Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | HMI |
Entity Registrant Name | Huami Corporation |
Entity Central Index Key | 0001720446 |
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 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Class A Ordinary Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 57,303,093 |
Class B Ordinary Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 184,376,679 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,441,802 | $ 209,701 | ¥ 366,336 |
Restricted cash | 10,010 | 1,456 | 3,185 |
Term deposit | 96,969 | 14,104 | |
Accounts receivable (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 58,925 | 8,570 | 32,867 |
Amounts due from related parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 656,399 | 95,469 | 578,454 |
Inventories | 484,622 | 70,485 | 249,735 |
Short-term investments | 50,482 | 7,342 | 13,721 |
Prepaid expenses and other current assets | 58,247 | 8,473 | 51,062 |
Total current assets | 2,857,456 | 415,600 | 1,295,360 |
Property, plant and equipment, net | 40,042 | 5,824 | 28,755 |
Intangible assets, net | 63,722 | 9,268 | 5,339 |
Goodwill | 5,930 | 862 | 5,930 |
Long-term investments | 208,949 | 30,390 | 85,238 |
Deferred tax assets | 75,032 | 10,913 | 41,895 |
Other non-current assets | 7,350 | 1,070 | 3,000 |
Total assets | 3,258,481 | 473,927 | 1,465,517 |
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Group of RMB671,942 and RMB1,059,676 as of December 31, 2017 and 2018, respectively) | 1,064,106 | 154,768 | 707,782 |
Advance from customers (including advance from customers of the consolidated VIEs without recourse to the Group of RMB10,683 and RMB5,930 as of December 31, 2017 and 2018, respectively) | 5,943 | 864 | 10,683 |
Amount due to related parties of the consolidated VIEs without recourse to the Group | 10,695 | 1,556 | 8,143 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Group of RMB62,042 and RMB159,736 as of December 31, 2017 and 2018, respectively) | 213,975 | 31,121 | 93,798 |
Income tax payables of the consolidated VIEs without recourse to the Group | 54,037 | 7,859 | 21,600 |
Notes payable of the consolidated VIEs without recourse to the Group | 18,936 | 2,754 | 5,243 |
Bank borrowings of the consolidated VIEs without recourse to the Group | 20,000 | 2,909 | 30,000 |
Total current liabilities | 1,387,692 | 201,831 | 877,249 |
Deferred tax liabilities of the consolidated VIEs without recourse to the Group | 4,962 | 722 | 2,470 |
Amount due to a related party, non-current of the consolidated VIEs without recourse to the Group | 3,076 | ||
Other non-current liabilities of the consolidated VIEs without recourse to the Group | 56,249 | 8,181 | 4,940 |
Total liabilities | 1,448,903 | 210,734 | 887,735 |
Mezzanine equity | |||
Total mezzanine equity | 349,618 | ||
Commitments and contingencies (Note 24) | |||
Equity | |||
Ordinary shares | 56 | ||
Additional paid-in capital | 1,373,577 | 199,779 | 72,427 |
Accumulated retained earnings | 340,046 | 49,457 | 131,192 |
Accumulated other comprehensive income | 97,141 | 14,129 | 22,100 |
Total Huami Corporation shareholders’ equity | 1,810,915 | 263,387 | 225,775 |
Noncontrolling interest | (1,337) | (194) | 2,389 |
Total equity | 1,809,578 | 263,193 | 228,164 |
Total liabilities, mezzanine equity and equity | 3,258,481 | 473,927 | 1,465,517 |
Series A Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 26,770 | ||
Series B-1 Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 26,906 | ||
Series B-2 Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | ¥ 295,942 | ||
Class A Ordinary Shares | |||
Equity | |||
Ordinary shares | 36 | 5 | |
Class B Ordinary Shares | |||
Equity | |||
Ordinary shares | ¥ 115 | $ 17 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017$ / shares |
Accounts receivable, allowance | ¥ | ¥ 0 | ¥ 0 | ||
Amounts due from related parties, allowance | ¥ | 0 | 0 | ||
Accounts payable | 1,064,106 | $ 154,768 | 707,782 | |
Advance from customers | 5,943 | 864 | 10,683 | |
Accrued expenses and other current liabilities | ¥ 213,975 | $ 31,121 | ¥ 93,798 | |
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized | 0 | 0 | 405,462,685 | |
Ordinary shares, issued | 0 | 0 | 91,304,327 | |
Ordinary shares, outstanding | 0 | 0 | 91,304,327 | |
Series A Preferred Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Mezzanine equity, authorized | 71,641,792 | |||
Mezzanine equity, issued | 0 | 0 | 71,641,792 | |
Mezzanine equity, outstanding | 0 | 0 | 71,641,792 | |
Mezzanine equity, liquidation value | ¥ | ¥ 0 | ¥ 24,870 | ||
Series B-1 Preferred Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Mezzanine equity, authorized | 0 | 0 | 2,000,000 | |
Mezzanine equity, issued | 0 | 0 | 2,000,000 | |
Mezzanine equity, outstanding | 0 | 0 | 2,000,000 | |
Mezzanine equity, liquidation value | ¥ | ¥ 0 | ¥ 33,188 | ||
Series B-2 Preferred Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Mezzanine equity, authorized | 0 | 0 | 20,895,523 | |
Mezzanine equity, issued | 0 | 0 | 20,895,523 | |
Mezzanine equity, outstanding | 0 | 0 | 20,895,523 | |
Mezzanine equity, liquidation value | ¥ | ¥ 0 | ¥ 364,145 | ||
Class A Ordinary Shares | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Ordinary shares, authorized | 9,800,000,000 | 9,800,000,000 | 0 | |
Ordinary shares, issued | 57,303,093 | 57,303,093 | 0 | |
Ordinary shares, outstanding | 57,303,093 | 57,303,093 | 0 | |
Class B Ordinary Shares | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized | 200,000,000 | 200,000,000 | 0 | |
Ordinary shares, issued | 184,376,679 | 184,376,679 | 0 | |
Ordinary shares, outstanding | 184,376,679 | 184,376,679 | 0 | |
Variable Interest Entities | ||||
Accounts payable | ¥ | ¥ 1,059,676 | ¥ 671,942 | ||
Advance from customers | ¥ | 5,930 | 10,683 | ||
Accrued expenses and other current liabilities | ¥ | ¥ 159,736 | ¥ 62,042 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Revenues (including RMB1,449,927, RMB1,778,640 and RMB 2,816,995 with related parties for the years ended December 31, 2016, 2017 and 2018, respectively) | ¥ 3,645,335 | $ 530,192 | ¥ 2,048,896 | ¥ 1,556,476 |
Cost of revenues (including RMB1,198,295, RMB1,355,493 and RMB2,141,123 with related parties for the years ended December 31, 2016, 2017 and 2018, respectively) | 2,705,885 | 393,555 | 1,554,194 | 1,280,324 |
Gross profit | 939,450 | 136,637 | 494,702 | 276,152 |
Operating expenses | ||||
Selling and marketing | 96,538 | 14,041 | 44,026 | 27,821 |
General and administrative | 213,973 | 31,121 | 114,880 | 102,644 |
Research and development | 263,220 | 38,284 | 153,827 | 132,304 |
Total operating expenses | 573,731 | 83,446 | 312,733 | 262,769 |
Operating income | 365,719 | 53,191 | 181,969 | 13,383 |
Other income and expenses | ||||
Interest income | 11,595 | 1,686 | 3,003 | 754 |
Realized gain from investments | 261 | 38 | 2,373 | |
Gain from fair value change of long-term investments | 7,860 | 1,143 | ||
Impairment loss from long-term investments | 7,590 | 1,104 | ||
Other income, net | 8,768 | 1,275 | 4,555 | 14,726 |
Income before income tax and (loss)/income from equity method investments | 386,613 | 56,229 | 191,900 | 28,863 |
Provision for income taxes | (52,036) | (7,568) | (27,611) | (3,088) |
Income before (loss)/income from equity method investments | 334,577 | 48,661 | 164,289 | 25,775 |
(Loss)/income from equity method investments | 1,743 | 254 | 2,806 | (1,829) |
Net income | 336,320 | 48,915 | 167,095 | 23,946 |
Less: Net loss attributable to noncontrolling interest | (3,726) | (542) | (587) | |
Net income attributable to Huami Corporation | 340,046 | 49,457 | 167,682 | 23,946 |
Less: Deemed dividend to preferred shareholders | 209,752 | 30,507 | ||
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 12,210 | 1,776 | 80,291 | |
Net (loss)/income attributable to ordinary shareholders of Huami Corporation | ¥ 113,490 | $ 16,505 | ¥ 46,120 | ¥ (12,122) |
Net (loss)/income per share attributable to ordinary shareholders of Huami Corporation | ||||
Basic (loss)/income per ordinary share | (per share) | ¥ 0.54 | $ 0.08 | ¥ 0.68 | ¥ (0.22) |
Diluted (loss)/income per ordinary share | (per share) | ¥ 0.51 | $ 0.07 | ¥ 0.65 | ¥ (0.22) |
Weighted average number of shares used in computing net (loss)/income per share | ||||
Ordinary share - basic | shares | 211,873,704 | 211,873,704 | 67,777,592 | 55,612,626 |
Ordinary share - diluted | shares | 225,034,650 | 225,034,650 | 76,291,901 | 55,612,626 |
Series A Preferred Shares | ||||
Other income and expenses | ||||
Accretion of Preferred Shares | ¥ 177 | $ 26 | ¥ 3,762 | ¥ 3,209 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 4,521 | 48,753 | ||
Series B-1 Preferred Shares | ||||
Other income and expenses | ||||
Accretion of Preferred Shares | 368 | 54 | 3,127 | 2,738 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 126 | 1,361 | ||
Series B-2 Preferred Shares | ||||
Other income and expenses | ||||
Accretion of Preferred Shares | 4,049 | $ 589 | 34,382 | ¥ 30,121 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | ¥ 1,319 | ¥ 14,220 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue from related parties | ¥ 2,816,995 | ¥ 1,778,640 | ¥ 1,449,927 |
Cost of revenue related parties | ¥ 2,141,123 | ¥ 1,355,493 | ¥ 1,198,295 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | ¥ 336,320 | $ 48,915 | ¥ 167,095 | ¥ 23,946 |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustment | 60,357 | 8,779 | (3,175) | 5,262 |
Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, RMB1,554 and RMB2,250 for years ended December 31, 2016, 2017 and 2018, respectively) | 14,684 | 2,136 | 9,484 | 303 |
Comprehensive income | 411,361 | 59,830 | 173,404 | 29,511 |
Less: Net loss attributable to noncontrolling interest | (3,726) | (542) | (587) | |
Comprehensive income attributable to Huami Corporation | ¥ 415,087 | $ 60,372 | ¥ 173,991 | ¥ 29,511 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized gain on available-for-sale investments and others, tax effect | ¥ 2,250 | ¥ 1,554 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Initial Public OfferingCNY (¥) | Series A Preferred SharesCNY (¥) | Series B Preferred SharesCNY (¥) | Ordinary SharesCNY (¥)shares | Ordinary SharesInitial Public OfferingCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalInitial Public OfferingCNY (¥) | Additional Paid-in CapitalSeries A Preferred SharesCNY (¥) | Additional Paid-in CapitalSeries B Preferred SharesCNY (¥) | Accumulated Other Comprehensive IncomeCNY (¥) | (Accumulated Deficit)/Retained EarningsCNY (¥) | Total Huami Corporation Shareholders' (Deficit)/EquityCNY (¥) | Total Huami Corporation Shareholders' (Deficit)/EquityInitial Public OfferingCNY (¥) | Total Huami Corporation Shareholders' (Deficit)/EquitySeries A Preferred SharesCNY (¥) | Total Huami Corporation Shareholders' (Deficit)/EquitySeries B Preferred SharesCNY (¥) | Noncontrolling InterestCNY (¥) |
Beginning Balance at Dec. 31, 2015 | ¥ (21,023) | ¥ 56 | ¥ 29,131 | ¥ 10,226 | ¥ (60,436) | ¥ (21,023) | ||||||||||||
Beginning 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 | 24 | 24 | |||||||||||||||
Exercise of option, shares | shares | 35,000 | |||||||||||||||||
Net income | 23,946 | 23,946 | 23,946 | |||||||||||||||
Foreign currency translation adjustment | 5,262 | 5,262 | 5,262 | |||||||||||||||
Share-based compensation | 57,735 | 57,735 | 57,735 | |||||||||||||||
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 | 167,095 | 167,682 | 167,682 | ¥ (587) | ||||||||||||||
Foreign currency translation adjustment | (3,175) | (3,175) | (3,175) | |||||||||||||||
Share-based compensation | 62,787 | 62,787 | 62,787 | |||||||||||||||
Noncontrolling interest arise from acquisition | 2,976 | 2,976 | ||||||||||||||||
Unrealized gain on available-for-sale investments | 9,484 | 9,484 | 9,484 | |||||||||||||||
Ending Balance at Dec. 31, 2017 | 228,164 | ¥ 56 | 72,427 | 22,100 | 131,192 | 225,775 | 2,389 | |||||||||||
Ending Balance, shares at Dec. 31, 2017 | shares | 91,304,327 | |||||||||||||||||
Accretion of preferred shares | ¥ (177) | ¥ (4,417) | ¥ (177) | ¥ (4,417) | ¥ (177) | ¥ (4,417) | ||||||||||||
Issuance of ordinary shares | ¥ 657,061 | ¥ 26 | ¥ 657,035 | ¥ 657,061 | ||||||||||||||
Issuance of ordinary shares, shares | shares | 41,600,000 | |||||||||||||||||
Conversion of participating convertible redeemable preferred shares to ordinary shares upon initial public offering | ¥ 354,212 | ¥ 60 | ¥ 354,152 | ¥ 354,212 | ||||||||||||||
Conversion of participating convertible redeemable preferred shares to ordinary shares upon initial public offering, shares | shares | 94,537,315 | |||||||||||||||||
Exercise of option and restricted shares | 3,486 | ¥ 2 | 3,484 | 3,486 | ||||||||||||||
Exercise of option and restricted shares, shares | shares | 2,661,305 | |||||||||||||||||
Net income | 336,320 | $ 48,915 | 340,046 | 340,046 | (3,726) | |||||||||||||
Foreign currency translation adjustment | 60,357 | 60,357 | 60,357 | |||||||||||||||
Share-based compensation | 134,709 | 134,709 | 134,709 | |||||||||||||||
Repurchase of ordinary shares | (8,157) | (8,157) | (8,157) | |||||||||||||||
Repurchase of ordinary shares | shares | (488,000) | |||||||||||||||||
Unrealized gain on available-for-sale investments | 14,684 | 2,136 | 14,684 | 14,684 | ||||||||||||||
Cumulative effect adjustment related to opening retained earnings for adoption of ASC 606 | 33,329 | 33,329 | 33,329 | |||||||||||||||
Deemed dividend related to issuance of ordinary shares to preferred shareholders | 7 | ¥ 7 | 164,521 | (164,521) | 7 | |||||||||||||
Deemed dividend related to issuance of ordinary shares to preferred shareholders, shares | shares | 12,064,825 | |||||||||||||||||
Ending Balance at Dec. 31, 2018 | ¥ 1,809,578 | $ 263,193 | ¥ 151 | ¥ 1,373,577 | ¥ 97,141 | ¥ 340,046 | ¥ 1,810,915 | ¥ (1,337) | ||||||||||
Ending Balance, shares at Dec. 31, 2018 | shares | 241,679,772 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN (DEFICIT) EQUITY (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Offering costs | $ 10,512 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash Flows from Operating Activities | ||||
Net income | ¥ 336,320 | $ 48,915 | ¥ 167,095 | ¥ 23,946 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property, plant and equipment | 5,773 | 840 | 3,542 | 2,399 |
Amortization of intangible assets | 443 | 65 | 175 | |
Write-off of short-term loans | 5,500 | 800 | ||
Impairment loss from long-term investments | 7,590 | 1,104 | ||
Inventory write-down | 0 | 2,449 | 1,037 | |
Share-based compensation | 134,709 | 19,592 | 62,787 | 57,735 |
Loss / (gain) from equity method investment | (1,743) | (254) | (2,806) | 1,829 |
Realized gain from investments | (261) | (38) | (2,373) | |
Loss on disposal of property, plant and equipment | 26 | 4 | 192 | |
Gain from fair value change of long-term investments | (7,860) | (1,143) | ||
Deferred income taxes | (32,895) | (4,784) | (18,962) | (18,468) |
Others | 295 | 43 | ||
Changes in operating assets and liabilities | ||||
Accounts receivable | (26,058) | (3,790) | (13,158) | 2,218 |
Inventories | (234,887) | (34,163) | (57,609) | (103,464) |
Prepaid expenses and other current assets | (5,748) | (836) | (32,985) | 6,691 |
Amount due from related parties | (45,116) | (6,562) | (109,756) | (287,661) |
Other non-current assets | (3,150) | (458) | ||
Amount due to related parties | 5,757 | 837 | (281) | |
Accounts payable | 356,324 | 51,825 | 181,628 | 271,999 |
Notes payable | 13,693 | 1,992 | 2,581 | 2,662 |
Advance from customers | (4,740) | (689) | 4,333 | 5,885 |
Income tax payable | 32,437 | 4,718 | 972 | 21,697 |
Accrued expense and other current liabilities | 119,887 | 17,436 | 45,572 | 28,761 |
Other non-current liability | 51,309 | 7,463 | 4,940 | |
Net Cash provided by Operating Activities | 707,605 | 102,917 | 238,336 | 17,266 |
Cash Flows from Investing Activities | ||||
Purchase of property, plant and equipment | (17,136) | (2,492) | (21,454) | (10,274) |
Prepayment for other non-current assets | (3,000) | |||
Purchase of intangible assets | (52,017) | (7,566) | (88) | (1,223) |
Cash received from the disposal of property, plant and equipment | 65 | 10 | 164 | |
Purchase of term deposits | (385,028) | (56,000) | ||
Proceeds from maturity of term deposits | 288,771 | 42,000 | ||
Purchase of business, net of cash acquired of RMB3,475 | 2,323 | |||
Loans provided to related parties | (5,000) | (727) | (16,071) | |
Loans provided to third-parties | (8,920) | (1,297) | (12,857) | |
Proceeds received from loans provided to third-parties | 5,578 | 811 | 1,000 | |
Purchase of short-term investments | (41,300) | (6,007) | (6,506) | (8,937) |
Purchase of long-term investments | (109,854) | (15,978) | (23,610) | (62,882) |
Disposal of short-term investments | 2,062 | |||
Disposal of long-term investments | 23,085 | |||
Net Cash Used in Investing Activities | (324,841) | (47,246) | (38,881) | (99,387) |
Cash Flows from Financing Activities | ||||
Loans repaid to related party | (3,221) | (468) | ||
Exercise of share options and restricted shares | 3,486 | 506 | 89 | 24 |
Bank borrowings | 20,000 | 2,908 | 30,000 | 10,000 |
Repayment of bank borrowing | (30,000) | (4,363) | (10,000) | |
Net proceeds from initial public offering | 657,062 | 95,566 | ||
Repurchase of ordinary shares | (8,157) | (1,186) | ||
Net Cash Provided by Financing Activities | 639,170 | 92,963 | 20,089 | 10,024 |
Net (decrease) increase in cash and cash equivalents and restricted cash | 1,021,934 | 148,634 | 219,544 | (72,097) |
Effect of exchange rate changes | 60,357 | 8,779 | (3,175) | 5,262 |
Cash and cash equivalents and restricted cash at beginning of year | 369,521 | 53,744 | 153,152 | 219,987 |
Cash and cash equivalents and restricted cash at end of the year | 1,451,812 | 211,157 | 369,521 | 153,152 |
Supplemental disclosure of cash flow information | ||||
Income tax paid | 52,063 | 7,572 | 35,892 | 9,599 |
Interest paid | 1,310 | 191 | 1,997 | |
Non-cash investing and financing activity | ||||
Payable for long-term investment | 275 | 40 | ¥ 15,000 | |
Conversion from loan to long-term investment | 8,000 | |||
Non-monetary exchange of convertible bond to intangible assets | 7,104 | 1,033 | ||
Payable for property, plant and equipment | 15 | 2 | ¥ 264 | |
Conversion of preferred shares to ordinary shares | 354,212 | 51,518 | ||
Deemed dividend related to issuance of ordinary shares to preferred shareholders | ¥ 209,752 | $ 30,507 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Statement Of Cash Flows [Abstract] | |
Purchase of business, cash acquired | ¥ 3,475 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2018 | |
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”), Huami (Beijing) Information Technology Co., Ltd. (“Beijing Huami”), and Anhui Huami's subsidiaries, 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, 2016, 2017 and 2018, the Group derived over 65% 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, 2018, 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”) U.S. June 16, 2016 100% DingShow Cayman Islands October 10, 2018 100% Bitinno Technologies Inc. ("Bitinno") U.S. November 26, 2018 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 Oclean Information Technology Co., Ltd. ("HK Yunding") HK March 7, 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 chief executive officer ("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 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 29.5% of the total common shares as of December 31, 2018. 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. 1. ORGANAZATION AND PRINCIPAL ACTIVITIES - continued Risks in relation to VIE structure – continued 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. 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. 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, 2017 2018 RMB RMB Total current assets 1,178,273 2,202,009 Total non-current assets 129,588 191,522 Total assets 1,307,861 2,393,531 Total current liabilities 809,653 1,329,010 Total non-current liabilities 10,486 61,211 Total liabilities 820,139 1,390,221 For the years ended December 31, 2016 2017 2018 RMB RMB RMB Revenues 1,552,340 2,042,640 3,638,560 Net income 269,162 327,101 643,239 For the years ended December 31, 2016 2017 2018 RMB RMB RMB Net cash provided by operating activities 15,316 248,642 712,210 Net cash used in investing activities (81,954 ) (19,643 ) (72,862 ) Net cash provided by financing activities 17,500 20,000 (13,221 ) The intercompany payable between Anhui Huami and Shunyuan were RMB 44,420 RMB68,713 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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. 2. SIGNIFICANT ACCOUNTING POLICIES - continued 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, impairment of goodwill, product warranties, fair value measurement of ordinary shares and preferred shares, fair value measurement of long-term available-for-sale investments and long-term investments of non-marketable equity securities with fair value change through profit or loss, 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, 2017 and 2018. Measured fair value on a nonrecurring basis The Group measured the fair value of the intangible assets acquired through non-monetary exchange at fair value. The fair values was determined using models with significant unobservable inputs (Level 3 inputs). The Group used 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 the 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 for the fair value measurement of intangible assets. 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 acquired intangible assets arising from acquisitions during the years ended December 31, 2016, 2017 and 2018. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Measured fair value on a nonrecurring basis – continued 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 the carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. 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 recognize any impairment loss related to goodwill during the year ended December 31, 2016, 2017 and 2018. For equity investments without readily determinable fair values for which the Company elected to use the measurement alternative starting in 2018, the equity investment is measured at fair value on a nonrecurring basis when there is an orderly transaction for identical or similar investments of the same issuer. Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, term deposit, 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, term deposit, 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. 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 40% or 60% 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 as of December 31, 2017 and 2018. Term deposit Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months and less than one year. Accounts receivable Accounts receivable represents those receivables derived in the ordinary course of business, net of allowance for doubtful accounts. 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. As of December 31, 2017 and 2018, the Company recorded nil allowance for doubtful account. 2. SIGNIFICANT ACCOUNTING POLICIES - continued 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, 2016, 2017 and 2018, inventory write-down amounted to RMB1,037, RMB2,449 and nil, respectively. Short-term investments Short-term investments are mainly consist of investment in convertible bonds with a maturity of less than one year. These investments are accounted for as available-for-sale investments and measured at fair value. 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. 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 assets, net Acquired intangible assets other than goodwill consist of the domain name for the Company’s website www.huami.com, trademark and patents. 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 trademark and patents 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 combination. Goodwill is not amortized but is tested for impairment annually or more frequently if events on changes in circumstance indicate that it might be impaired. 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. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Goodwill – continued 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 and 2018, the Group recognized nil impairment loss on goodwill. Long-term investments The Group’s long-term investments consist of equity securities without readily determinable fair value, equity method investments and available-for-sale securities investments. (a) Equity securities without readily determinable fair value On January 1, 2018, the Group adopted Accounting Standards Update ("ASU") No. 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and 2018-03 Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Prior to 2018, for investee companies over which the Group does not have significant influence or a controlling interest, equity securities without determinable fair value were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. Starting in 2018, these securities are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. (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. 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. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Long-term investments – continued 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 recorded nil, nil and RMB4,133 impairment losses on its equity method investments during the years ended December 31, 2016, 2017 and 2018. (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 available for sale 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 recorded nil, nil and RMB3,457 impairment losses on its available- for-sale investments during the years ended December 31, 2016, 2017 and 2018, respectively. 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. Revenue recognition On January 1, 2018, the Group adopted Accounting Standards Update (ASU) 2014-09, Revenue Contracts with Customers (Topic 606), "Topic 606" applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Please see the newly adopted accounting pronouncement for detail regarding the impact on the Group's financial statements that arise from the adoption. Nature of Goods and Services 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. For the year ended December 31, 2018, the Group generated 66.9% of revenue from one customer for sales of exclusively designed and manufactured smart wearable devices and 33.1% of revenue from sales of the Group's self-branded products and others. Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services. The Group recognizes revenue, net of estimated sales returns and value-added taxes ("VAT"). The Group has determined that its contracts with its customers include multiple performance obligations that the Group accounts for separately as those are distinct from other items in the contract. The first performance obligation is the smart wearable device and embedded firmware that is essential to the functionality of the device, which the customer can benefit from it on its own or with other resources that are readily available to the customer. The second performance obligation 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 performance obligation 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 – continued. The Group allocates the transaction price to all performance obligations based on their relative standalone selling prices. The standalone selling prices are determined based on the expected cost plus margin as the Group determined that no observable price is available for any of its performance obligation. The Group considered multiple factors in the process of determining its cost plus margin including consumer behaviours and the Group’s internal pricing model. The cost plus margin estimated selling price for the smart and wearable devices comprised the majority of the transaction. The cost plus margin estimated selling price for the software services and software upgrades was estimated from RMB1.77 to RMB5.68 per unit for the year ended December 31, 2018. The Group recognizes revenue for the amounts allocated to the connected smart and wearable devices when the customer obtains control of the Group's product, which occurs at a point of time, typically upon delivery to the reseller and acceptance by the reseller, who has been identified as the customer of the Group. Amounts allocated to the software services and unspecified upgrade rights are deferred and recognized over time as the customer simultaneously receives and consumes the benefit over an estimated nine-month period. Sales of self-branded products and others For the year ended December 31, 2018, the Group generated 33.1% of revenues from sales of the Group's self-branded products and others to retailers, distributors and end users. The Group’s revenue recognition for its self-branded products was consistent with that described in the preceding paragraphs. Cooperation agreement with one customer For the year ended December 31, 2018, the Group generated 66.9% of revenues from one customer for sales of exclusively designed and manufactured smart wearable devices. That customer is also the sole distributor for such smart wearable devices and is one of our shareholders (see Note 22). Under the cooperation agreement with this customer, the Group produces and assembles final product for shipments of wearable devices to that customer, who are then responsible for commercial distribution and sale of the product. The arrangement includes two payment instalments. The first payment instalment is priced to recover the costs incurred by the Group in developing and shipping the devices to the customer and is due from the customer to the Group once the products have been delivered and accepted by the customer. The Group allocates the initial payment instalment between the hardware device, the software services, and the software upgrades based on their standalone selling price and recognizes revenue based on its recognition policy further described in the preceding paragraph. The Group is also entitled to receive a potential second instalment payment calculated as 50 percent of the future net profits from commercial sales made by the customer. The Group has determined that the second instalment consideration constitutes variable consideration and includes the amount in the transaction price to the extent it is not constrained and it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period (see below for further details). The second instalment is also allocated between the hardware device, the software services, and the software upgrades based on the relative standalone price and is recognized based on the Group's recognition policy further described in the preceding paragraph. The Group’s revenue recognition policy of its products under its cooperation agreement is substantially consistent with that for its sales of self-branded products except that the instalment payments arrangement under the cooperation agreement is not available to the self-branded products. Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimate of variable consideration which result from the Group's cooperation agreement with one customer (see above for more details). The amount of variable consideration is included in the transaction price to the extent it is not constrained and that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Group's estimates. If actual results in the future vary from the Group's estimates, the Group will adjust these estimates, which would affect revenue and earnings in the period such variances are known. Sales Incentive Starting in 2018, the Group provides sales incentives to its customers for self-branded products, including reduced sales prices and volume-based discounts. Volume discounts are negotiated on a contract-by-contract basis with customers and the discount will increase depending upon the volume purchased over the period. The sales incentives are discounts to be applied to future sales to the customer which cannot be exchanged for cash. To the extent that the volume discount or sales incentive represents a material right or options to acquire additional goods or services at a discount in the future period, the material right is recognized as a separate performance obligation at the outset of the arrangement based on the most likely amount of incentive to be provided to the customer. Amounts allocated to a material right are recognized as revenue when those future goods are sold to the customers. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling and marketing expenses. In addition, the Group does not disclose the value of unsatisfied performance obligations as all of its contracts have an original expected length of one year or less. Periods prior to January 1, 2018 The Group recognized revenue when a 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 recognized revenue, net of estimated sales returns and value-added taxes ("VAT"). The Group’s contracts with its customers included multiple element arrangements. The first deliverable was the smart wearable device and embedded firmware that was essential to the functionality of the device. The second deliverable was the software services included with the products, which were provided free of charge and enabled users to sync, view, and access real-time data on the Group’s mobile apps. The third deliverable was 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. The Group allocated revenue to all deliverables based on their relative selling prices. The Group used 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 did not have neither VSOE nor TPE for any of its deliverables, revenue was 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 considered multiple factors including consumer behaviors and the Group’s internal pricing model. The BESP for the smart and wearable devices comprised the majority of the arrangement consideration. The BESP for the software services and software upgrades was estimated from RMB 0.43 to RMB 2.82 per unit and from RMB1.30 to RMB 5.69 per unit for the years ended December 31, 2016 and 2017, respectively. The Group recognized revenue for the amounts allocated to the connected smart and wearable devices at the time of delivery (except as noted below), provided the other conditions for revenue recognition have been met. Revenue for products sold through distributors or retailers was recognized on a sell-in basis. Amounts allocated to the software services and unspecified upgrade rights were deferred and recognized on a straight-line basis over their estimated usage period which approximately 9 months. Sales of self-branded products and others For the years ended December 31, 2016 and 2017, the Group generated 7.9% and 21.2% of revenues from sales of the Group's self-branded products and others to retailers, distributors and end users. The Group’s revenue recognition for its self-branded products was consistent with that described in the preceding paragraphs. Cooperation agreement with one customer For the years ended December 31, 2016 and 2017, the Group generated 92.1% and 78.8% of revenues from one customer for sales of exclusively designed and manufactured smart wearable devices. That customer was also the sole distribution channel for such smart wearable devices and is one of our shareholders (see Note 22). Under the cooperation agreement with this customer, the Group produces and assembles final product for shipments of wearable devices to that customer, who are then responsible for commercial distribution and sale of the product. The arrangement includes two payment instalments. The first payment instalment is priced to recover the costs incurred by the Group in developing and shipping the devices to the customer and is due from the customer to the Group once products have been delivered and accepted by the customer. The Group allocates the initial payment instalment 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 instalment 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 recognized revenue from the second instalment in the period following the commercial sale by the customer, which is when the fee was fixed and determinable. The fee related to the second instalment was usually earned by the Group between 30 to 45 days after initial shipment of the product to the customer. The second instalment was 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 Group’s revenue recognition policy of its products under its cooperation agreement was substantially consistent with that for its sales of self-branded products except that the instalment payments arrangement under the cooperation agreement is not available for the self-branded products. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Value added taxes "VAT" on sales was previously calculated at 17% on revenue from products before May 1, 2018 an |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
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 and 2018. 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 synergy effect from the acquisition. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. INVENTORIES Inventories consisted of the following: As of December 31, 2017 2018 RMB RMB Raw materials 169,665 191,242 Work in process 30,195 33,714 Finished goods 49,875 259,666 Total 249,735 484,622 During the years ended December 31, 2016, 2017 and 2018, the Group recorded write-down of RMB1,037, RMB2,449 and nil for the obsolete inventories, respectively. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 RMB RMB Convertible bonds: Zepp International Limited (“Zepp”) (a) 6,513 — Shenzhen Snowball Technology Co., Ltd (“Snowball”) (b) — 16,243 Guangzhou Joyrun Technology Co., Ltd (“Joyrun”) (c) — 10,751 Abee Semi, Inc.("Abee") (d) 7,208 8,097 Others (e) — 15,391 Total: 13,721 50,482 (a) In December 2017, the Group invested RMB6,506 to purchase a convertible bond issued by Zepp, with a 10% interest rate and nine months maturity. During the year ended December 31, 2018, the Group and Zepp entered into a supplementary agreement where Zepp transferred certain patents to the Group in exchange for the extinguishment of the convertible bond. The Group recorded the acquisition of patents at fair value which resulted in an immaterial gain recorded in the consolidated financial statements. (b) In June 2018, the Group invested RMB 20,000 to acquire a convertible bond from Snowball. The convertible bond includes a 4.35% interest rate and has one-year maturity. As part of the agreement, the Group will also receive two years of free services about the connection to the city transportation system for the Amazfit NFC products from Snowball. The fair value of the service is insignificant and is amortized over the service period. Unrealized gains of RMB443 arise from fair value change of the investment was reported in other comprehensive income during the year ended December 31, 2018. (c) In September 2018, the Group invested RMB10,500 to acquire a convertible bond issued by Joyrun with a 8% interest rate and a one-year maturity. The investment was classified as an available-for-sale investment and measured at fair value. The group recognized RMB251 unrealized holding gains in other comprehensive income from the fair value changes in the investment during the year ended December 31, 2018. (d) In June 2016, the Group invested RMB6,937 to acquire a convertible bond from Abee. The convertible bond includes a 7% interest rate and has 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 RMB10 and RMB889 was reported in other comprehensive income during the years ended December 31, 2017 and 2018, respectively. (e) The others represent several insignificant short-term investments in convertible bonds which are classified as available-for-sales investments and measured at fair value. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 RMB RMB Deferred IPO expense 13,268 — Value-added tax 13,170 19,542 Short-term loans 11,857 14,559 Advances to suppliers 5,128 8,359 Other receivables 4,656 8,049 Rental deposits 1,969 4,474 Prepaid expenses 1,014 3,264 Total 51,062 58,247 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 RMB RMB Software and electronic equipment 7,092 14,453 Buildings 18,592 19,342 Leasehold improvements 9,327 10,404 Total 35,011 44,199 Less: accumulated depreciation (6,256 ) (12,029 ) Construction in progress — 7,872 Property, plant and equipment, net 28,755 40,042 The Group has recorded depreciation expenses of RMB2,399, RMB3,542 and RMB5,773 during the years ended December 31, 2016, 2017 and 2018, respectively. No impairment was recorded during the years ended December 31, 2016, 2017 and 2018. Construction in progress includes leasehold improvements as well as the implementation of an information technology system. |
Intangible Assets,Net
Intangible Assets,Net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 8. INTANGIBLE ASSETS, NET Intangible assets, net, consisted of the following: As of December 31, 2017 2018 RMB RMB Intangible assets with indefinite lives: Domain name 1,222 1,222 Intangible assets with finite lives: Patents 4,304 63,130 Less: accumulated amortization (187 ) (630 ) Intangible assets, net 5,339 63,722 During 2018, the Group purchased patents from Physical Enterprises Inc. ("PEI") for a total cash consideration amounting to RMB51,470. The Group acquired the patents for the purpose of facilitating their new product development. Amortization expenses for the intangible assets for the years ended December 31, 2016, 2017 and 2018, were nil, RMB175 and RMB443, respectively. Future amortization expense relating to the existing intangible assets amounted to RMB6,313 per year for each of the next five years and thereafter. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Long -Term investments | 9. LONG-TERM INVESTMENTS Long-term investments consisted of the following: As of December 31, 2017 2018 RMB RMB Equity securities without readily determinable fair value Sifive, Inc. ("Sifive") (a) — 20,192 Greenwaves Technologies ("Greenwaves") (b) — 19,906 Other equity securities without readily determinable fair value (c) 750 16,501 Equity method investments: Hefei Huaying Xingzhi Fund Partnership (limited partnership) (“Huaying Fund”) (d) 55,905 56,898 Other equity method investments (e) 8,097 11,283 Available-for-sale investments Sunny Infinity Ltd. ("Sunny") (f) — 49,091 Other available-for-sale investments (g) 20,486 35,078 Total 85,238 208,949 (a) In April 2018 and December 2018, the Group invested RMB8,602 and RMB3,730 to acquire 1.01% equity interests in the form of equity securities in Sifive. Sifive is a private company engaging in the business of semiconductor. The equity interest is not considered in-substance common shares due to substantial liquidation preference rights. Accordingly, the investment in Sifive was accounted for as equity securities without readily determinable fair value. The Group recorded RMB7,860 gain from the fair value change of the investment, arising from observable price changes during the year ended December 31, 2018. ( b ) In December 2018, the Group invested RMB19,906 to acquire 8.33% equity interests in Greenwaves. Greenwaves is a private company engaging in the business of semiconductor. The equity interest is not considered in-substance common shares due to substantial liquidation preference rights. Accordingly, the investment in Greenwaves was accounted for as equity securities without readily determinable fair value. For the year ended 2018, there are no observable fair value changes on the investment noted. ( c ) Investments represent certain insignificant investments in third-party private companies, which the Group has no significant influence over the investees. Prior to 2018, the Group accounted for the investment using the cost method. In 2018, those investments are accounted for using the measurement alternative method. ( d ) In August 2016, the Group invested RMB50,000 to acquire 49.5% equity interests in a limited partnership, Huaying Fund, a fund engaged in 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 through its board seat in the Fund but does not have a majority equity interest or otherwise control. ( e ) 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, 2018. 9. LONG-TERM INVESTMENTS - continued ( f ) During the year ended December 31, 2018, the Group subscribed certain equity interest in Sunny for a total investment amount of RMB49,091. Sunny is a company established for the sole purpose of making investments in certain start-up and early stage companies in the technology industry. The Group holds an aggregate of 23% equity interests in Sunny and enjoys a redemption right. The investment was classified as available-for-sale investment as the Group determined the interests were debt security and measured at fair value. No fair value change was recognized for the year ended December 31, 2018. ( g ) The other available-for-sale investments represent the investments in debt securities and measured at fair value, which mainly include the investments in convertible bonds and the investments with redemption features. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 10. FAIR-VALUE MEASUREMENT As of December 31, 2017 and 2018, the financial assets and liabilities measured at fair value on a recurring basis mainly consist of the available-for-sale investments, such as the convertible bonds and redeemable preferred shares, which are recorded in short-term and long-term investments. The fair value hierarchy of these investments as of December 31, 2017 and 2018 are as follows: 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 As of December 31, 2018 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 — 50,482 — 50,482 Redeemable preferred shares — 84,169 — 84,169 Total: — 134,651 — 134,651 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 Group 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. During the year ended December 31, 2018, the Group recorded an impairment charge amounting to RMB7,590 related to one of its equity method investment and one of its available for sale investment. The fair value of the investment was based on the future cash flow forecast using significant unobservable inputs and represented a Level 3 measurement. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2017 2018 RMB RMB Accrued payroll and welfare 30,207 83,925 Product warranty 8,431 55,599 Deferred revenue 17,876 41,863 Accrued expenses 3,943 6,107 Other tax payable 6,569 4,727 Accrued professional fee 13,268 3,945 Other current liabilities 13,504 17,809 Total 93,798 213,975 Product warranty activities were as follows: Product Warranty RMB Balance as of January 1, 2016 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 Provided during the year 68,866 Utilized during the year (21,698 ) Balance at December 31, 2018 55,599 The warranty costs recorded in cost of revenue were RMB14,153, RMB23,093 and RMB68,866 during the years ended December 31, 2016, 2017 and 2018, respectively. During the year ended December 31, 2018, the Group recorded a one-off additional warranty charge due to an irregular quality matter relating to a specific batch of products as noted by its customer. |
Bank Borrowing
Bank Borrowing | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Bank Borrowing | 12. BANK BORROWING On December 22, 2016, the Group entered into a loan agreement with Hui Shang Bank amounting to RMB10,000 with one year maturity and a floating interest rate up to 121% of the benchmark interest rate on payment date. On December 22, 2017, the loan was fully repaid by the Group. On January 4, 2017, the Group entered into a loan agreement with Hefei Branch of China Merchants Bank amounting to RMB30,000 with one year maturity and a fixed interest rate of 5 %. On January 4, 2018 the loan was fully repaid by the Group. On April 2, 2018, the Group entered into a loan agreement with Hefei Branch of China Merchants Bank amounting to RMB20,000 with one year maturity and a fixed interest rate of 5%. As of December 31, 2018, the loan remains outstanding. |
Revenue and Deferred Revenues
Revenue and Deferred Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Deferred Revenues | 13. REVENUE AND DEFERRED REVENUES Disaggregation of revenue All the revenues for the period was recognized from contracts with customers. For the year ended December 31, 2018, most of the Group's revenues were generated in the PRC. Additionally, the majority of the Group's revenues result from sales of products which revenue is recognized at a point of time. The following table provides information about disaggregated revenue by products, including a reconciliation of the disaggregated revenue with reportable segments For the year ended, December RMB Xiaomi Wearable products 2,439,534 Self-branded Products and Others 1,205,801 Total Revenue 3,645,335 Contract balances The following table provides information about receivables, deferred revenue and refund liability from contracts with customers 2018 RMB Accounts Receivables 58,925 Amounts due from related parties 656,399 Deferred revenue 41,863 Refund liability (sales return) 153 Accounts receivables are recorded when the right to consideration is unconditional and payments terms on invoiced amounts are typically 30 to 60 days. Amounts due from related parties include both amounts billed (RMB623,120) and unbilled amount (RMB33,279) due from related party under the cooperation agreement. The amount billed is recorded when the right to the consideration is unconditional and payment terms on invoiced amounts are typically 30 to 60 days. Unbilled amount due from related party relate to our contractual right to consideration under our cooperation agreement for the second instalment payment not yet invoiced. Contract liabilities During the year ended December 31, 2018, the Group recognized RMB17,876 of revenue previously included in deferred revenue as of January 1, 2018, which mainly consist of revenue recognized related to its service subscription. Additionally, during the year ended December 31, 2018, the Group billed RMB33,329 to a related party, initially recorded as unbilled amount, mainly due to the timing of invoicing for the goods related to its cooperation agreement. The difference between the opening and closing balances of the Group's contract liabilities primarily results from the timing difference between the Group's performance and the customer's payment. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | 14. 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 subsidiaries Huami HK Limited and Yunding HK are located in Hong Kong and are subject to a two-tiered income tax rates for taxable income earned in Hong Kong with effect from April 1, 2018. The first HK$2 million of profits earned by Huami HK and Yunding HK will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. 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 in 2015 and renewed the HNTE certificate in October 2018. Accordingly Anhui Huami was subject to a tax rate of 15% during the years ended December 31, 2016, 2017 and 2018. The current and deferred components of income taxes appearing in the consolidated statements of operation are as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Current tax expenses 21,556 46,573 84,931 Deferred tax benefits (18,468 ) (18,962 ) (32,895 ) Income tax expense 3,088 27,611 52,036 The significant components of the Group’s deferred tax assets and liabilities were as follows: As of December 31, 2017 2018 RMB RMB Deferred tax assets Accrued expenses 7,919 28,585 Net operating loss carry forwards 33,976 46,447 Total deferred tax assets 41,895 75,032 Less: valuation allowance — — Deferred tax assets, net 41,895 75,032 As of December 31, 2018, the Group had RMB204,677 operating losses deriving from entities in the PRC, Hong Kong and United States. The operating loss in PRC of RMB152,074 can be carried forward for five years and will begin to expire in 2020, if not utilized. The operating loss in the United States before December 31, 2017 can be carried forward for 20 years to offset future taxable profit, while other losses from the year of 2018 may be carried forward indefinitely. The tax losses in Hong Kong can be carried forward without an expiration date. 14. INCOME TAXES - continued Management assesses the available positive and negative evidence in certain entities in the PRC, HK and United States to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets and determines the valuation allowance on an entity by entity basis. In making such determination, the Group considers the following factors, among other matters, when determining whether some portion or all of the deferred tax assets will more likely than not be realized: the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry-forward periods, the Group's experience with tax attributes expiring unused and tax planning alternatives. The Group's ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry-forward periods provided for in the tax law. On the basis of this evaluation, for the years ended December 31, 2016, 2017 and 2018, the Company believes the net operating loss carry-forwards could be ultimately realized in the Group and no allowance has been recorded for the deferred tax assets. Reconciliation between the income tax expense computed by applying the PRC enterprise tax rate of 25% to income before income tax and actual provision were as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Income before income tax 28,863 191,900 386,613 Tax expense at PRC enterprise income tax rate of 25% 7,216 47,975 96,653 Income tax on tax holidays (16,533 ) (30,740 ) (58,327 ) Tax effect of permanence differences (621 ) (8,190 ) (22,733 ) Effect of income tax rate differences in jurisdictions other than the PRC 13,026 14,364 36,443 Change in tax rate — 4,202 — Income tax expense 3,088 27,611 52,036 If the tax holiday granted to Anhui Huami was not available, the Group’s income tax expense would have increased by RMB16,533, RMB30,740 and RMB58,327, the basic net income per share attributable to the ordinary shareholders of the Company would have decreased by RMB0.30, RMB0.45 and RMB0.28 during the years ended December 31, 2016, 2017 and 2018, respectively, and the diluted net income per share attributable to the ordinary shareholders of the Company would have decreased by RMB0.30, RMB0.45 and RMB0.26 during the years ended December 31, 2016, 2017 and 2018, respectively. 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 RMB350,251 and RMB860,613 as of December 31, 2017 and 2018, 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, 2016, 2017 and 2018, 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. 14. INCOME TAXES - continued 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$15 (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 | 4. 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, 2018 | |
Equity [Abstract] | |
Ordinary Shares | 15. 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, 2017, the Company had 91,304,327 ordinary shares issued and outstanding. In February 2018, the Group completed its IPO upon which the Group's ordinary shares were divided into class A ordinary shares and class B ordinary shares. The ordinary shares before the offering were converted to class B ordinary shares. The 41,600,000 shares issued through the IPO were classified as Class A ordinary shares. All of the Group's Series A, B-1 and B-2 preferred shares were automatically converted into 94,537,315 Class B ordinary shares. 13,359,788 Class B ordinary shares were re-designated to Class A ordinary shares on a one-for-one basis. Immediately prior to the completion of its IPO, the Group granted 12,064,825 Class B ordinary shares to its preferred shareholders in consideration of their waivers of the conditions of a qualified initial public offering as provided in the shareholders agreement between the Group and its preferred shareholders. The Group recorded the issuance at fair value and treated it as a deemed dividend to its preferred shareholders. The Group initially recorded the deemed dividend against retained earnings to reduce it to zero with the remaining amounts charged against additional paid-in capital. Additionally, the deemed dividend reduced the Group's income available to ordinary shareholders. Holders of class A ordinary shares are entitled to one vote per share, while holders of class B ordinary shares are entitled to ten votes per share. As of December 31, 2018, there were 57,303,093 Class A and 184,376,679 Class B ordinary shares issued and outstanding. During the year ended December 31, 2018, the Group repurchased a total of 488,000 ordinary shares from employees and shareholders. The difference between the repurchase price and the fair value of the ordinary shares at the time of repurchase was immaterial. Those shares were immediately cancelled subsequent to the repurchase. |
Preferred Shares
Preferred Shares | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Preferred Shares | 16. PREFERRED SHARES 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. 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”). 16. PREFERRED SHARES – CONTINUED 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. 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: (iii) 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; (iv) 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, 16. PREFERRED SHARES – CONTINUED 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. 16. PREFERRED SHARES – CONTINUED 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. The change in the balance of Series Preferred included in mezzanine equity during the years ended December 31, 2016, 2017 and 2018 are as follows: Series A Preferred Series B-1 Preferred Series B-2 Preferred RMB RMB RMB Balance as of January 1, 2016 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 Accretion of Preferred A shares 177 — — Accretion of Preferred B shares — 368 4,049 Conversion to ordinary shares (26,947 ) (27,274 ) (299,991 ) Balance as of December 31, 2018 — — — The Group recognizes changes in the redemption value ratably 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, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Payment | 17. 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. A summary of non-vested restricted share activity during the year ended December 31, 2018 is presented below: Number of shares Outstanding at January 1, 2018 22,783,582 Granted — Forfeited — Vested 11,391,791 Outstanding at December 31, 2018 11,391,791 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 23 for details. During the years ended December 31, 2016, 2017 and 2018, the Group recorded share-based compensation expense of RMB50,842, RMB51,463 and RMB55,311 related to the unvested shares of the Founders respectively. Share options 2015 Share Incentive Plan 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 (“U.S. 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, 2016, 2017 and 2018, the Group granted 140,000, nil 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, 2016, 2017 and 2018, the Group granted 925,235, 1,545,688 and nil 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 recorded nil, nil and RMB40,449 share-based compensation expense for the years ended December 31, 2016, 2017 and 2018 related to such options, respectively. During the years ended December 31, 2016, 2017 and 2018, the Group granted nil, 500,000 and nil 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. 17. SHARE-BASED PAYMENT – CONTINUED Share options – continued 2018 Share Incentive Plan In January 2018, The Company adopted the 2018 share incentive plan ("2018 Plan"), commencing on January 1, 2018, which provides additional incentives to employees, directors and consultants to promote the success of the Group’s business. Under the 2018 share incentive plan, the maximum aggregate number of shares which may be issued initially pursuant to all awards under the 2018 Plan is 9,559,607 ordinary shares, assuming the underwriters do not exercise their over-allotment option. The number of shares reserved for future issuances under the 2018 Plan will be increased by (i) a number equal to 1.0% of the total number of outstanding shares immediately after IPO, or (ii) such number of shares as may be determined by the board of directors, on the first day of each calendar year during the term under 2018 Plan. During the year ended December 31, 2018, the Group granted 6,988,469 share options to certain personnel under the 2018 Plan. The exercise price of these options is US$0.35 per share. During the year ended December 31, 2018, the Group has recorded RMB9,523 share-based compensation expense for such options. 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, 2016, 2017 and 2018 are summarized in the following table: For the years ended December 31, 2016 2017 2018 Risk-free interest rate 1.62%-2.85% 2.2 % 2.04%-2.83% Expected volatility 46.2 % 49.0 % 36%-52.5% Expected life of option (years) 10 9.76-10 1-10 Expected dividend yield 0.0 % 0.0 % 0.00 % Fair value per ordinary share 7.5 12.56 15.03-16.85 (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 During the year ended December 31, 2018, the fair value of the underlying ordinary shares is determined based on the closing market price of the share. During the years ended December 31, 2016 and 2017, 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. 17. SHARE-BASED PAYMENT – CONTINUED Share options – continued A summary of the stock option activity under the 2015 and 2018 Plan during the year ended December 31, 2018 is included in the table below. Options granted Share Number Weighted average exercise price per option US$ Outstanding at January 1, 2018 7,338,559 0.16 Granted 6,988,469 0.35 Exercised 774,325 0.66 Cancelled and forfeited 209,473 0.15 Outstanding at December 31, 2018 13,343,230 0.23 The following table summarizes information regarding the share options granted December 31, 2018: December 31, 2018 Options Number Weighted- average exercise price per option Weighted- average remaining exercise contractual life (years) Aggregate intrinsic value US$ US$ Options Outstanding 13,343,230 0.23 8.38 29,776 Exercisable 6,582,663 0.13 7.42 15,308 Expected to vest 6,760,567 0.32 9.31 14,468 The total intrinsic value of options exercised during the years ended December 31, 2016, 2017 and 2018 amounted RMB 262, RMB1,695 and RMB6,858, respectively. The weighted average grant date fair value of options granted during the year ended December 31, 2016, 2017 and 2018 was RMB5.67, RMB11.22 and RMB15.12 per share, respectively. During the years ended December 31, 2016, 2017 and 2018, the Group recorded share-based compensation expense of RMB394, RMB4,713 and RMB49,972 for the options granted under the 2015 Plan and 2018 Plan. In January 2018, the Group amended and accelerated the vesting schedule of 6,817,372 previously granted options, which became immediately exercisable. The Group recognized the remaining compensation cost immediately for those shares upon the modification. As of December 31, 2018, there was RMB96,369 of unrecognized compensation expenses for the options. 17. SHARE-BASED PAYMENT – CONTINUED 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 the 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 the 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, 2018, there was RMB118 unrecognized compensation cost related to non-vested shares which is expected to be recognized over a weighted average vesting period of 0.04 years. A summary of the restricted share activity for the year ended December 31, 2016, 2017 and 2018 is presented below: Restricted Shares Outstanding at January 1, 2016 4,378,996 Vested 1,150,718 Outstanding at December 31, 2016 3,228,278 Vested 1,150,718 Outstanding at December 31, 2017 2,077,560 Cancelled and forfeited 411,930 Vested 1,150,718 Outstanding at December 31, 2018 514,912 During the years ended December 31, 2016, 2017 and 2018, the Group recorded compensation expense of RMB6,499, RMB6,611 and RMB3,992 for the restricted shares, respectively. Restricted Stock Units During the year ended December 31, 2016, 2017 and 2018, the Company granted 745,500, 1,700,000 and 658,056 restricted stock units respectively to employees at an 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 RMB41,713. 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 RMB5.96, RMB11.38 and RMB15.87 during the years ended December 31, 2016, 2017 and 2018. During the years ended December 31, 2016, 2017 and 2018, the Group recorded compensation expense of RMB nil, nil and RMB25,434 for the restricted stock units, respectively. As of December 31, 2018, there was RMB8,906 unrecognized compensation cost related to restricted stock units which is expected to be recognized over a weighted average vesting period of 3.41 years. The weighted average granted fair value of restricted stock units granted during the years ended December 31, 2016, 2017 and 2018 were RMB7.5 per RSU, RMB12.54 per RSU and RMB15.75 per RSU. 17. SHARE-BASED PAYMENT – CONTINUED Restricted Stock Units - continued A summary of the restricted stock units activity during the year ended December 31, 2018 is presented below: RSUs Unvested balance at January 1, 2018 2,298,775 Granted 658,056 Cancelled and forfeited 162,750 Vested (a) 2,231,168 Unvested balance at December 31, 2018 562,913 (a) In January 2018, the Group amended and accelerated the vesting schedule of 1,700,000 previously granted restricted stock units which became immediately and fully vested. The Group recognized the remaining compensation cost immediate for those restricted stock units upon the modification Total share-based compensation recognized was as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB General and administrative 55,109 55,804 87,857 Research and development 2,626 6,983 42,167 Selling and Marketing — — 4,271 Cost of revenues — — 414 Total stock-based compensation expense 57,735 62,787 134,709 |
Mainland China Contribution Pla
Mainland China Contribution Plan | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Mainland China Contribution Plan | 18. 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 RMB19,290, RMB24,539 and RMB39,495 during the years ended December 31, 2016, 2017 and 2018. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 19. 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 January 1, 2018 2,389 Loss attributed to noncontrolling interest shareholders (3,726 ) Balance as of December 31, 2018 (1,337 ) (a) In July 2017, the Group purchased an additional 22% of Yunding resulting in the Group controlling Yunding with 57% ownership. See Note 3. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 20. 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, 2016, 2017 and 2018, 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 primarily operates in the PRC and substantially all of the Group’s revenue and 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 year 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 year 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 For the year ended December 31, 2018 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 2,439,534 1,205,801 3,645,335 Cost of revenues 1,883,509 822,376 2,705,885 Gross Profit 556,025 383,425 939,450 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, 2018 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net Assets | 21. 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. 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 and amounted to RMB1,509. Accordingly, no additional profit appropriation was made during the years ended December 31, 2016, 2017 and 2018. 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 RMB154,342, RMB163,350 and RMB153,851 as of December 31, 2016, 2017 and 2018, respectively. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | 22. 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 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", together with Xiaomi Communication, Xiaomi Technology, Xiaomi Mobile, as "Xiaomi") Controlled by one of the Company’s shareholders Hefei Huaying Xinzhi Fund Partnership.(Limited Partnership)("Huaying Fund") Long-term investee of the Group Hangzhou Yunyou Technology Co. Ltd.("Hanzhou Yunyou") Significant influence by one of the Company’s shareholders (1) Balances As of December 31, 2017 2018 RMB RMB Amount due from related parties: Xiaomi Communication (a) 566,732 631,204 Xiaomi Information (a) 908 9,727 Xiaomi Technology (a) — 7,442 Hangzhou Yunyou (b) — 5,143 Others (c) 10,814 2,883 Total 578,454 656,399 22. RELATED PARTY BALANCES AND TRANSACTIONS – CONTINUED (1) Balances continued As of December 31, 2017 2018 RMB RMB Amount due to related parties, current: Huaying Fund (3,061 ) — Xiaomi Mobile (d) (4,752 ) (10,350 ) Others (330 ) (345 ) Total (8,143 ) (10,695 ) Amount due to related party, non-current: Huaying Fund (3,076 ) — Total (3,076 ) — (2) Transactions: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Sales to related parties: Xiaomi Communication 1,448,960 1,773,595 2,798,824 Xiaomi Information — 1,318 17,859 Xiaomi Technology 711 2,072 — Others 256 1,655 312 Total 1,449,927 1,778,640 2,816,995 For the years ended December 31, 2016 2017 2018 RMB RMB RMB Others: Loan provided to related parties (b) 16,071 (8,000 ) 5,143 Investments disposed to a related party (e) — 22,047 3,061 (a) The amount due from Xiaomi represents receivables from the sales of products and services. ( b ) In 2018, the group provided a RMB 5,000 loan to Hangzhou Yunyou, with annual interest of 15% and maturing in April 2019. ( c ) The amount due from others mostly represents the withholding tax receivables from certain management paid by the Group on behalf of them in 2017, which has been collected in 2018. (d ) The amount due to Xiaomi Mobile represents the payable expense for cloud service provided by Xiaomi Mobile ( e ) The Group disposed five long-term investments and one long-term investment to Huaying Fund and recorded RMB284 and RMB31 gain during the years ended December 31, 2017 and 2018, respectively. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 23. NET (LOSS) INCOME PER SHARE During the years ended December 31, 2016, 2017 and 2018, 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. 23. NET (LOSS) INCOME PER SHARE – CONTINUED 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, 2016 2017 2018 RMB RMB RMB Basic net income per share calculation Numerator: Net income for the year attributable to the Company: 23,946 167,682 340,046 Less: Accretion of Series A Shares 3,209 3,762 177 Less: Accretion of Series B-1 Shares 2,738 3,127 368 Less: Accretion of Series B-2 Shares 30,121 34,382 4,049 Less: Deemed dividend to preferred shareholders — — 209,752 Less: Undistributed earnings allocated to Series A preferred shareholders — 48,753 4,521 Less: Undistributed earnings allocated to Series B-1 preferred shareholders — 1,361 126 Less: Undistributed earnings allocated to Series B-2 preferred shareholders — 14,220 1,319 Less: Undistributed earnings allocated to participating nonvested restricted shares — 15,957 6,244 Net (loss)/income attributed to ordinary shareholders for computing net (loss)/income per ordinary shares—basic (12,122 ) 46,120 113,490 Denominator: Weighted average ordinary shares outstanding used in computing net (loss)/income per ordinary shares – basic 55,612,626 67,777,592 211,873,704 Net (loss)/income per ordinary share attributable to ordinary shareholders—basic (0.22 ) 0.68 0.54 Diluted net (loss)/income per share calculation Net (loss)/income attributable to ordinary shareholders for computing net (loss)/income per ordinary shares—basic (12,122 ) 46,120 113,490 Add: adjustments to undistributed earnings to participating securities — 3,519 648 Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic (12,122 ) 49,639 114,138 Denominator: Weighted average ordinary shares basic outstanding 55,612,626 67,777,592 211,873,704 Effect of potentially diluted stock options, restricted stocks and RSUs — 8,514,309 13,160,946 Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares—dilute 55,612,626 76,291,901 225,034,650 Net (loss) income per ordinary share attributable to ordinary shareholders—diluted (0.22 ) 0.65 0.51 23. NET (LOSS) INCOME PER SHARE – CONTINUED For the year ended December 31, 2016, 2017 and 2018, 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 year presented: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Shares issuable upon exercise of share options, restricted stocks and RSUs 11,891,695 12,683,366 705,407 Shares issuable upon vesting of nonvested restricted shares 34,175,372 23,450,173 11,657,620 Shares issuable upon conversion of Series A shares 71,641,792 71,641,792 — Shares issuable upon conversion of Series B-1 shares 2,000,000 2,000,000 — Shares issuable upon conversion of Series B-2 shares 20,895,523 20,895,523 — |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 24. COMMITMENTS AND CONTINGENCIES Lease commitments Future minimum payments under lease commitments as of December 31, 2018 were as follows: RMB 2019 16,333 2020 6,648 2021 and after 3,171 26,152 Capital commitments As of December 31, 2017, the group had a future minimum capital commitment for the purchase a building which amounted to RMB423,441. During the year ended December 31, 2018, the agreement was cancelled. Subsequent to December 31, 2018, the Group entered into a five-year rental agreement for the use of this building. |
Financial Statement Schedule I
Financial Statement Schedule I Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Financial Statement Schedule I Condensed Financial Information of Parent Company | (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, 2017 2018 2018 RMB RMB US$ (Note2) Assets Current assets: Cash and cash equivalents 34,470 458,371 66,667 Term deposit — 96,969 14,104 Prepaid expenses and other current assets 14,284 3,782 550 Amount due from related parties 101,624 314,658 45,765 Total current assets 150,378 873,780 127,086 Investments in subsidiaries 435,085 963,064 140,072 Total assets 585,463 1,836,844 267,158 Liabilities Current liabilities: Accrued expense and other current liabilities 10,070 4,564 664 Amount due to related parties — 21,365 3,107 Total current liabilities 10,070 25,929 3,771 Total liabilities 10,070 25,929 3,771 Mezzanine equity Series A convertible redeemable participating preferred shares (“Series A Preferred Shares”) (US$0.0001 par value; 71,641,792 and nil shares authorized, issued and outstanding as of December 31,2017 and 2018, respectively; liquidation value of RMB24,870 and nil as of December 31, 2017 and 2018, respectively) 26,770 — — Series B-1 convertible redeemable participating preferred shares (“Series B-1 Preferred Shares”) (US$0.0001 par value; 2,000,000 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively; liquidation value of RMB33,188 and nil as of December 31, 2017 and 2018, respectively) 26,906 — — Series B-2 convertible redeemable participating preferred shares (“Series B-2 Preferred Shares”) (US$0.0001 par value; 20,895,523 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively; liquidation value of RMB364,145 and nil as of December 31, 2017 and 2018, respectively) 295,942 — — Total mezzanine equity 349,618 — — Equity Ordinary shares (US$0.0001 par value; 405,462,685 and nil shares authorized as of December 31, 2017 and 2018, respectively; 91,304,327 and nil shares issued and outstanding as of December 31, 2017 and 2018, respectively) 56 — — Class A Ordinary shares (US$0.0001 par value; nil and 9,800,000,000 shares authorized as of December 31, 2017 and 2018; nil and 57,303,093 shares issued and outstanding as of December 31, 2017 and 2018, respectively) — 36 5 Class B Ordinary shares(US$0.0001 par value; nil and 200,000,000 shares authorized as of December 31, 2017 and 2018; nil and 184,376,679 shares issued and outstanding as of December 31, 2017 and 2018, respectively) — 115 17 Additional paid-in capital 72,427 1,373,577 199,779 Accumulated retained earnings 131,192 340,046 49,457 Accumulated other comprehensive income 22,100 97,141 14,129 Total equity 225,775 1,810,915 263,387 Total liabilities, mezzanine equity and equity 585,463 1,836,844 267,158 The accompanying notes are an integral part of these condensed consolidated financial statements. STATEMENTS OF OPERATIONS (Amounts in thousands of Renminbi (“RMB” and U.S. dollars (“US$”)) except for number of shares and per share data, or otherwise noted) For the year ended December 31, 2016 2017 2018 2018 RMB RMB RMB US$ (Note2) Cost — — 414 60 Gross profit — — 414 60 Operating expenses: Selling and marketing — — 4,271 621 General and administrative expenses 54,916 57,898 99,881 14,528 Research and development 2,626 6,984 42,167 6,133 Total operating expenses 57,542 64,882 146,319 21,282 Operating loss (57,542 ) (64,882 ) (146,733 ) (21,342 ) Interest Income — — 2,185 318 Equity in earnings of subsidiaries and VIEs 81,488 232,564 484,594 70,481 Net income 23,946 167,682 340,046 49,457 The accompanying notes are an integral part of these condensed consolidated financial statements. STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands of Renminbi (“RMB” and U.S. dollars (“US$”)) except for number of shares and per share data, or otherwise noted) For the years ended December 31, 2016 2017 2018 2018 RMB RMB RMB US$ (Note2) Net income 23,946 167,682 340,046 49,457 Other comprehensive income, net of tax Foreign currency translation adjustment 5,262 (3,175 ) 75,041 10,914 Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, RMB 1,554 and nil for years ended December 31, 2016, 2017 and 2018, respectively) 303 9,484 — — Comprehensive income attributable to Huami Corporation 29,511 173,991 415,087 60,371 The accompanying notes are an integral part of these condensed consolidated financial statements. STATEMENTS OF CASH FLOW (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except share and share related data, or otherwise noted) For the years ended December 31, 2016 2017 2018 2018 RMB RMB RMB US$ (Note2) Cash Flow from Operating Activities Net income 23,946 167,682 340,046 49,457 Equity in earnings of subsidiaries (81,488 ) (232,564 ) (484,594 ) (70,481 ) Share-based compensation 57,736 62,787 134,709 19,592 Changes in operating assets and liabilities Prepaid expenses and other current assets — (14,284 ) 8,625 1,255 Accrued expense and other current liabilities 2 10,043 (5,507 ) (801 ) Amount due to a related party — (8,500 ) 4,489 653 Net Cash provided by (used in) Operating Activities 196 (14,836 ) (2,232 ) (325 ) Cash Flow from Investing Activities Amount due from related parties (122,728 ) 21,646 (196,158 ) (28,530 ) Investment in subsidiaries (2,400 ) (9,772 ) (10,056 ) (1,463 ) Purchase of term deposits — — (385,028 ) (56,000 ) Maturity of term deposits — — 288,771 42,000 Proceed received from loan to third parties — — 3,578 521 Loans provided to third party — — (2,406 ) (349 ) Net Cash (used in) provided by Investing Activities (125,128 ) 11,874 (301,299 ) (43,821 ) Cash Flow from Financing Activities Net proceeds from initial public offering — — 657,062 95,566 Exercise of share options 24 89 3,486 506 Payment for repurchase of ordinary shares — — (8,157 ) (1,186 ) Net Cash provided by Financing Activities 24 89 652,391 94,886 Net decrease in cash and cash equivalent (124,908 ) (2,873 ) 348,860 50,740 Effect of exchange rate changes 5,565 (3,175 ) 75,041 10,914 Cash and cash equivalents at beginning of the year 159,861 40,518 34,470 5,013 Cash and cash equivalents at end of the year 40,518 34,470 458,371 66,667 |
Basis for Preparation
Basis for Preparation | 12 Months Ended |
Dec. 31, 2018 | |
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. |
Convenience Translation
Convenience Translation | 12 Months Ended |
Dec. 31, 2018 | |
Foreign Currency [Abstract] | |
Convenience Translation | 2. CONVENIENCE TRANSLATION Translations of balances in condensed financial information of parent company balance sheets, statements of operations statements of comprehensive income and statements of cash flows from RMB into US$ as of and during the year ended December 31, 2018 is solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.8755, representing the rate as certified by the statistical release of the Federal Reserve Board of United States on December 31, 2018. 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 31, 2018, or at any other rate |
Investments in Subsidiaries
Investments in Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company | |
Investments in Subsidiaries and VIEs | 3. 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 Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, impairment of goodwill, product warranties, fair value measurement of ordinary shares and preferred shares, fair value measurement of long-term available-for-sale investments and long-term investments of non-marketable equity securities with fair value change through profit or loss, 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, 2017 and 2018. Measured fair value on a nonrecurring basis The Group measured the fair value of the intangible assets acquired through non-monetary exchange at fair value. The fair values was determined using models with significant unobservable inputs (Level 3 inputs). The Group used 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 the 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 for the fair value measurement of intangible assets. 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 acquired intangible assets arising from acquisitions during the years ended December 31, 2016, 2017 and 2018. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Measured fair value on a nonrecurring basis – continued 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 the carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. 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 recognize any impairment loss related to goodwill during the year ended December 31, 2016, 2017 and 2018. For equity investments without readily determinable fair values for which the Company elected to use the measurement alternative starting in 2018, the equity investment is measured at fair value on a nonrecurring basis when there is an orderly transaction for identical or similar investments of the same issuer. |
Fair Value of Financial Instruments | Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, term deposit, 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, term deposit, 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. |
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 40% or 60% 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 as of December 31, 2017 and 2018. |
Term Deposit | Term deposit Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months and less than one year. |
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 | 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. As of December 31, 2017 and 2018, the Company recorded nil allowance for doubtful account. |
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, 2016, 2017 and 2018, inventory write-down amounted to RMB1,037, RMB2,449 and nil, respectively. |
Short-Term Investments | Short-term investments Short-term investments are mainly consist of investment in convertible bonds with a maturity of less than one year. These investments are accounted for as available-for-sale investments and measured at fair value. |
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. |
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 Assets, Net | Intangible assets, net Acquired intangible assets other than goodwill consist of the domain name for the Company’s website www.huami.com, trademark and patents. 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 trademark and patents 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 combination. Goodwill is not amortized but is tested for impairment annually or more frequently if events on changes in circumstance indicate that it might be impaired. 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. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Goodwill – continued 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 and 2018, the Group recognized nil impairment loss on goodwill. |
Long-Term Investments | Long-term investments The Group’s long-term investments consist of equity securities without readily determinable fair value, equity method investments and available-for-sale securities investments. (a) Equity securities without readily determinable fair value On January 1, 2018, the Group adopted Accounting Standards Update ("ASU") No. 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and 2018-03 Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Prior to 2018, for investee companies over which the Group does not have significant influence or a controlling interest, equity securities without determinable fair value were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. Starting in 2018, these securities are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. (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. 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. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Long-term investments – continued 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 recorded nil, nil and RMB4,133 impairment losses on its equity method investments during the years ended December 31, 2016, 2017 and 2018. (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 available for sale 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 recorded nil, nil and RMB3,457 impairment losses on its available- for-sale investments during the years ended December 31, 2016, 2017 and 2018, respectively. |
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. |
Revenue Recognition | Revenue recognition On January 1, 2018, the Group adopted Accounting Standards Update (ASU) 2014-09, Revenue Contracts with Customers (Topic 606), "Topic 606" applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Please see the newly adopted accounting pronouncement for detail regarding the impact on the Group's financial statements that arise from the adoption. Nature of Goods and Services 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. For the year ended December 31, 2018, the Group generated 66.9% of revenue from one customer for sales of exclusively designed and manufactured smart wearable devices and 33.1% of revenue from sales of the Group's self-branded products and others. Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services. The Group recognizes revenue, net of estimated sales returns and value-added taxes ("VAT"). The Group has determined that its contracts with its customers include multiple performance obligations that the Group accounts for separately as those are distinct from other items in the contract. The first performance obligation is the smart wearable device and embedded firmware that is essential to the functionality of the device, which the customer can benefit from it on its own or with other resources that are readily available to the customer. The second performance obligation 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 performance obligation 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 – continued. The Group allocates the transaction price to all performance obligations based on their relative standalone selling prices. The standalone selling prices are determined based on the expected cost plus margin as the Group determined that no observable price is available for any of its performance obligation. The Group considered multiple factors in the process of determining its cost plus margin including consumer behaviours and the Group’s internal pricing model. The cost plus margin estimated selling price for the smart and wearable devices comprised the majority of the transaction. The cost plus margin estimated selling price for the software services and software upgrades was estimated from RMB1.77 to RMB5.68 per unit for the year ended December 31, 2018. The Group recognizes revenue for the amounts allocated to the connected smart and wearable devices when the customer obtains control of the Group's product, which occurs at a point of time, typically upon delivery to the reseller and acceptance by the reseller, who has been identified as the customer of the Group. Amounts allocated to the software services and unspecified upgrade rights are deferred and recognized over time as the customer simultaneously receives and consumes the benefit over an estimated nine-month period. Sales of self-branded products and others For the year ended December 31, 2018, the Group generated 33.1% of revenues from sales of the Group's self-branded products and others to retailers, distributors and end users. The Group’s revenue recognition for its self-branded products was consistent with that described in the preceding paragraphs. |
Cooperation Agreement with One Customer | Cooperation agreement with one customer For the year ended December 31, 2018, the Group generated 66.9% of revenues from one customer for sales of exclusively designed and manufactured smart wearable devices. That customer is also the sole distributor for such smart wearable devices and is one of our shareholders (see Note 22). Under the cooperation agreement with this customer, the Group produces and assembles final product for shipments of wearable devices to that customer, who are then responsible for commercial distribution and sale of the product. The arrangement includes two payment instalments. The first payment instalment is priced to recover the costs incurred by the Group in developing and shipping the devices to the customer and is due from the customer to the Group once the products have been delivered and accepted by the customer. The Group allocates the initial payment instalment between the hardware device, the software services, and the software upgrades based on their standalone selling price and recognizes revenue based on its recognition policy further described in the preceding paragraph. The Group is also entitled to receive a potential second instalment payment calculated as 50 percent of the future net profits from commercial sales made by the customer. The Group has determined that the second instalment consideration constitutes variable consideration and includes the amount in the transaction price to the extent it is not constrained and it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period (see below for further details). The second instalment is also allocated between the hardware device, the software services, and the software upgrades based on the relative standalone price and is recognized based on the Group's recognition policy further described in the preceding paragraph. The Group’s revenue recognition policy of its products under its cooperation agreement is substantially consistent with that for its sales of self-branded products except that the instalment payments arrangement under the cooperation agreement is not available to the self-branded products. Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimate of variable consideration which result from the Group's cooperation agreement with one customer (see above for more details). The amount of variable consideration is included in the transaction price to the extent it is not constrained and that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Group's estimates. If actual results in the future vary from the Group's estimates, the Group will adjust these estimates, which would affect revenue and earnings in the period such variances are known. Sales Incentive Starting in 2018, the Group provides sales incentives to its customers for self-branded products, including reduced sales prices and volume-based discounts. Volume discounts are negotiated on a contract-by-contract basis with customers and the discount will increase depending upon the volume purchased over the period. The sales incentives are discounts to be applied to future sales to the customer which cannot be exchanged for cash. To the extent that the volume discount or sales incentive represents a material right or options to acquire additional goods or services at a discount in the future period, the material right is recognized as a separate performance obligation at the outset of the arrangement based on the most likely amount of incentive to be provided to the customer. Amounts allocated to a material right are recognized as revenue when those future goods are sold to the customers. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling and marketing expenses. In addition, the Group does not disclose the value of unsatisfied performance obligations as all of its contracts have an original expected length of one year or less. Periods prior to January 1, 2018 The Group recognized revenue when a 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 recognized revenue, net of estimated sales returns and value-added taxes ("VAT"). The Group’s contracts with its customers included multiple element arrangements. The first deliverable was the smart wearable device and embedded firmware that was essential to the functionality of the device. The second deliverable was the software services included with the products, which were provided free of charge and enabled users to sync, view, and access real-time data on the Group’s mobile apps. The third deliverable was 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. The Group allocated revenue to all deliverables based on their relative selling prices. The Group used 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 did not have neither VSOE nor TPE for any of its deliverables, revenue was 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 considered multiple factors including consumer behaviors and the Group’s internal pricing model. The BESP for the smart and wearable devices comprised the majority of the arrangement consideration. The BESP for the software services and software upgrades was estimated from RMB 0.43 to RMB 2.82 per unit and from RMB1.30 to RMB 5.69 per unit for the years ended December 31, 2016 and 2017, respectively. The Group recognized revenue for the amounts allocated to the connected smart and wearable devices at the time of delivery (except as noted below), provided the other conditions for revenue recognition have been met. Revenue for products sold through distributors or retailers was recognized on a sell-in basis. Amounts allocated to the software services and unspecified upgrade rights were deferred and recognized on a straight-line basis over their estimated usage period which approximately 9 months. Sales of self-branded products and others For the years ended December 31, 2016 and 2017, the Group generated 7.9% and 21.2% of revenues from sales of the Group's self-branded products and others to retailers, distributors and end users. The Group’s revenue recognition for its self-branded products was consistent with that described in the preceding paragraphs. Cooperation agreement with one customer For the years ended December 31, 2016 and 2017, the Group generated 92.1% and 78.8% of revenues from one customer for sales of exclusively designed and manufactured smart wearable devices. That customer was also the sole distribution channel for such smart wearable devices and is one of our shareholders (see Note 22). Under the cooperation agreement with this customer, the Group produces and assembles final product for shipments of wearable devices to that customer, who are then responsible for commercial distribution and sale of the product. The arrangement includes two payment instalments. The first payment instalment is priced to recover the costs incurred by the Group in developing and shipping the devices to the customer and is due from the customer to the Group once products have been delivered and accepted by the customer. The Group allocates the initial payment instalment 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 instalment 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 recognized revenue from the second instalment in the period following the commercial sale by the customer, which is when the fee was fixed and determinable. The fee related to the second instalment was usually earned by the Group between 30 to 45 days after initial shipment of the product to the customer. The second instalment was 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 Group’s revenue recognition policy of its products under its cooperation agreement was substantially consistent with that for its sales of self-branded products except that the instalment payments arrangement under the cooperation agreement is not available for the self-branded products. |
Value Added Taxes | 2. SIGNIFICANT ACCOUNTING POLICIES - continued Value added taxes "VAT" on sales was previously calculated at 17% on revenue from products before May 1, 2018 and thereafter, in accordance with Cai Shui [2018] No.32, the VAT rate decreased to 16%. 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 self-branded products sold directly to its customers. The Group estimates the amount of its products sales that may be returned by its customers and records this estimate as a reduction of revenue in the period the related revenue is recognized. The Group currently estimates product return liabilities using its own historical sales information. For the years ended December 31, 2017 and 2018, 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 RMB13,474, RMB7,586 and RMB25,362 for the years ended December 31, 2016, 2017 and 2018, 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, 2016, 2017 and 2018, the Group recognized RMB14,726, RMB6,719 and RMB9,679 as subsidy income, respectively. As of December 31, 2018, subsidies of RMB8,888 were recorded as other current liabilities and RMB56,249 were recorded as other non-current liabilities as the Group has to meet certain performance conditions required by the government authorities. |
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. 2. SIGNIFICANT ACCOUNTING POLICIES - continued Income taxes – continued. 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 Income | Comprehensive income Comprehensive 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 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 income is reported in the consolidated statements of comprehensive 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. For the years ended December 31, 2016, 2017 and 2018, the transaction (losses)/gains amounted to RMB(5,773), RMB779 and RMB(7,588) and were recorded in general and administrative expenses. 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 RMB98,537, RMB66,494 and RMB513,526 as of December 31, 2016, 2017 and 2018, 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, 2018 is solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.8755, representing the rate as certified by the statistical release of the Federal Reserve Board of United States on December 31, 2018. 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 31, 2018, or at any other rate. |
(Loss)/Net Income Per Share | 2. SIGNIFICANT ACCOUNTING POLICIES - continued (Loss)/Net income per share Basic (loss)/net income per ordinary share is computed by dividing net income (loss) 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. 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 ordinary 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, term deposits, 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 is as below: As of December 31, 2017 2018 RMB RMB Company A 18,782(57.1%) 10,600(18.0%) Company B — 25,264(42.9%) Total 18,782(57.1%) 35,864(60.9%) Amount due from related parties concentration of credit risk is as below: As of December 31, 2017 2018 RMB RMB Company C 566,732(98.0%) 631,204(96.2%) Total 566,732(98.0%) 631,204(96.2%) 2. SIGNIFICANT ACCOUNTING POLICIES - continued Concentration of credit risk – continued Revenue generated from Company C accounted for 93.1%, 86.6% and 76.8% of total revenue during the year ended December 31, 2016, 2017 and 2018, respectively. Company C is subsidiary of a company controlled by one of the Group’s shareholders (see note 22). For the years ended December 31, 2016 2017 2018 RMB RMB RMB Company C 1,448,960(93.1%) 1,773,595(86.6%) 2,798,824 (76.8%) Total 1,448,960(93.1%) 1,773,595(86.6%) 2,798,824 (76.8%) |
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, 2018, 38.6% 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 On January 1, 2018, the Group adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Group applied the five-step method outlined in Topic 606 to all revenue streams and elected to adopt the standard using the modified retrospective method. The additional disclosures required by the ASU have been included in Note 2 and Note 13. The adoption of Topic 606 did not have a significant impact on revenue recognized on sales from the Group's self-branded products; however, it did have a significant impact on revenue recognized on sales under the Group's cooperation agreement with one customer. Under the accounting standards in effect in the prior period, the second instalment payment in the Group'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 Topic 606, revenue related to the second instalment payment in the Group's cooperation agreement is considered variable consideration and the amount determined to be not probable of significant future reversal, which is the entire second instalment amount, is included in the transaction price utilizing the expected value method. As a result of the adoption, the Group recognized the following impact for the year ended and as of December 31, 2018: For the year ended December 31, Under ASC 605 Impact Under ASC 606 RMB RMB RMB Revenue 3,645,385 (50 ) 3,645,335 Amount due from related parties 623,120 33,279 656,399 Retained earnings at beginning 131,192 33,329 164,521 2. SIGNIFICANT ACCOUNTING POLICIES - continued The adoption of the standard had no impact to net cash from or used in operating, investing, or financing activities in the Group’s consolidated statement of cash flows. Please refer to Note 13 for more information on disaggregate of revenue with customers. 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. ASU 2016-01 was further amended in February 2018 by ASU 2018-03, "Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This update was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in ASU 2016-01. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. ASU 2016-01 and ASU 2018-03 are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. 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 has adopted the new standard as of January 1, 2018, which did not result in a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The purpose of ASU 2017-01 is to change the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. ASU 2017-01 became effective for the Company on January 1, 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Recent accounting pronouncements not yet adopted 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 companies, 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 July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and nonlease components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the financial statements. The Group is in the process of completing its evaluation of the effect of the adoption of this ASU and expects the adoption will result in an increase in the assets and liabilities on the consolidated balance sheet for the operating leases and will have insignificant impact on its consolidated statements of operations and cash flows. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequently in November 2018, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. The ASUs amend the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In addition, these amendments require the measurement of all expected credit losses for financial assets, including trade accounts receivable, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This guidance and related amendments is effective for annual reporting periods beginning after December 15, 2019, including interim periods therein. Early application is permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Group is currently assessing the impact this guidance will have on its consolidated financial statements. 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 entities, the amendments are effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019. For public entities, 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 2. SIGNIFICANT ACCOUNTING POLICIES - continued 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. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement ("ASC 820") . ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. ASU 2018-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. An entity is permitted to early adopt by modifying existing disclosures and delay adoption of the additional disclosures until the effective date. The Group is evaluating the effect that adoption of this guidance will have on its consolidated financial statements and related disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Subsidiaries and VIEs | As of December 31, 2018, 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”) U.S. June 16, 2016 100% DingShow Cayman Islands October 10, 2018 100% Bitinno Technologies Inc. ("Bitinno") U.S. November 26, 2018 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 Oclean Information Technology Co., Ltd. ("HK Yunding") HK March 7, 2017 VIE’s subsidiary |
Schedule of Financial Statement Amounts and Balances of VIEs | 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, 2017 2018 RMB RMB Total current assets 1,178,273 2,202,009 Total non-current assets 129,588 191,522 Total assets 1,307,861 2,393,531 Total current liabilities 809,653 1,329,010 Total non-current liabilities 10,486 61,211 Total liabilities 820,139 1,390,221 For the years ended December 31, 2016 2017 2018 RMB RMB RMB Revenues 1,552,340 2,042,640 3,638,560 Net income 269,162 327,101 643,239 For the years ended December 31, 2016 2017 2018 RMB RMB RMB Net cash provided by operating activities 15,316 248,642 712,210 Net cash used in investing activities (81,954 ) (19,643 ) (72,862 ) Net cash provided by financing activities 17,500 20,000 (13,221 ) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |
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 is as below: As of December 31, 2017 2018 RMB RMB Company A 18,782(57.1%) 10,600(18.0%) Company B — 25,264(42.9%) Total 18,782(57.1%) 35,864(60.9%) Amount due from related parties concentration of credit risk is as below: As of December 31, 2017 2018 RMB RMB Company C 566,732(98.0%) 631,204(96.2%) Total 566,732(98.0%) 631,204(96.2%) 2. SIGNIFICANT ACCOUNTING POLICIES - continued Concentration of credit risk – continued Revenue generated from Company C accounted for 93.1%, 86.6% and 76.8% of total revenue during the year ended December 31, 2016, 2017 and 2018, respectively. Company C is subsidiary of a company controlled by one of the Group’s shareholders (see note 22). For the years ended December 31, 2016 2017 2018 RMB RMB RMB Company C 1,448,960(93.1%) 1,773,595(86.6%) 2,798,824 (76.8%) Total 1,448,960(93.1%) 1,773,595(86.6%) 2,798,824 (76.8%) |
ASU 2014-09 | |
Significant Accounting Policies [Line Items] | |
Impact to Revenue, Accounts Receivable, Deferred Revenue, and Accrued Liabilities as Result of Applying ASU 2014-09 | The adoption of Topic 606 did not have a significant impact on revenue recognized on sales from the Group's self-branded products; however, it did have a significant impact on revenue recognized on sales under the Group's cooperation agreement with one customer. Under the accounting standards in effect in the prior period, the second instalment payment in the Group'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 Topic 606, revenue related to the second instalment payment in the Group's cooperation agreement is considered variable consideration and the amount determined to be not probable of significant future reversal, which is the entire second instalment amount, is included in the transaction price utilizing the expected value method. As a result of the adoption, the Group recognized the following impact for the year ended and as of December 31, 2018: For the year ended December 31, Under ASC 605 Impact Under ASC 606 RMB RMB RMB Revenue 3,645,385 (50 ) 3,645,335 Amount due from related parties 623,120 33,279 656,399 Retained earnings at beginning 131,192 33,329 164,521 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: As of December 31, 2017 2018 RMB RMB Raw materials 169,665 191,242 Work in process 30,195 33,714 Finished goods 49,875 259,666 Total 249,735 484,622 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 RMB RMB Convertible bonds: Zepp International Limited (“Zepp”) (a) 6,513 — Shenzhen Snowball Technology Co., Ltd (“Snowball”) (b) — 16,243 Guangzhou Joyrun Technology Co., Ltd (“Joyrun”) (c) — 10,751 Abee Semi, Inc.("Abee") (d) 7,208 8,097 Others (e) — 15,391 Total: 13,721 50,482 (a) In December 2017, the Group invested RMB6,506 to purchase a convertible bond issued by Zepp, with a 10% interest rate and nine months maturity. During the year ended December 31, 2018, the Group and Zepp entered into a supplementary agreement where Zepp transferred certain patents to the Group in exchange for the extinguishment of the convertible bond. The Group recorded the acquisition of patents at fair value which resulted in an immaterial gain recorded in the consolidated financial statements. (b) In June 2018, the Group invested RMB 20,000 to acquire a convertible bond from Snowball. The convertible bond includes a 4.35% interest rate and has one-year maturity. As part of the agreement, the Group will also receive two years of free services about the connection to the city transportation system for the Amazfit NFC products from Snowball. The fair value of the service is insignificant and is amortized over the service period. Unrealized gains of RMB443 arise from fair value change of the investment was reported in other comprehensive income during the year ended December 31, 2018. (c) In September 2018, the Group invested RMB10,500 to acquire a convertible bond issued by Joyrun with a 8% interest rate and a one-year maturity. The investment was classified as an available-for-sale investment and measured at fair value. The group recognized RMB251 unrealized holding gains in other comprehensive income from the fair value changes in the investment during the year ended December 31, 2018. (d) In June 2016, the Group invested RMB6,937 to acquire a convertible bond from Abee. The convertible bond includes a 7% interest rate and has 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 RMB10 and RMB889 was reported in other comprehensive income during the years ended December 31, 2017 and 2018, respectively. (e) The others represent several insignificant short-term investments in convertible bonds which are classified as available-for-sales investments and measured at fair value. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | As of December 31, 2017 2018 RMB RMB Deferred IPO expense 13,268 — Value-added tax 13,170 19,542 Short-term loans 11,857 14,559 Advances to suppliers 5,128 8,359 Other receivables 4,656 8,049 Rental deposits 1,969 4,474 Prepaid expenses 1,014 3,264 Total 51,062 58,247 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 RMB RMB Software and electronic equipment 7,092 14,453 Buildings 18,592 19,342 Leasehold improvements 9,327 10,404 Total 35,011 44,199 Less: accumulated depreciation (6,256 ) (12,029 ) Construction in progress — 7,872 Property, plant and equipment, net 28,755 40,042 |
Intangible Assets,Net (Tables)
Intangible Assets,Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets, net, consisted of the following: As of December 31, 2017 2018 RMB RMB Intangible assets with indefinite lives: Domain name 1,222 1,222 Intangible assets with finite lives: Patents 4,304 63,130 Less: accumulated amortization (187 ) (630 ) Intangible assets, net 5,339 63,722 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Long-Term Investments | Long-term investments consisted of the following: As of December 31, 2017 2018 RMB RMB Equity securities without readily determinable fair value Sifive, Inc. ("Sifive") (a) — 20,192 Greenwaves Technologies ("Greenwaves") (b) — 19,906 Other equity securities without readily determinable fair value (c) 750 16,501 Equity method investments: Hefei Huaying Xingzhi Fund Partnership (limited partnership) (“Huaying Fund”) (d) 55,905 56,898 Other equity method investments (e) 8,097 11,283 Available-for-sale investments Sunny Infinity Ltd. ("Sunny") (f) — 49,091 Other available-for-sale investments (g) 20,486 35,078 Total 85,238 208,949 (a) In April 2018 and December 2018, the Group invested RMB8,602 and RMB3,730 to acquire 1.01% equity interests in the form of equity securities in Sifive. Sifive is a private company engaging in the business of semiconductor. The equity interest is not considered in-substance common shares due to substantial liquidation preference rights. Accordingly, the investment in Sifive was accounted for as equity securities without readily determinable fair value. The Group recorded RMB7,860 gain from the fair value change of the investment, arising from observable price changes during the year ended December 31, 2018. ( b ) In December 2018, the Group invested RMB19,906 to acquire 8.33% equity interests in Greenwaves. Greenwaves is a private company engaging in the business of semiconductor. The equity interest is not considered in-substance common shares due to substantial liquidation preference rights. Accordingly, the investment in Greenwaves was accounted for as equity securities without readily determinable fair value. For the year ended 2018, there are no observable fair value changes on the investment noted. ( c ) Investments represent certain insignificant investments in third-party private companies, which the Group has no significant influence over the investees. Prior to 2018, the Group accounted for the investment using the cost method. In 2018, those investments are accounted for using the measurement alternative method. ( d ) In August 2016, the Group invested RMB50,000 to acquire 49.5% equity interests in a limited partnership, Huaying Fund, a fund engaged in 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 through its board seat in the Fund but does not have a majority equity interest or otherwise control. ( e ) 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, 2018. 9. LONG-TERM INVESTMENTS - continued ( f ) During the year ended December 31, 2018, the Group subscribed certain equity interest in Sunny for a total investment amount of RMB49,091. Sunny is a company established for the sole purpose of making investments in certain start-up and early stage companies in the technology industry. The Group holds an aggregate of 23% equity interests in Sunny and enjoys a redemption right. The investment was classified as available-for-sale investment as the Group determined the interests were debt security and measured at fair value. No fair value change was recognized for the year ended December 31, 2018. ( g ) The other available-for-sale investments represent the investments in debt securities and measured at fair value, which mainly include the investments in convertible bonds and the investments with redemption features. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [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, 2017 and 2018, the financial assets and liabilities measured at fair value on a recurring basis mainly consist of the available-for-sale investments, such as the convertible bonds and redeemable preferred shares, which are recorded in short-term and long-term investments. The fair value hierarchy of these investments as of December 31, 2017 and 2018 are as follows: 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 As of December 31, 2018 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 — 50,482 — 50,482 Redeemable preferred shares — 84,169 — 84,169 Total: — 134,651 — 134,651 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2017 2018 RMB RMB Accrued payroll and welfare 30,207 83,925 Product warranty 8,431 55,599 Deferred revenue 17,876 41,863 Accrued expenses 3,943 6,107 Other tax payable 6,569 4,727 Accrued professional fee 13,268 3,945 Other current liabilities 13,504 17,809 Total 93,798 213,975 |
Summary of Product Warranty Activities | Product warranty activities were as follows: Product Warranty RMB Balance as of January 1, 2016 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 Provided during the year 68,866 Utilized during the year (21,698 ) Balance at December 31, 2018 55,599 |
Revenue and Deferred Revenues (
Revenue and Deferred Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue with Reportable Segments | The following table provides information about disaggregated revenue by products, including a reconciliation of the disaggregated revenue with reportable segments For the year ended, December RMB Xiaomi Wearable products 2,439,534 Self-branded Products and Others 1,205,801 Total Revenue 3,645,335 |
Deferred Revenue and Refund Liability From Contracts with Customers | The following table provides information about receivables, deferred revenue and refund liability from contracts with customers 2018 RMB Accounts Receivables 58,925 Amounts due from related parties 656,399 Deferred revenue 41,863 Refund liability (sales return) 153 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 2017 2018 RMB RMB RMB Current tax expenses 21,556 46,573 84,931 Deferred tax benefits (18,468 ) (18,962 ) (32,895 ) Income tax expense 3,088 27,611 52,036 |
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, 2017 2018 RMB RMB Deferred tax assets Accrued expenses 7,919 28,585 Net operating loss carry forwards 33,976 46,447 Total deferred tax assets 41,895 75,032 Less: valuation allowance — — Deferred tax assets, net 41,895 75,032 |
Schedule of Income Tax Expense Reconciliation | Reconciliation between the income tax expense computed by applying the PRC enterprise tax rate of 25% to income before income tax and actual provision were as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Income before income tax 28,863 191,900 386,613 Tax expense at PRC enterprise income tax rate of 25% 7,216 47,975 96,653 Income tax on tax holidays (16,533 ) (30,740 ) (58,327 ) Tax effect of permanence differences (621 ) (8,190 ) (22,733 ) Effect of income tax rate differences in jurisdictions other than the PRC 13,026 14,364 36,443 Change in tax rate — 4,202 — Income tax expense 3,088 27,611 52,036 |
Preferred Shares (Tables)
Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Change in Balance of Series Preferred Included in Mezzanine Equity | The change in the balance of Series Preferred included in mezzanine equity during the years ended December 31, 2016, 2017 and 2018 are as follows: Series A Preferred Series B-1 Preferred Series B-2 Preferred RMB RMB RMB Balance as of January 1, 2016 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 Accretion of Preferred A shares 177 — — Accretion of Preferred B shares — 368 4,049 Conversion to ordinary shares (26,947 ) (27,274 ) (299,991 ) Balance as of December 31, 2018 — — — |
Share-Based Payment (Tables)
Share-Based Payment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016, 2017 and 2018 are summarized in the following table: For the years ended December 31, 2016 2017 2018 Risk-free interest rate 1.62%-2.85% 2.2 % 2.04%-2.83% Expected volatility 46.2 % 49.0 % 36%-52.5% Expected life of option (years) 10 9.76-10 1-10 Expected dividend yield 0.0 % 0.0 % 0.00 % Fair value per ordinary share 7.5 12.56 15.03-16.85 |
Summary of Stock Option Activity | A summary of the stock option activity under the 2015 and 2018 Plan during the year ended December 31, 2018 is included in the table below. Options granted Share Number Weighted average exercise price per option US$ Outstanding at January 1, 2018 7,338,559 0.16 Granted 6,988,469 0.35 Exercised 774,325 0.66 Cancelled and forfeited 209,473 0.15 Outstanding at December 31, 2018 13,343,230 0.23 |
Summary of Share Options Granted | The following table summarizes information regarding the share options granted December 31, 2018: December 31, 2018 Options Number Weighted- average exercise price per option Weighted- average remaining exercise contractual life (years) Aggregate intrinsic value US$ US$ Options Outstanding 13,343,230 0.23 8.38 29,776 Exercisable 6,582,663 0.13 7.42 15,308 Expected to vest 6,760,567 0.32 9.31 14,468 |
Summary of Restricted Stock Units Activity | A summary of the restricted stock units activity during the year ended December 31, 2018 is presented below: RSUs Unvested balance at January 1, 2018 2,298,775 Granted 658,056 Cancelled and forfeited 162,750 Vested (a) 2,231,168 Unvested balance at December 31, 2018 562,913 (a) In January 2018, the Group amended and accelerated the vesting schedule of 1,700,000 previously granted restricted stock units which became immediately and fully vested. The Group recognized the remaining compensation cost immediate for those restricted stock units upon the modification |
Total Share-based Compensation Recognized | Total share-based compensation recognized was as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB General and administrative 55,109 55,804 87,857 Research and development 2,626 6,983 42,167 Selling and Marketing — — 4,271 Cost of revenues — — 414 Total stock-based compensation expense 57,735 62,787 134,709 |
Restricted Shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Units Activity | A summary of the restricted share activity for the year ended December 31, 2016, 2017 and 2018 is presented below: Restricted Shares Outstanding at January 1, 2016 4,378,996 Vested 1,150,718 Outstanding at December 31, 2016 3,228,278 Vested 1,150,718 Outstanding at December 31, 2017 2,077,560 Cancelled and forfeited 411,930 Vested 1,150,718 Outstanding at December 31, 2018 514,912 |
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, 2018 is presented below: Number of shares Outstanding at January 1, 2018 22,783,582 Granted — Forfeited — Vested 11,391,791 Outstanding at December 31, 2018 11,391,791 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 January 1, 2018 2,389 Loss attributed to noncontrolling interest shareholders (3,726 ) Balance as of December 31, 2018 (1,337 ) (a) In July 2017, the Group purchased an additional 22% of Yunding resulting in the Group controlling Yunding with 57% ownership. See Note 3. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 year 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 year 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 For the year ended December 31, 2018 Xiaomi Wearable Products Self-branded products and others Total RMB RMB RMB Revenues 2,439,534 1,205,801 3,645,335 Cost of revenues 1,883,509 822,376 2,705,885 Gross Profit 556,025 383,425 939,450 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 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", together with Xiaomi Communication, Xiaomi Technology, Xiaomi Mobile, as "Xiaomi") Controlled by one of the Company’s shareholders Hefei Huaying Xinzhi Fund Partnership.(Limited Partnership)("Huaying Fund") Long-term investee of the Group Hangzhou Yunyou Technology Co. Ltd.("Hanzhou Yunyou") Significant influence by one of the Company’s shareholders |
Summary of Amount Due from/to Related Parties | As of December 31, 2017 2018 RMB RMB Amount due from related parties: Xiaomi Communication (a) 566,732 631,204 Xiaomi Information (a) 908 9,727 Xiaomi Technology (a) — 7,442 Hangzhou Yunyou (b) — 5,143 Others (c) 10,814 2,883 Total 578,454 656,399 22. RELATED PARTY BALANCES AND TRANSACTIONS – CONTINUED (1) Balances continued As of December 31, 2017 2018 RMB RMB Amount due to related parties, current: Huaying Fund (3,061 ) — Xiaomi Mobile (d) (4,752 ) (10,350 ) Others (330 ) (345 ) Total (8,143 ) (10,695 ) Amount due to related party, non-current: Huaying Fund (3,076 ) — Total (3,076 ) — (a) The amount due from Xiaomi represents receivables from the sales of products and services. ( b ) In 2018, the group provided a RMB 5,000 loan to Hangzhou Yunyou, with annual interest of 15% and maturing in April 2019. ( c ) The amount due from others mostly represents the withholding tax receivables from certain management paid by the Group on behalf of them in 2017, which has been collected in 2018. (d ) The amount due to Xiaomi Mobile represents the payable expense for cloud service provided by Xiaomi Mobile ( e ) The Group disposed five long-term investments and one long-term investment to Huaying Fund and recorded RMB284 and RMB31 gain during the years ended December 31, 2017 and 2018, respectively. |
Summary of Sales to Related Parties | (2) Transactions: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Sales to related parties: Xiaomi Communication 1,448,960 1,773,595 2,798,824 Xiaomi Information — 1,318 17,859 Xiaomi Technology 711 2,072 — Others 256 1,655 312 Total 1,449,927 1,778,640 2,816,995 |
Summary of Other to Related Party | For the years ended December 31, 2016 2017 2018 RMB RMB RMB Others: Loan provided to related parties (b) 16,071 (8,000 ) 5,143 Investments disposed to a related party (e) — 22,047 3,061 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Profit Attributable to Owners | For the years ended December 31, 2016 2017 2018 RMB RMB RMB Basic net income per share calculation Numerator: Net income for the year attributable to the Company: 23,946 167,682 340,046 Less: Accretion of Series A Shares 3,209 3,762 177 Less: Accretion of Series B-1 Shares 2,738 3,127 368 Less: Accretion of Series B-2 Shares 30,121 34,382 4,049 Less: Deemed dividend to preferred shareholders — — 209,752 Less: Undistributed earnings allocated to Series A preferred shareholders — 48,753 4,521 Less: Undistributed earnings allocated to Series B-1 preferred shareholders — 1,361 126 Less: Undistributed earnings allocated to Series B-2 preferred shareholders — 14,220 1,319 Less: Undistributed earnings allocated to participating nonvested restricted shares — 15,957 6,244 Net (loss)/income attributed to ordinary shareholders for computing net (loss)/income per ordinary shares—basic (12,122 ) 46,120 113,490 Denominator: Weighted average ordinary shares outstanding used in computing net (loss)/income per ordinary shares – basic 55,612,626 67,777,592 211,873,704 Net (loss)/income per ordinary share attributable to ordinary shareholders—basic (0.22 ) 0.68 0.54 Diluted net (loss)/income per share calculation Net (loss)/income attributable to ordinary shareholders for computing net (loss)/income per ordinary shares—basic (12,122 ) 46,120 113,490 Add: adjustments to undistributed earnings to participating securities — 3,519 648 Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic (12,122 ) 49,639 114,138 Denominator: Weighted average ordinary shares basic outstanding 55,612,626 67,777,592 211,873,704 Effect of potentially diluted stock options, restricted stocks and RSUs — 8,514,309 13,160,946 Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares—dilute 55,612,626 76,291,901 225,034,650 Net (loss) income per ordinary share attributable to ordinary shareholders—diluted (0.22 ) 0.65 0.51 |
Summary of Anti-dilutive Securities Excluded from Calculation of Diluted Net (Loss)/Income Per Ordinary Shares | For the year ended December 31, 2016, 2017 and 2018, 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 year presented: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Shares issuable upon exercise of share options, restricted stocks and RSUs 11,891,695 12,683,366 705,407 Shares issuable upon vesting of nonvested restricted shares 34,175,372 23,450,173 11,657,620 Shares issuable upon conversion of Series A shares 71,641,792 71,641,792 — Shares issuable upon conversion of Series B-1 shares 2,000,000 2,000,000 — Shares issuable upon conversion of Series B-2 shares 20,895,523 20,895,523 — |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Lease Commitments | Future minimum payments under lease commitments as of December 31, 2018 were as follows: RMB 2019 16,333 2020 6,648 2021 and after 3,171 26,152 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥)Customer | Dec. 31, 2017CNY (¥)Customer | Dec. 31, 2016Customer | |
Variable Interest Entity [Line Items] | |||
Number of major customer | During the year ended December 31, 2016, 2017 and 2018, the Group derived over 65% 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 | 29.50% | ||
Beijing Shun Yuan Kai Hua Technology Company Limited | Anhui Huami Intelligent Technology Company Limited | Eliminations | |||
Variable Interest Entity [Line Items] | |||
Intercompany payable | ¥ | ¥ 68,713 | ¥ 44,420 | |
Customer Concentration Risk | Sales Revenue Net | Minimum | |||
Variable Interest Entity [Line Items] | |||
Concentration risk, percentage | 65.00% | 65.00% | 65.00% |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Subsidiaries and VIEs (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 | U.S. |
Date of incorporation/acquisition | Jun. 16, 2016 |
Percentage of ownership | 100.00% |
DingShow | |
Schedule Of Investments [Line Items] | |
Place of incorporation | Cayman Islands |
Date of incorporation/acquisition | Oct. 10, 2018 |
Percentage of ownership | 100.00% |
Bitinno Technologies Inc. ("Bitinno") | |
Schedule Of Investments [Line Items] | |
Place of incorporation | U.S. |
Date of incorporation/acquisition | Nov. 26, 2018 |
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 |
Oclean Information Technology Co., Ltd. ("HK Yunding") | |
Schedule Of Investments [Line Items] | |
Place of incorporation | HK |
Date of incorporation/acquisition | Mar. 7, 2017 |
Variable interest entity, nature of VIE | VIE’s subsidiary |
Organization and Principal Ac_5
Organization and Principal Activities - Schedule of Financial Statement Amounts and Balances of VIEs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | |||||
Total current assets | ¥ 2,857,456 | ¥ 1,295,360 | $ 415,600 | ||
Total assets | 3,258,481 | 1,465,517 | 473,927 | ||
Total current liabilities | 1,387,692 | 877,249 | 201,831 | ||
Total liabilities | 1,448,903 | 887,735 | $ 210,734 | ||
Revenues | 3,645,335 | 2,048,896 | ¥ 1,556,476 | ||
Net income | 340,046 | $ 49,457 | 167,682 | 23,946 | |
Net cash provided by operating activities | 707,605 | 102,917 | 238,336 | 17,266 | |
Net cash used in investing activities | (324,841) | (47,246) | (38,881) | (99,387) | |
Net cash provided by financing activities | 639,170 | $ 92,963 | 20,089 | 10,024 | |
Variable Interest Entities | |||||
Variable Interest Entity [Line Items] | |||||
Total current assets | 2,202,009 | 1,178,273 | |||
Total non-current assets | 191,522 | 129,588 | |||
Total assets | 2,393,531 | 1,307,861 | |||
Total current liabilities | 1,329,010 | 809,653 | |||
Total non-current liabilities | 61,211 | 10,486 | |||
Total liabilities | 1,390,221 | 820,139 | |||
Revenues | 3,638,560 | 2,042,640 | 1,552,340 | ||
Net income | 643,239 | 327,101 | 269,162 | ||
Net cash provided by operating activities | 712,210 | 248,642 | 15,316 | ||
Net cash used in investing activities | (72,862) | (19,643) | (81,954) | ||
Net cash provided by financing activities | ¥ (13,221) | ¥ 20,000 | ¥ 17,500 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Dec. 31, 2018CNY (¥)¥ / $ | Dec. 31, 2018CNY (¥)Installment¥ / Unit¥ / $ | Dec. 31, 2017CNY (¥)¥ / Unit | Dec. 31, 2016CNY (¥)¥ / Unit | Dec. 31, 2018USD ($)¥ / $ | |
Significant Accounting Policies [Line Items] | ||||||
Impairment loss related to other intangible assets arising from acquisitions | ¥ 0 | ¥ 0 | ¥ 0 | |||
Impairment loss related to goodwill | ¥ 0 | 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 40% or 60% of the face value of the bank acceptance notes issued as collateral. | |||||
Accounts receivable, allowance | ¥ 0 | ¥ 0 | 0 | |||
Inventory write-down | 0 | 2,449,000 | 1,037,000 | |||
Impairment loss on equity securities without readily determinable fair value | 0 | 0 | 0 | |||
Impairment losses on equity method Investments | 4,133,000 | 0 | 0 | |||
Impairment losses on available- for-sale investments | ¥ 3,457,000 | ¥ 0 | 0 | |||
Revenues recognition period | 9 months | |||||
Number of payment installments from customer | Installment | 2 | |||||
Percentage of second installment payment receivable | 50.00% | |||||
Percentage of installment payments on future net profits | 50.00% | |||||
Value added tax rate | 17.00% | 16.00% | ||||
Warranty term for products sold to one customer | 18 months | |||||
Product warranty term for one customer | 6 months | |||||
Additional warranty term to end users for products sold to one customer | 12 months | |||||
Warranty term for products sold to end users | 12 months | |||||
Government subsidies recognized as income | ¥ 9,679,000 | ¥ 6,719,000 | ¥ 14,726,000 | |||
Government deferred subsidy income, current | ¥ 8,888,000 | 8,888,000 | ||||
Government deferred subsidy income, non-current | 56,249,000 | 56,249,000 | ||||
Cash and cash equivalents | ¥ 1,441,802,000 | ¥ 1,441,802,000 | ¥ 366,336,000 | $ 209,701 | ||
Foreign currency exchange rate | ¥ / $ | 6.8755 | 6.8755 | 6.8755 | |||
Company C | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of net revenues generated during the period | 76.80% | 86.60% | 93.10% | |||
Company D | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of raw materials purchased | 38.60% | |||||
U.S. Dollar Denominated | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | ¥ 513,526,000 | ¥ 513,526,000 | ¥ 66,494,000 | ¥ 98,537,000 | ||
Selling and Marketing Expenses | ||||||
Significant Accounting Policies [Line Items] | ||||||
Advertising Expense | 25,362,000 | 7,586,000 | 13,474,000 | |||
General and Administrative Expenses | ||||||
Significant Accounting Policies [Line Items] | ||||||
Transaction (losses)/gains | ¥ (7,588,000) | ¥ 779,000 | ¥ (5,773,000) | |||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Second installment receivable period | 30 days | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Second installment receivable period | 45 days | |||||
Smart Wearable Devices | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of sales revenue | 66.90% | 78.80% | 92.10% | |||
Self-branded products and others | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of sales revenue | 33.10% | 21.20% | 7.90% | |||
Software Services | ||||||
Significant Accounting Policies [Line Items] | ||||||
Best estimated selling price | ¥ / Unit | 1.77 | |||||
Software Services | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Best estimated selling price | ¥ / Unit | 0.43 | 0.43 | ||||
Software Services | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Best estimated selling price | ¥ / Unit | 2.82 | |||||
Software Upgrades | ||||||
Significant Accounting Policies [Line Items] | ||||||
Best estimated selling price | ¥ / Unit | 5.68 | |||||
Software Upgrades | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Best estimated selling price | ¥ / Unit | 1.30 | 1.30 | ||||
Software Upgrades | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Best estimated selling price | ¥ / Unit | 5.69 | |||||
Trademark and Patents | ||||||
Significant Accounting Policies [Line Items] | ||||||
Amortization period | 10 years | |||||
Measurement Input, Discount Rate | ||||||
Significant Accounting Policies [Line Items] | ||||||
Discount rate | 0.22 | 0.22 | 0.22 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 Polici_6
Significant Accounting Policies - Account Receivable Concentration of Credit Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | |
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 58,925 | ¥ 32,867 | $ 8,570 |
Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 35,864 | ¥ 18,782 | |
Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 60.90% | 57.10% | |
Customer Concentration Risk | Company A | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 10,600 | ¥ 18,782 | |
Customer Concentration Risk | Company A | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% | 57.10% | |
Customer Concentration Risk | Company B | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 25,264 | ||
Customer Concentration Risk | Company B | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 42.90% |
Significant Accounting Polici_7
Significant Accounting Policies - Related Parties Concentration of Credit Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | |
Concentration Risk [Line Items] | |||
Amounts due from related parties | ¥ 656,399 | ¥ 578,454 | $ 95,469 |
Amount Due from Related Parties | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Amounts due from related parties | ¥ 631,204 | ¥ 566,732 | |
Concentration risk, percentage | 96.20% | 98.00% | |
Amount Due from Related Parties | Credit Concentration Risk | Company C | |||
Concentration Risk [Line Items] | |||
Amounts due from related parties | ¥ 631,204 | ¥ 566,732 | |
Concentration risk, percentage | 96.20% | 98.00% |
Significant Accounting Polici_8
Significant Accounting Policies - Revenue Generated from Related Parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Revenues | ¥ 3,645,335 | ¥ 2,048,896 | ¥ 1,556,476 |
Sales Revenue Net | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Revenues | ¥ 2,798,824 | ¥ 1,773,595 | ¥ 1,448,960 |
Concentration risk, percentage | 76.80% | 86.60% | 93.10% |
Sales Revenue Net | Credit Concentration Risk | Company C | |||
Concentration Risk [Line Items] | |||
Revenues | ¥ 2,798,824 | ¥ 1,773,595 | ¥ 1,448,960 |
Concentration risk, percentage | 76.80% | 86.60% | 93.10% |
Significant Accounting Polici_9
Significant Accounting Policies - Impact to Revenue, Accounts Receivable, Deferred Revenue, and Accrued Liabilities as Result of Applying ASU 2014-09 (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Jan. 01, 2018CNY (¥) | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Revenue | ¥ 3,645,335 | $ 530,192 | ¥ 2,048,896 | ¥ 1,556,476 | ||
Amounts due from related parties | 656,399 | 578,454 | $ 95,469 | |||
Retained earnings at beginning | 340,046 | 131,192 | $ 49,457 | ¥ 164,521 | ||
ASC 606 | Under ASC 605 | ||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Revenue | 3,645,385 | |||||
Amounts due from related parties | 623,120 | |||||
Retained earnings at beginning | ¥ 131,192 | |||||
ASC 606 | Impact | ||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Revenue | (50) | |||||
Amounts due from related parties | ¥ 33,279 | |||||
Retained earnings at beginning | ¥ 33,329 |
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, 2018 | 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% | 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 - Summa_2
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 - Summa_3
Business Acquisitions - Summary of Purchase Price Allocation (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||
Jul. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Intangible assets | ||||
Goodwill | ¥ 5,930 | $ 862 | ¥ 5,930 | |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Inventory Disclosure [Abstract] | |||
Raw materials | ¥ 191,242 | ¥ 169,665 | |
Work in process | 33,714 | 30,195 | |
Finished goods | 259,666 | 49,875 | |
Total | ¥ 484,622 | $ 70,485 | ¥ 249,735 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Write down of obsolete inventory | ¥ 0 | ¥ 2,449 | ¥ 1,037 |
Short Term Investments - Schedu
Short Term Investments - Schedule of Short-Term Investment Included Convertible Bonds (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Convertible bonds: | |||
Total: | ¥ 50,482 | $ 7,342 | ¥ 13,721 |
Convertible Bond | Zepp International Limited | |||
Convertible bonds: | |||
Convertible bonds | 6,513 | ||
Convertible Bond | Shenzhen Snowball Technology Co., Ltd., (“Snowball”) | |||
Convertible bonds: | |||
Convertible bonds | 16,243 | ||
Convertible Bond | Guangzhou Joyrun Technology Co., Ltd. (“Joyrun”) | |||
Convertible bonds: | |||
Convertible bonds | 10,751 | ||
Convertible Bond | Abee Semi, Inc. (“Abee”) | |||
Convertible bonds: | |||
Convertible bonds | 8,097 | ¥ 7,208 | |
Convertible Bond | Others | |||
Convertible bonds: | |||
Convertible bonds | ¥ 15,391 |
Short Term Investments - Sche_2
Short Term Investments - Schedule of Short-Term Investment Included Convertible Bonds (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018CNY (¥) | Jun. 30, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 41,300 | $ 6,007 | ¥ 6,506 | ¥ 8,937 | ||||
Unrealized gain on available-for-sale investments | 14,684 | $ 2,136 | 9,484 | 303 | ||||
Unrealized gain on available-for-sale investments and others, tax effect | 2,250 | 1,554 | ¥ 0 | |||||
Convertible Bond | Zepp International Limited | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 6,506 | |||||||
Interest rate | 10.00% | |||||||
Maturity term | 9 months | |||||||
Convertible Bond | Shenzhen Snowball Technology Co., Ltd., (“Snowball”) | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 20,000 | |||||||
Interest rate | 4.35% | |||||||
Maturity term | 1 year | |||||||
Servicing fees term | 2 years | |||||||
Unrealized gain on available-for-sale investments | ¥ 443 | |||||||
Convertible Bond | Joyrun | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 10,500 | |||||||
Interest rate | 8.00% | |||||||
Maturity term | 1 year | |||||||
Unrealized gain on available-for-sale investments and others, tax effect | ¥ 251 | |||||||
Convertible Bond | Abee Semi, Inc. (“Abee”) | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Invested to acquire convertible bond | ¥ 6,937 | |||||||
Interest rate | 7.00% | |||||||
Maturity term | 1 year | |||||||
Unrealized gain on available-for-sale investments | 889 | ¥ 10 | ||||||
Convertible Bond | Others | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Unrealized gain on available-for-sale investments | ¥ 391 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Prepaid Expense And Other Assets Current [Abstract] | |||
Deferred IPO expense | ¥ 13,268 | ||
Value-added tax | ¥ 19,542 | 13,170 | |
Short-term loans | 14,559 | 11,857 | |
Advances to suppliers | 8,359 | 5,128 | |
Other receivables | 8,049 | 4,656 | |
Rental deposits | 4,474 | 1,969 | |
Prepaid expenses | 3,264 | 1,014 | |
Total | ¥ 58,247 | $ 8,473 | ¥ 51,062 |
Property, Plant And Equipment_3
Property, Plant And Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 44,199 | ¥ 35,011 | |
Less: accumulated depreciation | (12,029) | (6,256) | |
Property, plant and equipment, net | 40,042 | $ 5,824 | 28,755 |
Software and Electronic Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 14,453 | 7,092 | |
Building | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 19,342 | 18,592 | |
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 10,404 | ¥ 9,327 | |
Construction in Progress | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 7,872 |
Property, Plant And Equipment_4
Property, Plant And Equipment, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | ¥ 5,773 | $ 840 | ¥ 3,542 | ¥ 2,399 |
Impairment charge | ¥ 0 | ¥ 0 | ¥ 0 |
Intangible Assets,Net - Schedul
Intangible Assets,Net - Schedule of Intangible Assets and Goodwill (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Intangible assets with finite lives: | |||
Patents | ¥ 63,130 | ¥ 4,304 | |
Less: accumulated amortization | (630) | (187) | |
Intangible assets, net | 63,722 | $ 9,268 | 5,339 |
Domain name | |||
Intangible assets with indefinite lives: | |||
Domain name | ¥ 1,222 | ¥ 1,222 |
Intangible Assets,Net - Additio
Intangible Assets,Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Finite Lived Intangible Assets [Line Items] | ||||
Purchase of intangible assets | ¥ 52,017 | $ 7,566 | ¥ 88 | ¥ 1,223 |
Amortization of intangible assets | 443 | $ 65 | ¥ 175 | |
2019 | 6,313 | |||
2020 | 6,313 | |||
2021 | 6,313 | |||
2022 | 6,313 | |||
2023 | 6,313 | |||
Thereafter | 6,313 | |||
Patents | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase of intangible assets | ¥ 51,470 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Long-Term Investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Schedule Of Investments [Line Items] | |||
Total | ¥ 208,949 | $ 30,390 | ¥ 85,238 |
Other Equity Securities Without Readily Determinable Fair Value | |||
Schedule Of Investments [Line Items] | |||
Available-for-sale securities | 16,501 | 750 | |
Sifive Inc | Equity Securities Without Readily Determinable Fair Value | |||
Schedule Of Investments [Line Items] | |||
Available-for-sale securities | 20,192 | ||
Greenwaves Technologies | Equity Securities Without Readily Determinable Fair Value | |||
Schedule Of Investments [Line Items] | |||
Available-for-sale securities | 19,906 | ||
Huaying Fund | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 56,898 | 55,905 | |
Sunny Infinity Ltd. | |||
Schedule Of Investments [Line Items] | |||
Available-for-sale investments | 49,091 | ||
Other Equity Method Investments | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 11,283 | 8,097 | |
Other Available For Sale Investments | |||
Schedule Of Investments [Line Items] | |||
Available-for-sale investments | ¥ 35,078 | ¥ 20,486 |
Long-Term Investments - Sched_2
Long-Term Investments - Schedule of Long-Term Investments (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 30, 2018 | Aug. 31, 2016 | |
Sifive Inc | Equity Securities Without Readily Determinable Fair Value | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | ¥ 3,730 | ¥ 8,602 | |
Equity method investment, ownership percentage | 1.01% | ||
Equity method investments, change in fair value | ¥ 7,860 | ||
Greenwaves Technologies | Equity Securities Without Readily Determinable Fair Value | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | ¥ 19,906 | ||
Equity method investment, ownership percentage | 8.33% | ||
Huaying Fund | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | ¥ 50,000 | ||
Equity method investment, ownership percentage | 49.50% | ||
Sunny Infinity Ltd. | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | ¥ 49,091 | ||
Equity method investment, ownership percentage | 23.00% | ||
Equity method investments, change in fair value | ¥ 0 |
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) - Convertible Bonds - Recurring Basis - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | ¥ 134,651 | ¥ 34,207 |
Redeemable Preferred Shares | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 84,169 | 20,077 |
Significant Other Observable Inputs Level 2 | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 134,651 | 34,207 |
Significant Other Observable Inputs Level 2 | Redeemable Preferred Shares | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 84,169 | 20,077 |
Convertible Bond | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | 50,482 | 14,130 |
Convertible Bond | Significant Other Observable Inputs Level 2 | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Available-for-sale investments | ¥ 50,482 | ¥ 14,130 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Fair Value Disclosures [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 | |
Impairment charge | ¥ 7,590,000 | $ 1,104 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Payables And Accruals [Abstract] | |||||
Accrued payroll and welfare | ¥ 83,925 | ¥ 30,207 | |||
Product warranty | 55,599 | 8,431 | ¥ 4,870 | ¥ 4,275 | |
Deferred revenue | 41,863 | 17,876 | |||
Accrued expenses | 6,107 | 3,943 | |||
Other tax payable | 4,727 | 6,569 | |||
Accrued professional fee | 3,945 | 13,268 | |||
Other current liabilities | 17,809 | 13,504 | |||
Total | ¥ 213,975 | $ 31,121 | ¥ 93,798 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Summary of Product Warranty Activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Guarantees And Product Warranties [Abstract] | |||
Beginning balance | ¥ 8,431 | ¥ 4,870 | ¥ 4,275 |
Provided during the year | 68,866 | 23,093 | 14,153 |
Utilized during the year | (21,698) | (19,532) | (13,558) |
Ending balance | ¥ 55,599 | ¥ 8,431 | ¥ 4,870 |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cost of Revenue | |||
Product Warranty Liability [Line Items] | |||
Warranty costs recorded | ¥ 68,866 | ¥ 23,093 | ¥ 14,153 |
Bank Borrowing - Additional Inf
Bank Borrowing - Additional Information (Details) ¥ in Thousands, $ in Thousands | Apr. 02, 2018CNY (¥) | Jan. 04, 2017CNY (¥) | Dec. 22, 2016CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Short Term Debt [Line Items] | ||||||
Bank borrowings | ¥ 20,000 | $ 2,909 | ¥ 30,000 | |||
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 | ¥ 20,000 | ¥ 30,000 | ||||
Bank borrowings, maturity term | 1 year | 1 year | ||||
Bank borrowings, fixed interest rate | 5.00% | 5.00% |
Revenue and Deferred Revenues -
Revenue and Deferred Revenues - Summary of Disaggregated Revenue with Reportable Segments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 3,645,335 | $ 530,192 | ¥ 2,048,896 | ¥ 1,556,476 |
Xiaomi Wearable Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,439,534 | |||
Self-branded Products and Others | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 1,205,801 |
Revenue and Deferred Revenues_2
Revenue and Deferred Revenues - Summary of Deferred Revenue and Refund Liability From Contracts with Customers (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Revenue From Contract With Customer [Abstract] | |||
Accounts receivable (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | ¥ 58,925 | $ 8,570 | ¥ 32,867 |
Amounts due from related parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 656,399 | $ 95,469 | 578,454 |
Deferred revenue | 41,863 | ¥ 17,876 | |
Refund liability (sales return) | ¥ 153 |
Revenue and Deferred Revenues_3
Revenue and Deferred Revenues - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Disaggregation Of Revenue [Line Items] | |
Amount due from related parties, billed receivable | ¥ 623,120,000 |
Amount due from related parties, unbilled receivable | 33,279,000 |
Asset impairment charges | 0 |
Deferred revenue, revenue recognized | 17,876,000 |
Cooperation Agreement | |
Disaggregation Of Revenue [Line Items] | |
Amount due from related parties, billed receivable | ¥ 33,329,000 |
Minimum | |
Disaggregation Of Revenue [Line Items] | |
Terms of Payment | 30 days |
Maximum | |
Disaggregation Of Revenue [Line Items] | |
Terms of Payment | 60 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2016CNY (¥)¥ / shares | |
Income Tax Contingency [Line Items] | |||||
Operating Income (Loss) | ¥ 365,719 | $ 53,191 | ¥ 181,969 | ¥ 13,383 | |
Deferred tax assets, valuation allowance | ¥ 0 | ¥ 0 | 0 | 0 | |
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 RMB16,533, RMB30,740 and RMB58,327, the basic net income per share attributable to the ordinary shareholders of the Company would have decreased by RMB0.30, RMB0.45 and RMB0.28 during the years ended December 31, 2016, 2017 and 2018, respectively, and the diluted net income per share attributable to the ordinary shareholders of the Company would have decreased by RMB0.30, RMB0.45 and RMB0.26 during the years ended December 31, 2016, 2017 and 2018, respectively | If the tax holiday granted to Anhui Huami was not available, the Group’s income tax expense would have increased by RMB16,533, RMB30,740 and RMB58,327, the basic net income per share attributable to the ordinary shareholders of the Company would have decreased by RMB0.30, RMB0.45 and RMB0.28 during the years ended December 31, 2016, 2017 and 2018, respectively, and the diluted net income per share attributable to the ordinary shareholders of the Company would have decreased by RMB0.30, RMB0.45 and RMB0.26 during the years ended December 31, 2016, 2017 and 2018, respectively | |||
If no income tax holiday, increase effect in income tax expense | ¥ 58,327 | ¥ 30,740 | ¥ 16,533 | ||
If no income tax holiday, decrease effect in basic net income per share | ¥ / shares | ¥ 0.28 | ¥ 0.45 | ¥ 0.30 | ||
If no income tax holiday, decrease effect in diluted net income per share | ¥ / shares | ¥ 0.26 | ¥ 0.45 | ¥ 0.30 | ||
Percentage of withholding tax on dividends paid to foreign investors | 10.00% | 10.00% | |||
PRC, Hong Kong and United States | |||||
Income Tax Contingency [Line Items] | |||||
Operating Income (Loss) | ¥ 204,677 | ||||
PRC | |||||
Income Tax Contingency [Line Items] | |||||
Operating Loss Carryforwards | 152,074 | ¥ 152,074 | |||
Operating loss carry forwards carry forward period | 5 years | 5 years | |||
Operating loss carry forwards, expiration start year | 2020 | 2020 | |||
United States | Tax Year 2017 | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carry forwards carry forward period | 20 years | 20 years | |||
United States | Tax Year 2018 | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carry forwards carry forward period | carried forward indefinitely | carried forward indefinitely | |||
PRC Subsidiaries [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax rate | 25.00% | 25.00% | |||
PRC Subsidiaries [Member] | VIEs and VIEs’ Subsidiaries [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax rate | 25.00% | 25.00% | |||
PRC subsidiaries and VIEs | |||||
Income Tax Contingency [Line Items] | |||||
Aggregate undistributed earnings available for distribution | 860,613 | ¥ 860,613 | ¥ 350,251 | ||
Deferred tax liabilities attributable to undistributed earning | ¥ 0 | ¥ 0 | ¥ 0 | ||
High and New Technology Enterprise | Anhui Huami | |||||
Income Tax Contingency [Line Items] | |||||
Income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | |
Hong Kong | First HK$2 million Profit | |||||
Income Tax Contingency [Line Items] | |||||
Income tax rate | 8.25% | ||||
Hong Kong | Over HK$2 million Profit | |||||
Income Tax Contingency [Line Items] | |||||
Income tax rate | 16.50% |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 84,931 | ¥ 46,573 | ¥ 21,556 | |
Deferred tax benefits | (32,895) | $ (4,784) | (18,962) | (18,468) |
Income tax expense | ¥ 52,036 | $ 7,568 | ¥ 27,611 | ¥ 3,088 |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Deferred tax assets | ||||
Accrued expenses | ¥ 28,585 | ¥ 7,919 | ||
Net operating loss carry forwards | 46,447 | 33,976 | ||
Total deferred tax assets | 75,032 | 41,895 | ||
Less: valuation allowance | 0 | 0 | ¥ 0 | |
Deferred tax assets, net | ¥ 75,032 | $ 10,913 | ¥ 41,895 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense Reconciliation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income before income tax | ¥ 386,613 | $ 56,229 | ¥ 191,900 | ¥ 28,863 |
Tax expense at PRC enterprise income tax rate of 25% | 96,653 | 47,975 | 7,216 | |
Income tax on tax holidays | (58,327) | (30,740) | (16,533) | |
Tax effect of permanence differences | (22,733) | (8,190) | (621) | |
Effect of income tax rate differences in jurisdictions other than the PRC | 36,443 | 14,364 | 13,026 | |
Change in tax rate | 4,202 | |||
Income tax expense | ¥ 52,036 | $ 7,568 | ¥ 27,611 | ¥ 3,088 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Expense Reconciliation (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||||
Ordinary shares, shares authorized | 0 | 405,462,685 | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares issued | 0 | 91,304,327 | ||
Ordinary shares, shares outstanding | 0 | 91,304,327 | ||
Class B Ordinary Shares | ||||
Class Of Stock [Line Items] | ||||
Ordinary shares, shares authorized | 200,000,000 | 0 | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares issued | 184,376,679 | 0 | ||
Ordinary shares, shares outstanding | 184,376,679 | 0 | ||
Number of ordinary shares granted to preference shareholders | 12,064,825 | |||
Number of shares entitled | 10 | |||
Class A Ordinary Shares | ||||
Class Of Stock [Line Items] | ||||
Ordinary shares, shares authorized | 9,800,000,000 | 0 | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares issued | 57,303,093 | 0 | ||
Ordinary shares, shares outstanding | 57,303,093 | 0 | ||
Conversion of Series A, B-1 and B-2 preferred shares | 13,359,788 | |||
Number of shares entitled | 1 | |||
Ordinary Shares | ||||
Class Of Stock [Line Items] | ||||
Number of ordinary shares granted to preference shareholders | 12,064,825 | |||
Repurchase of ordinary shares from employees and shareholders | 488,000 | |||
Initial Public Offering | Ordinary Shares | ||||
Class Of Stock [Line Items] | ||||
Issuance of ordinary shares, shares | 41,600,000 | 41,600,000 | ||
Conversion of Series A, B-1 and B-2 preferred shares | 94,537,315 | |||
Initial Public Offering | Ordinary Shares | Class B Ordinary Shares | ||||
Class Of Stock [Line Items] | ||||
Conversion of Series A, B-1 and B-2 preferred shares | 94,537,315 |
Preferred Shares - Additional I
Preferred Shares - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
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 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% |
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: 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; 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 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: 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; 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% |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Series A Preferred Shares | |||
Class Of Stock [Line Items] | |||
Beginning balance | ¥ 26,770 | ¥ 23,008 | ¥ 19,799 |
Accretion of preferred share | 177 | 3,762 | 3,209 |
Conversion to ordinary shares | (26,947) | ||
Ending balance | 26,770 | 23,008 | |
Series B-1 Preferred Shares | |||
Class Of Stock [Line Items] | |||
Beginning balance | 26,906 | 23,779 | 21,041 |
Accretion of preferred share | 368 | 3,127 | 2,738 |
Conversion to ordinary shares | (27,274) | ||
Ending balance | 26,906 | 23,779 | |
Series B-2 Preferred Shares | |||
Class Of Stock [Line Items] | |||
Beginning balance | 295,942 | 261,560 | 231,439 |
Accretion of preferred share | 4,049 | 34,382 | 30,121 |
Conversion to ordinary shares | ¥ (299,991) | ||
Ending balance | ¥ 295,942 | ¥ 261,560 |
Share-Based Payment - Additiona
Share-Based Payment - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Oct. 21, 2015shares | Jan. 31, 2018shares | Apr. 30, 2015shares | Dec. 31, 2018CNY (¥)Installment¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2015shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Equity interests held by founders | 50.00% | ||||||||
Share options granted | 6,817,372 | ||||||||
Total intrinsic value of options exercised | ¥ | ¥ 6,858 | ¥ 1,695 | ¥ 262 | ||||||
Weighted average grant date fair value of options granted | ¥ / shares | ¥ 15.12 | ¥ 11.22 | ¥ 5.67 | ||||||
Unrecognized compensation expenses | ¥ | ¥ 96,369 | ||||||||
Share-based compensation | 134,709 | $ 19,592 | ¥ 62,787 | ¥ 57,735 | |||||
2015 and 2018 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expense | ¥ | ¥ 49,972 | ¥ 4,713 | ¥ 394 | ||||||
Restricted Shares | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of restricted shares held | 514,912 | 2,077,560 | 3,228,278 | 4,378,996 | |||||
Share-based compensation expense | ¥ | ¥ 3,992 | ¥ 6,611 | ¥ 6,499 | ||||||
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 | ¥ | ¥ 118 | ||||||||
Weighted average vesting period over which unrecognized compensation costs is expected to be recognized | 14 days | 14 days | |||||||
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 | |||||||
Share Options | US Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options granted | 140,000 | ||||||||
Share options granted exercise price | $ / shares | $ 0.1 | ||||||||
Share options granted expiration period | 10 years | 10 years | |||||||
Fully vested share options | 500,000 | ||||||||
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 | ¥ | ¥ 40,449 | ||||||||
Share options granted | 1,545,688 | 925,235 | |||||||
Share options granted exercise price | $ / shares | $ 0 | ||||||||
Share options granted expiration period | 10 years | 10 years | |||||||
Share Options | 2018 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expense | ¥ | ¥ 9,523 | ||||||||
Share options granted | 6,988,469 | 6,988,469 | |||||||
Share options granted exercise price | $ / shares | $ 0.35 | ||||||||
Share-based compensation arrangement by share-based payment award, plan modification, description and terms | The number of shares reserved for future issuances under the 2018 Plan will be increased by (i) a number equal to 1.0% of the total number of outstanding shares immediately after IPO, or (ii) such number of shares as may be determined by the board of directors, on the first day of each calendar year during the term under 2018 Plan | The number of shares reserved for future issuances under the 2018 Plan will be increased by (i) a number equal to 1.0% of the total number of outstanding shares immediately after IPO, or (ii) such number of shares as may be determined by the board of directors, on the first day of each calendar year during the term under 2018 Plan | |||||||
Percentage of outstanding number of shares | 1.00% | 1.00% | |||||||
Share Options | 2015 and 2018 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options granted | 6,988,469 | 6,988,469 | |||||||
Share options granted exercise price | $ / shares | $ 0.35 | ||||||||
Share Options | Maximum | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Non-vested shares measured at fair value of ordinary shares | ¥ / shares | ¥ 16.85 | ||||||||
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 | Maximum | 2018 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of ordinary shares to be issued | 9,559,607 | ||||||||
Share Options | Minimum | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Non-vested shares measured at fair value of ordinary shares | ¥ / shares | ¥ 15.03 | ||||||||
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 | 562,913 | 2,298,775 | |||||||
Share-based compensation expense | ¥ | ¥ 134,709 | ¥ 62,787 | ¥ 57,735 | ||||||
Number of restricted shares granted | 1,700,000 | 658,056 | 658,056 | ||||||
Recognized compensation expense service period | 4 years | 4 years | |||||||
Non-vested shares measured at fair value of ordinary shares | ¥ / shares | ¥ 15.87 | ¥ 11.38 | ¥ 5.96 | ||||||
Unrecognized compensation cost | ¥ | ¥ 8,906 | ||||||||
Weighted average vesting period over which unrecognized compensation costs is expected to be recognized | 3 years 4 months 28 days | 3 years 4 months 28 days | |||||||
Aggregate fair value of restricted shares | ¥ | ¥ 41,713 | ||||||||
Share-based compensation | ¥ | ¥ 25,434 | ||||||||
Weighted average grant date fair value | ¥ / shares | ¥ 15.75 | ¥ 12.54 | ¥ 7.5 | ||||||
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 | 11,391,791 | 22,783,582 | ||||||
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 | ¥ | ¥ 55,311 | ¥ 51,463 | ¥ 50,842 | ||||||
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 the 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 | 658,056 | 658,056 | 1,700,000 | 745,500 | |||||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, Outstanding | 2,077,560 | 3,228,278 | 4,378,996 |
Number of shares, Forfeited | 411,930 | ||
Number of shares, Vested | 1,150,718 | 1,150,718 | 1,150,718 |
Number of shares, Outstanding | 514,912 | 2,077,560 | 3,228,278 |
Founders | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, Outstanding | 22,783,582 | ||
Number of shares, Vested | 11,391,791 | ||
Number of shares, Outstanding | 11,391,791 | 22,783,582 |
Share-Based Payment - Summary_2
Share-Based Payment - Summary of Assumptions used to Determine Fair Value of Share Options Granted (Details) - Share Options - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.20% | ||
Risk-free interest rate, minimum | 2.04% | 1.62% | |
Risk-free interest rate, maximum | 2.83% | 2.85% | |
Expected volatility | 49.00% | 46.20% | |
Expected volatility, minimum | 36.00% | ||
Expected volatility, maximum | 52.50% | ||
Expected life of option (years) | 10 years | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value per ordinary share | ¥ 12.56 | ¥ 7.5 | |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life of option (years) | 1 year | 9 years 9 months 3 days | |
Fair value per ordinary share | ¥ 15.03 | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life of option (years) | 10 years | 10 years | |
Fair value per ordinary share | ¥ 16.85 |
Share-Based Payment - Summary_3
Share-Based Payment - Summary of Stock Option Activity (Details) - $ / shares | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted Share Number, Granted | 6,817,372 | |
Share Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted Share Number, Outstanding Ending Balance | 13,343,230 | |
Weighted average exercise price per option, Outstanding Ending Balance | $ 0.23 | |
2015 and 2018 Plan | Share Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted Share Number, Outstanding Beginning Balance | 7,338,559 | 7,338,559 |
Options granted Share Number, Granted | 6,988,469 | |
Options granted Share Number, Exercised | 774,325 | |
Options granted Share Number, Cancelled and forfeited | 209,473 | |
Options granted Share Number, Outstanding Ending Balance | 13,343,230 | |
Weighted average exercise price per option, Outstanding Beginning Balance | $ 0.16 | $ 0.16 |
Weighted average exercise price per option, Granted | 0.35 | |
Weighted average exercise price per option, Exercised | 0.66 | |
Weighted average exercise price per option, Cancelled and forfeited | 0.15 | |
Weighted average exercise price per option, Outstanding Ending Balance | $ 0.23 |
Share-Based Payment - Summary_4
Share-Based Payment - Summary of Share Options Granted (Details) - Share Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Number, Outstanding | shares | 13,343,230 |
Options Number, Exercisable | shares | 6,582,663 |
Options Number, Expected to vest | shares | 6,760,567 |
Weighted average exercise price per option, Outstanding Ending Balance | $ / shares | $ 0.23 |
Weighted-average exercise price per option, Exercisable | $ / shares | 0.13 |
Weighted-average exercise price per option, Excepted to vest | $ / shares | $ 0.32 |
Weighted-average remaining exercise contractual life (years), Outstanding | 8 years 4 months 17 days |
Weighted-average remaining exercise contractual life (years), Exercisable | 7 years 5 months 1 day |
Weighted-average remaining exercise contractual life (years), Excepted to vest | 9 years 3 months 21 days |
Aggregate intrinsic value, Outstanding | $ | $ 29,776 |
Aggregate intrinsic value, Exercisable | $ | 15,308 |
Aggregate intrinsic value, Expected to vest | $ | $ 14,468 |
Share-Based Payment - Summary_5
Share-Based Payment - Summary of Restricted Share Activity (Details) - Restricted Shares - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, Outstanding | 2,077,560 | 3,228,278 | 4,378,996 |
Number of shares, Vested | 1,150,718 | 1,150,718 | 1,150,718 |
Number of shares, Outstanding | 514,912 | 2,077,560 | 3,228,278 |
Number of shares, Cancelled and Forfeited | 411,930 |
Share-Based Payment - Summary_6
Share-Based Payment - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units - shares | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Outstanding | 2,298,775 | 2,298,775 |
Number of shares, Granted | 1,700,000 | 658,056 |
Number of shares, Forfeited | 162,750 | |
Number of shares, Vested | 2,231,168 | |
Number of shares, Outstanding | 562,913 |
Share-Based Payment - Summary_7
Share-Based Payment - Summary of Restricted Stock Units Activity (Details) (Parenthetical) - shares | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Dec. 31, 2018 | |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of restricted shares granted | 1,700,000 | 658,056 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | ¥ 134,709 | ¥ 62,787 | ¥ 57,735 |
General and Administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 87,857 | 55,804 | 55,109 |
Research and Development | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 42,167 | ¥ 6,983 | ¥ 2,626 |
Selling and Marketing Expenses | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 4,271 | ||
Cost of Revenue | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | ¥ 414 |
Mainland China Contribution P_2
Mainland China Contribution Plan - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Total provisions for employee benefits | ¥ 39,495 | ¥ 24,539 | ¥ 19,290 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Noncontrolling Interest [Abstract] | |||
Beginning balance | ¥ 2,389 | ||
Noncontrolling interest arise from acquisition | ¥ 2,976 | ||
Loss attributed to noncontrolling interest shareholders | (3,726) | $ (542) | (587) |
Ending balance | ¥ (1,337) | $ (194) | ¥ 2,389 |
Noncontrolling Interests - Sc_2
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Revenues | ¥ 3,645,335 | ¥ 2,048,896 | ¥ 1,556,476 | |
Cost of revenues | 2,705,885 | 1,554,194 | 1,280,324 | |
Gross profit | 939,450 | $ 136,637 | 494,702 | 276,152 |
Xiaomi Wearable Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,439,534 | 1,614,512 | 1,434,136 | |
Cost of revenues | 1,883,509 | 1,232,792 | 1,182,646 | |
Gross profit | 556,025 | 381,720 | 251,490 | |
Self-branded Products and Others | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,205,801 | 434,384 | 122,340 | |
Cost of revenues | 822,376 | 321,402 | 97,678 | |
Gross profit | ¥ 383,425 | ¥ 112,982 | ¥ 24,662 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | ||||
Retained Earnings, Appropriated | ¥ 1,509 | |||
Restricted net assets | ¥ 153,851 | ¥ 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 Tr_3
Related Party Balances and Transactions - Summary of Related Parties and Relationship with the Group (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Xiaomi Communication Technology Co. Ltd.("Xiaomi Communication") | |
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", together with Xiaomi Communication, Xiaomi Technology, Xiaomi Mobile, as "Xiaomi") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by one of the Company’s shareholders |
Hefei Huaying Xinzhi Fund Partnership.(Limited Partnership)("Huaying Fund") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Long-term investee of the Group |
Hangzhou Yunyou Technology Co. Ltd.("Hanzhou Yunyou") | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Significant influence by one of the Company’s shareholders |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Summary of Amount Due from/to Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Amount due from related parties: | |||
Amounts due from related parties | ¥ 656,399 | $ 95,469 | ¥ 578,454 |
Amount due to related parties, current: | |||
Amount due to related parties, current | (10,695) | $ (1,556) | (8,143) |
Amount due to related party, non-current: | |||
Amount due to related party, non-current | (3,076) | ||
Xiaomi Communication | |||
Amount due from related parties: | |||
Amounts due from related parties | 631,204 | 566,732 | |
Xiaomi Information | |||
Amount due from related parties: | |||
Amounts due from related parties | 9,727 | 908 | |
Xiaomi Technology Co. Ltd. ("Xiaomi Technology") | |||
Amount due from related parties: | |||
Amounts due from related parties | 7,442 | ||
Hangzhou Yunyou | |||
Amount due from related parties: | |||
Amounts due from related parties | 5,143 | ||
Others | |||
Amount due from related parties: | |||
Amounts due from related parties | 2,883 | 10,814 | |
Amount due to related parties, current: | |||
Amount due to related parties, current | (345) | (330) | |
Huaying Fund | |||
Amount due to related parties, current: | |||
Amount due to related parties, current | (3,061) | ||
Amount due to related party, non-current: | |||
Amount due to related party, non-current | (3,076) | ||
Xiaomi Mobile | |||
Amount due to related parties, current: | |||
Amount due to related parties, current | ¥ (10,350) | ¥ (4,752) |
Related Party Balances and Tr_5
Related Party Balances and Transactions - Summary of Sales to Related Parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Sales to related parties | ¥ 2,816,995 | ¥ 1,778,640 | ¥ 1,449,927 |
Xiaomi Communication | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 2,798,824 | 1,773,595 | 1,448,960 |
Xiaomi Technology | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 2,072 | 711 | |
Others | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 312 | 1,655 | ¥ 256 |
Xiaomi Information | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | ¥ 17,859 | ¥ 1,318 |
Related Party Balances and Tr_6
Related Party Balances and Transactions - Summary of Others to Related Parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Loan provided to related parties | ¥ 5,143 | ¥ (8,000) | ¥ 16,071 |
Investments disposed to a related party | ¥ 3,061 | ¥ 22,047 |
Related Party Balances and Tr_7
Related Party Balances and Transactions - Summary of Amount Due from/to Related Parties (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)Investment | Dec. 31, 2018USD ($)Investment | Dec. 31, 2017CNY (¥)Investment | Dec. 31, 2016CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Loan provided to related parties | ¥ 5,000 | $ 727 | ¥ 16,071 | |
Hangzhou Yunyou | ||||
Related Party Transaction [Line Items] | ||||
Loan provided to related parties | ¥ 5,000 | |||
Loan interest rate | 15.00% | 15.00% | ||
Loan maturity date | Apr. 30, 2019 | Apr. 30, 2019 | ||
Huaying Fund | ||||
Related Party Transaction [Line Items] | ||||
Number of long-term investments disposed | Investment | 1 | 1 | 5 | |
Gain on disposition of long-term investments | ¥ 31 | ¥ 284 |
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, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Basic net income per share calculation Numerator: | ||||
Net income for the year attributable to the Company: | ¥ 340,046 | $ 49,457 | ¥ 167,682 | ¥ 23,946 |
Less: Deemed dividend to preferred shareholders | 209,752 | 30,507 | ||
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 12,210 | 1,776 | 80,291 | |
Net (loss)/income attributed to ordinary shareholders for computing net (loss)/income per ordinary shares—basic | ¥ 113,490 | $ 16,505 | ¥ 46,120 | ¥ (12,122) |
Denominator: | ||||
Ordinary share - basic | shares | 211,873,704 | 211,873,704 | 67,777,592 | 55,612,626 |
Basic (loss)/income per ordinary share | (per share) | ¥ 0.54 | $ 0.08 | ¥ 0.68 | ¥ (0.22) |
Diluted net (loss)/income per share calculation | ||||
Net (loss)/income attributed to ordinary shareholders for computing net (loss)/income per ordinary shares—basic | ¥ 113,490 | $ 16,505 | ¥ 46,120 | ¥ (12,122) |
Add: adjustments to undistributed earnings to participating securities | 648 | 3,519 | ||
Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares—basic | ¥ 114,138 | ¥ 49,639 | ¥ (12,122) | |
Denominator: | ||||
Ordinary share - basic | shares | 211,873,704 | 211,873,704 | 67,777,592 | 55,612,626 |
Effect of potentially diluted stock options, restricted stocks and RSUs | shares | 13,160,946 | 13,160,946 | 8,514,309 | |
Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares—dilute | shares | 225,034,650 | 225,034,650 | 76,291,901 | 55,612,626 |
Diluted (loss)/income per ordinary share | (per share) | ¥ 0.51 | $ 0.07 | ¥ 0.65 | ¥ (0.22) |
Series A Preferred Shares | ||||
Basic net income per share calculation Numerator: | ||||
Less: Accretion of Shares | ¥ 177 | $ 26 | ¥ 3,762 | ¥ 3,209 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 4,521 | 48,753 | ||
Series B-1 Preferred Shares | ||||
Basic net income per share calculation Numerator: | ||||
Less: Accretion of Shares | 368 | 54 | 3,127 | 2,738 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 126 | 1,361 | ||
Series B-2 Preferred Shares | ||||
Basic net income per share calculation Numerator: | ||||
Less: Accretion of Shares | 4,049 | $ 589 | 34,382 | ¥ 30,121 |
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | 1,319 | 14,220 | ||
Restricted Shares | ||||
Basic net income per share calculation Numerator: | ||||
Less: Undistributed earnings allocated to participating preferred shares and nonvested restricted shares | ¥ 6,244 | ¥ 15,957 |
Net (Loss) Income Per Share -_2
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 705,407 | 12,683,366 | 11,891,695 |
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 | 11,657,620 | 23,450,173 | 34,175,372 |
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 | |
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 | |
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 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments under Lease Commitments (Details) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | ¥ 16,333 |
2020 | 6,648 |
2021 and after | 3,171 |
Future minimum payments under lease commitments | ¥ 26,152 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - Building - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Jan. 31, 2019 |
Long Term Purchase Commitment [Line Items] | ||
Capital commitment for the purchase of a building | ¥ 423,441 | |
Subsequent Event | ||
Long Term Purchase Commitment [Line Items] | ||
Number of years of rent agreement | 5 years |
Financial Statement Schedule _2
Financial Statement Schedule I Condensed Financial Information of Parent Company - BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Current assets: | |||||||
Cash and cash equivalents | ¥ 1,441,802 | $ 209,701 | ¥ 366,336 | ||||
Prepaid expenses and other current assets | 58,247 | 8,473 | 51,062 | ||||
Amounts due from related parties | 656,399 | 95,469 | 578,454 | ||||
Total current assets | 2,857,456 | 415,600 | 1,295,360 | ||||
Total assets | 3,258,481 | 473,927 | 1,465,517 | ||||
Current liabilities: | |||||||
Accrued expense and other current liabilities | 213,975 | 31,121 | 93,798 | ||||
Amount due to related parties | 10,695 | 1,556 | 8,143 | ||||
Total current liabilities | 1,387,692 | 201,831 | 877,249 | ||||
Total liabilities | 1,448,903 | 210,734 | 887,735 | ||||
Mezzanine equity | |||||||
Total mezzanine equity | 349,618 | ||||||
Equity | |||||||
Ordinary shares | 56 | ||||||
Additional paid-in capital | 1,373,577 | 199,779 | 72,427 | ||||
Accumulated retained earnings | 340,046 | 49,457 | ¥ 164,521 | 131,192 | |||
Accumulated other comprehensive income | 97,141 | 14,129 | 22,100 | ||||
Total equity | 1,809,578 | 263,193 | 228,164 | ¥ 30,179 | ¥ (21,023) | ||
Total liabilities, mezzanine equity and equity | 3,258,481 | 473,927 | 1,465,517 | ||||
Series A Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 26,770 | ||||||
Series B-1 Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 26,906 | ||||||
Series B-2 Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 295,942 | ||||||
Class A Ordinary Shares | |||||||
Equity | |||||||
Ordinary shares | 36 | 5 | |||||
Class B Ordinary Shares | |||||||
Equity | |||||||
Ordinary shares | 115 | 17 | |||||
Parent Company | |||||||
Current assets: | |||||||
Cash and cash equivalents | 458,371 | 66,667 | 34,470 | $ 5,013 | ¥ 40,518 | ¥ 159,861 | |
Term deposit | 96,969 | 14,104 | |||||
Prepaid expenses and other current assets | 3,782 | 550 | 14,284 | ||||
Amounts due from related parties | 314,658 | 45,765 | 101,624 | ||||
Total current assets | 873,780 | 127,086 | 150,378 | ||||
Investments in subsidiaries | 963,064 | 140,072 | 435,085 | ||||
Total assets | 1,836,844 | 267,158 | 585,463 | ||||
Current liabilities: | |||||||
Accrued expense and other current liabilities | 4,564 | 664 | 10,070 | ||||
Amount due to related parties | 21,365 | 3,107 | |||||
Total current liabilities | 25,929 | 3,771 | 10,070 | ||||
Total liabilities | 25,929 | 3,771 | 10,070 | ||||
Mezzanine equity | |||||||
Total mezzanine equity | 349,618 | ||||||
Equity | |||||||
Ordinary shares | 56 | ||||||
Additional paid-in capital | 1,373,577 | 199,779 | 72,427 | ||||
Accumulated retained earnings | 340,046 | 49,457 | 131,192 | ||||
Accumulated other comprehensive income | 97,141 | 14,129 | 22,100 | ||||
Total equity | 1,810,915 | 263,387 | 225,775 | ||||
Total liabilities, mezzanine equity and equity | 1,836,844 | 267,158 | 585,463 | ||||
Parent Company | Series A Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 26,770 | ||||||
Parent Company | Series B-1 Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 26,906 | ||||||
Parent Company | Series B-2 Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | ¥ 295,942 | ||||||
Parent Company | Class A Ordinary Shares | |||||||
Equity | |||||||
Ordinary shares | 36 | 5 | |||||
Parent Company | Class B Ordinary Shares | |||||||
Equity | |||||||
Ordinary shares | ¥ 115 | $ 17 |
Financial Statement Schedule _3
Financial Statement Schedule I Condensed Financial Information of Parent Company - BALANCE SHEETS (Parenthetical) (Details) ¥ in Thousands | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017$ / shares |
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |
Ordinary shares, authorized | 0 | 405,462,685 | |
Ordinary shares, issued | 0 | 91,304,327 | |
Ordinary shares, outstanding | 0 | 91,304,327 | |
Class A Ordinary Shares | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | 0.0001 | |
Ordinary shares, authorized | 9,800,000,000 | 0 | |
Ordinary shares, issued | 57,303,093 | 0 | |
Ordinary shares, outstanding | 57,303,093 | 0 | |
Class B Ordinary Shares | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | 0.0001 | |
Ordinary shares, authorized | 200,000,000 | 0 | |
Ordinary shares, issued | 184,376,679 | 0 | |
Ordinary shares, outstanding | 184,376,679 | 0 | |
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 | ||
Ordinary shares, outstanding | 91,304,327 | ||
Parent Company | Series A Preferred Shares | |||
Mezzanine equity, par value | $ / shares | $ 0.0001 | 0.0001 | |
Mezzanine equity, authorized | 71,641,792 | ||
Mezzanine equity, issued | 71,641,792 | ||
Mezzanine equity, outstanding | 71,641,792 | ||
Mezzanine equity, liquidation value | ¥ | ¥ 24,870 | ||
Parent Company | Series B-1 Preferred Shares | |||
Mezzanine equity, par value | $ / shares | 0.0001 | 0.0001 | |
Mezzanine equity, authorized | 2,000,000 | ||
Mezzanine equity, issued | 2,000,000 | ||
Mezzanine equity, outstanding | 2,000,000 | ||
Mezzanine equity, liquidation value | ¥ | ¥ 33,188 | ||
Parent Company | Series B-2 Preferred Shares | |||
Mezzanine equity, par value | $ / shares | 0.0001 | 0.0001 | |
Mezzanine equity, authorized | 20,895,523 | ||
Mezzanine equity, issued | 20,895,523 | ||
Mezzanine equity, outstanding | 20,895,523 | ||
Mezzanine equity, liquidation value | ¥ | ¥ 364,145 | ||
Parent Company | Class A Ordinary Shares | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | 0.0001 | |
Ordinary shares, authorized | 9,800,000,000 | ||
Ordinary shares, issued | 57,303,093 | ||
Ordinary shares, outstanding | 57,303,093 | ||
Parent Company | Class B Ordinary Shares | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |
Ordinary shares, authorized | 200,000,000 | ||
Ordinary shares, issued | 184,376,679 | ||
Ordinary shares, outstanding | 184,376,679 |
Financial Statement Schedule _4
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF OPERATIONS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Condensed Income Statements Captions [Line Items] | ||||
Cost | ¥ 2,705,885 | $ 393,555 | ¥ 1,554,194 | ¥ 1,280,324 |
Gross profit | 939,450 | 136,637 | 494,702 | 276,152 |
Operating expenses | ||||
Selling and marketing | 96,538 | 14,041 | 44,026 | 27,821 |
General and administrative expenses | 213,973 | 31,121 | 114,880 | 102,644 |
Research and development | 263,220 | 38,284 | 153,827 | 132,304 |
Total operating expenses | 573,731 | 83,446 | 312,733 | 262,769 |
Operating loss | 365,719 | 53,191 | 181,969 | 13,383 |
Interest income | 11,595 | 1,686 | 3,003 | 754 |
Net income | 336,320 | 48,915 | 167,095 | 23,946 |
Parent Company | ||||
Condensed Income Statements Captions [Line Items] | ||||
Cost | 414 | 60 | ||
Gross profit | 414 | 60 | ||
Operating expenses | ||||
Selling and marketing | 4,271 | 621 | ||
General and administrative expenses | 99,881 | 14,528 | 57,898 | 54,916 |
Research and development | 42,167 | 6,133 | 6,984 | 2,626 |
Total operating expenses | 146,319 | 21,282 | 64,882 | 57,542 |
Operating loss | (146,733) | (21,342) | (64,882) | (57,542) |
Interest income | 2,185 | 318 | ||
Equity in earnings of subsidiaries and VIEs | 484,594 | 70,481 | 232,564 | 81,488 |
Net income | ¥ 340,046 | $ 49,457 | ¥ 167,682 | ¥ 23,946 |
Financial Statement Schedule _5
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Net income | ¥ 340,046 | $ 49,457 | ¥ 167,682 | ¥ 23,946 |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustment | 60,357 | (3,175) | 5,262 | |
Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, RMB 1,554 and nil for years ended December 31, 2016, 2017 and 2018, respectively) | 14,684 | 2,136 | 9,484 | 303 |
Comprehensive income attributable to Huami Corporation | 415,087 | 60,372 | 173,991 | 29,511 |
Parent Company | ||||
Net income | 340,046 | 49,457 | 167,682 | 23,946 |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustment | 75,041 | 10,914 | (3,175) | 5,262 |
Unrealized gain on available-for-sale investments and others, (net of tax effect of nil, RMB 1,554 and nil for years ended December 31, 2016, 2017 and 2018, respectively) | 9,484 | 303 | ||
Comprehensive income attributable to Huami Corporation | ¥ 415,087 | $ 60,371 | ¥ 173,991 | ¥ 29,511 |
Financial Statement Schedule _6
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized gain on available-for-sale investments and others, tax effect | ¥ 2,250 | ¥ 1,554 | ¥ 0 |
Parent Company | |||
Unrealized gain on available-for-sale investments and others, tax effect | ¥ 1,554 |
Financial Statement Schedule _7
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF CASH FLOW (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash Flow from Operating Activities | ||||
Net income | ¥ 340,046 | $ 49,457 | ¥ 167,682 | ¥ 23,946 |
Share-based compensation | 134,709 | 19,592 | 62,787 | 57,735 |
Changes in operating assets and liabilities | ||||
Prepaid expenses and other current assets | (5,748) | (836) | (32,985) | 6,691 |
Accrued expense and other current liabilities | 119,887 | 17,436 | 45,572 | 28,761 |
Cash Flow from Investing Activities | ||||
Amount due from related parties | (45,116) | (6,562) | (109,756) | (287,661) |
Purchase of term deposits | (385,028) | (56,000) | ||
Proceeds from maturity of term deposits | 288,771 | 42,000 | ||
Proceeds received from loans provided to third-parties | 5,578 | 811 | 1,000 | |
Cash Flow from Financing Activities | ||||
Net proceeds from initial public offering | 657,062 | 95,566 | ||
Payment for repurchase of ordinary shares | (8,157) | (1,186) | ||
Cash and cash equivalents at beginning of the year | 366,336 | |||
Cash and cash equivalents at end of the year | 1,441,802 | 209,701 | 366,336 | |
Parent Company | ||||
Cash Flow from Operating Activities | ||||
Net income | 340,046 | 49,457 | 167,682 | 23,946 |
Equity in earnings of subsidiaries | (484,594) | (70,481) | (232,564) | (81,488) |
Share-based compensation | 134,709 | 19,592 | 62,787 | 57,736 |
Changes in operating assets and liabilities | ||||
Prepaid expenses and other current assets | 8,625 | 1,255 | (14,284) | |
Accrued expense and other current liabilities | (5,507) | (801) | 10,043 | 2 |
Amount due to a related party | 4,489 | 653 | (8,500) | |
Net Cash provided by (used in) Operating Activities | (2,232) | (325) | (14,836) | 196 |
Cash Flow from Investing Activities | ||||
Amount due from related parties | (196,158) | (28,530) | 21,646 | (122,728) |
Investment in subsidiaries | (10,056) | (1,463) | (9,772) | (2,400) |
Purchase of term deposits | (385,028) | (56,000) | ||
Proceeds from maturity of term deposits | 288,771 | 42,000 | ||
Proceeds received from loans provided to third-parties | 3,578 | 521 | ||
Loans provided to third party | (2,406) | (349) | ||
Net Cash (used in) provided by Investing Activities | (301,299) | (43,821) | 11,874 | (125,128) |
Cash Flow from Financing Activities | ||||
Net proceeds from initial public offering | 657,062 | 95,566 | ||
Exercise of share options | 3,486 | 506 | 89 | 24 |
Payment for repurchase of ordinary shares | (8,157) | (1,186) | ||
Net Cash provided by Financing Activities | 652,391 | 94,886 | 89 | 24 |
Net decrease in cash and cash equivalent | 348,860 | 50,740 | (2,873) | (124,908) |
Effect of exchange rate changes | 75,041 | 10,914 | (3,175) | 5,565 |
Cash and cash equivalents at beginning of the year | 34,470 | 5,013 | 40,518 | 159,861 |
Cash and cash equivalents at end of the year | ¥ 458,371 | $ 66,667 | ¥ 34,470 | ¥ 40,518 |
Financial Statement Schedule _8
Financial Statement Schedule I Condensed Financial Information of Parent Company - CONVENIENCE TRANSLATION - Additional Information (Details) | Dec. 31, 2018¥ / $ |
Foreign currency exchange rate | 6.8755 |
Parent Company | |
Foreign currency exchange rate | 6.8755 |