Viomi(US:VIOT) Newsfilterยท2024-07-31 12:00Core Business Focus - Viomi Technology Co., Ltd has announced a strategic divestiture of its IoT@Home portfolio to concentrate on the home water solutions market, selling the portfolio for RMB65 million [1] - The divestment involves terminating existing variable interest entity (VIE) arrangements, allowing the founder and CEO, Mr. Xiaoping Chen, to gain full control over certain subsidiaries [1] - This reorganization is part of Viomi's "Focus" strategy aimed at reallocating resources to enhance operational efficiency and profitability [2] Financial and Operational Restructuring - The Board's special committee, with independent directors, evaluated the transaction and deemed it financially fair, with the deal expected to close by the end of August 2024 [1] - The divestment of loss-making businesses is anticipated to streamline operations and improve financial health, allowing Viomi to focus on its core home water solutions [1][2] - Viomi's restructuring is designed to optimize its operating structure and enhance efficiency in delivering water solutions [1][2] Market Opportunities - The global home water solutions market was valued at USD 12.12 billion in 2022 and is projected to grow to USD 26.73 billion by 2030, with a CAGR of 10.5% [1] - Increasing consumer awareness of water quality, urbanization, and smart home technology adoption are driving this market growth [1] - Viomi, as a pure-play Chinese water purification company, is well-positioned to capitalize on this substantial market opportunity [1] Technological Advancements - Viomi is committed to continuous R&D, showcasing innovations such as AI integration in water purifiers, which enhances user experience through real-time monitoring and intelligent features [2] - The company has developed a Water Purifier Gigafactory with an annual production capacity of 5 million units and 30 million filter cartridges, ensuring high-quality production standards [2] Future Prospects - Viomi aims to maximize the strengths of its gigafactory and build a robust industrial chain system to enhance brand impact and achieve scale efficiency [2] - The strategic focus on home water solutions is expected to improve the company's competitiveness and provide better drinking water solutions for global users [2]