• Full-Year Net Revenue: RMB2.1 billion, exceeding previous guidance.
• Income from Operations: RMB156.3 million.
• Net Income: RMB62.3 million, reversing losses from the past two years.
• Second Half Net Revenue: RMB1.2824 billion, a 42.8% increase from the same period in 2023.
• Home Water Systems Revenue (Second Half): RMB925.7 million, a 58.2% increase year-over-year.
• Consumables Revenue (Second Half): RMB136.7 million, a 24.6% decrease year-over-year.
• Kitchen Appliances and Others Revenue (Second Half): RMB220 million, a 67.2% increase year-over-year.
• Gross Profit (Second Half): RMB289.5 million.
• Gross Margin (Second Half): 22.6%, down from 32.8% in the same period of 2023.
• Total Operating Expenses (Second Half): RMB221.5 million, a 6.1% increase year-over-year.
• Net Income Attributable to Ordinary Shareholders (Second Half): RMB57.4 million.
• Cash and Cash Equivalents (End of 2024): RMB1.262 billion.
• Full-Year Gross Profit: RMB548.7 million.
• Full-Year Gross Margin: 25.9%, down from 31.9% in 2023.
• Full-Year Net Income Attributable to Ordinary Shareholders: RMB33.4 million.

• Warning! GuruFocus has detected 3 Warning Signs with VIOT.

Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Viomi Technology Co Ltd (NASDAQ:VIOT) achieved a full-year net revenue of RMB2.1 billion, exceeding previous guidance.
• Revenues from home water solutions grew by 39% year over year, significantly driving overall business expansion.
• The company reversed previous losses, achieving a net income of RMB62.3 million.
• Viomi Technology Co Ltd (NASDAQ:VIOT) successfully launched new products, such as the Vortex series, which received positive feedback and strong consumer demand.
• The company established strategic partnerships, including a renewed agreement with Xiaomi and a new partnership with a leading Malaysian home appliance retailer.

Negative Points

• Gross margin decreased to 22.6% from 32.8% in the same period of 2023, primarily due to a higher revenue contribution from low-gross margin products.
• Revenues from consumables decreased by 24.6% due to decreased sales of water purifier files sold to Xiaomi.
• Total operating expenses increased by 6.1% due to higher personnel expenses during the strategic transition period.
• General and administrative expenses rose by 34.8%, primarily due to higher management personnel expenses.
• The company faced challenges in maintaining gross margins due to shifts in product mix and strategic reorganization.

Q & A Highlights

Q: After the divestment of the IoT business in 2024, what adjustments have been made in business operation and organizational management, and what are the results so far? A: Sam Yang, Head of Capital and Investment Department, explained that the strategic reorganization began in the second half of 2023, elevating the water business to a strategic unit. By the second half of 2024, Viomi completed the reorganization by divesting certain IoT businesses and focusing on water purification. The introduction of the Integrated Product Marketing System (IPMS) has strengthened brand awareness and market share. The full-year net revenue reached RMB2.1 billion, with income from operations totaling RMB155 million, exceeding previous guidance.

Q: Could you provide a breakdown of the home water solution in 2024, and are there any new product plans for 2025? A: Sam Yang detailed that home water systems, including smart water purification products, accounted for 71% of total revenue. Consumables contributed 30%, and kitchen appliances and others made up 60%. In 2025, Viomi plans to enhance its product lineup, focusing on healthy drinking water and expanding internationally with features like ice making and instant cooling.

Q: How comfortable is Viomi with its expansion strategy in the US and Southeast Asia, and have any partners been named in Malaysia? A: Sam Yang stated that Viomi successfully launched products on Kickstarter and Amazon in the US, receiving high recognition. In Southeast Asia, Viomi established a strategic partnership with Malaysia's largest retailer, planning to launch more products in the region.

Q: Have any long-term gross margin goals been identified for different revenue categories? A: Sam Yang mentioned that Viomi aims to improve gross margins through product mix optimization, particularly with the Quinlan series. Consumables have a decent gross margin, and Viomi plans to meet industry averages for other categories.

Q: What are Viomi's strategic initiatives for 2025? A: Xiaoping Chen, CEO, outlined four key initiatives: strengthening domestic market presence, driving international market expansion, fortifying the water purification product portfolio, and deepening partnerships to leverage the water purification gigafactory for growth and profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.