Financial Performance - Net revenues increased from RMB 312,574 thousand in 2016 to RMB 4,647,513 thousand in 2019, representing a growth of approximately 1,387%[15] - Gross profit rose from RMB 80,030 thousand in 2016 to RMB 1,082,404 thousand in 2019, reflecting an increase of about 1,352%[15] - Operating expenses grew from RMB 65,241 thousand in 2016 to RMB 807,215 thousand in 2019, a rise of approximately 1,136%[15] - Net income attributable to the Company increased significantly from RMB 16,259 thousand in 2016 to RMB 292,170 thousand in 2019, marking an increase of about 1,795%[15] - Cash and cash equivalents at the end of 2019 were RMB 1,003,005 thousand, up from RMB 156,930 thousand in 2016, indicating a growth of approximately 539%[19] - Total current assets increased from RMB 276,166 thousand in 2016 to RMB 2,907,615 thousand in 2019, representing a growth of about 950%[18] - Total liabilities rose from RMB 136,886 thousand in 2016 to RMB 1,648,026 thousand in 2019, an increase of approximately 1,103%[18] - The Company reported net cash provided by operating activities of RMB 245,484 thousand in 2019, up from RMB 15,499 thousand in 2016, reflecting a growth of about 1,487%[19] Market and Competition - The Company operates in a highly competitive market, facing challenges from both traditional home appliance companies and other smart home solution providers[22] - The IoT-enabled smart home products market in China has experienced rapid growth, but uncertainties in the macro-economy may affect future growth rates[40] - Sales to Xiaomi accounted for 84.7%, 51.2%, and 45.4% of net revenues in 2017, 2018, and 2019, respectively, highlighting the dependency on a single customer[63] Operational Challenges - The company has limited operating history since its establishment in May 2014, making it difficult to evaluate future growth prospects[27] - The company aims to expand its product offerings and may face challenges in accurately anticipating user demand, potentially leading to inventory issues[38] - User engagement is critical to the company's business model, and any decline could adversely impact operating results[41] - The company relies on contract manufacturers for production, and any operational difficulties could materially affect business results[47] - Recent increases in market prices for raw materials, particularly for refrigerators, may negatively impact financial results if costs cannot be recovered through price increases[46] - The company is susceptible to supply shortages and interruptions, which could disrupt the supply chain and adversely affect operations[44] - Inventory management challenges may arise from inaccurate demand forecasting, leading to excess inventory or product shortages[60] - The company relies on third-party logistics and after-sales service providers, which may affect customer experience if these services are disrupted[67] Strategic Initiatives - The company has implemented an AI + IoT + 5G strategy to prepare for technological advancements, including the introduction of 5G customer premise equipment products in 2019[43] - The development of Viomi IoT Technology Park is expected to be completed in two phases over a ten-year period, enhancing the company's manufacturing and R&D capabilities[51] - The company emphasizes the importance of expanding and maintaining its ecosystem partners to drive net revenue growth and enhance product attractiveness[73] Regulatory and Compliance Risks - The company operates through variable interest entities (VIEs) in China, which may face regulatory scrutiny and potential penalties from the PRC government[108] - The imposition of penalties by the PRC government could materially and adversely affect the company's ability to conduct its business and consolidate financial results[110] - The PRC legal system presents uncertainties that could limit the company's ability to enforce contractual arrangements and adversely affect business operations[125] - The evolving regulatory environment in China poses uncertainties regarding the legality of foreign investments in internet-related businesses[133] - Compliance with SAFE Circular 37 mandates PRC residents to register offshore investments, affecting capital injection and profit distribution capabilities[145] Financial Reporting and Governance - The company identified three material weaknesses in its internal control over financial reporting, which could lead to inaccuracies in financial statements[96] - The lack of sufficient resources regarding financial reporting and accounting personnel with understanding of U.S. GAAP has been highlighted as a significant issue[97] - The company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements, including exemptions from certain auditor attestation requirements[177] - The dual-class share structure may prevent the inclusion of the company's ADSs in major indices, potentially leading to a less active trading market[176] Economic Factors - Economic downturns may adversely affect consumer discretionary spending, impacting demand for the company's products and services[75] - The Chinese economy experienced a 6.8% drop in GDP in Q1 2020 compared to the same period in 2019, indicating significant economic challenges[130] - Rising labor costs in China and increasing raw material prices may adversely affect the company's profitability[93] Shareholder Rights and Dividends - The board of directors has complete discretion over dividend distribution, which may depend on future results, cash flow, and capital requirements[185] - Holders of ADSs may not receive dividends or distributions if it is illegal or impractical to make them available[187] - The deposit agreement limits the rights of ADS holders to pursue claims, including waiving the right to a jury trial[195] Technology and Innovation - The company has joint ownership of technology properties with Xiaomi, which may lead to competition if Xiaomi develops similar products[84] - The company has obtained exclusive rights to use 11 patents from its founder, which are crucial for its operations[85] Human Resources - The company's ability to attract and retain highly skilled personnel is critical for its future success, with potential disruptions from the loss of key personnel[103]

Viomi Technology Co., Ltd (NASDAQ:VIOT) Q4 2019 Earnings Conference Call March 26, 2020 8:00 AM ET Company Participants Cecilia Li - The Piacente Group Xiaoping Chen - Founder, Chairman of the Board of Directors and Chief Executive Officer Shun Jiang - Chief Financial Officer Conference Call Participants Lillian Lou - Morgan Stanley Xudong Chen - CICC Robert Cowell - 86Research Limited Vincent Yu - Needham & Company Operator Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Co. Lim ...

Financial Data and Key Metrics Changes - Revenues increased by 89.3% to RMB1.07 billion for Q3 2019 compared to RMB565.3 million for Q3 2018 [8][17] - Non-GAAP net income rose by 116.4% to approximately RMB83.9 million for Q3 2019, up from RMB38.7 million for Q3 2018 [8][22] - Gross profit increased by 40.2% to RMB238.1 million, with a gross margin of 22.3%, down from 30% in Q3 2018 [20] - Net income was RMB73.3 million, compared to a net loss of RMB59.8 million in Q3 2018 [21] Business Line Data and Key Metrics Changes - Revenues from IoT-enabled smart home products increased by 71.9% to RMB829.2 million [17] - Revenues from smart kitchen products grew by 74.3% to RMB342.1 million [18] - Revenues from other smart products surged by 267.8% to RMB272.7 million [19] - Revenues from consumable products increased by 333.3% to RMB53.7 million [19] - Revenues from value-added businesses rose by 164.8% to RMB186.5 million [19] Market Data and Key Metrics Changes - The number of household users grew to over 2.6 million, up from approximately 2.3 million in the previous quarter [16] - The percentage of household users owning at least two IoT products increased to 17.1% from 16.1% in the prior quarter [16] Company Strategy and Development Direction - The company continues to introduce additional product lines and SKUs to strengthen its product portfolio, including new Viomi-branded and Xiaomi-branded products [9] - A new premium AI-focused brand, coKiing, was launched to target the mid to high-end market [9] - The company aims to establish a leading position in the 5G era with the introduction of its own 5G customer premise equipment [10] - Strategic cooperation with FAW Bestune for AIoT connectivity was established to enhance the smart home ecosystem [10] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macro and industry-wide uncertainty but emphasized robust growth and strong consumer demand for Viomi products [8] - The company expects net revenues for Q4 2019 to be between RMB1.4 billion and RMB1.44 billion, representing year-over-year growth of approximately 46.5% to 60.7% [23] - For the full year of 2019, net revenues are expected to be between RMB4.31 billion and RMB4.35 billion, indicating growth of approximately 68.1% to 69.7% [23] Other Important Information - The company reported a significant decrease in total operating expenses by 26.5% to RMB169.2 million, primarily due to a reduction in share-based compensation expenses [20] - Cash and cash equivalents stood at RMB727.1 million as of September 30, 2019 [22] Q&A Session Summary Question: What is the target for new store openings by year-end? - The company expects to have around 1,600 to 1,700 stores by the end of the year, with a focus on optimizing store performance rather than aggressive expansion [24][26] Question: What is the guidance for gross margin and operating margin for Q4 and 2020? - The company anticipates a similar margin profile for Q4 as in Q3, with net margins around 7.5% to 8% [28][29] Question: What is the breakdown of sales guidance for Q4 by product? - Water purifiers are expected to grow around 10% year-on-year, while other IoT smart home categories may see growth between 50% to 100% [30] Question: Did the company see recovery in the home appliances industry in the second half? - The overall home appliances market remains weak, but the company has delivered robust growth due to its unique positioning [32] Question: What is Viomi's role in Xiaomi's long-term strategy? - The company has expanded its relationship with Xiaomi, broadening product cooperation beyond water purifiers to include large appliances [33] Question: What is the rationale for launching the coKiing brand now? - The coKiing brand aims to establish a premium product line to complement Viomi's existing offerings and target higher-end consumers [37] Question: What are the core competitive advantages of the company? - The company positions itself as a high-tech IoT brand for middle-class consumers, leveraging R&D and innovative product offerings [39]

Financial Performance (Q3 2019) - Net revenues reached RMB 1.07 billion, representing a year-over-year growth of 89.2%[4] - Non-GAAP net income was RMB 83.9 million, a year-over-year increase of 116.4%[4] - Non-GAAP net income margin was 7.8%[4] Revenue Diversification - Revenue breakdown by channel shows a shift, with Viomi and other channels contributing 58.0% of revenue, while Xiaomi channel contributed 42.0%[20] - For the first nine months of 2019, revenue reached RMB 2.9059 billion[19, 21] User Growth - Continued increase in household users and product penetration[22] Future Outlook - Q4 2019 net revenues are projected to be between RMB 1.40 billion and RMB 1.44 billion, indicating a year-over-year growth of approximately 46.5% to 50.7%[26] - Full year 2019 net revenues are expected to be between RMB 4.31 billion and RMB 4.35 billion[26]

Viomi Technology Co., Ltd (NASDAQ:VIOT) Q2 2019 Earnings Conference Call August 21, 2019 8:00 AM ET Company Participants Cecilia Li - The Piacente Group, Investor Relations Partner Xiaoping Chen - Founder, Chairman of the Board of Directors & Chief Executive Officer Shun Jiang - Chief Financial Officer Conference Call Participants Lillian Lou - Morgan Stanley Xudong Chen - CICC Vincent Yu - Needham Operator Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Company Limited’s Earning ...

Viomi Technology Co., Ltd (NASDAQ:VIOT) Q1 2019 Earnings Conference Call May 23, 2019 8:00 AM ET Company Participants Cecilia Li - The Piacente Group Xiaoping Chen - Founder, Chairman of Board of Directors & Chief Executive Officer Shun Jiang - Chief Financial Officer Conference Call Participants Xudong Chen - CICC Lillian Lou - Morgan Stanley Joy Wei - 86Research Operator Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Company Limited's Earnings Conference Call for the First Qua ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) ...