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

GUANGZHOU, China, Nov. 23, 2022 /PRNewswire/ — Viomi Expertise Co., Ltd (“Viomi” or the “Firm”) (NASDAQ: VIOT), a number one IoT @ House know-how firm in China, right now introduced its unaudited monetary outcomes for the third quarter ended September 30, 2022.

Third Quarter 2022 Monetary and Working Highlights

• Internet revenues reached RMB685.8 million (US$96.4 million), in comparison with RMB1,056.5 million for the third quarter of 2021.
• Gross margin was 19.8%.
• Variety of cumulative family customers reached roughly 7.4 million, in comparison with roughly 7.2 million as of the tip of the second quarter of 2022 and roughly 6.3 million as of the tip of the third quarter of 2021.
• Share of family customers with at the least two linked merchandise reached 22.3%, in comparison with 22.0% as of the tip of the second quarter of 2022 and 21.1% as of the tip of the third quarter of 2021.

Mr. Xiaoping Chen, Founder and CEO of Viomi, commented, “Within the third quarter of 2022, the resurgence of COVID-19 pandemic in China led to elevated uncertainties in numerous means within the macro atmosphere. Consequently, the general market demand remained weak, and our whole income got here in under our expectations. Nevertheless, regardless of exterior challenges, we have now made good progress in product innovation, model promotion and channel growth over the previous few months. Underpinned by our efficient, long-term model and product improvement technique, we continued to strengthen our ‘trending know-how’ model positioning.”

“By way of product innovation and technological improvement, we held our inaugural annual Scientific and Technological Assembly in August, the place we generously rewarded our technological innovation groups and people in an effort to stimulate ongoing R&D innovation. Additionally, we hosted ‘AI: Useful 2.0,’ our autumn on-line software program launch occasion on October twenty fifth, which centered on our software program upgrades and product iteration throughout 4 dimensions, together with well being care, vitality conservation and environmental safety, energetic intelligence, and pure interplay, additional bettering our one-stop IoT dwelling options from the software program facet. On the similar time, on the {hardware} facet, we launched a sequence of latest good dwelling home equipment, together with Alpha, our AI vary hood with AI good eye suction; Grasp Professional, our 1200G Quanxian AI water air purifier with built-in warmth purification; Alpha 3 Professional, our AI sweeping robotic outfitted with an all-purpose base station; and Tremendous 2 Max, our AI fuel water heater with clever temperature management. Within the class of good dwelling merchandise, we launched Tremendous 2 AI good door locks with an ultra-wide-angle digital peephole. These new merchandise achieved good outcomes and have acquired broad shopper recognition of their pre-sale and crowdfunding levels. By deeply integrating our software program and {hardware}, we offer richer dwelling use eventualities and extra clever consumer experiences, empowering extra customers to benefit from the comfort and ease of IoT dwelling options.”

“On the branding facet, along with our ongoing elevator and print advert campaigns, we collectively launched a video interview program with Langchao Studio and Gongmao House Home equipment. On this program, we dove deeper into the subject of ‘how the IoT dwelling resolution is reshaping the long run dwelling of Chinese language individuals’ with Zhang Quanling, senior media specialist and investor, and Li Feng, Chairman of Gongmao House Home equipment. Within the interview, ‘Asking concerning the Complete-House Intelligence,’ we responded to senior media specialist, Yi Lijing’s questions on good dwelling improvement with in-depth data on our one-stop IoT dwelling resolution and our 4 capabilities, 4 companies method to the good dwelling. With good dwelling home equipment and good dwelling merchandise overlaying all eventualities, we consider extra individuals would now select to stay in good houses. Given the continual growth of the shopper base for whole-home intelligence, the trade is approaching an inflection level, and Viomi has taken the lead by finishing the {hardware} and software program integration and improve essential to create a very good dwelling. We consider our communications with customers and our explorations of the way forward for smartification will encourage extra customers to grow to be good dwelling customers.”

“Moreover, we continued to execute our ‘bigger retailer, higher service provider’ channel technique within the third quarter and opened extra Viomi 4S flagship shops encompassing over 200 to 400 sq. meters in provinces together with Hebei, Anhui, Hubei, and Fujian, amongst others. In the meantime, the gross sales quantity of our bundled dwelling options elevated steadily. With numerous resolution choices and costs to fulfill customers’ demand, our offline retailers signed whole-home resolution orders starting from tens of 1000’s to a whole bunch of 1000’s of RMB with prospects in Hunan, Guangdong, Ningxia and different areas throughout this quarter. As to our abroad enterprise, in September, we showcased quite a few our new merchandise at IFA 2022 in Berlin, marking our first look at one of many world’s most vital know-how marketplaces for the buyer and digital industries. We had been happy to obtain optimistic suggestions from the European market, serving to us to additional enrich our abroad product class choices.”

Mr. Chen concluded, “The unsure financial atmosphere continued to weigh on our gross sales through the third quarter. Going ahead, we are going to think about the next three elements of operation optimization: (i) constantly refine our operational construction and implement disciplined price management measures; (ii) increase channels and add premium offline retailers whereas rolling out extra product classes in abroad markets; (iii) adhere to our stable improvement technique with satisfactory funding reserves to assist our operations. Now we have already considerably streamlined the variety of SKUs and our operational optimization efforts have begun to bear fruit. Transferring ahead, we are going to proceed to optimize our product portfolio, enhance operation effectivity and improve model power to deliver long-term worth to our customers and shareholders.”

Third Quarter 2022 Monetary Outcomes

REVENUE

Internet revenues had been RMB685.8 million (US$96.4 million), in comparison with RMB1,056.5 million for the third quarter of 2021. Internet revenues had been under the Firm’s earlier steering. The decline was primarily as a result of ongoing product portfolio changes in some classes, in addition to general weakened shopper spending.

– IoT @ House portfolio. Revenues from IoT @ House portfolio decreased by 41.6% to RMB376.0 million (US$52.9 million) from RMB643.5 million for the third quarter of 2021. The decline was primarily as a result of SKU changes for some classes, in addition to the entire cutoff of gross sales of Xiaomi-branded sweeper robots.

– House water options. Revenues from dwelling water options decreased by 23.6% to RMB119.9 million (US$16.9 million) from RMB157.0 million for the third quarter of 2021. The decline was primarily as a result of decreased demand for water purifiers.

– Consumables. Revenues from consumables decreased by 11.8% to RMB70.2 million (US$9.9 million) from RMB79.6 million for the third quarter of 2021, which was in step with the decreased demand for water purifiers.

– Small home equipment and others. Revenues from small home equipment and others decreased by 32.2% to RMB119.7 million (US$16.8 million) from RMB176.5 million for the third quarter of 2021, primarily as a result of product portfolio adjustment inside this class.

GROSS PROFIT

Gross revenue was RMB135.9 million (US$19.1 million), in comparison with RMB239.7 million for the third quarter of 2021. Gross margin was 19.8%, in comparison with 22.7% for the third quarter of 2021, the decline was primarily as a result of momentary improve within the proportion of income from merchandise classes with comparatively low gross margins.

OPERATING EXPENSES

Whole working bills decreased by 16.5% to RMB242.5 million (US$34.1 million) from RMB290.3 million for the third quarter of 2021, primarily as a result of year-over-year lower in promoting and advertising and marketing bills.

Analysis and improvement bills decreased by 19.1% to RMB66.5 million (US$9.4 million) from RMB82.2 million for the third quarter of 2021, primarily as a result of diminished bills in product improvement, in addition to the lower in analysis and improvement specialists and associated salaries and bills.

Promoting and advertising and marketing bills decreased by 22.0% to RMB143.1 million (US$20.1 million) from RMB183.4 million for the third quarter of 2021, primarily as a result of lower in gross sales associated bills and personnel prices.

Normal and administrative bills elevated by 33.0% to RMB32.9 million (US$4.6 million), in comparison with RMB24.7 million for the third quarter of 2021, primarily as a result of improve within the estimated allowance for accounts and notes receivables acknowledged within the present interval.

LOSS FROM OPERATIONS

Loss from operations was RMB97.2 million (US$13.7 million), in comparison with loss from operations of RMB38.7 million for the third quarter of 2021.

Non-GAAP working loss^[1] was RMB96.4 million (US$13.6 million), in comparison with non-GAAP working lack of RMB31.6 million for the third quarter of 2021.

NET LOSS

Internet loss attributable to unusual shareholders of the Firm was RMB79.6 million (US$11.2 million), in comparison with internet loss attributable to unusual shareholders of the Firm of RMB29.3 million for the third quarter of 2021.

Non-GAAP internet loss attributable to unusual shareholders of the Firm^[2] was RMB78.7 million (US$11.1 million), in comparison with non-GAAP internet loss attributable to unusual shareholders of the Firm of RMB22.2 million for the third quarter of 2021.

BALANCE SHEET

As of September 30, 2022, the Firm had money and money equivalents of RMB760.1 million (US$106.9 million), restricted money of RMB65.0 million (US$9.1 million), short-term deposits of RMB83.7 million (US$11.8 million) and short-term investments of RMB259.5 million (US$36.5 million), in comparison with RMB587.0 million, RMB35.8 million, nil and RMB828.9 million, respectively, as of December 31, 2021.

Convention Name

The Firm’s administration will host a convention name at 7:30 a.m. Japanese Time on Wednesday, November 23, 2022 (8:30 p.m. Beijing/Hong Kong time on November 23, 2022) to debate monetary outcomes and reply questions from traders and analysts. Listeners could entry the decision by dialing:

A phone replay might be out there one hour after the decision till November 30, 2022 by dialing:

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

About Viomi Expertise

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

Viomi has developed a singular IoT @ House platform consisting of an ecosystem of progressive IoT-enabled good dwelling merchandise, along with a set of complementary consumable merchandise and value-added companies. This platform gives a beautiful entry level into the buyer dwelling, 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 pleasing, whereas permitting Viomi to develop its family consumer base and seize numerous extra scenario-driven consumption occasions within the dwelling atmosphere.

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

Use of Non-GAAP Measures

The Firm makes use of non-GAAP working revenue, non-GAAP internet revenue, non-GAAP internet revenue attributable to unusual shareholders of the Firm, non-GAAP primary and diluted internet revenue per unusual share and non-GAAP primary and diluted internet revenue 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 revenue is revenue from operations excluding share-based compensation bills. Non-GAAP internet revenue is internet revenue excluding share-based compensation bills. Non-GAAP internet revenue attributable to unusual shareholders of the Firm is internet revenue attributable to unusual shareholders excluding share-based compensation bills. Non-GAAP primary and diluted internet revenue per unusual share is non-GAAP internet revenue attributable to unusual shareholders divided by weighted common variety of unusual shares used within the calculation of non-GAAP primary and diluted internet revenue per unusual share. Non-GAAP primary and diluted internet revenue per ADS is non-GAAP internet revenue attributable to unusual shareholders divided by weighted common variety of ADS used within the calculation of non-GAAP primary and diluted internet revenue per ADS. The non-GAAP changes would not have any tax affect as share-based compensation bills are non-deductible for revenue tax function.

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 expenses, 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 higher 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-about in isolation or construed as different to revenue from operations, internet revenue, or every other 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 instantly comparable GAAP measures. Non-GAAP monetary measures introduced right here is probably not akin to equally titled measures introduced by different corporations. Different corporations could calculate equally titled measures otherwise, limiting their usefulness as comparative measures to the Firm’s knowledge. 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 instantly comparable GAAP measures are included on the finish of this press launch.

Alternate Charge

The Firm’s enterprise is primarily performed in China and the numerous majority of revenues generated are denominated in Renminbi (“RMB”). This announcement accommodates foreign money conversions of RMB quantities into U.S. {dollars} (“US$”) solely for the comfort of the reader. Until in any other case famous, all translations from RMB to US$ are made at a fee of RMB7.1135 to US$1.00, the efficient midday shopping for fee for September 30, 2022 as set forth within the H.10 statistical launch of the Federal Reserve Board. No illustration is made that the RMB quantities may have been, or could possibly be, transformed, realized or settled into US$ at that fee on for September 30, 2022, or at every other fee.

Secure Harbor Assertion

This announcement accommodates forward-looking statements. These statements are made beneath the “secure harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. These forward-looking statements may be recognized by terminology akin to “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 america 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 concerning the Firm’s beliefs and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. Various components 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 development methods; the cooperation with Xiaomi, the popularity of the Firm’s model; tendencies and competitors in international IoT-enabled good dwelling market; improvement and commercialization of latest merchandise, companies and applied sciences; governmental insurance policies and related regulatory atmosphere regarding the Firm’s trade and/or elements of the enterprise operations and common financial circumstances in China and across the globe, and assumptions underlying or associated to any of the foregoing. Additional data relating to 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 beneath relevant legislation.

For investor and media inquiries, please contact:

In China:

Viomi Expertise Co., Ltd
Claire Ji
E-mail: [email protected]

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

In america:

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

SOURCE Viomi Expertise Co., Ltd