Viomi Technology Co., Ltd Reports First Half 2025 Unaudited Financial Results

Core Viewpoint - Viomi Technology Co., Ltd reported strong financial performance for the first half of 2025, with significant revenue growth driven by its focus on home water solutions and strategic reorganization [4][5]. Financial Highlights - Total net revenues reached RMB1.48 billion (US$206.3 million), representing a year-over-year increase of 76.6% from RMB836.6 million in the same period of 2024 [5][7]. - Net income attributable to ordinary shareholders was RMB120.4 million (US$16.8 million), an increase of 64.7% from RMB73.1 million for the same period of 2024 [5][14]. - Gross profit was RMB391.2 million (US$54.6 million), with a gross margin of 26.5%, down from 31.0% in the same period of 2024, attributed to a change in product mix [8]. Business Segments - Revenues from home water systems increased by 84.8% year over year to RMB1,058.3 million (US$147.8 million), driven by rising demand for these products [11]. - Revenues from consumables decreased by 12.6% to RMB123.2 million (US$17.2 million), primarily due to longer filter lifespans reducing replacement frequency [11]. - Revenues from kitchen appliances and others surged by 140.9% to RMB296.1 million (US$41.3 million), mainly due to increased sales to Xiaomi [11]. Strategic Initiatives - The company launched innovative products such as the MASTER M1 smart under-sink water purifier and the Kunlun 4 Pro AI alkaline mineral water purifier, enhancing its product portfolio [4][6]. - Viomi is focusing on global market expansion, product innovation, and brand enhancement to drive growth in the home water solutions sector [4][6]. - The company has filed nearly 1,850 patents worldwide, establishing technological barriers in areas like AI water quality algorithms and energy-efficient purification [6]. Operational Efficiency - Total operating expenses increased by 38.4% to RMB281.4 million (US$39.3 million), driven by higher marketing and employee compensation costs [9]. - Research and development expenses rose by 18.8% to RMB89.3 million (US$12.5 million), reflecting the company's commitment to innovation [9]. Balance Sheet Overview - As of June 30, 2025, the company had cash and cash equivalents of RMB709.2 million (US$99.0 million) and total assets of RMB2.94 billion (US$410.6 million) [16][27].