On March 17, Huami Technology (NYSE:ZEPP) released its fourth-quarter and full-year 2021 financial report, during which the company's revenue was RMB1.662 billion (US$260.7 million), net diluted income per share was RMB0.14 (US$0.02) under US GAAP, and net income per ADS dilution was RMB0.55 (US$0.09) under US GAAP, with each ADS representing four Class A ordinary shares.
In appreciation of the strong support of shareholders, in addition to continuing to advance the share repurchase program, Huami Technology also announced that it will pay a special cash dividend of $0.025 per ordinary share or $0.1 per American Depositary Receipts. The Company will firmly execute on the established strategy to maximize long-term shareholder value.
It is worth noting that Huami Technology's private label performance is particularly excellent: according to the financial report, The shipments of Amazfit and Zepp for the whole year of 2021 increased by 59.6%, and the revenue growth rate reached 45.8%.
"In 2021, we continued to grow our private labels Amazfit and Zepp, further enhancing technological innovation, enriching our product portfolio, and meeting our revised guidelines for full-year revenue." Huang Wang, founder, chairman and CEO of Huami Technology, said that despite the current challenging global macro environment, Amazfit and Zepp's product shipments achieved steady growth in the fourth quarter, up 14.3% year-on-year, indicating that the global influence of the two major brands is expanding day by day. The company maintained a strong momentum of international expansion, such as in North America, where shipments increased by more than 200% in 2021.
IDC's recent report also shows that in the fourth quarter of 2021, Huami Technology's Amazfit and Zepp adult watch shipments ranked in the top three in brazil, Turkey, Italy, Indonesia, Spain, Russia and other countries; while the annual cumulative shipments ranked among the top five in the world, exceeding the overall growth rate of the market.
While vigorously developing its own brand, Huang Wang stressed that the company will continue to maintain close strategic cooperation with Xiaomi Technology; the two sides are currently actively exploring the development of new products, of which the latest generation of Xiaomi Bracelet 7 will also be launched within the year.
As of December 31, 2021, the cumulative global shipments of Huami Technology's smart devices have exceeded 200 million units.
Deng Cheng, CFO of Huami Technology, said that under the shadow of the global covid-19 epidemic and chip shortage, the company's revenue in the fourth quarter still reached 1.662 billion yuan, and the annual revenue reached 6.250 billion yuan; of which self-owned brand products contributed 46.5% of revenue and more than half of gross profit.
He also stressed that through effective cost control measures, the company reduced operating expenses in the fourth quarter, and the gross profit margin for the whole year also exceeded 20%, maintaining a steady increase over 2020; the company will continue to strengthen cost and operation management in order to quickly seize the demand rebound in the impact of the epidemic.
For now, the company maintains abundant cash flow. As of December 31, 2021, Huami Technology had approximately RMB1,468 million in cash and equivalents, an increase of 19% over the end of the previous quarter.