Guangdong, China, Sept. 27, 2024 (GLOBE NEWSWIRE) -- On September 26, 2024, Viomi Technology Co., Ltd (NASDAQ: VIOT) held its 2024 Investor Day in Shunde, Foshan, where the Founder and CEO Mr. Xiaoping Chen, Head of Capital and Strategy Sam Yang and the investor relations team had in-depth exchanges with more than twenty investor representatives. The open day has several sessions, including visiting the Viomi Tech Park, immersive experience spaces for Viomi’s intelligent home water solutions, and the Water Purifier Gigafactory. The company team introduced in details about the production and operation, R&D and innovation, market layout, etc., and had an interactive Q&A session with investor representatives. Investors experienced the charm of Tech Fashion, gained an in-depth understanding of Viomi's industrial layout, and discussed new opportunities for future development.
At the beginning of the event, investors visited Viomi's intelligent water purification showroom to learn about the company's technological breakthroughs and product innovation history in the field of intelligent water purification. In the past 10 years, Viomi has continued to lead the industry in technological breakthroughs. We developed tankless large-flux water purifiers that provide fresh drinking water 24/7. By upgrading the water flux up to 2000G, we expanded purified water usage scenarios from drinking to cooking, washing vegetables, and more. In addition, we implemented ERO electrodialysis technology to offer adjustable water quality, ranging from pure water to natural mineral water, setting new trends in healthy living. At the Viomi Spring Water Purifier New Product Launch in March 2024, we unveiled the Viomi Kunlun Mineral AI Water Purifier. Its innovative mineralizing filter technology enables the sustained release of beneficial minerals, making the composition of these minerals in the water almost identical to that of natural mineral water, allowing our users to enjoy fresh mineral water at home. Investors are impressed by Viomi’s strong production and R&D capabilities and rich product matrix.
During the event, investors also visited Viomi's Water Purifier Gigafactory, intuitively witnessing the highly integrated and complete industrial chain layout, highly automated production lines, high-standard hygiene production environment, as well as the whole chain traceable quality control system. When they learned that the annual production capacity of the gigafactory can reach 5 million units of the water purifier and 30 million filter cartridges, they marveled at the absolute strength of the company's advanced manufacturing.
In the interactive Q&A session, investors focused on the industry's competitive landscape, market layout, R&D innovation, business model and other topics to carry out in-depth exchanges and discussions. With the mission of “AI for Better Water”, Viomi is committed to using AI technology to provide better home water purification solutions for global users. Using our professional experience in AI technology application, intelligent hardware and software development to redefine household water purification and create a unique “Equipment + Consumables” business model.
On August 31, 2024, the Company has successfully completed the major strategic reorganization, and will mainly focus on its core strengths in the home water solutions to elevate the Company’s overall operational trajectory. The reorganization is expected to drive healthy and sustainable long-term growth for the Company. In the meantime, the Company implemented rigorous ‘Focus’ strategy in the first half of 2024, prioritizing high-quality development and consistently enhancing the operating performance. We concentrated on our advantageous categories, boosting our core home water solution products’ revenue while further optimizing our product structure. As a result, our overall gross margin continued to improve to 24.8% for the first half of 2024 from 22.0% for the same period in 2023. Rigorous cost control measures led to a year-over-year decline in operating expenses by 19.2%, contributing to a turnaround in net profit with a net income of RMB5.6 million and a non-GAAP net income of RMB16.1 million. Additionally, we maintained a strong cash position, with free cash assets totaling RMB914.3 million. We also issued the full year guidance in our recent earnings release, with the estimated revenues from the continuing businesses to be between RMB1.7 billion to RMB1.9 billion, and the income from operations between RMB110 million to RMB130 million.
By holding these open day activities, investors experienced our innovative achievements, gained a deeper understanding of Viomi's development history, and felt our R&D and manufacturing strength. Looking forward, we will continue to uphold an open and professional atmosphere, build a closer investor relations network, adhere to the development path of R&D and innovation-driven, market-led, and promote the healthy and sustainable development of the company. In the meantime, increase investor trust and confidence in Viomi, providing long-term returns for investors, and sharing a promising future.
