 1,295,360 | 199,093 | 859,843 | |||
Total assets | 1,465,517 | 225,246 | 972,896 | |||
Current liabilities: | ||||||
Accrued expense and other current liabilities | 93,798 | 14,416 | 47,623 | |||
Amount due to related parties | 8,143 | 1,252 | 23,500 | |||
Total current liabilities | 877,249 | 134,831 | 634,370 | |||
Total liabilities | 887,735 | 136,443 | 634,370 | |||
Mezzanine equity | ||||||
Total mezzanine equity | 349,618 | 53,734 | 308,347 | |||
Equity | ||||||
Ordinary shares (US$0.0001 par value; 405,462,685 shares authorized as of December 31, 2016 and 17; 91,169,327 and 91,304,327 shares issued and outstanding as of December 31, 2016 and 2017, respectively) | 56 | 9 | 56 | |||
Additional paid-in capital | 72,427 | 11,132 | 50,822 | |||
Accumulated (deficit)/ retained earnings | 131,192 | 20,164 | (36,490) | |||
Accumulated other comprehensive income | 22,100 | 3,397 | 15,791 | |||
Total equity | 228,164 | 35,069 | 30,179 | ¥ (21,023) | ¥ (6,523) | |
Total liabilities, mezzanine equity and equity | 1,465,517 | 225,246 | 972,896 | |||
Series A Preferred Shares | ||||||
Mezzanine equity | ||||||
Total mezzanine equity | 26,770 | 4,114 | 23,008 | |||
Series B-1 Preferred Shares | ||||||
Mezzanine equity | ||||||
Total mezzanine equity | 26,906 | 4,135 | 23,779 | |||
Series B-2 Preferred Shares | ||||||
Mezzanine equity | ||||||
Total mezzanine equity | 295,942 | 45,485 | 261,560 | |||
Parent Company | ||||||
Current assets: | ||||||
Cash and cash equivalents | 34,470 | 5,298 | 40,518 | $ 6,228 | ¥ 159,861 | |
Prepaid expenses and other current assets | 14,284 | 2,195 | ||||
Amounts due from related parties | 101,624 | 15,619 | 123,270 | |||
Total current assets | 150,378 | 23,112 | 163,788 | |||
Investments in subsidiaries | 435,085 | 66,871 | 183,265 | |||
Total assets | 585,463 | 89,983 | 347,053 | |||
Current liabilities: | ||||||
Accrued expense and other current liabilities | 10,070 | 1,547 | 27 | |||
Amount due to related parties | 8,500 | |||||
Total current liabilities | 10,070 | 1,547 | 8,527 | |||
Total liabilities | 10,070 | 1,547 | 8,527 | |||
Mezzanine equity | ||||||
Total mezzanine equity | 349,618 | 53,734 | 308,347 | |||
Equity | ||||||
Ordinary shares (US$0.0001 par value; 405,462,685 shares authorized as of December 31, 2016 and 17; 91,169,327 and 91,304,327 shares issued and outstanding as of December 31, 2016 and 2017, respectively) | 56 | 9 | 56 | |||
Additional paid-in capital | 72,427 | 11,132 | 50,822 | |||
Accumulated (deficit)/ retained earnings | 131,192 | 20,164 | (36,490) | |||
Accumulated other comprehensive income | 22,100 | 3,397 | 15,791 | |||
Total equity | 225,775 | 34,702 | 30,179 | |||
Total liabilities, mezzanine equity and equity | 585,463 | 89,983 | 347,053 | |||
Parent Company | Series A Preferred Shares | ||||||
Mezzanine equity | ||||||
Total mezzanine equity | 26,770 | 4,114 | 23,008 | |||
Parent Company | Series B-1 Preferred Shares | ||||||
Mezzanine equity | ||||||
Total mezzanine equity | 26,906 | 4,135 | 23,779 | |||
Parent Company | Series B-2 Preferred Shares | ||||||
Mezzanine equity | ||||||
Total mezzanine equity | ¥ 295,942 | $ 45,485 | ¥ 261,560 |
Financial Statement Schedule119
Financial Statement Schedule I Condensed Financial Information of Parent Company - BALANCE SHEETS (Parenthetical) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017$ / shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016$ / shares | Apr. 30, 2015shares |
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, authorized | 405,462,685 | 405,462,685 | |||
Ordinary shares, issued | 91,304,327 | 91,169,327 | |||
Ordinary shares, outstanding | 91,304,327 | 91,169,327 | |||
Series B-2 Preferred Shares | |||||
Mezzanine equity, issued | 20,895,523 | ||||
Parent Company | |||||
Ordinary shares, par value | $ / shares | 0.0001 | 0.0001 | |||
Ordinary shares, authorized | 405,462,685 | 405,462,685 | |||
Ordinary shares, issued | 91,304,327 | 91,169,327 | |||
Ordinary shares, outstanding | 91,304,327 | 91,169,327 | |||
Parent Company | Series A Preferred Shares | |||||
Mezzanine equity, par value | $ / shares | 0.0001 | 0.0001 | |||
Mezzanine equity, authorized | 71,641,792 | 71,641,792 | |||
Mezzanine equity, issued | 71,641,792 | 71,641,792 | |||
Mezzanine equity, outstanding | 71,641,792 | 71,641,792 | |||
Mezzanine equity, liquidation value | ¥ | ¥ 24,870 | ¥ 24,870 | |||
Parent Company | Series B-1 Preferred Shares | |||||
Mezzanine equity, par value | $ / shares | 0.0001 | 0.0001 | |||
Mezzanine equity, authorized | 2,000,000 | 2,000,000 | |||
Mezzanine equity, issued | 2,000,000 | 2,000,000 | |||
Mezzanine equity, outstanding | 2,000,000 | 2,000,000 | |||
Mezzanine equity, liquidation value | ¥ | ¥ 33,188 | ¥ 33,188 | |||
Parent Company | Series B-2 Preferred Shares | |||||
Mezzanine equity, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||
Mezzanine equity, authorized | 20,895,523 | 20,895,523 | |||
Mezzanine equity, issued | 20,895,523 | 20,895,523 | |||
Mezzanine equity, outstanding | 20,895,523 | 20,895,523 | |||
Mezzanine equity, liquidation value | ¥ | ¥ 364,145 | ¥ 364,145 |
Financial Statement Schedule120
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF OPERATIONS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Operating expenses: | ||||
General and administrative | ¥ 114,880 | $ 17,657 | ¥ 102,644 | ¥ 69,984 |
Research and development | 153,827 | 23,643 | 132,304 | 61,553 |
Total operating expenses | 312,733 | 48,067 | 262,769 | 150,705 |
Operating loss | 181,969 | 27,968 | 13,383 | (40,114) |
Net (loss)/income | 167,095 | 25,681 | 23,946 | (37,853) |
Parent Company | ||||
Operating expenses: | ||||
General and administrative | 57,898 | 8,899 | 54,916 | 48,529 |
Research and development | 6,984 | 1,073 | 2,626 | 2,589 |
Total operating expenses | 64,882 | 9,972 | 57,542 | 51,118 |
Operating loss | (64,882) | (9,972) | (57,542) | (51,118) |
Equity in earnings of subsidiaries and VIEs | 232,564 | 35,743 | 81,488 | 13,265 |
Net (loss)/income | ¥ 167,682 | $ 25,771 | ¥ 23,946 | ¥ (37,853) |
Financial Statement Schedule121
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Net (loss)/income | ¥ 167,682 | $ 25,771 | ¥ 23,946 | ¥ (37,853) |
Other comprehensive (loss)/income, net of tax | ||||
Exchange differences arising on translation | (3,175) | 5,262 | 10,226 | |
Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, nil and RMB 1,554 for years ended December 31, 2015, 2016 and 2017, respectively) | 9,484 | 1,458 | 303 | |
Comprehensive (loss)/income attributable to Huami Corporation | 173,991 | 26,741 | 29,511 | (27,627) |
Parent Company | ||||
Net (loss)/income | 167,682 | 25,771 | 23,946 | (37,853) |
Other comprehensive (loss)/income, net of tax | ||||
Exchange differences arising on translation | (3,175) | (488) | 5,262 | 10,226 |
Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, nil and RMB 1,554 for years ended December 31, 2015, 2016 and 2017, respectively) | 9,484 | 1,458 | 303 | |
Comprehensive (loss)/income attributable to Huami Corporation | ¥ 173,991 | $ 26,741 | ¥ 29,511 | ¥ (27,627) |
Financial Statement Schedule122
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unrealized gain on available-for-sale investments and others, tax effect | ¥ 1,554 | ¥ 0 | ¥ 0 |
Parent Company | |||
Unrealized gain on available-for-sale investments and others, tax effect | ¥ 1,554 | ¥ 0 | ¥ 0 |
Financial Statement Schedule123
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF CASH FLOW (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash Flow from Operating Activities | ||||
Net (loss)/income | ¥ 167,682 | $ 25,771 | ¥ 23,946 | ¥ (37,853) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Share-based compensation | 62,787 | 9,650 | 57,735 | 55,991 |
Changes in operating assets and liabilities | ||||
Prepaid expenses and other current assets | (32,985) | (5,069) | 6,691 | (9,888) |
Accrued expense and other current liabilities | 45,572 | 7,005 | 28,761 | 16,043 |
Cash Flow from Investing Activities | ||||
Amount due from related parties | (109,756) | (16,869) | (287,661) | (128,478) |
Cash Flow from Financing Activities | ||||
Exercise of share options | 89 | 13 | 24 | |
Repurchase of ordinary shares | (19,467) | |||
Cash and cash equivalents at beginning of the year | 153,152 | |||
Cash and cash equivalents at end of the year | 366,336 | 56,305 | 153,152 | |
Shares Issuable Upon Conversion of Series B-1 Shares | ||||
Cash Flow from Financing Activities | ||||
Proceeds received from issuance of preferred shares | 19,467 | |||
Parent Company | ||||
Cash Flow from Operating Activities | ||||
Net (loss)/income | 167,682 | 25,771 | 23,946 | (37,853) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Equity in earnings of subsidiaries | (232,564) | (35,743) | (81,488) | (13,265) |
Share-based compensation | 62,787 | 9,650 | 57,736 | 56,343 |
Changes in operating assets and liabilities | ||||
Prepaid expenses and other current assets | (14,284) | (2,195) | ||
Accrued expense and other current liabilities | 10,043 | 1,544 | 2 | 26 |
Amount due to a related party | (8,500) | (1,307) | 7,957 | |
Net Cash provided by (used in) Operating Activities | (14,836) | (2,280) | 196 | 13,208 |
Cash Flow from Investing Activities | ||||
Investment in subsidiaries | (9,772) | (1,502) | (2,400) | (77,636) |
Amount due from related parties | 21,646 | 3,326 | (122,728) | |
Net Cash (used in) provided by Investing Activities | 11,874 | 1,824 | (125,128) | (77,636) |
Cash Flow from Financing Activities | ||||
Exercise of share options | 89 | 14 | 24 | |
Repurchase of ordinary shares | (19,467) | |||
Proceeds from issuance of preferred shares | 214,063 | |||
Net Cash provided by Financing Activities | 89 | 14 | 24 | 214,063 |
Net increase (decrease) in cash and cash equivalent | (2,873) | (442) | (124,908) | 149,635 |
Effect of exchange rate changes | (3,175) | (488) | 5,565 | 10,226 |
Cash and cash equivalents at beginning of the year | 40,518 | 6,228 | 159,861 | |
Cash and cash equivalents at end of the year | ¥ 34,470 | $ 5,298 | ¥ 40,518 | 159,861 |
Parent Company | Shares Issuable Upon Conversion of Series B-1 Shares | ||||
Cash Flow from Financing Activities | ||||
Proceeds received from issuance of preferred shares | ¥ 19,467 |