viot-6k_20210329.DOCX.htm

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of March 2021

 

 

Commission File Number: 001-38649

 

 

 

Viomi Technology Co., Ltd

 

Wansheng Square, Rm 1302 Tower C, Xingang East Road, Haizhu District

Guangzhou, Guangdong, 510220

People’s Republic of China
(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F

 

Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 


 

 


 

 

 

Exhibit Index

 

Exhibit 99.1—Press Release

 

 

 

 

 


 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

VIOMI TECHNOLOGY CO., LTD

 

 

By:

/s/ Xiaoping Chen

 

Name:

Xiaoping Chen

 

Title:

Chief Executive Officer

 

Date: March 29, 2021

 

 

 

viot-ex991_7.htm

 

Exhibit 99.1

 

Viomi Technology Co., Ltd Reports Fourth Quarter and Full Year 2020 Unaudited Financial Results

 

Fourth quarter 2020 gross margin increased to 23.5% from 19.9% a year ago

 

GUANGZHOU, China, March 25, 2021 -- Viomi Technology Co., Ltd (“Viomi” or the “Company”) (NASDAQ: VIOT), a leading IoT @ Home technology company in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2020.

 

Fourth Quarter 2020 Financial and Operating Highlights

 

Net revenues reached RMB1,889.0 million (US$289.5 million), an increase of 8.5% from the fourth quarter of 2019.

 

Gross margin was 23.5%, compared to 17.1% for the third quarter of 2020 and 19.9% for the fourth quarter of 2019.

 

Net income attributable to ordinary shareholders of the Company was RMB110.6 million (US$16.9 million), an increase of 23.3% from the fourth quarter of 2019.

 

Non-GAAP net income attributable to ordinary shareholders of the Company1 was RMB115.5 million (US$17.7 million), an increase of 15.3% from the fourth quarter of 2019.

 

Number of cumulative household users reached more than 5.1 million, compared to approximately 4.6 million as of the end of the third quarter of 2020 and approximately 3.2 million as of the end of the fourth quarter of 2019.

 

Percentage of household users with at least two connected products reached 20.0%, compared to 19.5% as of the end of the third quarter of 2020 and 17.9% as of the end of the fourth quarter of 2019.

 

Full Year 2020 Financial and Operating Highlights

 

Net revenues reached RMB5,825.6 million (US$892.8 million), an increase of 25.3% from 2019.

 

Gross margin was 18.6%, compared to 23.3% for 2019.

 

Net income attributable to ordinary shareholders of the Company was RMB173.3 million (US$26.6 million).

Non-GAAP net income attributable to ordinary shareholders of the Company was RMB245.5 million (US$37.6 million).

 

1 

“Non-GAAP net income attributable to ordinary shareholders of the Company” is defined as net income attributable to ordinary shareholders of the Company excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

 


 

 

 

“As we continued to execute on our quality growth strategy which focuses on shifting our business and product mix toward higher margin products, we are pleased to deliver meaningful gross margin recovery in the fourth quarter along with strong full-year growth,” said Mr. Xiaoping Chen, Founder, Chairman of the Board of Directors and Chief Executive Officer of Viomi.

 

“As part of our growth strategy, we continue to roll out more high-end new products with a focus on seamless integration with AI and IoT, which we firmly believe to be the backbone of smart products in the IoT era. Our innovative SKUs with higher margins and higher average selling prices are the main drivers of our recent gross margin uplift. In the past months, we have introduced Super and Vision series of water purifiers under our new premium water purifier sub-brand Quanxian, new SKUs of 21Face 5G large-screen refrigerators, EyeBot AI washing machines and New Wind AI washer-dryers, together with a series of smart home devices, including 5G IoT CPE products, routers and IoT chips. In particular, as a result of our investment in Viomi-branded premium water purifiers, we have maintained our leading position in the technology innovation in this area and expect an even greater revenue contribution from this category. Earlier this month, two of our water purification technologies were recognized by professional organizations and experts including China Association for Quality Inspection with the potential to be applied in the water purification industry. In addition, leveraging our investment and endeavors in research and development, we have achieved solid performance in patent innovation. As of the end of 2020, the number of our accumulative domestic and global patent applications had reached over 3,000, among which, over 2,400 were already registered.

 

“The successful launch and rapid development of our new business in Viomi-branded sweeper robots for domestic and overseas expansion were also key pillars of our overall profitability improvement. In the fourth quarter, we assembled a dedicated sweeper robot team and introduced Alpha and other series of sweeper robots. We will continue to roll out more differentiated SKUs and expand into more global markets.

 

“We are also seeking to provide more comprehensive IoT household solutions, consisting of IoT product experiences, services and internet content. With regards to our value-added content, we consistently upgrade our large-screen refrigerator operating system and recently expanded our cooperation with additional third-party platforms to further enrich our large-screen internet resources and create differentiated kitchen scenario experience and increase user stickiness,” added Mr. Chen.

 

“As we progressed into 2021, we have continued to execute on our quality growth operating strategy through the introduction of new high-end products and the optimization across product lines. We will introduce a series of new AI products including water purifiers, sweeper robots, air conditioners, and smart kitchen products, among others, in our upcoming Spring new product launch event in early April. We will also invest more resources in branding and research and development for our IoT products, as well as our IoT service system to optimize our 5G IoT Home system and user experience. We remain confident in our ability to maintain our leading position in the IoT home industry as we continue to execute our strategy to deliver robust and stable growth, a healthy level of profitability and long-term shareholder value,” concluded Mr. Chen.

 

 


 

Fourth Quarter 2020 Financial Results

 

REVENUE

 

Net revenues increased by 8.5% to RMB1,889.0 million (US$289.5 million) from RMB1,741.7 million for the fourth quarter of 2019. The growth was slightly below the Company’s previous guidance by approximately 0.6%, primarily due to the proactive step to stop the sales of some specific products with lower average selling prices and lower gross margins, e.g. specific low-end refrigerators and washing machines, in order to make room for the launch of new large-screen refrigerators and high-end washing machines and improve profitability.

 

 

-

IoT @ Home portfolio. Revenues from IoT @ Home portfolio increased by 15.7% to RMB1,114.6 million (US$170.8 million) from RMB963.7 million for the fourth quarter of 2019. The growth was primarily driven by sustained sales increases for certain new product categories, in particular sweeper robots.

 

 

-

Home water solutions. Revenues from home water solutions decreased by 5.9% to RMB363.0 million (US$55.6 million) from RMB385.9 million for the fourth quarter of 2019. The decline was primarily due to the decreases in average selling prices of Xiaomi-branded water purifier products. This was partially offset by the successful introduction and increased sales of a new series of Viomi-branded water purifier products, which narrowed the year-over-year decline for home water solutions, compared to previous quarters.

 

 

-

Consumables. Revenues from consumables increased by 69.3% to RMB160.2 million (US$24.5 million) from RMB94.6 million for the fourth quarter of 2019, primarily due to increased demand for the Company’s water purifier filter products.

 

 

-

Small appliances and others. Revenues from small appliances and others decreased by 15.5% to RMB251.2 million (US$38.5 million) from RMB297.4 million for the fourth quarter of 2019, primarily due to product portfolio optimization for higher gross margin in this category.

 

GROSS PROFIT

 

Gross profit increased by 28.0% to RMB443.8 million (US$68.0 million) from RMB346.6 million for the fourth quarter of 2019. Gross margin was 23.5%, compared to 17.1% for the third quarter of 2020 and 19.9% for the fourth quarter of 2019. The quarter-over-quarter and year-over-year increases in gross margin were primarily driven by the Company’s efforts to shift the business and product mix toward higher gross margin products, including the roll out of new Viomi-branded water purifiers and sweeper robots, alongside the optimization of margins across product lines.

 

OPERATING EXPENSES

 

Total operating expenses increased by 21.3% to RMB331.8 million (US$50.8 million) from RMB273.6 million for the fourth quarter of 2019, primarily due to the growth of the Company’s business, as well as the increases in research and development expenses and selling and marketing expenses.

 

 


 

Research and development expenses increased by 41.8% to RMB93.1 million (US$14.3 million) from RMB65.6 million for the fourth quarter of 2019.

 

Selling and marketing expenses increased by 17.3% to RMB217.4 million (US$33.3 million) from RMB185.3 million for the fourth quarter of 2019.

 

General and administrative expenses decreased by 5.7% to RMB21.3 million (US$3.3 million) from RMB22.6 million for the fourth quarter of 2019.

 

INCOME FROM OPERATIONS

 

Income from operations increased by 36.4% to RMB126.3 million (US$19.4 million) from RMB92.6 million for the fourth quarter of 2019.

 

Non-GAAP operating income2, which excludes the impact of share-based compensation expenses, increased by 27.3% to RMB131.2 million (US$20.1 million) from RMB103.1 million for the fourth quarter of 2019.

 

NET INCOME

 

Net income attributable to ordinary shareholders of the Company was RMB110.6 million (US$16.9 million), compared to RMB89.7 million for the fourth quarter of 2019.

 

Non-GAAP net income attributable to ordinary shareholders of the Company increased by 15.3% to RMB115.5 million (US$17.7 million) from RMB100.2 million for the fourth quarter of 2019.

 

BALANCE SHEET

 

As of December 31, 2020, the Company had cash and cash equivalents of RMB504.1 million (US$77.3 million), restricted cash of RMB70.6 million (US$10.8 million), short-term deposits of nil and short-term investments of RMB696.1 million (US$106.7 million), compared to RMB972.4 million, RMB30.6 million, RMB60.0 million and RMB316.2 million, respectively, as of December 31, 2019.

 

Full Year 2020 Financial Results

 

REVENUE

 

Net revenues increased by 25.3% to RMB5,825.6 million (US$892.8 million) from RMB4,647.5 million for 2019.

 

 

-

IoT @ Home portfolio. Revenues from IoT @ Home portfolio increased by 45.6% to RMB3,671.7 million (US$562.7 million) from RMB2,522.2 million for 2019.

 

 

2 

“Non-GAAP operating income” is defined as income from operation excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

 


 

 

 

-

Home water solutions. Revenues from home water solutions decreased by 17.1% to RMB883.3 million (US$135.4 million) from RMB1,065.2 million for 2019.

 

 

-

Consumables. Revenues from consumables increased by 44.0% to RMB382.9 million (US$58.7 million) from RMB265.8 million for 2019.

 

 

-

Small appliances and others. Revenues from small appliances and others increased by 11.8% to RMB887.7 million (US$136.0 million) from RMB794.3 million for 2019.

 

GROSS PROFIT

 

Gross profit was RMB1,083.0 million (US$166.0 million), compared to RMB1,082.4 million for 2019. Gross margin was 18.6%, compared to 23.3% for 2019.

 

OPERATING EXPENSES

 

Total operating expenses increased by 15.4% to RMB931.8 million (US$142.8 million) from RMB807.2 million for 2019.

 

Research and development expenses increased by 29.6% to RMB265.7 million (US$40.7 million) from RMB204.9 million for 2019.

 

Selling and marketing expenses increased by 12.8% to RMB597.2 million (US$91.5 million) from RMB529.2 million for 2019.

 

General and administrative expenses decreased by 5.7% to RMB68.9 million (US$10.6 million) from RMB73.1 million for 2019.

 

As a percentage of total net revenues, total operating expenses decreased to 16.0% from 17.4% for 2019.

 

INCOME FROM OPERATIONS

 

Income from operations was RMB184.0 million (US$28.2 million), compared to RMB311.1 million for 2019.

 

Non-GAAP operating income, which excludes the impact of share-based compensation expenses, was RMB256.2 million (US$39.3 million), compared to RMB354.2 million for 2019.

 

NET INCOME

 

Net income attributable to ordinary shareholders of the Company was RMB173.3 million (US$26.6 million), compared to RMB292.2 million for 2019.

 

Non-GAAP net income attributable to ordinary shareholders of the Company was RMB245.5 million (US$37.6 million), compared to RMB335.3 million for 2019.

 

 


 

OUTLOOK

 

For the first quarter of 2021, the Company currently expects:

 

 

-

Net revenues to be between RMB900 million and RMB950 million, representing a year-over-year growth of approximately 17.6% to 24.1%.

 

The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

 

Conference Call

 

The Company’s management will host a conference call at 8:00 a.m. Eastern Time on Thursday, March 25, 2021 (8:00 p.m. Beijing/Hong Kong time on March 25, 2021) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

 

United States (Toll Free):

+1-888-346-8982

 

 

International:

+1-412-902-4272

 

 

Mainland China (Toll Free):

400-120-1203

 

 

Hong Kong (Toll Free):

800-905-945

 

 

Hong Kong:

+852-3018-4992

 

 

Conference ID:

10153115

 

A telephone replay will be available one hour after the call until April 1, 2021 by dialing:

 

United States:

+1-877-344-7529

 

 

International:

+1-412-317-0088

 

 

Replay Passcode:

10153115

 

Additionally, a live and archived webcast of the conference call will be available at http://ir.viomi.com.

 

About Viomi Technology

 

Viomi’s mission is to redefine the future home via the concept of IoT @ Home.

 

Viomi has developed a unique IoT @ Home platform consisting an ecosystem of innovative IoT-enabled smart home products, together with a suite of complementary consumable products and value-added businesses. This platform provides an attractive entry point into the consumer home, enabling consumers

 


 

to intelligently interact with a broad portfolio of IoT products in an intuitive and human-like manner to make daily life more convenient, efficient and enjoyable, while allowing Viomi to grow its household user base and capture various additional scenario-driven consumption events in the home environment.

 

For more information, please visit: http://ir.viomi.com.

 

Use of Non-GAAP Measures

 

The Company uses non-GAAP operating income and non-GAAP net income attributable to ordinary shareholders, which are non-GAAP financial measures, in evaluating its operating results and for financial and operational decision-making purposes. Non-GAAP operating income is income from operations excluding share-based compensation expenses. Non-GAAP net income attributable to ordinary shareholders is net income attributable to ordinary shareholders excluding share-based compensation expenses. The non-GAAP adjustments do not have any tax impact as share-based compensation expenses are non-deductible for income tax purpose.

 

The Company believes that non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges, and these measures provide useful information about the Company’s operating results, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

 

Non-GAAP financial measures should not be considered in isolation or construed as alternative to income from operations, net income, or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. We encourage investors and others to review its financial information in its entirety and not rely on a single financial measure.

 

Exchange Rate

 

The Company’s business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB 6.5250 to US$1.00, the effective noon buying rate for December 31, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on for December 31, 2020, or at any other rate.

 

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. Among other things, the business outlook and quotations from management in this announcement, as well as Viomi’s strategic and operational plans, contain forward-looking statements. Viomi may also make written or oral forward-looking statements in its periodic reports to the United States Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to Fourth parties. 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 Company’s growth strategies; the cooperation with Xiaomi, the recognition of the Company’s brand; trends and competition in global IoT-enabled smart home market; development and commercialization of new products, services and technologies; governmental policies relating to the Company’s industry and general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. 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:

 

Viomi Technology Co., Ltd

Cecilia Li

E-mail: ir@viomi.com.cn

 

The Piacente Group, Inc.

Emilie Wu

Tel: +86-21-6039-8363

E-mail: viomi@tpg-ir.com

 

In the United States:

 

The Piacente Group, Inc.  

Brandi Piacente

Tel: +1-212-481-2050

E-mail: viomi@tpg-ir.com

 

 

 


 

 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

As of

December 31,

 

 

As of December 31,

 

 

 

2019

 

 

2020

 

 

2020

 

 

 

RMB

 

 

RMB

 

 

US$

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

972,438

 

 

 

504,108

 

 

 

77,258

 

Restricted cash

 

 

30,567

 

 

 

70,601

 

 

 

10,820

 

Short-term deposits

 

 

60,000

 

 

-

 

 

-

 

Short-term investments

 

 

316,201

 

 

 

696,051

 

 

 

106,674

 

Accounts and notes receivable from third parties (net of allowance of RMB2,006 and RMB9,246 as of December 31, 2019 and 2020, respectively)

 

 

316,189

 

 

 

427,352

 

 

 

65,495

 

Accounts receivable from a related party (net of allowance of nil and RMB61 as of December 31, 2019 and 2020, respectively)

 

 

707,947

 

 

 

609,094

 

 

 

93,348

 

Other receivables from related parties (net of allowance of nil and RMB9 as of December 31, 2019 and 2020, respectively)

 

 

23,944

 

 

 

88,038

 

 

 

13,492

 

Inventories

 

 

418,015

 

 

 

439,375

 

 

 

67,337

 

Prepaid expenses and other current assets

 

 

62,314

 

 

 

87,280

 

 

 

13,377

 

Long-term deposits due within one year

 

-

 

 

 

10,000

 

 

 

1,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

2,907,615

 

 

 

2,931,899

 

 

 

449,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other non-current assets

 

 

11,170

 

 

 

19,803

 

 

 

3,035

 

Property, plant and equipment, net

 

 

67,293

 

 

 

72,436

 

 

 

11,101

 

Deferred tax assets

 

 

12,276

 

 

 

14,189

 

 

 

2,175

 

Intangible assets, net

 

 

4,357

 

 

 

7,681

 

 

 

1,177

 

Right-of-use assets, net

 

 

19,762

 

 

 

20,529

 

 

 

3,146

 

Land use rights, net

 

-

 

 

 

62,982

 

 

 

9,652

 

Long-term deposits

 

-

 

 

 

50,000

 

 

 

7,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-current assets

 

 

114,858

 

 

 

247,620

 

 

 

37,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

3,022,473

 

 

 

3,179,519

 

 

 

487,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts and notes payable

 

 

1,043,159

 

 

 

1,001,371

 

 

 

153,467

 

Advances from customers

 

 

103,150

 

 

 

112,613

 

 

 

17,259

 

Amount due to related parties

 

 

25,106

 

 

 

124,192

 

 

 

19,033

 

Accrued expenses and other liabilities

 

 

325,042

 

 

 

335,488

 

 

 

51,416

 

Short-term borrowing

 

 

95,868

 

 

-

 

 

-

 

Income tax payables

 

 

33,522

 

 

 

50,962

 

 

 

7,810

 

Lease liabilities due within one year

 

 

6,993

 

 

 

9,481

 

 

 

1,453

 

Total current liabilities

 

 

1,632,840

 

 

 

1,634,107

 

 

 

250,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

1,795

 

 

 

3,400

 

 

 

521

 

Lease liabilities

 

 

13,391

 

 

 

11,693

 

 

 

1,792

 

Total non-current liabilities

 

 

15,186

 

 

 

15,093

 

 

 

2,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

1,648,026

 

 

 

1,649,200

 

 

 

252,751

 

 

 


 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

As of

December 31,

 

 

As of December 31,

 

 

 

2019

 

 

2020

 

 

2020

 

 

 

RMB

 

 

RMB

 

 

US$

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

Class A Ordinary Shares (US$0.00001 par value; 4,800,000,000 shares authorized; 98,444,732 and 104,163,686 shares issued and outstanding as of December 31, 2019 and 2020, respectively)

 

 

6

 

 

 

6

 

 

 

1

 

Class B Ordinary Shares (US$0.00001 par value; 150,000,000 shares authorized; 110,850,000 and 103,554,546 shares issued and outstanding as of December 31, 2019 and 2020, respectively)

 

 

6

 

 

 

6

 

 

 

1

 

Treasury stock

 

-

 

 

 

(54,600

)

 

 

(8,368

)

Additional paid-in capital

 

 

1,192,332

 

 

 

1,278,004

 

 

 

195,863

 

Retained earnings

 

 

195,596

 

 

 

363,051

 

 

 

55,640

 

Accumulated other comprehensive loss

 

 

(19,145

)

 

 

(59,384

)

 

 

(9,101

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity attributable to shareholders of the Company

 

 

1,368,795

 

 

 

1,527,083

 

 

 

234,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

5,652

 

 

 

3,236

 

 

 

496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

1,374,447

 

 

 

1,530,319

 

 

 

234,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

 

3,022,473

 

 

 

3,179,519

 

 

 

487,283

 

 

 

Note: On January 1, 2020, the Company adopted ASC326, “Financial Instruments-Credit Losses” using modified-retrospective transition approach. Following the adoption of this guidance, a cumulative-effect adjustment to retained earnings, amounting to RMB2.4 million, was recognized as of January 1, 2020.

 


 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2020

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2020

 

 

 

RMB

 

 

RMB

 

 

US$

 

 

RMB

 

 

RMB

 

 

US$

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A related party

 

 

891,271

 

 

 

1,046,628

 

 

 

160,403

 

 

 

2,112,170

 

 

 

2,889,441

 

 

 

442,826

 

Third parties

 

 

850,379

 

 

 

842,382

 

 

 

129,101

 

 

 

2,535,343

 

 

 

2,936,183

 

 

 

449,990

 

Total net revenues

 

 

1,741,650

 

 

 

1,889,010

 

 

 

289,504

 

 

 

4,647,513

 

 

 

5,825,624

 

 

 

892,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (including RMB24,002, RMB79,285, RMB48,424 and RMB454,432 with related parties for the three months ended December 31, 2019 and 2020 and for the twelve months ended December 31,2019 and 2020, respectively)

 

 

(1,395,080

)

 

 

(1,445,245

)

 

 

(221,493

)

 

 

(3,565,109

)

 

 

(4,742,668

)

 

 

(726,846

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

346,570

 

 

 

443,765

 

 

 

68,011

 

 

 

1,082,404

 

 

 

1,082,956

 

 

 

165,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses (including RMB657, RMB621, RMB657 and RMB1,915 with related parties for the three months ended December 31, 2019 and 2020 and for the twelve months ended December 31, 2019 and 2020, respectively)

 

 

(65,633

)

 

 

(93,075

)

 

 

(14,264

)

 

 

(204,942

)

 

 

(265,680

)

 

 

(40,717

)

Selling and marketing expenses (including RMB36,935, RMB44,595, RMB81,851 and RMB97,223, with related parties for the three months ended December 31, 2019 and 2020 and for the twelve months ended December 31, 2019 and 2020, respectively)

 

 

(185,320

)

 

 

(217,352

)

 

 

(33,311

)

 

 

(529,212

)

 

 

(597,176

)

 

 

(91,521

)

General and administrative expenses

 

 

(22,628

)

 

 

(21,344

)

 

 

(3,271

)

 

 

(73,061

)

 

 

(68,914

)

 

 

(10,562

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

(273,581

)

 

 

(331,771

)

 

 

(50,846

)

 

 

(807,215

)

 

 

(931,770

)

 

 

(142,800

)

Other income, net

 

 

19,607

 

 

 

14,297

 

 

 

2,191

 

 

 

35,880

 

 

 

32,795

 

 

 

5,026

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

92,596

 

 

 

126,291

 

 

 

19,356

 

 

 

311,069

 

 

 

183,981

 

 

 

28,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and investment income

 

 

9,582

 

 

 

9,550

 

 

 

1,464

 

 

 

26,109

 

 

 

31,968

 

 

 

4,899

 

Other non-operating income

 

 

530

 

 

 

554

 

 

 

85

 

 

 

1,842

 

 

 

1,818

 

 

 

279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expenses

 

 

102,708

 

 

 

136,395

 

 

 

20,905

 

 

 

339,020

 

 

 

217,767

 

 

 

33,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expenses

 

 

(12,470

)

 

 

(25,191

)

 

 

(3,861

)

 

 

(45,190

)

 

 

(43,321

)

 

 

(6,639

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

90,238

 

 

 

111,204

 

 

 

17,044

 

 

 

293,830

 

 

 

174,446

 

 

 

26,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to the non-controlling interest shareholders

 

 

540

 

 

 

633

 

 

 

97

 

 

 

1,660

 

 

 

1,122

 

 

 

172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to ordinary shareholders of the Company

 

 

89,698

 

 

 

110,571

 

 

 

16,947

 

 

 

292,170

 

 

 

173,324

 

 

 

26,563

 

 

 


 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2020

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2020

 

 

 

RMB

 

 

RMB

 

 

US$

 

 

RMB

 

 

RMB

 

 

US$

 

Net income attributable to the Company

 

 

89,698

 

 

 

110,571

 

 

 

16,947

 

 

 

292,170

 

 

 

173,324

 

 

 

26,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(9,946

)

 

 

(25,757

)

 

 

(3,947

)

 

 

10,641

 

 

 

(40,239

)

 

 

(6,167

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable to the Company

 

 

79,752

 

 

 

84,814

 

 

 

13,000

 

 

 

302,811

 

 

 

133,085

 

 

 

20,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ADS *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Basic

 

 

1.29

 

 

 

1.60

 

 

 

0.25

 

 

 

4.21

 

 

 

2.50

 

 

 

0.38

 

-Diluted

 

 

1.24

 

 

 

1.53

 

 

 

0.23

 

 

 

4.06

 

 

 

2.42

 

 

 

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ADS used in calculating net income per ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Basic

 

 

69,644,780

 

 

 

69,281,941

 

 

 

69,281,941

 

 

 

69,385,502

 

 

 

69,604,016

 

 

 

69,604,016

 

-Diluted

 

 

72,117,474

 

 

 

72,417,910

 

 

 

72,417,910

 

 

 

71,951,859

 

 

 

71,874,591

 

 

 

71,874,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to ordinary shareholders of the Company:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Basic

 

 

0.43

 

 

 

0.53

 

 

 

0.08

 

 

 

1.40

 

 

 

0.83

 

 

 

0.13

 

-Diluted

 

 

0.41

 

 

 

0.51

 

 

 

0.08

 

 

 

1.35

 

 

 

0.81

 

 

 

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares used in calculating net income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Basic

 

 

208,934,340

 

 

 

207,845,824

 

 

 

207,845,824

 

 

 

208,156,507

 

 

 

208,812,049

 

 

 

208,812,049

 

-Diluted

 

 

216,352,423

 

 

 

217,253,730

 

 

 

217,253,730

 

 

 

215,855,577

 

 

 

215,623,773

 

 

 

215,623,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Each ADS represents 3 ordinary shares.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Share-based compensation was allocated in operating expenses as follows:

 


 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2020

 

 

December 31,

2019