Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38649 |
Entity Registrant Name | Viomi Technology Co., Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Wansheng Square, Rm 1302 Tower C |
Entity Address, Address Line Two | Xingang East Road |
Entity Address, Address Line Three | Haizhu District |
Entity Address, City or Town | Guangdong |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510220 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Bankruptcy Proceedings, Reporting Current | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Guangzhou, the People’s Republic of China |
Auditor Firm ID | 1424 |
Entity Central Index Key | 0001742770 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | Wansheng Square, Rm 1302 Tower C |
Entity Address, Address Line Two | Xingang East Road |
Entity Address, Address Line Three | Haizhu District |
Entity Address, City or Town | Guangdong |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510220 |
Contact Personnel Name | Xiaoping Chen |
City Area Code | 20 |
Local Phone Number | 8930 9496 |
Contact Personnel Email Address | chenxp@viomi.com |
Ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 204,667,094 |
Class A Ordinary Shares | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 101,902,544 |
Entity Common Stock, Shares Outstanding Excluding Shares Issued to Depositary Bank and Reserved for Future Grants | 12,831,249 |
Class B Ordinary Shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 102,764,550 |
ADR | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares, each representing three Class A ordinary shares |
Trading Symbol | VIOT |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 491,715 | $ 69,257 | ¥ 737,139 |
Restricted cash | 144,640 | 20,372 | 76,070 |
Short-term deposits | 365,838 | 51,527 | 171,541 |
Short-term investments | 70,369 | 9,911 | 197,058 |
Other receivables from related parties (net of allowance of RMB19 and nil as of December 31, 2022 and December 31, 2023, respectively ) | 224 | 32 | 25,021 |
Inventories | 442,219 | 62,285 | 502,291 |
Prepaid expenses and other current assets | 186,672 | 26,292 | 183,708 |
Long-term deposits-current portion | 30,000 | 4,225 | |
Total current assets | 2,282,702 | 321,512 | 2,494,977 |
Non-current assets | |||
Prepaid expenses and other non-current assets | 18,824 | 2,651 | 22,856 |
Property, plant and equipment, net | 342,985 | 48,308 | 236,432 |
Deferred tax assets | 10,990 | 1,548 | 12,660 |
Intangible assets, net | 10,901 | 1,535 | 13,671 |
Right-of-use assets, net | 4,971 | 700 | 14,649 |
Land use rights, net | 59,177 | 8,335 | 60,449 |
Long-term deposits-non-current portion | 0 | 30,000 | |
Long-term investment | 23,838 | 3,358 | |
Total non-current assets | 471,686 | 66,435 | 390,717 |
Total assets | 2,754,388 | 387,947 | 2,885,694 |
Current liabilities | |||
Accounts and notes payable (including accounts and notes payable of the consolidated variable interest entities and their subsidiaries ("VIEs") without recourse to the Company of RMB377,839 and RMB348,876 as of December 31, 2022 and 2023, respectively) | 666,333 | 93,851 | 844,058 |
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Company of RMB81,434 and RMB101,513 as of December 31, 2022 and 2023, respectively) | 131,338 | 18,499 | 118,369 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Company of RMB11,548 and RMB14,595 as of December 31, 2022 and 2023, respectively) | 18,468 | 2,601 | 11,548 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Company of RMB223,080 and RMB152,613 as of December 31, 2022 and 2023, respectively) | 302,214 | 42,565 | 308,845 |
Short-term borrowing (including short-term borrowing of the consolidated VIEs without recourse to the Company of nil and RMB100,000 as of December 31, 2022 and 2023, respectively) | 100,000 | 14,085 | |
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Company of RMB16,151 and RMB17,349 as of December 31, 2022 and 2023, respectively) | 17,779 | 2,504 | 16,674 |
Lease liabilities due within one year (including lease liabilities due within one year of the consolidated VIEs without recourse to the Company of RMB4,138 and RMB2,019 as of December 31, 2022 and 2023, respectively) | 2,410 | 339 | 7,233 |
Long-term borrowing-current portion | 28,029 | 3,948 | 20,215 |
Total current liabilities | 1,266,571 | 178,392 | 1,326,942 |
Non-current liabilities | |||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Company of RMB8,245 and RMB12,766 as of December 31, 2022 and 2023, respectively) | 12,766 | 1,799 | 8,245 |
Long-term borrowing | 128,701 | 18,127 | 114,552 |
Lease liabilities (including lease liabilities of the consolidated VIEs without recourse to the Company of RMB6,040 and RMB1,503 as of December 31, 2022 and 2023, respectively) | 2,713 | 382 | 6,792 |
Total non-current liabilities | 144,180 | 20,308 | 129,589 |
Total liabilities | 1,410,751 | 198,700 | 1,456,531 |
Commitments and contingencies (Note 21) | |||
Shareholders' equity | |||
Treasury stock | (81,143) | (11,429) | (74,703) |
Additional paid-in capital | 1,353,634 | 190,655 | 1,357,397 |
Retained earnings | 89,711 | 12,636 | 174,385 |
Accumulated other comprehensive loss | (14,328) | (2,018) | (24,335) |
Total equity attributable to shareholders of Viomi Technology Co., Ltd (the "Company") | 1,347,886 | 189,846 | 1,432,756 |
Non-controlling interests | (4,249) | (599) | (3,593) |
Total shareholders' equity | 1,343,637 | 189,247 | 1,429,163 |
Total liabilities and shareholders' equity | 2,754,388 | 387,947 | 2,885,694 |
Class A Ordinary Shares | |||
Shareholders' equity | |||
Ordinary shares, value | 6 | 1 | 6 |
Class B Ordinary Shares | |||
Shareholders' equity | |||
Ordinary shares, value | 6 | 1 | 6 |
Third parties | |||
Current assets | |||
Accounts receivable | 226,802 | 31,944 | 241,652 |
Related party | |||
Current assets | |||
Accounts receivable | 324,223 | $ 45,667 | 360,497 |
Current liabilities | |||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Company of RMB11,548 and RMB14,595 as of December 31, 2022 and 2023, respectively) | ¥ 18,468 | ¥ 11,548 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares |
Accounts and notes payable | ¥ 666,333 | ¥ 844,058 |
Advances from customers | 131,338 | 118,369 |
Amounts due to related parties | 18,468 | 11,548 |
Accrued expenses and other liabilities-current portion | 302,214 | 308,845 |
Short-term borrowing | 100,000 | |
Income tax payables | 17,779 | 16,674 |
Lease liabilities, current | 2,410 | 7,233 |
Accrued expenses and other liabilities non current | 12,766 | 8,245 |
Lease liabilities, non current | 2,713 | 6,792 |
VIEs | ||
Accounts and notes payable | 348,876 | 377,839 |
Advances from customers | 101,513 | 81,434 |
Amounts due to related parties | 14,595 | 11,548 |
Accrued expenses and other liabilities-current portion | 152,613 | 223,080 |
Short-term borrowing | 100,000 | 0 |
Income tax payables | 17,349 | 16,151 |
Lease liabilities, current | 2,019 | 4,138 |
Accrued expenses and other liabilities non current | 12,766 | 8,245 |
Lease liabilities, non current | 1,503 | 6,040 |
Third parties | ||
Accounts and notes receivable | 80,409 | 87,563 |
Third parties | VIEs | ||
Accounts and notes receivable | 63,779 | 72,193 |
Related party | ||
Accounts and notes receivable | 325 | 272 |
Accounts and other receivables | 0 | 19 |
Amounts due to related parties | 18,468 | 11,548 |
Related party | VIEs | ||
Accounts and notes receivable | ¥ 320 | ¥ 272 |
Class A Ordinary Shares | ||
Common stock, shares authorized | shares | 4,800,000,000 | 4,800,000,000 |
Common stock, shares issued | shares | 101,902,544 | 104,539,463 |
Common stock, shares outstanding | shares | 101,902,544 | 104,539,463 |
Class B Ordinary Shares | ||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 |
Common stock, shares issued | shares | 102,764,550 | 102,854,550 |
Common stock, shares outstanding | shares | 102,764,550 | 102,854,550 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Net revenues: | ||||
Total net revenues | ¥ 2,493,386 | $ 351,186 | ¥ 3,232,731 | ¥ 5,303,835 |
Cost of revenues | (1,923,866) | (270,971) | (2,495,638) | (4,105,767) |
Gross profit | 569,520 | 80,215 | 737,093 | 1,198,068 |
Operating expenses: | ||||
Research and development expenses | (222,911) | (31,396) | (299,950) | (311,786) |
Selling and marketing expenses | (401,766) | (56,588) | (614,887) | (751,011) |
General and administrative expenses | (81,508) | (11,480) | (121,702) | (97,730) |
Total operating expenses | (706,185) | (99,464) | (1,036,539) | (1,160,527) |
Other income, net | 17,510 | 2,466 | 22,135 | 27,128 |
Income (loss) from operations | (119,155) | (16,783) | (277,311) | 64,669 |
Interest income and investment income, net | 29,893 | 4,210 | 10,368 | 28,589 |
Other non-operating income | 1,664 | 234 | 2,487 | 1,372 |
Income (loss) before income tax expenses | (87,598) | (12,339) | (264,456) | 94,630 |
Income tax expenses | (1,735) | (244) | (18,174) | (5,739) |
Net income (loss) | (89,333) | (12,583) | (282,630) | 88,891 |
Less: Net income (loss) attributable to the non-controlling interest shareholders | (4,659) | (656) | (7,115) | 286 |
Net income (loss) attributable to ordinary shareholders of the Company | (84,674) | (11,927) | (275,515) | 88,605 |
Net income (loss) attributable to the Company | (84,674) | (11,927) | (275,515) | 88,605 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 10,007 | 1,409 | 48,785 | (13,736) |
Total comprehensive income (loss) attributable to the Company | ¥ (74,667) | $ (10,518) | ¥ (226,730) | ¥ 74,869 |
Net income (loss) per share attributable to ordinary shareholders of the Company: | ||||
-Basic | (per share) | ¥ (0.41) | $ (0.06) | ¥ (1.32) | ¥ 0.42 |
-Diluted | (per share) | ¥ (0.41) | $ (0.06) | ¥ (1.32) | ¥ 0.40 |
Weighted average number of ordinary shares used in calculating net income per share | ||||
-Basic | 206,360,586 | 206,360,586 | 208,341,011 | 209,551,821 |
-Diluted | 206,360,586 | 206,360,586 | 208,341,011 | 220,735,997 |
Third parties | ||||
Net revenues: | ||||
Total net revenues | ¥ 1,176,072 | $ 165,646 | ¥ 1,829,377 | ¥ 3,008,266 |
Related party | ||||
Net revenues: | ||||
Total net revenues | 1,317,314 | $ 185,540 | 1,403,354 | 2,295,569 |
Operating expenses: | ||||
Selling and marketing expenses | ¥ | ¥ (35,146) | ¥ (41,584) | ¥ (106,929) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Common Stock Class A Ordinary Shares Conversion of Class B ordinary shares into Class A ordinary shares shares | Common Stock Class A Ordinary Shares Post-IPO Class B Ordinary shares converted to Post-IPO Class A Ordinary shares shares | Common Stock Class A Ordinary Shares CNY (¥) shares | Common Stock Class B Ordinary Shares Conversion of Class B ordinary shares into Class A ordinary shares shares | Common Stock Class B Ordinary Shares Post-IPO Class B Ordinary shares converted to Post-IPO Class A Ordinary shares shares | Common Stock Class B Ordinary Shares CNY (¥) shares | Treasury stock CNY (¥) shares | Additional Paid-in Capital 2015 and 2018 Share Incentive Plan CNY (¥) | Additional Paid-in Capital CNY (¥) | Retained Earnings CNY (¥) | Accumulated Other Comprehensive Loss CNY (¥) | Total Equity Attributable to Shareholders of the Company 2015 and 2018 Share Incentive Plan CNY (¥) | Total Equity Attributable to Shareholders of the Company CNY (¥) | Non-Controlling Interest CNY (¥) | Class A Ordinary Shares shares | Class B Ordinary Shares shares | 2015 and 2018 Share Incentive Plan CNY (¥) | CNY (¥) shares | USD ($) shares |
Balances at Dec. 31, 2020 | ¥ 6 | ¥ 6 | ¥ 1,278,004 | ¥ 363,051 | ¥ (59,384) | ¥ 1,527,083 | ¥ 3,236 | ¥ 1,530,319 | |||||||||||
Balances (in shares) at Dec. 31, 2020 | shares | 104,163,686 | 103,554,546 | 104,163,686 | 103,554,546 | |||||||||||||||
Treasury stock, beginning balance at Dec. 31, 2020 | ¥ (54,600) | ||||||||||||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | shares | 4,232,169 | ||||||||||||||||||
Net income (loss) attributable to the Company and a non-controlling interest shareholder | 88,605 | 88,605 | 286 | 88,891 | |||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 47,405 | ¥ 47,405 | ¥ 47,405 | ||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares (in shares) | shares | 339,999 | (339,999) | 339,999 | ||||||||||||||||
Issuance of ordinary shares for exercised share options | 9,941 | 9,941 | ¥ 9,941 | ||||||||||||||||
Issuance of ordinary shares for exercised share options (in shares) | shares | 3,011,064 | 3,011,064 | 3,011,064 | 3,011,064 | |||||||||||||||
Capital injection in a subsidiary from a non-controlling interest shareholder | 175 | 175 | ¥ 175 | ||||||||||||||||
Repurchase of shares | ¥ (12,068) | (12,068) | (12,068) | ||||||||||||||||
Repurchase of shares (in shares) | shares | (1,997,970) | 1,997,970 | (1,997,970) | ||||||||||||||||
Appropriation to statutory reserves | 1,756 | (1,756) | |||||||||||||||||
Foreign currency translation adjustment | (13,736) | (13,736) | (13,736) | ||||||||||||||||
Balances at Dec. 31, 2021 | ¥ 6 | ¥ 6 | 1,337,281 | 449,900 | (73,120) | 1,647,405 | 3,522 | 1,650,927 | |||||||||||
Balances (in shares) at Dec. 31, 2021 | shares | 105,516,779 | 103,214,547 | 105,516,779 | 103,214,547 | |||||||||||||||
Treasury stock, ending balance at Dec. 31, 2021 | ¥ (66,668) | 1,337,281 | |||||||||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | shares | 6,230,139 | ||||||||||||||||||
Net income (loss) attributable to the Company and a non-controlling interest shareholder | (275,515) | (275,515) | (7,115) | (282,630) | |||||||||||||||
Share-based compensation related to Share Incentive Plan | 19,560 | 19,560 | 19,560 | ||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares (in shares) | shares | 359,997 | (359,997) | 359,997 | ||||||||||||||||
Issuance of ordinary shares for exercised share options | 556 | 556 | ¥ 556 | ||||||||||||||||
Issuance of ordinary shares for exercised share options (in shares) | shares | 956,256 | 956,256 | 956,256 | 956,256 | |||||||||||||||
Repurchase of shares | ¥ (8,035) | (8,035) | ¥ (8,035) | ||||||||||||||||
Repurchase of shares (in shares) | shares | (2,293,569) | 2,293,569 | (2,293,569) | ||||||||||||||||
Foreign currency translation adjustment | 48,785 | 48,785 | 48,785 | ||||||||||||||||
Balances at Dec. 31, 2022 | ¥ 6 | ¥ 6 | 1,357,397 | 174,385 | (24,335) | 1,432,756 | (3,593) | 1,429,163 | |||||||||||
Balances (in shares) at Dec. 31, 2022 | shares | 104,539,463 | 102,854,550 | 104,539,463 | 102,854,550 | |||||||||||||||
Treasury stock, ending balance at Dec. 31, 2022 | ¥ (74,703) | (74,703) | |||||||||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | shares | 8,523,708 | ||||||||||||||||||
Net income (loss) attributable to the Company and a non-controlling interest shareholder | (84,674) | (84,674) | (4,659) | (89,333) | $ (12,583) | ||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 106 | ¥ 106 | ¥ 106 | ||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares (in shares) | shares | 90,000 | (90,000) | 90,000 | ||||||||||||||||
Issuance of ordinary shares for exercised share options | 19 | 19 | ¥ 19 | ||||||||||||||||
Issuance of ordinary shares for exercised share options (in shares) | shares | 176,883 | 176,883 | 176,883 | 176,883 | |||||||||||||||
Capital injection in a subsidiary from a non-controlling interest shareholder | (3,888) | (3,888) | 4,003 | ¥ 115 | |||||||||||||||
Repurchase of shares | ¥ (6,440) | (6,440) | (6,440) | ||||||||||||||||
Repurchase of shares (in shares) | shares | (2,903,802) | 2,903,802 | (2,903,802) | ||||||||||||||||
Foreign currency translation adjustment | 10,007 | 10,007 | 10,007 | $ 1,409 | |||||||||||||||
Balances at Dec. 31, 2023 | ¥ 6 | ¥ 6 | ¥ 1,353,634 | ¥ 89,711 | ¥ (14,328) | ¥ 1,347,886 | ¥ (4,249) | 1,343,637 | 189,247 | ||||||||||
Balances (in shares) at Dec. 31, 2023 | shares | 101,902,544 | 102,764,550 | 101,902,544 | 102,764,550 | |||||||||||||||
Treasury stock, ending balance at Dec. 31, 2023 | ¥ (81,143) | ¥ (81,143) | $ (11,429) | ||||||||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2023 | shares | 11,427,510 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ (89,333) | $ (12,583) | ¥ (282,630) | ¥ 88,891 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 64,881 | 9,138 | 88,494 | 72,148 |
Inventory write-down | 31,135 | 4,385 | 32,846 | 8,103 |
Share-based compensation | 106 | 14 | 19,560 | 47,405 |
Allowance for doubtful accounts | 13,894 | 1,957 | 52,997 | 25,541 |
Deferred income tax (benefits) expenses | 1,670 | 235 | 22,644 | (21,115) |
Investment income | (1,424) | (201) | (7,350) | (1,369) |
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable from third parties | 1,000 | 141 | 7,505 | 99,877 |
Accounts receivable from a related party | 36,211 | 5,100 | (39,462) | 287,690 |
Inventories | 28,937 | 4,076 | 41,214 | (145,079) |
Prepaid expenses and other current assets | 521 | 73 | (25,710) | (76,193) |
Other receivables from related parties | 24,815 | 3,495 | 63,432 | (266) |
Amounts due to related parties | 6,920 | 975 | 6,133 | (118,777) |
Interest received relating to the investment income recognized in previous year | 712 | 100 | 3,243 | 2,785 |
Accounts and notes payable | (177,725) | (25,032) | (225,050) | 67,737 |
Advances from customers | 12,969 | 1,827 | 18,737 | (12,981) |
Income tax payables | 1,105 | 156 | (26,669) | (7,619) |
Accrued expenses and other liabilities | (50,720) | (7,143) | (29,220) | 3,202 |
Lease liabilities | (8,902) | (1,253) | (4,883) | (11,012) |
Net cash provided by (used in) operating activities | (103,228) | (14,540) | (284,169) | 308,968 |
Cash flows from investing activities | ||||
Purchase of equipment | (110,127) | (15,511) | (195,555) | (99,448) |
Purchase of lease hold improvement | (3,080) | (434) | (3,991) | |
Purchase of intangible assets | (398) | (56) | (4,405) | (6,733) |
Placement of long-term investments | (23,838) | (3,358) | ||
Purchase of short-term investments | (110,860) | (15,614) | (347,971) | (1,796,620) |
Maturity of short-term investments | 238,261 | 33,558 | 983,887 | 1,663,489 |
Proceeds from disposal of property and equipment | 1,543 | 217 | 132 | |
Placement of short-term deposits | (190,427) | (26,821) | (171,541) | (164,761) |
Maturities of short-term deposits | 162,743 | |||
Placement of long-term deposits | (30,000) | |||
Maturities of long-term deposits | 50,000 | 10,000 | ||
Net cash (used in) provided by investing activities | (198,926) | (28,019) | 314,547 | (265,321) |
Cash flows from financing activities | ||||
Proceeds from exercise of vested share options | 19 | 3 | 2,936 | 12,920 |
Receipt of borrowing | 121,963 | 17,178 | 118,662 | 16,106 |
Capital injection in subsidiaries from an investor or a non-controlling shareholder | 115 | 16 | 175 | |
Repurchase of ordinary shares | (6,440) | (907) | (8,035) | (12,068) |
Net cash provided by financing activities | 115,657 | 16,290 | 113,563 | 17,133 |
Effect of exchange rate changes on cash and cash equivalents | 9,643 | 1,360 | 46,482 | (12,703) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (176,854) | (24,909) | 190,423 | 48,077 |
Cash and cash equivalents and restricted cash at the beginning of the year | 813,209 | 114,538 | 622,786 | 574,709 |
Cash and cash equivalents and restricted cash at the end of the year | 636,355 | 89,629 | 813,209 | 622,786 |
Cash and cash equivalents at the end of the year | 491,715 | 69,257 | 737,139 | 586,955 |
Restricted cash at the end of the year | 144,640 | 20,372 | 76,070 | 35,831 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income tax, net | (187) | (26) | (22,802) | (34,446) |
Acquisition of equipment in form of other payable | ¥ 53,235 | $ 7,498 | ¥ 16,075 | ¥ 60,507 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. Viomi Technology Co., Ltd (the “Company”) is a holding company incorporated under the Laws of the Cayman Islands in January 2015. The Company, through its consolidated subsidiaries and “VIEs” (collectively referred to as the “Group”) is primarily engaged in the operation of developing and selling Internet-of-things-enabled (“IoT-enabled”) smart home products in the People’s Republic of China (the “PRC”). (a) History and Reorganization The Group commenced its operations in May 2014 through Foshan Yunmi Electric Appliances Technology Co., Ltd. (“Foshan Viomi”), a PRC company established by Mr. Chen Xiaoping (“Mr. Chen” or the “Founder”), and Tianjin Jinxing Investment Co., Ltd. (“Tianjin Jinxing”), a subsidiary of Xiaomi Corporation (“Xiaomi”, also referring to entities controlled by Xiaomi Corporation where appropriate), who is an investor of the Company. Mr. Chen and Tianjin Jinxing invested RMB7,500 and RMB5,000 to establish Foshan Viomi and held 60% and 40% initial equity interests, respectively. Included in the RMB7,500 invested by Mr. Chen, RMB2,500 was invested by certain key management founders and held by Mr. Chen on their behalf (The key management founders, together with Mr. Chen are referred to “the Founders”). The Group has undertaken its reorganization (“Reorganization”) as detailed below. In January 2015, the Company was incorporated in the Cayman Islands, Viomi HK Technology Co., Limited (“Viomi HK”) was incorporated in Hong Kong as a wholly owned subsidiary of the Company, Beijing Yunmi Technology Co., Ltd. (“Beijing Viomi”) was set up as a domestic company. In May 2015, Lequan Technology Beijing Co., Ltd (“Lequan”) was incorporated as a wholly owned subsidiary of Viomi HK in the PRC. In July 2015, the Company issued 33,818,182 class A ordinary shares to exchange the interest of RMB2,500 in Foshan Viomi held by Mr. Chen on behalf of key management founders, 67,636,364 Class B redeemable convertible ordinary shares (Pre-IPO Class B Ordinary Shares) to exchange the interest of RMB5,000 in Foshan Viomi owned by Mr. Chen, and 67,636,364 Pre-IPO Class B Ordinary Shares to Red Better Limited (“Red Better”), a subsidiary of Xiaomi, and Shunwei Talent Limited (“Shunwei”), to exchange the interest of RMB5,000 held by Tianjin Jinxing. Concurrently, the Company obtained control over Foshan Viomi and Beijing Viomi through Lequan by entering into a series of contractual arrangements with Foshan Viomi, Beijing Viomi and their shareholders as detailed in note 1(c). As a result, Foshan Viomi and Beijing Viomi became the consolidated VIEs of the Group. The Reorganization lacks substance and should be treated as a non-substantive merger with no change in the basis of assets and liabilities of Foshan Viomi. In addition, the Company issued 18,181,818 Series A Preferred Shares at the issue price of US$1.1 per share to a group of investors for considerations of US$20,000, including conversion of the outstanding bridge loans of US$5,250, which was provided by the same investors during January 2015 to July 2015. The remaining consideration was fully received in cash. In June 2018, the Board of Directors and the shareholders approved a transfer and surrender of shares plan, pursuant to which, Mr. Chen, who holds 33,818,182 class A ordinary shares on behalf of certain key management founders through Viomi Limited, transferred 16,145,454 class A ordinary shares to key management founders and surrendered the remaining 17,672,728 class A ordinary shares to the Company. Pursuant to the written resolutions of all the shareholders of the Company on August 23, 2018, the Company effected a share split whereby each of the Company’s authorized and outstanding ordinary shares and preferred shares, par value of $0.0001 each, was divided into ten ordinary shares and preferred shares of the same series, par value US$0.00001 each, respectively. All shareholders surrendered 90% of their after-share-split outstanding shares back to the Company for cancellation. After the share split and the surrender of shares for cancellation, the number of the Company’s outstanding ordinary and preferred shares remained unchanged. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (a) History and Reorganization (Continued) In December 2019, the Company established Yunmi Hulian Technology (Guangdong) Co., Ltd. (“Yunmi Hulian”) as a wholly owned subsidiary of Viomi HK to act as a holding company for future business and investment opportunities. In October 2020, Codream HK Co., Limited (Hong Kong) (“Codream HK”), one of the Company’s subsidiaries, established Zhumeng Hulian Technology (Guangdong) Co. Ltd. (“Zhumeng Hulian”) as a wholly owned subsidiary of the Company. In November 2020, the Group entered into an agreement with Sunglow Wealth HK Limited (“Sunglow”) to sell 1% of equity interests of Guangdong Lizi Technology Co. Ltd. (“Guangdong Lizi”) for a consideration of RMB175. Meanwhile, Foshan Viomi transferred all of its equity interests of Guangdong Lizi to Zhumeng Hulian. Sunglow has paid up the consideration in December 2021 but is not entitled to any shareholder’s rights of Guangdong Lizi until the fulfilment of certain conditions pursuant to the supplemental agreement in November 2021. The Group therefore did not recognize Sunglow as a non-controlling interest of Guangdong Lizi as of December 31, 2021. The conditions had not been fulfilled by December 31, 2023 and therefore the Group did not recognize Sunglow as a non-controlling interest of Guangdong Lizi as of December 31, 2023. As of December 31, 2023, details of the Company’s principal subsidiaries and VIEs were as follows: Percentage of Place of Date of beneficial Principal incorporation incorporation ownership activities Subsidiaries: Viomi HK Hong Kong January 30, 2015 100 % Investment holding Lequan PRC May 15, 2015 100 % Investment holding Codream HK Hong Kong August 20, 2019 100 % Investment holding Yunmi Hulian PRC December 9, 2019 100 % Investment holding Zhumeng Hulian PRC October 14, 2020 100 % Investment holding Guangdong Lizi PRC July 26, 2018 100 % Home appliance development and sales Guangzhou interconnect Technology Co., Ltd. PRC December 7, 2020 100 % Home appliance development and sales VIEs: Foshan Viomi PRC May 6, 2014 100 % Home appliance development and sales Beijing Viomi PRC January 12, 2015 100 % No substantial business Subsidiaries of Foshan Viomi: Guangdong AI Touch Technology Co., Ltd. (“AI Touch”) PRC January 30, 2019 VIE’s subsidiary Home appliance development and sales Foshan Xiaoxian Hulian Electric Appliances Technology Co., Ltd. (“Foshan Xiaoxian”) PRC October 12, 2016 VIE’s subsidiary Home appliance development and sales (b) Dual Classes Ordinary Shares and Initial Public Offering On September 25, 2018, the Company completed its IPO on the NASDAQ Global Market in the United States of America. In this offering, 11,400,000 American Depositary Shares (“ADSs”), representing 34,200,000 Class A ordinary shares, were issued and sold to the public at a price of US$9.00 per ADS. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (b) Dual Classes Ordinary Shares and Initial Public Offering (Continued) Pursuant to the resolution of the shareholders of the Company on August 23, 2018, the Company’s authorized share capital became US$50,000 divided into 5,000,000,000 shares comprising of (i) 4,800,000,000 class A ordinary shares of a par value of US$0.00001 each (‘‘Class A Ordinary Shares’’), (ii) 150,000,000 class B ordinary shares of a par value of US$0.00001 each (‘‘Class B Ordinary Shares’’) and (iii) 50,000,000 shares of a par value of US$0.00001 each of such class or classes (however designated) as the board of directors may determine in accordance with post-offering amended and restated memorandum and articles of association. In respect of all matters subject to a shareholder vote, each Class A ordinary share is entitled to one vote, and each Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. Upon any transfer of Class B Ordinary Shares by a holder to any person or entity other than holders of Class B Ordinary Shares or their affiliates, such Class B Ordinary Shares shall be automatically and immediately converted into the equivalent number of Class A Ordinary Shares. Immediately prior to the completion of the IPO, 16,145,454 issued Class A Ordinary Shares held by certain key management founders, 33,818,182 issued Pre-IPO Class B Ordinary Shares held by Red Better, and 67,636,364 issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiaries The Company, through Lequan or Yunmi Hulian, entered into the following contractual arrangements with Beijing Viomi, Foshan Viomi and their shareholders, respectively, that enable Lequan or Yunmi Hulian through their PRC subsidiaries to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, through the exercise of the shareholders’ rights under the shareholder voting proxy agreement as the shareholders’ meetings of the VIEs appoint the board of directors of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs through the exclusive consultation and service agreement. Accordingly, Lequan or Yunmi Hulian are considered the primary beneficiaries of the VIEs and have consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that Lequan or Yunmi Hulian are the primary beneficiaries of the VIEs, the Company believes Lequan or Yunmi Hulian’s rights under the terms of the option agreement provide them with a substantive kick-out right. As advised by the Company’s PRC legal counsel, the Company believes the terms of the option agreement are valid, binding and enforceable under PRC laws and regulations currently in effect. The Company also believes that the consideration which is the minimum amount permitted by the applicable PRC law to exercise the option does not represent a financial barrier or disincentive for Lequan or Yunmi Hulian to currently exercise their rights under the exclusive option agreement. A simple majority vote of Lequan or Yunmi Hulian’s board of directors is required to pass a resolution to exercise their rights under the option agreement. Lequan or Yunmi Hulian’s rights under the option agreement give them the power to control the shareholders of Foshan Viomi and Beijing Viomi. In addition, Lequan or Yunmi Hulian’s rights under the shareholder voting proxy agreement also reinforce their abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Company also believes that this ability to exercise control ensures that the VIEs will continue to execute consultation and service agreements and also ensures that consultation and service agreements will be executed and renewed indefinitely unless a written agreement is signed by all parties to terminate it or a mandatory termination is requested by PRC laws or regulations. Lequan and Yunmi Hulian have the rights to receive substantially all of the economic benefits from the VIEs. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (Continued) Exclusive consulting and service agreement. Equity pledge agreement. Exclusive purchase option agreement. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (Continued) Shareholder voting proxy agreement. In September 2018, Foshan Viomi reduced its registered capital and changed its shareholders from Mr. Chen and Tianjin Jinxing to Mr. Chen alone. Concurrently, the Group entered into a series of contractual arrangements in substantially the same forms with Foshan Viomi and Mr. Chen. Management therefore concluded that the Company, through its PRC subsidiary and the above contractual arrangements, has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore the Company is the ultimate primary beneficiary of these VIEs. Consequently, the financial results of the VIEs were included in the Group’s consolidated financial statements. Risks in relation to VIE structure The Company believes that the contractual arrangements among its subsidiaries, their VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit Lequan and Yunmi Hulian’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Group’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● impose additional conditions or requirements with which the Group may not be able to comply; ● take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business or ● require the Company or the Company’s PRC subsidiary or VIEs to restructure the relevant ownership structure or operations. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (Continued) The Company’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary or VIEs. Mr. Chen is the ultimate shareholder of Foshan Viomi and the largest shareholder of Beijing Viomi, and Mr. Chen is also the largest beneficiary owner of the Company. The interests of Mr. Chen as the largest beneficiary owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Chen is only one of the beneficiary shareholders of the Company. The Company cannot assert that when conflicts of interest arise, Mr. Chen will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest Mr. Chen may encounter in his capacity as a beneficial owner and director of the VIEs, on the one hand, and as a beneficial owner and director of the Company, on the other hand. The Company relies on Mr. Chen, as a director and executive officer of the Company, to fulfill his fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and Mr. Chen, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. In addition, the other shareholder of Beijing Viomi is also a beneficial owner of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that the shareholders of the Foshan Viomi and Beijing Viomi may act contrary to the contractual arrangements, the Company, through Lequan, entered into a shareholder voting proxy agreement with all of the shareholders of Foshan Viomi and Beijing Viomi in July 2015. The shareholder voting proxy agreement with the shareholder of Foshan Viomi has been updated in September 2018 as Foshan Viomi reduced its registered capital and changed its shareholders from Mr. Chen and Tianjin Jinxing to Mr. Chen alone. In April 2020, Lequan assigned and transferred its rights and obligations of Foshan Viomi under the original agreements to Yunmi Hulian, which succeeded Lequan as a party to such agreement and assumed its rights and obligations thereunder. Through the shareholder voting proxy agreement, all shareholders of Foshan Viomi and Beijing Viomi have entrusted the person designated by Lequan or Yunmi Hulian as its proxy to exercise their rights as the shareholders of Foshan Viomi and Beijing Viomi with respect to an aggregate of 100% of the equity interests in Foshan Viomi and Beijing Viomi. In March 2019, the National People’s Congress enacted PRC Foreign Investment Law which would be effective starting from January 1, 2020. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment”, which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Existing laws or administrative regulations remain unclear whether the contractual arrangements with variable interest entities will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. However, the possibility that such entities will be deemed as foreign invested enterprise and subject to relevant restrictions in the future shall not be excluded. If variable interest entities fall within the definition of foreign investment entities, the Group’s ability to use the contractual arrangements with its VIE and the Group’s ability to conduct business through the VIE could be severely limited. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiaries (Continued) The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and its subsidiaries taken as a whole on an aggregated basis, which were included in the Group’s consolidated financial statements. For purposes of this presentation, activity within and between the VIEs and their subsidiaries have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination. As of December 31, 2022 2023 RMB RMB Cash and cash equivalents 335,476 285,338 Short-term investments 189,275 51,864 Accounts receivable from third parties (net of allowance of RMB72,193 and RMB63,779 as of December 31, 2022 and 2023, respectively) 150,686 189,983 Accounts receivable from a related party (net of allowance of RMB272 and RMB320 as of December 31, 2022 and 2023, respectively) 360,497 319,842 Amounts due from Group companies 707,458 725,171 Inventories 281,649 248,614 Other assets 427,598 503,423 Total assets 2,452,639 2,324,235 Accounts and notes payable 377,839 348,876 Amounts due to Group companies 1,043,056 1,002,435 Accrued expenses and other liabilities 231,325 165,379 Other liabilities 119,311 236,979 Total liabilities 1,771,531 1,753,669 Year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue from Group companies (1) 131,379 220,607 114,889 Revenue from a related party and third parties 4,859,414 2,805,557 2,123,580 Cost from Group companies 1,291,468 49,359 144,897 Cost from a related party and third parties 2,870,809 2,355,718 1,688,405 Net loss (60,908) (237,517) (81,057) Net cash used in operating activities with Group companies (794,936) (958,297) (597,354) Net cash provided by operating activities with third parities 1,248,860 537,068 632,235 Net cash (used in) provided by investing activities with Group companies (83,325) 7,280 16,866 Net cash (used in) provided by investing activities with third parties (233,934) 461,320 (82,035) Net cash used in financing activities with Group (156,406) (60,361) (44,574) Net cash provided by financing activities with third parties — — 100,000 (1) Inter-company revenues between VIEs and other subsidiaries VIEs sell certain products and provide marketing services to other subsidiaries. For the years ended December 31, 2021, 2022 and 2023, the inter-company sales recognized by VIEs to Equity subsidiaries are RMB131.3 million, RMB195.8 million and RMB99.4 million, respectively. And the inter-company sales recognized by VIEs to Primary beneficiaries of VIEs and their subsidiaries for the year ended December 31, 2021, 2022 and 2023 are RMB0.1 million, RMB24.8 million and RMB15.5 million, respectively. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiaries. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Lequan and ultimately the Company hold all the variable interests of the VIE and has been determined to be the primary beneficiary of the VIE. (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include sales returns, inventory valuation, product warranties, share-based compensation, allowance for doubtful accounts and the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and British Virgin Islands are United States dollar (“US$”), while the functional currency of the Group’s entities in the PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiary in Hong Kong and British Virgin Islands, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, and incomes are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (d) Foreign currency translation (Continued) Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange (losses) gains, net in the consolidated statement of comprehensive income. (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income (loss) and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB7.0999 on December 29, 2023 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, and all highly liquid investments with original maturities of three months or less, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. (g) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets. Restricted cash is included in the total cash and cash equivalents and restricted cash in the consolidated statements of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Group’s restricted cash mainly represents security deposits held in designated bank accounts for issuance of bank acceptance notes. (h) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income. (i) Short-term investments In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (j) Accounts receivable Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. On January 1, 2020, the Company adopted ASC326, “Financial Instruments—Credit Losses” using modified retrospective transition approach. The Group provides an allowance against accounts receivable to the amount management reasonably believe will be collected. The Group writes off trade receivable when they are deemed uncollectible. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. Accounts receivable have been grouped based on shared credit risk characteristics and days past due to estimate, taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors. (k) Inventories Inventories are stated at the lower of cost or net realizable value (“NRV”). Inventory costs are calculated on the actual cost basis including expenses that are directly or indirectly incurred in the purchase, and production of manufactured product. Expenses include the cost of materials, consignment manufacturing cost and other direct costs. Cost is determined using the weighted average method. The Group assesses the valuation of inventory and periodically writes down the value for inventories when their costs are lower than the NRV. The NRV is determined based on the estimated net selling prices less the estimated costs to completion and other costs necessary to make the sale. Determination of estimated net selling prices of finished goods, estimated costs to completion and other costs necessary to make the sale required significant management judgements, taking into consideration historical actual information and expected future market trends. (l) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities of more than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income. (m) Property, plant and equipment, net Property, plant and equipment are carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives and residual value. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Estimated useful lives Residual rate Buildings 20 years 5 % Computers and equipment 2-10 years 0%-5 % Vehicle 4 years 5 % 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Property, plant and equipment, net (Continued) Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. Construction in progress represents property, plant and equipment under construction and pending installation and is stated at cost less accumulated impairment losses, if any. Completed assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use. Interest expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. (n) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the longlived assets to the estimated undiscounted future cash flows expected to result from the use of the assetsIf the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of carrying amount over the recoverable amount of the assets, using the expected future discounted cash flows. No impairments of long-lived assets were recognized as of December 31, 2022 and 2023. (o) Long-term investment For an investee over which the Company has the ability to exercise significant influence, but does not own a majority equity interest or otherwise control, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the Company’s share of the investee’s results of operations is included in interest income and investment income, netin the consolidated statements of comprehensive income. (p) Land use rights Land use rights are recorded at cost less accumulated amortization and impairment, if any. Amortization is calculated on a straight-line basis over the estimated useful lives which are 50 years that represent the terms of land use rights certificate. (q) Intangible assets Intangible assets mainly consist of software and license. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Software 1 - 10 years License 3 - 10 years 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (r) Leases The Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessees to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. (s) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) and subsequently, the FASB issued several amendments which amend certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as “ASC 606”). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group will enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Group adopted ASC 606 for all periods presented. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (s) Revenue recognition (Continued) The Group’s revenue is primarily derived from (i) IoT Home portfolio including sweeper robots, air conditioning systems and other smart devices, (ii) Home water solutions, which are composed of smart water purification systems, (iii) consumable products complementary to the Group’s IoT smart home products, such as water purifier filters, (iv) Small appliances and others refer to the value-added businesses. Refer to Note 13 to the consolidated financial statements for disaggregation of the Group’s revenue by type of product and service for the years ended December 31, 2021, 2022 and 2023. 1) The Group conducts its business through various contractual arrangements, the following table disaggregates the Group’s revenue by type of contract for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 RMB RMB RMB Sales of products to Xiaomi 2,295,569 1,403,354 1,317,314 —Xiaomi-branded products 2,021,117 1,154,689 1,158,983 —Viomi-branded products 274,452 248,665 158,331 Sales of products and rendering of services to third-party customers 3,008,266 1,829,377 1,176,072 5,303,835 3,232,731 2,493,386 a) Sales to Xiaomi The Group generated a substantial portion of its revenues from sales of products to Xiaomi. Under the cooperation agreement entered into between the Group and Xiaomi, the Group is responsible for design, research, development, production and delivery of designated products using the brand name of “Xiaomi” (“Xiaomi-branded products”). Xiaomi is responsible for commercial distributions and sales. The Group also sells some Viomi-branded products to Xiaomi. Revenue is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue does not meet the criteria to be recognized over time since 1) even if the products use “Xiaomi” brand, it does not require significant rework to make them suitable to be sold to other customers, 2) under the cooperation agreement, the Group does not have the right of payment for the work performed to date. For a majority of types of products sold to this customer, the selling price is a fixed amount as agreed by both parties. For other types of products sold to this customer, the sales arrangement includes two installment payments. The first installment is priced to recover the costs incurred by the Group in developing, producing and shipping the products to this customer and is payable to the Group upon acceptance by the customer after delivery. The Group is also entitled to receive a potential second installment payment calculated as certain portion of the future gross profits from commercial sales made by this customer. Accordingly, the Group determines the sales price as the fixed first installment payment plus the variable second installment payment to the extent that it is probable that revenue reversal will not occur when settling with the customer subsequently. The Group estimates the variable consideration using the expected value method. In assessing the variable second installment payment, the Group takes into consideration of the historical experience with the customer, selling price of the same or similar products as at the report date as well as the recent market trend. Water purifiers products were previously entitled to second instalment payments but second instalment payment arrangement has stopped for water purifiers products since the first quarter of 2020. For the years ended December 31, 2021, 2022 and 2023, net revenues earned from second installment payment arrangement represented 2.0%, 2.8% and 2.8% of total revenue from Xiaomi, respectively. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (s) Revenue recognition (Continued) In 2019, the Group entered into a cooperation arrangement with Xiaomi related to a certain type of products. Under the arrangement, the Group acts as an agent of Xiaomi to procure suppliers without obtaining the control, risks and rewards of the products during the whole process. The Group recognizes revenue of sales on a net basis for these products. This cooperation arrangement was terminated at the end of 2020. b) Sales to third-party customers, including: sales to leading e-commerce platforms and offline experience stores; and sales to customers directly through the online platforms operated by Xiaomi, third parties and the Group. The Group recognizes revenue for the sales to third-party customers in accordance with the applicable revenue recognition method for each of the distinct performance obligation identified. Sales of products is recognized upon acceptance by customers after delivery. Installation services revenues are recognized when the services are rendered. - Sales to leading e-commerce platforms and offline experience stores Pursuant to the contracts between the Group and the leading e-commerce platforms/offline experience stores (“e-commerce platforms and stores”), the e-commerce platforms and stores have legal title and physical possession of the products upon acceptance and they would bear the risk of loss due to physical damage before the products are transferred and accepted by end customers. The e-commerce platforms and stores are responsible for delivering the products to end customers and can direct the use of the products and obtain the remaining benefits from the products by reselling the products. The e-commerce platforms and stores have flexibility in determining the retail sales price within relatively broad price range set by the Group. Based on these indicators, the Group determined the e-commerce platforms and stores (as opposed to the end customers) as its customers according to ASC 606-10-55-39. The Group recognizes revenue equal to the sales price to the e-commerce platforms and stores when control of the inventory is transferred. - Sales to customers directly through the online platforms operated by Xiaomi, third parties and the Group Under the cooperation agreements entered between the Group and online platforms, the platforms’ responsibilities are limited to offering an online marketplace, while the Group is primarily obligated in a sales transaction and takes inventory risk and has latitude in determining prices. The platforms charged the Group commission fees at pre-determined amounts or a fixed rate based on the sales amounts. Commission fees are recognized as selling expenses. The Group determined the end customers (as opposed to the platforms) as its customers and recognizes revenue equal to the sales price to the end customers when control of the inventory is transferred. - Rendering of services The Group provides installation service to end customers for designated Viomi-branded products without separate charge. The end customers have the right, not the obligation, to ask the Group to provide installation service. The installation service is considered being distinct and accounted for as a separate performance obligation as the products and installation services are not inputs into a combined item the end customer has contracted to receive. In addition, the Group does not provide any significant integration, modification, or customization services. It can fulfill its obligation to transfer each of the products or services separately. End customers do not always exercise their rights to ask for installation services as the installation may not be complicated and could be done by end customers themselves. Therefore, the Group expects to be entitled to a breakage amount in the contract liabilities related to installation services. The Group estimates the breakage portion based on historical customers’ requests and recognizes estimated breakage as revenue in proportion to the pattern of rights exercised by end customers on a semi – annually basis. Changes in estimated breakage should be accounted for by adjusting contract liabilities to reflect the remaining rights expected to be exercised. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (s) Revenue recognition (Continued) Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling price. The standalone selling price of the products is determined based on adjusted market assessment approach by estimating the price the customer is willing to pay for the product without installation service. For the standalone selling price of the installation services, the Group determines it by referring to actual costs charged by the third-party vendors, plus an estimated profit margin of 5% based on consideration of both company specific and relevant market factors. 2) Sales returns and sales incentives - Sales to leading e-commerce platforms The Group’s sales to leading e-commerce platforms started in 2018. As stipulated in the contracts, slow-moving goods are those unsold products after they are controlled by the e-commerce platforms for more than 30 days or 45 days or 60 days, depending on the different categories of products. The Group shall coordinate with the e-commerce platforms to sell the slowing-moving products to end customers through promotions within 30 or 60 days, otherwise, the e-commerce platforms can (i) return such slow-moving products, or (ii) sell on discount as determined by the e-commerce platforms. The Group shall bear all losses caused by such discounted sales. Based on the Group’s history of cooperation with the e-commerce platforms and the pattern that the e-commerce platforms dealt with slow-moving goods, the Group estimates that slow-moving goods will be returned to the Group instead of being sold through discounted sales by the e-commerce platforms. Under ASC 606, a right of return is not a separate performance obligation, but it affects the estimated transaction price for transferred goods. Revenue is only recognized for those products that are not expected to be returned. The estimate of expected returns should be determined in the same way as other variable consideration. Based on historical information and other relevant evidence, including the expected sales and inventory level of the e-commerce platforms, the Group assesses if it is probable there will be no significant reversal of cumulative revenue, and recognizes those sales as revenue. For the years ended December 31, 2021, 2022 and 2023, the expected sales return was RMB5,593, RMB2,351 and RMB839. Accordingly the Group recognizes an expected return asset of RMB3,189, RMB1,350 and RMB508 and a refund liability of RMB6,320, RMB2,656 and RMB948 as of December 31, 2021, 2022 and 2023, respectively. The Group would update its estimate of expected returns at each period end. The expected return asset is presented and assessed for impairment separately from the refund liability. The Group would assess the expected return asset for impairment, and adjust the value of the asset if it becomes impaired. Further, the Group might provide various consideration to the e-commerce platforms, such as gross margin guarantee, advertising and promotion fees, in the form of cash, or directly reducing amounts owed to the Group by the e-commerce platforms. The Group evaluates each type of incentives or fees to be paid in accordance with ASC 606. Considering that the Group either does not receive any service from the e-commerce platforms or cannot elect to engage another vendor to provide similar advertising services on a standalone basis, the Group reduces the transaction price for the sale of products by the amount of various consideration payable to the e-commerce platforms. - 7 days unconditional sales return Under the consumer protection law, end customers have an unconditional right to return the products purchased through online platforms within 7 days. The Group bases its estimates of sales return on historical results. For the years ended December 31, 2021, 2022 and 2023, the amount of sales return was insignificant. The Group may provide sales incentives in the forms of discounts to end customers through online platforms in a bundle transaction. Revenue, recognized on a net basis after such sales incentives, are allocated based on the relative standalone selling prices for respective products. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (s) Revenue recognition (Continued) 3) Warranty The Group offers product warranty pursuant to standard product quality required by consumer protection law. The warranty period is calculated starting from the date when products are sold to the end customers. The Group has the obligation, at the customer’s sole discretion, to either repair or replace the defective product. The customers cannot separately purchase the warranty and the warranty doesn’t provide the customer with additional service other than assurance that the product will function as expected. Therefore, these warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, an estimate of warranty expenses is recorded. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as cost of revenues. 4) Value added taxes Value added taxes (“VAT”) on sales is calculated at 13% after April 1, 2019. The Group reports revenue net of VAT. Subsidiaries and VIEs that are VAT general taxpayers are allowed to offset qualified VAT paid against their output VAT liabilities. 5) Contract balances Key customers, including Xiaomi and third-party customers, are entitled to a credit term. The expected length of time between the products being transferred to customers and when they pay for those products is short. There is no difference between the amount of promised consideration and the cash selling price of the promised products. Therefore, the Group concludes that the contracts with these key customers generally do not include a significant financing component. The allowance for doubtful accounts reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The Group determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. The amount of the allowance for doubtful accounts is recognized as expenses. As of December 31, 2022 and 2023 accounts and notes receivable were RMB689,984 and RMB631,760, respectively. During the year ended December 31, 2022, the Group recognized impairments, net of recoveries, for accounts receivable from customers amounted to RMB53,082 and in the year ended December 31, 2023, the Group reverse RMB7,101. Contract liabilities consist of deferred revenue related to the Group’s provision of installation services and membership services, where there is still an obligation to be fulfilled by the Group. The contract liabilities will be recognized as revenue when all of the revenue recognition criteria are met. As of December 31, 2022 and 2023, deferred revenue were RMB2,130 and RMB3,318, respectively. During the years ended December 31, 2022 and 2023, the Group recognized revenue of installation services amounted to RMB3,154 and RMB2,130, respectively, that was included in the corresponding contract liability balance at the beginning of the years. The Group expects to recognize approximately RMB3,285 and RMB33 of the unearned amount for the Group’s remaining performance obligations related to installation services and membership service in 2024, respectively. During the years ended December 31, 2022 and 2023, the Group does not have any arrangement where the performance obligations have already been satisfied in the past period, but the corresponding revenue is only recognized in a later period. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (t) Cost of revenues Cost of revenues consists primarily of material costs, warranty, consignment manufacturing cost, salaries and benefits for staff engaged in production activities and related expenses that are directly attributable to the production of products. (u) Research and development expenses Research and development expenses primarily consist of salaries and benefits as well as share-based compensation for research and development personnel, materials, general expenses and depreciation expenses associated with research and development activities. (v) Selling and marketing expenses Selling and marketing expenses consist primarily of (i) advertising and market promotion expenses, (ii) shipping expenses and (iii) salaries and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB173,642, RMB187,417 and RMB123,083 for the years ended December 31, 2021, 2022 and 2023. The shipping expenses amounted to RMB248,609, RMB200,695 and RMB109,835 for the years ended December 31, 2021, 2022 and 2023, respectively. (w) General and administrative expenses General and administrative expenses consist primarily of (i) share-based compensation for management and administrative personnel, and (ii) salaries and welfare for general and administrative personnel. (x) Government subsidies Government subsidies represent tax refund and government grants received from local government authorities to encourage the Group’s technology and innovation. The Group records such government subsidies as other income in the consolidated statements of comprehensive income when it has fulfilled all of its obligation related to the subsidy. The Group recorded RMB30,147, RMB23,192 |
CONCENTRATION AND RISKS
CONCENTRATION AND RISKS | 12 Months Ended |
Dec. 31, 2023 | |
CONCENTRATION AND RISKS | |
CONCENTRATION AND RISKS | 3. CONCENTRATION AND RISKS (a) Foreign exchange risk The revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. (b) Credit risk Financial instruments that potentially expose the Group to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, short-term deposits, accounts and notes receivable and amounts due from related parties. The Group places its cash and cash equivalents, restricted cash, short-term investments and short-term deposits with financial institutions with high credit ratings and quality. There has been no recent history of default in relation to these financial institutions and credit risk is immaterial. 3. CONCENTRATION AND RISKS (Continued) (b) Credit risk(Continued) The Group conducts credit evaluations of third-party customers and related parties, and generally does not require collateral or other security from its third-party customers and related parties. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific third-party customers and related parties. Concentration risk of accounts and notes receivable from third parties are presented as below: As of December 31, 2022 2023 RMB RMB Company A 125,971 52 % 133,882 59 % Concentration risk of accounts receivable from a related party are presented as below: As of December 31, 2022 2023 RMB RMB Xiaomi 360,497 100 % 324,223 100 % Concentration risk of other receivables from related parties are presented as below: As of December 31, 2022 2023 RMB RMB Xiaomi 25,021 100 % 218 97 % (c) Revenue concentration risk Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi 2,295,569 43 % 1,403,354 43 % 1,317,314 53 % The revenue generated from Xiaomi included sale of both Xiaomi-branded and Viomi-branded products. Revenue from sale of Viomi-branded products amounted to RMB274,452, RMB248,665 and RMB158,331 for the years ended December 31, 2021, 2022 and 2023, respectively. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institution. Cash and cash equivalents balance as of December 31, 2022 and 2023 primarily consist of the following currencies: As of December 31, 2022 As of December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB 440,557 440,557 345,575 345,575 US$ 42,584 296,582 20,633 146,140 Total 737,139 491,715 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2023 | |
RESTRICTED CASH | |
RESTRICTED CASH | 5. RESTRICTED CASH As of December 31, 2022 and 2023, the Group held restricted cash of RMB76,070 and RMB144,640 respectively in designated bank accounts, which were composed of the deposit required for issuing bank acceptance bills of RMB56,655 and RMB119,934 respectively and the judicial frozen funds. As of December 31, 2022 and 2023, the Group held the deposit for issuing bank acceptance bills of RMB56,655 and RMB119,934 respectively, and the judicial frozen funds of RMB19,415 and RMB24,706 respectively. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 6. SHORT-TERM INVESTMENTS Short-term investments represent structured deposits with maturities of less than one year. Short-term investments balance as of December 31, 2022 and 2023 is denominated in RMB, amounted to RMB197,058 and RMB70,369 respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
INVENTORIES | 7. INVENTORIES Inventories consisted of the followings: As of December 31, 2022 2023 RMB RMB Finished goods 207,078 295,967 Raw materials 349,226 212,286 Gross 556,304 508,253 Less: provisions for inventories write-downs (54,013) (66,034) Net 502,291 442,219 |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND OTHER ASSETS | |
PREPAID EXPENSES AND OTHER ASSETS | 8. PREPAID EXPENSES AND OTHER ASSETS As of December 31, 2022 2023 RMB RMB Advances to suppliers 139,306 113,634 Other receivables 44,697 73,110 Prepayment for equipment 15,976 15,855 Lease hold improvement 5,234 2,389 Expected return assets 1,351 508 Total 206,564 205,496 Less: non-current portion (22,856) (18,824) Prepaid expenses and other assets-current portion 183,708 186,672 |
LONG-TERM DEPOSITS
LONG-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM DEPOSITS | |
LONG-TERM DEPOSITS | 9. LONG-TERM DEPOSITS Long-term deposits balance as of December 31, 2022 and 2023 is denominated in RMB, amounted to RMB30,000 and nil respectively. The long - term deposits will mature on December 16, 2024 and therefore was classified as current assets on December 31, 2023. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 10. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of December 31, 2022 2023 RMB RMB Computers and equipment 266,085 294,558 Buildings — 258,910 Construction in progress 166,480 — Vehicle 759 2,161 Total 433,324 555,629 Less: accumulated depreciation (196,892) (212,644) Property, plant and equipment, net 236,432 342,985 The Group had recorded depreciation expense of RMB55,124, RMB 80,161 and RMB46,971 for the years ended December 31, 2021, 2022 and 2023, respectively. No impairment was recorded for the years ended December 31, 2021, 2022 and 2023. |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2023 | |
LAND USE RIGHTS, NET | |
LAND USE RIGHTS, NET | 11. LAND USE RIGHTS, NET In 2020, the Group obtained a land use right in Foshan from the local authorities. Amortization of the land use right is made over the remaining term of the land use right period from the date when the land was made available for use by the Group. The land use rights are summarized as follows: As of December 31, 2022 2023 RMB RMB Land use rights 63,618 63,618 Less: Accumulated amortization (3,169) (4,441) Land use right, net 60,449 59,177 The total amortization expense for the year ended December 31, 2022 and 2023 amounted to approximately RMB1,273 and RMB1,272. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 12. ACCRUED EXPENSES AND OTHER LIABILITIES As of December 31, 2022 2023 RMB RMB Accrued payroll and welfare 76,468 76,521 Freight payable 29,533 18,556 Deposit from suppliers 36,909 43,872 Installation fee payables 6,609 7,243 Product warranty 28,292 35,213 Marketing and promotion expenses 47,124 23,657 Payment for purchase of property 16,075 53,235 Other tax payable 3,474 1,572 Professional fee payables 4,265 6,866 Refund liabilities 2,656 948 Other current liabilities 65,685 47,297 Total 317,090 314,980 Less: non-current portion (8,245) (12,766) Accrued expenses and other liabilities-current portion 308,845 302,214 Product warranty activities were as follows: Product Warranty RMB Balance at December 31, 2021 28,796 Provided during the year 51,161 Utilized during the year (51,665) Balance at December 31, 2022 28,292 Provided during the year 63,767 Utilized during the year (56,846) Balance at December 31, 2023 35,213 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE | |
REVENUE | 13. REVENUE Year ended December 31, 2021 2022 2023 RMB RMB RMB Sales of products - IoT Home portfolio 3,400,966 1,619,941 1,220,852 - Home water solutions 742,912 681,054 604,012 - Consumables 367,021 358,442 314,372 - Small appliances and other products 708,260 494,943 298,410 Total of sales of products 5,219,159 3,154,380 2,437,646 Rendering of services 84,676 78,351 55,740 Total 5,303,835 3,232,731 2,493,386 |
INCOME TAX EXPENSES
INCOME TAX EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAX EXPENSES | |
INCOME TAX EXPENSES | 14. INCOME TAX EXPENSES Cayman Islands Under the current tax laws of the Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group in Hong Kong are subject to 8.25% and 16.5% Hong Kong profit tax on its taxable income within HKD$2 million and beyond HKD$2 million respectively, generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The subsidiaries and VIEs of the Group in the PRC are subject to a uniform income tax rate of 25% for years presented except for the entities which are qualified to certified High and New Technology Enterprises (“HNTE”) that are entitled to a favorable statutory tax rate of 15%. According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deduction has been increased from 50% of the qualified research and development expenses to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018. The additional tax deduction has been increased from 75% of the qualified research and development expenses to 100%, effective from 2021, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in May 2021(“Super Deduction”). Withholding tax on undistributed dividends Under the CIT Law and its implementation rules, the profits of a foreign-invested enterprise arising in 2008 and thereafter that are distributed to its immediate holding company outside the PRC are subject to withholding tax at a rate of 10%. A lower withholding tax rate will be applied if there is a beneficial tax treaty between the PRC and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be eligible, with approval of the PRC local tax authority, to be subject 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 foreign-invested enterprise 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%. Aggregate undistributed earnings of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2022 and 2023 are approximately RMB693,623 and RMB622,290, respectively. The Company does not intend to have any of its subsidiaries located in the PRC distribute any undistributed earnings of such subsidiaries in the foreseeable future, but rather expects that such earnings will be reinvested by such subsidiaries for their PRC daily operations. Accordingly, no withholding tax was recorded as of December 31, 2022 and 2023. 14. INCOME TAX EXPENSES (Continued) Composition of income tax expense The current and deferred components of income taxes appearing in the consolidated statements of comprehensive income (loss) are as follows: Year ended December 31, 2021 2022 2023 RMB RMB RMB Current tax expenses 26,854 (4,470) 65 Deferred tax (benefit) expense (21,115) 22,644 1,670 Income tax expenses 5,739 18,174 1,735 Reconciliation between the income tax expenses computed by applying the PRC enterprise tax rate to income before income taxes and actual provision were as follows: Year ended December 31, 2021 2022 2023 RMB RMB RMB Income (loss) from operations in the PRC 89,126 (272,186) (80,815) Income (loss) from overseas entities 5,504 7,730 (6,783) Income (loss) before income tax 94,630 (264,456) (87,598) Tax expense (benefit) at PRC enterprise income tax rate of 25% 23,658 (66,114) (21,899) Income tax on tax holiday (1) (16,872) 6,310 (6,743) Tax effect of permanent differences (2) (28,303) (30,550) (18,621) Change in valuation allowance (3) 22,153 107,603 46,724 Effect of share-based compensation 7,111 2,934 16 Effect of income tax in jurisdictions other than the PRC (2,008) (2,009) 2,258 Income tax expenses 5,739 18,174 1,735 (1) The income tax on tax holidays represents the effect of preferential income tax rate enjoyed by Foshan Viomi, Guangdong Lizi and Yunmi Hulian. Foshan Viomi was qualified as an HNTE and enjoyed the beneficial tax rate of 15% for the three years ended December 31, 2021, 2022 and 2023. Foshan Viomi applied for HNTE qualification renewal in 2022, and obtained approval in December 2022. It is entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2022 and should apply for HNTE qualification renewal in 2025. Guangdong Lizi applied for HNTE qualification renewal in 2023. It entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2023 and should apply for HNTE qualification renewal in 2026. Yunmi Hulian applied for the HNTE qualification and obtained approval in December 2021. It is entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2021 and should apply for HNTE qualification renewal in 2024. (2) The permanent book-tax differences mainly consisted of R&D super deductions. (3) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance for the years ended December 31, 2021, 2022 and 2023 were provided for net operating loss carry forward of certain group entities which reported loss because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of their future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. 14. INCOME TAX EXPENSES (Continued) Composition of income tax expense (Continued) The per share effect of the tax holidays are as follows: Year ended December 31, 2021 2022 2023 RMB RMB RMB Net income per share effect – basic 0.02 0.06 0.01 Net income per share effect – diluted 0.02 0.06 0.01 Deferred tax assets The significant components of the Group’s deferred tax assets were as follows: As of December 31, 2022 2023 RMB RMB Accrued expenses and others 21,935 22,219 Net operating loss carry forwards 151,463 193,865 Inventories write downs 1,040 3,397 Deferred income 86 97 Total deferred tax assets 174,524 219,578 Less: valuation allowance (161,864) (208,588) Deferred tax assets, net 12,660 10,990 Movement of valuation allowance Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year 32,926 54,261 161,864 Provided 21,335 107,603 46,724 Balance at end of the year 54,261 161,864 208,588 Uncertain tax positions The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2023, the Group did not have any significant unrecognized uncertain tax positions. According to the PRC Tax Administration and Collection Law, the statute of limitations is generally three years and can be extended to five years under special circumstances. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARES | |
ORDINARY SHARES | 15. ORDINARY SHARES The Company’s original Memorandum and Articles of Association authorizes the Company to issue 346,545,454 class A ordinary shares with a par value of US$0.0001 per share. As of December 31, 2017, the Company had 25,363,636 class A ordinary shares outstanding. Each ordinary share is entitled to one vote. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to prior rights of holders of all other classes of shares outstanding. In June 2018, the Board of Directors and the shareholders approved a transfer and surrender of shares plan, pursuant to which, Mr. Chen, who holds 33,818,182 class A ordinary shares on behalf of certain key management founders through Viomi Limited, transferred 16,145,454 class A ordinary shares to key management founders and surrendered the remaining 17,672,728 class A ordinary shares to the Company. On August 23, 2018, the Company issued 4,000,000 class A ordinary shares at par value to Mr. Chen’s wholly-owned entity Viomi Limited to award his contribution to the Company’s development. Such shares were immediately vested. The issuance of such shares is accounted for as a share-based compensation to Mr. Chen. The issuance date fair value was estimated to be approximately US$3.30 per share. On the same day, the Company effected a share split whereby each of the Company’s then authorized and outstanding ordinary shares and preferred shares, par value of $0.0001 each, was divided into ten ordinary shares and preferred shares of the same series, par value US$0.00001 each, respectively. All shareholders then surrendered 90% of their after-share-split outstanding shares back to the Company for cancellation. After the share split and the surrender of shares for cancellation, the number of the Company’s outstanding ordinary and preferred shares remained unchanged. The par value per ordinary share has been retroactively revised as if it had been adjusted proportion to the share split. Pursuant to the resolution of the shareholders of the Company on August 23, 2018, the Company’s authorized share capital became US$50,000 divided into 5,000,000,000 shares comprising of the (i) 4,800,000,000 Class A Ordinary Shares of a par value of US$0.00001 each, (ii) 150,000,000 Class B Ordinary Shares of a par value of US$0.00001 each and (iii) 50,000,000 shares of a par value of US$0.00001 each of such class or classes (however designated) as the board of directors may determine in accordance with post-offering amended and restated memorandum and articles of association. Holders of Class A Ordinary Shares and Class B Ordinary Shares have the same rights, except for voting rights and conversion rights. Each Class A Ordinary Share is entitled to one vote, and each Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. Upon any transfer of Class B Ordinary Shares by a holder to any person or entity other than holders of Class B Ordinary Shares or their affiliates, such Class B Ordinary Shares shall be automatically and immediately converted into the equivalent number of Class A Ordinary Shares. Immediately prior to the completion of the IPO, 16,145,454 issued Class A Ordinary Shares held by certain key management founders, 33,818,182 issued Pre-IPO Class B Ordinary Shares held by Red Better, and 67,636,364 issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. Upon the completion of the Company’s IPO in 2018, 34,200,000 Class A Ordinary Shares were issued and 18,181,818 Series A Preferred Shares have been converted into Class A Ordinary Shares. 15. ORDINARY SHARES (Continued) During the year ended December 31, 2020, 2,655,669 Class A Ordinary Shares were issued for the exercised share options. In addition, 7,295,454 Class B Ordinary Shares were converted into Class A Ordinary Shares. In March 2020, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$10,000 worth of its ADSs over the following 12 months. The share repurchase may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by the management. During the year ended December 31, 2020, the Company had repurchased 1,410,723 ADSs (equal to 4,232,169 Class A ordinary shares) for a consideration of US$8,030 on the open market, at a weighted average price of US$5.69 per ADS. The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the shareholders’ equity. As of December 31, 2020, the Company had 104,163,686 Class A Ordinary Shares and 103,554,546 Class B Ordinary Shares outstanding, respectively. During the year ended December 31, 2021, 3,011,064 Class A Ordinary Shares were issued for the exercised share options. In addition, 339,999 Class B Ordinary Shares were converted into Class A Ordinary Shares. Moreover, 1,997,970 Class A Ordinary Shares were repurchased by the Group. As of December 31, 2021, the Company had 105,516,779 Class A Ordinary Shares and 103,214,547 Class B Ordinary Shares outstanding, respectively. During the year ended December 31, 2022, 956,256 Class A Ordinary Shares were issued for the exercised share options. In addition, 359,997 Class B Ordinary Shares were converted into Class A Ordinary Shares. Moreover, 2,293,569 Class A Ordinary Shares were repurchased by the Group. As of December 31, 2022, the Company had 104,539,463 Class A Ordinary Shares and 102,854,550 Class B Ordinary Shares outstanding, respectively. During the year ended December 31, 2023, 176,883 Class A Ordinary Shares were issued for the exercised share options. In addition, 90,000 Class B Ordinary Shares were converted into Class A Ordinary Shares. Moreover, 2,903,802 Class A Ordinary Shares were repurchased by the Group. As of December 31, 2023, the Company had 101,902,544 Class A Ordinary Shares and 102,764,550 Class B Ordinary Shares outstanding, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 16. SHARE-BASED COMPENSATION Compensation expense recognized for share-based awards was as follows: Year ended December 31, 2021 2022 2023 RMB RMB RMB Share-based compensation expenses —Share options (a) 47,405 19,560 106 (a) Share options On September 17, 2015, the Board of Directors of the Company approved the establishment of 2015 Share Incentive Plan, the purpose of which is to provide an incentive for employees contributing to the Group. The 2015 Share Incentive Plan shall be valid and effective for 10 years from the grant date. The maximum number of shares that may be issued pursuant to all awards (including incentive share options) under 2015 Share Incentive Plan shall be 12,727,272 shares. In June 2018, the Board of Directors and shareholders of the Company approved the 2018 Share Incentive Plan. As of December 31, 2022, the maximum of shares that may be issued under the 2018 Share Incentive Plan was 26,008,171. For the year ended December 31, 2019, no share options were granted to employees. For the year ended December 31, 2020, the Company granted 19,175,500 share options to employees pursuant to the 2018 Share Incentive Plan. With respect to the share options granted, 40% of the options will be vested after 24 months of the grant date and the remaining 60% will be vested in three equal installments over the following 36 months. For the year ended December 31, 2021, the Company granted 3,840,000 share options to employees pursuant to the 2018 Share Incentive Plan. Among which, with respect to the share options granted, 40% of the options will be vested after 24 months of the vesting commencement date and the remaining 60% will be vested in three equal installments over the following 36 months. For the year ended December 31, 2022, the Company granted 1,010,000 share options to employees pursuant to the 2018 Share Incentive Plan. Among which, with respect to the share options granted, 40% of the options will be vested after 24 months of the vesting commencement date and the remaining 60% will be vested in three equal installments over the following 36 months. For the year ended December 31, 2023, the Company didn’t grante share options to employees pursuant to the 2018 Share Incentive Plan. The Group calculated the estimated fair value of the options on the respective grant dates using the binomial option pricing model. Assumptions used to determine the fair value of share options granted during 2022 and 2023 are summarized in the following table: As of December 31, 2022 2023 Risk-free interest rate 3.98 % NA Expected volatility 43.60 % NA Expected life of option (years) 10 NA Expected dividend yield — NA Fair value per ordinary share US$0.12 NA 16. SHARE-BASED COMPENSATION (Continued) (a) Share options (Continued) (1) Risk-free interest rate Risk-free interest rate was estimated based on the yield to maturity of China Government Bond with a maturity period close to the contractual term of the options. (2) Expected life of option (years) Expected life of option (years) represents the expected years to vest the options. (3) Volatility The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the contractual term of the options. (4) Dividend yield The dividend yield was estimated by the Group based on its expected dividend policy over the contractual term of the options. 16. SHARE-BASED COMPENSATION (Continued) (a) Share options (Continued) The Company also applied a discount for lack of marketability (“DLOM”), which was quantified by the black-Scholes option pricing model. Under this option-pricing method, which assumed that the put option is struck at the average price of the stock before the privately held shares can be sold, the cost of the put option was considered as a basis to determine the DLOM. A summary of the stock option activity under the 2015 Share Incentive Plan and 2018 Share Incentive Plan for the years ended December 31, 2021, 2022 and 2023 is included in the table below. Weighted average remaining Aggregate Number of Weighted average contractual intrinsic options exercise price (US$) life (years) value (US$) Outstanding at January 1, 2021 26,106,599 0.74 8.08 30,299 Granted 3,840,000 1.10 — — Forfeited (4,709,197) 0.81 — — Exercised (3,011,064) 0.43 — — Outstanding at December 31, 2021 22,226,338 0.80 7.41 26,813 Granted 1,010,000 1.10 — — Forfeited (2,537,466) 0.98 — — Exercised (956,256) 0.44 — — Outstanding at December 31, 2022 19,742,616 0.81 6.49 22,974 Granted — — — — Forfeited (5,047,307) 0.78 — — Exercised (176,883) 0.03 — — Outstanding at December 31, 2023 14,518,426 0.83 5.58 15,552,713 Exercisable as of December 31, 2023 10,480,426 0.72 4.96 12,576,573 Expected to vest as of December 31, 2023 3,634,200 1.10 7.17 2,678,526 The weighted average grant date fair value of options granted for the years ended December 31, 2022 and 2023 was RMB7.66 (US$1.1) and nil per option, respectively. As of December 31, 2022 and 2023, there was RMB21,025 and RMB5,454 of unrecognized compensation expenses related to the options, respectively. 16. SHARE-BASED COMPENSATION (Continued) (b) Restricted shares to an investee As described in note 1, the Group established Guangdong Lizi in July 2018 as a subsidiary of the Company. In November 2020, following the Group’s restructuring plan on its water purifiers business, the Group entered into an agreement with Sunglow to sell 1% of equity interest of Guangdong Lizi for a consideration of RMB175. Sunglow has paid up the consideration in December 2021 but is not entitled to any shareholder’s rights of Guangdong Lizi until the fulfilment of certain conditions pursuant to the supplemental agreement in November 2021. Under the requirement of ASC 718, the Group should recognize share-based compensation if there is a difference between the fair value of Guangdong Lizi’s 1% of equity interest and the consideration paid up by Sunglow on the date of capital injection. The Group calculated the estimated fair value of the options on the respective grant dates using the discounted cash flow model. As of December 31, 2023, there were RMB10,284 of unrecognized compensation expenses related to restricted shares granted to Sunglow for which the performance conditions had not been met and are expected to be recognized when the performance conditions are achieved under the requirement of ASC718. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME (LOSS) PER SHARE | |
NET INCOME (LOSS) PER SHARE | 17. NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period. Diluted net income per share is the amount of net income (loss) available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. Year ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Numerator for basic calculation - Net income (loss) attributable to ordinary shareholders of the Company 88,605 (275,515) (84,674) Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 209,551,821 208,341,011 206,360,586 Dilutive effect of share options 11,184,176 — — Denominator for diluted calculation 220,735,997 208,341,011 206,360,586 Basic net income (loss) per ordinary share 0.42 (1.32) (0.41) Diluted net income (loss) per ordinary share 0.40 (1.32) (0.41) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS Name Relationship with the Group Mr. Chen Founder Xiaomi Shareholder of the Group The Group’s relationship with Xiaomi Xiaomi is the Group’s strategic partner and shareholder. 18. RELATED PARTY TRANSACTIONS (Continued) The Group’s sales to Xiaomi are governed by a business cooperation agreement, pursuant to which Xiaomi is responsible for the distribution and sales of such products through their network and sales channels. The Group also sells products through Xiaomi’s online e-commerce channel Xiaomiyoupin.com, and is charged of commissions pursuant to a commission sales agreement. Transaction with Xiaomi Business cooperation agreement The current business corporation agreement entered into in 2023 with Xiaomi governs all the Group’s sales to Xiaomi. It will expire in March 2025. Under the business cooperation agreement, (i) certain products sold to Xiaomi are exclusively designed for and can only be sold to Xiaomi, (ii) Xiaomi shall purchase these products at a price that covers all of the Group’s costs of raw materials, outsourcing manufacture, models, logistics and paid intellectual property licensing fees, in connection with the manufacture and delivery of these products, and (iii) Xiaomi and the Group shall share gross profits, derived from sales of these products, the retail prices of which were set by Xiaomi and the Group together. Youpin commission sales agreement The Group has entered into a commission sales agreement with Xiaomi for the sale of the Group’s own branded products on an E-platform operated by Xiaomi, namely Youpin. The commission sales agreement expired on December 31, 2021. The agreement has been renewed in 2022 and it has become non-fixed-term agreement since then. Furthermore, this agreement may be terminated by Xiaomi with 30 days’ written notice. Under the commission sales agreement, the Group shall pay a service fee, calculated as certain portion of the sales price excluding customers’ refunds or as otherwise agreed by the parties with respect to specific product lines, as well as a deposit to Xiaomi. The retail prices of the Group’s products on Youpin’s platform shall be no higher than the sales price from any other e-commerce merchants or the Group’s official offline sales channel, including in the event of sales or promotion. Refer to Note 18 (5) to the consolidated financial statements for the commission expenses charged by Youpin for the years ended December 31, 2021, 2022 and 2023. 18. RELATED PARTY TRANSACTIONS (Continued) (1) Amount due from/to related parties As of December 31, 2022 2023 RMB RMB Accounts receivable from a related party: Xiaomi (a) 360,497 324,223 Other receivables from related parties: Sales receivable from Xiaomi (b) 24,802 — Other receivables from Xiaomi 219 218 Others — 6 Total 25,021 224 Amounts due to related parties: Purchase and other payable to Xiaomi (a) 7,245 8,216 Research and development expenses payable to Xiaomi 221 249 Selling and marketing expenses payable to Xiaomi (c) 4,082 10,003 Total 11,548 18,468 (2) Purchase from related parties Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi (a) 33,767 30,941 26,341 (3) Revenue from a related party Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi (a) 2,295,569 1,403,354 1,317,314 (4) Research and development expenses Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi (a) 3,484 2,791 716 18. RELATED PARTY TRANSACTIONS (Continued) (5) Selling and marketing expenses Year ended December 31, 2021 2022 2023 RMB RMB RMB Commission expenses charged by Xiaomi (b) 82,617 32,795 31,389 Other expenses charged by Xiaomi (b) 24,312 8,789 3,757 Total 106,929 41,584 35,146 (a) The Group both sells water purifiers and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi. The amount due from Xiaomi represents receivable arising from sales of water purifiers and other products. The balance due to Xiaomi represents payable arising from purchase of Xiaomi branded products and certain raw materials. (b) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group commission and technical service fees, also Xiaomi provides advertising and promotion service. The amount due from Xiaomi represents sales receivable net of commission, advertising and promotion service. (c) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group customer service fees. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 19. FAIR VALUE MEASUREMENTS Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. 19. FAIR VALUE MEASUREMENTS (continued) The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The Group did not have any other financial instruments that were required to be measured at fair value on a recurring basis as of December 31, 2022 and 2023 except for short-term investments (Note 6). The following table summarizes the Group’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2022 and 2023: Level 1 Level 2 Level 3 Total As of December 31, 2023 Short-term investments (i) — 70,369 — 70,369 As of December 31, 2022 Short-term investments (i) — 197,058 — 197,058 (i) Short-term investments represent structured deposits, and the Company values these short-term investments based on quoted prices of similar products provided by banks at the end of each period, and accordingly, the Company classifies the valuation techniques that use these inputs as Level 2. Apart from the short-term investments, the Company’s other financial instruments consist principally of cash and cash equivalents, restricted cash, short-term deposits, accounts and notes receivable, other receivables, amounts due to/from related parties, accounts and notes payable and certain accrued expenses. They are recorded at cost which approximates fair value. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | 20. LEASES The Group’s operating leases are principally for office space and facilities. At December 31, 2023, The Group’s operating leases had a weighted average discount rate of 4.75% and a weighted-average remaining term of 2.2 years. The components of lease expense were as follows: Year ended December 31, 2022 2023 RMB RMB Lease cost Operating lease expense 11,506 7,392 Short-term lease expense (i) 312 26 Total lease cost 11,818 7,418 (i) Includes leases with a term of one year or less. 20. LEASES (Continued) Supplemental cash flow information for leases was as follows: Year ended December 31, 2022 2023 RMB RMB Operating cash flows relating to operating leases 7,818 7,376 Lease liabilities arising from obtaining right-of-use assets 6,080 1,629 As of December 31, 2023, the aggregate future minimum rental payments under non-cancelable agreement were as follows: Rental RMB 2024 3,738 2025 1,942 2026 and after 999 Total future minimum rental payment 6,679 Less amount representing imputed interest (1,556) Present value of future minimum rental payments 5,123 Less current portion, recorded in other current liabilities (2,410) Long-term lease liabilities, recorded in other long-term liabilities 2,713 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES (a) Operating lease commitments The operating commitments presented above mainly consist of the short-term lease commitments and leases that have not yet commenced but that create significant rights and obligations for the Company, which are not included in operating lease right-of–use assets and lease liabilities. As of December 31, 2023, there were no future minimum commitments under non-cancelable agreements. (b) Capital and other commitment Capital expenditures contracted for at the balance sheet dates but not recognized in the consolidated financial statements are as follows: As of December 31, 2022 2023 RMB RMB Property, plant and equipment 89,029 42,185 (c) Legal proceedings From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the Group’s financial position and results of operations for the periods in which the unfavorable outcome occurs. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 22. Relevant PRC laws and regulations permit payments of dividends by the Group’s entities incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s entities in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Company’s entities incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion amounted to RMB115,751 and RMB110,705 as of December 31, 2022 and 2023. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiaries and VIE to satisfy any obligations of the Company. For the year ended December 31, 2023, the Company performed a test on the restricted net assets of subsidiaries and VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets do not exceed 25% of the consolidated net assets of the Company as of December 31, 2023 and the condensed financial information of the Company are not required to be presented. Cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily restrict the ability of the PRC subsidiaries and VIEs and their subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligation. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. |
Consolidation | (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiaries. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Lequan and ultimately the Company hold all the variable interests of the VIE and has been determined to be the primary beneficiary of the VIE. |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include sales returns, inventory valuation, product warranties, share-based compensation, allowance for doubtful accounts and the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. |
Foreign currency translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and British Virgin Islands are United States dollar (“US$”), while the functional currency of the Group’s entities in the PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiary in Hong Kong and British Virgin Islands, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, and incomes are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange (losses) gains, net in the consolidated statement of comprehensive income. |
Convenience translation | (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income (loss) and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB7.0999 on December 29, 2023 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, and all highly liquid investments with original maturities of three months or less, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. |
Restricted cash | (g) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets. Restricted cash is included in the total cash and cash equivalents and restricted cash in the consolidated statements of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Group’s restricted cash mainly represents security deposits held in designated bank accounts for issuance of bank acceptance notes. |
Short-term deposits | (h) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income. |
Short-term investments | (i) Short-term investments In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts receivable | (j) Accounts receivable Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. On January 1, 2020, the Company adopted ASC326, “Financial Instruments—Credit Losses” using modified retrospective transition approach. The Group provides an allowance against accounts receivable to the amount management reasonably believe will be collected. The Group writes off trade receivable when they are deemed uncollectible. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. Accounts receivable have been grouped based on shared credit risk characteristics and days past due to estimate, taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors. |
Inventories | (k) Inventories Inventories are stated at the lower of cost or net realizable value (“NRV”). Inventory costs are calculated on the actual cost basis including expenses that are directly or indirectly incurred in the purchase, and production of manufactured product. Expenses include the cost of materials, consignment manufacturing cost and other direct costs. Cost is determined using the weighted average method. The Group assesses the valuation of inventory and periodically writes down the value for inventories when their costs are lower than the NRV. The NRV is determined based on the estimated net selling prices less the estimated costs to completion and other costs necessary to make the sale. Determination of estimated net selling prices of finished goods, estimated costs to completion and other costs necessary to make the sale required significant management judgements, taking into consideration historical actual information and expected future market trends. |
Long-term deposits | (l) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities of more than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income. |
Property, plant and equipment, net | (m) Property, plant and equipment, net Property, plant and equipment are carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives and residual value. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Estimated useful lives Residual rate Buildings 20 years 5 % Computers and equipment 2-10 years 0%-5 % Vehicle 4 years 5 % Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. Construction in progress represents property, plant and equipment under construction and pending installation and is stated at cost less accumulated impairment losses, if any. Completed assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use. Interest expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. |
Impairment of long-lived assets | (n) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the longlived assets to the estimated undiscounted future cash flows expected to result from the use of the assetsIf the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of carrying amount over the recoverable amount of the assets, using the expected future discounted cash flows. No impairments of long-lived assets were recognized as of December 31, 2022 and 2023. |
Long-term investment | (o) Long-term investment For an investee over which the Company has the ability to exercise significant influence, but does not own a majority equity interest or otherwise control, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the Company’s share of the investee’s results of operations is included in interest income and investment income, netin the consolidated statements of comprehensive income. |
Land use rights | (p) Land use rights Land use rights are recorded at cost less accumulated amortization and impairment, if any. Amortization is calculated on a straight-line basis over the estimated useful lives which are 50 years that represent the terms of land use rights certificate. |
Intangible assets | (q) Intangible assets Intangible assets mainly consist of software and license. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Software 1 - 10 years License 3 - 10 years |
Leases | (r) Leases The Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessees to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. |
Revenue recognition | (s) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) and subsequently, the FASB issued several amendments which amend certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as “ASC 606”). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group will enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Group adopted ASC 606 for all periods presented. The Group’s revenue is primarily derived from (i) IoT Home portfolio including sweeper robots, air conditioning systems and other smart devices, (ii) Home water solutions, which are composed of smart water purification systems, (iii) consumable products complementary to the Group’s IoT smart home products, such as water purifier filters, (iv) Small appliances and others refer to the value-added businesses. Refer to Note 13 to the consolidated financial statements for disaggregation of the Group’s revenue by type of product and service for the years ended December 31, 2021, 2022 and 2023. 1) The Group conducts its business through various contractual arrangements, the following table disaggregates the Group’s revenue by type of contract for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 RMB RMB RMB Sales of products to Xiaomi 2,295,569 1,403,354 1,317,314 —Xiaomi-branded products 2,021,117 1,154,689 1,158,983 —Viomi-branded products 274,452 248,665 158,331 Sales of products and rendering of services to third-party customers 3,008,266 1,829,377 1,176,072 5,303,835 3,232,731 2,493,386 a) Sales to Xiaomi The Group generated a substantial portion of its revenues from sales of products to Xiaomi. Under the cooperation agreement entered into between the Group and Xiaomi, the Group is responsible for design, research, development, production and delivery of designated products using the brand name of “Xiaomi” (“Xiaomi-branded products”). Xiaomi is responsible for commercial distributions and sales. The Group also sells some Viomi-branded products to Xiaomi. Revenue is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue does not meet the criteria to be recognized over time since 1) even if the products use “Xiaomi” brand, it does not require significant rework to make them suitable to be sold to other customers, 2) under the cooperation agreement, the Group does not have the right of payment for the work performed to date. For a majority of types of products sold to this customer, the selling price is a fixed amount as agreed by both parties. For other types of products sold to this customer, the sales arrangement includes two installment payments. The first installment is priced to recover the costs incurred by the Group in developing, producing and shipping the products to this customer and is payable to the Group upon acceptance by the customer after delivery. The Group is also entitled to receive a potential second installment payment calculated as certain portion of the future gross profits from commercial sales made by this customer. Accordingly, the Group determines the sales price as the fixed first installment payment plus the variable second installment payment to the extent that it is probable that revenue reversal will not occur when settling with the customer subsequently. The Group estimates the variable consideration using the expected value method. In assessing the variable second installment payment, the Group takes into consideration of the historical experience with the customer, selling price of the same or similar products as at the report date as well as the recent market trend. Water purifiers products were previously entitled to second instalment payments but second instalment payment arrangement has stopped for water purifiers products since the first quarter of 2020. For the years ended December 31, 2021, 2022 and 2023, net revenues earned from second installment payment arrangement represented 2.0%, 2.8% and 2.8% of total revenue from Xiaomi, respectively. Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling price. The standalone selling price of the products is determined based on adjusted market assessment approach by estimating the price the customer is willing to pay for the product without installation service. For the standalone selling price of the installation services, the Group determines it by referring to actual costs charged by the third-party vendors, plus an estimated profit margin of 5% based on consideration of both company specific and relevant market factors. 2) Sales returns and sales incentives - Sales to leading e-commerce platforms The Group’s sales to leading e-commerce platforms started in 2018. As stipulated in the contracts, slow-moving goods are those unsold products after they are controlled by the e-commerce platforms for more than 30 days or 45 days or 60 days, depending on the different categories of products. The Group shall coordinate with the e-commerce platforms to sell the slowing-moving products to end customers through promotions within 30 or 60 days, otherwise, the e-commerce platforms can (i) return such slow-moving products, or (ii) sell on discount as determined by the e-commerce platforms. The Group shall bear all losses caused by such discounted sales. Based on the Group’s history of cooperation with the e-commerce platforms and the pattern that the e-commerce platforms dealt with slow-moving goods, the Group estimates that slow-moving goods will be returned to the Group instead of being sold through discounted sales by the e-commerce platforms. Under ASC 606, a right of return is not a separate performance obligation, but it affects the estimated transaction price for transferred goods. Revenue is only recognized for those products that are not expected to be returned. The estimate of expected returns should be determined in the same way as other variable consideration. Based on historical information and other relevant evidence, including the expected sales and inventory level of the e-commerce platforms, the Group assesses if it is probable there will be no significant reversal of cumulative revenue, and recognizes those sales as revenue. For the years ended December 31, 2021, 2022 and 2023, the expected sales return was RMB5,593, RMB2,351 and RMB839. Accordingly the Group recognizes an expected return asset of RMB3,189, RMB1,350 and RMB508 and a refund liability of RMB6,320, RMB2,656 and RMB948 as of December 31, 2021, 2022 and 2023, respectively. The Group would update its estimate of expected returns at each period end. The expected return asset is presented and assessed for impairment separately from the refund liability. The Group would assess the expected return asset for impairment, and adjust the value of the asset if it becomes impaired. Further, the Group might provide various consideration to the e-commerce platforms, such as gross margin guarantee, advertising and promotion fees, in the form of cash, or directly reducing amounts owed to the Group by the e-commerce platforms. The Group evaluates each type of incentives or fees to be paid in accordance with ASC 606. Considering that the Group either does not receive any service from the e-commerce platforms or cannot elect to engage another vendor to provide similar advertising services on a standalone basis, the Group reduces the transaction price for the sale of products by the amount of various consideration payable to the e-commerce platforms. - 7 days unconditional sales return Under the consumer protection law, end customers have an unconditional right to return the products purchased through online platforms within 7 days. The Group bases its estimates of sales return on historical results. For the years ended December 31, 2021, 2022 and 2023, the amount of sales return was insignificant. The Group may provide sales incentives in the forms of discounts to end customers through online platforms in a bundle transaction. Revenue, recognized on a net basis after such sales incentives, are allocated based on the relative standalone selling prices for respective products. 3) Warranty The Group offers product warranty pursuant to standard product quality required by consumer protection law. The warranty period is calculated starting from the date when products are sold to the end customers. The Group has the obligation, at the customer’s sole discretion, to either repair or replace the defective product. The customers cannot separately purchase the warranty and the warranty doesn’t provide the customer with additional service other than assurance that the product will function as expected. Therefore, these warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, an estimate of warranty expenses is recorded. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as cost of revenues. 4) Value added taxes Value added taxes (“VAT”) on sales is calculated at 13% after April 1, 2019. The Group reports revenue net of VAT. Subsidiaries and VIEs that are VAT general taxpayers are allowed to offset qualified VAT paid against their output VAT liabilities. 5) Contract balances Key customers, including Xiaomi and third-party customers, are entitled to a credit term. The expected length of time between the products being transferred to customers and when they pay for those products is short. There is no difference between the amount of promised consideration and the cash selling price of the promised products. Therefore, the Group concludes that the contracts with these key customers generally do not include a significant financing component. The allowance for doubtful accounts reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The Group determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. The amount of the allowance for doubtful accounts is recognized as expenses. As of December 31, 2022 and 2023 accounts and notes receivable were RMB689,984 and RMB631,760, respectively. During the year ended December 31, 2022, the Group recognized impairments, net of recoveries, for accounts receivable from customers amounted to RMB53,082 and in the year ended December 31, 2023, the Group reverse RMB7,101. Contract liabilities consist of deferred revenue related to the Group’s provision of installation services and membership services, where there is still an obligation to be fulfilled by the Group. The contract liabilities will be recognized as revenue when all of the revenue recognition criteria are met. As of December 31, 2022 and 2023, deferred revenue were RMB2,130 and RMB3,318, respectively. During the years ended December 31, 2022 and 2023, the Group recognized revenue of installation services amounted to RMB3,154 and RMB2,130, respectively, that was included in the corresponding contract liability balance at the beginning of the years. The Group expects to recognize approximately RMB3,285 and RMB33 of the unearned amount for the Group’s remaining performance obligations related to installation services and membership service in 2024, respectively. During the years ended December 31, 2022 and 2023, the Group does not have any arrangement where the performance obligations have already been satisfied in the past period, but the corresponding revenue is only recognized in a later period. |
Cost of revenues | (t) Cost of revenues Cost of revenues consists primarily of material costs, warranty, consignment manufacturing cost, salaries and benefits for staff engaged in production activities and related expenses that are directly attributable to the production of products. |
Research and development expenses | (u) Research and development expenses Research and development expenses primarily consist of salaries and benefits as well as share-based compensation for research and development personnel, materials, general expenses and depreciation expenses associated with research and development activities. |
Selling and marketing expenses | (v) Selling and marketing expenses Selling and marketing expenses consist primarily of (i) advertising and market promotion expenses, (ii) shipping expenses and (iii) salaries and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB173,642, RMB187,417 and RMB123,083 for the years ended December 31, 2021, 2022 and 2023. The shipping expenses amounted to RMB248,609, RMB200,695 and RMB109,835 for the years ended December 31, 2021, 2022 and 2023, respectively. |
General and administrative expenses | (w) General and administrative expenses General and administrative expenses consist primarily of (i) share-based compensation for management and administrative personnel, and (ii) salaries and welfare for general and administrative personnel. |
Government subsidies | (x) Government subsidies Government subsidies represent tax refund and government grants received from local government authorities to encourage the Group’s technology and innovation. The Group records such government subsidies as other income in the consolidated statements of comprehensive income when it has fulfilled all of its obligation related to the subsidy. The Group recorded RMB30,147, RMB23,192 and RMB16,335 of subsidy income for the years ended December 31, 2021, 2022 and 2023, respectively. |
Employee benefits | (y) Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiary and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB34,291, RMB 21,465 and RMB26,994 for the years ended December 31, 2021, 2022 and 2023, respectively. |
Share-based compensation | (z) Share-based compensation Share-based compensation expenses arise from share -based awards, mainly including share options for the purchase of ordinary shares for the periods presented. The Company accounts for share-based awards granted to the employees in accordance with ASC 718 Stock Compensation. For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee share option exercise behavior, risk-free interest rates and expected dividends. The fair value of the ordinary shares is assessed using the income approach/discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the service period requirement, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. |
Income taxes | (aa) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in statement of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Group did not recognize any interest and penalties associated with uncertain tax positions for the years ended December 31, 2021, 2022 and 2023. As of December 31, 2022 and 2023, the Group did not have any significant unrecognized uncertain tax positions. |
Comprehensive income | (bb) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income, net of tax. Other comprehensive income refers to revenue, expenses, and gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The Group’s other comprehensive income consists of foreign currency translation adjustments from its entities not using the RMB as their functional currency. Comprehensive income is reported in the consolidated statements of comprehensive income. |
Statutory reserves | (cc) Statutory reserves The Company’s subsidiaries and VIEs established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Company’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their annual after-tax profits (as determined under generally accepted accounting principles in the PRC(“PRC GAAP”)) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the annual after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion. In addition, in accordance with the PRC Company Laws, the Group’s VIEs registered as Chinese domestic company must make appropriations from its annual after-tax profits as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the annual after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund are a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of all employees. None of these reserves are allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. During the years ended December 31, 2021, appropriations to statutory reserve funds amounted to RMB1,756. There were no appropriations to statutory reserve funds during the year ended December 2022 and 2023. Statutory reserve funds amounting to RMB12,517 and RMB 12,517 were recognized in additional paid-in capital as of December 31, 2022 and 2023, respectively. |
Income per share | (dd) Income per share Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Net losses are not allocated to other participating securities if based on their contractual terms they are not obligated to share the losses. Diluted income per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted income per share calculation when inclusion of such shares would be anti-dilutive. |
Related parties | (ee) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Segment reporting | (ff) Segment reporting Based on the criteria established by ASC 280 “Segment Reporting”, the Group’s chief operating decision maker has been identified as the Chairman of the Board of Directors/CEO, who reviews consolidated results of the Group when making decisions about allocating resources and assessing performance. The Group has internal reporting of revenue, cost and expenses by nature as a whole. Hence, the Group has only one operating segment. The Company is domiciled in the Cayman Islands while the Group mainly operates its businesses in the PRC and earns a majority of the revenues from external customers attributed to the PRC. |
Current expected credit losses | (gg) Current expected credit losses The Group’s accounts and notes receivable and other receivables from related parties and third parties are within the scope of ASC Topic 326. The Group has identified the relevant risk characteristics of its customers and the related accounts and notes receivable and other receivables based on their credit rating. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Group’s receivables. Additionally, macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. For the year ended December 31, 2021, 2022 and 2023, the Group recorded expected credit loss of RMB25,541, RMB52,997 and RMB13,894, respectively in general and administrative expenses. As of December 31, 2022 and 2023, the expected credit loss provision for the accounts and notes receivable and other receivables is RMB87,854 and RMB80,734 respectively. The decrease is primarily due to the fact that management has written of certain long aged balances which were deemed uncollectible. The following table summarizes the activity in the allowance for credit losses related to accounts and notes receivable and other receivables from related parties for the year ended December 31, 2022 and 2023: Year ended December 31, 2022 2023 RMB RMB Balance at beginning of the year 34,857 87,854 Current year provision 61,336 24,915 Reversals (8,339) (11,021) Write off — (21,014) Balance at end of the year 87,854 80,734 |
Recently issued accounting pronouncements not yet adopted | (hh) Recently issued accounting pronouncements not yet adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment’s performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in us including the additional required disclosures when adopted. The Group are currently evaluating the provisions of this ASU and expect to adopt them for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in the Group’s consolidated financial statements, once adopted. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of principal subsidiaries and VIEs | As of December 31, 2023, details of the Company’s principal subsidiaries and VIEs were as follows: Percentage of Place of Date of beneficial Principal incorporation incorporation ownership activities Subsidiaries: Viomi HK Hong Kong January 30, 2015 100 % Investment holding Lequan PRC May 15, 2015 100 % Investment holding Codream HK Hong Kong August 20, 2019 100 % Investment holding Yunmi Hulian PRC December 9, 2019 100 % Investment holding Zhumeng Hulian PRC October 14, 2020 100 % Investment holding Guangdong Lizi PRC July 26, 2018 100 % Home appliance development and sales Guangzhou interconnect Technology Co., Ltd. PRC December 7, 2020 100 % Home appliance development and sales VIEs: Foshan Viomi PRC May 6, 2014 100 % Home appliance development and sales Beijing Viomi PRC January 12, 2015 100 % No substantial business Subsidiaries of Foshan Viomi: Guangdong AI Touch Technology Co., Ltd. (“AI Touch”) PRC January 30, 2019 VIE’s subsidiary Home appliance development and sales Foshan Xiaoxian Hulian Electric Appliances Technology Co., Ltd. (“Foshan Xiaoxian”) PRC October 12, 2016 VIE’s subsidiary Home appliance development and sales |
Schedule of financial statement amounts and balances of VIEs | As of December 31, 2022 2023 RMB RMB Cash and cash equivalents 335,476 285,338 Short-term investments 189,275 51,864 Accounts receivable from third parties (net of allowance of RMB72,193 and RMB63,779 as of December 31, 2022 and 2023, respectively) 150,686 189,983 Accounts receivable from a related party (net of allowance of RMB272 and RMB320 as of December 31, 2022 and 2023, respectively) 360,497 319,842 Amounts due from Group companies 707,458 725,171 Inventories 281,649 248,614 Other assets 427,598 503,423 Total assets 2,452,639 2,324,235 Accounts and notes payable 377,839 348,876 Amounts due to Group companies 1,043,056 1,002,435 Accrued expenses and other liabilities 231,325 165,379 Other liabilities 119,311 236,979 Total liabilities 1,771,531 1,753,669 Year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue from Group companies (1) 131,379 220,607 114,889 Revenue from a related party and third parties 4,859,414 2,805,557 2,123,580 Cost from Group companies 1,291,468 49,359 144,897 Cost from a related party and third parties 2,870,809 2,355,718 1,688,405 Net loss (60,908) (237,517) (81,057) Net cash used in operating activities with Group companies (794,936) (958,297) (597,354) Net cash provided by operating activities with third parities 1,248,860 537,068 632,235 Net cash (used in) provided by investing activities with Group companies (83,325) 7,280 16,866 Net cash (used in) provided by investing activities with third parties (233,934) 461,320 (82,035) Net cash used in financing activities with Group (156,406) (60,361) (44,574) Net cash provided by financing activities with third parties — — 100,000 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of property plant and equipment estimated useful lives and residual rate | Estimated useful lives Residual rate Buildings 20 years 5 % Computers and equipment 2-10 years 0%-5 % Vehicle 4 years 5 % |
Schedule of amortization of finite-lived intangible assets estimated useful lives | Estimated useful lives Software 1 - 10 years License 3 - 10 years |
Schedule of disaggregates the Group's revenue by type of contract | Year ended December 31, 2021 2022 2023 RMB RMB RMB Sales of products to Xiaomi 2,295,569 1,403,354 1,317,314 —Xiaomi-branded products 2,021,117 1,154,689 1,158,983 —Viomi-branded products 274,452 248,665 158,331 Sales of products and rendering of services to third-party customers 3,008,266 1,829,377 1,176,072 5,303,835 3,232,731 2,493,386 |
Schedule of activity in allowance for credit losses related to accounts and notes receivable and other receivables from related parties | Year ended December 31, 2022 2023 RMB RMB Balance at beginning of the year 34,857 87,854 Current year provision 61,336 24,915 Reversals (8,339) (11,021) Write off — (21,014) Balance at end of the year 87,854 80,734 |
CONCENTRATION AND RISKS (Tables
CONCENTRATION AND RISKS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Risk | |
Concentration and risks | |
Summary of concentration of risk | As of December 31, 2022 2023 RMB RMB Company A 125,971 52 % 133,882 59 % As of December 31, 2022 2023 RMB RMB Xiaomi 360,497 100 % 324,223 100 % As of December 31, 2022 2023 RMB RMB Xiaomi 25,021 100 % 218 97 % |
Revenue Concentration Risk | |
Concentration and risks | |
Summary of concentration of risk | Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi 2,295,569 43 % 1,403,354 43 % 1,317,314 53 % |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND CASH EQUIVALENTS | |
Summary of cash and cash equivalents | As of December 31, 2022 As of December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB 440,557 440,557 345,575 345,575 US$ 42,584 296,582 20,633 146,140 Total 737,139 491,715 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
Schedule of inventories | As of December 31, 2022 2023 RMB RMB Finished goods 207,078 295,967 Raw materials 349,226 212,286 Gross 556,304 508,253 Less: provisions for inventories write-downs (54,013) (66,034) Net 502,291 442,219 |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND OTHER ASSETS | |
Schedule of prepaid expenses and other assets | As of December 31, 2022 2023 RMB RMB Advances to suppliers 139,306 113,634 Other receivables 44,697 73,110 Prepayment for equipment 15,976 15,855 Lease hold improvement 5,234 2,389 Expected return assets 1,351 508 Total 206,564 205,496 Less: non-current portion (22,856) (18,824) Prepaid expenses and other assets-current portion 183,708 186,672 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment, net | As of December 31, 2022 2023 RMB RMB Computers and equipment 266,085 294,558 Buildings — 258,910 Construction in progress 166,480 — Vehicle 759 2,161 Total 433,324 555,629 Less: accumulated depreciation (196,892) (212,644) Property, plant and equipment, net 236,432 342,985 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LAND USE RIGHTS, NET | |
Summary of land use rights, net | As of December 31, 2022 2023 RMB RMB Land use rights 63,618 63,618 Less: Accumulated amortization (3,169) (4,441) Land use right, net 60,449 59,177 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | As of December 31, 2022 2023 RMB RMB Accrued payroll and welfare 76,468 76,521 Freight payable 29,533 18,556 Deposit from suppliers 36,909 43,872 Installation fee payables 6,609 7,243 Product warranty 28,292 35,213 Marketing and promotion expenses 47,124 23,657 Payment for purchase of property 16,075 53,235 Other tax payable 3,474 1,572 Professional fee payables 4,265 6,866 Refund liabilities 2,656 948 Other current liabilities 65,685 47,297 Total 317,090 314,980 Less: non-current portion (8,245) (12,766) Accrued expenses and other liabilities-current portion 308,845 302,214 |
Schedule of product warranty activities | Product Warranty RMB Balance at December 31, 2021 28,796 Provided during the year 51,161 Utilized during the year (51,665) Balance at December 31, 2022 28,292 Provided during the year 63,767 Utilized during the year (56,846) Balance at December 31, 2023 35,213 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE | |
Schedule of disaggregation of revenue by type of contract | Year ended December 31, 2021 2022 2023 RMB RMB RMB Sales of products - IoT Home portfolio 3,400,966 1,619,941 1,220,852 - Home water solutions 742,912 681,054 604,012 - Consumables 367,021 358,442 314,372 - Small appliances and other products 708,260 494,943 298,410 Total of sales of products 5,219,159 3,154,380 2,437,646 Rendering of services 84,676 78,351 55,740 Total 5,303,835 3,232,731 2,493,386 |
INCOME TAX EXPENSES (Tables)
INCOME TAX EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAX EXPENSES | |
Schedule of current and deferred components of income taxes | Year ended December 31, 2021 2022 2023 RMB RMB RMB Current tax expenses 26,854 (4,470) 65 Deferred tax (benefit) expense (21,115) 22,644 1,670 Income tax expenses 5,739 18,174 1,735 |
Schedule of reconciliation between income tax expenses computed by applying PRC enterprise tax rate before income taxes and actual provision | Year ended December 31, 2021 2022 2023 RMB RMB RMB Income (loss) from operations in the PRC 89,126 (272,186) (80,815) Income (loss) from overseas entities 5,504 7,730 (6,783) Income (loss) before income tax 94,630 (264,456) (87,598) Tax expense (benefit) at PRC enterprise income tax rate of 25% 23,658 (66,114) (21,899) Income tax on tax holiday (1) (16,872) 6,310 (6,743) Tax effect of permanent differences (2) (28,303) (30,550) (18,621) Change in valuation allowance (3) 22,153 107,603 46,724 Effect of share-based compensation 7,111 2,934 16 Effect of income tax in jurisdictions other than the PRC (2,008) (2,009) 2,258 Income tax expenses 5,739 18,174 1,735 (1) The income tax on tax holidays represents the effect of preferential income tax rate enjoyed by Foshan Viomi, Guangdong Lizi and Yunmi Hulian. Foshan Viomi was qualified as an HNTE and enjoyed the beneficial tax rate of 15% for the three years ended December 31, 2021, 2022 and 2023. Foshan Viomi applied for HNTE qualification renewal in 2022, and obtained approval in December 2022. It is entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2022 and should apply for HNTE qualification renewal in 2025. Guangdong Lizi applied for HNTE qualification renewal in 2023. It entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2023 and should apply for HNTE qualification renewal in 2026. Yunmi Hulian applied for the HNTE qualification and obtained approval in December 2021. It is entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2021 and should apply for HNTE qualification renewal in 2024. (2) The permanent book-tax differences mainly consisted of R&D super deductions. (3) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance for the years ended December 31, 2021, 2022 and 2023 were provided for net operating loss carry forward of certain group entities which reported loss because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of their future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. |
Schedule of per share effect of tax holidays | Year ended December 31, 2021 2022 2023 RMB RMB RMB Net income per share effect – basic 0.02 0.06 0.01 Net income per share effect – diluted 0.02 0.06 0.01 |
Schedule of significant components of deferred tax assets | As of December 31, 2022 2023 RMB RMB Accrued expenses and others 21,935 22,219 Net operating loss carry forwards 151,463 193,865 Inventories write downs 1,040 3,397 Deferred income 86 97 Total deferred tax assets 174,524 219,578 Less: valuation allowance (161,864) (208,588) Deferred tax assets, net 12,660 10,990 |
Schedule of movement of valuation allowance | Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year 32,926 54,261 161,864 Provided 21,335 107,603 46,724 Balance at end of the year 54,261 161,864 208,588 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | |
Summary of compensation expense recognized for share-based awards | Year ended December 31, 2021 2022 2023 RMB RMB RMB Share-based compensation expenses —Share options (a) 47,405 19,560 106 |
Summary of assumptions used to determine the fair value of share options granted | As of December 31, 2022 2023 Risk-free interest rate 3.98 % NA Expected volatility 43.60 % NA Expected life of option (years) 10 NA Expected dividend yield — NA Fair value per ordinary share US$0.12 NA |
Summary of stock option activity | Weighted average remaining Aggregate Number of Weighted average contractual intrinsic options exercise price (US$) life (years) value (US$) Outstanding at January 1, 2021 26,106,599 0.74 8.08 30,299 Granted 3,840,000 1.10 — — Forfeited (4,709,197) 0.81 — — Exercised (3,011,064) 0.43 — — Outstanding at December 31, 2021 22,226,338 0.80 7.41 26,813 Granted 1,010,000 1.10 — — Forfeited (2,537,466) 0.98 — — Exercised (956,256) 0.44 — — Outstanding at December 31, 2022 19,742,616 0.81 6.49 22,974 Granted — — — — Forfeited (5,047,307) 0.78 — — Exercised (176,883) 0.03 — — Outstanding at December 31, 2023 14,518,426 0.83 5.58 15,552,713 Exercisable as of December 31, 2023 10,480,426 0.72 4.96 12,576,573 Expected to vest as of December 31, 2023 3,634,200 1.10 7.17 2,678,526 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME (LOSS) PER SHARE | |
Summary of net income per share, basic and diluted | Year ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Numerator for basic calculation - Net income (loss) attributable to ordinary shareholders of the Company 88,605 (275,515) (84,674) Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 209,551,821 208,341,011 206,360,586 Dilutive effect of share options 11,184,176 — — Denominator for diluted calculation 220,735,997 208,341,011 206,360,586 Basic net income (loss) per ordinary share 0.42 (1.32) (0.41) Diluted net income (loss) per ordinary share 0.40 (1.32) (0.41) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
Summary of related party transaction Relationship | Name Relationship with the Group Mr. Chen Founder Xiaomi Shareholder of the Group |
Summary of related party transactions | (1) Amount due from/to related parties As of December 31, 2022 2023 RMB RMB Accounts receivable from a related party: Xiaomi (a) 360,497 324,223 Other receivables from related parties: Sales receivable from Xiaomi (b) 24,802 — Other receivables from Xiaomi 219 218 Others — 6 Total 25,021 224 Amounts due to related parties: Purchase and other payable to Xiaomi (a) 7,245 8,216 Research and development expenses payable to Xiaomi 221 249 Selling and marketing expenses payable to Xiaomi (c) 4,082 10,003 Total 11,548 18,468 (2) Purchase from related parties Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi (a) 33,767 30,941 26,341 (3) Revenue from a related party Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi (a) 2,295,569 1,403,354 1,317,314 (4) Research and development expenses Year ended December 31, 2021 2022 2023 RMB RMB RMB Xiaomi (a) 3,484 2,791 716 (5) Selling and marketing expenses Year ended December 31, 2021 2022 2023 RMB RMB RMB Commission expenses charged by Xiaomi (b) 82,617 32,795 31,389 Other expenses charged by Xiaomi (b) 24,312 8,789 3,757 Total 106,929 41,584 35,146 (a) The Group both sells water purifiers and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi. The amount due from Xiaomi represents receivable arising from sales of water purifiers and other products. The balance due to Xiaomi represents payable arising from purchase of Xiaomi branded products and certain raw materials. (b) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group commission and technical service fees, also Xiaomi provides advertising and promotion service. The amount due from Xiaomi represents sales receivable net of commission, advertising and promotion service. (c) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group customer service fees. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
Summary of assets measured at fair value on recurring basis | Level 1 Level 2 Level 3 Total As of December 31, 2023 Short-term investments (i) — 70,369 — 70,369 As of December 31, 2022 Short-term investments (i) — 197,058 — 197,058 (i) Short-term investments represent structured deposits, and the Company values these short-term investments based on quoted prices of similar products provided by banks at the end of each period, and accordingly, the Company classifies the valuation techniques that use these inputs as Level 2. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
Summary of components of lease expense | Year ended December 31, 2022 2023 RMB RMB Lease cost Operating lease expense 11,506 7,392 Short-term lease expense (i) 312 26 Total lease cost 11,818 7,418 (i) Includes leases with a term of one year or less. |
Summary of supplemental cash flow information for leases | Year ended December 31, 2022 2023 RMB RMB Operating cash flows relating to operating leases 7,818 7,376 Lease liabilities arising from obtaining right-of-use assets 6,080 1,629 |
Summary of aggregate future minimum rental payments under non-cancelable agreement | As of December 31, 2023, the aggregate future minimum rental payments under non-cancelable agreement were as follows: Rental RMB 2024 3,738 2025 1,942 2026 and after 999 Total future minimum rental payment 6,679 Less amount representing imputed interest (1,556) Present value of future minimum rental payments 5,123 Less current portion, recorded in other current liabilities (2,410) Long-term lease liabilities, recorded in other long-term liabilities 2,713 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Summary of capital and other commitment | As of December 31, 2022 2023 RMB RMB Property, plant and equipment 89,029 42,185 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
Sep. 25, 2018 $ / shares shares | Aug. 23, 2018 USD ($) Vote $ / shares shares | Aug. 23, 2018 USD ($) $ / shares shares | Jul. 31, 2015 USD ($) $ / shares shares | Jul. 31, 2015 CNY (¥) shares | Jul. 31, 2015 USD ($) $ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2018 USD ($) shares | Dec. 31, 2022 $ / shares shares | Nov. 30, 2020 CNY (¥) | Sep. 24, 2018 shares | Aug. 22, 2018 $ / shares | Jun. 30, 2018 shares | May 31, 2014 CNY (¥) | |
Organization and principal activities | ||||||||||||||
Entity incorporation date | 2015-01 | |||||||||||||
Common stock, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||
Preferred shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.0001 | |||||||||||
Stock split ratio | 10 | |||||||||||||
Surrender of outstanding shares after share split | 90 | |||||||||||||
Foshan Viomi and Beijing Viomi | ||||||||||||||
Organization and principal activities | ||||||||||||||
Percentage of beneficial ownership | 100% | 100% | ||||||||||||
Class A Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Shares issued | 34,200,000 | |||||||||||||
Ordinary shares, issued | 4,000,000 | 4,000,000 | 101,902,544 | 104,539,463 | 33,818,182 | |||||||||
Ordinary shares, transferred | 16,145,454 | |||||||||||||
Ordinary shares, surrendered | 17,672,728 | |||||||||||||
Common stock, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.00001 | $ 0.00001 | ||||||||||
Ordinary shares, shares authorized | 346,545,454 | 346,545,454 | 4,800,000,000 | 4,800,000,000 | ||||||||||
Class B Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Ordinary shares, issued | 102,764,550 | 102,854,550 | ||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Ordinary shares, shares authorized | 150,000,000 | 150,000,000 | ||||||||||||
IPO | ||||||||||||||
Organization and principal activities | ||||||||||||||
Shares issued | 34,200,000 | |||||||||||||
Ordinary shares, shares authorized | 5,000,000,000 | 5,000,000,000 | ||||||||||||
Dividends value of shares authorized | $ | $ 50,000 | $ 50,000 | ||||||||||||
Conversion ratio of class B ordinary share into class A ordinary shares | 1 | |||||||||||||
IPO | Class A Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Ordinary shares, shares authorized | 4,800,000,000 | 4,800,000,000 | ||||||||||||
Ordinary shares, voting rights | Vote | 1 | |||||||||||||
IPO | Class B Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Ordinary shares, shares authorized | 150,000,000 | 150,000,000 | ||||||||||||
Ordinary shares, voting rights | Vote | 10 | |||||||||||||
IPO | ADR | ||||||||||||||
Organization and principal activities | ||||||||||||||
Shares issued | 11,400,000 | |||||||||||||
Shares issued price per share | $ / shares | $ 9 | |||||||||||||
IPO | Designated Common Stock | ||||||||||||||
Organization and principal activities | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||||||||||||
Foshan Viomi | ||||||||||||||
Organization and principal activities | ||||||||||||||
Change in basis of assets and liabilities | $ | $ 0 | |||||||||||||
Mr. Chen | ||||||||||||||
Organization and principal activities | ||||||||||||||
Equity investments amount | ¥ | ¥ 7,500 | |||||||||||||
Initial equity interest percent | 60% | |||||||||||||
Mr. Chen | Mr. Chen | ||||||||||||||
Organization and principal activities | ||||||||||||||
Equity investments amount | ¥ | ¥ 7,500 | |||||||||||||
Tianjin Jinxing | ||||||||||||||
Organization and principal activities | ||||||||||||||
Equity investments amount | ¥ | ¥ 5,000 | |||||||||||||
Initial equity interest percent | 40% | |||||||||||||
Key Management Founders | ||||||||||||||
Organization and principal activities | ||||||||||||||
Equity investments amount | ¥ | ¥ 2,500 | |||||||||||||
Key Management Founders | Class A Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Ordinary shares, issued | 16,145,454 | |||||||||||||
Red Better Limited | Class B Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Ordinary shares, issued | 33,818,182 | |||||||||||||
Red Better Limited | Key Management Founders | Class A Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Shares issued | 33,818,182 | 33,818,182 | 33,818,182 | |||||||||||
Ordinary shares issued in exchange of interest, value | ¥ | ¥ 2,500 | |||||||||||||
Red Better Limited | Mr. Chen | Class B Redeemable Convertible Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Shares issued | 67,636,364 | 67,636,364 | ||||||||||||
Ordinary shares issued in exchange of interest, value | ¥ | ¥ 5,000 | |||||||||||||
Viomi Limited | Class A Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Conversion basis of stock | 1 | |||||||||||||
Viomi Limited | Class B Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Shares issued | 67,636,364 | |||||||||||||
Ordinary shares issued in exchange of interest, value | ¥ | ¥ 5,000 | |||||||||||||
Ordinary shares, issued | 67,636,364 | |||||||||||||
Conversion basis of stock | 1 | |||||||||||||
Viomi Limited | Mr. Chen | Class B Redeemable Convertible Ordinary Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Shares issued | 67,636,364 | 67,636,364 | ||||||||||||
Investors | Series A Preferred Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Stock issued | 18,181,818 | 18,181,818 | ||||||||||||
Shares issued price per share | $ / shares | $ 1.1 | $ 1.1 | ||||||||||||
Stock issued for consideration including conversion of outstanding bridge loans | $ | $ 20,000 | |||||||||||||
Outstanding bridge loans | $ | $ 5,250 | $ 5,250 | ||||||||||||
Sunglow | Guangdong Lizi | ||||||||||||||
Organization and principal activities | ||||||||||||||
Equity investments amount | ¥ | ¥ 175 | |||||||||||||
Initial equity interest percent | 1% |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES- Schedule of principal subsidiaries and VIEs (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Viomi HK | Subsidiaries | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Lequan | Subsidiaries | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Codream HK | Subsidiaries | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Yunmi Hulian | Subsidiaries | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Zhumeng Hulian | Subsidiaries | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Guangdong Lizi | Subsidiaries | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Guangzhou interconnect Technology Co., Ltd. | Subsidiaries | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Foshan Viomi | VIEs | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
Beijing Viomi | VIEs | |
Organization and principal activities | |
Percentage of beneficial ownership | 100% |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTIVITIES - Assets and liabilities of VIEs and its subsidiaries and group's taken as whole (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Variable interest entity | ||||
Cash and cash equivalents | ¥ 491,715 | $ 69,257 | ¥ 737,139 | ¥ 586,955 |
Short-term investments | 70,369 | 9,911 | 197,058 | |
Inventories | 442,219 | 62,285 | 502,291 | |
Total assets | 2,754,388 | 387,947 | 2,885,694 | |
Accounts and notes payable | 666,333 | 93,851 | 844,058 | |
Total liabilities | 1,410,751 | 198,700 | 1,456,531 | |
Third parties | ||||
Variable interest entity | ||||
Accounts receivable | 226,802 | 31,944 | 241,652 | |
Accounts and notes receivable | 80,409 | 87,563 | ||
Related party | ||||
Variable interest entity | ||||
Accounts receivable | 324,223 | $ 45,667 | 360,497 | |
Accounts and notes receivable | 325 | 272 | ||
VIEs | ||||
Variable interest entity | ||||
Cash and cash equivalents | 285,338 | 335,476 | ||
Short-term investments | 51,864 | 189,275 | ||
Inventories | 248,614 | 281,649 | ||
Amounts due from Group companies | 725,171 | 707,458 | ||
Other assets | 503,423 | 427,598 | ||
Total assets | 2,324,235 | 2,452,639 | ||
Accounts and notes payable | 348,876 | 377,839 | ||
Accrued expenses and other liabilities | 165,379 | 231,325 | ||
Amounts due to Group companies | 1,002,435 | 1,043,056 | ||
Other liabilities | 236,979 | 119,311 | ||
Total liabilities | 1,753,669 | 1,771,531 | ||
VIEs | Third parties | ||||
Variable interest entity | ||||
Accounts receivable | 189,983 | 150,686 | ||
Accounts and notes receivable | 63,779 | 72,193 | ||
VIEs | Related party | ||||
Variable interest entity | ||||
Accounts receivable | 319,842 | 360,497 | ||
Accounts and notes receivable | ¥ 320 | ¥ 272 |
ORGANIZATION AND PRINCIPAL AC_6
ORGANIZATION AND PRINCIPAL ACTIVITIES - VIE Arrangements between the VIEs and the Company' s PRC subsidiary (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Variable interest entity | ||||
Revenue | ¥ 2,493,386 | $ 351,186 | ¥ 3,232,731 | ¥ 5,303,835 |
Cost | 1,923,866 | 270,971 | 2,495,638 | 4,105,767 |
Net income/(loss) | (84,674) | (11,927) | (275,515) | 88,605 |
Net cash (used in) provided by operating activities | (103,228) | (14,540) | (284,169) | 308,968 |
Net cash (used in) provided by investing activities | (198,926) | (28,019) | 314,547 | (265,321) |
Net cash (used in) provided by financing activities | 115,657 | 16,290 | 113,563 | 17,133 |
Third parties | ||||
Variable interest entity | ||||
Revenue | 1,176,072 | 165,646 | 1,829,377 | 3,008,266 |
Related party | ||||
Variable interest entity | ||||
Revenue | 1,317,314 | $ 185,540 | 1,403,354 | 2,295,569 |
VIEs | ||||
Variable interest entity | ||||
Net income/(loss) | (81,057) | (237,517) | (60,908) | |
VIEs | Group companies | ||||
Variable interest entity | ||||
Revenue | 114,889 | 220,607 | 131,379 | |
Cost | 144,897 | 49,359 | 1,291,468 | |
VIEs | Related Party and Third Parties | ||||
Variable interest entity | ||||
Revenue | 2,123,580 | 2,805,557 | 4,859,414 | |
Cost | 1,688,405 | 2,355,718 | 2,870,809 | |
VIEs | Third parties | ||||
Variable interest entity | ||||
Net cash (used in) provided by operating activities | 632,235 | 537,068 | 1,248,860 | |
Net cash (used in) provided by investing activities | (82,035) | 461,320 | (233,934) | |
Net cash (used in) provided by financing activities | 100,000 | |||
VIEs | Related party | Group companies | ||||
Variable interest entity | ||||
Net cash (used in) provided by operating activities | (597,354) | (958,297) | (794,936) | |
Net cash (used in) provided by investing activities | 16,866 | 7,280 | (83,325) | |
Net cash (used in) provided by financing activities | ¥ (44,574) | ¥ (60,361) | ¥ (156,406) |
ORGANIZATION AND PRINCIPAL AC_7
ORGANIZATION AND PRINCIPAL ACTIVITIES- Inter-company revenues between VIEs and other subsidiaries (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Variable interest entity | ||||
Revenue | ¥ 2,493,386 | $ 351,186 | ¥ 3,232,731 | ¥ 5,303,835 |
VIEs to Equity Subsidiaries | ||||
Variable interest entity | ||||
Revenue | 99,400 | 195,800 | 131,300 | |
VIEs to Primary Beneficiary of VIEs and their Subsidiaries | ||||
Variable interest entity | ||||
Revenue | ¥ 15,500 | ¥ 24,800 | ¥ 100 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Additional information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) installment segment | Dec. 31, 2023 USD ($) installment segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Apr. 01, 2019 | |
Significant accounting policies | ||||||
Foreign currency exchange buying rate | 7.0999 | 7.0999 | ||||
Impairments of long-lived assets | ¥ 0 | ¥ 0 | ||||
Estimated useful lives | 50 years | 50 years | ||||
Number of installment payments from customer | installment | 2 | 2 | ||||
Percentage of estimated profit margin based on consideration of specific and relevant market factors | 5% | 5% | ||||
Expected sales return | ¥ 839 | 2,351 | ¥ 5,593 | |||
Expected return asset | 508 | 1,350 | 3,189 | |||
Refund liability | 948 | 2,656 | 6,320 | |||
Value added tax rate | 13% | |||||
Accounts and notes receivable from key customers | 631,760 | 689,984 | ||||
Group reverse | (7,101) | 53,082 | ||||
Deferred revenue | 3,318 | 2,130 | ||||
Advertising and market promotion expenses | 123,083 | 187,417 | 173,642 | |||
Shipping expenses | 109,835 | 200,695 | 248,609 | |||
Subsidy income | 16,335 | 23,192 | 30,147 | |||
Uncertain tax positions, interest and penalties recognized | ¥ 0 | 0 | ||||
Statutory reserve funds | 1,756 | |||||
Number of operating segment | segment | 1 | 1 | ||||
Retained earnings | ¥ 89,711 | 174,385 | $ 12,636 | |||
Allowance for doubtful accounts | 13,894 | $ 1,957 | 52,997 | 25,541 | ||
Expected credit loss provision for accounts and notes receivable and other receivables | 80,734 | 87,854 | 34,857 | |||
Write off | 21,014 | |||||
General and Administrative Expenses | ||||||
Significant accounting policies | ||||||
Allowance for doubtful accounts | 13,894 | 52,997 | 25,541 | |||
Additional Paid-in Capital | ||||||
Significant accounting policies | ||||||
Accumulated statutory reserve funds | 12,517 | 12,517 | ||||
P R C Contribution Plan | ||||||
Significant accounting policies | ||||||
Employee benefit expenses | 26,994 | 21,465 | ¥ 34,291 | |||
Installation Services | ||||||
Significant accounting policies | ||||||
Revenue recognized amount | 2,130 | ¥ 3,154 | ||||
Expect to recognize unearned amount for remaining performance obligation in 2022 | 3,285 | |||||
Membership Service | ||||||
Significant accounting policies | ||||||
Expect to recognize unearned amount for remaining performance obligation in 2022 | ¥ 33 | |||||
Xiaomi | ||||||
Significant accounting policies | ||||||
Percentage of second installment payment arrangement to total revenue | 2.80% | 2.80% | 2.80% | 2% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Schedule of property plant and equipment estimated useful lives and residual rate (Detail) | Dec. 31, 2023 |
Buildings | |
Property plant and equipment net | |
Property, plant and equipment, Estimated useful lives | 20 years |
Property, plant and equipment, Residual rate | 5% |
Computers and equipment | Minimum | |
Property plant and equipment net | |
Property, plant and equipment, Estimated useful lives | 2 years |
Property, plant and equipment, Residual rate | 0% |
Computers and equipment | Maximum | |
Property plant and equipment net | |
Property, plant and equipment, Estimated useful lives | 10 years |
Property, plant and equipment, Residual rate | 5% |
Vehicle | |
Property plant and equipment net | |
Property, plant and equipment, Estimated useful lives | 4 years |
Property, plant and equipment, Residual rate | 5% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Schedule of amortization of finite-lived intangible assets estimated useful lives (Detail) | Dec. 31, 2023 |
Software | Minimum | |
Finite lived intangible assets | |
Finite-lived intangible assets, Estimated useful lives | 1 year |
Software | Maximum | |
Finite lived intangible assets | |
Finite-lived intangible assets, Estimated useful lives | 10 years |
License | Minimum | |
Finite lived intangible assets | |
Finite-lived intangible assets, Estimated useful lives | 3 years |
License | Maximum | |
Finite lived intangible assets | |
Finite-lived intangible assets, Estimated useful lives | 10 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Schedule of disaggregation of revenue by type of contract (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Revenue | ||||
Revenue | ¥ 2,493,386 | $ 351,186 | ¥ 3,232,731 | ¥ 5,303,835 |
Sales of products to Xiaomi | ||||
Revenue | ||||
Revenue | 1,317,314 | 1,403,354 | 2,295,569 | |
Sales of products to Xiaomi | Xiaomi-branded products | ||||
Revenue | ||||
Revenue | 1,158,983 | 1,154,689 | 2,021,117 | |
Sales of products to Xiaomi | Viomi-branded products | ||||
Revenue | ||||
Revenue | 158,331 | 248,665 | 274,452 | |
Sales to third party customers | ||||
Revenue | ||||
Revenue | ¥ 1,176,072 | ¥ 1,829,377 | ¥ 3,008,266 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Schedule of summarizes the activity in the allowance for credit losses related to accounts and notes receivable and other receivables from related parties (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Balance at beginning of the year | ¥ 87,854 | ¥ 34,857 |
Current year provision | 24,915 | 61,336 |
Reversals | (11,021) | (8,339) |
Write off | (21,014) | |
Balance at end of the year | ¥ 80,734 | ¥ 87,854 |
CONCENTRATION AND RISKS - Sched
CONCENTRATION AND RISKS - Schedule of concentration risk of accounts and notes receivable from third parties (Details) - Company A - Accounts and Notes Receivable - Credit Risk - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Concentration and risks | ||
Accounts and notes receivable | ¥ 133,882 | ¥ 125,971 |
Concentration risk, percentage | 59% | 52% |
CONCENTRATION AND RISKS - Sch_2
CONCENTRATION AND RISKS - Schedule of concentration risk of accounts receivable from related party (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration and risks | |||
Accounts receivable from a related party | ¥ 631,760 | ¥ 689,984 | |
Related party | Xiaomi | Accounts Receivable | Credit Risk | |||
Concentration and risks | |||
Accounts receivable from a related party | ¥ 324,223 | ¥ 360,497 | |
Concentration risk, percentage | 100% | 100% |
CONCENTRATION AND RISKS - Sch_3
CONCENTRATION AND RISKS - Schedule of concentration risk of other receivables from related parties (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | |
Concentration and risks | |||
Other receivables | ¥ 224 | ¥ 25,021 | $ 32 |
Related party | Xiaomi | Other Receivables | Credit Risk | |||
Concentration and risks | |||
Other receivables | ¥ 218 | ¥ 25,021 | |
Concentration risk, percentage | 97% | 100% |
CONCENTRATION AND RISKS- Summar
CONCENTRATION AND RISKS- Summary of revenue concentration risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Concentration and risks | ||||
Revenue | ¥ 2,493,386 | $ 351,186 | ¥ 3,232,731 | ¥ 5,303,835 |
Related party | ||||
Concentration and risks | ||||
Revenue | 1,317,314 | $ 185,540 | 1,403,354 | 2,295,569 |
Related party | Xiaomi | ||||
Concentration and risks | ||||
Revenue | 1,317,314 | 1,403,354 | 2,295,569 | |
Related party | Xiaomi | Revenue Benchmark | Revenue Concentration Risk | ||||
Concentration and risks | ||||
Revenue | ¥ 1,317,314 | ¥ 1,403,354 | ¥ 2,295,569 | |
Concentration risk, percentage | 53% | 53% | 43% | 43% |
CONCENTRATION AND RISKS - Addit
CONCENTRATION AND RISKS - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Concentration and risks | ||||
Revenue | ¥ 2,493,386 | $ 351,186 | ¥ 3,232,731 | ¥ 5,303,835 |
Contract With Xiaomi | Viomi-branded products | ||||
Concentration and risks | ||||
Revenue | ¥ 158,331 | ¥ 248,665 | ¥ 274,452 |
CASH AND CASH EQUIVALENTS - Sum
CASH AND CASH EQUIVALENTS - Summary of cash and cash equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Cash and cash equivalents | |||||
Cash and cash equivalents | ¥ 491,715 | $ 69,257 | ¥ 737,139 | ¥ 586,955 | |
RMB | |||||
Cash and cash equivalents | |||||
Cash and cash equivalents | 345,575 | 345,575 | 440,557 | $ 440,557 | |
US$ | |||||
Cash and cash equivalents | |||||
Cash and cash equivalents | ¥ 146,140 | $ 20,633 | ¥ 296,582 | $ 42,584 |
RESTRICTED CASH - Additional in
RESTRICTED CASH - Additional information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
RESTRICTED CASH | ||||
Restricted cash | ¥ 144,640 | $ 20,372 | ¥ 76,070 | ¥ 35,831 |
Deposit required for issuing bank acceptance bills | 119,934 | 56,655 | ||
Restricted cash attributable to judicial frozen funds | ¥ 24,706 | ¥ 19,415 |
SHORT-TERM INVESTMENTS - Schedu
SHORT-TERM INVESTMENTS - Schedule of short-term investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Short-term investments | ¥ 70,369 | $ 9,911 | ¥ 197,058 |
RMB | |||
Short-term investments | ¥ 70,369 | ¥ 197,058 |
INVENTORIES - Schedule of inven
INVENTORIES - Schedule of inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
INVENTORIES | |||
Finished goods | ¥ 295,967 | ¥ 207,078 | |
Raw materials | 212,286 | 349,226 | |
Gross | 508,253 | 556,304 | |
Less: provisions for inventories write-downs | (66,034) | (54,013) | |
Net | ¥ 442,219 | $ 62,285 | ¥ 502,291 |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS - Schedule of prepaid expenses and other assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
PREPAID EXPENSES AND OTHER ASSETS | |||
Advances to suppliers | ¥ 113,634 | ¥ 139,306 | |
Other receivables | 73,110 | 44,697 | |
Prepayment for equipment | 15,855 | 15,976 | |
Lease hold improvement | 2,389 | 5,234 | |
Expected return assets | 508 | 1,351 | |
Total | 205,496 | 206,564 | |
Less: non-current portion | (18,824) | $ (2,651) | (22,856) |
Prepaid expenses and other assets-current portion | ¥ 186,672 | $ 26,292 | ¥ 183,708 |
LONG-TERM DEPOSITS - Additional
LONG-TERM DEPOSITS - Additional Information (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LONG-TERM DEPOSITS | ||
Long-term deposits-non-current portion | ¥ 0 | ¥ 30,000 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of property, plant and equipment, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Property plant and equipment net | |||
Property, plant and equipment, gross | ¥ 555,629 | ¥ 433,324 | |
Less: accumulated depreciation | (212,644) | (196,892) | |
Property, plant and equipment, net | 342,985 | $ 48,308 | 236,432 |
Computers and equipment | |||
Property plant and equipment net | |||
Property, plant and equipment, gross | 166,480 | ||
Buildings | |||
Property plant and equipment net | |||
Property, plant and equipment, gross | 258,910 | ||
Construction in progress | |||
Property plant and equipment net | |||
Property, plant and equipment, gross | 294,558 | 266,085 | |
Vehicle | |||
Property plant and equipment net | |||
Property, plant and equipment, gross | ¥ 2,161 | ¥ 759 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Depreciation expense | ¥ 46,971 | ¥ 80,161 | ¥ 55,124 |
Impairment charge | ¥ 0 | ¥ 0 | ¥ 0 |
LAND USE RIGHTS, NET - Summary
LAND USE RIGHTS, NET - Summary of land use rights (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
LAND USE RIGHTS, NET | |||
Land use rights | ¥ 63,618 | ¥ 63,618 | |
Less: Accumulated amortization | (4,441) | (3,169) | |
Land use right, net | ¥ 59,177 | $ 8,335 | ¥ 60,449 |
LAND USE RIGHTS, NET - Addition
LAND USE RIGHTS, NET - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LAND USE RIGHTS, NET | ||
Amortization expense | ¥ 1,272 | ¥ 1,273 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Schedule of accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
ACCRUED EXPENSES AND OTHER LIABILITIES | |||
Accrued payroll and welfare | ¥ 76,521 | ¥ 76,468 | |
Freight payable | 18,556 | 29,533 | |
Deposit from suppliers | 43,872 | 36,909 | |
Installation fee payables | 7,243 | 6,609 | |
Product warranty | 35,213 | 28,292 | |
Marketing and promotion expenses | 23,657 | 47,124 | |
Payment for purchase of property | 53,235 | 16,075 | |
Other tax payable | 1,572 | 3,474 | |
Professional fee payables | 6,866 | 4,265 | |
Refund liabilities | 948 | 2,656 | |
Other current liabilities | 47,297 | 65,685 | |
Total | 314,980 | 317,090 | |
Less: non-current portion | (12,766) | (8,245) | |
Accrued expenses and other liabilities-current portion | ¥ 302,214 | $ 42,565 | ¥ 308,845 |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES - Schedule of product warranty activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Beginning balance | ¥ 28,292 | ¥ 28,796 |
Provided during the year | 63,767 | 51,161 |
Utilized during the year | (56,846) | (51,665) |
Ending balance | ¥ 35,213 | ¥ 28,292 |
REVENUE - Schedule of net reven
REVENUE - Schedule of net revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Revenue | ||||
Revenue | ¥ 2,493,386 | $ 351,186 | ¥ 3,232,731 | ¥ 5,303,835 |
IoT @ Home portfolio | ||||
Revenue | ||||
Revenue | 1,220,852 | 1,619,941 | 3,400,966 | |
Home water solutions | ||||
Revenue | ||||
Revenue | 604,012 | 681,054 | 742,912 | |
Consumables | ||||
Revenue | ||||
Revenue | 314,372 | 358,442 | 367,021 | |
Small appliances and other products | ||||
Revenue | ||||
Revenue | 298,410 | 494,943 | 708,260 | |
Total of sales of products | ||||
Revenue | ||||
Revenue | 2,437,646 | 3,154,380 | 5,219,159 | |
Rendering of services | ||||
Revenue | ||||
Revenue | ¥ 55,740 | ¥ 78,351 | ¥ 84,676 |
INCOME TAX EXPENSES - Additiona
INCOME TAX EXPENSES - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Hong Kong | Taxable Income Within HKD$2 million | |||||
INCOME TAX EXPENSES | |||||
Income tax rate | 8.25% | ||||
Hong Kong | Taxable Income Beyond HKD$2 million | |||||
INCOME TAX EXPENSES | |||||
Income tax rate | 16.50% | ||||
PRC | |||||
INCOME TAX EXPENSES | |||||
Percentage of qualified research and development expenses enterprises are entitled to claim as additional tax deduction | 100% | 75% | 50% | 50% | |
Withholding tax rate | 10% | ||||
Undistributed earnings available for distribution | ¥ 622,290 | ¥ 693,623 | |||
Statute of limitations year | 3 years | ||||
Statute of limitations extended period | 5 years | ||||
PRC | Arrangement Between PRC and Hong Kong Special Administrative Region on Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital | |||||
INCOME TAX EXPENSES | |||||
Withholding tax rate | 5% | ||||
Minimum percentage of equity interests in PRC foreign-invested enterprise to be subject to special withholding tax rate | 25% | ||||
Withholding income tax rate on dividends for Hong Kong holding company which is not considered to be beneficial owner | 10% | ||||
PRC | 2020 | |||||
INCOME TAX EXPENSES | |||||
Percentage of qualified research and development expenses enterprises are entitled to claim as additional tax deduction | 75% | ||||
PRC | Enterprise Income Tax | |||||
INCOME TAX EXPENSES | |||||
Income tax rate | 25% | ||||
PRC | Subsidiaries and VIEs and Predecessor Operations | |||||
INCOME TAX EXPENSES | |||||
Income tax rate | 25% | 25% | 25% | ||
PRC | High and New Technology Enterprises | |||||
INCOME TAX EXPENSES | |||||
Income tax rate | 15% |
INCOME TAX EXPENSES - Current a
INCOME TAX EXPENSES - Current and deferred components of income taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INCOME TAX EXPENSES | ||||
Current tax expenses | ¥ 65 | ¥ (4,470) | ¥ 26,854 | |
Deferred tax (benefit) expense | 1,670 | $ 235 | 22,644 | (21,115) |
Income tax expenses | ¥ 1,735 | $ 244 | ¥ 18,174 | ¥ 5,739 |
INCOME TAX EXPENSES - Reconcili
INCOME TAX EXPENSES - Reconciliation between income tax expenses computed by applying PRC enterprise tax rate before income taxes and actual provision (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INCOME TAX EXPENSES | ||||
Income (loss) from operations in the PRC | ¥ (80,815) | ¥ (272,186) | ¥ 89,126 | |
Income from overseas entities | (6,783) | 7,730 | 5,504 | |
Income (loss) before income tax expenses | (87,598) | $ (12,339) | (264,456) | 94,630 |
Tax expense (benefit) at PRC enterprise income tax rate of 25% | (21,899) | (66,114) | 23,658 | |
Income tax on tax holiday(1) | (6,743) | 6,310 | (16,872) | |
Tax effect of permanent differences(2) | (18,621) | (30,550) | (28,303) | |
Change in valuation allowance(3) | 46,724 | 107,603 | 22,153 | |
Effect of share-based compensation | 16 | 2,934 | 7,111 | |
Effect of income tax in jurisdictions other than the PRC | 2,258 | (2,009) | (2,008) | |
Income tax expenses | ¥ 1,735 | $ 244 | ¥ 18,174 | ¥ 5,739 |
INCOME TAX EXPENSES - Reconci_2
INCOME TAX EXPENSES - Reconciliation between income tax expenses computed by applying PRC enterprise tax rate before income taxes and actual provision (Parenthetical) (Details) - High and New Technology Enterprises | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAX EXPENSES | |||
Beneficial tax rate | 15% | 15% | 15% |
Preferential tax rate | 15% | 15% | 15% |
INCOME TAX EXPENSES - Per share
INCOME TAX EXPENSES - Per share effect of tax holidays (Details) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAX EXPENSES | |||
Net income per share effect - basic | ¥ 0.01 | ¥ 0.06 | ¥ 0.02 |
Net income per share effect - diluted | ¥ 0.01 | ¥ 0.06 | ¥ 0.02 |
INCOME TAX EXPENSES - Significa
INCOME TAX EXPENSES - Significant components of deferred tax assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
INCOME TAX EXPENSES | ||
Accrued expenses and others | ¥ 22,219 | ¥ 21,935 |
Net operating loss carry forwards | 193,865 | 151,463 |
Inventories write downs | 3,397 | 1,040 |
Deferred income | 97 | 86 |
Total deferred tax assets | 219,578 | 174,524 |
Less: valuation allowance | (208,588) | (161,864) |
Deferred tax assets, net | ¥ 10,990 | ¥ 12,660 |
INCOME TAX EXPENSES - Movement
INCOME TAX EXPENSES - Movement of valuation allowance (Details) - Valuation Allowance of Deferred Tax Assets - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement of valuation allowance | |||
Balance at beginning of the year | ¥ 161,864 | ¥ 54,261 | ¥ 32,926 |
Provided | 46,724 | 107,603 | 21,335 |
Balance at end of the year | ¥ 208,588 | ¥ 161,864 | ¥ 54,261 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||||||
Sep. 25, 2018 shares | Aug. 23, 2018 USD ($) Vote $ / shares shares | Aug. 23, 2018 USD ($) $ / shares shares | Jul. 31, 2015 shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2018 shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Mar. 31, 2020 USD ($) | Sep. 24, 2018 shares | Aug. 22, 2018 $ / shares | Jun. 30, 2018 shares | Dec. 31, 2017 shares | |
ORDINARY SHARES | ||||||||||||||||
Common stock, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||
Preferred shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.0001 | |||||||||||||
Number of ordinary shares | 10 | |||||||||||||||
Surrendered percentage of ordinary shares after share split | 90% | |||||||||||||||
Stock, conversion basis | IPO, 16,145,454 issued Class A Ordinary Shares held by certain key management founders, 33,818,182 issued Pre-IPO Class B Ordinary Shares held by Red Better, and 67,636,364 issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. | |||||||||||||||
Issuance of ordinary shares for exercised share options (in shares) | 176,883 | 956,256 | 3,011,064 | |||||||||||||
Shares repurchases, consideration amount | ¥ | ¥ 6,440 | ¥ 8,035 | ¥ 12,068 | |||||||||||||
IPO | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 | ||||||||||||||
Ordinary shares, voting rights | Each Class A Ordinary Share is entitled to one vote, and each Class B Ordinary Share is entitled to ten (10) votes, voting together as one class | |||||||||||||||
Dividends value of shares authorized | $ | $ 50,000 | $ 50,000 | ||||||||||||||
Stock, conversion basis | Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. | |||||||||||||||
Shares issued | 34,200,000 | |||||||||||||||
Class A Ordinary Shares | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares authorized | 346,545,454 | 346,545,454 | 4,800,000,000 | 4,800,000,000 | ||||||||||||
Common stock, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.00001 | $ 0.00001 | ||||||||||||
Ordinary shares, outstanding | 105,516,779 | 104,163,686 | 101,902,544 | 104,539,463 | 25,363,636 | |||||||||||
Ordinary shares, voting rights | one | |||||||||||||||
Common stock, shares issued | 4,000,000 | 4,000,000 | 101,902,544 | 104,539,463 | 33,818,182 | |||||||||||
Ordinary shares, transferred | 16,145,454 | |||||||||||||||
Ordinary shares, surrendered | 17,672,728 | |||||||||||||||
Fair value per share | $ / shares | $ 3.30 | $ 3.30 | ||||||||||||||
Shares issued | 34,200,000 | |||||||||||||||
Class B ordinary shares converted to Class A ordinary shares (in shares) | 90,000 | 359,997 | 339,999 | 7,295,454 | 18,181,818 | |||||||||||
Issuance of ordinary shares for exercised share options (in shares) | 176,883 | 956,256 | 3,011,064 | 2,655,669 | ||||||||||||
Shares repurchased during period | 2,903,802 | 2,293,569 | 1,997,970 | 4,232,169 | ||||||||||||
Class A Ordinary Shares | Key Management Founders | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares issued | 16,145,454 | |||||||||||||||
Class A Ordinary Shares | IPO | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares authorized | 4,800,000,000 | 4,800,000,000 | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||||
Ordinary shares, voting rights | Vote | 1 | |||||||||||||||
Class B Ordinary Shares | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||||
Ordinary shares, outstanding | 103,214,547 | 103,554,546 | 102,764,550 | 102,854,550 | ||||||||||||
Common stock, shares issued | 102,764,550 | 102,854,550 | ||||||||||||||
Class B Ordinary Shares | Red Better Limited | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares issued | 33,818,182 | |||||||||||||||
Class B Ordinary Shares | Viomi Limited | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares issued | 67,636,364 | |||||||||||||||
Shares issued | 67,636,364 | |||||||||||||||
Class B Ordinary Shares | IPO | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||||
Ordinary shares, voting rights | Vote | 10 | |||||||||||||||
Designated Common Stock | IPO | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||||
ADR | IPO | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Shares issued | 11,400,000 | |||||||||||||||
American Depositary Shares [Member] | ||||||||||||||||
ORDINARY SHARES | ||||||||||||||||
Share repurchase program, authorized amount | $ | $ 10,000 | |||||||||||||||
Shares repurchased during period | 1,410,723 | |||||||||||||||
Shares repurchases, consideration amount | $ | $ 8,030 | |||||||||||||||
Shares repurchases, weighted average price per share | $ / shares | $ 5.69 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation expense recognized for share-based awards (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |||
Share-based compensation was allocated in operating expenses | ¥ 106 | ¥ 19,560 | ¥ 47,405 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||
Sep. 17, 2015 shares | Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) $ / shares shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Dec. 31, 2019 shares | Nov. 30, 2020 CNY (¥) | |
SHARE-BASED COMPENSATION | ||||||||
Number of share options granted to employees under stock incentive plans | 1,010,000 | 1,010,000 | 3,840,000 | 0 | ||||
Weighted average grant date fair value of options granted | (per share) | ¥ 0 | ¥ 7.66 | $ 1.1 | |||||
Unrecognized compensation expenses related to options | ¥ | ¥ 5,454 | ¥ 21,025 | $ 21,025 | |||||
Sunglow | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Unrecognized compensation expenses related to options | ¥ | ¥ 10,284 | |||||||
Sunglow | Guangdong Lizi | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Equity interests | 1% | |||||||
Equity investments amount | ¥ | ¥ 175 | |||||||
2015 Share Incentive Plan | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Share incentive plan effective period | 10 years | |||||||
Maximum number of shares issued under share incentive plan | 12,727,272 | |||||||
2018 Share Incentive Plan | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Maximum number of shares issued under share incentive plan | 26,008,171 | 26,008,171 | ||||||
Number of share options granted to employees under stock incentive plans | 1,010,000 | 1,010,000 | 3,840,000 | 19,175,500 | ||||
2018 Share Incentive Plan | Vested after 24 Months | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Share options vested percentage | 40% | 40% | 40% | 40% | ||||
2018 Share Incentive Plan | Vested in Two Equal Installments over Following 24 Months | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Share options vested percentage | 60% | 60% | 60% | 60% |
SHARE-BASED COMPENSATION - Assu
SHARE-BASED COMPENSATION - Assumptions used to Determine Fair Value of Share Options Granted (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
SHARE-BASED COMPENSATION | |
Risk-free interest rate | 3.98% |
Expected volatility | 43.60% |
Expected life of option (years) | 10 years |
Fair value per ordinary share | $ 0.12 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |||||
Number of options, Outstanding, Beginning Period | 19,742,616 | 22,226,338 | 26,106,599 | ||
Number of options, Granted | 1,010,000 | 3,840,000 | 0 | ||
Number of options, Forfeited | (5,047,307) | (2,537,466) | (4,709,197) | ||
Number of options, Exercised | (176,883) | (956,256) | (3,011,064) | ||
Number of options, Outstanding, Ending Period | 14,518,426 | 19,742,616 | 22,226,338 | 26,106,599 | |
Number of options, Exercisable | 10,480,426 | ||||
Number of options, Expected to vest | 3,634,200 | ||||
Weighted average exercise price, Outstanding, Beginning Period | $ 0.81 | $ 0.80 | $ 0.74 | ||
Weighted average exercise price, Granted | 1.10 | 1.10 | |||
Weighted average exercise price, Forfeited | 0.78 | 0.98 | 0.81 | ||
Weighted average exercise price, Exercised | 0.03 | 0.44 | 0.43 | ||
Weighted average exercise price, Outstanding, Ending Period | 0.83 | $ 0.81 | $ 0.80 | $ 0.74 | |
Weighted average exercise price, Exercisable | 0.72 | ||||
Weighted average exercise price, Expected to vest | $ 1.10 | ||||
Weighted-average remaining contractual life (years), Outstanding | 5 years 6 months 29 days | 6 years 5 months 26 days | 7 years 4 months 28 days | 8 years 29 days | |
Weighted-average remaining contractual life (years), Exercisable | 4 years 11 months 15 days | ||||
Weighted-average remaining contractual life (years), Expected to vest | 7 years 2 months 1 day | ||||
Aggregate intrinsic value, Outstanding | $ 15,552,713 | $ 22,974 | $ 26,813 | $ 30,299 | |
Aggregate intrinsic value, Exercisable | 12,576,573 | ||||
Aggregate intrinsic value, Expected to vest | $ 2,678,526 |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Schedule of earnings per share, basic and diluted (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Numerator for basic calculation - Net income (loss) attributable to ordinary shareholders of the Company | ¥ (84,674) | $ (11,927) | ¥ (275,515) | ¥ 88,605 |
Denominator: | ||||
Denominator for basic calculation - weighted average ordinary shares outstanding | 206,360,586 | 206,360,586 | 208,341,011 | 209,551,821 |
Dilutive effect of share options | 11,184,176 | |||
Denominator for diluted calculation | 206,360,586 | 206,360,586 | 208,341,011 | 220,735,997 |
Basic net income (loss) per ordinary share | (per share) | ¥ (0.41) | $ (0.06) | ¥ (1.32) | ¥ 0.42 |
Diluted net income (loss) per ordinary share | (per share) | ¥ (0.41) | $ (0.06) | ¥ (1.32) | ¥ 0.40 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transaction Relationship (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Mr. Chen | |
RELATED PARTY TRANSACTIONS | |
Relationship with the Group | Founder |
Xiaomi | |
RELATED PARTY TRANSACTIONS | |
Relationship with the Group | Shareholder of the Group |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - Xiaomi | 12 Months Ended |
Dec. 31, 2023 | |
Business corporation agreement | |
RELATED PARTY TRANSACTIONS | |
Related party transaction expiration | 2025-03 |
Youpin commission sales agreement | |
RELATED PARTY TRANSACTIONS | |
Related party transaction, expire date | Dec. 31, 2021 |
Related party transaction renewed year | 2022 |
Related party transaction agreement termination notice period | 30 days |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Schedule of related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
RELATED PARTY TRANSACTIONS | |||||
Amounts due to related parties | ¥ 18,468 | ¥ 11,548 | $ 2,601 | ||
Revenue | 2,493,386 | $ 351,186 | 3,232,731 | ¥ 5,303,835 | |
Research and development expenses | 222,911 | 31,396 | 299,950 | 311,786 | |
Selling and marketing expenses | 401,766 | 56,588 | 614,887 | 751,011 | |
Xiaomi | |||||
RELATED PARTY TRANSACTIONS | |||||
Purchase from related parties | 26,341 | 30,941 | 33,767 | ||
Related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Accounts receivable | 324,223 | 360,497 | $ 45,667 | ||
Other receivables | 224 | 25,021 | |||
Amounts due to related parties | 18,468 | 11,548 | |||
Revenue | 1,317,314 | $ 185,540 | 1,403,354 | 2,295,569 | |
Selling and marketing expenses | 35,146 | 41,584 | 106,929 | ||
Related party | Xiaomi | |||||
RELATED PARTY TRANSACTIONS | |||||
Accounts receivable | 324,223 | 360,497 | |||
Revenue | 1,317,314 | 1,403,354 | 2,295,569 | ||
Research and development expenses | 716 | 2,791 | 3,484 | ||
Related party | Xiaomi | Sales receivable from related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Other receivables | 24,802 | ||||
Related party | Xiaomi | Other receivable from related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Other receivables | 218 | 219 | |||
Related party | Xiaomi | Purchase payable to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amounts due to related parties | 8,216 | 7,245 | |||
Related party | Xiaomi | Research and development expenses payable to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amounts due to related parties | 249 | 221 | |||
Related party | Xiaomi | Selling and marketing expenses payable to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amounts due to related parties | 10,003 | 4,082 | |||
Related party | Xiaomi | Commission expenses charged by related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Selling and marketing expenses | 31,389 | 32,795 | 82,617 | ||
Related party | Xiaomi | Other expenses charged by related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Selling and marketing expenses | 3,757 | ¥ 8,789 | ¥ 24,312 | ||
Related party | Others | Other receivable from related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Other receivables | ¥ 6 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of assets measured at fair value on recurring basis (Details) - Fair value measurements - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
FAIR VALUE MEASUREMENTS | ||
Assets measured at fair value | ¥ 70,369 | ¥ 197,058 |
Level 2 | ||
FAIR VALUE MEASUREMENTS | ||
Assets measured at fair value | ¥ 70,369 | ¥ 197,058 |
LEASES - Additional Information
LEASES - Additional Information (Details) | Dec. 31, 2022 |
LEASES | |
Operating leases, weighted average discount rate | 4.75% |
Operating leases, weighted-average remaining lease term | 2 years 2 months 12 days |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease cost | ||
Operating lease expense | ¥ 7,392 | ¥ 11,506 |
Short-term lease expense | 26 | 312 |
Total lease cost | ¥ 7,418 | ¥ 11,818 |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flow information for leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASES | ||
Operating cash flows relating to operating leases | ¥ 7,376 | ¥ 7,818 |
Lease liabilities arising from obtaining right-of-use assets | ¥ 1,629 | ¥ 6,080 |
LEASES - Aggregate future minim
LEASES - Aggregate future minimum rental payments under non-cancelable agreement (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
LEASES | |||
2024 | ¥ 3,738 | ||
2025 | 1,942 | ||
2026 and after | 999 | ||
Total future minimum rental payment | 6,679 | ||
Less amount representing imputed interest | (1,556) | ||
Present value of future minimum rental payments | 5,123 | ||
Less current portion, recorded in other current liabilities | (2,410) | $ (339) | ¥ (7,233) |
Long-term lease liabilities, recorded in other long-term liabilities | ¥ 2,713 | $ 382 | ¥ 6,792 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Operating lease commitments (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
COMMITMENTS AND CONTINGENCIES | |
Future minimum commitments under non-cancelable agreements | ¥ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Capital and other commitment (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | ||
Property, plant and equipment | ¥ 42,185 | ¥ 89,029 |
RESTRICTED NET ASSETS - Additio
RESTRICTED NET ASSETS - Additional Information (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
RESTRICTED NET ASSETS | ||
Amount of restricted net assets for consolidated and unconsolidated subsidiaries | ¥ 110,705 | ¥ 115,751 |