Huami, the world’s largest wearable device brand by shipments, has listed on New York Stock Exchange under the ticker symbol “HMI”, making it the first public company from the Xiaomi ecosystem. Its share price rose from the issue price of USD 11 to 11.25, valued the company at USD 669 million.
According to its prospectus, the company reports a USD 71.6 million (RMB476.7 million) revenue in October and November 2017, with a net profit of USD 7.9 million (RMB52.2 million). Its total shipment in Q4 2017 is 6.5 million.
Huami is the sole partner of Xiaomi in the design and manufacture of Xiaomi-branded wearables. Xiaomi, the smartphone maker owns 19.3% of Huami.
Sales of Xiaomi branded products contributed 97.1% and 92.1% to Huami’s revenue, while the number has fallen to 82.4% for the first nine months in 2017. Under the brand “Amazfit”, Huami sells its own products, covering the middle to high-end market.
Huami got listed before Xiaomi, and this might have a huge impact on Xiaomi’s market valuation, as Xiaomi ecosystem now plays a vital role in the company’s business, generating RMB 20 billion in revenue (around US$2.1 billion) in 2017 according to Bloomberg.
In China, the market for wearables has seen a rapid growth, rising from RMB230 million (approx. USD 36 million) in 2011 to RMB 18.5 billion (USD 3 billion) in 2016, probably has reached RMB 26.6 billion (USD 4 billion) in 2017. According to a report by market researcher IDC, Xiaomi, through Huami, is the No.1 player among wearables manufacturers by shipment, holds 23.6% of the market share.