Shares in Huami Corp. (NYSE: HMI) dropped more than 13 percent Thursday to $14.50 per American depositary share, despite the strong financial results reported by the Beijing-based technology maker.
The company, which focuses on smart wearable technology and is a partner of smartphone giant Xiaomi Corp. (HKEX: 1810), said in a statement today that its revenue in the three months through December increased 63 percent year-over-year to $178.1 million, thanks to improved brand recognition.
Net income rose 74 percent from the same period of 2017 to $18.3 million, or 29 cents per share, according to the report.
For the year, Huami said its revenue was $530.2 million, up 78 percent from 2017. Net income for 2018 was $49.5 million, or 79 cents per share.
"We are very proud to conclude the year of 2018 with strong business performance as we continue to strengthen our leadership position in the global smart wearables industry,” Huami’s chairman and chief executive, Wang Huang, said in the statement. “Our fourth quarter results capped off a very strong year for Huami.”
He said the sales of the company’s self-branded products under the Amazfit brand almost tripled during the year.
Huang also said, “In 2018, we introduced a breakthrough in healthcare technologies by applying in wearables powered by our self-developed AI chip Huangshan-1; broadened our IOT application scenarios; and engaged with strategic partnerships such as Timex and PAI Health. We see tremendous opportunity to continue our global growth. We intend to utilize our world-class research and development capabilities, as well as our collaborative partnerships to development new, innovative products and services that ensure we remain at the forefront of our industry."
Looking ahead, Huami said it expects to generate revenue in the range of 750 million to 770 million yuan during the first quarter of 2019, representing an increase of between 28 and 31 percent from the same period a year ago.