Financial Data and Key Metrics Changes - The company reported a revenue growth of 20% year-over-year, driven by the shipment of 15.9 million units, which is an increase of 16.1% from the previous year [8][20] - Gross margin decreased by 460 basis points year-over-year, primarily due to product mix and the higher volume of lower-margin Xiaomi products [21][22] - Operating expenses increased by 51.3% year-over-year, comprising 17% of revenue compared to 13.5% in the previous year [24] Business Line Data and Key Metrics Changes - The largest portion of revenue growth was attributed to the Xiaomi Mi-Band 5, alongside new product launches under the company's own brand [20] - R&D expenses increased by 38.8% year-over-year, comprising 7.7% of revenue, while sales and marketing expenses rose by 104.2% year-over-year, making up 5.2% of revenue [22][23] Market Data and Key Metrics Changes - The company achieved a market share of number one in Spain and Indonesia, with significant growth in the Indian market (323.7%) and Western Europe (241.6%) [12] - International shipments accounted for 49.5% of total shipments in the third quarter [12] Company Strategy and Development Direction - The company is focused on innovation and expanding its product portfolio, having launched five new smartwatch products in the third quarter [8][9] - The strategy includes geographic expansion and partnerships, such as the extended cooperation with Xiaomi and the introduction of products in over 2,800 Walmart stores in the U.S. [11][13] - The company is also engaging in academic research projects to enhance healthcare services through its wearable devices [15][16] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of COVID-19 on future sales, particularly with new lockdowns in key markets [24][25] - The guidance for fourth quarter 2020 net revenues is expected to be between RMB 1.95 billion and RMB 2.15 billion, reflecting current market conditions [25] Other Important Information - The company appointed a new independent director and a new Chief Financial Officer, enhancing its leadership team [17][19] - The cash position remained strong, with cash and cash equivalents of RMB 2,556 million, up 42% from the previous year [24] Q&A Session Summary Question: Concerns about gross margin sustainability - Management acknowledged that the gross margin is affected by the product mix, particularly with Xiaomi products, but expects it to stabilize and potentially improve in the future [28][30] Question: R&D and sales and marketing investments - Management emphasized the importance of long-term investments in R&D and sales and marketing to build a foundation for future growth, especially as the pandemic subsides [31][32] Question: Health monitoring functionalities in smartwatches - Management noted the increasing consumer adoption of health monitoring features and the barriers related to medical device certification [34][35] Question: Distribution channel expansion for Amazfit products - Management reported meaningful progress in expanding distribution channels, including entry into Walmart stores and partnerships with major online platforms [48] Question: Shipment growth outlook for Xiaomi Band and Amazfit products - Management indicated that while the Xiaomi Band market may stabilize, they expect continued growth in their own branded products alongside gross margin expansion [50]

Financial Data and Key Metrics Changes - Revenues in Q2 2020 increased by 9.5% to RMB1.137 billion from RMB1.039 billion in Q2 2019 [15] - Unit sales grew by 7.2% year-over-year, with a total of approximately 8.9 million units sold [14] - Gross profit decreased by 8.6% to RMB253.4 million, resulting in a gross margin of 22.3%, down from 26.7% a year ago [15][16] - Operating income for Q2 2020 was RMB9.4 million, down from RMB22.1 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - Smartwatch shipments grew by 30% year-over-year in Q2 2020, indicating strong demand for the company's main brands [6] - The launch of Xiaomi's Mi Band 5 contributed to product shipments, with a focus on transitioning from older models [6][16] Market Data and Key Metrics Changes - The company experienced a significant impact from COVID-19, affecting retail sales globally, particularly in the Americas and Europe [16] - Despite the pandemic, the company anticipates a strong recovery in sales, particularly for its branded products in both domestic and overseas markets [37] Company Strategy and Development Direction - The company is focused on connecting health with technology, with a strategy to expand into healthcare services globally [11][7] - Investment in R&D remains a priority, with a 25% increase in R&D expenses to RMB117.2 million, reflecting a commitment to innovation and product development [18] - The introduction of the Zepp brand aims to target a different audience with a focus on digital health solutions [32] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenges posed by COVID-19 and expects a strong second half of 2020 [13][22] - The company anticipates net revenues for Q3 2020 to be between RMB2.1 billion and RMB2.15 billion, representing a 13% to 16% increase from Q3 2019 [22] Other Important Information - The company is engaged in R&D related to COVID-19 detection signals, showcasing its commitment to addressing current health challenges [18] - The partnership with Prudential Corporation Asia aims to integrate health metrics into digital health applications, expanding the company's reach in the healthcare sector [10][33] Q&A Session Summary Question: Sales and marketing expenses in Q2 - Management highlighted that expenses were directed towards channel expansion in Europe and Southeast Asia, including hiring new personnel [25] Question: R&D expectations for the second half of 2020 - Management expects R&D expenses to remain moderate in the second half of 2020 and early 2021, despite anticipated revenue growth [26] Question: Status of contract renewal with Xiaomi - Management indicated a strong relationship with Xiaomi, emphasizing that contract negotiations are ongoing and optimistic for future agreements [27] Question: Strategy for the Zepp brand - The Zepp brand is aimed at a different audience, focusing on digital health solutions and stylish product features [32] Question: Geographic sales distribution and recovery in overseas markets - Management noted that a significant portion of Amazfit products is sold overseas, particularly in Europe and Southeast Asia, with improvements expected as the pandemic situation stabilizes [41] Question: Pricing trends and average selling price - Management acknowledged that the average selling price was affected by discounts on older models but expects an increase in ASP with the launch of Mi Band 5 [45] Question: Product mix contribution in the next quarter - Management anticipates a similar product mix as previous quarters, with a 70-30 split between Xiaomi and self-branded products [47]

Financial Data and Key Metrics Changes - The company's revenue for Q1 2020 increased by 36.1% to RMB 1.1 billion from RMB 0.8 billion in Q1 2019 [16] - Gross profit rose by 12.5% to RMB 244.6 million, with a gross margin of 22.5%, down from 27.2% a year ago due to changes in product mix and sales promotions [16] - Total operating expenses increased by 60.2% to RMB 224.1 million, reflecting investments in R&D and marketing [16][18] - Net income attributable to ordinary shareholders decreased to RMB 19.2 million from RMB 85.6 million in Q1 2019 [19] Business Line Data and Key Metrics Changes - The company shipped 7.6 million units in Q1 2020, a 35.7% increase year-over-year, driven by strong demand for both self-branded products and Mi-Band 4 [14] - The introduction of new products, including smart gym hubs and fitness earphones, is part of the strategy to expand the product portfolio [19] Market Data and Key Metrics Changes - The company ranked number one in market share for smartwatches in India, Indonesia, and Spain, and number three in Russia and Mainland China [8] - The company is now present in over 70 countries with 137 channel distributors, showcasing strong global brand recognition [8] Company Strategy and Development Direction - The company aims to build a comprehensive health and fitness ecosystem, focusing on wearable technologies and health tech [7] - Continued investment in R&D and marketing is emphasized to drive long-term growth and profitability [15] - Partnerships with Xiaomi and Timex are highlighted as key collaborations for product launches [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products despite the impact of COVID-19, anticipating a recovery in sales as market conditions improve [13][20] - The company expects net revenues for Q2 2020 to be between RMB 1 billion to RMB 1.05 billion, reflecting current market conditions [20] Other Important Information - The company has made significant progress in healthcare initiatives, including partnerships for monitoring respiratory diseases using wearable devices [10] - A research article on infectious disease prediction based on wearable device data was published, indicating the potential for health surveillance systems [11] Q&A Session Summary Question: Outlook for 2020 amidst COVID-19 - Management acknowledged uncertainty but noted positive signs in primary markets, hoping for sales recovery in the second half of the year [23] Question: Consumer awareness on health impacting product sales - Management confirmed increased global awareness of health due to COVID-19, which could boost future product demand [26] Question: Drivers behind strong Q1 revenue - Revenue growth was driven by high demand for Mi-Band products and Amazfit smartwatches, offsetting the pandemic's impact [28] Question: Updates on new product features - New products with health-related features are planned, including Mi-Band 5, with no delays in R&D due to COVID-19 [30][38] Question: Factors impacting gross margin - Gross margin was affected by discounts on Mi-Band products, with expectations for improved margins as new products are released [32] Question: Recovery in specific markets - Management noted recovery signs in Europe and emphasized the importance of independent sales channels for Amazfit products [36]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019. OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

Financial Data and Key Metrics Changes - In Q4 2019, revenue increased by 72.4% to RMB2.1 billion from RMB1.2 billion in Q4 2018 [20] - Net income attributed to Huami Corporation rose by 64.5% year-over-year [19] - Shipments reached 14.7 million units in Q4 2019, representing a 59.8% growth from 9.2 million units in the same quarter of 2018 [19][20] - Gross profit increased by 62.8% to RMB503 million, with a gross margin of 23.8%, down from 25.2% a year ago [21] - Total operating expenses rose by 60.6% to RMB285 million, reflecting increased investment in R&D and marketing [21][25] Business Line Data and Key Metrics Changes - The Amazfit brand expanded to seven smartwatch product lines, contributing to strong sales growth [8][9] - Approximately 51.6% of total products sold were shipped overseas, indicating a significant international presence [9] - In Q4 2019, Amazfit watch shipments increased by 440.1% in Western Europe [11] Market Data and Key Metrics Changes - Huami ranked number one in market share for smartwatches in India, Indonesia, and Spain [10] - The company experienced a 328.5% increase in shipments in markets outside the previously mentioned countries [11] - The European market saw rapid growth, with significant increases in shipments and market share [11] Company Strategy and Development Direction - The company aims to build a comprehensive health and fitness ecosystem through new product initiatives [12] - Continued collaboration with partners like Timex and Xiaomi is a key part of the strategy [13] - Focus on healthcare technology development, including partnerships for cloud-based healthcare services [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the COVID-19 outbreak on supply chains and operations, expecting some effects in Q1 2020 [15][27] - Despite challenges, management remains confident in achieving sustainable growth and profitability in 2020 [27] - The company plans to launch new products and expand into new markets, maintaining a focus on health and fitness [47][49] Other Important Information - The company donated medical supplies in response to the COVID-19 outbreak and is leveraging AI capabilities for health monitoring [16][17] - The next generation AI chip, Huangshan-2, is in development to enhance healthcare functionalities in future products [14] Q&A Session All Questions and Answers Question: Impact of COVID-19 on 2020 outlook - Management acknowledged supply chain impacts but remains confident in catching up losses in the latter part of the year [31][32] Question: Update on Timex collaboration - The first product, Timex Ironman R300, has been launched, and further products are expected in the first half of the year [33] Question: AI intelligence project updates - The company is engaged in partnerships with institutions like Stanford University for sleep research and algorithm improvements [35] Question: Shipment breakdown by region - Europe represents approximately one-third of overseas sales, with significant growth in various EU countries [37] Question: Gross margin factors - The blended margin decreased slightly due to strong sales of lower-margin Xiaomi products, but Amazfit margins improved [42] Question: Future product focus - The company will continue to focus on health and fitness products while exploring new market opportunities [49]