Viomi Technology Co., Ltd Reports Second Half and Full Year 2024 Unaudited Financial Results

Core Viewpoint - Viomi Technology Co., Ltd has successfully completed a strategic reorganization, focusing on its core home water solutions, resulting in significant revenue growth and operational efficiency improvements in 2024 [4][5][19]. Financial Highlights - For the second half of 2024, net revenues reached RMB1,282.4 million (US$175.7 million), a 42.8$290.3 million), representing a 29.3% increase from RMB1,638.7 million in 2023 [19][24]. - The company reported a net income of RMB62.3 million (US$8.5 million) for the full year, compared to a net loss of RMB89.3 million in 2023 [5][24]. Revenue Streams - Revenues from home water systems increased by 39.0$205.3 million) for the full year [22]. - Consumables revenue decreased by 14.5% to RMB277.7 million (US$38.0 million) due to reduced sales of water purifier filters [22]. - Kitchen appliances and others saw a revenue increase of 45.2$47.0 million) [22]. Operational Efficiency - The company achieved a gross profit of RMB548.7 million (US$75.2 million) for the full year, with a gross margin of 25.9$58.2 million), a slight increase of 1.0% from RMB420.8 million in 2023 [21]. Strategic Initiatives - Viomi is focusing on four key strategic initiatives for 2025: enhancing domestic market presence, expanding internationally, fortifying the product portfolio, and deepening collaborations with strategic partners [6][29]. - The company aims to leverage AI technology for continuous product innovation in the home water purification market, which is expected to grow due to increasing public awareness of healthy drinking water [4][6]. Market Position - Viomi leads the healthy mineral water trend in the domestic market, with successful product launches such as the Viomi Kunlun Mineral AI Water Purifier [4]. - In North America, the Vortex series of under-the-sink RO water purifiers has received positive feedback, with over 80% of users reporting a smooth installation process [4]. Manufacturing and Innovation - The company's "Water Purifier Gigafactory" supports its manufacturing and technology development capabilities, featuring a fully integrated industrial chain and automated production lines [6][29]. - Viomi has filed nearly 1,800 global patent applications, significantly outpacing industry averages, indicating a strong commitment to innovation [6].