Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Viomi Technology Co., Ltd |
Entity Central Index Key | 0001742770 |
Current Fiscal Year End Date | --12-31 |
Trading Symbol | VIOT |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 90,200,000 |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 117,600,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 940,298 | $ 136,761 | ¥ 279,952 |
Restricted cash | 29,550 | 4,298 | 0 |
Short-term investments | 168,993 | 24,579 | 0 |
Accounts receivable from third parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 111,718 | 16,249 | 4,348 |
Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 260,984 | 37,959 | 249,548 |
Other receivables from related parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 112,320 | 16,336 | 57,608 |
Inventories | 231,975 | 33,739 | 50,692 |
Prepaid expenses and other current assets | 46,890 | 6,819 | 23,283 |
Total current assets | 1,902,728 | 276,740 | 665,431 |
Non-current assets | |||
Prepaid expenses and other non-current assets | 3,636 | 529 | 0 |
Property, plant and equipment, net | 11,301 | 1,644 | 3,086 |
Deferred tax assets | 5,234 | 761 | 3,048 |
Intangible assets, net | 169 | 25 | 0 |
Total non-current assets | 20,340 | 2,959 | 6,134 |
Total assets | 1,923,068 | 279,699 | 671,565 |
Current liabilities | |||
Accounts and notes payable (including accounts and notes payable of the consolidated VIEs without recourse to the Group of RMB291,643 and RMB548,481 as of December 31, 2017 and 2018, respectively) | 548,481 | 79,773 | 291,643 |
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Group of RMB27,015 and RMB86,312 as of December 31, 2017 and 2018, respectively) | 86,312 | 12,554 | 27,015 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of RMB35,953 and RMB5,763 as of December 31, 2017 and 2018, respectively) | 5,763 | 838 | 35,953 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Group of RMB60,953 and RMB179,712 as of December 31, 2017 and 2018, respectively) | 200,930 | 29,225 | 61,424 |
Share-based compensation liabilities (including share-based compensation liabilities of the consolidated VIEs without recourse to the Group of nil and nil as of December 31, 2017 and 2018, respectively) | 4,738 | ||
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Group of RMB11,612 and RMB10,199 as of December 31, 2017 and 2018, respectively) | 10,199 | 1,483 | 11,612 |
Total current liabilities | 851,685 | 123,873 | 432,385 |
Non-current liabilities | |||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Group of RMB460 and RMB518 as of December 31, 2017 and 2018, respectively) | 518 | 75 | 460 |
Total non-current liabilities | 518 | 75 | 460 |
Total liabilities | 852,203 | 123,948 | 432,845 |
Mezzanine equity | |||
Total mezzanine equity | 407,928 | ||
Shareholders’ (deficit) equity | |||
Additional paid-in capital | 1,193,174 | 173,540 | 9,679 |
Accumulated deficit | (95,527) | (13,894) | (160,885) |
Accumulated other comprehensive loss | (29,786) | (4,332) | (18,004) |
Total Viomi Technology Co., Ltd (the "Company")'s shareholders’ (deficit) equity | 1,067,873 | 155,316 | (169,208) |
Non-controlling interests | 2,992 | 435 | |
Total shareholders’ (deficit) equity | 1,070,865 | 155,751 | (169,208) |
Total liabilities, mezzanine equity and shareholders’ (deficit) equity | 1,923,068 | 279,699 | 671,565 |
Class B redeemable convertible ordinary shares | |||
Mezzanine equity | |||
Total mezzanine equity | 256,883 | ||
Series A redeemable convertible preferred shares | |||
Mezzanine equity | |||
Total mezzanine equity | 151,045 | ||
Class A Ordinary Shares | |||
Shareholders’ (deficit) equity | |||
Ordinary shares, value | 2 | ||
Class A Ordinary Shares | Post-IPO | |||
Shareholders’ (deficit) equity | |||
Ordinary shares, value | 5 | 1 | 0 |
Class B Ordinary Shares | Post-IPO | |||
Shareholders’ (deficit) equity | |||
Ordinary shares, value | ¥ 7 | $ 1 | ¥ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017$ / shares |
Accounts and notes payable current | ¥ 548,481 | $ 79,773 | ¥ 291,643 | |
Advances from customers | 86,312 | 12,554 | 27,015 | |
Amounts due to related parties | 5,763 | 838 | 35,953 | |
Accrued expenses and other liabilities current | 200,930 | 29,225 | 61,424 | |
Share-based compensation liabilities | ¥ | 4,738 | |||
Income tax payables | 10,199 | 1,483 | 11,612 | |
Accrued expenses and other liabilities non current | 518 | $ 75 | 460 | |
VIEs | ||||
Accounts Receivable, Net, Current | ¥ | ||||
Accounts and notes payable current | ¥ | 548,481 | 291,643 | ||
Advances from customers | ¥ | 86,312 | 27,015 | ||
Amounts due to related parties | ¥ | 5,763 | 35,953 | ||
Accrued expenses and other liabilities current | ¥ | 179,712 | 60,953 | ||
Income tax payables | ¥ | 10,199 | 11,612 | ||
Accrued expenses and other liabilities non current | ¥ | 518 | 460 | ||
Related Party | ||||
Accounts Receivable, Net, Current | ¥ | 0 | 0 | ||
Accounts and Other Receivables, Net, Current | ¥ | 0 | 0 | ||
Third Party | ||||
Accounts Receivable, Net, Current | ¥ | ¥ 0 | ¥ 0 | ||
Class B Ordinary Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||
Mezzanine equity, shares authorized | 0 | 0 | 1,352,727,280 | |
Mezzanine equity, shares issued | 0 | 0 | 135,272,728 | |
Mezzanine equity, shares outstanding | 0 | 0 | 84,545,455 | |
Mezzanine equity, liquidation value | ¥ | ¥ 0 | ¥ 9,306 | ||
Series A Preferred Shares | ||||
Mezzanine equity, par value | $ / shares | $ 0.00001 | 0.00001 | ||
Mezzanine equity, shares authorized | 0 | 0 | 181,818,180 | |
Mezzanine equity, shares issued | 0 | 0 | 18,181,818 | |
Mezzanine equity, shares outstanding | 0 | 0 | 18,181,818 | |
Mezzanine equity, liquidation value | ¥ | ¥ 0 | ¥ 183,453 | ||
Class A Ordinary Shares | ||||
Common stock, par value per share | $ / shares | $ 0.00001 | |||
Common stock, shares issued | 33,818,182 | |||
Common stock, shares outstanding | 0 | 0 | 25,363,636 | |
Class A Ordinary Shares | Before Share Split Event After Retroactive Adjustment [Member] | ||||
Common stock, par value per share | $ / shares | $ 0.00001 | |||
Common stock, shares authorized | 3,465,454,540 | |||
Class A Ordinary Shares | Post-IPO | ||||
Common stock, par value per share | $ / shares | $ 0.00001 | |||
Common stock, shares authorized | 4,800,000,000 | 4,800,000,000 | ||
Common stock, shares issued | 90,200,000 | 90,200,000 | ||
Common stock, shares outstanding | 90,200,000 | 90,200,000 | ||
Class B Ordinary Shares | Post-IPO | ||||
Common stock, par value per share | $ / shares | $ 0.00001 | |||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||
Common stock, shares issued | 117,600,000 | 117,600,000 | ||
Common stock, shares outstanding | 117,600,000 | 117,600,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
A related party | ¥ 1,311,852 | $ 190,801 | ¥ 739,464 | ¥ 299,827 |
Third parties | 1,249,377 | 181,714 | 133,755 | 12,747 |
Total net revenues | 2,561,229 | 372,515 | 873,219 | 312,574 |
Cost of revenues | ||||
Purchase from a related party | (14,733) | (2,143) | (1,296) | (1,321) |
Purchase from third parties | (1,828,699) | (265,973) | (596,740) | (231,223) |
Total cost of revenues | (1,843,432) | (268,116) | (598,036) | (232,544) |
Gross profit | 717,797 | 104,399 | 275,183 | 80,030 |
Operating expenses: | ||||
Research and development expenses | (124,230) | (18,069) | (60,749) | (29,926) |
Selling and marketing expenses (including RMB166, RMB3,327 and RMB24,598 with related parties for the years ended December 31, 2016, 2017 and 2018, respectively) | (379,554) | (55,204) | (95,296) | (20,929) |
General and administrative expenses | (135,532) | (19,712) | (15,818) | (14,386) |
Total operating expenses | (639,316) | (92,985) | (171,863) | (65,241) |
Other (expenses) income | 1,829 | 266 | 2,236 | (481) |
Income from operations | 80,310 | 11,680 | 105,556 | 14,308 |
Interest (expenses) income and short-term investment income (including net interest expense of RMB1,489, RMB1,271 and RMB333 with related parties for the years ended December 31, 2016, 2017 and 2018, respectively) | 8,846 | 1,287 | 2,402 | (296) |
Other non-operating income | 255 | 37 | ||
Income before income tax benefits (expenses) | 89,411 | 13,004 | 107,958 | 14,012 |
Income tax benefits (expenses) | (24,061) | (3,500) | (14,718) | 2,247 |
Net income | 65,350 | 9,504 | 93,240 | 16,259 |
Less: Net loss attributable to the non-controlling interest shareholder | (8) | (1) | ||
Net income attributable to the Company | 65,358 | 9,505 | 93,240 | 16,259 |
Net (loss) income attributable to ordinary shareholders of the Company | 50,544 | 7,350 | 8,033 | (3,453) |
Net income attributable to the Company | 65,358 | 9,505 | 93,240 | 16,259 |
Foreign currency translation adjustment | (11,782) | (1,714) | 19,102 | (23,080) |
Total comprehensive (loss) income attributable to the Company | ¥ 53,576 | $ 7,791 | ¥ 112,342 | ¥ (6,821) |
Net (loss) income per ADS* | ||||
-Basic | (per share) | ¥ 0.70 | $ 0.10 | ¥ 0.39 | ¥ (0.28) |
-Diluted | (per share) | ¥ 0.64 | $ 0.09 | ¥ 0.31 | ¥ (0.28) |
Weighted average number of ADS used in calculating net income per ADS | ||||
-Basic | 71,771,033 | 71,771,033 | 20,684,681 | 12,230,136 |
-Diluted | 79,590,780 | 79,590,780 | 25,579,806 | 12,230,136 |
Series A Preferred Shares | ||||
Operating expenses: | ||||
Accretion of Series A Preferred Shares | ¥ (6,563) | $ (955) | ¥ (8,834) | ¥ (8,221) |
Cumulative dividend | (7,631) | (1,110) | (10,803) | (10,628) |
Undistributed earnings allocated | ¥ | (7,061) | |||
Class B Ordinary Shares | ||||
Operating expenses: | ||||
Cumulative dividend | ¥ (620) | $ (90) | (877) | ¥ (863) |
Undistributed earnings allocated | ¥ | (52,533) | |||
Unvested Class A Ordinary Shares | ||||
Operating expenses: | ||||
Undistributed earnings allocated | ¥ | ¥ (5,099) | |||
American Depositary Shares | ||||
Net (loss) income per ADS* | ||||
-Basic | (per share) | ¥ 2.10 | $ 0.31 | ¥ 1.17 | ¥ (0.84) |
-Diluted | (per share) | ¥ 1.92 | $ 0.28 | ¥ 0.93 | ¥ (0.84) |
Weighted average number of ADS used in calculating net income per ADS | ||||
-Basic | 23,923,678 | 23,923,678 | 6,894,894 | 4,076,712 |
-Diluted | 26,530,260 | 26,530,260 | 8,526,602 | 4,076,712 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Selling and marketing expenses from related party | ¥ 24,598 | ¥ 3,327 | ¥ 166 | |
Interest expense from related party | 333 | 1,271 | 1,489 | |
Share-based compensation expense | 116,611 | 5,821 | 10,578 | |
General and Administrative Expenses | ||||
Share-based compensation expense | 93,718 | $ 13,631 | 3,303 | 6,863 |
Research and Development Expenses | ||||
Share-based compensation expense | 14,476 | 2,105 | 1,903 | 3,464 |
Selling and Marketing Expenses | ||||
Share-based compensation expense | ¥ 8,417 | $ 1,224 | ¥ 615 | ¥ 251 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | FounderCNY (¥) | Conversion of Series A Redeemable Convertible Preferred Shares into Post-IPO Class A Ordinary SharesCNY (¥) | Conversion of Class B Redeemable Convertible Ordinary Shares into Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary SharesCNY (¥) | 2015 Share Incentive PlanCNY (¥) | 2015 and 2018 Share Incentive PlanCNY (¥) | Class A Ordinary Sharesshares | Post-IPOClass A Ordinary Sharesshares | Post-IPOClass B Ordinary Sharesshares | Common StockClass A Ordinary SharesCNY (¥)shares | Common StockClass A Ordinary SharesFoundershares | Common StockClass A Ordinary SharesConversion of common class a ordinary shares into post IPO class B ordinary sharesCNY (¥)shares | Common StockPost-IPOClass A Ordinary SharesCNY (¥)shares | Common StockPost-IPOClass A Ordinary SharesConversion of Series A Redeemable Convertible Preferred Shares into Post-IPO Class A Ordinary SharesCNY (¥)shares | Common StockPost-IPOClass A Ordinary SharesConversion of Class B Redeemable Convertible Ordinary Shares into Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary SharesCNY (¥)shares | Common StockPost-IPOClass A Ordinary SharesConversion of common class a ordinary shares into post IPO class B ordinary sharesshares | Common StockPost-IPOClass B Ordinary SharesCNY (¥)shares | Common StockPost-IPOClass B Ordinary SharesConversion of Class B Redeemable Convertible Ordinary Shares into Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary SharesCNY (¥)shares | Common StockPost-IPOClass B Ordinary SharesConversion of common class a ordinary shares into post IPO class B ordinary sharesCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalFounderCNY (¥) | Additional Paid-in CapitalConversion of Series A Redeemable Convertible Preferred Shares into Post-IPO Class A Ordinary SharesCNY (¥) | Additional Paid-in CapitalConversion of Class B Redeemable Convertible Ordinary Shares into Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary SharesCNY (¥) | Additional Paid-in Capital2015 Share Incentive PlanCNY (¥) | Additional Paid-in Capital2015 and 2018 Share Incentive PlanCNY (¥) | Accumulated DeficitCNY (¥) | Accumulated Other Comprehensive LossCNY (¥) | Total the Company's shareholders' DeficitCNY (¥) | Total the Company's shareholders' DeficitFounderCNY (¥) | Total the Company's shareholders' DeficitConversion of Series A Redeemable Convertible Preferred Shares into Post-IPO Class A Ordinary SharesCNY (¥) | Total the Company's shareholders' DeficitConversion of Class B Redeemable Convertible Ordinary Shares into Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary SharesCNY (¥) | Total the Company's shareholders' Deficit2015 Share Incentive PlanCNY (¥) | Total the Company's shareholders' Deficit2015 and 2018 Share Incentive PlanCNY (¥) | Non-Controlling InterestCNY (¥) |
Balances at Dec. 31, 2015 | ¥ (274,888) | ¥ 3,272 | ¥ (264,134) | ¥ (14,026) | ¥ (274,888) | ||||||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2015 | shares | 8,454,544 | ||||||||||||||||||||||||||||||||||
Vesting of restricted Class A ordinary shares | 678 | ¥ 1 | 677 | 678 | |||||||||||||||||||||||||||||||
Vesting of restricted Class A ordinary shares (in shares) | shares | 8,454,546 | ||||||||||||||||||||||||||||||||||
Net income (loss) | 16,259 | 16,259 | 16,259 | ||||||||||||||||||||||||||||||||
Share-based compensation related to Restricted Shares | 6,144 | 6,144 | 6,144 | ||||||||||||||||||||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 4,168 | ¥ 4,168 | ¥ 4,168 | ||||||||||||||||||||||||||||||||
Accretion of Series A Preferred Shares | (8,221) | (8,221) | (8,221) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (23,080) | (23,080) | (23,080) | ||||||||||||||||||||||||||||||||
Balances at Dec. 31, 2016 | (278,940) | ¥ 1 | 6,040 | (247,875) | (37,106) | (278,940) | |||||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2016 | shares | 16,909,090 | ||||||||||||||||||||||||||||||||||
Vesting of restricted Class A ordinary shares | 689 | ¥ 1 | 688 | 689 | |||||||||||||||||||||||||||||||
Vesting of restricted Class A ordinary shares (in shares) | shares | 8,454,546 | ||||||||||||||||||||||||||||||||||
Net income (loss) | 93,240 | 93,240 | 93,240 | ||||||||||||||||||||||||||||||||
Share-based compensation related to Restricted Shares | 2,718 | 2,718 | 2,718 | ||||||||||||||||||||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 2,817 | ¥ 2,817 | ¥ 2,817 | ||||||||||||||||||||||||||||||||
Statutory reserve | 6,250 | (6,250) | |||||||||||||||||||||||||||||||||
Accretion of Series A Preferred Shares | (8,834) | (8,834) | (8,834) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 19,102 | 19,102 | 19,102 | ||||||||||||||||||||||||||||||||
Balances at Dec. 31, 2017 | (169,208) | ¥ 2 | 9,679 | (160,885) | (18,004) | (169,208) | |||||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2017 | shares | 25,363,636 | 25,363,636 | |||||||||||||||||||||||||||||||||
Surrender and cancellation of Class A ordinary shares | 457 | ¥ (1) | 458 | 457 | |||||||||||||||||||||||||||||||
Surrender and cancellation of Class A ordinary shares (in Shares) | shares | (11,754,546) | ||||||||||||||||||||||||||||||||||
Vesting of restricted Class A ordinary shares | 188 | 188 | 188 | ||||||||||||||||||||||||||||||||
Vesting of restricted Class A ordinary shares (in shares) | shares | 2,536,364 | ||||||||||||||||||||||||||||||||||
Net income (loss) | 65,350 | $ 9,504 | 65,358 | 65,358 | ¥ (8) | ||||||||||||||||||||||||||||||
Share-based compensation related to Restricted Shares | 840 | 840 | 840 | ||||||||||||||||||||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 25,391 | ¥ 25,391 | ¥ 25,391 | ||||||||||||||||||||||||||||||||
Share-based compensation related to the share awards | ¥ 90,168 | ¥ 90,168 | ¥ 90,168 | ||||||||||||||||||||||||||||||||
Share-based compensation related to the share awards (in shares) | shares | 4,000,000 | ||||||||||||||||||||||||||||||||||
Accretion of Series A Preferred Shares | (6,563) | (6,563) | (6,563) | ||||||||||||||||||||||||||||||||
Issuance of ordinary shares upon the completion of the Initial Public Offering (the "IPO") | 633,508 | ¥ 2 | 633,506 | 633,508 | |||||||||||||||||||||||||||||||
Issuance of ordinary shares post Initial Public Offering, in shares | shares | 34,200,000 | ||||||||||||||||||||||||||||||||||
Securities converted into Ordinary Shares upon the completion of the Initial Public Offering | ¥ 165,095 | ¥ 274,421 | ¥ (1) | ¥ 1 | ¥ 2 | ¥ 6 | ¥ 1 | ¥ 165,094 | ¥ 274,413 | ¥ 165,095 | ¥ 274,421 | ||||||||||||||||||||||||
Securities have been converted into Ordinary Shares upon the completion of the Initial Public Offering (in shares) | shares | (20,145,454) | 18,181,818 | 33,818,182 | 4,000,000 | 101,454,546 | 16,145,454 | |||||||||||||||||||||||||||||
Capital injection in a subsidiary from non controlling interest shareholder | 3,000 | 3,000 | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (11,782) | (1,714) | (11,782) | (11,782) | |||||||||||||||||||||||||||||||
Balances at Dec. 31, 2018 | ¥ 1,070,865 | $ 155,751 | ¥ 5 | ¥ 7 | ¥ 1,193,174 | ¥ (95,527) | ¥ (29,786) | ¥ 1,067,873 | ¥ 2,992 | ||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2018 | shares | 0 | 90,200,000 | 117,600,000 | 90,200,000 | 117,600,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ 65,350 | $ 9,504 | ¥ 93,240 | ¥ 16,259 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 2,270 | 330 | 1,680 | 1,222 |
Inventory write-down | 1,059 | 154 | 81 | 1,658 |
Share-based compensation | 116,611 | 16,960 | 5,821 | 10,578 |
Deferred income tax benefits | (2,186) | (318) | (801) | (2,247) |
Investment loss | 364 | 53 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable from third parties | (107,370) | (15,616) | (4,348) | |
Accounts receivable from a related party | (11,436) | (1,663) | (204,527) | (33,084) |
Inventories | (182,342) | (26,521) | (26,577) | (3,267) |
Prepaid expenses and other current assets | (23,607) | (3,433) | (8,745) | (7,408) |
Other receivables from related parties | (87,384) | (12,709) | (25,771) | 847 |
Amounts due to related parties | 4,005 | 583 | 1,179 | (66) |
Accounts and notes payable | 256,838 | 37,356 | 218,614 | 12,111 |
Advances from customers | 59,297 | 8,624 | 19,312 | 7,702 |
Income tax payables | (1,413) | (206) | 11,612 | |
Accrued expenses and other liabilities | 132,213 | 19,230 | 43,136 | 11,194 |
Net cash provided by operating activities | 222,269 | 32,328 | 123,906 | 15,499 |
Cash flows from investing activities | ||||
Cash received from loan repayment from a related party | 31,441 | 4,573 | ||
Purchase of equipment | (13,505) | (1,964) | (1,234) | (1,609) |
Purchase of non-current assets | (216) | (31) | ||
Purchase of intangible assets | (184) | (27) | ||
Purchase of short-term investments | (238,714) | (34,720) | ||
Maturity of a short-term investment | 69,357 | 10,088 | ||
Net cash used in investing activities | (151,821) | (22,081) | (1,234) | (1,609) |
Cash flows from financing activities | ||||
Repayment of debt to a related party | (31,900) | (4,640) | ||
Cash received from shareholders | 2,705 | 393 | 2,671 | |
Net proceeds from issuance of ordinary shares upon IPO | 636,170 | 92,527 | ||
Capital injection in a subsidiary from non-controlling shareholder | 3,000 | 436 | ||
Cash paid to a related party | (5,000) | (727) | ||
Proceeds received from issuance of Series A Preferred Shares | 0 | 0 | 12,999 | |
Net cash provided by financing activities | 604,975 | 87,989 | 2,671 | 12,999 |
Effect of exchange rate changes on cash and cash equivalents | 14,473 | 2,105 | (2,321) | 2,913 |
Net increase in cash and cash equivalents and restricted cash | 689,896 | 100,341 | 123,022 | 29,802 |
Cash and cash equivalents at the beginning of the year | 279,952 | 40,718 | 156,930 | 127,128 |
Cash and cash equivalents and restricted cash at the end of the year | 969,848 | 141,059 | 279,952 | 156,930 |
Cash and cash equivalents at the end of the year | 940,298 | 136,761 | 279,952 | 156,930 |
Restricted cash at the end of the year | 29,550 | 4,298 | 0 | |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income tax | (27,660) | (4,023) | (3,907) | |
Cash paid for interest expense | (768) | (112) | (1,785) | (1,790) |
Acquisition of equipment in form of other payable | ¥ 430 | $ 63 | ¥ 54 | ¥ 35 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES 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 variable interest entities (“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”), 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 Ordinary Shares to exchange the interest of RMB5,000 in Foshan Viomi owned by Mr. Chen, and 67,636,364 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. Prior to the completion of the IPO, in accordance with 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. As the number of outstanding shares remained unchanged, the share split does not have an impact to the basic and diluted net (loss) income per share for the years ended December 31, 2016 and 2017. The par value per ordinary share has been retroactively revised as if it had been adjusted in proportion to the share split. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) As of December 31, 2018, details of the Company’s principal subsidiaries and VIEs were as follows: Place of incorporation Date of incorporation Percentage of beneficial ownership Principal activities Subsidiaries : Viomi HK Hong Kong January 30, 2015 100% Investment holding Lequan PRC May 15, 2015 100% Investment holding 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 Lizi Technology Co., Ltd. (“Guangdong Lizi”) PRC July 26, 2018 VIE’s subsidiary Home appliance development and sales (b) 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 Post-IPO Class A Ordinary Shares, were issued and sold to the public at a price of US$9.00 per ADS. Following the resolution of the shareholders of the Company on August 23, 2018, t he 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 (‘‘Post-IPO Class A Ordinary Shares’’), (ii) 150,000,000 class B ordinary shares of a par value of US$0.00001 each (‘‘Post-IPO 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 Post-IPO Class A Ordinary Share is entitled to one vote, and each Post-IPO Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. Each Post-IPO Class B Ordinary Share is convertible into one Post-IPO Class A ordinary share at any time by the holder thereof. Post-IPO Class A Ordinary Shares are not convertible into Post-IPO Class B Ordinary Shares under any circumstances. Upon any transfer of Post-IPO Class B Ordinary Shares by a holder to any person or entity other than holders of Post-IPO Class B Ordinary Shares or their affiliates, such Post-IPO Class B Ordinary Shares shall be automatically and immediately converted into the equivalent number of Post-IPO 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 Class B Ordinary Shares held by Red Better, and 67,636,364 issued 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 Post-IPO 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 Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Post-IPO Class A Ordinary Shares on a one-for-one basis. (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary The Company, through Lequan, entered into the following contractual arrangements with Foshan Viomi, Beijing Viomi and their shareholders that enable the Company through its PRC subsidiary 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 is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that Lequan is the primary beneficiary of the VIEs, the Company believes Lequan’s rights under the terms of the option agreement provide it 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 to currently exercise its rights under the exclusive option agreement. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) A simple majority vote of Lequan’s board of directors is required to pass a resolution to exercise Lequan’s rights under the option agreement, for which Mr. Chen’s, the CEO of the Company, consent is not required. Lequan’s rights under the option agreement give Lequan the power to control the shareholders of Foshan Viomi and Beijing Viomi. In addition, Lequan’s rights under the shareholder voting proxy agreement also reinforce Lequan’s 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 has the rights to receive substantially all of the economic benefits from the VIEs. Exclusive consulting and service agreement. In July 2015, Lequan entered into exclusive consultation and service agreements with Foshan Viomi and Beijing Viomi respectively to enable Lequan to receive substantially all of the economic benefits of the VIEs. Under the exclusive consultation and service agreements, Lequan has the exclusive right to provide or designate any entity affiliated with it to provide VIEs the technical and business support services, including information technology support, hardware management and updates, software development, maintenance and updates and other operating services. The exclusive consultation and service agreement could be indefinitely effective unless a written agreement is signed by all parties to terminate it or a mandatory termination is requested by PRC laws or regulations. The exclusive consultation and service agreement was effective in July 2015. The consultation and service agreement will remain effective until all equity interests and assets in Foshan Viomi and Beijing Viomi are sold to Lequan or the party designated by Lequan. Under this arrangement, Lequan has the sole discretion to receive an annual service fee at an amount up to 100% of the annual net income of Foshan Viomi and Beijing Viomi. In addition, Lequan is entitled to receive certain other technical service fees at the amount mutually agreed upon by Lequan and the respective VIE. Equity pledge agreement. Pursuant to the equity pledge agreements in July 2015 among Foshan Viomi, Beijing Viomi, all of their shareholders and Lequan, all shareholders of Foshan Viomi and Beijing Viomi agreed to pledge their equity interests in Foshan Viomi or Beijing Viomi to Lequan to secure the performance of the VIEs’ obligations under the existing exclusive purchase option agreement, shareholder voting proxy agreement, exclusive consulting and service agreement and also the equity pledge agreement. The Pledge will remain binding until Foshan Viomi, Beijing Viomi and their shareholders discharge all their obligations under the contractual agreements. Exclusive purchase option agreement. Pursuant to the exclusive option agreements entered into in July 2015 among Lequan, Foshan Viomi, Beijing Viomi and their shareholders, the shareholders of Foshan Viomi and Beijing Viomi are obligated to sell their equity interest to Lequan. Lequan has the exclusive and irrevocable right to purchase, or cause the shareholders of Foshan Viomi and Beijing Viomi to sell to the party designated by Lequan, in Lequan’s sole discretion, all of the shareholders’ equity interests or any assets in Foshan Viomi and Beijing Viomi when and to the extent that applicable PRC law permits Lequan to own such equity interests and assets in Foshan Viomi and Beijing Viomi. The price to be paid by Lequan or any party designated by Lequan will be the minimum amount of consideration permitted by applicable PRC law at the time when such transaction occurs. All of the shareholders promised and agreed that they will refund the consideration once received to Lequan or any party designated by Lequan within 10 working days. Also, the shareholders of Foshan Viomi and Beijing Viomi should try their best to help Foshan Viomi and Beijing Viomi develop well and are prohibited from transferring, pledging, intentionally terminating significant contracts or otherwise disposing of any significant assets in Foshan Viomi and Beijing Viomi without Lequan’s prior written consent. The exclusive option agreement will remain effective until all equity interests and assets in Foshan Viomi and Beijing Viomi are sold to Lequan or the party designated by Lequan. Shareholder voting proxy agreement. On July 21, 2015, all of the shareholders of Foshan Viomi and Beijing Viomi have executed a shareholder voting proxy agreement with Lequan, Foshan Viomi and Beijing Viomi, whereby all of the shareholders irrevocably appoint and constitute the person designated by Lequan as their attorney-in-fact to exercise on their behalf any and all rights that the shareholders have in respect of their equity interests in Foshan Viomi and Beijing Viomi. The shareholder voting proxy agreement will be indefinitely effective unless all parties decide to terminate it by written 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. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) 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 between Lequan and its 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’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. 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 only 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 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. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) 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. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and its subsidiaries taken as a whole, which were included in the Group’s consolidated balance sheets and consolidated statements of comprehensive (loss) income. Transactions between the VIEs and its subsidiaries and the Group’s subsidiaries are eliminated in the financial information presented below: As of December 31, 2017 2018 RMB RMB Cash and cash equivalents 210,280 401,424 Restricted cash — 29,550 Short-term investments — 168,993 Accounts receivable from third parties (net of allowance of nil and nil as of December 31, 2017and 2018, respectively) 4,348 111,718 Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) 249,548 260,984 Other receivable from related parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) 24,160 112,320 Inventories 50,692 231,975 Prepaid expenses and other current assets 22,986 46,499 Total current assets 562,014 1,363,463 Property, plant and equipment, net 3,086 11,301 Deferred tax assets 3,048 5,234 Intangible assets, net — 169 Prepaid expenses and other non-current assets — 3,636 Total non-current assets 6,134 20,340 Total assets 568,148 1,383,803 Accounts and notes payable 291,643 548,481 Advances from customers 27,015 86,312 Amounts due to related parties 35,953 5,763 Accrued expenses and other liabilities 60,953 179,712 Income tax payables 11,612 10,199 Total current liabilities 427,176 830,467 Accrued expenses and other liabilities 460 518 Total non-current liabilities 460 518 Total liabilities 427,636 830,985 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) Year ended December 31, 2016 2017 2018 RMB RMB RMB Revenue 312,523 873,083 2,561,229 Net income 16,295 92,159 70,232 Net cash provided by operating activities 13,146 123,182 209,690 Net cash used in investing activities (1,609 ) (1,234 ) (183,262 ) Net cash provided by (used in) financing activities 12,999 — (37,731 ) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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 beneficiary. 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, fair value of preferred shares, 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 subsidiary incorporated in Hong Kong is 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, 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 (loss) income in the statement of comprehensive (loss) income. 2. SIGNIFICANT ACCOUNTING POLICIES (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 (loss) income. (e) Convenience Translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive (loss) income and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2018 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB6.8755 on December 31, 2018 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2018, 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. As the Company adopted Accounting Standards Update No. 2016-18 on January 1, 2018, 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 investments 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 (loss) income. (i) Accounts receivable Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (j) Inventories The Group procures certain key raw materials and components from suppliers and send the materials to contract manufacturers for manufacture. The Group receives the finished goods from the contract manufacturers. Therefore, inventories of the Group consist of raw materials and finished goods. Inventories are stated at the lower of cost or net realizable value. Inventory costs include expenses that are directly or indirectly incurred in the purchase, and production of manufactured product for sale. 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 estimated excess and obsolete inventory based upon the product life-cycle. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive (loss) income. ( k ) 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 Computers and equipment 2-3 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 (loss) income. ( l ) Intangible assets Intangible assets mainly consist of software. 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 5 years ( m ) Leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rental expense is recognized from the date of initial possession of the leased property on a straight-line basis over the term of the lease. Rental expenses incurred by the Group were RMB0.4 million, RMB1.1 million and RMB 3.9 million for the years ended December 31, 2016, 2017 and 2018, respectively. The Group has no capital leases for any of the years presented. ( n ) Mezzanine equity Mezzanine equity represents the Series A Preferred Shares and Class B Ordinary Shares issued by the Company. The Series A Preferred Shares and Class B Ordinary Shares are redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. Therefore, the Group classifies the Series A Preferred Shares and Class B Ordinary Shares as mezzanine equity (Note 14). In accordance with ASC 480-10, the mezzanine equity was initially measured based on its fair value at date of issue. Since the Series A Preferred Shares and Class B Ordinary Shares will be redeemable at the holder’s option 5 years from issuance if the Series A Preferred Shares and Class B Ordinary Shares are not converted, either voluntarily or automatically upon a qualified initial public offering (“Qualified IPO”), the Company accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using the interest method. Moreover, according to ASC-480-10-S99-2, where fair value at date of issue is less than the mandatory redemption amount, the carrying amount shall be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. Increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. As such, the accretion to the carrying amount of preferred share is recognized at minimum rate per annum of issuance price and plus the dividend declared. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( o ) Revenue recognition In May 2014, the Financial Accounting Standards Board (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 primary derived from (i) IoT-enabled smart home products including smart water purification systems, smart kitchen products, and other smart products, (ii) consumable products complementary to the Group’s IoT smart home products, such as water purifier filters, (iii) others including the sales of other related household products as well as service fees from rendering of installation services. Refer to Note 11 to the consolidated financial statements for disaggregation of the Group’s revenue by type of product and service for the years ended December 31, 2016, 2017 and 2018. 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, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 RMB RMB RMB Sales to Xiaomi 299,827 739,464 1,311,852 —Xiaomi-branded products 280,501 654,950 1,175,332 —Viomi-branded products 19,326 84,514 136,520 Sales to third-party customers 12,747 133,755 1,249,377 312,574 873,219 2,561,229 a) Sales to Xiaomi’s affiliate Xiaomi Telecommunication Technology Co., Ltd. (“Xiaomi Telecommunication Technology”) The Group generated a substantial portion of its revenues from sales of products to Xiaomi. Under the cooperation agreement entered between the Group and Xiaomi Telecommunication Technology, 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 from Xiaomi is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue from Xiaomi 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) For a few 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 50 percent 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. For the years ended December 31, 2016, 2017 and 2018, net revenues earned from second installment payment arrangement represented 15.3%, 15.0%and 9.0% of total revenue from Xiaomi, respectively. 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. - 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 inventory 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. The Group provides installation service to end customers for a few 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. The assessment of estimated breakage would be updated on a quarterly basis. Changes in estimated breakage should be accounted for by adjusting contract liabilities to reflect the remaining rights expected to be exercised. 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. SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 service is recognized when the service is rendered. 2 ) Sales returns and sales incentives - Sales to leading e-commerce platforms The Group’s sales to leading e-commerce platforms starting 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 60 days or 90 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 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 inventory turnover and aging in 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. As of December 31, 2018, the expected return was insignificant to the Group. The Group would update its estimate at each period end. 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. - Sales to Xiaomi and offline experience stores Except for quality problem of the products, the Group does not allow sales return from Xiaomi and offline experience stores. The Group may provide sales rebates to the customers based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to the customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. For the years ended December 31, 2016, 2017 and 2018, the amount of sales rebate was insignificant. - 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. As of December 31, 2016, 2017 and 2018, the amount of expected 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 4 ) Value added taxes Value added taxes (“VAT”) on sales is calculated at 17% on revenue from products before April 30, 2018 and 16% after May 1, 2018. The Group reports revenue net of VAT. Subsidiaries and VIEs that are VAT general tax payers 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. There was no activity in the allowance for doubtful accounts for the years presented as these key customers are of a good credit reputation and always make the payment timely. The opening balance of accounts receivable from these key customers as of January 1, 2017 was RMB45,021. As of December 31, 2017 and 2018, accounts receivable were RMB253,896 and RMB372,702, respectively. Contract liabilities consist of deferred revenue related to the Group’s provision of installation 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. The opening balance of deferred revenue as of January 1, 2017 was RMB29. As of December 31, 2017 and 2018, deferred revenue were RMB146 and RMB1,276, respectively. During the years ended December 31, 2016, 2017 and 2018, the Group recognized revenue of installation services amounted to RMB57, RMB716 and RMB14,635, respectively. The Group expects to recognize approximately RMB1,276 of the unearned amount for the Group’s remaining performance obligations related to installation services in 2019. During the years ended December 31, 2016, 2017 and 2018, 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. ( p ) 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. ( q ) 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 ( r ) 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 RMB8,065, RMB39,638 and RMB130,796 for the years ended December 31, 2016, 2017 and 2018, respectively. The shipping expenses amounted to RMB2,633, RMB20,044 and RMB140,456 for the years ended December 31, 2016, 2017 and 2018, respectively. ( s ) 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( t ) Government subsidies Government subsidies represent 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 (loss) income when it has fulfilled all of its obligation related to the subsidy. The Group recorded RMB140, RMB1,278 and RMB1,440 of subsidy income for the years ended December 31, 2016, 2017 and 2018, respectively. ( u ) 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 RMB3,199, RMB8,016 and RMB18,889 for the years ended December 31, 2016, 2017 and 2018, respectively. ( v ) Share-based compensation Share-based compensation expenses arise from share-based awards, mainly including Restricted Shares held by the Founder or held by the Founder on behalf of certain key management founders and share options for the purchase of ordinary shares. The Company accounts for share-based awards granted to the Founder and employees in accordance with ASC 718 Stock Compensation. Before the Reorganization, the Restricted Shares held by the Founders were subject to a repurchase feature under which Xiaomi shall purchase the interest held by Founders at the original investment amount if the Founders voluntarily terminate their employment with Foshan Viomi. The Restricted Shares were classified as equity classified awards as the underlying shares of the awards are ordinary shares of Foshan Viomi and the awards do not contain any of the characteristics of liability awards described in ASC718. The Restricted Shares are accounted for as share-based compensation based on the grant date fair value over the vesting period. After the Reorganization completed in July 2015, the repurchase feature remains, however, it became the Company’s right, and not the obligation to repurchase. With respect to the remaining unvested interest granted to the Founder on behalf of certain key management founders, the underlying shares changed from ordinary shares of Foshan Viomi to Class A ordinary shares of the Company. These shares remain to be equity clas |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
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. 3. CONCENTRATION AND RISKS (Continued) (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, accounts receivable and amounts due from related parties. The Group places its cash and cash equivalents, restricted cash and short-term investments 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. 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. Accounts receivable from third-parties concentration of credit risk as below: As of December 31, 2017 2018 RMB RMB Company A — — 58,766 53 % Company B — — 36,734 33 % Company C 2,778 64 % * * * Less than 10% Other receivables from related parties concentration of credit risk as below: As of December 31, 2017 2018 RMB RMB Xiaomi Inc. 24,160 42 % 112,320 100 % Xiaomi H.K. Limited (“Xiaomi H.K.”) 33,448 58 % — — (c) Revenue concentration risk Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi Telecommunication Technology 299,827 96 % 739,464 85 % 1,311,852 51 % The revenue generated from Xiaomi included sale of both Xiaomi-branded and Viomi-branded products. Revenue from sale of Viomi-branded products amounted to RMB19,326, RMB84,514 and RMB136,520 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
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, 2017 and 2018 primarily consist of the following currencies: As of December 31, 2017 As of December 31, 2018 RMB RMB Amount equivalent Amount equivalent US$ 11,163 73,001 88,529 607,596 RMB 206,951 206,951 332,702 332,702 Total 279,952 940,298 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
RESTRICTED CASH | 5. RESTRICTED CASH As of December 31, 2018, the Group held restricted cash of |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Schedule Of Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 6 . SHORT-TERM INVESTMENTS Short-term investments represent structured deposits with maturities of less than one year. In accordance with ASC 825, the Company elected the fair value method at the date of initial recognition and carried these short-term investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive (loss) income as short-term investment income. Short-term investments balance as of December 31, 2018 is primarily denominated in the following currencies: As of December 31, 2017 As of December 31, 2018 RMB RMB Amount equivalent Amount equivalent RMB — — 100,022 100,022 US$ — — 10,049 68,971 Total — 168,993 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 7 . INVENTORIES Inventories consisted of the followings: As of December 31, 2017 2018 RMB RMB Finished goods 13,956 136,494 Raw materials 36,736 95,481 Inventories 50,692 231,975 For the years ended December 31, 2016, 2017 and 2018, the Group recorded write-down of RMB1,658, RMB81 and RMB1,059 for obsolete inventories, respectively. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | 8 . PREPAID EXPENSES AND OTHER ASSETS As of December 31, 2017 2018 RMB RMB Advances to suppliers 14,428 23,549 Other receivables 3,054 15,361 Prepayment for equipment — 3,636 Other current assets 5,525 7,745 Rental deposits 276 235 Total 23,283 50,526 Less: non-current portion — (3,636 ) Prepaid expenses and other assets-current portion 23,283 46,890 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 9 . PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of December 31, 2017 2018 RMB RMB Computers and equipment 5,815 16,270 Vehicle 508 508 Total 6,323 16,778 Less: accumulated depreciation (3,237 ) (5,477 ) Property, plant and equipment, net 3,086 11,301 The Group had recorded depreciation expense of RMB1,222, RMB1,680 and RMB2,244 for the years ended December 31, 2016, 2017 and 2018, respectively. No impairment was recorded for the years ended December 31, 2016, 2017 and 2018. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 1 0 . ACCRUED EXPENSES AND OTHER LIABILITIES As of December 31, 2017 2018 RMB RMB Freight payable 9,799 50,680 Other tax payable 15,359 42,076 Accrued payroll and welfare 16,304 39,700 Product warranty 13,909 12,744 Marketing and promotion expenses 1,000 10,710 Professional fee payables — 10,340 Installation fee payables — 8,133 Deferred revenue 146 1,276 Deposits received related to unvested shares 496 — Other current liabilities 4,871 25,789 Total 61,884 201,448 Less: non-current portion (460 ) (518 ) Accrued expenses and other liabilities-current portion 61,424 200,930 Product warranty activities were as follows: Product Warranty RMB Balance at December 31, 2016 2,483 Provided during the year 17,806 Utilized during the year (6,380 ) Balance at December 31, 2017 13,909 Provided during the year 19,775 Utilized during the year (20,940 ) Balance at December 31, 2018 12,744 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE | 1 1 . REVENUE Year ended December 31, 2016 Revenues Cost of revenues Gross profit RMB RMB RMB Sales of product - 273,282 206,679 66,603 Smart water purification systems 250,442 191,848 58,594 Other smart products 22,840 14,831 8,009 - Consumable products 19,376 10,644 8,732 - Other products 19,859 15,166 4,693 Total of sales of product 312,517 232,489 80,028 Rendering of services - Installation services 57 55 2 Total 312,574 232,544 80,030 Year ended December 31, 2017 Revenues Cost of revenues Gross profit RMB RMB RMB Sales of product - IoT-enabled smart home products 712,317 499,739 212,578 Smart water purification systems 570,784 399,788 170,996 Smart kitchen products 50,656 34,987 15,669 Other smart products 90,877 64,964 25,913 - Consumable products 87,500 48,123 39,377 - Other products 72,686 49,489 23,197 Total of sales of product 872,503 597,351 275,152 Rendering of services - Installation services 716 685 31 Total 873,219 598,036 275,183 Year ended December 31, 2018 Revenues Cost of revenues Gross profit RMB RMB RMB Sales of product - IoT-enabled smart home products 2,081,273 1,514,344 566,929 Smart water purification systems 930,178 614,829 315,349 Smart kitchen products 744,990 596,005 148,985 Other smart products 406,105 303,510 102,595 - Consumable products 141,940 67,433 74,507 - Other products 323,381 247,717 75,664 Total of sales of product 2,546,594 1,829,494 717,100 Rendering of services - Installation services 14,635 13,938 697 Total 2,561,229 1,843,432 717,797 |
Income Tax (Benefits) Expenses
Income Tax (Benefits) Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX (BENEFITS) EXPENSES | 12 . INCOME TAX (BENEFITS) EXPENSES Cayman Islands Under the current tax laws of 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 subsidiary of the Group in Hong Kong are subject to 16.5% Hong Kong profit tax on its taxable income 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. Certified High and New Technology Enterprises (“HNTE”) 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 (“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, 2017 and 2018 are approximately RMB95,658 and RMB282,130, respectively. Composition of income tax expense The current and deferred components of income taxes appearing in the consolidated statements of comprehensive (loss) income are as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB Current tax expenses — 15,519 26,247 Deferred tax benefit (2,247 ) (801 ) (2,186 ) Income tax (benefits) expenses (2,247 ) 14,718 24,061 12. INC OME TAX (BENEFITS) EXPENSES (Continued) 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, 2016 2017 2018 RMB RMB RMB Income from operations in the PRC 13,546 106,868 93,910 Income (loss) from overseas entities 466 1,090 (4,499 ) Income before income tax 14,012 107,958 89,411 Tax expense at PRC enterprise income tax rate of 25% 3,503 26,990 22,353 Income tax on tax holiday (1) (1,414 ) (10,989 ) (9,632 ) Tax effect of permanence differences (2) (1,187 ) (2,640 ) (7,871 ) Effect of income tax rate change (3) 3,179 — — Change in valuation allowance (4) (7,756 ) 760 602 Effect of share-based compensation 1,587 873 17,492 Effect of income tax in jurisdictions other than the PRC (159 ) (276 ) 1,117 Income tax (benefits) expenses (2,247 ) 14,718 24,061 (1) The income tax reversals resulting from the preferential income tax rates that Foshan Viomi was entitled to as an HNTE is included in the “Income tax on tax holidays” in the table above. The favorable 15% tax rate will be eligible for three years starting from 2016. (2) The permanent book-tax differences mainly consisted of R&D super deductions. (3) Effect of income tax rate change represents the effect due to the change in the applicable tax rate in calculating deferred income tax as a result of Foshan Viomi’s qualification of HNTE in 2016. (4) As of December 31, 2015, the Group provided full valuation allowance for the deferred tax assets as it has incurred net accumulated operating losses for income tax purposes since its inception. The Group believed that it is more likely than not that these net accumulated operating losses and other deferred tax assets will not be utilized in the near future. The per share effect of the tax holidays are as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB Net income per share effect – basic 0.12 0.53 0.22 Net income per share effect – diluted 0.12 0.41 0.20 12. INC OME TAX (BENEFITS) EXPENSES (Continued) Deferred tax assets and deferred tax liabilities The significant components of the Group’s deferred tax assets were as follows: As of December 31, 2017 2018 RMB RMB Inventory write downs 541 421 Accrued expenses and others 2,485 4,616 Deferred income 22 191 Net operating loss carry forwards 952 1,560 Total deferred tax assets 4,000 6,788 Less: valuation allowance (952 ) (1,554 ) Deferred tax assets, net 3,048 5,234 Movement of valuation allowance Year ended December 31, 2016 2017 2018 RMB RMB RMB Balance at beginning of the year 7,948 192 952 Provided 190 760 602 Reversals (7,946 ) — — Balance at end of the year 192 952 1,554 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, 2017 and 2018, 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, 2018 | |
Equity [Abstract] | |
ORDINARY SHARES | 13 . 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. 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. 13. ORDINARY SHARES (Continued) On the same day, the Company effected a share split whereby each of the Company’s then authorised 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 in proportion to the share split. Upon the completion of the Company’s IPO on September 25, 2018 (Note 1(a)), the Company authorized (i) 4,800,000,000 Post-IPO Class A Ordinary Shares of a par value of US$0.00001 each, (ii) 150,000,000 Post-IPO 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 Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary Shares have the same rights, except for voting rights and conversion rights. Each Post-IPO Class A Ordinary Share is entitled to one vote, and each Post-IPO Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. Each Post-IPO Class B Ordinary Share is convertible into one Post-IPO Class A Ordinary Share at any time by the holder thereof. Post-IPO Class A Ordinary Shares are not convertible into Post-IPO Class B Ordinary Shares under any circumstances. Upon any transfer of Post-IPO Class B Ordinary Shares by a holder to any person or entity other than holders of Post-IPO Class B Ordinary Shares or their affiliates, such Post-IPO Class B Ordinary Shares shall be automatically and immediately converted into the equivalent number of Post-IPO Class A Ordinary Shares. 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 Class B Ordinary Shares held by Red Better, and 67,636,364 issued 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 Post-IPO 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 class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Post-IPO Class A Ordinary Shares on a one-for-one basis. As of December 31, 2018, the Company had 90,200,000 Post-IPO Class A Ordinary Shares and 117,600,000 Post-IPO Class B Ordinary Shares outstanding, respectively. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred and Class B Ordinary Shares | 12 Months Ended |
Dec. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE CONVERTIBLE PREFERRED AND CLASS B ORDINARY SHARES | 14 . REDEEMABLE CONVERTIBLE PREFERRED AND CLASS B ORDINARY SHARES As described in note1 (a), pursuant to a shares purchase agreement, the Company issued certain Class B Ordinary Shares to Mr. Chen, Red Better and Shunwei during the Reorganization, and the Company also issued totaling 18,181,818 shares (with par value of US$0.0001) of Series A Preferred Shares for US$1.1000 per share with total consideration of US$20,000, including conversion of the outstanding bridge loans of US$5,250. The significant terms of the Series A Preferred Shares and Class B Ordinary Shares issued by the Company are as follows: Conversion rights Optional Conversion Each holder of Series A Preferred Shares and Class B Ordinary Shares shall have the right, at such holder’s sole discretion, to convert all or any portion of the Series A Preferred Shares and Class B Ordinary Shares into Class A Ordinary Shares at any time. The conversion rate for Series A Preferred Shares and Class B Ordinary Shares shall be determined by dividing applicable Share Issue Price by the conversion price then in effect at the date of the conversion. The initial conversion price will be the applicable Share Issue Price (i.e., a 1-to-1 initial conversion ratio), and thereafter shall be subject to adjustment and readjustment from time to time as hereinafter provided, being no less than par value. Adjustments of conversion ratios include the following: (1) Adjustment of applicable conversion price upon issuance of additional ordinary shares below the applicable conversion price. (2) Adjustments for share dividends, subdivisions, combinations or consolidations of class A ordinary shares. (3) Adjustments for other distributions. (4) Adjustments for reclassification, exchange and substitution. 14. REDEEMABLE CONVERTIBLE PREFERRED AND CLASS B ORDINARY SHARES (Continued) Automatic Conversion Each Series A Preferred Share and Class B Ordinary Share shall automatically be converted into class A ordinary shares, at the then applicable preferred share conversion price upon the closing of a Qualified IPO; Voting rights Each Series A Preferred Share and Class B Ordinary Share shall carry a number of votes equal to the number of class A ordinary shares then issuable upon its conversion into class A ordinary shares at the record date for determination of the shareholders entitled to vote on such matters, or, if no such record date is established, at the date such vote is taken or any written consent of shareholders is solicited. To the extent that applicable law, Memorandum and Articles of the Company require the Series A Preferred Shares and Class B Ordinary Shares to vote separately as a class with respect to any matters, the Series A Preferred Shares and Class B Ordinary Shares shall vote separately as a class with respect to such matters. Otherwise, the holders of Series A Preferred Shares and Class B Ordinary Shares and class A ordinary shares shall vote together as a single class. Redemption rights Redemption Condition for Series A Preferred Shares and Class B Ordinary Shares: The Series A Preferred Shares and Class B Ordinary Shares are redeemable at any time after the earlier of: i) the fifth anniversary of the date on which the closing of the shares issuance pursuant to the share purchase agreement (the “Closing Date”), if the Company has not consummated a Qualified IPO; ii) any material breach by the Founder or the Group, of any representatives, warranties or covenants of the transaction documents and not cured within six (6) months (the “Redemption Start Date”), then subject to the applicable laws of the Cayman Islands and, if so requested by any investor, the Company and the Founder shall redeem all or part of the outstanding Series A Preferred Shares and/or Class B Ordinary Shares held by such Investor (collectively, the “Redeemable Shares”) in cash out of funds legally available therefor. The redemption price of each Series A Preferred Share and Class B Ordinary Share shall be the sum of the Series A Preferred Shares and Class B Ordinary Shares issuance price, respectively: Plus 6% compound interest return per annum on the issuance price; plus all declared but unpaid dividends per Series A Preferred Shares and Class B Ordinary Shares. If the Company does not have sufficient cash or funds legally available to redeem any of the redeemable shares required to be redeemed, the Company and the Founder shall use their best effort to cause the remaining redeemable shares to be purchased, including without limitation, to seek, facilitate and procure third parties to acquire the remaining redeemable shares on terms and conditions acceptable to the relevant redemption holders. Dividends rights Holders of outstanding Series A Preferred Shares shall be entitled to receive dividends, out of any assets legally available therefor, prior and in preference to any declaration or payment of any dividend (whether in cash, in property or in shares of the capital of the Company) on the ordinary shares or any other class or series of shares of the Company, at the rate of eight percent (8%) of the preferred share issue price per share (as adjusted for any subdivisions, consolidations, bonus issues, reclassifications and the like) per annum on each Series A Preferred Shares, payable in U.S. dollars and annually when, as and if declared by the Board. Such distributions shall be cumulative. Holders of the Series A Preferred Shares shall also be entitled to receive any non-cash dividends declared by the Board on an as-converted basis. After payment of the dividends distributed to the holders of Series A Preferred Shares, any additional dividends or distributions shall be distributed to the holders of Class B Ordinary Shares, prior and in preference to any declaration or payment of any dividend (whether in cash, in property or in shares of the capital of the Company) on the class A ordinary shares or any other class or series of shares of the Company, at the rate of eight percent (8%) of the deemed Class B Ordinary Share issue price per share (as adjusted for any subdivisions, consolidations, bonus issues, reclassifications and the like) per annum on each Class B Ordinary Share, payable in U.S. dollars and annually when, as and if declared by the Board. Such distributions shall be cumulative. Holders of the Class B Ordinary Shares shall also be entitled to receive any non-cash dividends declared by the Board on an as-converted basis. 14. REDEEMABLE CONVERTIBLE PREFERRED AND CLASS B ORDINARY SHARES (Continued) Liquidation rights Liquidation Preferences In the event of any liquidation, dissolution or i) the holders of the Series A Preferred Shares shall be entitled to receive, prior to any distribution to the holders of the ordinary shares or any other class or series of shares then outstanding, an amount per Series A Preferred Share equal to (a) one hundred and fifty percent (150%) of the preferred share issue price, plus (b) all declared but unpaid dividends thereon (collectively, the “Preferred Share Preference Amount”). If the Company has insufficient assets to permit payment of the Preferred Share Preference Amount in full to all holders of Series A Preferred Shares, then the assets of the Company shall be distributed ratably to the holders of the Series A Preferred Shares in proportion to the full Preferred Share Preference Amount. i i ) after the full Preferred Share Preference Amount on all outstanding Series A Preferred Shares has been paid, any remaining funds or assets of the Company legally available for distribution to shareholders shall be distributed to the holders of Class B Ordinary Shares, prior to the holders of the class A ordinary shares or any other class or series of shares then outstanding, an amount per Class B Ordinary Share equal to (a) one hundred and fifty percent (150%) of the deemed Class B Share issue price, plus (b) all declared but unpaid dividends thereon (collectively, the “Class B Share Preference Amount”, collectively with the Preferred Share Preference Amount, the “Preference Amount”). After the full Preferred Share Preference Amount has been paid, if the remaining assets are insufficient to permit payment of the Class B Share Preference Amount in full to all holders of Class B Ordinary Shares, then the remaining assets of the Company shall be distributed ratably to the holders of the Class B Ordinary Shares in proportion to the full Class B Share Preference Amount. iii) after the full Preference Amount on all outstanding Series A Preferred Shares and Class B Ordinary Shares has been paid, any remaining funds or assets of the Company legally available for distribution to shareholders shall be distributed on a pro rata, pari passu basis among the holders of the Preferred Shares (on an as-converted basis), together with the holders of the Ordinary Shares. Liquidation Event The following events shall be deemed as a liquidation, dissolution or winding up of the Company (each, a “Liquidation Event”): (i) any acquisition of the Company (whether by a sale of equity, merger or consolidation) in which in excess of 50% of the Company’s voting power outstanding before such transaction is transferred; (ii) a sale of all or substantially all of the Company’s assets and no substantial business operations will be continued by the Company. Accounting of Series A Preferred Shares and Class B Ordinary Shares The Company classified the Series A Preferred Shares and Class B Ordinary Shares as mezzanine equity in the consolidated balance sheets because they were redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. The Series A Preferred Shares and Class B Ordinary Shares are recorded initially at fair value, net of issuance costs. Prior to the Reorganization, the 40% initial equity interests of Foshan Viomi held by the Founder for himself has liquidation preference, and the 40% initial equity interests of Foshan Viomi held by Tianjin Jinxing has liquidation preference and also becomes redeemable in the event of a breach of contract by Foshan Viomi. Upon completion of the Reorganization, both the Founder and Tianjin Jinxing’s equity interests in Foshan Viomi are exchanged into 67,636,364 Class B Ordinary Shares of the Company, respectively. After the Reorganization, the most significant change in the provision is the addition of redemption clause which allows the holders of the Class B Ordinary Shares to redeem the Class B Ordinary Shares if there are no Qualified IPO after the fifth anniversary of the Closing Date. 14. REDEEMABLE CONVERTIBLE PREFERRED AND CLASS B ORDINARY SHARES (Continued) This transaction was considered as an extinguishment of the previous equity interests and therefore, the Class B Ordinary Shares are measured at its fair value on the extinguishment date. The Group recognizes changes in the redemption value ratable over the redemption period. Increases in the carrying amount of the redeemable preferred shares are recorded by charges against retained earnings, or in the absence of retained earnings, by charges as reduction of additional paid-in capital until additional paid-in capital is reduced to zero. Once additional paid-in capital is reduced to zero, the redemption value measurement adjustment is recognized as an increase in accumulated deficit. The change in the balance of Series A Preferred Shares and Class B Ordinary Shares included in mezzanine equity for the years ended December 31, 2016, 2017 and 2018 are as follows: Series A Preferred Shares Class B Ordinary Shares held by the Founder (1)(2) Class B Ordinary Shares- owned by Xiaomi (1) Total RMB RMB RMB RMB Balance as of January 1, 2016 133,573 51,057 204,230 388,860 Accretion of preferred shares 8,221 — — 8,221 Foreign exchange 9,485 3,488 13,945 26,918 Balance as of December 31, 2016 151,279 54,545 218,175 423,999 Accretion of preferred shares 8,834 — — 8,834 Foreign exchange (9,068 ) (3,169 ) (12,668 ) (24,905 ) Balance as of December 31, 2017 151,045 51,376 205,507 407,928 Accretion of preferred shares 6,563 — — 6,563 Foreign exchange 7,487 2,437 9,743 19,667 Conversion of Series A Preferred Shares and Class B Ordinary Shares to ordinary shares upon the completion of the IPO on September 25, 2018 (165,095 ) (53,813 ) (215,250 ) (434,158 ) Balance as of December 31, 2018 — — — — (1) The carrying amount of Class B Ordinary Shares is higher than the redemption value, which is based on the original investment amount in 2014. Therefore no accretion was recorded for the years ended December 31, 2016, 2017 and 2018. (2) Out of the 67,636,364 Class B Ordinary Shares held by the Founder, 50,727,273 Class B ordinary shares held by the Founder pursuant to the restricted share arrangement is included in liability award. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 15 . SHARE-BASED COMPENSATION Compensation expense recognized for share-based awards was as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB Share-based compensation expenses —Restricted shares owned by the Founder – equity component (a) 6,051 2,670 826 —Restricted shares owned by the Founder – liability component (a) 266 286 212 —Restricted shares owned by the Founder on behalf of certain key management founders (a) 93 48 14 —Share options (b) 4,168 2,817 25,391 —Shares awarded to Mr. Chen (c) — — 90,168 Total share-based compensation expenses 10,578 5,821 116,611 15. SHARE-BASED COMPENSATION (Continued) (a) Restricted Shares As described in note 1 (a), the Founder and Xiaomi, made a capital contribution of RMB7,500 and RMB5,000, respectively, in exchange for 60% and 40% equity interests in Foshan Viomi, respectively. Out of the RMB7,500 invested by the Founder, RMB2,500 was invested by certain key management founders and held by the Founder on their behalf. For the equity interests held by the Founder for himself, these were ordinary shares in nature but with substantive liquidation preference, while for the equity interests held by the Founder on behalf of certain key management founders, these were the most subordinated class of equity of Foshan Viomi and did not carry any preference rights. According to the agreement among the shareholders entered into in June 2014, the interest held by the Founders shall be subject to a repurchase feature under which Xiaomi shall purchase the interest held by the Founders at the original investment amount if the Founders voluntarily terminates their employment with Foshan Viomi. The repurchase feature shall lapse at a rate of 25% each year, consequently, the interests held by the Founders are accounted for as equity-classified share-based compensation with a vesting period of 4 years. As discussed in note 2(v), after the Reorganization, the unvested awards held by the Founder on his own behalf consisted of a share-based compensation liability measured based on the redemption value and a share option component representing the value of upside potential of the Class B Ordinary Shares which is accounted for as an equity grant, while the unvested awards held by the Founder on behalf of certain key management founders continue to be equity-classified. As the share-based compensation expenses related to the equity component of the restricted shares owned by the Founder and the restricted shares held by the Founder on behalf of certain key management founders are recognized using graded vesting method, the expenses recognized in 2016 is higher than that of 2017 and 2018. A summary of the Restricted Shares activity Number of shares Restricted Shares held by the Founder on behalf of certain key management founders Restricted Shares held by the Founder on his own behalf Total Outstanding at January 1, 2016 25,363,638 50,727,273 76,090,911 Vested (8,454,546 ) (16,909,091 ) (25,363,637 ) Outstanding at December 31, 2016 16,909,092 33,818,182 50,727,274 Vested (8,454,546 ) (16,909,091 ) (25,363,637 ) Outstanding at December 31, 2017 8,454,546 16,909,091 25,363,637 Surrender and cancellation (1) (5,918,182 ) — (5,918,182 ) Vested (2,536,364 ) (16,909,091 ) (19,445,455 ) Outstanding at December 31, 2018 — — — (1) 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. Out of the 17,672,728 Class A ordinary shares surrendered, 5,918,182 shares were unvested restricted shares. The cancellation of these 5,918,182 shares is accounted for as an acceleration of vesting of such shares and the unrecognised share-based compensation expenses related to these 5,918,182 shares have been recognised in the consolidated financial statements for the year ended December 31, 2018. The share-based compensation expenses recognised due to the acceleration of vesting is not material. 15. SHARE-BASED COMPENSATION (Continued) The table below shows the details of the movement of liability-classified awards with respect to unsettled 50,727,273 restricted shares granted to the Founder for the years ended December 31, 2016, 2017 and 2018: Liability-classified Awards (RMB) Restricted Shares held by the Founder on his own behalf Balance as at January 1, 2016 4,181 Share-based compensation expenses 266 Foreign currency translation adjustment 103 Balance as at December 31, 2016 4,550 Share-based compensation expenses 286 Foreign currency translation adjustment (98 ) Outstanding at December 31, 2017 4,738 Share-based compensation expenses 212 Foreign currency translation adjustment 408 Conversion of Restricted Shares to ordinary shares upon the completion of the IPO on September 25, 2018 (5,358 ) Outstanding at December 31, 2018 — (b) 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, pursuant to which the maximum aggregate number of shares which may be issued was initially 17,672,728 shares. For the years ended December 31, 2016 and 2017, the Company granted 1,860,000 and 2,700,000 share options to employees pursuant to the 2015 Share Incentive Plan. With respect to the share options granted, 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months. For the year ended December 31, 2018, the Company granted 5,460,000 and 670,000 share options to employees pursuant to the 2015 Share Incentive Plan and 2018 Share Incentive Plan, respectively. Among which, with respect to the 5,500,000 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. With respect to 630,000 share options granted, 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months. The Group calculated the estimated fair value of the options on the respective grant dates using the binomial option pricing model with assistance from independent valuation firms. Assumptions used to determine the fair value of share options granted during 2016, 2017 and 2018 are summarized in the following table: Year ended December 31, 2016 2017 2018 Risk-free interest rate 2.86 % 3.06%-3.89% 3.62%~3.92% Expected volatility 50.14%-50.15% 47.02%-49.44% 45.51%~46.99% Expected life of option (years) 10 10 10 Expected dividend yield — — — Fair value per ordinary share US$0.51 US$0.76-US$ 1.59 US$1.61-US$3.30 15. SHARE-BASED COMPENSATION (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 (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. (5) Fair value per ordinary share In determining the grant date fair value of the Company’s ordinary shares for purposes of recording share-based compensation expenses in connection with Restricted Shares owned by the Founder, Restricted Shares owned by the Founder on behalf of certain key management founders, and share options under the 2015 Share Incentive Plan and 2018 Share Incentive Plan, the Company, with the assistance of an independent valuation firm, evaluated the use of three generally accepted valuation approaches: market, cost and income approaches to estimate the enterprise value of the Company and income approach (discounted cash flow, or DCF method) was relied on for value determination with market approach (guideline companies method, or GCM) taken as reference. DCF method of the income approach involves applying appropriate weighted average cost of capital (“WACC”), to discount the future cash flows forecast, based on the Company’s best estimates as of the valuation date, to present value. The WACC was determined based on a consideration of the factors including risk-free rate, comparative industry risk, equity risk premium, company size and non-systematic risk factors. GCM under the market approach was adopted as reference of the equity valuation for the company. GCM employs trading multiples method of selected public comparable companies including trailing and leading enterprise value/revenue multiples. In deriving the equity value of each class of shares, the Company applied the option pricing method. The option pricing method treats different classes of shares as call options on the total equity value, with exercise prices based on the liquidation preference or redemption amount of the certain classes of shares. Under this method, the ordinary share has value only if the fund available for distribution to shareholders exceeds the value of liquidation preference or redemption amounts at the time of a liquidity event, assuming the enterprise has funds available to make liquidation preference or redemption. Given the nature of the different classes of shares, the modeling of different classes of capital as call options on company’s enterprise value was analyzed and the values of different classes of shares were derived accordingly. 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. 15. SHARE-BASED COMPENSATION (Continued) A summary of the stock option activity under the 2015 and 2018 Share Incentive Plan for the years ended December 31, 2016, 2017 and 2018 is included in the table below. Options granted Weighted average Share Number exercise price (US$) Outstanding at January 1, 2016 4,740,000 0.06 Granted 1,860,000 0.24 Forfeited (980,000 ) 0.04 Outstanding at December 31, 2016 5,620,000 0.12 Granted 2,700,000 0.52 Forfeited (780,000 ) 0.27 Outstanding at December 31, 2017 7,540,000 0.25 Granted 6,130,000 0.64 Forfeited (410,000 ) 0.43 Outstanding at December 31, 2018 13,260,000 0.43 The following table summarizes information regarding the share options granted as of December 31, 2016, 2017 and 2018: As of December 31, 2016 Weighted- average exercise Weighted- average remaining exercise contractual Aggregate Options Number price per option life (years) intrinsic value US$ US$ Options Outstanding 5,620,000 0.12 9.22 1,854 Exercisable 915,000 0.02 8.83 366 Expected to vest 4,187,450 0.14 9.29 1,324 As of December 31, 2017 Weighted- average exercise Weighted- average remaining exercise contractual Aggregate Options Number price per option life (years) intrinsic value US$ US$ Options Outstanding 7,540,000 0.25 8.65 3,697 Exercisable 2,612,500 0.06 7.99 987 Expected to vest 4,385,475 0.35 9.00 2,695 As of December 31, 2018 Weighted- average exercise Weighted- average remaining exercise contractual Aggregate Options Number price per option life (years) intrinsic value US$ US$ Options Outstanding 13,260,000 0.43 8.40 18,705 Exercisable 3,945,000 0.08 7.03 1,752 Expected to vest 8,290,350 0.57 8.97 15,373 The weighted average grant date fair value of options granted for the years ended December 31, 2016, 2017 and 2018 was RMB2.50 (US$0.38), RMB6.01 (US$0.90) and RMB18.23 (US$2.66) per option, respectively. No options were exercised for the years ended December 31, 2016, 2017 and 2018. As of December 31, 2018, there was RMB53,879 of unrecognized compensation expenses related to the options. 15. SHARE-BASED COMPENSATION (Continued) (c) Shares awarded to Mr. Chen 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 approximately US$3.30 per share. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME PER SHARE | 16 . NET (LOSS) INCOME PER SHARE Basic net (loss) income per share is the amount of net (loss) income available to each share of ordinary shares outstanding during the reporting period. Diluted net (loss) income per share is the amount of net (loss) income available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. For the years ended December 31, 2016, 2017 and 2018, the Group has determined that its convertible redeemable Class B Ordinary Shares, convertible redeemable Series A Preferred Shares and unvested Class A ordinary shares are participating securities as they participate in undistributed earnings on an as-if-converted basis. The holders of the Class B Ordinary Shares, Series A Preferred Shares and unvested Class A ordinary shares are entitled to receive dividends on a pro rata basis, as if their shares had been converted into ordinary shares. Accordingly, the Group uses the two-class method of computing net (loss) income per share, for ordinary shares and preferred shares according to the participation rights in undistributed earnings. Year ended December 31, 2016 2017 2018 RMB RMB RMB Numerator: Numerator for basic calculation - Net (loss) income attributable to ordinary shareholders of the Company (3,453 ) 8,033 50,544 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 12,230,136 20,684,681 71,771,033 Dilutive effect of share options — 4,895,125 7,819,747 Denominator for diluted calculation 12,230,136 25,579,806 79,590,780 Basic net (loss) income per ordinary share (0.28 ) 0.39 0.70 Diluted net (loss) income per ordinary share (0.28 ) 0.31 0.64 For the years ended December 31, 2016, 2017 and 2018, the following shares outstanding were excluded from the calculation of diluted net (loss) income per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. Year ended December 31, 2016 2017 2018 Shares issuable upon exercise of share options 3,370,739 — — Shares issuable upon conversion of Restricted Shared owned the Founder 67,636,364 67,636,364 — Shares issuable upon conversion of Class B Ordinary Shares owned by Red Better and Shunwei 67,636,364 67,636,364 — Shares issuable upon conversion of Series A Preferred shares 18,181,818 18,181,818 — Shares issuable upon exercise of unvested Restricted Shares owned by the Founder on behalf of certain key management founders 21,520,813 13,079,391 — |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17 . RELATED PARTY TRANSACTIONS Name Relationship with the Group Mr. Chen Founder Xiaomi Inc. Controlled by Xiaomi Xiaomi H.K. Controlled by Xiaomi Xiaomi Telecommunication Technology Controlled by Xiaomi Tianjin Jinxing Controlled by Xiaomi Beijing Xiaomi Software Co., Ltd (“Xiaomi Software”) Controlled by Xiaomi Guangzhou Xiaomi Information Service Co., Ltd (“Guangzhou Xiaomi”) Controlled by Xiaomi The Group’s relationship with Xiaomi Xiaomi is The Group’s strategic partner and shareholder. The Group’s sales to Xiaomi is 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 Youpin.mi.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 2017 with Xiaomi governs all the Group’s sales to Xiaomi. It will expire in August 2019, and will automatically extend for successive one-year period unless objected by a party at least 30 days prior to the expiration of the then current term. Under the business cooperation agreement, (i) 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 certain of the Group’s own branded products. The commission sales agreement will expire on December 31, 2018 and has been renewed up to December 31, 2019. 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 approximately 8% 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. 17. RELATED PARTY TRANSACTIONS (Continued) (1) Amount due from/to related parties As of December 31, 2017 2018 RMB RMB Accounts receivable from a relate party: Xiaomi Telecommunication Technology (a) 249,548 260,984 Other receivables from related parties: Xiaomi Inc. (c) 24,160 112,320 Xiaomi H.K. (b) 33,448 — Total 57,608 112,320 Amounts due to related parties: Xiaomi Telecommunication Technology (a) 1,225 3,876 Guangzhou Xiaomi — 1,887 Xiaomi Software (d) 32,228 — Tianjin Jinxing (e) 2,500 — Total 35,953 5,763 (2) Purchase from a related party Year ended December 31, 2016 2017 2018 RMB RMB Xiaomi Telecommunication Technology (a) 1,327 1,685 18,235 (3) Revenue from a related party Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi Telecommunication Technology (a) 299,827 739,464 1,311,852 (4) Selling and marketing expenses Year ended December 31, 2016 2017 2018 RMB RMB Xiaomi Inc. (c) 166 3,327 20,824 Guangzhou Xiaomi — — 3,774 Total 166 3,327 24,598 (5) Interest expenses Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi Software (d) 1,761 1,761 440 17. RELATED PARTY TRANSACTIONS (Continued) (6) Interest income Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi H.K. (b) 272 490 107 (a) The balance due from Xiaomi Telecommunication Technology represents receivable arising from sales of water purifier and accessories. The balance due to Xiaomi Telecommunication Technology represents payable arising from purchase of Xiaomi branded products and certain raw materials. (b) The balance due from Xiaomi H.K. represents loan and interest receivables from the related party. The loan is US$5,000 with an interest rate of 3 month Libor add 10bps. The loan term is 3 months and will be automatically extended by another 3 months if the two parties do not raise any objections on the maturity date. The loan has been settled in 2018. (c) Foshan Viomi sells its own brand products on the E-platform of Xiaomi Inc., which charges Foshan Viomi commission fee. The amount due from Xiaomi Inc. represents sales receivable net of commission fee. (d) The balance due to Xiaomi Software represents borrowing from the related party. The loan is RMB31,900 with an interest rate of 5.52% per annum. The loan term is 3 months and will be automatically extended by another 3 months if the two parties do not raise any objections on the maturity date. The loan has been settled in 2018. (e) The balance due to Tianjin Jinxing represents US$409 (equivalent to RMB2,671) that the Company received from Red Better with the understanding that RMB2,500 will be repaid to Tianjin Jinxing in the PRC. The balance was settled to Tianjin Jinxing in 2018. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 18 . 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. 18 . 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, 2017 and 2018 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, 2018: Level 1 Level 2 Level 3 Total Assets Short-term investments (i) — 168,993 — 168,993 (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, accounts receivable, other receivables, amounts due to/from related parties, accounts payable and certain accrued expenses. The recorded values of cash and cash equivalents, restricted cash, accounts receivable, other receivables, amounts due to/from related parties, accounts payable and certain accrued expenses are recorded at cost which approximates fair value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 19 . COMMITMENTS AND CONTINGENCIES (a) Lease commitments The Group leases its offices and an offline store under non-cancelable operating lease agreements. The Group recognizes rental expense under such arrangements on a straight-line basis over the lease term. As of December 31, 2018, future minimum commitments under non-cancelable agreements were as follows: Rental RMB 2019 4,284 2020 2,947 2021 1,600 2022 and after 978 9,809 (b) Capital and other commitment The Group entered into an agreement with a third party on July 4, 2018, pursuant to which the Group and the third party agreed to set up a company primarily engaged in manufacturing of the Group’s certain existing products. Under the agreement, the Group’s committed investment amount as of December 31, 2018 was RMB6,000. The Group has paid the investment amount of RMB6,000 in March 2019. (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. 19. COMMITMENTS AND CONTINGENCIES (Continued) 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. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20 . SUBSEQUENT EVENTS On March 18, 2019, the Board of Director approved a special cash dividend of US$0.0333 per ordinary share on its outstanding shares to shareholders of record as of the close of trading on March 28, 2019. Holders of ADSs, each representing three ordinary shares of the Company, are accordingly entitled to a cash dividend of US$0.10 per ADS. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Restricted Net Assets | 21 . RESTRICTED NET ASSETS 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 as calculated under U.S. GAAP amounted to RMB18,750 and RMB13,750 as of December 31, 2017 and 2018. There are no differences between U.S. GAAP and PRC accounting standards in connection with the reported net assets of the legally owned subsidiaries in the PRC and the VIE. 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, 2018, 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, 2018 and the condensed financial information of the Company are not required to be presented. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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 beneficiary. 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, fair value of preferred shares, 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 subsidiary incorporated in Hong Kong is 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, 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 (loss) income in the statement of comprehensive (loss) income. 2. SIGNIFICANT ACCOUNTING POLICIES (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 (loss) income. |
Convenience Translation | (e) Convenience Translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive (loss) income and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2018 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB6.8755 on December 31, 2018 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2018, 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. As the Company adopted Accounting Standards Update No. 2016-18 on January 1, 2018, 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 investments | (h) Short-term investments 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 (loss) income. |
Accounts receivable | (i) Accounts receivable Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. |
Inventories | 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (j) Inventories The Group procures certain key raw materials and components from suppliers and send the materials to contract manufacturers for manufacture. The Group receives the finished goods from the contract manufacturers. Therefore, inventories of the Group consist of raw materials and finished goods. Inventories are stated at the lower of cost or net realizable value. Inventory costs include expenses that are directly or indirectly incurred in the purchase, and production of manufactured product for sale. 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 estimated excess and obsolete inventory based upon the product life-cycle. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive (loss) income. |
Property, plant and equipment, net | ( k ) 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 Computers and equipment 2-3 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 (loss) income. |
Intangible assets | ( l ) Intangible assets Intangible assets mainly consist of software. 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 5 years |
Leases | ( m ) Leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rental expense is recognized from the date of initial possession of the leased property on a straight-line basis over the term of the lease. Rental expenses incurred by the Group were RMB0.4 million, RMB1.1 million and RMB 3.9 million for the years ended December 31, 2016, 2017 and 2018, respectively. The Group has no capital leases for any of the years presented. |
Mezzanine equity | ( n ) Mezzanine equity Mezzanine equity represents the Series A Preferred Shares and Class B Ordinary Shares issued by the Company. The Series A Preferred Shares and Class B Ordinary Shares are redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. Therefore, the Group classifies the Series A Preferred Shares and Class B Ordinary Shares as mezzanine equity (Note 14). In accordance with ASC 480-10, the mezzanine equity was initially measured based on its fair value at date of issue. Since the Series A Preferred Shares and Class B Ordinary Shares will be redeemable at the holder’s option 5 years from issuance if the Series A Preferred Shares and Class B Ordinary Shares are not converted, either voluntarily or automatically upon a qualified initial public offering (“Qualified IPO”), the Company accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using the interest method. Moreover, according to ASC-480-10-S99-2, where fair value at date of issue is less than the mandatory redemption amount, the carrying amount shall be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. Increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. As such, the accretion to the carrying amount of preferred share is recognized at minimum rate per annum of issuance price and plus the dividend declared. |
Revenue recognition | ( o ) Revenue recognition In May 2014, the Financial Accounting Standards Board (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 primary derived from (i) IoT-enabled smart home products including smart water purification systems, smart kitchen products, and other smart products, (ii) consumable products complementary to the Group’s IoT smart home products, such as water purifier filters, (iii) others including the sales of other related household products as well as service fees from rendering of installation services. Refer to Note 11 to the consolidated financial statements for disaggregation of the Group’s revenue by type of product and service for the years ended December 31, 2016, 2017 and 2018. 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, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 RMB RMB RMB Sales to Xiaomi 299,827 739,464 1,311,852 —Xiaomi-branded products 280,501 654,950 1,175,332 —Viomi-branded products 19,326 84,514 136,520 Sales to third-party customers 12,747 133,755 1,249,377 312,574 873,219 2,561,229 a) Sales to Xiaomi’s affiliate Xiaomi Telecommunication Technology Co., Ltd. (“Xiaomi Telecommunication Technology”) The Group generated a substantial portion of its revenues from sales of products to Xiaomi. Under the cooperation agreement entered between the Group and Xiaomi Telecommunication Technology, 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 from Xiaomi is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue from Xiaomi 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) For a few 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 50 percent 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. For the years ended December 31, 2016, 2017 and 2018, net revenues earned from second installment payment arrangement represented 15.3%, 15.0%and 9.0% of total revenue from Xiaomi, respectively. 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. - 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 inventory 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. The Group provides installation service to end customers for a few 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. The assessment of estimated breakage would be updated on a quarterly basis. Changes in estimated breakage should be accounted for by adjusting contract liabilities to reflect the remaining rights expected to be exercised. 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. SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 service is recognized when the service is rendered. 2 ) Sales returns and sales incentives - Sales to leading e-commerce platforms The Group’s sales to leading e-commerce platforms starting 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 60 days or 90 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 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 inventory turnover and aging in 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. As of December 31, 2018, the expected return was insignificant to the Group. The Group would update its estimate at each period end. 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. - Sales to Xiaomi and offline experience stores Except for quality problem of the products, the Group does not allow sales return from Xiaomi and offline experience stores. The Group may provide sales rebates to the customers based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to the customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. For the years ended December 31, 2016, 2017 and 2018, the amount of sales rebate was insignificant. - 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. As of December 31, 2016, 2017 and 2018, the amount of expected 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 4 ) Value added taxes Value added taxes (“VAT”) on sales is calculated at 17% on revenue from products before April 30, 2018 and 16% after May 1, 2018. The Group reports revenue net of VAT. Subsidiaries and VIEs that are VAT general tax payers 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. There was no activity in the allowance for doubtful accounts for the years presented as these key customers are of a good credit reputation and always make the payment timely. The opening balance of accounts receivable from these key customers as of January 1, 2017 was RMB45,021. As of December 31, 2017 and 2018, accounts receivable were RMB253,896 and RMB372,702, respectively. Contract liabilities consist of deferred revenue related to the Group’s provision of installation 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. The opening balance of deferred revenue as of January 1, 2017 was RMB29. As of December 31, 2017 and 2018, deferred revenue were RMB146 and RMB1,276, respectively. During the years ended December 31, 2016, 2017 and 2018, the Group recognized revenue of installation services amounted to RMB57, RMB716 and RMB14,635, respectively. The Group expects to recognize approximately RMB1,276 of the unearned amount for the Group’s remaining performance obligations related to installation services in 2019. During the years ended December 31, 2016, 2017 and 2018, 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 | ( p ) 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 | ( q ) 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 |
Selling and marketing expenses | ( r ) 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 RMB8,065, RMB39,638 and RMB130,796 for the years ended December 31, 2016, 2017 and 2018, respectively. The shipping expenses amounted to RMB2,633, RMB20,044 and RMB140,456 for the years ended December 31, 2016, 2017 and 2018, respectively. |
General and administrative expenses | ( s ) 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 | 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( t ) Government subsidies Government subsidies represent 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 (loss) income when it has fulfilled all of its obligation related to the subsidy. The Group recorded RMB140, RMB1,278 and RMB1,440 of subsidy income for the years ended December 31, 2016, 2017 and 2018, respectively. |
Employee benefits | ( u ) 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 RMB3,199, RMB8,016 and RMB18,889 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Share-based compensation | ( v ) Share-based compensation Share-based compensation expenses arise from share-based awards, mainly including Restricted Shares held by the Founder or held by the Founder on behalf of certain key management founders and share options for the purchase of ordinary shares. The Company accounts for share-based awards granted to the Founder and employees in accordance with ASC 718 Stock Compensation. Before the Reorganization, the Restricted Shares held by the Founders were subject to a repurchase feature under which Xiaomi shall purchase the interest held by Founders at the original investment amount if the Founders voluntarily terminate their employment with Foshan Viomi. The Restricted Shares were classified as equity classified awards as the underlying shares of the awards are ordinary shares of Foshan Viomi and the awards do not contain any of the characteristics of liability awards described in ASC718. The Restricted Shares are accounted for as share-based compensation based on the grant date fair value over the vesting period. After the Reorganization completed in July 2015, the repurchase feature remains, however, it became the Company’s right, and not the obligation to repurchase. With respect to the remaining unvested interest granted to the Founder on behalf of certain key management founders, the underlying shares changed from ordinary shares of Foshan Viomi to Class A ordinary shares of the Company. These shares remain to be equity classified awards as they do not contain any characteristics of a liability award and were continually accounted for as share-based compensation based on the grant date fair value over the remaining vesting period. With respect to the remaining unvested interest granted to the Founder, the underlying shares changed from ordinary shares of Foshan Viomi to redeemable Class B Ordinary Shares of the Company, which are redeemable convertible shares. These awards have been reclassified as liability classified awards as the underlying Class B Ordinary Shares are redeemable at a fixed price plus 6% interest per year at the option of the holder if there is no qualified IPO after a certain period of time. According to ASC718, such awards effectively consist of: (1) a liability component representing the Company’s obligation to pay the redemption price if the holder chooses to redeem, and (2) an equity component representing the fair value of the upside potential of the Class B Ordinary Shares, measured using an option pricing model. At the time of the modification, the Company compared the fair value of the original award immediately before the modification, and the total fair value of the liability component and the equity component immediately after the modification. The incremental compensation amount is recognized over the remaining vesting period. The amount related to the liability component is recorded as a liability measured at the redemption price, subsequently accreted at 6% per year to reflect the increase in redemption price over time according to the terms of the Class B Ordinary Shares, until the award is settled. The liability award is considered settled only upon redemption or IPO, when the Class B Ordinary Shares are converted to Class A ordinary shares at which time, the redemption feature would expire. Upon the completion of the IPO on September 25, 2018, all Class B Ordinary Shares were converted into Post-IPO Class B Ordinary Shares, the liability award had been settled. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 | ( w ) 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 (loss) 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 (loss) income. The Group did not recognize any interest and penalties associated with uncertain tax positions for the years ended December 31, 2016, 2017 and 2018. As of December 31, 2017 and 2018, the Group did not have any significant unrecognized uncertain tax positions. |
Comprehensive (loss) income | ( x ) Comprehensive (loss) income Comprehensive (loss) income consists of two components, net income and other comprehensive (loss) income, net of tax. Other comprehensive (loss) 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 (loss) income consists of foreign currency translation adjustments from its entities not using the RMB as their functional currency. Comprehensive (loss) income is reported in the consolidated statements of comprehensive (loss) income. |
Statutory reserves | ( y ) 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 is 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. The Group’s VIE, Foshan Viomi, made no appropriation to these statutory reserve funds for the year ended December 31, 2018 as Foshan Viomi’s profit appropriation made to the reserve fund reached the maximum required amount of 50% of its registered capital. Other PRC entities did not make any appropriation to its general reserve fund, statutory surpluses fund, discretionary surplus fund, and the staff bonus and welfare fund for the years reported, as they reported accumulated losses. |
(Loss) Income per share | ( z ) (Loss) Income per share Basic (loss) income per share is computed by dividing net (loss) income attributable to ordinary shareholders, considering the accretion of redemption feature and cumulative dividend related to the Company’s redeemable convertible preferred shares and Class B Ordinary Shares, and undistributed earnings allocated to redeemable convertible preferred shares, Class B Ordinary Shares and unvested Class A ordinary shares as unvested Class A ordinary shares are also entitled to participating dividends, 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. After the IPO, net (loss)/income per ordinary share are computed on Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary Shares together, because both classes have the same dividend rights in the Company’s undistributed net income. Diluted (loss) income per share is calculated by dividing net (loss) 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 conversion of the redeemable convertible preferred and Class B Ordinary shares, using the if-converted method, and 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 (loss) income per share calculation when inclusion of such share would be anti-dilutive. |
Related parties | ( aa ) 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 | ( bb ) 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 substantially all of the revenues from external customers attributed to the PRC. |
Newly issued accounting pronouncements | ( cc ) Newly issued accounting pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, "Leases." Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. The Group will adopt the new standard using the optional transition method (from ASU 2018-11, Leases Targeted Improvements) for fiscal years and interim periods within 2019. As permitted under the transition guidance, the Company will carry forward the assessment of whether the existing contracts contain or are leases, classification of the leases and remaining lease terms. Based on the portfolio of leases as of December 31, 2018, approximately RMB9,274 of right of use assets and RMB9,168 of lease liabilities will be recognized on our balance sheet upon adoption, primarily relating to real estate. In June 2016, the FASB issued ASU 2016-13: Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Group is in the process of evaluating the impact of adopting this guidance. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting: The amendments in this Update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company does not expect ASU 2018-07 to have a material impact to the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this standard will remove, modify and add certain disclosures under ASC Topic 820, Fair Value Measurement, with the objective of improving disclosure effectiveness. ASU 2018-13 will be effective for the Group’s fiscal year beginning January 1, 2020, with early adoption permitted. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The Company does not expect ASU 2018-13 to have a material impact to the Company’s consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Principal Subsidiaries and VIEs | As of December 31, 2018, details of the Company’s principal subsidiaries and VIEs were as follows: Place of incorporation Date of incorporation Percentage of beneficial ownership Principal activities Subsidiaries : Viomi HK Hong Kong January 30, 2015 100% Investment holding Lequan PRC May 15, 2015 100% Investment holding 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 Lizi Technology Co., Ltd. (“Guangdong Lizi”) PRC July 26, 2018 VIE’s subsidiary Home appliance development and sales |
Schedule of Financial Statement Amounts and Balances of VIEs | The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and its subsidiaries taken as a whole, which were included in the Group’s consolidated balance sheets and consolidated statements of comprehensive (loss) income. Transactions between the VIEs and its subsidiaries and the Group’s subsidiaries are eliminated in the financial information presented below: As of December 31, 2017 2018 RMB RMB Cash and cash equivalents 210,280 401,424 Restricted cash — 29,550 Short-term investments — 168,993 Accounts receivable from third parties (net of allowance of nil and nil as of December 31, 2017and 2018, respectively) 4,348 111,718 Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) 249,548 260,984 Other receivable from related parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) 24,160 112,320 Inventories 50,692 231,975 Prepaid expenses and other current assets 22,986 46,499 Total current assets 562,014 1,363,463 Property, plant and equipment, net 3,086 11,301 Deferred tax assets 3,048 5,234 Intangible assets, net — 169 Prepaid expenses and other non-current assets — 3,636 Total non-current assets 6,134 20,340 Total assets 568,148 1,383,803 Accounts and notes payable 291,643 548,481 Advances from customers 27,015 86,312 Amounts due to related parties 35,953 5,763 Accrued expenses and other liabilities 60,953 179,712 Income tax payables 11,612 10,199 Total current liabilities 427,176 830,467 Accrued expenses and other liabilities 460 518 Total non-current liabilities 460 518 Total liabilities 427,636 830,985 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) Year ended December 31, 2016 2017 2018 RMB RMB RMB Revenue 312,523 873,083 2,561,229 Net income 16,295 92,159 70,232 Net cash provided by operating activities 13,146 123,182 209,690 Net cash used in investing activities (1,609 ) (1,234 ) (183,262 ) Net cash provided by (used in) financing activities 12,999 — (37,731 ) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Property Plant and Equipment Estimated Useful Lives and Residual Rate | 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 Computers and equipment 2-3 years 0%-5% Vehicle 4 years 5% |
Schedule of Amortization of Finite-Lived Intangible Assets Estimated Useful Lives | 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 5 years |
Schedule of Disaggregation of Revenue by Type of Contract | the following table disaggregates the Group’s revenue by type of contract for the years ended December 31, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 RMB RMB RMB Sales to Xiaomi 299,827 739,464 1,311,852 —Xiaomi-branded products 280,501 654,950 1,175,332 —Viomi-branded products 19,326 84,514 136,520 Sales to third-party customers 12,747 133,755 1,249,377 312,574 873,219 2,561,229 |
Concentration and Risks (Tables
Concentration and Risks (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Credit Risk | |
Concentration Risk [Line Items] | |
Summary of Concentration of Risk | Accounts receivable from third-parties concentration of credit risk as below: As of December 31, 2017 2018 RMB RMB Company A — — 58,766 53 % Company B — — 36,734 33 % Company C 2,778 64 % * * * Less than 10% Other receivables from related parties concentration of credit risk as below: As of December 31, 2017 2018 RMB RMB Xiaomi Inc. 24,160 42 % 112,320 100 % Xiaomi H.K. Limited (“Xiaomi H.K.”) 33,448 58 % — — |
Revenue Concentration Risk | |
Concentration Risk [Line Items] | |
Summary of Concentration of Risk | Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi Telecommunication Technology 299,827 96 % 739,464 85 % 1,311,852 51 % |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents Balance | 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, 2017 and 2018 primarily consist of the following currencies: As of December 31, 2017 As of December 31, 2018 RMB RMB Amount equivalent Amount equivalent US$ 11,163 73,001 88,529 607,596 RMB 206,951 206,951 332,702 332,702 Total 279,952 940,298 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule Of Investments [Abstract] | |
Schedule of Short-Term Investments Balance | Short-term investments balance as of December 31, 2018 is primarily denominated in the following currencies: As of December 31, 2017 As of December 31, 2018 RMB RMB Amount equivalent Amount equivalent RMB — — 100,022 100,022 US$ — — 10,049 68,971 Total — 168,993 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the followings: As of December 31, 2017 2018 RMB RMB Finished goods 13,956 136,494 Raw materials 36,736 95,481 Inventories 50,692 231,975 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | As of December 31, 2017 2018 RMB RMB Advances to suppliers 14,428 23,549 Other receivables 3,054 15,361 Prepayment for equipment — 3,636 Other current assets 5,525 7,745 Rental deposits 276 235 Total 23,283 50,526 Less: non-current portion — (3,636 ) Prepaid expenses and other assets-current portion 23,283 46,890 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following: As of December 31, 2017 2018 RMB RMB Computers and equipment 5,815 16,270 Vehicle 508 508 Total 6,323 16,778 Less: accumulated depreciation (3,237 ) (5,477 ) Property, plant and equipment, net 3,086 11,301 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | As of December 31, 2017 2018 RMB RMB Freight payable 9,799 50,680 Other tax payable 15,359 42,076 Accrued payroll and welfare 16,304 39,700 Product warranty 13,909 12,744 Marketing and promotion expenses 1,000 10,710 Professional fee payables — 10,340 Installation fee payables — 8,133 Deferred revenue 146 1,276 Deposits received related to unvested shares 496 — Other current liabilities 4,871 25,789 Total 61,884 201,448 Less: non-current portion (460 ) (518 ) Accrued expenses and other liabilities-current portion 61,424 200,930 |
Schedule of Product Warranty Activities | Product warranty activities were as follows: Product Warranty RMB Balance at December 31, 2016 2,483 Provided during the year 17,806 Utilized during the year (6,380 ) Balance at December 31, 2017 13,909 Provided during the year 19,775 Utilized during the year (20,940 ) Balance at December 31, 2018 12,744 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue | Year ended December 31, 2016 Revenues Cost of revenues Gross profit RMB RMB RMB Sales of product - 273,282 206,679 66,603 Smart water purification systems 250,442 191,848 58,594 Other smart products 22,840 14,831 8,009 - Consumable products 19,376 10,644 8,732 - Other products 19,859 15,166 4,693 Total of sales of product 312,517 232,489 80,028 Rendering of services - Installation services 57 55 2 Total 312,574 232,544 80,030 Year ended December 31, 2017 Revenues Cost of revenues Gross profit RMB RMB RMB Sales of product - IoT-enabled smart home products 712,317 499,739 212,578 Smart water purification systems 570,784 399,788 170,996 Smart kitchen products 50,656 34,987 15,669 Other smart products 90,877 64,964 25,913 - Consumable products 87,500 48,123 39,377 - Other products 72,686 49,489 23,197 Total of sales of product 872,503 597,351 275,152 Rendering of services - Installation services 716 685 31 Total 873,219 598,036 275,183 Year ended December 31, 2018 Revenues Cost of revenues Gross profit RMB RMB RMB Sales of product - IoT-enabled smart home products 2,081,273 1,514,344 566,929 Smart water purification systems 930,178 614,829 315,349 Smart kitchen products 744,990 596,005 148,985 Other smart products 406,105 303,510 102,595 - Consumable products 141,940 67,433 74,507 - Other products 323,381 247,717 75,664 Total of sales of product 2,546,594 1,829,494 717,100 Rendering of services - Installation services 14,635 13,938 697 Total 2,561,229 1,843,432 717,797 |
Income Tax (Benefits) Expenses
Income Tax (Benefits) Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Current and Deferred Components of Income Taxes | The current and deferred components of income taxes appearing in the consolidated statements of comprehensive (loss) income are as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB Current tax expenses — 15,519 26,247 Deferred tax benefit (2,247 ) (801 ) (2,186 ) Income tax (benefits) expenses (2,247 ) 14,718 24,061 |
Reconciliation between Income Tax Expenses Computed by Applying PRC Enterprise Tax Rate Before Income Taxes and Actual Provision | 12. INC OME TAX (BENEFITS) EXPENSES (Continued) 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, 2016 2017 2018 RMB RMB RMB Income from operations in the PRC 13,546 106,868 93,910 Income (loss) from overseas entities 466 1,090 (4,499 ) Income before income tax 14,012 107,958 89,411 Tax expense at PRC enterprise income tax rate of 25% 3,503 26,990 22,353 Income tax on tax holiday (1) (1,414 ) (10,989 ) (9,632 ) Tax effect of permanence differences (2) (1,187 ) (2,640 ) (7,871 ) Effect of income tax rate change (3) 3,179 — — Change in valuation allowance (4) (7,756 ) 760 602 Effect of share-based compensation 1,587 873 17,492 Effect of income tax in jurisdictions other than the PRC (159 ) (276 ) 1,117 Income tax (benefits) expenses (2,247 ) 14,718 24,061 (1) The income tax reversals resulting from the preferential income tax rates that Foshan Viomi was entitled to as an HNTE is included in the “Income tax on tax holidays” in the table above. The favorable 15% tax rate will be eligible for three years starting from 2016. (2) The permanent book-tax differences mainly consisted of R&D super deductions. (3) Effect of income tax rate change represents the effect due to the change in the applicable tax rate in calculating deferred income tax as a result of Foshan Viomi’s qualification of HNTE in 2016. (4) As of December 31, 2015, the Group provided full valuation allowance for the deferred tax assets as it has incurred net accumulated operating losses for income tax purposes since its inception. The Group believed that it is more likely than not that these net accumulated operating losses and other deferred tax assets will not be utilized in the near future. |
Per Share Effect of Tax Holidays | The per share effect of the tax holidays are as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB Net income per share effect – basic 0.12 0.53 0.22 Net income per share effect – diluted 0.12 0.41 0.20 |
Significant Components of Deferred Tax Assets | The significant components of the Group’s deferred tax assets were as follows: As of December 31, 2017 2018 RMB RMB Inventory write downs 541 421 Accrued expenses and others 2,485 4,616 Deferred income 22 191 Net operating loss carry forwards 952 1,560 Total deferred tax assets 4,000 6,788 Less: valuation allowance (952 ) (1,554 ) Deferred tax assets, net 3,048 5,234 |
Movement of Valuation Allowance | Movement of valuation allowance Year ended December 31, 2016 2017 2018 RMB RMB RMB Balance at beginning of the year 7,948 192 952 Provided 190 760 602 Reversals (7,946 ) — — Balance at end of the year 192 952 1,554 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred and Class B Ordinary Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Change Balance of Series A Preferred Shares and Class B Ordinary Shares | The change in the balance of Series A Preferred Shares and Class B Ordinary Shares included in mezzanine equity for the years ended December 31, 2016, 2017 and 2018 are as follows: Series A Preferred Shares Class B Ordinary Shares held by the Founder (1)(2) Class B Ordinary Shares- owned by Xiaomi (1) Total RMB RMB RMB RMB Balance as of January 1, 2016 133,573 51,057 204,230 388,860 Accretion of preferred shares 8,221 — — 8,221 Foreign exchange 9,485 3,488 13,945 26,918 Balance as of December 31, 2016 151,279 54,545 218,175 423,999 Accretion of preferred shares 8,834 — — 8,834 Foreign exchange (9,068 ) (3,169 ) (12,668 ) (24,905 ) Balance as of December 31, 2017 151,045 51,376 205,507 407,928 Accretion of preferred shares 6,563 — — 6,563 Foreign exchange 7,487 2,437 9,743 19,667 Conversion of Series A Preferred Shares and Class B Ordinary Shares to ordinary shares upon the completion of the IPO on September 25, 2018 (165,095 ) (53,813 ) (215,250 ) (434,158 ) Balance as of December 31, 2018 — — — — (1) The carrying amount of Class B Ordinary Shares is higher than the redemption value, which is based on the original investment amount in 2014. Therefore no accretion was recorded for the years ended December 31, 2016, 2017 and 2018. (2) Out of the 67,636,364 Class B Ordinary Shares held by the Founder, 50,727,273 Class B ordinary shares held by the Founder pursuant to the restricted share arrangement is included in liability award. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Compensation Expense Recognized for Share-Based Awards | Compensation expense recognized for share-based awards was as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB Share-based compensation expenses —Restricted shares owned by the Founder – equity component (a) 6,051 2,670 826 —Restricted shares owned by the Founder – liability component (a) 266 286 212 —Restricted shares owned by the Founder on behalf of certain key management founders (a) 93 48 14 —Share options (b) 4,168 2,817 25,391 —Shares awarded to Mr. Chen (c) — — 90,168 Total share-based compensation expenses 10,578 5,821 116,611 |
Summary of Restricted Shares Activity | A summary of the Restricted Shares activity Number of shares Restricted Shares held by the Founder on behalf of certain key management founders Restricted Shares held by the Founder on his own behalf Total Outstanding at January 1, 2016 25,363,638 50,727,273 76,090,911 Vested (8,454,546 ) (16,909,091 ) (25,363,637 ) Outstanding at December 31, 2016 16,909,092 33,818,182 50,727,274 Vested (8,454,546 ) (16,909,091 ) (25,363,637 ) Outstanding at December 31, 2017 8,454,546 16,909,091 25,363,637 Surrender and cancellation (1) (5,918,182 ) — (5,918,182 ) Vested (2,536,364 ) (16,909,091 ) (19,445,455 ) Outstanding at December 31, 2018 — — — (1) 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. Out of the 17,672,728 Class A ordinary shares surrendered, 5,918,182 shares were unvested restricted shares. The cancellation of these 5,918,182 shares is accounted for as an acceleration of vesting of such shares and the unrecognised share-based compensation expenses related to these 5,918,182 shares have been recognised in the consolidated financial statements for the year ended December 31, 2018. The share-based compensation expenses recognised due to the acceleration of vesting is not material. |
Schedule of Movement of Liability Awards with Respect to Unsettled Restricted Shares Granted | 15. SHARE-BASED COMPENSATION (Continued) The table below shows the details of the movement of liability-classified awards with respect to unsettled 50,727,273 restricted shares granted to the Founder for the years ended December 31, 2016, 2017 and 2018: Liability-classified Awards (RMB) Restricted Shares held by the Founder on his own behalf Balance as at January 1, 2016 4,181 Share-based compensation expenses 266 Foreign currency translation adjustment 103 Balance as at December 31, 2016 4,550 Share-based compensation expenses 286 Foreign currency translation adjustment (98 ) Outstanding at December 31, 2017 4,738 Share-based compensation expenses 212 Foreign currency translation adjustment 408 Conversion of Restricted Shares to ordinary shares upon the completion of the IPO on September 25, 2018 (5,358 ) Outstanding at December 31, 2018 — |
Assumptions used to Determine Fair Value of Share Options Granted | Assumptions used to determine the fair value of share options granted during 2016, 2017 and 2018 are summarized in the following table: Year ended December 31, 2016 2017 2018 Risk-free interest rate 2.86 % 3.06%-3.89% 3.62%~3.92% Expected volatility 50.14%-50.15% 47.02%-49.44% 45.51%~46.99% Expected life of option (years) 10 10 10 Expected dividend yield — — — Fair value per ordinary share US$0.51 US$0.76-US$ 1.59 US$1.61-US$3.30 |
Summary of Stock Option Activity | 15. SHARE-BASED COMPENSATION (Continued) A summary of the stock option activity under the 2015 and 2018 Share Incentive Plan for the years ended December 31, 2016, 2017 and 2018 is included in the table below. Options granted Weighted average Share Number exercise price (US$) Outstanding at January 1, 2016 4,740,000 0.06 Granted 1,860,000 0.24 Forfeited (980,000 ) 0.04 Outstanding at December 31, 2016 5,620,000 0.12 Granted 2,700,000 0.52 Forfeited (780,000 ) 0.27 Outstanding at December 31, 2017 7,540,000 0.25 Granted 6,130,000 0.64 Forfeited (410,000 ) 0.43 Outstanding at December 31, 2018 13,260,000 0.43 |
Summary Regarding Share Options Granted | The following table summarizes information regarding the share options granted as of December 31, 2016, 2017 and 2018: As of December 31, 2016 Weighted- average exercise Weighted- average remaining exercise contractual Aggregate Options Number price per option life (years) intrinsic value US$ US$ Options Outstanding 5,620,000 0.12 9.22 1,854 Exercisable 915,000 0.02 8.83 366 Expected to vest 4,187,450 0.14 9.29 1,324 As of December 31, 2017 Weighted- average exercise Weighted- average remaining exercise contractual Aggregate Options Number price per option life (years) intrinsic value US$ US$ Options Outstanding 7,540,000 0.25 8.65 3,697 Exercisable 2,612,500 0.06 7.99 987 Expected to vest 4,385,475 0.35 9.00 2,695 As of December 31, 2018 Weighted- average exercise Weighted- average remaining exercise contractual Aggregate Options Number price per option life (years) intrinsic value US$ US$ Options Outstanding 13,260,000 0.43 8.40 18,705 Exercisable 3,945,000 0.08 7.03 1,752 Expected to vest 8,290,350 0.57 8.97 15,373 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Net (Loss) Income Per Share, Basic and Diluted | Accordingly, the Group uses the two-class method of computing net (loss) income per share, for ordinary shares and preferred shares according to the participation rights in undistributed earnings. Year ended December 31, 2016 2017 2018 RMB RMB RMB Numerator: Numerator for basic calculation - Net (loss) income attributable to ordinary shareholders of the Company (3,453 ) 8,033 50,544 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 12,230,136 20,684,681 71,771,033 Dilutive effect of share options — 4,895,125 7,819,747 Denominator for diluted calculation 12,230,136 25,579,806 79,590,780 Basic net (loss) income per ordinary share (0.28 ) 0.39 0.70 Diluted net (loss) income per ordinary share (0.28 ) 0.31 0.64 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | For the years ended December 31, 2016, 2017 and 2018, the following shares outstanding were excluded from the calculation of diluted net (loss) income per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. Year ended December 31, 2016 2017 2018 Shares issuable upon exercise of share options 3,370,739 — — Shares issuable upon conversion of Restricted Shared owned the Founder 67,636,364 67,636,364 — Shares issuable upon conversion of Class B Ordinary Shares owned by Red Better and Shunwei 67,636,364 67,636,364 — Shares issuable upon conversion of Series A Preferred shares 18,181,818 18,181,818 — Shares issuable upon exercise of unvested Restricted Shares owned by the Founder on behalf of certain key management founders 21,520,813 13,079,391 — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transaction Relationship | Name Relationship with the Group Mr. Chen Founder Xiaomi Inc. Controlled by Xiaomi Xiaomi H.K. Controlled by Xiaomi Xiaomi Telecommunication Technology Controlled by Xiaomi Tianjin Jinxing Controlled by Xiaomi Beijing Xiaomi Software Co., Ltd (“Xiaomi Software”) Controlled by Xiaomi Guangzhou Xiaomi Information Service Co., Ltd (“Guangzhou Xiaomi”) Controlled by Xiaomi |
Schedule of Related Party Transactions | 17. RELATED PARTY TRANSACTIONS (Continued) (1) Amount due from/to related parties As of December 31, 2017 2018 RMB RMB Accounts receivable from a relate party: Xiaomi Telecommunication Technology (a) 249,548 260,984 Other receivables from related parties: Xiaomi Inc. (c) 24,160 112,320 Xiaomi H.K. (b) 33,448 — Total 57,608 112,320 Amounts due to related parties: Xiaomi Telecommunication Technology (a) 1,225 3,876 Guangzhou Xiaomi — 1,887 Xiaomi Software (d) 32,228 — Tianjin Jinxing (e) 2,500 — Total 35,953 5,763 (2) Purchase from a related party Year ended December 31, 2016 2017 2018 RMB RMB Xiaomi Telecommunication Technology (a) 1,327 1,685 18,235 (3) Revenue from a related party Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi Telecommunication Technology (a) 299,827 739,464 1,311,852 (4) Selling and marketing expenses Year ended December 31, 2016 2017 2018 RMB RMB Xiaomi Inc. (c) 166 3,327 20,824 Guangzhou Xiaomi — — 3,774 Total 166 3,327 24,598 (5) Interest expenses Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi Software (d) 1,761 1,761 440 17. RELATED PARTY TRANSACTIONS (Continued) (6) Interest income Year ended December 31, 2016 2017 2018 RMB RMB RMB Xiaomi H.K. (b) 272 490 107 (a) The balance due from Xiaomi Telecommunication Technology represents receivable arising from sales of water purifier and accessories. The balance due to Xiaomi Telecommunication Technology represents payable arising from purchase of Xiaomi branded products and certain raw materials. (b) The balance due from Xiaomi H.K. represents loan and interest receivables from the related party. The loan is US$5,000 with an interest rate of 3 month Libor add 10bps. The loan term is 3 months and will be automatically extended by another 3 months if the two parties do not raise any objections on the maturity date. The loan has been settled in 2018. (c) Foshan Viomi sells its own brand products on the E-platform of Xiaomi Inc., which charges Foshan Viomi commission fee. The amount due from Xiaomi Inc. represents sales receivable net of commission fee. (d) The balance due to Xiaomi Software represents borrowing from the related party. The loan is RMB31,900 with an interest rate of 5.52% per annum. The loan term is 3 months and will be automatically extended by another 3 months if the two parties do not raise any objections on the maturity date. The loan has been settled in 2018. (e) The balance due to Tianjin Jinxing represents US$409 (equivalent to RMB2,671) that the Company received from Red Better with the understanding that RMB2,500 will be repaid to Tianjin Jinxing in the PRC. The balance was settled to Tianjin Jinxing in 2018. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | 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, 2018: Level 1 Level 2 Level 3 Total Assets Short-term investments (i) — 168,993 — 168,993 (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. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Commitments under Non-Cancellable Agreements | As of December 31, 2018, future minimum commitments under non-cancelable agreements were as follows: Rental RMB 2019 4,284 2020 2,947 2021 1,600 2022 and after 978 9,809 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 25, 2018$ / sharesshares | Aug. 23, 2018USD ($)$ / sharesshares | Jul. 31, 2015CNY (¥)shares | Jul. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($)$ / sharesshares | Aug. 22, 2018$ / sharesshares | Jun. 30, 2018shares | Dec. 31, 2017shares | May 31, 2014CNY (¥) |
Organization And Principal Activities [Line Items] | ||||||||||
Entity incorporated state | Cayman Islands | Cayman Islands | ||||||||
Entity incorporation date | 2015-01 | 2015-01 | ||||||||
Ordinary shares issued in exchange of interest, value | ¥ | ¥ 633,508 | |||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.0001 | ||||||||
Preferred shares, par value | $ / shares | $ 0.00001 | 0.0001 | ||||||||
Stock split ratio | 10 | |||||||||
Surrender of outstanding shares after share split | 0.90 | |||||||||
Stock, conversion basis | IPO, 16,145,454 issued class A ordinary shares held by certain key management founders, 33,818,182 issued Class B Ordinary Shares held by Red Better, and 67,636,364 issued 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 Post-IPO 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 class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Post-IPO Class A Ordinary Shares on a one-for-one basis. | IPO, 16,145,454 issued class A ordinary shares held by certain key management founders, 33,818,182 issued Class B Ordinary Shares held by Red Better, and 67,636,364 issued 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 Post-IPO 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 class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Post-IPO Class A Ordinary Shares on a one-for-one basis. | ||||||||
Foshan Viomi and Beijing Viomi | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Percentage of beneficial ownership | 100.00% | |||||||||
Class A Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 4,000,000 | 33,818,182 | 33,818,182 | |||||||
Ordinary shares, transferred | 16,145,454 | |||||||||
Ordinary shares, surrendered | 17,672,728 | |||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.0001 | ||||||||
Ordinary shares, shares authorized | 346,545,454 | |||||||||
Series A Preferred Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Stock issued | 0 | 18,181,818 | ||||||||
IPO | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Shares issued | 34,200,000 | |||||||||
IPO | American Depositary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Shares issued | 11,400,000 | |||||||||
Shares issued price per share | $ / shares | $ 9 | |||||||||
Post-IPO | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, shares authorized | 5,000,000,000 | |||||||||
Ordinary shares, Value of shares authorized | $ | $ 50,000 | |||||||||
Conversion ratio of Class B Ordinary Share into Post-IPO Class A ordinary shares | 1 | |||||||||
Stock, conversion basis | Each Post-IPO Class B Ordinary Share is convertible into one Post-IPO Class A Ordinary Share at any time by the holder thereof. | Each Post-IPO Class B Ordinary Share is convertible into one Post-IPO Class A Ordinary Share at any time by the holder thereof. | ||||||||
Post-IPO | Class A Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 90,200,000 | |||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||
Ordinary shares, shares authorized | 4,800,000,000 | 4,800,000,000 | 4,800,000,000 | |||||||
Ordinary shares, voting rights | 1 | |||||||||
Post-IPO | Class B Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 117,600,000 | |||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||
Ordinary shares, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||||||
Ordinary shares, voting rights | 10 | |||||||||
Post-IPO | Designated Common Stock | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | |||||||||
Ordinary shares, shares authorized | 50,000,000 | |||||||||
Foshan Viomi | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Change in basis of assets and liabilities | $ | $ 0 | |||||||||
Mr. Chen | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Equity investments amount | ¥ | ¥ 7,500 | |||||||||
Initial equity interest percent | 60.00% | |||||||||
Mr. Chen | Class A Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 4,000,000 | |||||||||
Tianjin Jinxing | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Equity investments amount | ¥ | ¥ 5,000 | |||||||||
Initial equity interest percent | 40.00% | |||||||||
Key Management Founders | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Equity investments amount | ¥ | ¥ 2,500 | |||||||||
Key Management Founders | Post-IPO | Class A Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 16,145,454 | |||||||||
Red Better Limited | Key Management Founders | Class A Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Shares issued | 33,818,182 | |||||||||
Ordinary shares issued in exchange of interest, value | ¥ | ¥ 2,500 | |||||||||
Red Better Limited | Mr. Chen | Class B Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Shares issued | 67,636,364 | |||||||||
Ordinary shares issued in exchange of interest, value | ¥ | ¥ 5,000 | |||||||||
Red Better Limited | IPO | Class B Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 33,818,182 | |||||||||
Red Better Limited | Post-IPO | Class B Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 33,818,182 | |||||||||
Viomi Limited | Class B Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Shares issued | 67,636,364 | |||||||||
Ordinary shares issued in exchange of interest, value | ¥ | ¥ 5,000 | |||||||||
Viomi Limited | IPO | Class B Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 67,636,364 | |||||||||
Viomi Limited | Post-IPO | Class B Ordinary Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Ordinary shares, issued | 67,636,364 | |||||||||
Investors | Series A Preferred Shares | ||||||||||
Organization And Principal Activities [Line Items] | ||||||||||
Stock issued | 18,181,818 | |||||||||
Shares issued price per share | $ / shares | $ 1.1 | |||||||||
Stock issued for consideration including conversion of outstanding bridge loans | $ | $ 20,000 | |||||||||
Outstanding bridge loans | $ | $ 5,250 |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Principal Subsidiaries and VIEs (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Cayman Islands |
Foshan Viomi | VIEs | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | May 6, 2014 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Home appliance development and sales |
Beijing Viomi | VIEs | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jan. 12, 2015 |
Percentage of beneficial ownership | 100.00% |
Principal activities | No substantial business |
Guangdong Lizi Technology Co Ltd Gangdong Lizi | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jul. 26, 2018 |
Percentage of beneficial ownership | VIE’s subsidiary |
Principal activities | Home appliance development and sales |
Subsidiaries | Viomi HK | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Hong Kong |
Date of incorporation | Jan. 30, 2015 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Investment holding |
Subsidiaries | Lequan | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | May 15, 2015 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Investment holding |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | ¥ 940,298 | $ 136,761 | ¥ 279,952 | $ 40,718 | ¥ 156,930 | ¥ 127,128 |
Restricted cash | 29,550 | 4,298 | 0 | |||
Short-term investments | 168,993 | 24,579 | 0 | |||
Accounts receivable from third parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 111,718 | 16,249 | 4,348 | |||
Other receivables from related parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 112,320 | 16,336 | 57,608 | |||
Inventories | 231,975 | 33,739 | 50,692 | |||
Prepaid expenses and other current assets | 46,890 | 6,819 | 23,283 | |||
Total current assets | 1,902,728 | 276,740 | 665,431 | |||
Property, plant and equipment, net | 11,301 | 1,644 | 3,086 | |||
Intangible assets, net | 169 | 25 | 0 | |||
Prepaid expenses and other non-current assets | 3,636 | 529 | 0 | |||
Total non-current assets | 20,340 | 2,959 | 6,134 | |||
Total assets | 1,923,068 | 279,699 | 671,565 | |||
Accounts and notes payable current | 548,481 | 79,773 | 291,643 | |||
Advances from customers | 86,312 | 12,554 | 27,015 | |||
Amounts due to related parties | 5,763 | 838 | 35,953 | |||
Income tax payables | 10,199 | 1,483 | 11,612 | |||
Total current liabilities | 851,685 | 123,873 | 432,385 | |||
Accrued expenses and other liabilities non current | 518 | 75 | 460 | |||
Total non-current liabilities | 518 | 75 | 460 | |||
Total liabilities | 852,203 | $ 123,948 | 432,845 | |||
VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 401,424 | 210,280 | ||||
Restricted cash | 29,550 | |||||
Short-term investments | 168,993 | |||||
Accounts receivable from third parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 111,718 | 4,348 | ||||
Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 260,984 | 249,548 | ||||
Other receivables from related parties (net of allowance of nil and nil as of December 31, 2017 and 2018, respectively) | 112,320 | 24,160 | ||||
Inventories | 231,975 | 50,692 | ||||
Prepaid expenses and other current assets | 46,499 | 22,986 | ||||
Total current assets | 1,363,463 | 562,014 | ||||
Property, plant and equipment, net | 11,301 | 3,086 | ||||
Deferred tax assets | 5,234 | 3,048 | ||||
Intangible assets, net | 169 | |||||
Prepaid expenses and other non-current assets | 3,636 | |||||
Total non-current assets | 20,340 | 6,134 | ||||
Total assets | 1,383,803 | 568,148 | ||||
Accounts and notes payable current | 548,481 | 291,643 | ||||
Advances from customers | 86,312 | 27,015 | ||||
Amounts due to related parties | 5,763 | 35,953 | ||||
Accrued expenses and other liabilities | 179,712 | 60,953 | ||||
Income tax payables | 10,199 | 11,612 | ||||
Total current liabilities | 830,467 | 427,176 | ||||
Accrued expenses and other liabilities non current | 518 | 460 | ||||
Total non-current liabilities | 518 | 460 | ||||
Total liabilities | ¥ 830,985 | ¥ 427,636 |
Organization and Principal Ac_6
Organization and Principal Activities - Assets and Liabilities of VIEs and its Subsidiaries and Group's taken as Whole (Parenthetical) (Details) - VIEs - CNY (¥) | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Accounts Receivable, Net, Current | ||
Accounts receivable from a related party, allowance | ||
Other receivable from related parties, allowance |
Organization and Principal Ac_7
Organization and Principal Activities - Results of Operations and Cash Flows of VIEs and its Subsidiaries taken as Whole (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenue | ¥ 2,561,229 | $ 372,515 | ¥ 873,219 | ¥ 312,574 |
Net income | 65,358 | 9,505 | 93,240 | 16,259 |
Net cash provided by operating activities | 222,269 | 32,328 | 123,906 | 15,499 |
Net cash used in investing activities | (151,821) | (22,081) | (1,234) | (1,609) |
Net cash provided by (used in) financing activities | 604,975 | $ 87,989 | 2,671 | 12,999 |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | 2,561,229 | 873,083 | 312,523 | |
Net income | 70,232 | 92,159 | 16,295 | |
Net cash provided by operating activities | 209,690 | 123,182 | 13,146 | |
Net cash used in investing activities | (183,262) | ¥ (1,234) | (1,609) | |
Net cash provided by (used in) financing activities | ¥ (37,731) | ¥ 12,999 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||||
Dec. 31, 2018CNY (¥)InstallmentSegment | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Apr. 30, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||||||
Foreign currency exchange buying rate | 6.8755 | 6.8755 | |||||
Rental expenses | ¥ 3,900,000 | ¥ 1,100,000 | ¥ 400,000 | ||||
Capital leases | $ | $ 0 | $ 0 | $ 0 | ||||
Redemption period | 5 years | ||||||
Number of installment payments from customer | Installment | 2 | ||||||
Percentage of future gross profits from commercial sales group is entitled to as potential second installment payment. | 50.00% | ||||||
Percentage of estimated profit margin based on consideration of specific and relevant market factors | 5.00% | ||||||
Value added tax rate | 16.00% | 16.00% | 17.00% | ||||
Accounts receivable from key customers | ¥ 372,702,000 | 253,896,000 | 45,021,000 | ||||
Deferred revenue | 1,276,000 | 146,000 | 29,000 | ||||
Advertising and market promotion expenses | 130,796,000 | 39,638,000 | 8,065,000 | ||||
Shipping expenses | 140,456,000 | 20,044,000 | 2,633,000 | ||||
Subsidy income | 1,440,000 | 1,278,000 | 140,000 | ||||
Uncertain tax positions, interest and penalties recognized | ¥ 0 | 0 | 0 | ||||
Number of operating segment | Segment | 1 | ||||||
Accounting Standards Update 2016-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Operating lease,right of use asset | ¥ 9,274,000 | ||||||
Operating lease, liability | 9,168,000 | ||||||
P R C Contribution Plan | |||||||
Significant Accounting Policies [Line Items] | |||||||
Employee benefit expenses | 18,889,000 | 8,016,000 | 3,199,000 | ||||
Installation Services [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Deferred revenue | 1,276,000 | ||||||
Revenue recognized amount | ¥ 14,635,000 | ¥ 716,000 | ¥ 57,000 | ||||
Xiaomi Inc | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of second installment payment arrangement to total revenue | 9.00% | 15.00% | 15.30% |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Property Plant and Equipment Estimated Useful Lives and Residual Rate (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Computers and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Estimated useful lives | 2 years |
Property, plant and equipment, Residual rate | 0.00% |
Computers and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Estimated useful lives | 3 years |
Property, plant and equipment, Residual rate | 5.00% |
Vehicles | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Estimated useful lives | 4 years |
Property, plant and equipment, Residual rate | 5.00% |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Amortization of Finite-Lived Intangible Assets Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Software | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated useful lives | 5 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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 2,561,229 | $ 372,515 | ¥ 873,219 | ¥ 312,574 |
Sales to Xiaomi | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,311,852 | 739,464 | 299,827 | |
Sales to Xiaomi | Xiaomi-branded Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,175,332 | 654,950 | 280,501 | |
Sales to Xiaomi | Viomi-branded Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 136,520 | 84,514 | 19,326 | |
Sales to Third Party Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 1,249,377 | ¥ 133,755 | ¥ 12,747 |
Concentration and Risks - Sched
Concentration and Risks - Schedule of Accounts Receivable from Third Parties Concentration of Credit Risk (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Concentration Risk [Line Items] | |||||
Accounts receivable | ¥ 372,702 | ¥ 253,896 | ¥ 45,021 | ||
Company A | Accounts Receivable | Credit Risk | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | ¥ 58,766 | [1] | |||
Concentration risk, percentage | 53.00% | [1] | |||
Company B | Accounts Receivable | Credit Risk | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | ¥ 36,734 | [1] | |||
Concentration risk, percentage | 33.00% | [1] | |||
Company C | Accounts Receivable | Credit Risk | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | [1] | ¥ 2,778 | |||
Concentration risk, percentage | [1] | 64.00% | |||
[1] | Less than 10% |
Concentration and Risks - Sch_2
Concentration and Risks - Schedule of Other Receivables from Related Parties Concentration of Credit Risk (Details) - Other Receivables - Credit Risk - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Xiaomi Inc | ||
Concentration Risk [Line Items] | ||
Other receivables | ¥ 112,320 | ¥ 24,160 |
Concentration risk, percentage | 100.00% | 42.00% |
Xiaomi H.K. Limited | ||
Concentration Risk [Line Items] | ||
Other receivables | ¥ 33,448 | |
Concentration risk, percentage | 58.00% |
Concentration and Risks - Summa
Concentration and Risks - Summary of Revenue Concentration Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Concentration Risk [Line Items] | ||||
Revenue | ¥ 2,561,229 | $ 372,515 | ¥ 873,219 | ¥ 312,574 |
Xiaomi Telecommunication Technology | Sales Revenue, Net | Revenue Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Revenue | ¥ 1,311,852 | ¥ 739,464 | ¥ 299,827 | |
Concentration risk, percentage | 51.00% | 51.00% | 85.00% | 96.00% |
Concentration and Risks - Addit
Concentration and Risks - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Concentration Risk [Line Items] | ||||
Revenue | ¥ 2,561,229 | $ 372,515 | ¥ 873,219 | ¥ 312,574 |
Contract With Xiaomi | Viomi-branded Products | ||||
Concentration Risk [Line Items] | ||||
Revenue | ¥ 136,520 | ¥ 84,514 | ¥ 19,326 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents Balance (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | ¥ 940,298 | $ 136,761 | ¥ 279,952 | $ 40,718 | ¥ 156,930 | ¥ 127,128 |
RMB | ||||||
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 332,702 | 206,951 | ||||
US$ | ||||||
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | ¥ 607,596 | $ 88,529 | ¥ 73,001 | $ 11,163 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Cash And Cash Equivalents [Abstract] | |||
Restricted cash | ¥ 29,550 | $ 4,298 | ¥ 0 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments Balance (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Schedule Of Investments [Line Items] | |||
Short-term investments | ¥ 168,993 | $ 24,579 | ¥ 0 |
RMB | |||
Schedule Of Investments [Line Items] | |||
Short-term investments | 100,022 | 100,022 | |
US$ | |||
Schedule Of Investments [Line Items] | |||
Short-term investments | ¥ 68,971 | $ 10,049 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Inventory Disclosure [Abstract] | |||
Finished goods | ¥ 136,494 | ¥ 13,956 | |
Raw materials | 95,481 | 36,736 | |
Inventories | ¥ 231,975 | $ 33,739 | ¥ 50,692 |
Inventories - Additional Inform
Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Inventory Disclosure [Abstract] | ||||
Inventory write-down | ¥ 1,059 | $ 154 | ¥ 81 | ¥ 1,658 |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Advances to suppliers | ¥ 23,549 | ¥ 14,428 | |
Other receivables | 15,361 | 3,054 | |
Prepayment for equipment | 3,636 | ||
Other current assets | 7,745 | 5,525 | |
Rental deposits | 235 | 276 | |
Total | 50,526 | 23,283 | |
Less: non-current portion | (3,636) | $ (529) | 0 |
Prepaid expenses and other current assets | ¥ 46,890 | $ 6,819 | ¥ 23,283 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 16,778 | ¥ 6,323 | |
Less: accumulated depreciation | (5,477) | (3,237) | |
Property, plant and equipment, net | 11,301 | $ 1,644 | 3,086 |
Computers and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 16,270 | 5,815 | |
Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 508 | ¥ 508 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | ¥ 2,244 | ¥ 1,680 | ¥ 1,222 |
Impairment charge | ¥ 0 | ¥ 0 | ¥ 0 |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Payables And Accruals [Abstract] | |||
Freight payable | ¥ 50,680 | ¥ 9,799 | |
Other tax payable | 42,076 | 15,359 | |
Accrued payroll and welfare | 39,700 | 16,304 | |
Product warranty | 12,744 | 13,909 | |
Marketing and promotion expenses | 10,710 | 1,000 | |
Professional fee payables | 10,340 | ||
Installation fee payables | 8,133 | ||
Deferred revenue | 1,276 | 146 | |
Deposits received related to unvested shares | 496 | ||
Other current liabilities | 25,789 | 4,871 | |
Total | 201,448 | 61,884 | |
Less: non-current portion | (518) | (460) | |
Accrued expenses and other liabilities-current portion | ¥ 200,930 | $ 29,225 | ¥ 61,424 |
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, 2018 | Dec. 31, 2017 | |
Payables And Accruals [Abstract] | ||
Balance at December 31, 2016 | ¥ 13,909 | ¥ 2,483 |
Provided during the year | 19,775 | 17,806 |
Utilized during the year | (20,940) | (6,380) |
Balance at December 31, 2017 | ¥ 12,744 | ¥ 13,909 |
Revenue - Schedule of Revenue (
Revenue - Schedule of Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 2,561,229 | $ 372,515 | ¥ 873,219 | ¥ 312,574 |
Cost of revenues | 1,843,432 | 268,116 | 598,036 | 232,544 |
Gross profit | 717,797 | $ 104,399 | 275,183 | 80,030 |
IoT-enabled Smart Home Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,081,273 | 712,317 | 273,282 | |
Cost of revenues | 1,514,344 | 499,739 | 206,679 | |
Gross profit | 566,929 | 212,578 | 66,603 | |
Smart Water Purification Systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 930,178 | 570,784 | 250,442 | |
Cost of revenues | 614,829 | 399,788 | 191,848 | |
Gross profit | 315,349 | 170,996 | 58,594 | |
Smart Kitchen Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 744,990 | 50,656 | ||
Cost of revenues | 596,005 | 34,987 | ||
Gross profit | 148,985 | 15,669 | ||
Other Smart Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 406,105 | 90,877 | 22,840 | |
Cost of revenues | 303,510 | 64,964 | 14,831 | |
Gross profit | 102,595 | 25,913 | 8,009 | |
Consumable Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 141,940 | 87,500 | 19,376 | |
Cost of revenues | 67,433 | 48,123 | 10,644 | |
Gross profit | 74,507 | 39,377 | 8,732 | |
Other Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 323,381 | 72,686 | 19,859 | |
Cost of revenues | 247,717 | 49,489 | 15,166 | |
Gross profit | 75,664 | 23,197 | 4,693 | |
Total of Sales of Product | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,546,594 | 872,503 | 312,517 | |
Cost of revenues | 1,829,494 | 597,351 | 232,489 | |
Gross profit | 717,100 | 275,152 | 80,028 | |
Installation Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 14,635 | 716 | 57 | |
Cost of revenues | 13,938 | 685 | 55 | |
Gross profit | ¥ 697 | ¥ 31 | ¥ 2 |
Income Tax (Benefits) Expense_2
Income Tax (Benefits) Expenses - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
High and New Technology Enterprises | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 15.00% | 15.00% | 15.00% |
Hong Kong | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 16.50% | ||
PRC | |||
Income Tax Disclosure [Line Items] | |||
Percentage of qualified research and development expenses enterprises are entitled to claim as additional tax deduction | 75.00% | 50.00% | 50.00% |
Withholding tax rate | 10.00% | ||
Undistributed earnings available for distribution | ¥ 282,130 | ¥ 95,658 | |
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 Disclosure [Line Items] | |||
Withholding tax rate | 5.00% | ||
Minimum percentage of equity interests in PRC foreign-invested enterprise to be subject to special withholding tax rate | 25.00% | ||
Withholding income tax rate on dividends for Hong Kong holding company which is not considered to be beneficial owner | 10.00% | ||
PRC | 2018 | |||
Income Tax Disclosure [Line Items] | |||
Percentage of qualified research and development expenses enterprises are entitled to claim as additional tax deduction | 75.00% | ||
PRC | 2020 | |||
Income Tax Disclosure [Line Items] | |||
Percentage of qualified research and development expenses enterprises are entitled to claim as additional tax deduction | 75.00% | ||
PRC | Enterprise Income Tax | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 25.00% | ||
PRC | Subsidiaries and VIEs and Predecessor Operations | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
PRC | High and New Technology Enterprises | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 15.00% |
Income Tax (Benefits) Expense_3
Income Tax (Benefits) Expenses - Current and Deferred Components of Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 26,247 | ¥ 15,519 | ||
Deferred tax benefit | (2,186) | $ (318) | (801) | ¥ (2,247) |
Income tax (benefits) expenses | ¥ 24,061 | $ 3,500 | ¥ 14,718 | ¥ (2,247) |
Income Tax (Benefits) Expense_4
Income Tax (Benefits) 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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income from operations in the PRC | ¥ 93,910 | ¥ 106,868 | ¥ 13,546 | |
Income (loss) from overseas entities | (4,499) | 1,090 | 466 | |
Income before income tax benefits (expenses) | 89,411 | $ 13,004 | 107,958 | 14,012 |
Tax expense at PRC enterprise income tax rate of 25% | 22,353 | 26,990 | 3,503 | |
Income tax on tax holiday | (9,632) | (10,989) | (1,414) | |
Tax effect of permanence differences | (7,871) | (2,640) | (1,187) | |
Effect of income tax rate change | 3,179 | |||
Change in valuation allowance | 602 | 760 | (7,756) | |
Effect of share-based compensation | 17,492 | 873 | 1,587 | |
Effect of income tax in jurisdictions other than the PRC | 1,117 | (276) | (159) | |
Income tax (benefits) expenses | ¥ 24,061 | $ 3,500 | ¥ 14,718 | ¥ (2,247) |
Income Tax (Benefits) Expense_5
Income Tax (Benefits) Expenses - Reconciliation between Income Tax Expenses Computed by Applying PRC Enterprise Tax Rate Before Income Taxes and Actual Provision (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
High and New Technology Enterprises | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 15.00% | 15.00% | 15.00% |
Income Tax (Benefits) Expense_6
Income Tax (Benefits) Expenses - Per Share Effect of Tax Holidays (Details) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Net income per share effect – basic | ¥ 0.22 | ¥ 0.53 | ¥ 0.12 |
Net income per share effect – diluted | ¥ 0.20 | ¥ 0.41 | ¥ 0.12 |
Income Tax (Benefits) Expense_7
Income Tax (Benefits) Expenses - Significant Components of Deferred Tax Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Inventory write downs | ¥ 421 | ¥ 541 |
Accrued expenses and others | 4,616 | 2,485 |
Deferred income | 191 | 22 |
Net operating loss carry forwards | 1,560 | 952 |
Total deferred tax assets | 6,788 | 4,000 |
Less: valuation allowance | (1,554) | (952) |
Deferred tax assets, net | ¥ 5,234 | ¥ 3,048 |
Income Tax (Benefits) Expense_8
Income Tax (Benefits) Expenses - Movement of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of the year | ¥ 952 | ¥ 192 | ¥ 7,948 |
Provided | 602 | 760 | 190 |
Reversals | 0 | (7,946) | |
Balance at end of the year | ¥ 1,554 | ¥ 952 | ¥ 192 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) - $ / shares | Aug. 23, 2018 | Dec. 31, 2018 | Sep. 25, 2018 | Aug. 22, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Class Of Stock [Line Items] | ||||||
Common stock, par value per share | $ 0.00001 | $ 0.0001 | ||||
Preferred shares, par value | $ 0.00001 | $ 0.0001 | ||||
Number of ordinary shares | 10 | |||||
Surrendered percentage of ordinary shares after share split | 90.00% | |||||
Stock, conversion basis | IPO, 16,145,454 issued class A ordinary shares held by certain key management founders, 33,818,182 issued Class B Ordinary Shares held by Red Better, and 67,636,364 issued 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 Post-IPO 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 class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Post-IPO Class A Ordinary Shares on a one-for-one basis. | |||||
Post-IPO | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 5,000,000,000 | |||||
Ordinary shares, voting rights | Each Post-IPO Class A Ordinary Share is entitled to one vote, and each Post-IPO Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. | |||||
Stock, conversion basis | Each Post-IPO Class B Ordinary Share is convertible into one Post-IPO Class A Ordinary Share at any time by the holder thereof. | |||||
Class A Ordinary Shares | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 346,545,454 | |||||
Common stock, par value per share | $ 0.00001 | $ 0.0001 | ||||
Ordinary shares, outstanding | 0 | 25,363,636 | ||||
Ordinary shares, voting rights | Each ordinary share is entitled to one vote | |||||
Common stock, shares issued | 4,000,000 | 33,818,182 | 33,818,182 | |||
Ordinary shares, transferred | 16,145,454 | |||||
Ordinary shares, surrendered | 17,672,728 | |||||
Fair value per share | $ 3.30 | |||||
Class A Ordinary Shares | Post-IPO | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 4,800,000,000 | 4,800,000,000 | 4,800,000,000 | |||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Ordinary shares, outstanding | 90,200,000 | |||||
Common stock, shares issued | 90,200,000 | |||||
Class A Ordinary Shares | Post-IPO | Key Management Founders | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares issued | 16,145,454 | |||||
Class B Ordinary Shares | Post-IPO | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Ordinary shares, outstanding | 117,600,000 | |||||
Common stock, shares issued | 117,600,000 | |||||
Class B Ordinary Shares | Post-IPO | Red Better Limited | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares issued | 33,818,182 | |||||
Class B Ordinary Shares | Post-IPO | Viomi Limited | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares issued | 67,636,364 | |||||
Designated Common Stock | Post-IPO | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 50,000,000 | |||||
Common stock, par value per share | $ 0.00001 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred and Class B Ordinary Shares - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 7 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | |
Series A Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Stock issued | 0 | 18,181,818 | ||
Temporary equity per share | $ 0.00001 | $ 0.00001 | ||
Dividend rights rate percentage | 8.00% | |||
Liquidation rights rate percentage | 150.00% | |||
Series A Preferred Shares | Investors | ||||
Temporary Equity [Line Items] | ||||
Stock issued | 18,181,818 | |||
Temporary equity per share | $ 0.0001 | |||
Shares issued price per share | $ 1.1 | |||
Stock issued for consideration including conversion of outstanding bridge loans | $ 20,000 | |||
Outstanding bridge loans | $ 5,250 | |||
Series A Preferred Shares and Class B Ordinary Shares | ||||
Temporary Equity [Line Items] | ||||
Initial conversion ratio description | 1-to-1 initial conversion ratio | |||
Compound interest return per annum on issuance price | 6.00% | |||
Class B Ordinary Shares | ||||
Temporary Equity [Line Items] | ||||
Dividend rights rate percentage | 8.00% | |||
Liquidation rights rate percentage | 150.00% | |||
Stock issued during upon exchange of equity interest | 67,636,364 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred and Class B Ordinary Shares - Summary of Change Balance of Series A Preferred Shares and Class B Ordinary Shares (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Temporary Equity [Line Items] | |||
Beginning Balance | ¥ 407,928,000 | ¥ 423,999,000 | ¥ 388,860,000 |
Accretion of preferred shares | 6,563,000 | 8,834,000 | 8,221,000 |
Foreign exchange | 19,667,000 | (24,905,000) | 26,918,000 |
Conversion of Series A Preferred Shares and ClassB Ordinary Shares to ordinary shares upon thecompletion of the IPO on September 25, 2018 | (434,158,000) | ||
Ending Balance | 407,928,000 | 423,999,000 | |
Series A Preferred Shares | |||
Temporary Equity [Line Items] | |||
Beginning Balance | 151,045,000 | 151,279,000 | 133,573,000 |
Accretion of preferred shares | 6,563,000 | 8,834,000 | 8,221,000 |
Foreign exchange | 7,487,000 | (9,068,000) | 9,485,000 |
Conversion of Series A Preferred Shares and ClassB Ordinary Shares to ordinary shares upon thecompletion of the IPO on September 25, 2018 | (165,095,000) | ||
Ending Balance | 151,045,000 | 151,279,000 | |
Class B Ordinary Shares | |||
Temporary Equity [Line Items] | |||
Accretion of preferred shares | 0 | 0 | 0 |
Founder | Class B Ordinary Shares | |||
Temporary Equity [Line Items] | |||
Beginning Balance | 51,376,000 | 54,545,000 | 51,057,000 |
Foreign exchange | 2,437,000 | (3,169,000) | 3,488,000 |
Conversion of Series A Preferred Shares and ClassB Ordinary Shares to ordinary shares upon thecompletion of the IPO on September 25, 2018 | (53,813,000) | ||
Ending Balance | 51,376,000 | 54,545,000 | |
Xiaomi Telecommunication Technology | Class B Ordinary Shares | |||
Temporary Equity [Line Items] | |||
Beginning Balance | 205,507,000 | 218,175,000 | 204,230,000 |
Foreign exchange | 9,743,000 | (12,668,000) | 13,945,000 |
Conversion of Series A Preferred Shares and ClassB Ordinary Shares to ordinary shares upon thecompletion of the IPO on September 25, 2018 | ¥ (215,250,000) | ||
Ending Balance | ¥ 205,507,000 | ¥ 218,175,000 |
Redeemable Convertible Prefer_5
Redeemable Convertible Preferred and Class B Ordinary Shares - Summary of Change Balance of Series A Preferred Shares and Class B Ordinary Shares (Parenthetical) (Details) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Temporary Equity [Line Items] | ||||
Accretion of preferred shares | ¥ 6,563,000 | ¥ 8,834,000 | ¥ 8,221,000 | |
Class B Ordinary Shares | ||||
Temporary Equity [Line Items] | ||||
Accretion of preferred shares | ¥ 0 | ¥ 0 | ¥ 0 | |
Stock issued during upon exchange of equity interest | 67,636,364 | |||
Class B Ordinary Shares | Restricted Share Arrangement | ||||
Temporary Equity [Line Items] | ||||
Stock issued during upon exchange of equity interest | 50,727,273 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Compensation Expense Recognized for Share-Based Awards (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | ¥ 116,611 | ¥ 5,821 | ¥ 10,578 |
Restricted Shares Owned by the Founder – Equity Component | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | 826 | 2,670 | 6,051 |
Restricted Shares Owned by the Founder – Liability Component | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | 212 | 286 | 266 |
Restricted Shares Owned by the Founder on Behalf of Certain Key Management Founders | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | 14 | 48 | 93 |
Share Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | 25,391 | ¥ 2,817 | ¥ 4,168 |
Shares Awarded to Mr. Chen | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | ¥ 90,168 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Aug. 23, 2018$ / sharesshares | Sep. 17, 2015shares | Jun. 30, 2014 | May 31, 2014CNY (¥) | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2016¥ / sharesshares | Jun. 30, 2018shares | Dec. 31, 2015shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Capital contribution | ¥ 2,705 | $ 393 | ¥ 2,671 | |||||||||
Weighted average grant date fair value of options granted | (per share) | ¥ 18.23 | $ 2.66 | ¥ 6.01 | $ 0.90 | $ 0.38 | ¥ 2.50 | ||||||
Options exercised | 0 | 0 | 0 | 0 | 0 | |||||||
Unrecognized compensation expenses related to options | ¥ | ¥ 53,879 | |||||||||||
Class A Ordinary Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Ordinary shares, issued | 4,000,000 | 33,818,182 | 33,818,182 | 33,818,182 | ||||||||
2015 Share Incentive Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share incentive plan effective period | 10 years | |||||||||||
Maximum number of shares issued under share incentive plan | 12,727,272 | |||||||||||
Number of share options granted to employees under stock incentive plans | 5,460,000 | 5,460,000 | 2,700,000 | 1,860,000 | 1,860,000 | |||||||
2015 Share Incentive Plan | Vested after 24 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share options vested percentage | 50.00% | 50.00% | 50.00% | |||||||||
2015 Share Incentive Plan | Vested in Two Equal Installments over Following 24 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share options vested percentage | 50.00% | 50.00% | 50.00% | |||||||||
2018 Share Incentive Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Maximum number of shares issued under share incentive plan | 17,672,728 | |||||||||||
Number of share options granted to employees under stock incentive plans | 670,000 | 670,000 | ||||||||||
2015 Share Incentive Plan and 2018 Share Incentive Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of share options granted to employees under stock incentive plans | 6,130,000 | 6,130,000 | 2,700,000 | 1,860,000 | 1,860,000 | |||||||
2015 Share Incentive Plan and 2018 Share Incentive Plan | Vested after 24 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of share options granted to employees under stock incentive plans | 5,500,000 | 5,500,000 | ||||||||||
2015 Share Incentive Plan and 2018 Share Incentive Plan | Vested in Two Equal Installments over Following 24 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of share options granted to employees under stock incentive plans | 630,000 | 630,000 | ||||||||||
2015 Share Incentive Plan and 2018 Share Incentive Plan | With Respect to 5,500,000 Share Options Granted, Vesting after 24 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share options vested percentage | 40.00% | 40.00% | ||||||||||
2015 Share Incentive Plan and 2018 Share Incentive Plan | With Respect to 5,500,000 Share Options Granted, Vested in Three Equal Installments over Following 36 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share options vested percentage | 60.00% | 60.00% | ||||||||||
2015 Share Incentive Plan and 2018 Share Incentive Plan | With Respect to 630,000 Share Options Granted, Vesting after 24 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share options vested percentage | 50.00% | 50.00% | ||||||||||
2015 Share Incentive Plan and 2018 Share Incentive Plan | With Respect to 630,000 Share Options Granted, Vested in Two Equal Installments over Following 24 Months | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share options vested percentage | 50.00% | 50.00% | ||||||||||
Founder | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Capital contribution | ¥ | ¥ 7,500 | |||||||||||
Equity interests | 60.00% | |||||||||||
Equity investments amount | ¥ | ¥ 7,500 | |||||||||||
Repurchase of shares lapse rate | 0.25 | |||||||||||
Vesting period | 4 years | |||||||||||
Founder | Class A Ordinary Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Ordinary shares, issued | 4,000,000 | |||||||||||
Estimated fair value per share | $ / shares | $ 3.30 | |||||||||||
Founder | Restricted Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Unsettled restricted shares granted | 50,727,273 | |||||||||||
Tianjin Jinxing | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Capital contribution | ¥ | ¥ 5,000 | |||||||||||
Equity interests | 40.00% | |||||||||||
Equity investments amount | ¥ | ¥ 5,000 | |||||||||||
Key Management Founders | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Equity investments amount | ¥ | ¥ 2,500 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Shares Activity (Details) - shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Restricted Shares Owned by the Founder on Behalf of Certain Key Management Founders | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning Period | 8,454,546 | 16,909,092 | 25,363,638 | |
Number of shares, Surrender and cancellation | [1] | (5,918,182) | ||
Number of shares, Vested | (2,536,364) | (8,454,546) | (8,454,546) | |
Number of shares, Outstanding, Ending Period | 8,454,546 | 16,909,092 | ||
Restricted Shares Owned By Founder On His Own Behalf | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning Period | 16,909,091 | 33,818,182 | 50,727,273 | |
Number of shares, Vested | (16,909,091) | (16,909,091) | (16,909,091) | |
Number of shares, Outstanding, Ending Period | 16,909,091 | 33,818,182 | ||
Restricted Shares | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning Period | 25,363,637 | 50,727,274 | 76,090,911 | |
Number of shares, Surrender and cancellation | [1] | (5,918,182) | ||
Number of shares, Vested | (19,445,455) | (25,363,637) | (25,363,637) | |
Number of shares, Outstanding, Ending Period | 25,363,637 | 50,727,274 | ||
[1] | 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. Out of the 17,672,728 Class A ordinary shares surrendered, 5,918,182 shares were unvested restricted shares. The cancellation of these 5,918,182 shares is accounted for as an acceleration of vesting of such shares and the unrecognised share-based compensation expenses related to these 5,918,182 shares have been recognised in the consolidated financial statements for the year ended December 31, 2018. The share-based compensation expenses recognised due to the acceleration of vesting is not material. |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Shares Activity (Parenthetical) (Details) - shares | 12 Months Ended | |||||
Dec. 31, 2018 | Aug. 23, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unvested restricted shares | 25,363,637 | 50,727,274 | 76,090,911 | |||
Class A Ordinary Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Ordinary shares, issued | 4,000,000 | 33,818,182 | 33,818,182 | |||
Ordinary shares, surrendered | 17,672,728 | |||||
Class A Ordinary Shares | Restricted Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Ordinary shares, surrendered | 17,672,728 | |||||
Unvested restricted shares | 5,918,182 | |||||
Acceleration of vesting shares | 5,918,182 | |||||
Mr. Chen | Class A Ordinary Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Ordinary shares, issued | 4,000,000 | |||||
Mr. Chen | Class A Ordinary Shares | Restricted Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Ordinary shares, held | 33,818,182 | |||||
Key Management Founders | Class A Ordinary Shares | Restricted Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Ordinary shares, issued | 16,145,454 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Movement of Liability Awards with Respect to Unsettled Restricted Shares Granted (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expenses | ¥ 116,611 | ¥ 5,821 | ¥ 10,578 |
Restricted Shares Owned By Founder On His Own Behalf | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Balance outstanding | 4,738 | 4,550 | 4,181 |
Share-based compensation expenses | 212 | 286 | 266 |
Foreign currency translation adjustment | 408 | (98) | 103 |
Balance outstanding | 0 | ¥ 4,738 | ¥ 4,550 |
Restricted Shares Owned By Founder On His Own Behalf | IPO | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Conversion of Restricted Shares to ordinary shares upon the completion of the IPO on September 25, 2018 | ¥ (5,358) |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions used to Determine Fair Value of Share Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.86% | ||
Risk-free interest rate, minimum | 3.62% | 3.06% | |
Risk-free interest rate, maximum | 3.92% | 3.89% | |
Expected volatility, minimum | 45.51% | 47.02% | 50.14% |
Expected volatility, maximum | 46.99% | 49.44% | 50.15% |
Expected life of option (years) | 10 years | 10 years | 10 years |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value per ordinary share | $ 1.61 | $ 0.76 | |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value per ordinary share | $ 3.30 | $ 1.59 | $ 0.51 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Stock Option Activity (Details) - 2015 Share Incentive Plan and 2018 Share Incentive Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted Share Number, Outstanding, Beginning Period | 7,540,000 | 5,620,000 | 4,740,000 |
Options granted Share Number, Granted | 6,130,000 | 2,700,000 | 1,860,000 |
Options granted Share Number, Forfeited | (410,000) | (780,000) | (980,000) |
Options granted Share Number, Outstanding, Ending Period | 13,260,000 | 7,540,000 | 5,620,000 |
Weighted average exercise price, Outstanding, Beginning Period | $ 0.25 | $ 0.12 | $ 0.06 |
Weighted average exercise price, Granted | 0.64 | 0.52 | 0.24 |
Weighted average exercise price, Forfeited | 0.43 | 0.27 | 0.04 |
Weighted average exercise price, Outstanding, Ending Period | $ 0.43 | $ 0.25 | $ 0.12 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary Regarding Share Options Granted (Details) - 2015 and 2018 Share Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options Number, Outstanding | 13,260,000 | 7,540,000 | 5,620,000 | 4,740,000 |
Options Number, Exercisable | 3,945,000 | 2,612,500 | 915,000 | |
Options Number, Expected to vest | 8,290,350 | 4,385,475 | 4,187,450 | |
Weighted-average exercise price per option, Outstanding | $ 0.43 | $ 0.25 | $ 0.12 | $ 0.06 |
Weighted-average exercise price per option, Exercisable | 0.08 | 0.06 | 0.02 | |
Weighted-average exercise price per option, Expected to vest | $ 0.57 | $ 0.35 | $ 0.14 | |
Weighted-average remaining exercise contractual life (years), Outstanding | 8 years 4 months 24 days | 8 years 7 months 24 days | 9 years 2 months 19 days | |
Weighted-average remaining exercise contractual life (years), Exercisable | 7 years 10 days | 7 years 11 months 26 days | 8 years 9 months 29 days | |
Weighted-average remaining exercise contractual life (years), Expected to vest | 8 years 11 months 19 days | 9 years | 9 years 3 months 14 days | |
Aggregate intrinsic value, Outstanding | $ 18,705 | $ 3,697 | $ 1,854 | |
Aggregate intrinsic value, Exercisable | 1,752 | 987 | 366 | |
Aggregate intrinsic value, Expected to vest | $ 15,373 | $ 2,695 | $ 1,324 |
Net (Loss) Income Per Share - S
Net (Loss) Income 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, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Numerator for basic calculation - Net (loss) income attributable to ordinary shareholders of the Company | ¥ 50,544 | $ 7,350 | ¥ 8,033 | ¥ (3,453) |
Denominator: | ||||
Denominator for basic calculation - weighted average ordinary shares outstanding | 71,771,033 | 71,771,033 | 20,684,681 | 12,230,136 |
Dilutive effect of share options | 7,819,747 | 7,819,747 | 4,895,125 | |
Denominator for diluted calculation | 79,590,780 | 79,590,780 | 25,579,806 | 12,230,136 |
Basic net (loss) income per ordinary share | (per share) | ¥ 0.70 | $ 0.10 | ¥ 0.39 | ¥ (0.28) |
Diluted net (loss) income per ordinary share | (per share) | ¥ 0.64 | $ 0.09 | ¥ 0.31 | ¥ (0.28) |
Net (Loss) Income Per Share -_2
Net (Loss) Income Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class B Ordinary Shares | Red Better and Shunwei | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive outstanding shares | 67,636,364 | 67,636,364 |
Series A Preferred Shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive outstanding shares | 18,181,818 | 18,181,818 |
Share Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive outstanding shares | 3,370,739 | |
Restricted Shares | Founder | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive outstanding shares | 67,636,364 | 67,636,364 |
Unvested Restricted Shares | Founder | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive outstanding shares | 13,079,391 | 21,520,813 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transaction Relationship (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Founder | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Founder |
Xiaomi Inc. | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by Xiaomi |
Xiaomi H.K. Limited | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by Xiaomi |
Xiaomi Telecommunication Technology | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by Xiaomi |
Tianjin Jinxing | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by Xiaomi |
Xiaomi Software | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by Xiaomi |
Guangzhou Xiaomi | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by Xiaomi |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Xiaomi | 12 Months Ended |
Dec. 31, 2018 | |
Business Corporation Agreement | |
Related Party Transaction [Line Items] | |
Related party transaction expiration | 2019-08 |
Related party transactions agreement extend period | 1 year |
Business Corporation Agreement | Minimum | |
Related Party Transaction [Line Items] | |
Related party transaction agreement objection period | 30 days |
Youpin Commission Sales Agreement | |
Related Party Transaction [Line Items] | |
Related party transaction, expire date | Dec. 31, 2018 |
Related party transaction agreement termination notice period | 30 days |
Related party transaction renewed date | Dec. 31, 2019 |
Related party transaction commission percentage in sales excluding customer refunds | 8.00% |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Other receivables from related parties | ¥ 112,320 | ¥ 57,608 | $ 16,336 | ||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of RMB35,953 and RMB5,763 as of December 31, 2017 and 2018, respectively) | 5,763 | 35,953 | $ 838 | ||
Purchase from related parties | 14,733 | $ 2,143 | 1,296 | ¥ 1,321 | |
A related party | 1,311,852 | $ 190,801 | 739,464 | 299,827 | |
Selling and marketing expenses | 24,598 | 3,327 | 166 | ||
Interest expense from related party | 333 | 1,271 | 1,489 | ||
Xiaomi Inc. | |||||
Related Party Transaction [Line Items] | |||||
Selling and marketing expenses | 20,824 | 3,327 | 166 | ||
Guangzhou Xiaomi | |||||
Related Party Transaction [Line Items] | |||||
Selling and marketing expenses | 3,774 | ||||
Xiaomi Software | |||||
Related Party Transaction [Line Items] | |||||
Interest expense from related party | 440 | 1,761 | 1,761 | ||
Xiaomi H.K. Limited | |||||
Related Party Transaction [Line Items] | |||||
Interest income | 107 | 490 | 272 | ||
Xiaomi Telecommunication Technology | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable from a relate party | 260,984 | 249,548 | |||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of RMB35,953 and RMB5,763 as of December 31, 2017 and 2018, respectively) | 3,876 | 1,225 | |||
Purchase from related parties | 18,235 | 1,685 | 1,327 | ||
A related party | 1,311,852 | 739,464 | ¥ 299,827 | ||
Xiaomi H.K. Limited | |||||
Related Party Transaction [Line Items] | |||||
Other receivables from related parties | 33,448 | ||||
Xiaomi Inc. | |||||
Related Party Transaction [Line Items] | |||||
Other receivables from related parties | 112,320 | 24,160 | |||
Xiaomi Software | |||||
Related Party Transaction [Line Items] | |||||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of RMB35,953 and RMB5,763 as of December 31, 2017 and 2018, respectively) | 32,228 | ||||
Guangzhou Xiaomi | |||||
Related Party Transaction [Line Items] | |||||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of RMB35,953 and RMB5,763 as of December 31, 2017 and 2018, respectively) | ¥ 1,887 | ||||
Tianjin Jinxing | |||||
Related Party Transaction [Line Items] | |||||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of RMB35,953 and RMB5,763 as of December 31, 2017 and 2018, respectively) | ¥ 2,500 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Related Party Transactions (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | ¥ 5,763 | ¥ 35,953 | $ 838 | |
Xiaomi H.K. Limited | Loan to Related Party | ||||
Related Party Transaction [Line Items] | ||||
Loan to related party | $ | $ 5,000 | |||
Description of interest rate | 3 month Libor add 10bps | |||
Basis spread on variable rate | 0.10% | 0.10% | ||
Loan term | 3 months | |||
Extended loan term | 3 months | |||
Xiaomi Software | Loan from Related Party | ||||
Related Party Transaction [Line Items] | ||||
Loan from related party | ¥ 31,900 | |||
Interest rate of loan | 5.52% | |||
Loan term | 3 months | |||
Extended loan term | 3 months | |||
Tianjin Jinxing | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | 2,500 | |||
Tianjin Jinxing | Red Better Limited | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from shareholder with understanding that amount will be repaid to related party | ¥ 2,671 | $ 409 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Short-term Investment ¥ in Thousands | Dec. 31, 2018CNY (¥) | [1] |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | ¥ 168,993 | |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | ¥ 168,993 | |
[1] | 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 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Commitments under Non-Cancellable Agreements (Details) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | ¥ 4,284 |
2020 | 2,947 |
2021 | 1,600 |
2022 and after | 978 |
Total | ¥ 9,809 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Subsequent Event [Line Items] | ||
Committed investment amount | ¥ 6,000 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Committed investment amount paid | ¥ 6,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | Mar. 18, 2019$ / sharesshares |
Subsequent Event [Line Items] | |
Dividend approved date | Mar. 18, 2019 |
Cash dividend per share | $ 0.0333 |
Dividend record date | Mar. 28, 2019 |
American Depositary Shares | |
Subsequent Event [Line Items] | |
Cash dividend per share | $ 0.10 |
Number of ordinary shares | shares | 3 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - CNY (¥) | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Amount of restricted net assets for consolidated and unconsolidated subsidiaries | ¥ 18,750 | ¥ 13,750 |