Viomi Technology Co., Ltd Enters Definitive Agreements to Divest Certain IoT@Home Businesses in an Effort to Strategically Focus on Home Water Solution Businesses

Core Viewpoint - Viomi Technology Co., Ltd has announced a strategic divestment of its IoT@Home portfolio products to focus on its home water solution business, with a total consideration of RMB65 million in cash [1][2][3][4]. Group 1: Transaction Details - The divestment involves the sale of certain IoT@Home portfolio products, excluding range hoods, gas stoves, and water heaters, to Mr. Xiaoping Chen, the Company's Founder and CEO [2]. - The transaction will be executed through the termination of existing variable interest entity (VIE) contractual arrangements, allowing Mr. Chen to fully control Foshan Viomi and its subsidiaries [2][3]. - The purchase price of RMB65 million will be paid through a registered capital increase to Guangzhou Interconnect at closing [3]. Group 2: Strategic Focus - Following the completion of the transaction, the Company will concentrate on its home water solution business, leveraging AI technology to enhance drinking water solutions for households [4]. - The divestment aligns with the Company's mission to redefine the future home through innovative IoT-enabled products and services [5]. Group 3: Governance and Evaluation - A special committee of independent directors led the evaluation and negotiation of the transaction, with Kroll LLC serving as an independent financial advisor [3]. - The Board unanimously approved the transaction, deeming it in the Company's best interest and fair from a financial perspective [3].