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Xiaomi’s Smartwatch Partner Huami Corp Files For US$150M IPO

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Huami Corporation, the maker of  Xiaomi’s Mi smart wrist ban is seeking a US$150 million initial pubic offering in the U.S., according a securities filing. The company is applying for the listing of its ADSs on Nasdaq Global Market under the ticker symbol “HMI”. Pricing terms were not disclosed.

Founded in 2013, Huami is the sole partner of Xiaomi contracted to design and manufacture Xiaomi wearable products. As a prominent part of Xiaomi’s smart hardware ecosystem, it holds most-preferred-partner status globally to develop future Xiaomi wearable products.

Huami also leverages Xiaomi’s established distribution network to promote smart bands and watches under its own brand, Amazfit. Huami shipped 11.6 million devices in the first nine months of 2017, making it the world leader in terms of units shipped, and a total of 45.3 million devices since inception, according to the prospectus.

Most of those shipments appear to be Xiaomi products. As of September 30, 2017, 40 million Mi Band series products had been sold since its launch in July 2014, according to the prospectus. In the first quarter of last year, Xiaomi surpassed Apple as the largest wearable device company worldwide, controlling 14.7% of the market, followed by Apple’s 14.6% and Fitbit’s 12.3% market share, according to a IDC report.

Huami booked revenue of RMB1,296.2 million (US$194.8 million) for the nine months ended September, 2017, a 37.4% increase from the same period of 2016. Its net income for the same nine months was RMB95.1 million (US$14.3 million), compared to a net loss of RMB19 million (US$3 million) in the first nine months of 2016.

Its shareholders include Shunwei High Tech Limited, a subsidiary of Xiaomi’s founder Lei Jun’s Shunwei Capital, HHtech Holdings Limited, People Better Limited and Banyan Capital Holdings. The above companies control 39.4%, 20.4%, 19.3% and 9.7% stake of Huami respectively.

By 2021, the global smart wearables market size is expected to reach US$46.2 billion representing a CAGR of 23.6% from 2016 to 2021, with shipment volume of 281.9 million devices representing a CAGR of 22.3% for the same period, according to a Frost & Sullivan Report.

In 2016, Huami reportedly sought financing at a US$1 billion valuation.

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