Q2 2021 Results Presentation - Aug. 2021
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Q2 2021 Results Presentation
Aug. 2021
Safe Harbor Statement
This presentation has been prepared by Viomi Technology Co., Ltd (“Viomi” or the “Company”) solely for informational purposes
and does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any
jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in
connection with any contract or commitment whatsoever. This document has been prepared by the Company solely for use at this
presentation. The information contained in this presentation, including the Company’s unaudited financial and operating results for
the second quarter of 2021, has not been independently verified. No representation, warranty or undertaking, express or implied, is
made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the
opinions contained herein. None of the Company or any of its affiliates, directors, officers, advisors or representatives will be liable
(in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising
from or in connection with this presentation.
This presentation contains forward-looking statements that are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These statements include descriptions regarding the intent, belief or current expectations
of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company, which
can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident”
and similar statements. Such forward-looking statements are not guarantees of future performance and involve risks and
uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and
assumptions. The Company or any of its affiliates, directors, officers, advisors or representatives has no obligation and does not
undertake to revise forward-looking statements to reflect new information, future events or circumstances after the date of this
presentation, except as required by law.
2
Agenda
1. Financial and Operating
Highlights
2. Recent Developments
3. Appendix
3
Q2 2021 Financial Highlights
Gross Profit Margin Net Income Attributable to Ordinary Non-GAAP Net Income Attributable
Net Revenues
Shareholders to Ordinary Shareholders(1)
RMB1.7 Bn 21.2% RMB46.1 MM RMB59.5 MM
(+6.9% y-o-y) （+367.4% y-o-y） （+44.9% y-o-y）
Note
1. “Non-GAAP net income attributable to ordinary shareholders” is defined as net income attributable to ordinary shareholders of the Company excluding share-based compensation expenses.
4
1H 2021 Financial Highlights
Own-branded Net Net Income Attributable to Ordinary
Net Revenues Gross Profit Margin
Revenue Growth Shareholders
RMB2.9 Bn 21.2% 29.5% RMB95.2 MM
(+19.0% y-o-y) (+5.5% y-o-y) (y-o-y) （+242.0% y-o-y）
5
Further Product and Channel Diversification (Q2 2021)
Revenue Breakdown by Product Category Revenue Breakdown by Channel
11.5% 13.2%
Small Appliances Home Water
and Others Solutions
6.2%
Consumables
56% 44%
Viomi Business Xiaomi Business
69.1%
IoT @ Home Portfolio
6
Healthy Balance Sheet
Liquidity Position(1)
(RMB MM)
Short-term deposits
Short-term investments 1,127.9
Cash and cash equivalents 66.5
393.8
667.6
Q2 2021
Note
1. As of June 30, 2021. 7
Continued Increase in
Household Users and Product Penetration
Number of Cumulative Household Users(1) Percentage of Household Users with
(‘000) at least 2 Connected Products(1)
20.7%
20.4%
~5,900 20.0%
19.5%
19.0%
~5,600
~5,100
~4,600
~4,200
Q2 2020 Q3 2020 1
Q4 2020 Q1 2021 Q2 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Note
1. At end of respective period. 8
Outlook
Q3 Net revenues:
2021 RMB1.0 billion to RMB1.1 billion
9
Recent Developments
Our Corporate History and Roadmap
1H 2021
Continued Product Portfolio
2020 Optimization and Overseas
Expansion
2018 2019 Announced 2030 “3511”
Established IoT @ Home Announced 5G + IoT Long-term Strategic Vision • Hosted 2021 strategic new product launch event
with the theme of AI: Helpful
Platform Strategy • Enhanced 5G IoT strategic vision and
• Continued introducing new high-end products
• Established comprehensive IoT product • Published “Consumer IoT Outlook 2025” introduced next-gen products and services,
including premium water purifier brand • Accelerated overseas market expansion
portfolio
2014 • Successfully completed IPO on Nasdaq
together with IDC
• Established 5G research institute Quanxian, sweeper robots and large-screen • Published ”trending tech” branding positioning and
refrigerators with diverse content offerings invited top celebrity as the product spokesman
Company Co-founded (Ticker: VIOT) together with major network carriers
• Introduced WUKONG AI chip • Established agreement with local • Cooperated with high-quality merchants for
Together with Xiaomi opening larger offline stores
government for Viomi IoT Tech. Park project
2015 2016 - 2018 2019 – 1H 2021
First Product Launch Continued Cooperation Expanded Cooperation
Initial launch of Xiaomi • Continued collaboration with Xiaomi on • Introduced additional Xiaomi-branded product categories, including
water purifier water purifiers and consumables refrigerator, range hood, sweeper robot, blender and dishwasher
• Introduced additional products, including • Introduced additional SKUs of Xiaomi water purifiers
kettles, water pitchers, water quality meters,
various household items, etc.
11Recent Developments
July 2021 July 2021 August 2021
Published “trending technology” brand Advertised on Focus Media and Xinchao
Reinforced our one-stop
positioning and invited a top celebrity as the Media, covering around 100 major cities
comprehensive IoT @ Home solutions
product spokesperson across China
July 2021 June 30, 2021 July 20, 2021
Entered into a strategic partnership with Participated in the 2021 China (Guangzhou)
Cooperated with good-quality China Unicom (Guangdong) for 5G Smart International Building Decoration Fair with a
merchants to open larger stores Home Strategic Program series of new AI products in a home scenario
12Recent Developments
July 20, 2021 June, 2021 May, 2021
Entered into partnership agreements with iQiyi, During the “618” E-commerce Shopping
Festival, many of our products became viral hits Water purification patents awarded
Douguo app, Haoxiang Shopping and Lingbiao
and ranked among the top 10 bestsellers the China Excellent Patent Award
Technology to enhance cross-industry cooperation
April 14, 2021 April 14, 2021 April 14, 2021
April 14, 2021
Hosted 2021 “AI: Helpful” Strategic New Introduced new SKUs of sweeper robot Launched EROx water purifier which
Product Launch Event Alpha series retains beneficial minerals for human health
13Appendix Selected Unaudited Financial Data
Selected Unaudited Income Statement Data
For the Three Months Ended June 30
Q2 2020 Q2 2021 Q2 2021
(in thousands) (RMB) (RMB) (USD)
Total Revenues 1,684,364 1,658,904 256,932
Total Cost of Revenues (1,443,402) (1,307,072) (202,440)
Gross Profit 240,962 351,832 54,492
Operating Expenses
Research and Development Expenses (60,670) (66,188) (10,251)
Selling and Marketing Expenses (162,107) (214,777) (33,265)
General and Administrative Expenses (16,665) (28,770) (4,456)
Total Operating Expenses (239,442) (309,735) (47,972)
Other Income 7,220 5,070 785
Income from Operations 8,740 47,167 7,305
Interest Income and Investment Income 7,097 8,860 1,372
Other Non-operating Income 594 (402) (62)
Income before Income Tax Expenses 16,431 55,625 8,615
Income Tax Expenses (6,114) (9,210) (1,426)
Less: Net Income Attributable to the Non-controlling Interest Shareholders 460 341 53
Net Income Attributable to Ordinary Shareholders of The Company 9,857 46,074 7,136
Share-based Compensation Expenses 31,218 13,431 2,080
Non-GAAP Net Income Attributable to Ordinary Shareholders of The Company(1) 41,075 59,505 9,216
Note 15
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 expensesSelected Unaudited Balance Sheet Data
As of December 31, 2020 As of June 30, 2021 As of June 30, 2021
(in thousands) (RMB) (RMB) (USD)
Assets
Current Assets
Cash and Cash Equivalents 504,108 667,573 103,394
Restricted Cash 70,601 21,505 3,331
Short-term Deposits - 66,525 10,303
Short-term Investments 696,051 393,788 60,990
Accounts and Notes Receivable from Third Parties 427,352 362,899 56,206
Accounts Receivable from A Related Party 609,094 557,861 86,402
Other Receivables from Related Parties 88,038 148,949 23,069
Inventories 439,375 558,100 86,439
Prepaid Expenses and Other Current Assets 87,280 160,306 24,828
Long-term deposits due within one year 10,000 60,000 9,293
Total Current Assets 2,931,899 2,997,506 464,255
Total Non-current Assets 247,620 231,953 35,925
Total Assets 3,179,519 3,229,459 500,180
Current Liabilities
Accounts and Notes Payable 1,001,371 1,102,055 170,687
Advances from Customers 112,613 78,502 12,158
Amount due to Related Parties 124,192 5,852 906
Accrued Expenses and Other Liabilities 335,488 318,689 49,359
Income Tax Payables 50,962 36,953 5,723
Lease Liabilities due within One Year 9,481 12,391 1,919
Total Current Liabilities 1,634,107 1,554,442 240,752
Total Non-current Liabilities 15,093 17,490 2,709
Total Liabilities 1,649,200 1,571,932 243,461
Total Shareholders’ Equity 1,530,319 1,657,527 256,719
Total Liabilities and Shareholders’ Equity 3,179,519 3,229,459 500,180
16Thank You! IR Contact: ir@viomi.com
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