A year of revenue of 1 billion dollars, how is it an experience?
Put in the technology venture capital circle, always subconsciously converted to the equivalent of a company in a year's time and earned the money of a unicorn company.
But insiders know that the so-called unicorn company is only a concept calculated by valuation, and $1 billion in revenue is really real money.
This is exactly the 2020 report card reached by Huami Technology, the world's leading provider of smart wearable technology and cloud-based health services. The company's 2020 revenue reached a record high of 6.4334 billion yuan ($986 million), up 10.7% year-over-year.
We all have this heightened **** knowledge that 2020 is not easy. But Huami Technology is bucking the trend in an uncertain environment, increasing investment in R&D and branding, and adhering to long-termism, contributing to its current positive and robust state.
"The past year has been extremely extraordinary in the history of new China."
This is the first sentence in the opening of the Government Work Report of the two sessions that just passed, which threw down the gauntlet and gave the most authoritative tone for where we are in 2020.
In the face of dangerous and grandiose crises and opportunities, practicing and polishing one's true skills and stress-resistant abilities, and seeking to break through, has become a must for every individual or enterprise and a choice that cannot be avoided.
Previously, we have tracked and analyzed Huami's 2020 financial results for several quarters, taking into account short-term performance and long-term goals, and each quarter has exceeded expectations and brought surprises. Just recently, Huami Technology released its Q4 and full year 2020 financial results, which are aptly described as a new high.
Specifically, for the full year of 2020, Huami Technology's shipments and revenue both hit new record highs: total shipments amounted to 45.7 million units, an increase of 8% over last year, and the company's annual revenue reached RMB 6,433.4 million ($986 million), a year-on-year increase of 10.7%. Benefiting from the expansion of the global market and the continuous broadening of the product line, the private label performed outstandingly, with shipment growth reaching 20.5%.
In this regard, Wang Huang, Founder, Chairman, and CEO of Huami, said that despite the challenges, its own-branded products are performing strongly in many price points.
Based on these strong performances, Huami, along with Apple, Huawei, Samsung, Garmin, and Fitbit***, accounted for 60% of the overall adult smartwatch wearable market, according to the latest data from CCS Insight, the world's leading market research organization.
What is this concept? It can be understood that the company was founded less than 8 years ago, listed only 3 years, and can already compete with the industry giants with hardcore strength.
In addition to the increasingly rich product portfolio and the posture of the major platforms to sit in the top seller, we also note that the data business capabilities gradually released. Multi-brand, multi-product, multi-business, intertwined with each other to facilitate each other, built the Huami technology now straight face health career sound basic disk.
The great philosopher Karl Popper once said that the future is determined by what we do. Karl Popper once said that the future is predetermined by historical conditions. Put Huami, we see that the hand holding a number of trump cards and ready to go, experienced the ups and downs of last year's high-pressure moments, this year has really riveted the strength, is bound to usher in the outbreak of the moment.
In the earnings report there is such a data: 45.7 million units!
This is the total shipments of Huami technology last year, in the original volume, still maintained a growth rate of 8%. Quarterly shipments of ten million units at any one time, in addition to continuing to maintain the first market share of adult watches, the industry list of the former big brother's position in the jianghu, and more importantly, to a large extent, so that high-quality, high-quantity, focused on the professional watch products into the common people's homes.
2020 fall new conference, the launch of a new fashion smartwatch Amazfit GTR 2 and Amazfit GTS 2, a collection of Huami's latest technical capabilities and achievements of the potential energy. After the double eleven e-commerce firefight, took the multi-platform sales champion and sales champion. All-round health flagship and meet the mechanical feelings of Zepp Z watch is also officially debuted on the market, so that the smart with the heart, health entourage.
In addition, Amazfit Pop, Bip, Neo and other entry-level wearable products have enriched the product portfolio, constituting a more complete and rich product matrix, covering various price ranges and enriching consumers' shopping choices. What's more, even with entry-level products, users can enjoy top-notch oximetry at a lower cost.
That is to say, whether it is the $299 Amazfit Neo electronic watch, or the GTR2 watch that sells for $1099, the health-related functions inside are the same, and the algorithms are all the same. As long as the underlying sensors can support the function, Huami's consistent approach is to put the best algorithms directly on top to support this function, further reducing the threshold for the public to experience the flagship health function.
This is where Huami's values, and principles in the mission of connecting health with technology come into play.
"True entrepreneurship is able to see unmet consumer needs in the evolution of the times, which is grasping the stereotypes in the megatrends."
Whether it's Huami, or founder Wang Huang and the team, there's no doubt that the entrepreneurial spirit has been hit. With a consumer-oriented near-all-area product layout, consistent product power coupled with increasingly strong brand texture, so that it has a global, direct reference to Apple and other veteran companies of the bottom of the air.
Of course, all of this is inseparable from the deep bottom and superb technology support.
When it comes to R&D investment, we are likely to be the first to think of Huawei, which has become an industry benchmark and a model for our generation by investing 10% to 15% of its revenue in R&D every year.
Back to Huami Technology, the financial report shows that 2020 further increased R & D investment, annual R & D expenditure of 538 million yuan, an increase of 24.9% over the full year of 2019; revenue accounted for 8.4%, higher than the full year of 2019, 7.4%. Obviously, it is close to Huawei's level of investment to maintain a competitive advantage in the global market.
All great scientific theories mean new conquests of the unknown.
On the contrary, Huami's actions in 2020, upgraded the artificial intelligence laboratory to the Artificial Intelligence Research Institute, joint Zhong Nanshan academician team opened the wrist intelligent wearable joint laboratory, and the domestic top cardiovascular system hospitals and experts to establish cooperation, to validate the health detection function of the wearable device, and the School of Law of Peking University around the field of intelligent wearable privacy protection and data governance and other topics ** ** with research, etc..
It looks like it won't be.
It may not seem to bring immediate economic and commercial benefits, but in the long run, the transformation of its research results will help the company to bring infinite value, which is the concept that Huami has always been upholding - long-termism superimposed on professionalism.
Huami Technology's words and actions on basic research are robust enough to meet the company's development strategy, and likewise follow the country's call to respond, benefiting countless public users, and letting its mission of "connecting health with technology" zoom in.
Just recently, Huami also made such a move: announced that it had changed its name to Zepp Health Corp. and its trading code on the New York Stock Exchange to "ZEPP", which took effect on the same day.
The reason, in official terms, was to reflect the company's commitment to connecting health and technology, the expansion of its existing product portfolio, and growth in the industrial medical technology market.
In fact, back in August 2020, the Amazfit App was renamed the Zepp App.
This was more than just a string of characters, it was an important step in an attempt to expand the reach of the company's commitment to delivering digital health management solutions to users around the world. This is in line with Huami's mission to connect health and its ambition to build a global health ecosystem.
This is what Xinmang X says
The peach blossom blooms at the end of the year, and the spring plowing can't be stopped.
2020 has passed, and the spring of 2021 is calling.
"Adjust the own-brand smartwatch business to the best position, and start to establish the three pillars of consumer wear business, health data analysis business, and medical imaging equipment." This is the most highly condensed summary of founder Huang Wang's current state of Huami Technology.
As the founder and the steering wheel, Huang Wang also stated that "we are ready for 2021, the performance will be very strong".
At this moment, we seem to see that Huami Technology has already spared no effort for the cause of global health, and has taken significant achievements, and we need to do is to wait for more and more surprises and achievements.