Viomi Issued 2024H1 Unaudited Financial Results: Focus on AI Water, Return to Profit
GUANGDONG, CHINA - Media OutReach Newswire - 31 August 2024 - On August 26, 2024, Viomi Technology Co., Ltd (NASDAQ: VIOT) issued its first half of 2024 unaudited financial results. Based on the financial report, the net revenues were US$143.1 million, net income attributable to ordinary shareholders of the Company was US$0.8 million.
According to the management's preliminary estimates, excluding the divested businesses, the estimated revenues from the remained businesses, mainly home water solution businesses and others, were more than US$110 million, with an estimated income from operations of more than US$7 million for the first half of 2024. In the meantime, the Company issued the full year guidance with the estimated revenues from the core home water businesses and others to be between US$240 million to US$260 million, and the income from operations between US$15 million to US$18 million.
Focus on AI Water, Returns to Profit
On July 19, 2024, the Company announced a major business reorganization, and will mainly focus on its core strengths in the home water solutions to elevate the Company's overall operational trajectory. The reorganization is expected to drive healthy and sustainable long-term growth for the Company.
According to Mr. Xiaoping Chen, Founder and CEO of Viomi, the Company implemented rigorous 'Focus' strategy, prioritizing high-quality development and consistently enhancing the operating performance. "Specifically, we concentrated on our advantageous categories, boosting our core home water solution products' revenue while further optimizing our product structure. As a result, our overall gross margin continued to improve to 24.8% for the first half of 2024 from 22.0% for the same period in 2023. Rigorous cost control measures led to a year-over-year decline in operating expenses by 19.2%, contributing to a turnaround in net profit with a net income of RMB5.6 million and a non-GAAP net income of RMB16.1 million. Additionally, we maintained a strong cash position, with free cash assets totaling RMB914.3 million." commented by Mr. Chen.
AI Technology and Product Innovation，Growth Engine
Following the major business reorganization, Viomi will embrace a new mission: 'AI for Better Water.' dedicated to utilizing AI technology to provide better home water solutions for households worldwide. Leveraging their extensive expertise in AI technology application, intelligent hardware and software development, Viomi has strived to redefine home water solutions and developed a unique 'Equipment + Consumables' business model. Viomi use AI technology to holistically enhance the user experience, providing remote, real-time monitoring of water quality and usage as well as timely filter replacement reminders, one-click reordering, and DIY replacement options, leading to a higher filter replacement rate. The intelligent waterway self-cleaning technology significantly extends filter lifespan and reduces the cost of water purification, making smart water purification products a reliable, hassle-free and affordable essential for a healthy lifestyle.
Regarding product innovation, as an industry-leading technology company, Viomi has consistently driven technological breakthroughs over the past decade. The Company developed tankless large-flux water purifiers that provide fresh drinking water 24/7. By upgrading the water flux up to 2000G, expanded purified water usage scenarios from drinking to cooking, washing vegetables, and more. At its Spring Water Purifier New Product Launch in March 2024, Viomi unveiled the Viomi Kunlun Mineral AI Water Purifier. Its innovative mineralizing filter technology enables the sustained release of beneficial minerals, making the composition of these minerals in the water almost identical to that of natural mineral water, allowing users to enjoy fresh mineral water at home. Viomi offers a wide range of products covering various home scenarios, from single-function filtration to integrated functions featuring instant heating, cooling, and ice-making capabilities. Spanning kitchen, living room and whole-house applications, Viomi's products comprehensively address the increasing global demand for cleaner, fresher and healthier drinking water.
Global water, Global Leader
In terms of product manufacturing and technology development, Viomi operates a world-leading "Water Purifier Gigafactory," boasting an annual production capacity of 5 million water purifiers and 30 million filters. Its highly integrated industrial chain, highly automated production lines, high-standard clean production workshops, and fully traceable quality control system facilitate continuous breakthroughs in water purification, achieving optimal scale efficiency and meeting diverse global market demands. Viomi has established one of the industry's most comprehensive R&D systems, mastering advanced filtration technology and the materials manufacturing process, and layout omni-channel marketing. As a result, the Company have amassed over 1,600 water purification patents and attracted numerous global talents in management, marketing, product development and quality control.
Looking forward, "Global Water" will become the Company's vision. As a specialized professional water purification technology company, Viomi aims to deliver fresh and healthy water worldwide. By fully leverage the Water Purifier Gigafactory's competitive advantages, actively expand in key overseas markets to promote Viomi's global strategy, enabling families abroad to enjoy fresh and healthy water through Viomi home water solution products.
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