Zepp Health Company Profile

Overview

Zepp Health’s mission is to connect health with technology as a healthcare services technology company and world-leading maker of smart wearables. Since its inception in 2013, the company has developed a platform of proprietary technology including AI chips, biometric sensors, and data algorithms, which drive a broadening line of smart health products for consumers, and analytics services for industry.

Zepp Health has built a complete health and fitness ecosystem, including smart wristbands, smartwatches, sports headphones, treadmills, weight and body fat scales, shoes, clothing, and other accessories.

Senior Leadership Team

Wang Huang is Zepp Health’s (Huami’s) founder, chairman, and CEO. Huang is a serial entrepreneur and a pioneer in China's embedded Linux system, MP4 player, tablet PC, and smartwatch industries. Wang is a graduate of the Department of Physics of the University of Science and Technology of China with a major in microelectronics.

Mike Yan Yeung is Zepp Health’s (Huami’s) chief operating officer. Prior to joining Huami, Mike served as a Vice President of Shunwei Capital, a China-based venture capital firm, where he focused on investments in mobile internet applications, smart home technologies, smart wearables, IoT and online health care.

Leon Cheng Deng is Huami’s chief financial officer. Prior to joining Huami, Deng served as the Global Head of Finance for Philips Domestic Appliances Division, Royal Phillips.

Brad Samson is Zepp Health’s (Huami’s) vice president of investor relations. Samson has extensive experience in the healthcare, wellness and technology industries and previously led investor relations for companies ranging from small caps to Silicon Valley unicorns.

Tim Houchinis Zepp Health’s (Huami’s) vice president of business and corporate development. Houchin is a serial entrepreneur with 20+ years of experience in enterprise software sales and healthcare. He previously led the enterprise group for Pebble (acquired by Fitbit) and is currently responsible for business development and M&A focused on medical technology that supports Zepp Health’s commercial strategy.

Gareth Jones is Zepp Health’s (Huami’s) vice president of strategic business development & investment in EMEA. Jones has 20+ years of sales experience in European markets and previously served as vice president & general manager of EMEA for Fitbit.

Ramesh Jain is Zepp Health’s (Huami’s) AI Research Institute’s Chief Technical Advisor. Jain is a renowned AI researcher and the "Father of Multimedia Computing,” Jain is also the founder of UC Irvine’s Institute for Future Health.

Pengtao Yu is Huami’s chief industrial designer. Prior to joining Huami, Yu worked at Moov Inc., a smart wearable device start-up, and played an instrumental role in designing and developing Moov’s fitness tracker. Yu is a four-time Bronze winner of the International Design Excellence Award, a three-time winner of the iF Design Award (Germany), and also a recipient of the Red Dot Design Award (Germany) in 2011 and 2016.

Full bios: click here

Company Milestones

December 2013 - Huami founded to develop, manufacture and sell smart wearable devices.

January 2015 -- Huami opens first U.S. office in Cupertino, CA

September 2015 - Huami launches Amazfit product line of consumer smart watches.

February 2018 – Huami is listed on the New York Stock Exchange (NYSE: HMI), becoming China's first smart hardware innovation company to enter the U.S. capital markets.

September 2018 -- Huami launches the world’s first smart wearable chip, Huangshan1, based on the open standard RISC-V instruction set that is now applied at scale to Huami’s own Amazfit brand of smartwatches and smart wristbands.

July 2018 - Huami acquires core assets of Zepp International to expand Huami's footprint in the performance sports analytics field through global product development opportunities as well as deepening Huami's expertise in motion and activity-driven analysis.

July 2018 – Huami enters partnership with PAI Health; this strategic alliance enhances PAI Health’s offering in the fast-growing insurtech space providing insurers with a more effective way to engage their customers, as well as assess, monitor and reduce customer risk.

June 2020 -- Huami releases a new generation of smart wearable chip, Huangshan 2, which offers high computing efficiency and low power consumption.

June 2020 -- Huami forms the new Huami AI Research Institute and appoints UC Irvine professor Ramesh Jain as the Institute’s Chief Technical Advisor.

July 2020 – Prudential and Huami expand partnership to deliver new health products and services. Read More.

August 2020 – Huami Corp. partners with Aspen Imaging Healthcare. Read More.

October 2020 –Huami Corp. announces multi-year strategic cooperation agreement extension with Xiaomi Corp. Read More.

November 2020 – Huami Corp. and Royal DSM announce collaboration on wearable technologies and health tracking for personal nutrition. Read More.

December 2020 – Huami Corp. partners with Promaxo for technology collaboration and integration, geographic expansion. Read More.

January 2021 –Huami Corp. enters definitive agreement to acquire a minority stake in Jiangsu YiTong High-Tech Co., LTD. to expand the healthcare ecosystem for Chinese market. Read More.

January 2021 – Promaxo Raises $4.17M in funding round let by Huami Corp. Read More.

February 2021 – Huami rebrands to Zepp Health, reflecting the company’s expanding health technology portfolio and entry into commercial healthcare market. Currently, Zepp Health has more than 1,400 employees and offices in cities around the world, including Hefei, Beijing, Shenzhen, Shanghai, and Nanjing in China, as well as Silicon Valley in the U.S.

Market Share & Growth

In the third quarter of 2020, Zepp Health (Huami) shipped a total of 15.9 million units, a year-on-year increase of 16%. Revenue and profits have also maintained growth. The total revenue reached RMB 2.2 billion, or US$329.2; GAAP diluted net income per share of RMB0.31 (US$0.05), or GAAP diluted net income per ADS of RMB1.24 (US$0.18). This was also the highest revenue figure for a single quarter in Huami’s history.

According to IDC’s Worldwide Quarterly Wearable Device Tracker, global shipments of Huami adult smartwatches reached 980,000 units with a year-on-year increase of 80.2%, which substantially exceeded the overall market growth rate. Huami ranked among the top 5 for global watch shipments and market shares in the first quarter of 2020. Additionally, for the first time, Huami ranked among the top five brands in the U.S., the largest single market for smartwatches worldwide, ahead of all other Chinese brands. Huami also had the largest market share in Spain, Italy, India, and Indonesia.

According to IDC, Huami’s 42.3 million units shipped in 2019 represented 26% of global smart watch and fitness band shipments last year¹; with proprietary technology in the space as evidenced by the June 15 announcement of its second-generation AI chip, the Huangshan 2; and achieving US$835M in revenue and US$1.28 in diluted GAAP EPADS for 2019.

Huami watch shipments increased by 48% year-on-year in the first half of 2020. Q2 sales of Amazfit watches increased by 20% year-on-year, far exceeding the adult watch market by 11%.

According to IDC’s wearable device report for Q2 2020, Amazfit watches ranked first in the adult watch market in India, Indonesia, Italy, and Spain. Additionally, Amazfit watches were ranked third in Thailand; fourth in China and Russia; and among the top five in Germany, France, Brazil, and Poland.

Zepp Health (Huami’s) R&D expenses have totaled 117.2 million yuan, an increase of 25% year-on-year with share of revenue exceeding 10%. These investments in increasing R&D personnel and expansion will help accelerate the development of Zepp Health Technology.

Zepp Health’s customers use the company’s smart wearables to track and improve their health. As of April 30, 2020, in the aggregate, Zepp Health’s smart wearable devices have recorded 74.4 trillion steps, 9.5 billion nights of sleep, 30.7 billion hours of heart rate recordings, 15.2 million pieces of ECG electrocardiogram data, and close to 91,100 events of initially screened atrial fibrillation and suspected atrial fibrillation.

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

Huami Product Lines

Overview

Zepp Health offers several product lines, including:
1. Zepp Consumer Wearables: Founded in 2010, Zepp is a premium consumer lifestyle brand focused on personalized health management. Products includes smartwatches and the Zepp app.
2. Amazfit: Established in 2015, the award-winning Amazfit brand offers several series of smart watches designed for daily and outdoor sport use, as well as other smart fitness wearables, hardware and accessories. Currently, Amazfit products are available in more than 70 countries and regions,
Zepp Health is also committed to developing new medical imaging product lines and expanding into the commercial healthcare market in 2021. Our newest smart wearable chip, Huangshan-2 is scheduled for mass production in Q4 of 2020.

Amazfit

Amazfit smartwatches have been recognized by the German iF Industrial Design Awards and Red Dot Design Awards multiple times for excellent design and craftsmanship.
Amazfit ZenBuds are a lightweight, noise-masking earbuds that provide a smart sleep monitoring function to help users form healthy sleeping habits. These earbuds are currently in production and shipping in September 2020.
Amazfit AirRun is a compact home treadmill that folds up easily in 5 seconds to fit in small spaces. An extra wide running belt offers extra stability and mimics outdoor running, while the JBL custom surround sound speakers provide superior sound quality. The treadmill also supports synchronization of heart rate data with Amazfit wearables.
Amazfit HomeStudio is an in-home fitness system that combines a Smart Gym Hub with a built-in 43” LCD HD screen and treadmill and a high-end slat belt treadmill. A 3D TOF camera system provides precise motion recognition for more scientific fitness guidance. The Amazfit HomeStudio also supports synchronization of heart rate data from Amazfit wearables and connects to on-demand fitness classes.

Huangshan

Huami launched the world's first smart wearable chip, Huangshan 1, in 2018, based on the open standard RISC-V instruction set, which has been applied at scale to Huami’s owned Amazfit brand of smartwatches and smart wristbands.
In June 2020, Huami released a new generation of smart wearable chip, Huangshan 2, which offers high computing efficiency and low power consumption. The chip’s overall computational efficiency has increased by 38%, compared to the ARM Cortex-M4 architecture. It detects atrial fibrillation seven times faster than Huangshan 1 and 26 times higher than similar algorithms. Mass production is expected to begin in Q4 2020.

Sensors & Data Engines

Huami has established a complete ecosystem of sensors and AI-driven data engines, including: BioTracker™2, a second-generation PPG biology tracking optical sensor; RealBeats™2, a second-generation heart rate engine; OxygenBeats™, a blood oxygen engine; SomnusCare™, a sleep data engine; ExerSense™, an AI recognition engine for motion patterns based on sports big data, and Huami-PAI™, a human health assessment system.

Partnerships & Subsidiaries

About Zepp Health Corp (NYSE: ZEPP)

Zepp Health’s mission is to connect health with technology. Since its inception in 2013, the company has developed a platform of proprietary technology including AI chips, biometric sensors, and data algorithms, which drive a broadening line of smart health products for consumers, and analytics services for industry. In 2019, the company shipped 36.6 million units of smart watches and fitness bands, including its own Amazfit brand, and products developed and manufactured for Xiaomi, comprising 23% of global category shipments. The company is headquartered in Hefei, China, with U.S. operations, Huami-USA, based in Cupertino, Calif. For more information, please visit click here

About PAI Health

PAI Health allows organizations to assess, monitor and guide their people to better health, providing individuals with motivational guidance on personalized recommended physical activity levels. PAI Health’s mission is to optimize anyone's path to better health by making the science-backed Personal Activity Intelligence (PAI) metric a global health standard through partnerships with insurers, employee wellness programs, technology platforms, health care providers and other industry partners. For more information, visit click here

Academic Partners

Zepp Health has collaborated with renowned universities around the world for R&D, product development, operations, and education. Domestic university partners include the University of Science and Technology of China, Tianjin University and Beihang University. Huami also partners with universities internationally, including the Norwegian University of Science and Technology (NTNU), Stanford University, and the University of California, San Diego (UCSD).

Zepp Health has worked with Peking University First Hospital to conduct a clinical study on the atrial fibrillation testing of intelligent wearables. The Amazfit 1S Smart Bracelet was used in this study. The results showed that ECG and PPG’s accuracy in judging atrial fibrillation was as high as 94.76% and 93.27%, respectively, reaching professional human physicians’ capabilities. The research results were published in the Heart Rhythm Journal, the official peer-reviewed journal of the Heart Rhythm Society (HRS).

Other Strategic Partners & Investments

Zepp Health has numerous distribution channels and strategic partners worldwide, including Timex and AliveCor, an American digital medical company.

In the sports and fitness space, Huami acquired the core assets of Zepp, a multi-sport sensor company and Physical Enterprises Inc (PEI), part of the Adidas Group, thereby maintaining its leading edge in technology and products in this field.

Zepp Health continues to invest in cutting-edge chip design research and development and is a member of the RISC-V Foundation.

Zepp Health has invested in two chip design research and development startups -- SiFive and GreenWaves Technologies -- and also invested in Nurlink and BlueX MicroElectronics to complement its wearables and IoT chip portfolios.

Zepp Health is an official partner of the Chinese National Track and Field Team and the Chinese Athletics Association for smart wearables and smartphones. The two parties have established the Track and Field Joint Laboratory to advance the development of China's track and field athletics. This is based on Zepp Health's accumulated experience in intelligent hardware R&D and analysis of fitness big data. click here

CSR Efforts

In early 2020, Zepp Health (Huami) took active measures against COVID-19, providing assistance through the donation of medical supplies and the establishment of special funds, totaling RMB 11.5 million. Furthermore, Zepp Health (Huami) has also actively explored ways to facilitate the analysis and prediction of epidemic disease trends by using big data and AI technologies to establish an early epidemic warning system.