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VIOT Viomi Technology

Filed: 27 May 21, 4:00pm

Exhibit 99.1

Viomi Technology Co., Ltd Reports First Quarter 2021 Unaudited Financial Results

 

Net revenues increased by 64.0% year-over-year, exceeding previous guidance

Gross margin increased to 21.1% from 18.8% a year ago

 

GUANGZHOU, China, May 27, 2021 (GLOBE NEWSWIRE) -- Viomi Technology Co., Ltd (“Viomi” or the “Company”) (NASDAQ: VIOT), a leading IoT @ Home technology company in China, today announced its unaudited financial results for the first quarter ended March 31, 2021.

 

First Quarter 2021 Financial and Operating Highlights

 

Net revenues reached RMB1,255.6 million (US$191.6 million), an increase of 64.0% from the first quarter of 2020.

Gross margin was 21.1%, compared to 18.8% for the first quarter of 2020.

Net income attributable to ordinary shareholders of the Company increased by 173.2% to RMB49.1 million (US$7.5 million) from RMB18.0 million for the first quarter of 2020.

Non-GAAP net income attributable to ordinary shareholders of the Company 1 increased by 106.8% to RMB65.3 million (US$10.0 million) from RMB31.6 million for the first quarter of 2020.

Number of cumulative household users reached to approximately 5.6 million, compared to approximately 5.1 million as of the end of 2020 and approximately 3.7 million as of the end of the first quarter of 2020.

Percentage of household users with at least two connected products reached 20.4%, compared to 20.0% as of the end of 2020 and 18.4% as of the end of the first quarter of 2020.

 

“We started 2021 with an all-around robust performance in the first quarter. Leveraging the optimization of our product portfolio, new product sales growth and enhanced brand recognition, we delivered strong net revenues that exceeded our previous guidance, increasing 64.0% from the same period in 2020 when our operations were impacted by COVID-19. We also continued achieving a healthy recovery on gross margin,” said Mr. Xiaoping Chen, Founder, Chairman of the Board of Directors and Chief Executive Officer of Viomi.

 

1 

“Non-GAAP net income attributable to ordinary shareholders of the Company” is defined as net income attributable to ordinary shareholders of the Company excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

 


 

 

“Our continued growth over the past several years has been driven by continuous optimization of our IoT products and holistic IoT solutions, through innovation and integration of cross-boundary technologies, alongside a deep understanding of our users’ needs. We remain focused on AI applications across our product portfolio and have introduced a series of strategic new AI-based products, including water purifiers, smart toilets, water heaters, range hoods, gas stoves and air conditioners, among others. Our products are designed with an eye on health care, smartification, home security and natural AI voice interactions. Some new products, equipped with sensors and supported by AI algorithms, are able to collect home and human health data with users’ consent,” Mr. Chen added.

 

“In addition, we focused our resources on developing key product categories and rolled out more differentiated and industry-leading products. Following our introduction of a series of premium large-flux water purifiers, we launched a mineral water purifier, EROx, which retains beneficial minerals for human health during the purification process to meet high-end users’ needs. We have accumulated a significant number of innovative technologies and patents in the area of water purification, with more than 700 registered patents as of the end of the first quarter. Some of these patents have been awarded the China Excellent Patent Award, authorized by China National Intellectual Property Administration and World Intellectual Property Organization, as well as recognized by China Association for Quality Inspection and other authorities.

 

“First quarter growth was also attributable to our overseas market expansion. Our sweeper robot business which launched in the fourth quarter of last year has developed rapidly in Mid Europe, Southeast Asia, Korea, Australia and other regions and expanded to North Europe and additional Asian countries this year. We plan to expand to North American markets and channels in the second half of this year. The new sweeper robot products with differentiated functionalities we introduced earlier have been welcomed by domestic and global markets, and are expected to continue driving sales in overseas channels.

 

“Looking ahead at the rest of 2021, we will continue to optimize our IoT product portfolio with a focus on AI application and technology innovation, strengthen our brand recognition through additional effective marketing and advertising tools, and improve our IoT home services including sales, experience, after-sale and installation services, enhancing overall 5G IoT home system and user experience while maintaining our leading position in the IoT home industry and bringing long-term shareholder value,” concluded Mr. Chen.

 

 


 

First Quarter 2021 Financial Results

 

REVENUE

 

Net revenues increased by 64.0% to RMB1,255.6 million (US$191.6 million) from RMB765.5 million for the first quarter of 2020, primarily due to the continued successful rollout and significant increase in sales of new products, overseas market expansion, as well as the low-base effect of the first quarter of last year due to COVID-19.

 

 

-

IoT @ Home portfolio. Revenues from IoT @ Home portfolio increased by 111.5% to RMB919.2 million (US$140.3 million) from RMB434.7 million for the first quarter of 2020. The growth was primarily driven by sustained sales increases for certain new product series, in particular Viomi-branded sweeper robots and smart kitchen products.

 

 

-

Home water solutions. Revenues from home water solutions decreased by 4.0% to RMB103.8 million (US$15.8 million) from RMB108.0 million for the first quarter of 2020. The decline was primarily due to the decreases in average selling prices of Xiaomi-branded water purifier products. This was partially offset by the successful introduction and increased sales of a new series of Viomi-branded water purifier products, which narrowed the year-over-year decline for home water solutions, compared to previous quarters.

 

 

-

Consumables. Revenues from consumables are RMB64.8 million (US$9.9 million), compared to RMB65.0 million for the first quarter of 2020.

 

 

-

Small appliances and others. Revenues from small appliances and others increased by 6.4% to RMB167.8 million (US$25.6 million) from RMB157.8 million for the first quarter of 2020.

 

GROSS PROFIT

 

Gross profit increased by 84.1% to RMB265.0 million (US$40.5 million) from RMB144.0 million for the first quarter of 2020. Gross margin was 21.1%, compared to 18.8% for the first quarter of 2020, primarily driven by the Company’s efforts to shift the business and product mix toward higher gross margin products, including the rollout of new Viomi-branded water purifiers and sweeper robots, alongside the optimization of margins across product lines and cost control measures.

 

 


 

OPERATING EXPENSES

 

Total operating expenses increased by 63.8% to RMB219.8 million (US$33.6 million) from RMB134.2 million for the first quarter of 2020, primarily due to the growth of the Company’s business.

 

Research and development expenses increased by 10.7% to RMB65.6 million (US$10.0 million) from RMB59.3 million for the first quarter of 2020, mainly due to the increase of research and development experts and related salaries and expenses.

 

Selling and marketing expenses increased by 110.8% to RMB138.0 million (US$21.1 million) from RMB65.5 million for the first quarter of 2020, primarily attributable to the low-base effect of the first quarter of last year due to COVID-19 when the Company undertook very limited marketing and advertising activities.

 

General and administrative expenses increased by 71.3% to RMB16.2 million (US$2.5 million), compared to RMB9.5 million for the first quarter of 2020, primarily due to the increase of personnel and related salaries and expenses.

 

INCOME FROM OPERATIONS

 

Income from operations increased by 276.1% to RMB47.1 million (US$7.2 million) from RMB12.5 million for the first quarter of 2020.

 

Non-GAAP operating income2, which excludes the impact of share-based compensation expenses, increased by 142.2% to RMB63.2 million (US$9.7 million) from RMB26.1 million for the first quarter of 2020.

 

NET INCOME

 

Net income attributable to ordinary shareholders of the Company increased by 173.2% to RMB49.1 million (US$7.5 million) from RMB18.0 million for the first quarter of 2020.

 

 

2 

“Non-GAAP operating income” is defined as income from operation excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

 


 

Non-GAAP net income attributable to ordinary shareholders of the Company increased by 106.8% to RMB65.3 million (US$10.0 million) from RMB31.6 million for the first quarter of 2020.

 

BALANCE SHEET

 

As of March 31, 2021, the Company had cash and cash equivalents of RMB906.3 million (US$138.3 million), restricted cash of RMB45.2 million (US$6.9 million), short-term deposits of RMB97.7 million (US$14.9 million) and short-term investments of RMB596.9 million (US$91.1 million), compared to RMB504.1 million, RMB70.6 million, nil and RMB696.1 million, respectively, as of December 31, 2020.

 

RECENT DEVELOPMENT

 

The Company has appointed Mr. Xiufei (Bob) Bao as its president, effective on May 24, 2021. Prior to joining Viomi, Mr. Bao served as the general manager of Beingmate Baby & Child Food Co., Ltd., from July 2018 to January 2021. Mr. Bao received his EMBA degree from Zhejiang University in 2011, and his bachelor’s degree from Anhui University of Finance and Economics in 1991.

 

Mr. Chen commented, “With the rapid consumption upgrade and evolving user needs, users are keen on brands that are fashionable and of good quality. In order to promote our “3511” long-term strategy and further develop us as the trending brand in IoT home area, we warmly welcome Bob to join Viomi as our president. We believe Bob will bring new energy and insights to our branding development with his extensive experience in the consumer industry.”

 

OUTLOOK

 

For the second quarter of 2021, the Company currently expects:

 

-

Net revenues to be between RMB1.72 billion and RMB1.85 billion, representing a year-over-year growth of approximately 2.1% to 9.8%.

 

The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

 


 

Conference Call

 

The Company’s management will host a conference call at 8:00 a.m. Eastern Time on Thursday, May 27, 2021 (8:00 p.m. Beijing/Hong Kong time on May 27, 2021) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

 

United States (Toll Free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (Toll Free):

400-120-1203

Hong Kong (Toll Free):

800-905-945

Hong Kong:

+852-3018-4992

Conference ID:

10156541

 

A telephone replay will be available one hour after the call until June 3, 2021 by dialing:

 

United States:

+1-877-344-7529

International:

+1-412-317-0088

Replay Passcode:

10156541

 

Additionally, a live and archived webcast of the conference call will be available at http://ir.viomi.com.

 

About Viomi Technology

 

Viomi’s mission is to redefine the future home via the concept of IoT @ Home.

 

Viomi has developed a unique IoT @ Home platform consisting an ecosystem of innovative IoT-enabled smart home products, together with a suite of complementary consumable products and value-added businesses. This platform provides an attractive entry point into the consumer home, enabling consumers to intelligently interact with a broad portfolio of IoT products in an intuitive and human-like manner to

 


make daily life more convenient, efficient and enjoyable, while allowing Viomi to grow its household user base and capture various additional scenario-driven consumption events in the home environment.

 

For more information, please visit: http://ir.viomi.com.

 

Use of Non-GAAP Measures

 

The Company uses non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to the Company, non-GAAP net income attributable to ordinary shareholders, non-GAAP basic and diluted net income per ordinary share and non-GAAP basic and diluted net income per American depositary share (“ADS”), which are non-GAAP financial measures, in evaluating its operating results and for financial and operational decision-making purposes. Non-GAAP operating income is income from operations excluding share-based compensation expenses. Non-GAAP net income is net income excluding share-based compensation expenses. Non-GAAP net income attributable to the Company is net income attributable to the Company excluding share-based compensation expenses. Non-GAAP net income attributable to ordinary shareholders is net income attributable to ordinary shareholders excluding share-based compensation expenses. Non-GAAP basic and diluted net income per ordinary share is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. Non-GAAP basic and diluted net income per ADS is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ADS used in the calculation of non-GAAP basic and diluted net income per ADS. The non-GAAP adjustments do not have any tax impact as share-based compensation expenses are non-deductible for income tax purpose.

 

The Company believes that non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges, and these measures provide useful information about the Company’s operating results, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

 

Non-GAAP financial measures should not be considered in isolation or construed as alternative to income from operations, net income, or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. We encourage investors and others to review its financial information in its entirety and not rely on

 


a single financial measure. Reconciliations of the Company’s non-GAAP financial measures to the most directly comparable GAAP measures are included at the end of this press release.

 

Exchange Rate

 

The Company’s business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.5518 to US$1.00, the effective noon buying rate for March 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on for March 31, 2021, or at any other rate.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Viomi’s strategic and operational plans, contain forward-looking statements. Viomi may also make written or oral forward-looking statements in its periodic reports to the United States Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to Fourth parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; the cooperation with Xiaomi, the recognition of the Company’s brand; trends and competition in global IoT-enabled smart home market; development and commercialization of new products, services and technologies; governmental policies relating to the Company’s industry and general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

 


 

For investor and media inquiries, please contact:

 

In China:

 

Viomi Technology Co., Ltd

Cecilia Li

E-mail: ir@viomi.com.cn

 

The Piacente Group, Inc.

Emilie Wu

Tel: +86-21-6039-8363

E-mail: viomi@tpg-ir.com

 

In the United States:

 

The Piacente Group, Inc.  

Brandi Piacente

Tel: +1-212-481-2050

E-mail: viomi@tpg-ir.com

                                                                

 


 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

As of December 31,

 

As of March 31,

 

 

2020

 

2021

 

2021

 

 

RMB

 

RMB

 

US$

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

504,108

 

906,342

 

138,335

Restricted cash

 

70,601

 

45,192

 

6,898

Short-term deposits

 

-

 

97,670

 

14,907

Short-term investments

 

696,051

 

596,929

 

91,109

Accounts and notes receivable from third parties (net of allowance of RMB9,246 and RMB8,711, as of December 31, 2020 and March 31, 2021, respectively)

 

427,352

 

262,869

 

40,122

Accounts receivable from a related party (net of allowance of RMB61 and RMB27 as of December 31, 2020 and March 31, 2021, respectively)

 

609,094

 

272,918

 

41,655

Other receivables from related parties (net of allowance of RMB9 and RMB4 as of December 31, 2020 and March 31, 2021, respectively)

 

88,038

 

35,268

 

5,383

Inventories

 

439,375

 

592,076

 

90,368

Prepaid expenses and other current assets

 

87,280

 

128,255

 

19,575

Long-term deposits-current portion

 

10,000

 

10,000

 

1,526

 

 

 

 

 

 

 

Total current assets

 

2,931,899

 

2,947,519

 

449,878

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Prepaid expenses and other non-current assets

 

19,803

 

27,743

 

4,237

Property, plant and equipment, net

 

72,436

 

67,529

 

10,307

Deferred tax assets

 

14,189

 

16,056

 

2,451

Intangible assets, net

 

7,681

 

7,550

 

1,152

Right-of-use assets, net

 

20,529

 

25,315

 

3,864

Land use rights, net

 

        62,982

 

62,676

 

9,566

Long-term deposits-non-current portion

 

        50,000

 

50,000

 

7,631

 

 

 

 

 

 

 

Total non-current assets

 

247,620

 

256,869

 

39,208

 

 

 

 

 

 

 

Total assets

 

3,179,519

 

3,204,388

 

489,086

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts and notes payable

 

  1,001,371

 

1,128,146

 

172,189

Advances from customers

 

     112,613

 

91,306

 

13,937

Amount due to related parties

 

     124,192

 

                47,852

 

7,304

Accrued expenses and other liabilities

 

     335,488

 

               256,187

 

39,102

Income tax payables

 

        50,962

 

48,628

 

7,422

Lease liabilities due within one year

 

          9,481

 

11,355

 

1,733

Total current liabilities

 

  1,634,107

 

1,583,474

 

241,687

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Accrued expenses and other liabilities

 

          3,400

 

2,889

 

441

Lease liabilities

 

        11,693

 

14,201

 

2,167

Total non-current liabilities

 

15,093

 

17,090

 

2,608

 

 

 

 

 

 

 

Total liabilities

 

1,649,200

 

1,600,564

 

244,295

 

 


 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

As of December 31,

 

As of March 31,

 

 

2020

 

2021

 

2021

 

 

RMB

 

RMB

 

US$

Shareholders’ equity

 

 

 

 

 

 

Class A Ordinary Shares (US$0.00001 par value; 4,800,000,000 shares authorized; 104,163,686 and 105,756,638 shares issued and outstanding as of December 31, 2020 and March 31, 2021, respectively)

 

6

 

 

 

 

6

 

 

 

 

1

Class B Ordinary Shares (US$0.00001 par value; 150,000,000 shares authorized; 103,554,546 and 103,524,546 shares issued and outstanding as of December 31, 2020 and March 31, 2021, respectively)

 

6

 

 

 

 

6

 

 

 

 

1

Treasury stock

 

(54,600)

 

(54,600)

 

(8,334)

Additional paid-in capital

 

1,278,004

 

1,299,789

 

198,387

Retained earnings

 

363,051

 

410,410

 

62,641

Accumulated other comprehensive loss

 

(59,384)

 

(55,288)

 

(8,439)

 

 

 

 

 

 

 

Total equity attributable to shareholders of the Company

 

1,527,083

 

1,600,323

 

244,257

 

 

 

 

 

 

 

Non-controlling interests

 

3,236

 

3,501

 

534

 

 

 

 

 

 

 

Total shareholders’ equity

 

1,530,319

 

1,603,824

 

244,791

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

3,179,519

 

3,204,388

 

489,086

 

 


 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

Three Months Ended

 

 

March 31, 2020

 

March 31, 2021

 

March 31, 2021

 

 

RMB

 

RMB

 

US$

Net revenues:

 

 

 

 

 

 

A related party

 

404,979

 

585,869

 

89,421

Third parties

 

360,527

 

669,723

 

102,220

Total net revenues

 

765,506

 

1,255,592

 

191,641

 

 

 

 

 

 

 

Cost of revenues (including RMB14,593 and RMB1,922 with related parties for the three months ended March 31, 2020 and 2021, respectively)

 

(621,540)

 

 

 

(990,571)

 

(151,191)

 

 

 

 

 

 

 

Gross profit

 

143,966

 

265,021

 

40,450

 

 

 

 

 

 

 

Operating expenses(1)

 

 

 

 

 

 

Research and development expenses (including RMB596 and RMB750 with a related party for the three months ended March 31, 2020 and 2021, respectively)

 

(59,261)

 

 

(65,601)

 

(10,013)

Selling and marketing expenses (including RMB8,080 and RMB13,004 with related parties for the three months ended March 31, 2020 and 2021, respectively)

 

(65,470)

 

 

(138,024)

 

(21,067)

General and administrative expenses

 

(9,458)

 

(16,204)

 

(2,473)

 

 

 

 

 

 

 

Total operating expenses

 

(134,189)

 

(219,829)

 

(33,553)

 

 

 

 

 

 

 

Other income, net

 

2,741

 

1,894

 

289

 

 

 

 

 

 

 

Income from operations

 

12,518

 

47,086

 

7,186

 

 

 

 

 

 

 

Interest income and short-term investment income, net

 

5,336

 

6,518

 

995

Other non-operating income

 

90

 

633

 

97

 

 

 

 

 

 

 

Income before income tax expenses

 

17,944

 

54,237

 

8,278

 

 

 

 

 

 

 

Income tax expenses

 

(126)

 

(4,859)

 

(742)

 

 

 

 

 

 

 

Net income

 

17,818

 

49,378

 

7,536

 

 

 

 

 

 

 

Less: Net income (loss) attributable to the non-controlling interest shareholder

 

(157)

 

264

 

40

 

 

 

 

 

 

 

Net income attributable to ordinary shareholders of the Company

 

17,975

 

49,114

 

7,496

 

 


 

VIOMI TECHNOLOGY CO., LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (CONTINUED)

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

Three Months Ended

 

 

March 31, 2020

 

March 31, 2021

 

March 31, 2021

 

 

RMB

 

RMB

 

US$

Net income attributable to the Company

 

17,975

 

49,114

 

  7,496

 

 

 

 

 

 

 

Other comprehensive (loss) income, net of tax

 

 

 

 

 

 

Foreign currency translation adjustment

 

11,314

 

4,096

 

625

 

 

 

 

 

 

 

Total comprehensive income attributable to the Company

 

29,289

 

53,210

 

8,121

 

 

 

 

 

 

 

Net income per share attributable to ordinary shareholders of the Company

 

 

 

 

 

 

-Basic

 

0.09

 

0.24

 

0.04

-Diluted

 

0.08

 

0.22

 

0.03

 

 

 

 

 

 

 

Weighted average number of ordinary shares used in calculating net income per share

 

 

 

 

 

 

-Basic

 

    209,304,658

 

207,876,562

 

207,876,562

-Diluted

 

    215,830,463

 

  223,072,146  

 

  223,072,146  

 

 

 

 

 

 

 

Net income per ADS*

 

 

 

 

 

 

-Basic

 

0.26

 

0.71

 

0.11

-Diluted

 

0.25

 

0.66

 

0.10

 

 

 

 

 

 

 

Weighted average number of ADS used in calculating net income per ADS

 

 

 

 

 

 

-Basic

 

      69,768,219

 

69,292,187

 

69,292,187

-Diluted

 

      71,943,488

 

74,357,382

 

  74,357,382  

 

 

*Each ADS represents 3 ordinary shares.

 

(1) Share-based compensation was allocated in operating expenses as follows:

 

 

 

Three Months Ended

 

 

March 31, 2020

 

March 31, 2021

 

March 31, 2021

 

 

RMB

 

RMB

 

US$

General and administrative expenses

 

                2,376

 

2,472

 

377

Research and development expenses

 

                8,240

 

10,270

 

1,567

Selling and marketing expenses

 

                2,970

 

3,404

 

520

 

 

 


 

VIOMI TECHNOLOGY CO., LTD

Reconciliations of GAAP and Non-GAAP Results

(All amounts in thousands, except shares, ADS, per share and per ADS data)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 2020

 

March 31, 2021

 

March 31, 2021

 

 

RMB

 

RMB

 

US$

Income from operations

 

12,518

 

47,086

 

7,186

Share-based compensation expenses

 

13,586

 

16,146

 

2,464

 

 

 

 

 

 

 

Non-GAAP operating income

 

26,104

 

63,232

 

9,650

 

 

 

 

 

 

 

Net income

 

17,818

 

49,378

 

7,536

Share-based compensation expenses

 

13,586

 

16,146

 

2,464

 

 

 

 

 

 

 

Non-GAAP net income

 

31,404

 

65,524

 

10,000

 

 

 

 

 

 

 

Net income attributable to the Company

 

17,975

 

49,114

 

7,496

Share-based compensation expenses

 

13,586

 

16,146

 

2,464

 

 

 

 

 

 

 

Non-GAAP net income attributable to the Company

 

31,561

 

65,260

 

9,960

 

 

 

 

 

 

 

Net income attributable to ordinary shareholders

 

17,975

 

49,114

 

7,496

Share-based compensation expenses

 

13,586

 

16,146

 

2,464

 

 

 

 

 

 

 

Non-GAAP net income attributable to ordinary shareholders

 

31,561

 

65,260

 

9,960

 

 

 

 

 

 

 

Non-GAAP net income per ordinary share

 

 

 

 

 

 

-Basic

 

0.15

 

0.31

 

0.05

-Diluted

 

0.15

 

0.29

 

0.04

 

 

 

 

 

 

 

Weighted average number of ordinary shares used in calculating Non-GAAP net income per share

 

 

 

 

 

��

-Basic

 

209,304,658

 

207,876,562

 

207,876,562

-Diluted

 

215,830,463

 

223,072,146

 

223,072,146

 

 

 

 

 

 

 

Non-GAAP net income per ADS

 

 

 

 

 

 

-Basic

 

0.45

 

0.94

 

0.14

-Diluted

 

0.44

 

0.88

 

0.13

 

 

 

 

 

 

 

Weighted average number of ADS used in calculating Non-GAAP net income per ADS

 

 

 

 

 

 

-Basic

 

69,768,219

 

69,292,187

 

69,292,187

-Diluted

 

71,943,488

 

74,357,382

 

74,357,382

 

Note: The non-GAAP adjustments does not have any tax impact as share-based compensation expenses are non-deductible for income tax purpose.