Viomi Technology Co., Ltd Files 20-F Annual Report

TL;DR

<b>Viomi Technology Co., Ltd has filed its annual 20-F report for the fiscal year ending December 31, 2023.</b>

AI Summary

Viomi Technology Co., Ltd (VIOT) filed a Foreign Annual Report (20-F) with the SEC on April 25, 2024. Viomi Technology Co., Ltd filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located in Guangzhou, Guangdong, China. Viomi Technology Co., Ltd is classified under the SIC code 3630 (Household Appliances). The report includes information related to its IPO on August 23, 2018.

Why It Matters

For investors and stakeholders tracking Viomi Technology Co., Ltd, this filing contains several important signals. This filing provides investors with a comprehensive overview of Viomi's financial performance, business operations, and risk factors for the fiscal year 2023. As a public document, it allows for transparency and detailed analysis of the company's financial health and strategic direction by stakeholders.

Risk Assessment

Risk Level: medium — Viomi Technology Co., Ltd shows moderate risk based on this filing. The company's business is heavily reliant on its relationship with Xiaomi, as indicated by the 'BusinessCorporationAgreementMember' and 'XiaomiMember' entities, suggesting potential concentration risk.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 20-F to assess Viomi's performance and its dependence on key partners like Xiaomi.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-25 — Filing Date (Date the 20-F was filed)
• 001-38649 — SEC File Number (SEC file number for Viomi Technology Co., Ltd)
• 3630 — SIC Code (Standard Industrial Classification for Household Appliances)
• 2018-08-23 — IPO Date (Date of the company's Initial Public Offering)

Key Players & Entities

• Viomi Technology Co., Ltd (company) — Filer of the 20-F annual report
• Xiaomi (company) — Mentioned in relation to business corporation agreements and other receivables
• Guangzhou, Guangdong (location) — Location of the company's business address
• August 23, 2018 (date) — Date of the company's IPO
• December 31, 2023 (date) — Fiscal year end for the reported period
• Foshan Yunmi Electric Appliances Technology Company Limited (company) — Mentioned in relation to variable interest entity
• Beijing Yunmi Technology Company Limited (company) — Mentioned in relation to variable interest entity
• Household Appliances (industry) — Company's Standard Industrial Classification

FAQ

Risk Factors

• Credit Concentration Risk [medium — financial]: The company faces credit concentration risk related to other receivables from Xiaomi, a significant related party.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 20-F filing.
• 2024-04-25: Filing Date — Date Viomi Technology Co., Ltd submitted its 20-F annual report.
• 2018-08-23: IPO Date — Date of Viomi Technology's Initial Public Offering.

Key Financial Figures

• $0.00001 — Class A ordinary shares, par value US$0.00001 per share * The Nasdaq Stock Market L

Filing Documents

• viot-20231231x20f.htm (20-F) — 4481KB
• viot-20231231xex4d3.htm (EX-4.3) — 20KB
• viot-20231231xex4d4.htm (EX-4.4) — 22KB
• viot-20231231xex4d19.htm (EX-4.19) — 110KB
• viot-20231231xex8d1.htm (EX-8.1) — 10KB
• viot-20231231xex12d1.htm (EX-12.1) — 13KB
• viot-20231231xex12d2.htm (EX-12.2) — 13KB
• viot-20231231xex13d1.htm (EX-13.1) — 6KB
• viot-20231231xex13d2.htm (EX-13.2) — 6KB
• viot-20231231xex15d1.htm (EX-15.1) — 9KB
• viot-20231231xex15d2.htm (EX-15.2) — 4KB
• viot-20231231xex97d1.htm (EX-97.1) — 35KB
• viot-20231231x20f011.jpg (GRAPHIC) — 46KB
• viot-20231231xex15d1001.jpg (GRAPHIC) — 28KB
• viot-20231231xex15d1002.jpg (GRAPHIC) — 23KB
• viot-20231231xex15d1003.jpg (GRAPHIC) — 10KB
• 0001104659-24-051949.txt (&nbsp;) — 14799KB
• viot-20231231.xsd (EX-101.SCH) — 95KB
• viot-20231231_cal.xml (EX-101.CAL) — 94KB
• viot-20231231_def.xml (EX-101.DEF) — 334KB
• viot-20231231_lab.xml (EX-101.LAB) — 713KB
• viot-20231231_pre.xml (EX-101.PRE) — 592KB
• viot-20231231x20f_htm.xml (XML) — 2314KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 2 Part I 3 Item 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 3 Item 2. OFFER STATISTICS AND EXPECTED TIMETABLE 3 Item 3. KEY INFORMATION 3 Item 4. INFORMATION ON THE COMPANY 61 Item 4A. UNRESOLVED STAFF COMMENTS 92 Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 92 Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 108 Item 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 117 Item 8. FINANCIAL INFORMATION 120 Item 9. THE OFFER AND LISTING 121 Item 10. ADDITIONAL INFORMATION 121 Item 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 133 Item 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 134 Part II 137 Item 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 137 Item 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 137 Item 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 137 Item 16A. AUDIT COMMITTEE FINANCIAL EXPERT 138 Item 16B. CODE OF ETHICS 139 Item 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 139 Item 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 139 Item 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 139 Item 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 140 Item 16G. CORPORATE GOVERNANCE 141 Item 16H. MINE SAFETY DISCLOSURE 141 Item 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 141 Item 16J. INSIDER TRADING POLICIES 141 Item 16K. CYBERSECURITY 141 Part III 143 Item 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 143 Item 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 143 Item 19. EXHIBITS 143 i Table of Contents INTRODUCTION Unless otherwise indicated and except where the context otherwise requires, references in this annual report on Form 20-F to: "ADSs" are to our American depositary shares, each of which represents three Class A ordinary shares of par value US$0.00001 each; "AI" are to artificial intelligence; "China" or the "PRC" are to the People's Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan; "Class A ordinary shares" are to our Class A ordinary shares of par value US$0.00001 per share; "Class B ordinary shares" are to our Class B ordinary shares of par value US$0.00001 per share; "household users" are to households where at least one of our IoT products was connected to the internet; "IoT" are to the Internet of Things, an interconnected network of devices that can communicate with one another through the internet; our "home water solutions" are to portfolio of our smart water purification systems with intelligent interconnectivity and communication capabilities; our "IoT@Home platform" are to our IoT@Home portfolio products, home water solutions, together with a suite of complementary consumable products and value-added businesses, powered by AI, proprietary software and data analytics systems; our "IoT@Home portfolio products" are to our portfolio of smart home products with intelligent interconnectivity and communication capabilities, including our smart kitchen products and other smart products; our "IoT products" are to our portfolio of smart home water solutions and IoT@Home portfolio products; "ordinary shares" are to Class A ordinary shares and Class B ordinary shares; "VIEs" are to variable interest entities, and "our VIEs" are to Foshan Yunmi Electric Appliances Technology Co., Ltd., or Foshan Viomi, and Beijing Yunmi Technology Co., Ltd., or Beijing Viomi; "Viomi," "we," "us," "our company" or "our" are to

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This annual report on Form 20-F contains forward-looking statements that relate to our current expectations and views of future events. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigations Reform Act of 1995. You can identify some of these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include statements relating to: our operations and business prospects; our future business development, financial conditions and results of operations; our expectations regarding the IoT products market and the home appliances market in China; our expectations regarding the development of our overseas business; our expectations regarding the development of our water purification system business; our expectations regarding the application of AI technology in smart home products; our expectations regarding our relationships with our ecosystem partners; our expectations regarding the success of our sales channel expansion and optimization; competition for, among other things, capital, technology and skilled personnel; our dividend policy; changes to regulatory and operating conditions in the industry and geographical markets in which we operate; and all other risks and uncertainties described in "Item 3. Key Information—D. Risk Factors

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION Our Holding Company Structure and VIE Contractual Arrangements Viomi Technology Co., Ltd is not a Chinese operating company but rather a Cayman Islands holding company that does not conduct business directly and has no equity ownership in our VIEs. We conduct our operations in China through (i) our WFOEs and (ii) our VIEs with which we have maintained contractual arrangements. PRC laws and regulations restrict and impose conditions on foreign investment in internet and other related businesses in China. According to the Special Administrative Measures (Negative List) for Foreign Investment Access, our provision of internet information services falls within the restricted category and the equity ratio of foreign investment in the enterprises operating the business under the restricted category is subject to the cap of 50%. In addition, although our provision of e-commerce services falls within the permitted category, foreign investments in this business are still restricted by other requirements under related regulations in China. Accordingly, we operate this business in China through our VIEs, and rely on contractual arrangements among our WFOEs, our VIEs and the nominee shareholders of the VIEs to control the business operations of our VIEs. Our VIEs are consolidated for accounting purposes, but are not entities in which our Cayman Islands holding company, or our investors, own equity. Revenues contributed by our VIEs accounted for 91.6%, 86.8% and 85.2% of our total revenues for the years ended December 31, 2021, 2022 and 2023, respectively. As used in this annual report, "we," "us," "our company," "our," or "Viomi" refers to Viomi Technology Co., Ltd, its subsidiaries, and, in the context of describing our operations and consolidated financial information, our VIEs in China, including Foshan Yunmi Electric Appliances Technology Co., Ltd., or Foshan Viomi, and Beijing Yunmi Technology Co., Ltd., or Beijing Viomi. Investors in our ADSs a

View Full Filing

View this 20-F filing on SEC EDGAR