Xiaomi’s Smart Wearable Affiliate Huami Files for US IPO

Huami Corp., the supplier of Xiaomi smart wearables, has filed for an IPO in the U.S. Xiaomi and Shunwei, the venture capital firm co-founded by Xiaomi founder Lei Jun, currently hold 19.3% and 20.4% of the total outstanding shares of Huami, respectively.

The sales of Xiaomi-branded wearable products contributed 97.1%, 92.1% and 82.4% of Huami’s total revenues in 2015 and 2016 and the first nine months of 2017, respectively. Huami depends on Xiaomi’s online and offline channels to sell both Xiaomi-branded and its self-branded products.

Source: Huami Corp.

Mi Band, a low-cost activity tracker launched in July 2014, is Huami’s signature product. Out of the total 45.3 million wearable devices Huami had shipped as of September 2017, 40 million were Mi Bands.

Activity tracking bands, including Mi Bands and those under Huami’s own brand, were the main revenue generator that contributed 81.7%, 85.8% and 73.2% of the total revenues in 2015, 2016 and the first nine months of 2017, respectively.

Xiaomi Mi Band (Image: Xiaomi)

Other products Huami makes include smartwatches, smart body scales, and accessories.

The total shipments in 2015, 2016 and the first nine months of 2017 were 14.4 million, 17.8 million and 11.6 million, respectively.

Image: Amazfit

Its own brand, Amazfit, is positioned as a premium brand as compared to Xiaomi’s Mi brand and has had a higher gross margin than that of Xiaomi-branded products since 2016. In the first nine months of 2017 Amazfit products accounted for only 4% of the total shipments but generated 17.6% of the total revenue for the company.

The accompanying mobile apps of all the hardware products claimed 49.6 million registered users as of September 2017. Huami hardware and software products collect over 10 dimensions of measurement, including heart rate, ECG, weight, body fat compositions, GPS running track, steps and sleeping duration.

The company doesn’t maintain its own manufacturing facilities but relies on a number of contract manufacturers.

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China Tech Newsletter – May 9-11, 2015

The Logo of Xiaomi Finance
The Logo of Xiaomi Finance

Xiaomi users now are able to purchase financial products provided by third-party financial institutions through Xiaomi Finance, a mobile app developed by the smart device maker Xiaomi.

The first offering on the app is Xiaomi Huoqibao (Huoqi means “current deposit”), a money market fund similar to Yu’ebao provided by Alibaba’s finance arm. The Xiaomi Huoqibao fund is managed by Tiantian Mutual Funds (our translation) of E Fund Management Co., Ltd.

Apart from adding more financial products for users to purchase, Xiaomi Finance will provide loans to consumers and develop a user data-based credit scoring system, according to the company. But Xiaomi hasn’t got a license for consumer credit scoring operations yet. Currently only two internet companies, Alibaba’s Ant Financial Services Group and Tencent, have obtained a license and launched their credit scoring services.

Xiaomi led a round of investment in peer-to-peer lending site Jimubox in 2014. It’s unknown when or whether Jimubox’s offerings will be on Xiaomi Finance platform.

A number of big Chinese internet companies have established online platforms selling financial products or services by partnering with traditional financial institutions that include Alibaba’s Ant Financial Services Group, Tencent, Baidu, Sina, and 58.com.


Tencent has invested RMB50 million (about US$8m) for a 7% stake in Huan.tv, developer of smart TV software solutions, whose clients include Chinese TV manufacturers, set-top box makers and telecom operators.

The company made RMB60.9 million (about US$10m) in revenues in 2014. A partnership with game engine developer Unity announced earlier in February aimed to introduce more games into the app platform of its smart TV solution.

Shareholders in Huan.tv also include electronics manufacturer TCL (its largest shareholder) and TV maker Changhong.


Tencent has had a 20% stake in Future TV Co., Ltd., the online television content business of the state-owned China Network Television (CNTV), according to an exclusive report by Jiemian.com.

Only seven companies or organizations, including CNTV, are allowed by Chinese authorities to supply online television content. Alibaba Group has reached partnership with another license holder WASU (Alibaba’s chairman Jack Ma is investor in WASU).


TAL Education Group (NYSE:XRS) has acquired Gaokaopai.com, an online information and advisory service for high school students on finding a college match. TAL’s own news site on college selection will be merged into Gaokaopai. Financial terms were not disclosed.


TAL Education Group has recently also invested in the startup behind Qingqing Private Tutor (our translation), a mobile app connecting K-12 students with private tutors. Last month Qingqing announced US$15 million Series B round of funding led by Sequoia Capital and joined by returning investors IDG Capital Partners and TBP.

Features of the app include locating registered tutors based on distance, tutoring session scheduling, rating tutors, among others. It’s currently only available in two cities, Shanghai and Guangzhou.


Miaozhen Systems,  a marketing tech solution provider, announces US$50 million in Series D round of funding from Primavera Capital. Founded in 2006, the company claims to be powering P&G, Microsoft, Volkswagen, L’Oreal, Coca-Cola, YUM!,Yili, Mengniu, Suning and Midea in digital marketing.


Application performance management (APM) solution provider OneAPM announced RMB165 million (about US$27m) Series C round of funding led by Chengwei Capital and joined by Matrix Partners China and Qiming Ventures. The company’s service was launched in July 2014.


 

Tim Cook is in Beijing announcing new environmental initiatives in China.