Xiaomi’s ecological chain partner Huami has announced its quarterly financial report for the second quarter of the year. We have to say that in a year plagued by COVID-19 pandemic and all the issues that it brought to the market, Hami achieved very expressive results. The company reported a revenue of RMB1.137 billion which is just around $161 million. This result represents the three-month period that starts in April and ends on June 30.
The revenue is slightly higher than what the company posted in the first quarter. In the period that started in January and ended on March 31, the company achieved a net profit of $153.7 million. Despite the increase in Q2 2020, the results are still below the net profit of 2019 when the company reached an 89.4 million Yuan profit. The answer is that the company spent a higher amount on operational costs. Apparently, this is a direct result of the COVID-19 pandemic.
“I am proud of our teams and our brands that generated revenue growth of 9.5% in the second quarter and 21.1% for the first half of 2020, with the challenges of the worldwide pandemic,” said Wang Huang, Chairman, and CEO of Huami.
“New products introduced in the first half of the year, including smartwatches, earbuds, and other smart health devices helped our growth, although the pandemic did alter the magnitude of our and the industry’s growth. Interest in our new smart health devices and the recent success in the application of our proprietary health data analysis tools for healthcare insurers and providers give us confidence in our strategy, growth, and future guidance.”
Huami should increase its revenue with the arrival of new products
Considering that the company achieved good results in Q2 2020, we can only expect an improvement in Q3 2020. After all, most markets have resumed their operations now. Moreover, the company will keep investing on its Amazfit lineup of wearables. Interestingly enough, it will introduce a new product in the coming months.
Huami will introduce a new Smart Scale in the near future. It’s not something unusual for Xiaomi, Huawei enthusiasts. However, it’s the first time that the chain company will introduce a product of this kind. The smart scale recently got Bluetooth certification and will have total integration with the Amazfit application.
The company should keep investing on its global strategy as it proves to be a successful strategy.