Viomi Expertise Co., Ltd Stories Second Quarter 2022 Unaudited Monetary Outcomes

Gross margin improved year-over-year to 22.1% from 21.2 %

GUANGZHOU, China, Aug. 22, 2022 /PRNewswire/ — Viomi Expertise Co., Ltd (“Viomi” or the “Firm”) (NASDAQ: VIOT), a number one IoT @ Dwelling expertise firm in China, right this moment introduced its unaudited monetary outcomes for the second quarter ended June 30, 2022.

Second Quarter 2022 Monetary and Working Highlights

• Web revenues reached RMB924.2 million (US$138.0 million), in comparison with RMB1,658.9 million for the second quarter of 2021.
• Gross margin elevated to 22.1% from 21.2% for the second quarter of 2021.
• Variety of cumulative family customers reached roughly 7.2 million, in comparison with roughly 6.9 million as of the tip of the primary quarter of 2022 and roughly 5.9 million as of the tip of the second quarter of 2021.
• Share of family customers with at the very least two linked merchandise reached 22.0%, in comparison with 21.8% as of the tip of the primary quarter of 2022 and 20.7% as of the tip of the second quarter of 2021.

Mr. Xiaoping Chen, Founder and CEO of Viomi, commented, “Within the second quarter, we continued to execute our high-quality enterprise operation technique: (i) proceed to streamline SKUs and optimize our product combine; (ii) deal with core enterprise and product traces to construct best-selling merchandise; and (iii) implement price management and effectivity enchancment measures in manufacturing and provide chain. These efforts led to the continued optimization of our enterprise operation with gross margin rising by about 1% year-over-year, representing consecutive year-over-year enchancment for the reason that fourth quarter of 2020. Regardless of COVID-19 recurrences and weak client spending exerting appreciable strain on our gross sales, we made important progress in product innovation, channel optimization and strategic cooperation alongside the event of our one-stop IoT residence options, additional solidifying the muse for our long-term product enhancement and branding affect.”

“First, with respect to our merchandise, we launched a collection of latest AI merchandise at our strategic new merchandise launch occasion in March, together with Area Professional, our all-space AI air conditioner that includes formaldehyde elimination; Boss, our large-screen fridge with AI health performance; our Royal collection of AI laser interactive sensible screens incorporating 4K UHD show; Tremendous 2, our 2000G tremendous large-flux water air purifier which generates ultra-micro bubbles to take away pesticide residues; and our Royal collection of AI twin-tub washing machines. Amongst them, the air conditioner, water air purifier, and interactive sensible display screen got here to market within the second quarter. We additionally launched a collection of latest sensible residence gadgets, reminiscent of EyeLink, our sensible lock with upgraded 3D facial recognition expertise, in addition to HomePad Plus, our AI screen-based management interface for managing all sensible residence home equipment throughout situations. These new AI-equipped merchandise present our customers with a superior sensible residence expertise and have acquired favorable market suggestions and critiques.”

Mr. Chen added, “Moreover, gross sales progress and product affect amongst our mid- to high-end merchandise are additionally rising. Throughout the current home ‘618’ buying competition, a few of our mid- to high-end merchandise topped the e-commerce gross sales charts of their respective classes, reminiscent of our Area collection of air conditioners, Tremendous collection of water purifiers and 21Face AI large-screen fridges. In the meantime, primarily based on our one-stop IoT residence options, we’re accelerating the implementation of our premium bundled residence answer choices throughout the nation. After our offline retailers signed whole-home answer orders starting from RMB200,000 to RMB400,000 with clients in Beijing, Guangzhou, Changsha and Kunming within the first quarter, our offline retailers in Chengdu, Zunyi, Yinchuan and another cities adopted swimsuit, recording a number of high-end whole-home answer orders exceeding RMB200,000 and RMB300,000 within the second quarter. Our customers’ recognition and adoption of our premium AI merchandise and our bundled residence answer choices are a testomony to the success of our phased transformation right into a premium model and our funding in R&D for our AI merchandise.”

“Second, we continued to execute our ‘bigger retailer, higher service provider’ channel technique. Within the second quarter, we cooperated with our newly signed offline retailers and opened further Viomi 4S and 5S flagship shops in provinces together with Hunan, Anhui and Guizhou, and so forth. These flagship shops enhanced our ‘trending expertise’ branding positioning by means of unified storefront ornament and immersive situation expertise, and helped implement our one-stop IoT residence options.”

“Third, to assist the discharge of premium new merchandise and our high-end model transformation, we continued to boost our model promotions within the second quarter. Along with the launch of a lot of elevator and print advertisements, we reached extra focused younger teams by partnering with Tmall and changing into the co-sponsor of the well-known selection present ‘Design Superb Future‘ broadcasted on the Mango TV platform, exposing a rising viewers to our immersive sensible residence expertise throughout whole-home situations and bringing an clever way of life to extra younger customers,” Mr. Chen commented.

“As well as, we continued to deepen our strategic cooperation with extra channels within the second quarter to advertise the built-in and growth of the sensible residence trade. Within the first half of this 12 months, we reached partnerships with JD.com, Tmall and China Telecom. We are exploring strategic cooperation with further channels and firms to create a extra handy and sensible residing expertise and promote the event of sensible residence ecology for households.”

“We efficiently navigated the challenges brought on by the pandemic and the weak macro trade atmosphere within the first half of the 12 months, and made progress in creating new merchandise and enhancing model consciousness. As we progress by means of 2022, we are going to proceed to deal with product innovation and product portfolio optimization, devoting extra sources to bettering product competence whereas implementing extra disciplined price and expense management measures to put a strong basis for long-term wholesome progress,” Mr. Chen concluded.

Second Quarter 2022 Monetary Outcomes

REVENUE

Web revenues had been RMB924.2 million (US$138.0 million), in comparison with RMB1,658.9 million for the second quarter of 2021. Web revenues had been in keeping with the Firm’s earlier steerage. The decline was primarily as a result of (i) the entire cutoff of gross sales of Xiaomi-branded sweeper robots this 12 months, in addition to its excessive prior-year base for comparability, and (ii) the continued product portfolio changes in some classes.

–  IoT @ Dwelling portfolio. Revenues from IoT @ Dwelling portfolio decreased by 54.2% to RMB524.5 million (US$78.3 million) from RMB1,146.3 million for the second quarter of 2021. The decline was primarily as a result of full cutoff of gross sales of Xiaomi-branded sweeper robots, in addition to SKU changes for some classes.

–  Dwelling water options. Revenues from residence water options decreased by 17.4% to RMB180.9 million (US$27.0 million) from RMB218.9 million for the second quarter of 2021. The decline was primarily as a result of decreased demand of water purifiers.

–  Consumables. Revenues from consumables decreased barely by 1.9% to RMB100.3 million (US$15.0 million) from RMB102.2 million for the second quarter of 2021.

–  Small home equipment and others. Revenues from small home equipment and others decreased by 38.1% to RMB118.5 million (US$17.7 million) from RMB191.5 million for the second quarter of 2021, which was primarily as a result of product portfolio adjustment inside this class, in addition to the decreased demand of small home equipment merchandise.

GROSS PROFIT

Gross revenue was RMB204.5 million (US$30.5 million), in comparison with RMB351.8 million for the second quarter of 2021. Gross margin elevated to 22.1% from 21.2% for the second quarter of 2021, primarily pushed by the Firm’s continued efforts to shift the enterprise and product combine towards larger gross margin merchandise, and partially offset by decreases in promoting costs of some merchandise for clean-up as a result of product portfolio adjustment within the quarter.

OPERATING EXPENSES

Complete working bills decreased by 14.6% to RMB264.6 million (US$39.5 million) from RMB309.7 million for the second quarter of 2021, primarily as a result of year-over-year lower in promoting and advertising and marketing bills.

Analysis and growth bills elevated by 20.4% to RMB79.7 million (US$11.9 million) from RMB66.2 million for the second quarter of 2021, primarily as a result of enhance in analysis and growth specialists and associated salaries and bills, in addition to the elevated enter in new product growth.

Promoting and advertising and marketing bills decreased by 24.6% to RMB162.0 million (US$24.2 million) from RMB214.8 million for the second quarter of 2021, primarily as a result of lower in advertising and marketing bills, partially offset by the elevated bills on promoting actions that improve the Firm’s branding recognition.

Normal and administrative bills decreased by 20.3% to RMB22.9 million (US$3.4 million), in comparison with RMB28.8 million for the second quarter of 2021, primarily as a result of lower in estimated allowance for accounts and notes receivables acknowledged within the present interval.

LOSS FROM OPERATIONS

Loss from operations was RMB55.6 million (US$8.3 million), in comparison with earnings from operations of RMB47.2 million for the second quarter of 2021.

Non-GAAP working loss^[1] was RMB49.9 million (US$7.5 million), in comparison with non-GAAP working earnings of RMB60.6 million for the second quarter of 2021.

NET LOSS

Web loss attributable to bizarre shareholders of the Firm was RMB39.6 million (US$5.9 million), in comparison with internet earnings attributable to bizarre shareholders of the Firm of RMB46.1 million for the second quarter of 2021.

Non-GAAP internet loss attributable to bizarre shareholders of the Firm^[2] was RMB33.9 million (US$5.1 million), in comparison with non-GAAP internet earnings attributable to bizarre shareholders of the Firm of RMB59.5 million for the second quarter of 2021.

BALANCE SHEET

As of June 30, 2022, the Firm had money and money equivalents of RMB816.3 million (US$121.9 million), restricted money of RMB46.8 million (US$7.0 million), short-term deposits of RMB10.0 million (US$1.5 million) and short-term investments of RMB237.0 million (US$35.4 million), in comparison with RMB587.0 million, RMB35.8 million, nil and RMB828.9 million, respectively, as of December 31, 2021.

OUTLOOK

For the third quarter of 2022, the Firm at present expects:

– Web revenues to be between RMB740 million and RMB840 million.

The Firm estimates that the year-over-year change in revenues might be primarily as a result of uncertainty pertaining to the potential results of the COVID-19 recurrences, in addition to the potential affect of general market demand within the third quarter of 2022.

The above outlook is predicated on the present market circumstances and displays the Firm’s present and preliminary estimates of market and working circumstances and buyer demand, all of that are topic to alter.

Convention Name

The Firm’s administration will host a convention name at 8:00 a.m. Japanese Time on Monday, August 22, 2022 (8:00 p.m. Beijing/Hong Kong time on August 22, 2022) to debate monetary outcomes and reply questions from traders and analysts. Listeners might entry the decision by dialing:

A phone replay might be obtainable one hour after the decision till August 29, 2022 by dialing:

Moreover, a stay and archived webcast of the convention name might be obtainable at http://ir.viomi.com.

About Viomi Expertise

Viomi’s mission is to redefine the long run residence by way of the idea of IoT @ Dwelling.

Viomi has developed a singular IoT @ Dwelling platform consisting an ecosystem of modern IoT-enabled sensible residence merchandise, along with a set of complementary consumable merchandise and value-added companies. This platform gives a beautiful entry level into the buyer residence, enabling customers to intelligently work together with a broad portfolio of IoT merchandise in an intuitive and human-like method to make every day life extra handy, environment friendly and fulfilling, whereas permitting Viomi to develop its family person base and seize numerous further scenario-driven consumption occasions within the residence atmosphere.

For extra data, please go to: http://ir.viomi.com.

Use of Non-GAAP Measures

The Firm makes use of non-GAAP working earnings, non-GAAP internet earnings, non-GAAP internet earnings attributable to bizarre shareholders of the Firm, non-GAAP primary and diluted internet earnings per bizarre share and non-GAAP primary and diluted internet earnings per American depositary share (“ADS”), that are non-GAAP monetary measures, in evaluating its working outcomes and for monetary and operational decision-making functions. Non-GAAP working earnings is earnings from operations excluding share-based compensation bills. Non-GAAP internet earnings is internet earnings excluding share-based compensation bills. Non-GAAP internet earnings attributable to bizarre shareholders of the Firm is internet earnings attributable to bizarre shareholders excluding share-based compensation bills. Non-GAAP primary and diluted internet earnings per bizarre share is non-GAAP internet earnings attributable to bizarre shareholders divided by weighted common variety of bizarre shares used within the calculation of non-GAAP primary and diluted internet earnings per bizarre share. Non-GAAP primary and diluted internet earnings per ADS is non-GAAP internet earnings attributable to bizarre shareholders divided by weighted common variety of ADS used within the calculation of non-GAAP primary and diluted internet earnings per ADS. The non-GAAP changes do not need any tax affect as share-based compensation bills are non-deductible for earnings tax objective.

The Firm believes that non-GAAP monetary measures assist establish underlying tendencies in its enterprise by excluding the affect of share-based compensation bills, that are non-cash costs, and these measures present helpful details about the Firm’s working outcomes, improve the general understanding of the Firm’s previous efficiency and future prospects and permit for better visibility with respect to key metrics utilized by the Firm’s administration in its monetary and operational decision-making.

Non-GAAP monetary measures shouldn’t be thought of in isolation or construed as different to earnings from operations, internet earnings, or another measure of efficiency or as an indicator of the Firm’s working efficiency. Traders are inspired to assessment the historic non-GAAP monetary measures to essentially the most immediately comparable GAAP measures. Non-GAAP monetary measures offered right here is probably not similar to equally titled measures offered by different firms. Different firms might calculate equally titled measures in another way, limiting their usefulness as comparative measures to the Firm’s information. We encourage traders and others to assessment its monetary data in its entirety and never depend on a single monetary measure. Reconciliations of the Firm’s non-GAAP monetary measures to essentially the most immediately comparable GAAP measures are included on the finish of this press launch.

Alternate Price

The Firm’s enterprise is primarily performed in China and the numerous majority of revenues generated are denominated in Renminbi (“RMB”). This announcement comprises forex conversions of RMB quantities into U.S. {dollars} (“US$”) solely for the comfort of the reader. Except in any other case famous, all translations from RMB to US$ are made at a price of RMB6.6981 to US$1.00, the efficient midday shopping for price for June 30, 2022 as set forth within the H.10 statistical launch of the Federal Reserve Board. No illustration is made that the RMB quantities may have been, or might be, transformed, realized or settled into US$ at that price on for June 30, 2022, or at another price.

Secure Harbor Assertion

This announcement comprises forward-looking statements. These statements are made underneath the “secure harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. These forward-looking statements might be recognized by terminology reminiscent of “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “assured” and comparable statements. Amongst different issues, the enterprise outlook and quotations from administration on this announcement, in addition to Viomi’s strategic and operational plans, include forward-looking statements. Viomi can also make written or oral forward-looking statements in its periodic studies to the USA Securities and Alternate Fee (the “SEC”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to Fourth events. Statements that aren’t historic details, together with statements in regards to the Firm’s beliefs and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. Various elements may trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: the Firm’s progress methods; the cooperation with Xiaomi, the popularity of the Firm’s model; tendencies and competitors in world IoT-enabled sensible residence market; growth and commercialization of latest merchandise, companies and applied sciences; governmental insurance policies and related regulatory atmosphere regarding the Firm’s trade and/or facets of the enterprise operations and basic financial circumstances in China and across the globe, and assumptions underlying or associated to any of the foregoing. Additional data concerning these and different dangers is included within the Firm’s filings with the SEC. All data supplied on this press launch and within the attachments is as of the date of this press launch, and the Firm undertakes no obligation to replace any forward-looking assertion, besides as required underneath relevant legislation.

For investor and media inquiries, please contact:

In China:

Viomi Expertise Co., Ltd
Cecilia Li
E-mail: [email protected]

The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: [email protected]

In the USA:

The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

SOURCE Viomi Expertise Co., Ltd