Huami Corporation Announces Multi-Year Strategic Cooperation Agreement Extension with Xiaomi Corporation

Rhea-AI Summary

Huami Corporation (NYSE: HMI) announced a three-year extension of its strategic cooperation agreement with Xiaomi Corporation, maintaining its status as a preferred partner for developing Xiaomi's wearable products. The agreement also includes collaboration on AI-chips and algorithms for wearable devices. Huami's mission focuses on connecting health with technology, having shipped 42.3 million wearable devices in 2019, accounting for 26% of global shipments. The partnership aims to enhance Huami's capabilities in the wearable technology market.

Positive

• Three-year extension of cooperation agreement with Xiaomi, ensuring continued partnership.
• Retainment of preferred-partner status for Xiaomi wearable products development.
• Collaboration on AI-chips and algorithms, potentially leading to innovation in wearable technology.

Negative

• None.

BEIJING, Oct. 20, 2020 /PRNewswire/ -- Huami Corporation ("Huami" or the "Company") (NYSE: HMI) today announced a 3-year extension of its strategic cooperation agreement with Xiaomi Corporation ("Xiaomi"). Through the terms of this extension, Huami continues to receive the most-preferred-partner status to develop Xiaomi wearable products. In addition, under the agreement, the two parties will form a most-preferred strategic partnership on the research and development of AI-chips and algorithms for wearable devices.

About Huami Corporation (NYSE: HMI)

Huami's mission is to connect health with technology. Since its inception in 2013, Huami has developed a platform of proprietary technology including AI chips, biometric sensors, and data algorithms, which drive a broadening line of smart health devices for consumers, and analytics services for industry. In 2019, Huami shipped 42.3 million units of smart wearable devices, including its own Amazfit brand, and products developed and manufactured for Xiaomi, comprising 26% of global category shipments^[1]. Huami Corp is based in Hefei, China, with U.S. operations, Huami-USA, based in Cupertino, California. 

[1] IDC, Correcting and Replacing Shipments of Wearable Devices, 3/10/20

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the cooperation with Xiaomi, the recognition of the Company's self-branded products; the Company's growth strategies; trends and competition in global wearable technology market; changes in the Company's revenues and certain cost or expense accounting policies; governmental policies relating to the Company's industry and general economic conditions in China and the global. Further information regarding these and other risks is included in the Company's filings with the United States Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
Huami Corporation
Grace Yujia Zhang
E-mail: ir@huami.com

The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
E-mail: huami@tpg-ir.com

In the United States:
Brad Samson
E-mail: brad.samson@huami-usa.com

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SOURCE Huami Corporation

FAQ

What does the new agreement between Huami and Xiaomi involve?

The new agreement involves a three-year extension of their strategic partnership, focusing on the development of wearable products and AI technology.

How does Huami's partnership with Xiaomi impact its business?

The partnership is expected to enhance Huami's market position in wearable technology by ensuring a steady collaboration on product development.

What percentage of global wearable shipments did Huami account for in 2019?

In 2019, Huami accounted for 26% of global shipments of wearable devices.

What is Huami's main focus as a company?

Huami's main focus is to connect health with technology through innovative wearable devices and analytics services.

When was the strategic cooperation agreement with Xiaomi announced?

The strategic cooperation agreement with Xiaomi was announced on October 20, 2020.