20-F 1 viot-20f_20211231.htm 20-F viot-20f_20211231.htm
false FY 0001742770 --12-31 true http://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Member F4 F4 F4 F4 F4 F4 F4 P10Y 0.05 P2Y 0.00 0.4130 0.4293 P10Y P10Y 1.04 0.84 0.0220 0.0288 0.0330 0.0319 0.4362 0.4341 1.47 2.25 P8Y4M24D P7Y7M2D P8Y29D P7Y4M28D P6Y7D P8Y1M28D F4 F4 0001742770 2021-01-01 2021-12-31 xbrli:shares 0001742770 us-gaap:CommonClassAMember 2021-12-31 0001742770 us-gaap:CommonClassBMember 2021-12-31 0001742770 viot:AmericanDepositoryReceiptsMember 2021-01-01 2021-12-31 0001742770 us-gaap:CommonClassAMember 2021-01-01 2021-12-31 0001742770 dei:BusinessContactMember 2021-01-01 2021-12-31 iso4217:CNY 0001742770 2020-12-31 0001742770 2021-12-31 iso4217:USD 0001742770 us-gaap:CommonClassAMember 2020-12-31 0001742770 us-gaap:CommonClassBMember 2020-12-31 0001742770 viot:ThirdPartyMember 2020-12-31 0001742770 viot:ThirdPartyMember 2021-12-31 0001742770 viot:RelatedPartyMember 2020-12-31 0001742770 viot:RelatedPartyMember 2021-12-31 iso4217:USD xbrli:shares 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-12-31 0001742770 2019-01-01 2019-12-31 0001742770 2020-01-01 2020-12-31 iso4217:CNY xbrli:shares 0001742770 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-12-31 0001742770 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-12-31 0001742770 us-gaap:ResearchAndDevelopmentExpenseMember 2021-01-01 2021-12-31 0001742770 us-gaap:SellingAndMarketingExpenseMember 2019-01-01 2019-12-31 0001742770 us-gaap:SellingAndMarketingExpenseMember 2020-01-01 2020-12-31 0001742770 us-gaap:SellingAndMarketingExpenseMember 2021-01-01 2021-12-31 0001742770 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-12-31 0001742770 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-12-31 0001742770 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2018-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2018-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001742770 us-gaap:RetainedEarningsMember 2018-12-31 0001742770 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001742770 us-gaap:ParentMember 2018-12-31 0001742770 us-gaap:NoncontrollingInterestMember 2018-12-31 0001742770 2018-12-31 0001742770 us-gaap:RetainedEarningsMember 2019-01-01 2019-12-31 0001742770 us-gaap:ParentMember 2019-01-01 2019-12-31 0001742770 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2019-01-01 2019-12-31 0001742770 us-gaap:ParentMember viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2019-01-01 2019-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2019-01-01 2019-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember viot:ConversionOfClassBOrdinarySharesIntoClassAOrdinarySharesMember 2019-01-01 2019-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassBMember viot:ConversionOfClassBOrdinarySharesIntoClassAOrdinarySharesMember 2019-01-01 2019-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2019-01-01 2019-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-12-31 0001742770 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2019-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2019-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001742770 us-gaap:RetainedEarningsMember 2019-12-31 0001742770 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001742770 us-gaap:ParentMember 2019-12-31 0001742770 us-gaap:NoncontrollingInterestMember 2019-12-31 0001742770 2019-12-31 0001742770 us-gaap:RetainedEarningsMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2019-12-31 0001742770 us-gaap:ParentMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2019-12-31 0001742770 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2019-12-31 0001742770 us-gaap:RetainedEarningsMember 2020-01-01 2020-12-31 0001742770 us-gaap:ParentMember 2020-01-01 2020-12-31 0001742770 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2020-01-01 2020-12-31 0001742770 us-gaap:ParentMember viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2020-01-01 2020-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2020-01-01 2020-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember viot:ConversionOfClassBOrdinarySharesIntoClassAOrdinarySharesMember 2020-01-01 2020-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassBMember viot:ConversionOfClassBOrdinarySharesIntoClassAOrdinarySharesMember 2020-01-01 2020-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-01-01 2020-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-12-31 0001742770 us-gaap:TreasuryStockMember 2020-01-01 2020-12-31 0001742770 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001742770 us-gaap:TreasuryStockMember 2020-12-31 0001742770 us-gaap:RetainedEarningsMember 2020-12-31 0001742770 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001742770 us-gaap:ParentMember 2020-12-31 0001742770 us-gaap:NoncontrollingInterestMember 2020-12-31 0001742770 us-gaap:RetainedEarningsMember 2021-01-01 2021-12-31 0001742770 us-gaap:ParentMember 2021-01-01 2021-12-31 0001742770 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2021-01-01 2021-12-31 0001742770 us-gaap:ParentMember viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2021-01-01 2021-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2021-01-01 2021-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember viot:ConversionOfClassBOrdinarySharesIntoClassAOrdinarySharesMember 2021-01-01 2021-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassBMember viot:ConversionOfClassBOrdinarySharesIntoClassAOrdinarySharesMember 2021-01-01 2021-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-01-01 2021-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-12-31 0001742770 us-gaap:TreasuryStockMember 2021-01-01 2021-12-31 0001742770 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-12-31 0001742770 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-12-31 0001742770 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001742770 us-gaap:TreasuryStockMember 2021-12-31 0001742770 us-gaap:RetainedEarningsMember 2021-12-31 0001742770 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001742770 us-gaap:ParentMember 2021-12-31 0001742770 us-gaap:NoncontrollingInterestMember 2021-12-31 0001742770 us-gaap:CreditConcentrationRiskMember 2021-01-01 2021-12-31 0001742770 us-gaap:RevenueFromRightsConcentrationRiskMember 2021-01-01 2021-12-31 0001742770 viot:FounderMember 2014-05-31 0001742770 viot:TianjinJinxingInvestmentCompanyLimitedMember 2014-05-31 0001742770 viot:KeyManagementFoundersMember 2014-05-31 xbrli:pure 0001742770 viot:RedBetterLimitedMember viot:KeyManagementFoundersMember us-gaap:CommonClassAMember 2015-07-01 2015-07-31 0001742770 viot:RedBetterLimitedMember viot:FounderMember viot:ClassBRedeemableConvertibleOrdinarySharesMember 2015-07-01 2015-07-31 0001742770 viot:ViomiLimitedMember us-gaap:CommonClassBMember 2015-07-01 2015-07-31 0001742770 viot:FoshanYunmiElectricAppliancesTechnologyCompanyLimitedMember 2018-01-01 2018-12-31 0001742770 viot:SeriesARedeemableConvertiblePreferredSharesMember viot:InvestorsMember 2015-07-31 0001742770 viot:SeriesARedeemableConvertiblePreferredSharesMember viot:InvestorsMember 2015-01-01 2015-07-31 0001742770 us-gaap:CommonClassAMember 2018-06-30 0001742770 2018-08-22 0001742770 2018-08-22 2018-08-23 0001742770 2018-08-23 0001742770 viot:SunglowWealthHKLimitedMember viot:GuangdongLiziTechnologyCompanyLimitedMember 2020-11-30 0001742770 srt:SubsidiariesMember viot:ViomiHKTechnologyCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 srt:SubsidiariesMember viot:LequanTechnologyBeijingCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 srt:SubsidiariesMember viot:CodreamHKCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 srt:SubsidiariesMember viot:YunmiHulianTechnologyGuangdongCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 srt:SubsidiariesMember viot:ZhumengHulianTechnologyGuangdongCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 srt:SubsidiariesMember viot:GuangdongLiziTechnologyCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 srt:SubsidiariesMember viot:GuangzhouInterconnectTechnologyCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:FoshanYunmiElectricAppliancesTechnologyCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:BeijingYunmiTechnologyCompanyLimitedMember 2021-01-01 2021-12-31 0001742770 srt:SubsidiariesMember viot:ViomiHKTechnologyCompanyLimitedMember 2021-12-31 0001742770 srt:SubsidiariesMember viot:LequanTechnologyBeijingCompanyLimitedMember 2021-12-31 0001742770 srt:SubsidiariesMember viot:CodreamHKCompanyLimitedMember 2021-12-31 0001742770 srt:SubsidiariesMember viot:YunmiHulianTechnologyGuangdongCompanyLimitedMember 2021-12-31 0001742770 srt:SubsidiariesMember viot:ZhumengHulianTechnologyGuangdongCompanyLimitedMember 2021-12-31 0001742770 srt:SubsidiariesMember viot:GuangdongLiziTechnologyCompanyLimitedMember 2021-12-31 0001742770 srt:SubsidiariesMember viot:GuangzhouInterconnectTechnologyCompanyLimitedMember 2021-12-31 0001742770 viot:GuangdongAITouchTechnologyCoLtdAITouchMember 2021-01-01 2021-12-31 0001742770 viot:FoshanXiaoxianHulianElectricAppliancesTechnologyCoLtdMember 2021-01-01 2021-12-31 0001742770 us-gaap:IPOMember viot:AmericanDepositarySharesMember 2018-09-24 2018-09-25 0001742770 us-gaap:IPOMember 2018-09-24 2018-09-25 0001742770 us-gaap:IPOMember viot:AmericanDepositarySharesMember 2018-09-25 0001742770 us-gaap:IPOMember 2018-08-23 0001742770 us-gaap:IPOMember 2018-08-22 2018-08-23 0001742770 us-gaap:CommonClassAMember us-gaap:IPOMember 2018-08-23 0001742770 us-gaap:CommonClassBMember us-gaap:IPOMember 2018-08-23 0001742770 viot:DesignatedCommonStockMember us-gaap:IPOMember 2018-08-23 0001742770 us-gaap:CommonClassAMember us-gaap:IPOMember 2018-08-22 2018-08-23 0001742770 us-gaap:CommonClassBMember us-gaap:IPOMember 2018-08-22 2018-08-23 0001742770 us-gaap:CommonClassBMember viot:RedBetterLimitedMember 2018-09-24 0001742770 us-gaap:CommonClassBMember viot:ViomiLimitedMember 2018-09-24 0001742770 viot:FoshanViomiAndBeijingViomiMember 2021-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-01-01 2020-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:RelatedPartyAndThirdPartyMember 2019-01-01 2019-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:RelatedPartyAndThirdPartyMember 2020-01-01 2020-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:RelatedPartyAndThirdPartyMember 2021-01-01 2021-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-01-01 2019-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:ThirdPartyMember 2019-01-01 2019-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:ThirdPartyMember 2020-01-01 2020-12-31 0001742770 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember viot:ThirdPartyMember 2021-01-01 2021-12-31 0001742770 viot:VariableInterestEntityToEquitySubsidiariesMember 2020-01-01 2020-12-31 0001742770 viot:VariableInterestEntityToEquitySubsidiariesMember 2021-01-01 2021-12-31 0001742770 viot:VariableInterestEntityToVariableInterestEntityPrimaryBeneficiaryAndSubsidiariesMember 2020-01-01 2020-12-31 0001742770 viot:VariableInterestEntityToVariableInterestEntityPrimaryBeneficiaryAndSubsidiariesMember 2021-01-01 2021-12-31 0001742770 us-gaap:ComputerEquipmentMember srt:MinimumMember 2021-01-01 2021-12-31 0001742770 us-gaap:ComputerEquipmentMember srt:MaximumMember 2021-01-01 2021-12-31 0001742770 us-gaap:VehiclesMember 2021-01-01 2021-12-31 0001742770 us-gaap:ComputerEquipmentMember srt:MinimumMember 2021-12-31 0001742770 us-gaap:ComputerEquipmentMember srt:MaximumMember 2021-12-31 0001742770 us-gaap:VehiclesMember 2021-12-31 0001742770 us-gaap:ComputerSoftwareIntangibleAssetMember srt:MinimumMember 2021-01-01 2021-12-31 0001742770 us-gaap:ComputerSoftwareIntangibleAssetMember srt:MaximumMember 2021-01-01 2021-12-31 0001742770 us-gaap:LicenseMember srt:MinimumMember 2021-01-01 2021-12-31 0001742770 us-gaap:LicenseMember srt:MaximumMember 2021-01-01 2021-12-31 0001742770 us-gaap:AccountingStandardsUpdate201602Member 2018-12-31 0001742770 viot:SalesToXiaomiMember 2019-01-01 2019-12-31 0001742770 viot:SalesToXiaomiMember 2020-01-01 2020-12-31 0001742770 viot:SalesToXiaomiMember 2021-01-01 2021-12-31 0001742770 viot:SalesToXiaomiMember viot:XiaomiBrandedProductsMember 2019-01-01 2019-12-31 0001742770 viot:SalesToXiaomiMember viot:XiaomiBrandedProductsMember 2020-01-01 2020-12-31 0001742770 viot:SalesToXiaomiMember viot:XiaomiBrandedProductsMember 2021-01-01 2021-12-31 0001742770 viot:SalesToXiaomiMember viot:ViomiBrandedProductsMember 2019-01-01 2019-12-31 0001742770 viot:SalesToXiaomiMember viot:ViomiBrandedProductsMember 2020-01-01 2020-12-31 0001742770 viot:SalesToXiaomiMember viot:ViomiBrandedProductsMember 2021-01-01 2021-12-31 0001742770 viot:SalesToXiaomiMember viot:RenderingOfServicesMember 2019-01-01 2019-12-31 0001742770 viot:SalesToXiaomiMember viot:RenderingOfServicesMember 2020-01-01 2020-12-31 0001742770 viot:SalesToThirdPartyCustomersMember 2019-01-01 2019-12-31 0001742770 viot:SalesToThirdPartyCustomersMember 2020-01-01 2020-12-31 0001742770 viot:SalesToThirdPartyCustomersMember 2021-01-01 2021-12-31 viot:Installment 0001742770 viot:XiaomiIncMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiIncMember 2020-01-01 2020-12-31 0001742770 viot:XiaomiIncMember 2019-01-01 2019-12-31 0001742770 2018-04-30 0001742770 2019-03-31 0001742770 viot:InstallationServicesMember 2019-01-01 2019-12-31 0001742770 viot:InstallationServicesMember 2020-01-01 2020-12-31 0001742770 viot:InstallationServicesMember 2021-01-01 2021-12-31 0001742770 viot:InstallationServicesMember 2021-12-31 0001742770 viot:MembershipServiceMember 2021-12-31 0001742770 viot:PRCContributionPlanMember 2019-01-01 2019-12-31 0001742770 viot:PRCContributionPlanMember 2020-01-01 2020-12-31 0001742770 viot:PRCContributionPlanMember 2021-01-01 2021-12-31 viot:Segment 0001742770 us-gaap:AccountingStandardsUpdate201613Member srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-01-01 0001742770 viot:CompanyAMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2020-12-31 0001742770 viot:CompanyBMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2020-12-31 0001742770 viot:CompanyAMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2020-01-01 2020-12-31 0001742770 viot:CompanyBMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2020-01-01 2020-12-31 0001742770 viot:CompanyAMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2021-12-31 0001742770 viot:CompanyBMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2021-12-31 0001742770 viot:CompanyAMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2021-01-01 2021-12-31 0001742770 viot:CompanyBMember viot:AccountsAndNotesReceivableMember us-gaap:CreditConcentrationRiskMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiIncMember us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2020-12-31 0001742770 viot:XiaomiIncMember us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2020-01-01 2020-12-31 0001742770 viot:XiaomiIncMember us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2021-12-31 0001742770 viot:XiaomiIncMember us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiIncMember viot:OtherReceivablesMember us-gaap:CreditConcentrationRiskMember 2020-12-31 0001742770 viot:XiaomiIncMember viot:OtherReceivablesMember us-gaap:CreditConcentrationRiskMember 2020-01-01 2020-12-31 0001742770 viot:XiaomiIncMember viot:OtherReceivablesMember us-gaap:CreditConcentrationRiskMember 2021-12-31 0001742770 viot:XiaomiIncMember viot:OtherReceivablesMember us-gaap:CreditConcentrationRiskMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiIncMember us-gaap:SalesRevenueNetMember us-gaap:RevenueFromRightsConcentrationRiskMember 2019-01-01 2019-12-31 0001742770 viot:XiaomiIncMember us-gaap:SalesRevenueNetMember us-gaap:RevenueFromRightsConcentrationRiskMember 2020-01-01 2020-12-31 0001742770 viot:XiaomiIncMember us-gaap:SalesRevenueNetMember us-gaap:RevenueFromRightsConcentrationRiskMember 2021-01-01 2021-12-31 0001742770 viot:ViomiBrandedProductsMember viot:ContractWithXiaomiMember 2019-01-01 2019-12-31 0001742770 viot:ViomiBrandedProductsMember viot:ContractWithXiaomiMember 2020-01-01 2020-12-31 0001742770 viot:ViomiBrandedProductsMember viot:ContractWithXiaomiMember 2021-01-01 2021-12-31 0001742770 currency:CNY 2020-12-31 0001742770 currency:CNY 2021-12-31 0001742770 currency:USD 2020-12-31 0001742770 currency:USD 2021-12-31 0001742770 us-gaap:ConstructionInProgressMember 2021-12-31 0001742770 us-gaap:ComputerEquipmentMember 2020-12-31 0001742770 us-gaap:ComputerEquipmentMember 2021-12-31 0001742770 us-gaap:VehiclesMember 2020-12-31 0001742770 viot:SaleOfInternetOfThingsAtHomePortfolioMember 2019-01-01 2019-12-31 0001742770 viot:SaleOfHomeWaterSolutionsMember 2019-01-01 2019-12-31 0001742770 viot:SaleOfConsumablesMember 2019-01-01 2019-12-31 0001742770 viot:SaleOfSmallAppliancesAndOtherProductsMember 2019-01-01 2019-12-31 0001742770 us-gaap:ProductMember 2019-01-01 2019-12-31 0001742770 us-gaap:ServiceMember 2019-01-01 2019-12-31 0001742770 viot:SaleOfInternetOfThingsAtHomePortfolioMember 2020-01-01 2020-12-31 0001742770 viot:SaleOfHomeWaterSolutionsMember 2020-01-01 2020-12-31 0001742770 viot:SaleOfConsumablesMember 2020-01-01 2020-12-31 0001742770 viot:SaleOfSmallAppliancesAndOtherProductsMember 2020-01-01 2020-12-31 0001742770 us-gaap:ProductMember 2020-01-01 2020-12-31 0001742770 us-gaap:ServiceMember 2020-01-01 2020-12-31 0001742770 viot:SaleOfInternetOfThingsAtHomePortfolioMember 2021-01-01 2021-12-31 0001742770 viot:SaleOfHomeWaterSolutionsMember 2021-01-01 2021-12-31 0001742770 viot:SaleOfConsumablesMember 2021-01-01 2021-12-31 0001742770 viot:SaleOfSmallAppliancesAndOtherProductsMember 2021-01-01 2021-12-31 0001742770 us-gaap:ProductMember 2021-01-01 2021-12-31 0001742770 us-gaap:ServiceMember 2021-01-01 2021-12-31 0001742770 country:HK viot:HongKongIncomeTaxWithinTwoMillionMember 2021-01-01 2021-12-31 0001742770 country:HK viot:HongKongIncomeTaxBeyondTwoMillionMember 2021-01-01 2021-12-31 0001742770 viot:EnterpriseIncomeTaxMember country:CN 2021-01-01 2021-12-31 0001742770 viot:SubsidiariesAndVariableInterestEntitiesAndPredecessorOperationsMember country:CN 2021-01-01 2021-12-31 0001742770 viot:SubsidiariesAndVariableInterestEntitiesAndPredecessorOperationsMember country:CN 2020-01-01 2020-12-31 0001742770 viot:SubsidiariesAndVariableInterestEntitiesAndPredecessorOperationsMember country:CN 2019-01-01 2019-12-31 0001742770 viot:HighAndNewTechnologyEnterprisesMember country:CN 2021-01-01 2021-12-31 0001742770 country:CN 2020-01-01 2020-12-31 0001742770 country:CN 2019-01-01 2019-12-31 0001742770 country:CN 2018-01-01 2018-12-31 0001742770 country:CN us-gaap:EarliestTaxYearMember 2021-01-01 2021-12-31 0001742770 country:CN us-gaap:LatestTaxYearMember 2021-01-01 2021-12-31 0001742770 country:CN 2021-01-01 2021-12-31 0001742770 country:CN viot:ArrangementBetweenPRCAndHongKongSpecialAdministrativeRegionOnAvoidanceOfDoubleTaxationAndPreventionOfFiscalEvasionWithRespectToTaxesOnIncomeAndCapitalMember 2021-01-01 2021-12-31 0001742770 viot:HighAndNewTechnologyEnterprisesMember 2021-01-01 2021-12-31 0001742770 viot:HighAndNewTechnologyEnterprisesMember 2020-01-01 2020-12-31 0001742770 viot:HighAndNewTechnologyEnterprisesMember 2019-01-01 2019-12-31 0001742770 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2018-12-31 0001742770 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2019-12-31 0001742770 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2020-12-31 0001742770 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2019-01-01 2019-12-31 0001742770 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2020-01-01 2020-12-31 0001742770 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2021-01-01 2021-12-31 0001742770 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2021-12-31 0001742770 us-gaap:CommonClassAMember 2018-08-22 0001742770 us-gaap:CommonClassAMember 2017-12-31 0001742770 us-gaap:CommonClassAMember 2018-08-23 0001742770 us-gaap:IPOMember 2021-01-01 2021-12-31 0001742770 us-gaap:CommonClassAMember viot:KeyManagementFoundersMember 2018-09-24 0001742770 us-gaap:CommonClassAMember 2018-12-31 0001742770 us-gaap:CommonClassBMember 2018-12-31 0001742770 us-gaap:CommonClassAMember 2018-01-01 2018-12-31 0001742770 us-gaap:CommonClassAMember 2019-12-31 0001742770 us-gaap:CommonClassBMember 2019-12-31 0001742770 us-gaap:CommonClassAMember 2019-01-01 2019-12-31 0001742770 us-gaap:CommonClassAMember 2020-01-01 2020-12-31 0001742770 viot:AmericanDepositarySharesMember 2020-03-31 0001742770 viot:AmericanDepositarySharesMember 2020-01-01 2020-12-31 0001742770 viot:TwoThousandFifteenShareIncentivePlanMember 2015-09-17 2015-09-17 0001742770 viot:TwoThousandFifteenShareIncentivePlanMember 2015-09-17 0001742770 viot:TwoThousandEighteenShareIncentivePlanMember 2021-12-31 0001742770 viot:TwoThousandEighteenShareIncentivePlanMember 2020-01-01 2020-12-31 0001742770 viot:TwoThousandEighteenShareIncentivePlanMember 2021-01-01 2021-12-31 0001742770 viot:TwoThousandEighteenShareIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2020-01-01 2020-12-31 0001742770 viot:TwoThousandEighteenShareIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2021-01-01 2021-12-31 0001742770 viot:TwoThousandEighteenShareIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2020-01-01 2020-12-31 0001742770 viot:TwoThousandEighteenShareIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2021-01-01 2021-12-31 0001742770 srt:MinimumMember 2020-12-31 0001742770 srt:MinimumMember 2021-12-31 0001742770 srt:MaximumMember 2020-12-31 0001742770 srt:MaximumMember 2021-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2018-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2019-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2020-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2021-12-31 0001742770 viot:TwoThousandFifteenAndTwoThousandEighteenShareIncentivePlanMember 2018-01-01 2018-12-31 0001742770 viot:SunglowWealthHKLimitedMember 2021-12-31 0001742770 viot:FounderMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiMember 2021-01-01 2021-12-31 0001742770 viot:FoshanWanwuhulianTradeCoLimitedMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiMember viot:BusinessCorporationAgreementMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiMember viot:YoupinCommissionSalesAgreementMember 2021-01-01 2021-12-31 0001742770 viot:XiaomiMember 2020-12-31 0001742770 viot:XiaomiMember 2021-12-31 0001742770 viot:FoshanWanwuhulianTradeCoLimitedMember 2020-12-31 0001742770 viot:XiaomiMember 2019-01-01 2019-12-31 0001742770 viot:XiaomiMember 2020-01-01 2020-12-31 0001742770 viot:FoshanWanwuhulianTradeCoLimitedMember 2019-01-01 2019-12-31 0001742770 viot:FoshanWanwuhulianTradeCoLimitedMember 2020-01-01 2020-12-31 0001742770 us-gaap:FairValueInputsLevel2Member us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001742770 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001742770 us-gaap:FairValueInputsLevel2Member us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001742770 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001742770 2010-12-31

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 20-F

 

(Mark One)

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021.

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report_________________

For the transition period from__________to____________

Commission file number: 001-38649

Viomi Technology Co., Ltd

(Exact Name of Registrant as Specified in Its Charter)

 

N/A

(Translation of Registrant’s Name Into English)

 

Cayman Islands

(Jurisdiction of Incorporation or Organization)

Wansheng Square, Rm 1302 Tower C, Xingang East Road, Haizhu District

Guangzhou, Guangdong, 510220

People’s Republic of China

(Address of Principal Executive Offices)

Xiaoping Chen , Chief Executive Officer

Wansheng Square, Rm 1302 Tower C, Xingang East Road, Haizhu District

Guangzhou, Guangdong, 510220

People’s Republic of China

Phone: +86 20 8930 9496

Email: chenxp@viomi.com

(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading
Symbol

Name of Each Exchange On Which Registered

American depositary shares, each representing three Class A ordinary shares

VIOT

The Nasdaq Stock Market LLC

(The Nasdaq Global Select Market)

Class A ordinary shares, par value US$0.00001 per share*

The Nasdaq Stock Market LLC

(The Nasdaq Global Select Market)

*Not for trading, but only in connection with the listing on the Nasdaq Stock Market of American depositary shares.

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

(Title of Class)

 

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

As of December 31, 2021, there were 208,731,326 ordinary shares issued and outstanding, being the sum of (i) 105,516,779 Class A ordinary shares, par value US$0.00001 per share (excluding 13,813,185 Class A ordinary shares that were issued to our depositary bank and reserved for future grants under our share incentive plans), and (ii) 103,214,547 Class B ordinary shares, par value US$0.00001 per share.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes     No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes    No

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No


 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Emerging growth company

 

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.

†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.     Yes   No

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

 

U.S. GAAP

International Financial Reporting Standards as issued by the International Accounting Standards Board

Other

 

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.    Item 17     Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes     No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.   Yes     No

 

 


 

 

TABLE OF CONTENTS

 

INTRODUCTION

1

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

53

Item 4A.

UNRESOLVED STAFF COMMENTS

76

Item 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

77

Item 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

95

Item 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

102

Item 8.

FINANCIAL INFORMATION

104

Item 9.

THE OFFER AND LISTING

105

Item 10.

ADDITIONAL INFORMATION

105

Item 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

114

Item 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

115

Part II

117

Item 13.

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

117

Item 14.

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

117

Item 15.

CONTROLS AND PROCEDURES

117

Item 16A.

AUDIT COMMITTEE FINANCIAL EXPERT

119

Item 16B.

CODE OF ETHICS

119

Item 16C.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

119

Item 16D.

EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

119

Item 16E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

119

Item 16F.

CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

120

Item 16G.

CORPORATE GOVERNANCE

120

Item 16H.

MINE SAFETY DISCLOSURE

120

Item 16I.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

120

Part III

121

Item 17.

FINANCIAL STATEMENTS

121

Item 18.

FINANCIAL STATEMENTS

121

Item 19.

EXHIBITS

121

 

 

 

i


 

 

INTRODUCTION

Unless otherwise indicated and except where the context otherwise requires, references in this annual report on Form 20-F to:

 

“ADRs” are to the American depositary receipts that evidence our ADSs;

 

“ADSs” are to our American depositary shares, each of which represents three Class A ordinary shares of par value US$0.00001 each;

 

“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” refers to our Class A ordinary shares of par value US$0.00001 per share;

 

“Class B ordinary shares” refers to our Class B ordinary shares of par value US$0.00001 per share;

 

“household users” as of a specified date 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, or “things,” that can communicate with one another through the internet;

 

our “IoT @ Home platform” are to our ecosystem of innovative IoT-enabled smart home products, together with a suite of complementary consumable products and value-added businesses, powered by advanced AI, proprietary software and data analytics systems;

 

our “IoT-enabled smart home products” and our “IoT products” are to our portfolio of smart home products with internet or Bluetooth interconnectivity and communication capabilities, including our smart water purification systems, smart kitchen products and other smart products (such as smart water kettles);

 

“ordinary shares” are to our Class A and Class B ordinary shares, par value US$0.00001 per share;

 

“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” and “our” are to Viomi Technology Co., Ltd, our Cayman Islands holding company and its subsidiaries, and, in the context of describing our operations and consolidated financial information, our VIEs and the subsidiaries of our VIEs in China;

 

“our WFOE I” are to Lequan Technology (Beijing) Co., Ltd., or Lequan Technology;

 

“our WFOE II” are to Yunmi Hulian Technology (Guangdong) Co., Ltd., or Yunmi Hulian, and together with our WFOE I, “our WFOEs”;

 

“RMB” and “Renminbi” are to the legal currency of China;

 

“US$,” “U.S. dollars,” “$,” and “dollars” are to the legal currency of the United States; and

 

“Xiaomi” are to Xiaomi Corporation, an internet company and a principal shareholder of our Company as of the date of this annual report, and/or any of its affiliates.

1


 

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 mission and strategies;

 

our future business development, financial conditions and results of operations;

 

the expected growth of the IoT-enabled smart home products market and the home appliances market in China;

 

the expected development of our overseas business;

 

the expected growing 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 in our industry; and

 

relevant government policies and regulations relating to our industry or any aspect of our operations.

You should read this annual report and the documents that we refer to in this annual report and have filed as exhibits to this annual report completely and with the understanding that our actual future results may be materially different from what we expect. Other sections of this annual report discuss factors that could adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.

You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in this annual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

 

2


 

 

Part I

Item 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

Item 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

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 qualifications and 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 100%, 99.4% and 91.6% of our total revenues for the years ended December 31, 2019, 2020 and 2021, 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, Foshan Yunmi Electric Appliances Technology Co., Ltd., or Foshan Viomi and Beijing Yunmi Technology Co., Ltd., or Beijing Viomi. Investors in our ADSs are not purchasing equity interest in our VIEs in China but instead are purchasing equity interest in a holding company incorporated in the Cayman Islands.

A series of contractual agreements have been entered into by and among our WFOEs, our VIEs and their respective shareholders, including (i) shareholder voting proxy agreements and equity pledge agreements, which provide us with effective control over our VIEs in China, (ii) exclusive consultation and service agreements, which allow us to receive economic benefits from our VIEs in China, (iii) exclusive option agreements, which provide us with the option to purchase the equity interests in, and assets of, our VIEs, and (iv) equity pledge agreements, under which the shareholders of our VIEs have pledged 100% equity interests in our VIEs to our WFOEs to secure shareholders’ obligations under the exclusive option agreements, the shareholder voting proxy agreements and the equity pledge agreements. Terms contained in each set of contractual arrangements with our VIEs and their respective shareholders are substantially similar. For more details of these contractual arrangements, see “Item 4. Information on the Company—C. Organizational Structure—Contractual Arrangements with Our VIEs and Their Shareholders.”

However, the contractual arrangements may not be as effective as direct ownership in providing us with control over our VIEs and we may incur substantial costs to enforce the terms of the arrangements. All of the agreements under our contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in China. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes arising from these contracts would be resolved in accordance with PRC legal procedures. These arrangements have not been tested in arbitral tribunals or courts. The legal system in the PRC is not as developed as in some other jurisdictions, such as the United States, and the uncertainties involved in it could limit our ability to enforce these contractual arrangements. Further, there are very few precedents and little formal guidance as to how contractual arrangements in the context of a VIE should be interpreted or enforced under PRC law. There remain significant uncertainties regarding the ultimate outcome of such arbitration should legal action become necessary. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure—We rely on contractual arrangements with our VIEs and their respective shareholders for substantially all of our business operation, which may not be as effective as direct ownership in providing operation control” and “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure—Any failure by our VIEs or their shareholders to perform their obligations under our contractual arrangements with them would have a material and adverse effect on our business, financial condition and results of operations.”

There are also substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations and rules regarding the status of the rights of our Cayman Islands holding company with respect to its contractual arrangements with our VIEs and its nominee shareholders. It is uncertain whether any new PRC laws or regulations relating to VIE structures will be adopted or if adopted, what they would provide. If we or any of our VIEs is found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures. If the PRC government deems that our contractual arrangements with our VIEs do not comply with PRC regulatory restrictions on foreign

3


 

investment in the relevant industries, or if these regulations or the interpretation of existing regulations change or are interpreted differently in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. Our holding company, our WFOEs and VIEs, and investors of our company face uncertainty about potential future actions by the PRC government that could affect the enforceability of the contractual arrangements with our VIEs and, consequently, significantly affect the financial performance of our VIEs and their subsidiaries and our company as a whole. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure” and “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Uncertainties with respect to the PRC legal system and changes in laws and regulations in China could adversely affect us.”

We face various risks and uncertainties related to doing business in China. Our business operations are primarily conducted in China, and we are subject to complex and evolving PRC laws and regulations. For example, we face risks associated with regulatory approvals on offshore offerings, anti-monopoly regulatory actions, and oversight on cybersecurity and data privacy, as well as the lack of inspection by the Public Company Accounting Oversight Board, or the PCAOB, on our auditors, which may impact our ability to conduct certain businesses, accept foreign investments, or list on a United States or other foreign exchange. On December 16, 2021, the PCAOB issued a report to notify the SEC its determinations that it is unable to inspect or investigate completely registered public accounting firms headquartered in Mainland China, and identifies the registered public accounting firms in Mainland China that are subject to such determinations. Our auditor is identified by the PCAOB and is subject to the determination. Under the Holding Foreign Companies Accountable Act, if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive years beginning in 2021, the SEC shall prohibit our shares or ADSs from being traded on a national securities exchange or in the over the counter trading market in the U.S. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. These risks could result in a material adverse change in our operations and the value of our ADSs, significantly limit or completely hinder our ability to continue to offer securities to investors, or cause the value of such securities to significantly decline or become worthless. For a detailed description of risks related to doing business in China, please refer to risks disclosed under “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China.”

PRC government’s significant authority in regulating our operations and its oversight and control over offerings conducted overseas by, and foreign investment in, China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Implementation of industry-wide regulations in this nature may cause the value of such securities to significantly decline or become worthless. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The PRC government’s significant oversight and discretion over our business operation could result in a material adverse change in our operations and the value of our ADSs.”

Risks and uncertainties arising from the legal system in China, including risks and uncertainties regarding the enforcement of laws and quickly evolving rules and regulations in China, could result in a material adverse change in our operations and the value of our ADSs. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Uncertainties with respect to the PRC legal system and changes in laws and regulations in China could adversely affect us.”

Cash Flows through Our Organization

Viomi Technology Co., Ltd is a holding company with no operations of its own. We conduct our operations in China primarily through our subsidiaries and VIEs in China. As a result, although other means are available for us to obtain financing at the holding company level, Viomi Technology Co., Ltd’s ability to pay dividends to the shareholders and to service any debt it may incur may depend upon dividends paid by our PRC subsidiaries and license and service fees paid by our VIEs.

If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to Viomi Technology Co., Ltd. In addition, our PRC subsidiaries are permitted to pay dividends to Viomi Technology Co., Ltd only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Further, our PRC subsidiaries and VIEs and their subsidiaries are required to make appropriations to certain statutory reserve funds or may make appropriations to certain discretionary funds, which are not distributable as cash dividends except in the event of a solvent liquidation of the companies. For more details, see “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Holding Company Structure.” For risks relating to the fund flows of our operations in China, see “Item 3. Key Information—Risk Factors—Risks Related to Our Corporate Structure—We may rely on dividends paid by our PRC subsidiaries to fund any cash and financing requirements we may have. Any limitation on the ability of our PRC subsidiaries to pay dividends to us could have a material adverse effect on our ability to conduct our business and to pay dividends to holders of the ADSs and our ordinary shares.”

Under PRC laws and regulations, our PRC subsidiaries and our VIEs are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets to us. Remittance of dividends by our PRC subsidiaries out of Mainland China is also subject to examination by the banks designated by the State Administration of Foreign Exchange, or SAFE, and declaration and payment of withholding tax. The amounts restricted include the paid-up capital and the statutory reserve funds of our PRC subsidiaries and the net assets of our consolidated variable interest entities in which we have no legal

4


 

ownership. Our PRC subsidiaries, our VIEs and their subsidiaries generate their revenue primarily in Renminbi, which is not freely convertible into other currencies. As a result, any restriction on currency exchange may limit the ability of our PRC subsidiaries to pay dividends to us. In addition, under the Enterprise Income Tax Law of the PRC, or the EIT Law, and its implementation rules, undistributed profits earned by foreign-invested enterprises, or FIEs, prior to January 1, 2008 are exempted from any withholding tax, while profits of a FIE generated in or after 2008 that are distributed to its immediate holding company outside Mainland China are subject to withholding tax at a rate of 10%, unless the foreign holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a reduced rate of withholding tax. For example, a holding company in Hong Kong, subject to approval of the PRC local tax authority, will be eligible to a 5% withholding tax rate under the Arrangement Between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital if such holding company is considered to be a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC FIE distributing the dividends. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to withholding tax at a rate of 10%. See also “Item 3. Key Information—D. Risk Factors— Risks Related to Doing Business in China— Governmental control of currency conversion may limit our ability to utilize our cash balance effectively and affect the value of your investment,” and “Item 5. Operating And Financial Review And Prospects—B. Liquidity and Capital Resources—Holding Company Structure.”

Under PRC law, Viomi Technology Co., Ltd and its offshore subsidiaries may provide funding to our PRC subsidiaries only through capital contributions or loans, and to our VIEs only through loans, subject to satisfaction of applicable government registration and approval requirements. In the years ended December 31, 2019, 2020 and 2021, Viomi Technology Co., Ltd and its offshore subsidiaries extended loans with outstanding principal amount of RMB383.7 million, RMB358.9 million and RMB350.7 million (US$55.0 million), respectively, to our VIEs.

Our VIEs may transfer cash to our relevant WFOEs by paying service fees according to the exclusive consultation and service agreements. Our VIEs agree in the respective exclusive consultation and service agreements to pay our WFOEs an annual service fee at an amount that is equal to 100% of their respective annual net income or the amount which is adjusted in accordance with our relevant WFOE’s sole discretion for the relevant year as well as the mutually agreed amount for certain other technical services, both of which should be paid within three months after the end of the relevant calendar year. Our WFOEs have the exclusive ownership of all the intellectual property rights created as a result of the performance of the exclusive consultation and service agreement, to the extent permitted by applicable PRC laws. In 2019, 2020 and 2021, our WFOE did not collect service fees from our VIEs in China under the exclusive consultation and service agreements.

For asset/cash flows other than the cash flows discussed above transferred through our organization in the years ended December 31, 2019, 2020 and 2021, please refer to “Item 3. Key Information—A. Selected Financial Data—Selected Financial Information Related to the VIEs—Selected Condensed Consolidated Cash Flows Data.”

In the year ended December 31, 2019, 2020 and 2021, no dividends or distributions were made to U.S. investors other than the special cash dividend of US$0.0333 per ordinary share (or US$0.1 per ADS) on our outstanding ordinary shares declared by our board of directors on March 18, 2019. We do not intend to have any of its subsidiaries located in PRC distribute any undistributed earnings of such subsidiaries in the foreseeable future, but rather expects that such earnings will be reinvested by such subsidiaries in their operations or transferred by such subsidiaries to our VIEs and their subsidiaries for their operations.

For the years ended December 31, 2019, 2020 and 2021, no dividend or distribution was made to Viomi Technology Co., Ltd or its offshore subsidiaries by our PRC subsidiaries. Accordingly, no withholding tax was recorded in the corresponding period. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Dividend Policy.” For PRC and United States federal income tax considerations of an investment in our ADSs, see “Item 10. Additional Information—E. Taxation.”

For purposes of illustration, the following discussion reflects the hypothetical taxes that might be required to be paid within Mainland China, assuming that: (i) we have taxable earnings, and (ii) we determine to pay a dividend in the future:

 

 

 

Taxation Scenario(1)

 

 

 

(Statutory Tax and Standard Rates)

 

Hypothetical pre-tax earnings(2)

 

 

100

%

Tax on earnings at statutory rate of 25%(3)

 

 

(25

)%

Net earnings available for distribution

 

 

75

%

Withholding tax at standard rate of 10%(4)

 

 

(7.5

)%

Net distribution to Parent/Shareholders

 

 

67.5

%

 

Notes:

(1)

For purposes of this example, the tax calculation has been simplified. The hypothetical book pre-tax earnings amount, not considering timing differences, is assumed to equal taxable income in China.

5


 

(2)

Under the terms of the contractual arrangements between our PRC subsidiaries, our VIEs and shareholders of our VIEs, our PRC subsidiaries may charge our VIEs for services provided. These fees shall be recognized as expenses of our VIEs, with a corresponding amount as service income by our PRC subsidiaries and eliminate in consolidation. For income tax purposes, our PRC subsidiaries and VIEs file income tax returns on a separate company basis. The fees paid are recognized as a tax deduction by our VIEs and as income by our PRC subsidiaries and are tax neutral.

(3)

Certain of our subsidiaries and VIEs qualifies for a 15% preferential income tax rate in China. However, such rate is subject to qualification, is temporary in nature, and may not be available in a future period when distributions are paid. For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate would be effective.

(4)

The EIT Law imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise, or FIE, to its immediate holding company outside of Mainland China. A lower withholding income tax rate of 5% is applied if the FIE’s immediate holding company is registered in Hong Kong or other jurisdictions that have a tax treaty arrangement with Mainland China, subject to a qualification review at the time of the distribution. For purposes of this hypothetical example, the table above assumes a maximum tax scenario under which the full withholding tax would be applied.

The table above has been prepared under the assumption that all profits of our VIEs will be distributed as fees to our PRC subsidiaries under tax neutral contractual arrangements. If, in the future, the accumulated earnings of our VIEs exceed the fees paid to our PRC subsidiaries (or if the current and contemplated fee structure between the intercompany entities is determined to be non-substantive and disallowed by Chinese tax authorities), our VIEs could, as a matter of last resort, make a non-deductible transfer to our PRC subsidiaries for the amounts of the stranded cash in our VIEs. This would result in such transfer being non-deductible expenses for our VIEs but still taxable income for the PRC subsidiaries. Such a transfer and the related tax burdens would reduce our after-tax income to approximately 50.6% of the pre-tax income. Our management believes that there is only a remote possibility that this scenario would happen.

Permissions Required from the PRC Authorities for Our Operations

We conduct our business primarily through our subsidiaries and VIEs and their subsidiaries in China. Our operations in China are governed by PRC laws and regulations. As of the date of this annual report, our PRC subsidiaries and VIEs and their subsidiaries have obtained the requisite licenses and permits from the PRC government authorities that are material for the business operations of our holding company, our PRC subsidiaries and our VIEs in China, including, among others, the business licenses, the hygiene licenses and the VATS License. Given the uncertainties of interpretation and implementation of relevant laws and regulations and the enforcement practice by relevant government authorities, we may be required to obtain additional licenses, permits, filings or approvals for the functions and services of our platform in the future. For more detailed information, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—We may be adversely affected by the complexity, uncertainties and changes in PRC regulation of internet-related businesses and companies, and any lack of requisite approvals, licenses or permits applicable to our business may have a material adverse effect on our business and results of operations.”

Furthermore, we and our VIEs may be required to obtain permissions from the China Securities Regulatory Commission, or the CSRC, and may be required to go through cybersecurity review by the Cyberspace Administration of China, or the CAC, in case of any future issuance of securities to foreign investors. Any failure to obtain or delay in obtaining such approval or completing such procedures would subject us to sanctions by the CSRC, CAC or other PRC regulatory authorities. These regulatory authorities may impose fines and penalties on our operations in China, limit our ability to pay dividends outside of China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from our offshore offerings into China or take other actions that could materially and adversely affect our business, financial condition, results of operations, and prospects, as well as the trading price of our ADSs. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The PRC government’s significant oversight and discretion over our business operation could result in a material adverse change in our operations and the value of our ADSs,” and “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The approval of and filing with the CSRC or other PRC government authorities may be required if we were to conduct offshore offerings in the future, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such filing.”

A.

Selected Financial Data

Our Selected Consolidated Financial Data

The following selected consolidated statements of operations and selected consolidated statements of cash flows data for the years ended December 31, 2019, 2020 and 2021 and selected consolidated balance sheets data as of December 31, 2020 and 2021 have been derived from our audited consolidated financial statements, which are included in this annual report beginning on page F-1. Our selected consolidated balance sheets data as of December 31, 2017, 2018 and 2019 and the selected consolidated statements of operations and selected consolidated statements of cash flows data for 2017 and 2018 have been derived from our audited consolidated financial statements not included in this annual report. Our consolidated financial statements are prepared and presented in accordance with U.S. GAAP. Our historical results do not necessarily indicate results expected for any future periods. You should read this Selected Consolidated Financial Data and Selected Operating Data section together with our

6


 

consolidated financial statements and the related notes in conjunction with “Item 5. Operating and Financial Review and Prospects” below.

The following table presents our selected consolidated statements of comprehensive income data for the years ended December 31, 2017, 2018, 2019, 2020 and 2021.

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(in thousands, except for share and per share data)

 

Selected Consolidated Statements of Comprehensive Income Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues(1)

 

 

873,219

 

 

 

2,561,229

 

 

 

4,647,513

 

 

 

5,825,624

 

 

 

5,303,835

 

 

 

832,288

 

Cost of revenues

 

 

(598,036

)

 

 

(1,843,432

)

 

 

(3,565,109

)

 

 

(4,742,668

)

 

 

(4,105,767

)

 

 

(644,285

)

Gross profit

 

 

275,183

 

 

 

717,797

 

 

 

1,082,404

 

 

 

1,082,956

 

 

 

1,198,068

 

 

 

188,003

 

Operating expenses(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses(2)

 

 

(60,749

)

 

 

(124,230

)

 

 

(204,942

)

 

 

(265,680

)

 

 

(311,786

)

 

 

(48,926

)

Selling and marketing expenses(2)

 

 

(95,296

)

 

 

(379,554

)

 

 

(529,212

)

 

 

(597,176

)

 

 

(751,011

)

 

 

(117,850

)

General and administrative expenses(2)

 

 

(15,818

)

 

 

(135,532

)

 

 

(73,061

)

 

 

(68,914

)

 

 

(97,730

)

 

 

(15,336

)

Total operating expenses

 

 

(171,863

)

 

 

(639,316

)

 

 

(807,215

)

 

 

(931,770

)

 

 

(1,160,527

)

 

 

(182,112

)

Other income

 

 

2,236

 

 

 

1,829

 

 

 

35,880

 

 

 

32,795

 

 

 

27,128

 

 

 

4,257

 

Income from operations

 

 

105,556

 

 

 

80,310

 

 

 

311,069

 

 

 

183,981

 

 

 

64,669

 

 

 

10,148

 

Interest income and short-term investment income

 

 

2,402

 

 

 

8,846

 

 

 

26,109

 

 

 

31,968

 

 

 

28,589

 

 

 

4,486

 

Income before income tax expenses

 

 

107,958

 

 

 

89,411

 

 

 

339,020

 

 

 

217,767

 

 

 

94,630

 

 

 

14,849

 

Income tax expenses

 

 

(14,718

)

 

 

(24,061

)

 

 

(45,190

)

 

 

(43,321

)

 

 

(5,739

)

 

 

(901

)

Net income

 

 

93,240

 

 

 

65,350

 

 

 

293,830

 

 

 

174,446

 

 

 

88,891

 

 

 

13,948

 

Net income attributable to the Company

 

 

93,240

 

 

 

65,358

 

 

 

292,170

 

 

 

173,324

 

 

 

88,605

 

 

 

13,903

 

Net  income attributable to ordinary shareholders of the Company

 

 

8,033

 

 

 

50,544

 

 

 

292,170

 

 

 

173,324

 

 

 

88,605

 

 

 

13,903

 

Net income per share attributable to ordinary shareholders of the Company:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ordinary share—basic

 

 

0.39

 

 

 

0.70

 

 

 

1.40

 

 

 

0.83

 

 

 

0.42

 

 

 

0.07

 

Net income per ordinary share—diluted

 

 

0.31

 

 

 

0.64

 

 

 

1.35

 

 

 

0.80

 

 

 

0.40

 

 

 

0.06

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares—basic

 

 

20,684,681

 

 

 

71,771,033

 

 

 

208,156,507

 

 

 

208,812,049

 

 

 

209,551,821

 

 

 

209,551,821

 

Ordinary shares—diluted

 

 

25,579,806

 

 

 

79,590,780

 

 

 

215,855,577

 

 

 

215,623,773

 

 

 

220,735,997

 

 

 

220,735,997

 

 

Notes:

(1)

Included RMB739.5 million, RMB1,311.9 million, RMB2,112.2 million, RMB2,889.4 million and RMB2,295.6 million (US$360.2 million) from sales to Xiaomi for the year ended December 31, 2017, 2018, 2019, 2020 and 2021, respectively.

7


 

(2)

Share-based compensation expenses were allocated as follows:

 

 

 

For the Year ended December 31,

 

 

 

2017

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(in thousands)

 

General and administrative expenses

 

 

3,303

 

 

 

93,718

 

 

 

7,282

 

 

 

11,303

 

 

 

9,130

 

 

 

1,433

 

Research and development expenses

 

 

1,903

 

 

 

14,476

 

 

 

23,564

 

 

 

49,996

 

 

 

32,609

 

 

 

5,117

 

Selling and marketing expenses

 

 

615

 

 

 

8,417

 

 

 

12,322

 

 

 

10,904

 

 

 

5,666

 

 

 

889

 

Total

 

 

5,821

 

 

 

116,611

 

 

 

43,168

 

 

 

72,203

 

 

 

47,405

 

 

 

7,439

 

 

The following table presents our selected consolidated balance sheet data as of December 31, 2017, 2018, 2019, 2020 and 2021.

 

 

 

As of December 31,

 

 

 

2017

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(in thousands)

 

Selected Consolidated Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

279,952

 

 

 

940,298

 

 

 

972,438

 

 

 

504,108

 

 

 

586,955

 

 

 

92,106

 

Amounts receivable from a related party, net

 

 

249,548

 

 

 

260,984

 

 

 

707,947

 

 

 

609,094

 

 

 

320,939

 

 

 

50,362

 

Short-term investments

 

 

 

 

 

168,993

 

 

 

316,201

 

 

 

696,051

 

 

 

828,867

 

 

 

130,067

 

Total current assets

 

 

665,431

 

 

 

1,902,728

 

 

 

2,907,615

 

 

 

2,931,899

 

 

 

2,945,773

 

 

 

462,256

 

Total assets

 

 

671,565

 

 

 

1,923,068

 

 

 

3,022,473

 

 

 

3,179,519

 

 

 

3,276,714

 

 

 

514,188

 

Total current liabilities

 

 

432,385

 

 

 

851,685

 

 

 

1,632,840

 

 

 

1,634,107

 

 

 

1,594,528

 

 

 

250,216

 

Total liabilities

 

 

432,845

 

 

 

852,203

 

 

 

1,648,026

 

 

 

1,649,200

 

 

 

1,625,787

 

 

 

255,121

 

Total mezzanine equity

 

 

407,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-IPO Class A ordinary shares

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A ordinary shares

 

 

 

 

 

5

 

 

 

6

 

 

 

6

 

 

 

6

 

 

 

1

 

Class B ordinary shares

 

 

 

 

 

7

 

 

 

6

 

 

 

6

 

 

 

6

 

 

 

1

 

Total shareholders’ (deficit) equity

 

 

(169,208

)

 

 

1,070,865

 

 

 

1,374,447

 

 

 

1,530,319

 

 

 

1,650,927

 

 

 

259,067

 

 

The following table presents our selected consolidated cash flow data for the years ended December 31, 2017, 2018, 2019, 2020 and 2021.

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(in thousands)

 

Selected Consolidated Cash Flow Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

 

123,906

 

 

 

222,269

 

 

 

245,484

 

 

 

185,196

 

 

 

308,968

 

 

 

48,485

 

Net cash used in investing activities

 

 

(1,234

)

 

 

(151,821

)

 

 

(268,956

)

 

 

(433,083

)

 

 

(265,321

)

 

 

(41,636

)

Net cash provided by/(used in) financing activities

 

 

2,671

 

 

 

604,975

 

 

 

48,542

 

 

 

(146,375

)

 

 

17,133

 

 

 

2,687

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(2,321

)

 

 

14,473

 

 

 

8,087

 

 

 

(34,034

)

 

 

(12,703

)

 

 

(1,993

)

Net increase/(decrease) in cash and cash equivalents and restricted cash

 

 

123,022

 

 

 

689,896

 

 

 

33,157

 

 

 

(428,296

)

 

 

48,077

 

 

 

7,543

 

Cash and cash equivalents and restricted cash at the beginning of the year

 

 

156,930

 

 

 

279,952

 

 

 

969,848

 

 

 

1,003,005

 

 

 

574,709

 

 

 

90,186

 

Cash and cash equivalents and restricted cash at the end of the year

 

 

279,952

 

 

 

969,848

 

 

 

1,003,005

 

 

 

574,709

 

 

 

622,786

 

 

 

97,729

 

 

We present our financial results in RMB. We make no representation that any RMB or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or RMB, as the case may be, at any particular rate, or at all. The PRC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of RMB into foreign exchange and through restrictions on foreign trade. Unless otherwise noted, all translations from Renminbi to U.S. dollars and

8


 

from U.S. dollars to Renminbi in this annual report were made at a rate of RMB6.3726 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 30, 2021.

Selected Financial Information Related to the VIEs

Set forth below are the condensed consolidated schedule showing the financial position as of December 31, 2019, 2020 and 2021, and results of operations and cash flows for the years ended December 31, 2019, 2020 and 2021 for (i) Viomi Technology Co., Ltd, or the Company; (ii) our WFOEs (which are the primary beneficiary of the VIEs) and WFOEs’ subsidiary; (iii) our other equity subsidiaries (excluding our WFOEs and their subsidiary); (iv) the VIEs and their subsidiaries; (v) eliminating adjustments; and (vi) consolidated totals.

Selected Condensed Consolidated Statements of Operations Data

 

 

 

For the Year Ended December 31, 2021

 

 

 

The

Company

 

 

Equity

Subsidiaries

 

 

Primary

Beneficiary

of VIEs and

its

Subsidiary

 

 

VIEs and

their

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

 

 

(RMB in thousands)

 

Inter-company revenues (1)

 

 

 

 

 

1,217,576

 

 

 

241,923

 

 

 

131,379

 

 

 

(1,590,878

)

 

 

 

Related-party and third-party revenues

 

 

 

 

 

444,421

 

 

 

 

 

 

4,859,414

 

 

 

 

 

 

5,303,835

 

Total revenues

 

 

 

 

 

1,661,997

 

 

 

241,923

 

 

 

4,990,793

 

 

 

(1,590,878

)

 

 

5,303,835

 

Cost of revenues

 

 

 

 

 

(1,304,955

)

 

 

(225,445

)

 

 

(4,162,277

)

 

 

1,586,910

 

 

 

(4,105,767

)

Research and development expenses (2)

 

 

 

 

 

(66,340

)

 

 

(26,497

)

 

 

(222,065

)

 

 

3,116

 

 

 

(311,786

)

Selling and marketing expenses