Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Viomi Technology Co., Ltd |
Entity Central Index Key | 0001742770 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Entity Bankruptcy Proceedings, Reporting Current | false |
Document Accounting Standard | U.S. GAAP |
Entity File Number | 001-38649 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Wansheng Square, Rm 1302 Tower C |
Entity Address, Address Line Two | Xingang East Road |
Entity Address, Address Line Three | Haizhu District Guangzhou |
Entity Address, City or Town | Guangdong |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510220 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Wansheng Square, Rm 1302 Tower C |
Entity Address, Address Line Two | Xingang East Road |
Entity Address, Address Line Three | Haizhu District Guangzhou |
Entity Address, City or Town | Guangdong |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510220 |
Contact Personnel Name | Shun Jiang |
City Area Code | 20 |
Local Phone Number | 8930 9496 |
Contact Personnel Email Address | jiangshun@viomi.com.cn |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 98,444,732 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 110,850,000 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing three Class A ordinary shares |
Trading Symbol | VIOT |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 972,438 | $ 139,682 | ¥ 940,298 |
Restricted cash | 30,567 | 4,391 | 29,550 |
Short-term deposits | 60,000 | 8,618 | |
Short-term investments | 316,201 | 45,419 | 168,993 |
Accounts and notes receivable from third parties (net of allowance of nil and RMB2,006 as of December 31, 2018 and 2019, respectively) | 316,189 | 45,418 | 111,718 |
Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) | 707,947 | 101,691 | 260,984 |
Other receivables from related parties (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) | 23,944 | 3,439 | 112,320 |
Inventories | 418,015 | 60,044 | 231,975 |
Prepaid expenses and other current assets | 62,314 | 8,951 | 46,890 |
Total current assets | 2,907,615 | 417,653 | 1,902,728 |
Non-current assets | |||
Property, plant and equipment, net | 67,293 | 9,666 | 11,301 |
Deferred tax assets | 12,276 | 1,763 | 5,234 |
Prepaid expenses and other non-current assets | 11,170 | 1,604 | 3,636 |
Intangible assets, net | 4,357 | 626 | 169 |
Right-of-use assets, net | 19,762 | 2,839 | |
Total non-current assets | 114,858 | 16,498 | 20,340 |
Total assets | 3,022,473 | 434,151 | 1,923,068 |
Current liabilities | |||
Accounts and notes payable (including accounts and notes payable of the consolidated variable interest entities and their subsidiaries (“VIEs”) without recourse to the Company of RMB548,481 and RMB1,043,159 as of December 31, 2018 and 2019, respectively) | 1,043,159 | 149,840 | 548,481 |
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Company of RMB86,312 and RMB103,150 as of December 31, 2018 and 2019, respectively) | 103,150 | 14,817 | 86,312 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Company of RMB5,763 and RMB25,106 as of December 31, 2018 and 2019, respectively) | 25,106 | 3,606 | 5,763 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Company of RMB179,712 and RMB308,228 as of December 31, 2018 and 2019, respectively) | 325,042 | 46,689 | 200,930 |
Short-term borrowing (including short-term borrowing of the consolidated VIEs without recourse to the Company of nil and RMB95,868 as of December 31, 2018 and 2019, respectively) | 95,868 | 13,771 | |
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Company of RMB10,199 and RMB33,522 as of December 31, 2018 and 2019, respectively) | 33,522 | 4,815 | 10,199 |
Lease liabilities due within one year (including lease liabilities due within one year of the consolidated VIEs without recourse to the Company of nil and RMB6,802 as of December 31, 2018 and 2019, respectively) | 6,993 | 1,004 | |
Total current liabilities | 1,632,840 | 234,542 | 851,685 |
Non-current liabilities | |||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Company of RMB518 and RMB1,795 as of December 31, 2018 and 2019, respectively) | 1,795 | 258 | 518 |
Lease liabilities (including lease liabilities of the consolidated VIEs without recourse to the Company of nil and RMB13,391 as of December 31, 2018 and 2019, respectively) | 13,391 | 1,923 | |
Total non-current liabilities | 15,186 | 2,181 | 518 |
Total liabilities | 1,648,026 | 236,723 | 852,203 |
Commitments and contingencies (Note 21) | |||
Shareholders’ equity | |||
Additional paid-in capital | 1,192,332 | 171,268 | 1,193,174 |
(Accumulated deficit) retained earnings | 195,596 | 28,096 | (95,527) |
Accumulated other comprehensive loss | (19,145) | (2,750) | (29,786) |
Total equity attributable to shareholders of Viomi Technology Co., Ltd (the "Company") | 1,368,795 | 196,616 | 1,067,873 |
Non-controlling interests | 5,652 | 812 | 2,992 |
Total shareholders’ equity | 1,374,447 | 197,428 | 1,070,865 |
Total liabilities and shareholders’ equity | 3,022,473 | 434,151 | 1,923,068 |
Class A Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares, value | 6 | 1 | 5 |
Class B Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares, value | ¥ 6 | $ 1 | ¥ 7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares |
Accounts and Notes Receivable, Net, Current | ¥ 2,006 | ¥ 0 |
Accounts and notes payable current | 1,043,159 | 548,481 |
Advances from customers | 103,150 | 86,312 |
Amounts due to related parties | 25,106 | 5,763 |
Accrued expenses and other liabilities current | 325,042 | 200,930 |
Short-term borrowings | 95,868 | |
Income tax payables | 33,522 | 10,199 |
Lease liabilities, current | 6,993 | |
Accrued expenses and other liabilities non current | 1,795 | 518 |
Lease liabilities, non current | 13,391 | |
VIEs | ||
Accounts and Notes Receivable, Net, Current | 2,006 | |
Accounts and notes payable current | 1,043,159 | 548,481 |
Advances from customers | 103,150 | 86,312 |
Amounts due to related parties | 25,106 | 5,763 |
Accrued expenses and other liabilities current | 308,228 | 179,712 |
Short-term borrowings | 95,868 | |
Income tax payables | 33,522 | 10,199 |
Lease liabilities, current | 6,802 | |
Accrued expenses and other liabilities non current | 1,795 | 518 |
Lease liabilities, non current | 13,391 | |
Related Party | ||
Accounts and Notes Receivable, Net, Current | 0 | 0 |
Accounts and Other Receivables, Net, Current | 0 | 0 |
Third Party | ||
Accounts and Notes Receivable, Net, Current | ¥ 2,006 | ¥ 0 |
Class A Ordinary Shares | ||
Common stock, shares authorized | shares | 4,800,000,000 | 4,800,000,000 |
Common stock, shares issued | shares | 98,444,732 | 90,200,000 |
Common stock, shares outstanding | shares | 98,444,732 | 90,200,000 |
Class B Ordinary Shares | ||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 |
Common stock, shares issued | shares | 110,850,000 | 117,600,000 |
Common stock, shares outstanding | shares | 110,850,000 | 117,600,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
A related party | ¥ 2,112,170 | $ 303,394 | ¥ 1,311,852 | ¥ 739,464 |
Third parties | 2,535,343 | 364,179 | 1,249,377 | 133,755 |
Total net revenues | 4,647,513 | 667,573 | 2,561,229 | 873,219 |
Cost of revenues (including RMB1,296, RMB14,733 and RMB48,424 with related parties for the years ended December 31, 2017, 2018 and 2019, respectively) | (3,565,109) | (512,095) | (1,843,432) | (598,036) |
Gross profit | 1,082,404 | 155,478 | 717,797 | 275,183 |
Operating expenses: | ||||
Research and development expenses(including nil, nil and RMB657 with a related party for the years ended December 31, 2017, 2018 and 2019, respectively) | (204,942) | (29,438) | (124,230) | (60,749) |
Selling and marketing expenses (including RMB3,327, RMB24,598 and RMB81,851 with related parties for the years ended December 31, 2017, 2018 and 2019, respectively) | (529,212) | (76,017) | (379,554) | (95,296) |
General and administrative expenses | (73,061) | (10,495) | (135,532) | (15,818) |
Total operating expenses | (807,215) | (115,950) | (639,316) | (171,863) |
Other income, net | 35,880 | 5,154 | 1,829 | 2,236 |
Income from operations | 311,069 | 44,682 | 80,310 | 105,556 |
Interest income and short-term investment income, net (including net interest expense of RMB1,271, RMB333 and nil with related parties for the years ended December 31, 2017, 2018 and 2019, respectively) | 26,109 | 3,750 | 8,846 | 2,402 |
Other non-operating income | 1,842 | 265 | 255 | |
Income before income tax expenses | 339,020 | 48,697 | 89,411 | 107,958 |
Income tax expenses | (45,190) | (6,491) | (24,061) | (14,718) |
Net income | 293,830 | 42,206 | 65,350 | 93,240 |
Less: Net (loss) income attributable to the non-controlling interest shareholders | 1,660 | 238 | (8) | |
Net income attributable to the Company | 292,170 | 41,968 | 65,358 | 93,240 |
Net income attributable to ordinary shareholders of the Company | 292,170 | 41,968 | 50,544 | 8,033 |
Net income attributable to the Company | 292,170 | 41,968 | 65,358 | 93,240 |
Foreign currency translation adjustment | 10,641 | 1,528 | (11,782) | 19,102 |
Total comprehensive income attributable to the Company | ¥ 302,811 | $ 43,496 | ¥ 53,576 | ¥ 112,342 |
Net income per ADS* | ||||
-Basic | (per share) | ¥ 1.40 | $ 0.20 | ¥ 0.70 | ¥ 0.39 |
-Diluted | (per share) | ¥ 1.35 | $ 0.19 | ¥ 0.64 | ¥ 0.31 |
Weighted average number of ADS used in calculating net income per ADS | ||||
-Basic | shares | 208,156,507 | 208,156,507 | 71,771,033 | 20,684,681 |
-Diluted | shares | 215,855,577 | 215,855,577 | 79,590,780 | 25,579,806 |
Series A Preferred Shares | ||||
Operating expenses: | ||||
Accretion of Series A Preferred Shares | ¥ (6,563) | ¥ (8,834) | ||
Cumulative dividend | (7,631) | (10,803) | ||
Undistributed earnings allocated | (7,061) | |||
Class B Ordinary Shares | ||||
Operating expenses: | ||||
Cumulative dividend | ¥ (620) | (877) | ||
Undistributed earnings allocated | (52,533) | |||
Unvested Class A Ordinary Shares | ||||
Operating expenses: | ||||
Undistributed earnings allocated | ¥ (5,099) | |||
American Depositary Shares | ||||
Net income per ADS* | ||||
-Basic | (per share) | ¥ 4.21 | $ 0.60 | ¥ 2.10 | ¥ 1.17 |
-Diluted | (per share) | ¥ 4.06 | $ 0.58 | ¥ 1.92 | ¥ 0.93 |
Weighted average number of ADS used in calculating net income per ADS | ||||
-Basic | shares | 69,385,502 | 69,385,502 | 23,923,678 | 6,894,894 |
-Diluted | shares | 71,951,859 | 71,951,859 | 26,530,260 | 8,526,602 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Selling and marketing expenses from related party | ¥ 81,851 | ¥ 24,598 | ¥ 3,327 | |
Interest expense from related party | 333 | 1,271 | ||
Purchase from a related party | 48,424 | 14,733 | 1,296 | |
Research and development expenses related party | 657 | |||
Share-based compensation expense | 43,168 | 116,611 | 5,821 | |
General and Administrative Expenses | ||||
Share-based compensation expense | 7,282 | $ 1,046 | 93,718 | 3,303 |
Research and Development Expenses | ||||
Share-based compensation expense | 23,564 | 3,385 | 14,476 | 1,903 |
Selling and Marketing Expenses | ||||
Share-based compensation expense | ¥ 12,322 | $ 1,770 | ¥ 8,417 | ¥ 615 |
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 Class A Ordinary SharesCNY (¥) | Conversion of Class B Redeemable Convertible Ordinary Shares into Class A Ordinary Shares and Class B Ordinary SharesCNY (¥) | 2015 Share Incentive PlanCNY (¥) | 2015 and 2018 Share Incentive PlanCNY (¥)shares | Class A Ordinary Sharesshares | Class B Ordinary Sharesshares | Common StockClass A Ordinary SharesCNY (¥)shares | Common StockClass A Ordinary SharesFoundershares | Common StockClass A Ordinary SharesConversion of Class A ordinary shares into Class B ordinary sharesCNY (¥)shares | Common StockClass A Ordinary SharesConversion of Series A Redeemable Convertible Preferred Shares into Class A Ordinary SharesCNY (¥)shares | Common StockClass A Ordinary SharesConversion of Class B Redeemable Convertible Ordinary Shares into Class A Ordinary Shares and Class B Ordinary SharesCNY (¥)shares | Common StockClass A Ordinary SharesConversion of Class B ordinary shares into Class A ordinary sharesCNY (¥)shares | Common StockClass B Ordinary SharesCNY (¥)shares | Common StockClass B Ordinary SharesConversion of Class A ordinary shares into Class B ordinary sharesCNY (¥)shares | Common StockClass B Ordinary SharesConversion of Class B Redeemable Convertible Ordinary Shares into Class A Ordinary Shares and Class B Ordinary SharesCNY (¥)shares | Common StockClass B Ordinary SharesConversion of Class B ordinary shares into Class A ordinary sharesCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalFounderCNY (¥) | Additional Paid-in CapitalConversion of Series A Redeemable Convertible Preferred Shares into Class A Ordinary SharesCNY (¥) | Additional Paid-in CapitalConversion of Class B Redeemable Convertible Ordinary Shares into Class A Ordinary Shares and Class B Ordinary SharesCNY (¥) | Additional Paid-in Capital2015 Share Incentive PlanCNY (¥) | Additional Paid-in Capital2015 and 2018 Share Incentive PlanCNY (¥) | (Accumulated Deficit) Retained EarningsCNY (¥) | Accumulated Other Comprehensive LossCNY (¥) | (Accumulated Deficit) Retained EarningsCNY (¥) | (Accumulated Deficit) Retained EarningsFounderCNY (¥) | (Accumulated Deficit) Retained EarningsConversion of Series A Redeemable Convertible Preferred Shares into Class A Ordinary SharesCNY (¥) | (Accumulated Deficit) Retained EarningsConversion of Class B Redeemable Convertible Ordinary Shares into Class A Ordinary Shares and Class B Ordinary SharesCNY (¥) | (Accumulated Deficit) Retained Earnings2015 Share Incentive PlanCNY (¥) | (Accumulated Deficit) Retained Earnings2015 and 2018 Share Incentive PlanCNY (¥) | Non-Controlling InterestCNY (¥) |
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 | |||||||||||||||||||||||||||||||
Appropriation to statutory reserves | 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 | 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 Initial Public Offering, in shares | shares | 34,200,000 | 34,200,000 | ||||||||||||||||||||||||||||||||
Securities converted into Ordinary Shares upon the completion of the Initial Public Offering | ¥ 165,095 | ¥ 274,421 | ¥ (1) | ¥ 1 | ¥ 2 | ¥ 1 | ¥ 6 | ¥ 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 | 18,181,818 | (16,145,454) | 18,181,818 | 33,818,182 | 16,145,454 | 101,454,546 | ||||||||||||||||||||||||||||
Capital injection in a subsidiary from non controlling interest shareholder | 3,000 | 3,000 | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (11,782) | (11,782) | (11,782) | |||||||||||||||||||||||||||||||
Balances at Dec. 31, 2018 | 1,070,865 | ¥ 5 | ¥ 7 | 1,193,174 | (95,527) | (29,786) | 1,067,873 | 2,992 | ||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2018 | shares | 90,200,000 | 117,600,000 | 90,200,000 | 117,600,000 | ||||||||||||||||||||||||||||||
Net income (loss) | 293,830 | $ 42,206 | 292,170 | 292,170 | 1,660 | |||||||||||||||||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 43,168 | ¥ 43,168 | ¥ 43,168 | |||||||||||||||||||||||||||||||
Appropriation to statutory reserves | 1,047 | (1,047) | ||||||||||||||||||||||||||||||||
Securities converted into Ordinary Shares upon the completion of the Initial Public Offering | ¥ 1 | ¥ (1) | ||||||||||||||||||||||||||||||||
Securities have been converted into Ordinary Shares upon the completion of the Initial Public Offering (in shares) | shares | 6,750,000 | 6,750,000 | (6,750,000) | |||||||||||||||||||||||||||||||
Issuance of ordinary shares for exercised share options | 1,741 | 1,741 | 1,741 | |||||||||||||||||||||||||||||||
Issuance of ordinary shares for exercised share options (in shares) | shares | 1,494,732 | 1,494,732 | 1,494,732 | |||||||||||||||||||||||||||||||
Capital injection in a subsidiary from non controlling interest shareholder | 3,000 | 3,000 | ||||||||||||||||||||||||||||||||
Purchase of non-controlling interests | (2,196) | (196) | (196) | (2,000) | ||||||||||||||||||||||||||||||
Special dividends declared to ordinary shareholders | (46,602) | (46,602) | (46,602) | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 10,641 | 1,528 | 10,641 | 10,641 | ||||||||||||||||||||||||||||||
Balances at Dec. 31, 2019 | ¥ 1,374,447 | $ 197,428 | ¥ 6 | ¥ 6 | ¥ 1,192,332 | ¥ 195,596 | ¥ (19,145) | ¥ 1,368,795 | ¥ 5,652 | |||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2019 | shares | 98,444,732 | 110,850,000 | 98,444,732 | 110,850,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ 293,830 | $ 42,206 | ¥ 65,350 | ¥ 93,240 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 23,577 | 3,387 | 2,270 | 1,680 |
Inventory write-down | 15,661 | 2,250 | 1,059 | 81 |
Share-based compensation | 43,168 | 6,201 | 116,611 | 5,821 |
Allowance for doubtful accounts | 2,006 | 288 | 0 | |
Loss from disposal of property and equipment | 29 | 4 | 0 | |
Deferred income tax benefits | (7,042) | (1,012) | (2,186) | (801) |
Investment loss (income) | (4,654) | (669) | 364 | |
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable from third parties | (206,477) | (29,659) | (107,370) | (4,348) |
Accounts receivable from a related party | (446,963) | (64,202) | (11,436) | (204,527) |
Inventories | (201,701) | (28,973) | (182,342) | (26,577) |
Prepaid expenses and other current assets | (25,659) | (3,686) | (23,607) | (8,745) |
Other receivables from related parties | 88,376 | 12,694 | (87,384) | (25,771) |
Amounts due to related parties | 19,343 | 2,778 | 4,005 | 1,179 |
Interest received relating to the investment income recognized in previous year | 361 | 52 | 0 | |
Accounts and notes payable | 494,678 | 71,056 | 256,838 | 218,614 |
Advances from customers | 16,838 | 2,419 | 59,297 | 19,312 |
Income tax payables | 23,323 | 3,350 | (1,413) | 11,612 |
Accrued expenses and other liabilities | 122,550 | 17,603 | 132,213 | 43,136 |
Lease liabilities | (5,760) | (827) | 0 | |
Net cash provided by operating activities | 245,484 | 35,260 | 222,269 | 123,906 |
Cash flows from investing activities | ||||
Cash received from loan repayment from a related party | 0 | 31,441 | ||
Purchase of equipment | (56,131) | (8,063) | (13,505) | (1,234) |
Purchase of lease hold improvement | (7,874) | (1,131) | (216) | |
Purchase of intangible assets | (4,595) | (660) | (184) | |
Purchase of short-term investments | (812,086) | (116,649) | (238,714) | |
Maturity of short-term investments | 670,190 | 96,267 | 69,357 | |
Placement of short-term deposits | 270,457 | 38,849 | 0 | |
Maturities of short-term deposits | 211,967 | 30,447 | 0 | |
Proceeds from disposal of property and equipment | 30 | 4 | 0 | |
Net cash used in investing activities | (268,956) | (38,634) | (151,821) | (1,234) |
Cash flows from financing activities | ||||
Dividend Paid | (46,602) | (6,694) | 0 | |
Proceeds from exercise of vested share options | 1,109 | 159 | 0 | |
Receipt of borrowing | 95,868 | 13,771 | 0 | |
Repayment of debt to a related party | 0 | (31,900) | ||
Cash received from shareholders | 0 | 2,705 | 2,671 | |
Net proceeds from issuance of ordinary shares upon IPO | 0 | 636,170 | ||
Cash paid in relation to issuance of ordinary shares upon IPO | (2,637) | (379) | 0 | |
Capital injection in subsidiaries from non-controlling shareholders | 3,000 | 431 | 3,000 | |
Purchase of non-controlling interests | (2,196) | (315) | 0 | |
Cash paid to a related party | 0 | (5,000) | ||
Net cash provided by financing activities | 48,542 | 6,973 | 604,975 | 2,671 |
Effect of exchange rate changes on cash and cash equivalents | 8,087 | 1,162 | 14,473 | (2,321) |
Net increase in cash and cash equivalents and restricted cash | 33,157 | 4,761 | 689,896 | 123,022 |
Cash and cash equivalents and restricted cash at the beginning of the year | 969,848 | 139,312 | 279,952 | 156,930 |
Cash and cash equivalents and restricted cash at the end of the year | 1,003,005 | 144,073 | 969,848 | 279,952 |
Cash and cash equivalents at the end of the year | 972,438 | 139,682 | 940,298 | 279,952 |
Restricted cash at the end of the year | 30,567 | 4,391 | 29,550 | |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income tax | (28,909) | (4,012) | (27,660) | (3,907) |
Cash paid for interest expense | (995) | (143) | (768) | (1,785) |
Acquisition of equipment in form of other payable | ¥ 5,997 | $ 862 | ¥ 430 | ¥ 54 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
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 “VIEs” (collectively referred to as the “Group”) is primarily engaged in the operation of developing and selling Internet-of-things-enabled (“IoT-enabled”) smart home products in the People’s Republic of China (“the PRC”). (a) History and Reorganization The Group commenced its operations in May 2014 through Foshan Yunmi Electric Appliances Technology Co., Ltd. (“Foshan Viomi”), a PRC company established by Mr. Chen Xiaoping (“Mr. Chen” or the “Founder”), and Tianjin Jinxing Investment Co., Ltd. (“Tianjin Jinxing”), a subsidiary of Xiaomi Corporation (“Xiaomi”, also referring to entities controlled by Xiaomi Corporation where appropriate), who is an investor of the Company. Mr. Chen and Tianjin Jinxing invested RMB7,500 and RMB5,000 to establish Foshan Viomi and held 60% and 40% initial equity interests, respectively. Included in the RMB7,500 invested by Mr. Chen, RMB2,500 was invested by certain key management founders and held by Mr. Chen on their behalf (The key management founders, together with Mr. Chen are referred to “the Founders”). The Group has undertaken its reorganization (“Reorganization”) as detailed below. In January 2015, the Company was incorporated in the Cayman Islands, Viomi HK Technology Co., Limited (“Viomi HK”) was incorporated in Hong Kong as a wholly owned subsidiary of the Company, Beijing Yunmi Technology Co., Ltd. (“Beijing Viomi”) was set up as a domestic company. In May 2015, Lequan Technology Beijing Co., Ltd (“Lequan”) was incorporated as a wholly owned subsidiary of Viomi HK in the PRC. In July 2015, the Company issued 33,818,182 class A ordinary shares to exchange the interest of RMB2,500 in Foshan Viomi held by Mr. Chen on behalf of key management founders, 67,636,364 Class B redeemable convertible ordinary shares (Pre-IPO Class B Ordinary Shares) to exchange the interest of RMB5,000 in Foshan Viomi owned by Mr. Chen, and 67,636,364 Pre-IPO Class B Ordinary Shares to Red Better Limited (“Red Better”), a subsidiary of Xiaomi, and Shunwei Talent Limited (“Shunwei”), to exchange the interest of RMB5,000 held by Tianjin Jinxing. Concurrently, the Company obtained control over Foshan Viomi and Beijing Viomi through Lequan by entering into a series of contractual arrangements with Foshan Viomi, Beijing Viomi and their shareholders as detailed in note 1(c). As a result, Foshan Viomi and Beijing Viomi became the consolidated VIEs of the Group. The Reorganization lacks substance and should be treated as a non-substantive merger with no change in the basis of assets and liabilities of Foshan Viomi. In addition, the Company issued 18,181,818 Series A Preferred Shares at the issue price of US$1.1 per share to a group of investors for considerations of US$20,000, including conversion of the outstanding bridge loans of US$5,250, which was provided by the same investors during January 2015 to July 2015. The remaining consideration was fully received in cash. In June 2018, the Board of Directors and the shareholders approved a transfer and surrender of shares plan, pursuant to which, Mr. Chen, who holds 33,818,182 class A ordinary shares on behalf of certain key management founders through Viomi Limited, transferred 16,145,454 class A ordinary shares to key management founders and surrendered the remaining 17,672,728 class A ordinary shares to the Company. 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 income per share for the years ended December 31, 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, 2019, 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 Yunmi Hulian Technology (Guangdong) Co., Ltd. PRC December 9, 2019 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 Guangdong AI Touch Technology Co., Ltd. (“AI Touch”) PRC January 30, 2019 VIE’s subsidiary Home appliance development and sales (b) Dual Classes Ordinary Shares and Initial Public Offering On September 25, 2018, the Company completed its IPO on the NASDAQ Global Market in the United States of America. In this offering, 11,400,000 American Depositary Shares (“ADSs”), representing 34,200,000 Class A ordinary shares, were issued and sold to the public at a price of US$9.00 per ADS. Pursuant to 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 (‘‘Class A Ordinary Shares’’), (ii) 150,000,000 class B ordinary shares of a par value of US$0.00001 each (‘‘Class B Ordinary Shares’’) and (iii) 50,000,000 shares of a par value of US$0.00001 each of such class or classes (however designated) as the board of directors may determine in accordance with post-offering amended and restated memorandum and articles of association. In respect of all matters subject to a shareholder vote, each Class A ordinary share is entitled to one vote, and each Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. Upon any transfer of Class B Ordinary Shares by a holder to any person or entity other than holders of Class B Ordinary Shares or their affiliates, such Class B Ordinary Shares shall be automatically and immediately converted into the equivalent number of Class A Ordinary Shares. Immediately prior to the completion of the IPO, 16,145,454 issued Class A Ordinary Shares held by certain key management founders, 33,818,182 issued Pre-IPO Class B Ordinary Shares held by Red Better, and 67,636,364 issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (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. 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. 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 and 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 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. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) 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. 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 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) In addition, the other shareholder of Beijing Viomi is also a beneficial owner of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that the shareholders of the Foshan Viomi and Beijing Viomi may act contrary to the contractual arrangements, the Company, through Lequan, entered into a shareholder voting proxy agreement with all of the shareholders of Foshan Viomi and Beijing Viomi in July 2015. The shareholder voting proxy agreement with the shareholder of Foshan Viomi has been updated in September 2018 as Foshan Viomi reduced its registered capital and changed its shareholders from Mr. Chen and Tianjin Jinxing to Mr. Chen alone. In March 2019, the National People’s Congress enacted PRC Foreign Investment Law which would be effective starting from January 1, 2020. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment”, which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Existing laws or administrative regulations remain unclear whether the contractual arrangements with variable interest entities will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. However, the possibility that such entities will be deemed as foreign invested enterprise and subject to relevant restrictions in the future shall not be excluded. If variable interest entities fall within the definition of foreign investment entities, the Group's ability to use the contractual arrangements with its VIE and the Group's ability to conduct business through the VIE could be severely limited. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) 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 financial statements. All transactions and balances between the VIEs and the Group’s subsidiaries are eliminated in the financial information presented below: As of December 31, 2018 2019 RMB RMB Cash and cash equivalents 401,424 802,580 Restricted cash 29,550 30,567 Short-term deposits — 60,000 Short-term investments 168,993 141,189 Accounts receivable from third parties (net of allowance of nil and RMB2,006 as of December 31, 2018 and 2019, respectively) 111,718 316,189 Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) 260,984 707,947 Other receivable from related parties (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) 112,320 23,944 Inventories 231,975 418,015 Prepaid expenses and other current assets 46,499 61,031 Total current assets 1,363,463 2,561,462 Property, plant and equipment, net 11,301 67,293 Deferred tax assets 5,234 12,276 Intangible assets, net 169 4,357 Prepaid expenses and other non-current assets 3,636 11,170 Right-of-use assets, net — 19,593 Total non-current assets 20,340 114,689 Total assets 1,383,803 2,676,151 Accounts and notes payable 548,481 1,043,159 Advances from customers 86,312 103,150 Amounts due to related parties 5,763 25,106 Accrued expenses and other liabilities 179,712 308,228 Short-term borrowing — 95,868 Income tax payables 10,199 33,522 Lease liabilities due within one year — 6,802 Total current liabilities 830,467 1,615,835 Accrued expenses and other liabilities 518 1,795 Lease liabilities — 13,391 Total non-current liabilities 518 15,186 Total liabilities 830,985 1,631,021 Year ended December 31, 2017 2018 2019 RMB RMB RMB Revenue 873,083 2,561,229 4,647,513 Net income 92,159 70,232 285,221 Net cash provided by operating activities 123,182 209,690 240,823 Net cash used in investing activities (1,234 ) (183,262 ) (97,702 ) Net cash (used in) provided by financing activities — (37,731 ) 95,933 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 and the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and British Virgin Islands are United States dollar (“US$”), while the functional currency of the Group’s entities in the PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiary in Hong Kong and British Virgin Islands, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, and incomes are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange (losses) gains, net in the consolidated statement of comprehensive income. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (e) Convenience Translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2019 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB6.9618 on December 31, 2019 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2019, 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 deposits Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. ( i ) Short-term investments In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. (j ) 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) (k ) 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 turnover and age of the products. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive income. ( l ) 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 2-10 years 0%-5% Vehicle 4 years 5% Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. ( m ) 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 ( n ) Leases In February 2016, the Financial Accounting Standards Board (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 Company adopted the new standard using the optional transition method beginning January 1, 2019. As permitted under the transition guidance, the Company carried forward the assessment of whether the existing contracts contain or are leases, classification of the leases and remaining lease terms. RMB9,274 of lease assets and RMB9,168 of liabilities were recognized on the balance sheet upon adoption as of January 1, 2019. The Company categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessees to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( o ) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) and subsequently, the FASB issued several amendments which amend certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as “ASC 606”). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group will enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Group adopted ASC 606 for all periods presented. The Group’s revenue is 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) other household products as well as service fees from rendering of services. Refer to Note 12 to the consolidated financial statements for disaggregation of the Group’s revenue by type of product and service for the years ended December 31, 2017, 2018 and 2019. 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, 2017, 2018 and 2019: Year ended December 31, 2017 2018 2019 RMB RMB RMB Sales to Xiaomi 739,464 1,311,852 2,112,170 —Xiaomi-branded products 654,950 1,175,332 1,859,499 —Viomi-branded products 84,514 136,520 250,593 —Rendering services — — 2,078 Sales to third-party customers 133,755 1,249,377 2,535,343 873,219 2,561,229 4,647,513 a) Sales to Xiaomi 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, the Group is responsible for design, research, development, production and delivery of designated products using the brand name of “Xiaomi” (“Xiaomi-branded products”). Xiaomi is responsible for commercial distributions and sales. The Group also sells some Viomi-branded products to Xiaomi. Revenue is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue does not meet the criteria to be recognized over time since 1) even if the products use “Xiaomi” brand, it does not require significant rework to make them suitable to be sold to other customers, 2) under the cooperation agreement, the Group does not have the right of payment for the work performed to date. 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 certain portion of the future gross profits from commercial sales made by this customer. Accordingly, the Group determines the sales price as the fixed first installment payment plus the variable second installment payment to the extent that it is probable that revenue reversal will not occur when settling with the customer subsequently. The Group estimates the variable consideration using the expected value method. In assessing the variable second installment payment, the Group takes into consideration of the historical experience with the customer, selling price of the same or similar products as at the report date as well as the recent market trend. For the years ended December 31, 2017, 2018 and 2019, net revenues earned from second installment payment arrangement represented 15.0%, 9.0% and 5.9% of total revenue from Xiaomi, respectively. In 2019, the Group entered into a cooperation arrangement with Xiaomi related to a certain type of products. Under the arrangement, the Group acts as an agent of Xiaomi to procure suppliers without obtaining the control, risks and rewards of the products during the whole process. The Group recognizes revenue of sales on a net basis for these products. 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 designated Viomi-branded products without separate charge. The end customers have the right, not the obligation, to ask the Group to provide installation service. The installation service is considered being distinct and accounted for as a separate performance obligation as the products and installation services are not inputs into a combined item the end customer has contracted to receive. In addition, the Group does not provide any significant integration, modification, or customization services. It can fulfill its obligation to transfer each of the products or services separately. End customers do not always exercise their rights to ask for installation services as the installation may not be complicated and could be done by end customers themselves. Therefore, the Group expects to be entitled to a breakage amount in the contract liabilities related to installation services. The Group estimates the breakage portion based on historical customers’ requests and recognizes estimated breakage as revenue in proportion to the pattern of rights exercised by end customers. 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 started in 2018. As stipulated in the contracts, slow-moving goods are those unsold products after they are controlled by the e-commerce platforms for more than 30 days or 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 expected sales and inventory level of the e-commerce platforms, the Group assesses if it is probable there will be no significant reversal of cumulative revenue, and recognizes those sales as revenue. For the years ended December 31, 2018 and 2019, the expected sales return was RMB846 and RMB12,037. Accordingly the Group recognizes an expected return asset of RMB687 and RMB8,572, and a refund liability of RMB981 and RMB13,602 as of December 31, 2018 and 2019, respectively. The Group would update its estimate of expected returns at each period end. The expected return asset is presented and assessed for impairment separately from the refund liability. The Group would assess the expected return asset for impairment, and adjust the value of the asset if it becomes impaired Further, the Group might provide various consideration to the e-commerce platforms, such as gross margin guarantee, advertising and promotion fees, in the form of cash, or directly reducing amounts owed to the Group by the e-commerce platforms. The Group evaluates each type of incentives or fees to be paid in accordance with ASC 606. Considering that the Group either does not receive any service from the e-commerce platforms or cannot elect to engage another vendor to provide similar advertising services on a standalone basis, the Group reduces the transaction price for the sale of products by the amount of various consideration payable to the e-commerce platforms. - 7 days unconditional sales return Under the consumer protection law, end customers have an unconditional right to return the products purchased through online platforms within 7 days. The Group bases its estimates of sales return on historical results. For the years ended December 31, 2017, 2018 and 2019, the amount of sales return was insignificant. The Group may provide sales incentives in the forms of discounts to end customers through online platforms in a bundle transaction. Revenue, recognized on a net basis after such sales incentives, are allocated based on the relative standalone selling prices for respective products. 3 ) Warranty The Group offers product warranty pursuant to standard product quality required by consumer protection law. The warranty period is calculated starting from the date when products are sold to the end customers. The Group has the obligation, at the customer’s sole discretion, to either repair or replace the defective product. The customers cannot separately purchase the warranty and the warranty doesn’t provide the customer with additional service other than assurance that the product will function as expected. Therefore, these warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, an estimate of warranty expenses is recorded. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as cost of revenues. 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, 16% between May 1, 2018 and March 31, 2019, and 13% after April 1, 2019. 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. The amount of the allowance for doubtful accounts is recognized as expenses. The opening balance of accounts receivable from these key customers as of January 1, 2018 was RMB253,896. As of December 31, 2018 and 2019, accounts and notes receivable were RMB372,702 and RMB1,026,142, 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, 2018 was RMB146. As of December 31, 2018 and 2019, deferred revenue were RMB1,276 and RMB7,790 During the years ended December 31, 2017, 2018 and 2019, 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 RMB39,638, RMB130,796 and RMB106,540 for the years ended December 31, 2017, 2018 and 2019. The shipping expenses amounted to RMB20,044, RMB140,456 and RMB245,329 for the years ended December 31, 2017, 2018 and 2019. ( 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 tax refund and government grants received from local government authorities to encourage the Group’s technology and innovation. The Group records such government subsidies as other income in the consolidated statements of comprehensive income when it has fulfilled all of its obligation related to the subsidy. The Group recorded RMB1,278, RMB1,440 and RMB35,988 of subsidy income for the years ended December 31, 2017 , 2018 9 ( 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 RMB8,016, RMB18,889 and RMB23,465 for the years ended December 31, 2017 , 2018 2019 ( 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 (“Restricted 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 Pre-IPO Class B Ordinary Shares of the Company, which are redeemable convertible sh |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2019 | |
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. (b) Credit risk Financial instruments that potentially expose the Group to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, short-term deposits, accounts and notes receivable and amounts due from related parties. The Group places its cash and cash equivalents, restricted cash, short-term investments and short-term deposits with financial institutions with high credit ratings and quality. There has been no recent history of default in relation to these financial institutions and credit risk is immaterial. 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 and notes receivable from third parties concentration of credit risk as below: As of December 31, 2018 2019 RMB RMB Company A 58,766 53 % 174,620 55 % Company B 36,734 33 % 109,585 35 % 3. CONCENTRATION AND RISKS (Continued) (b) Credit risk (Continued) Accounts receivable from a related party concentration of credit risk as below: As of December 31, 2018 2019 RMB RMB Xiaomi 260,984 100% 707,947 100% Other receivables from related parties concentration of credit risk as below: As of December 31, 2018 2019 RMB RMB Xiaomi 112,320 100 % 23,944 100 % (c) Revenue concentration risk Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi 739,464 85 % 1,311,852 51 % 2,112,170 45 % The revenue generated from Xiaomi included sale of both Xiaomi-branded and Viomi-branded products. Revenue from sale of Viomi-branded products amounted to RMB84,514, RMB136,520 and RMB250,593 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 primarily consist of the following currencies: As of December 31, 2018 As of December 31, 2019 RMB RMB Amount equivalent Amount equivalent RMB 332,702 332,702 569,772 569,772 US$ 88,529 607,596 57,720 402,666 Total 940,298 972,438 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
RESTRICTED CASH | 5. As of December 31, 2018 and 2019, the Group held restricted cash of RMB29 and |
Short-Term Deposits
Short-Term Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Schedule Of Short Term Deposits [Abstract] | |
SHORT-TERM DEPOSITS | 6. SHORT-TERM DEPOSITS Short-term deposits balance as of December 31, 2018 and 2019 is primarily denominated in RMB. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Schedule Of Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 7 . SHORT-TERM INVESTMENTS Short-term investments represent structured deposits with maturities of less than one year. Short-term investments balance as of December 31, 2018 and 2019 is primarily denominated in the following currencies: As of December 31, 2018 As of December 31, 2019 RMB RMB Amount equivalent Amount equivalent US$ 10,049 68,971 25,087 175,012 RMB 100,022 100,022 141,189 141,189 Total 168,993 316,201 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 8 . INVENTORIES Inventories consisted of the followings: As of December 31, 2018 2019 RMB RMB Finished goods 136,494 232,671 Raw materials 95,481 185,344 Inventories 231,975 418,015 For the years ended December 31, 2017, 2018 and 2019, the Group recorded write-down of RMB81, RMB1,059 and RMB15,661 for obsolete inventories. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | 9 . PREPAID EXPENSES AND OTHER ASSETS As of December 31, 2018 2019 RMB RMB Advances to suppliers 23,549 43,175 Expected return assets 687 11,212 Other receivables 15,361 7,725 Lease hold improvement 206 6,825 Prepayment for equipment 3,430 4,345 Other current assets 7,293 202 Total 50,526 73,484 Less: non-current portion (3,636 ) (11,170 ) Prepaid expenses and other assets-current portion 46,890 62,314 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 10 . PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of December 31, 2018 2019 RMB RMB Computers and equipment 16,270 87,374 Vehicle 508 508 Total 16,778 87,882 Less: accumulated depreciation (5,477 ) (20,589) Property, plant and equipment, net 11,301 67,293 The Group had recorded depreciation expense of RMB1,680, RMB2,244 and RMB15,427 for the years ended December 31, 2017, 2018 and 2019, respectively. No impairment was recorded for the years ended December 31, 2017, 2018 and 2019. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 1 1 . ACCRUED EXPENSES AND OTHER LIABILITIES As of December 31, 2018 2019 RMB RMB Accrued payroll and welfare 39,700 69,269 Freight payable 50,680 63,084 Other tax payable 42,076 45,217 Product warranty 12,744 22,463 Installation fee payables 8,133 21,850 Marketing and promotion expenses 10,710 19,223 Refund liabilities 981 18,088 Professional fee payables 10,340 10,699 Deferred revenue 1,276 7,790 Other current liabilities 24,808 49,154 Total 201,448 326,837 Less: non-current portion (518 ) (1,795 ) Accrued expenses and other liabilities-current portion 200,930 325,042 Product warranty activities were as follows: Product Warranty RMB 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 Provided during the year 52,275 Utilized during the year (42,556 ) Balance at December 31, 2019 22,463 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE | 12 . REVENUE Year ended December 31 2017 2018 2019 RMB RMB RMB Sales of product - IoT-enabled smart home products 712,317 2,081,273 3,587,355 - Consumable products 87,500 141,940 265,844 - Other products 72,686 323,381 741,290 Total of sales of product 872,503 2,546,594 4,594,489 Rendering of services 716 14,635 53,024 Total 873,219 2,561,229 4,647,513 |
Income Tax Expenses
Income Tax Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSES | 13. 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 8.25% and 16.5% Hong Kong profit tax on its taxable income within HKD$2 million and beyond HKD$2 million respectively, generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The subsidiaries and VIEs of the Group in the PRC are subject to a uniform income tax rate of 25% for years presented except for the entity which was qualified to certified High and New Technology Enterprises (“HNTE”) that are entitled to a favorable statutory tax rate of 15%. According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deduction has been increased from 50% of the qualified research and development expenses to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“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, 2018 and 2019 are approximately RMB282,130 and RMB598,503, respectively. 8 2019 13 . INC OME TAX EXPENSES (Continued) Composition of income tax expense The current and deferred components of income taxes appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB Current tax expenses 15,519 26,247 52,232 Deferred tax benefit (801 ) (2,186 ) (7,042 ) Income tax expenses 14,718 24,061 45,190 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, 2017 2018 2019 RMB RMB RMB Income from operations in the PRC 106,868 93,910 321,090 Income (loss) from overseas entities 1,090 (4,499 ) 17,930 Income before income tax 107,958 89,411 339,020 Tax expense at PRC enterprise income tax rate of 25% 26,990 22,353 84,755 Income tax on tax holiday ( 1) (10,989 ) (9,632 ) (31,493 ) Tax effect of permanence differences ( 2) (2,640 ) (7,871 ) (12,147 ) Change in valuation allowance ( 3) 760 602 1,592 Effect of share-based compensation 873 17,492 6,475 Effect of income tax in jurisdictions other than the PRC (276 ) 1,117 (3,992 ) Income tax expenses 14,718 24,061 45,190 (1) The income tax on tax holidays represents the effect of preferential income tax rate that Foshan Viomi qualified as an HNTE is entitled to enjoy the beneficial tax rate of 15% for the three years ended December 31, 2017, 2018 and 2019. Foshan Viomi will need to re-apply for HNTE qualification renewal in 2022. (2) The permanent book-tax differences mainly consisted of R&D super deductions. ( 3 ) Valuation allowance for the years ended December 31, 2017, 2018 and 2019 are related to the deferred tax assets of certain group entities which reported loss. The Group believed that it is more likely than not that these the deferred tax assets of these entities will not be utilized. Therefore, valuation allowance has been provided. The per share effect of the tax holidays are as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB Net income per share effect – basic 0.53 0.22 0.13 Net income per share effect – diluted 0.41 0.20 0.13 1 3 . INC OME TAX 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, 2018 2019 RMB RMB Accrued expenses and others 4,616 9,245 Net operating loss carry forwards 1,560 3,511 Inventory write downs 421 1,497 Deferred income 191 1,169 Total deferred tax assets 6,788 15,422 Less: valuation allowance (1,554 ) (3,146 ) Deferred tax assets, net 5,234 12,276 Movement of valuation allowance Year ended December 31, 2017 2018 2019 RMB RMB RMB Balance at beginning of the year 192 952 1,554 Provided 760 602 1,592 Balance at end of the year 952 1,554 3,146 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, 2018 and 2019, 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, 2019 | |
Equity [Abstract] | |
ORDINARY SHARES | 14 . 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. 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. 14. ORDINARY SHARES (Continued) Pursuant to the resolution of the shareholders of the Company on August 23, 2018, the Company’s authorized share capital became US$50,000 divided into 5,000,000,000 shares comprising of the (i) 4,800,000,000 Class A Ordinary Shares of a par value of US$0.00001 each, (ii) 150,000,000 Class B Ordinary Shares of a par value of US$0.00001 each and (iii) 50,000,000 shares of a par value of US$0.00001 each of such class or classes (however designated) as the board of directors may determine in accordance with post-offering amended and restated memorandum and articles of association. Holders of Class A Ordinary Shares and Class B Ordinary Shares have the same rights, except for voting rights and conversion rights. Each Class A Ordinary Share is entitled to one vote, and each Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. Upon any transfer of Class B Ordinary Shares by a holder to any person or entity other than holders of Class B Ordinary Shares or their affiliates, such Class B Ordinary Shares shall be automatically and immediately converted into the equivalent number of Class A Ordinary Shares. Immediately prior to the completion of the IPO, 16,145,454 issued Upon the completion of the Company's IPO in 2018, 34,200,000 Class A Ordinary Shares were issued and 18,181,818 Series A Preferred Shares have been converted into Class A Ordinary Shares. As of December 31, 2018, the Company had 90,200,000 Class A Ordinary Shares and 117,600,000 Class B Ordinary Shares outstanding, respectively. During the year ended December 31, 2019, 1,494,732 Class A Ordinary Shares were issued for the exercised share options. In addition, 6,750,000 Class B Ordinary Shares were converted into Class A Ordinary Shares. As of December 31, 2019, the Company had 98,444,732 Class A Ordinary Shares and 110,850,000 Class B Ordinary Shares outstanding, respectively. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred and Pre-IPO Class B Ordinary Shares | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE CONVERTIBLE PREFERRED AND PRE-IPO CLASS B ORDINARY SHARES | 1 5 . REDEEMABLE CONVERTIBLE PREFERRED AND PRE-IPO CLASS B ORDINARY SHARES As described in note1 (a), pursuant to a shares purchase agreement, the Company issued Pre-IPO 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 Pre-IPO Class B Ordinary Shares issued by the Company are as follows: Conversion rights Optional Conversion Each holder of Series A Preferred Shares and Pre-IPO 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 Pre-IPO Class B Ordinary Shares into Class A Ordinary Shares at any time. The conversion rate for Series A Preferred Shares and Pre-IPO Class B Ordinary Shares shall be determined by dividing (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. 1 5 . REDEEMABLE CONVERTIBLE PREFERRED AND PRE-IPO CLASS B ORDINARY SHARES (Continued) (3) Adjustments for other distributions. (4) Adjustments for reclassification, exchange and substitution. Automatic Conversion Each Series A Preferred Share and Pre-IPO 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 Pre-IPO 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 Pre-IPO Class B Ordinary Shares to vote separately as a class with respect to any matters, the Series A Preferred Shares and Pre-IPO Class B Ordinary Shares shall vote separately as a class with respect to such matters. Otherwise, the holders of Series A Preferred Shares and Pre-IPO 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 Pre-IPO The Series A Preferred Shares and Pre-IPO 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 Pre-IPO 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 Pre-IPO Class B Ordinary Share shall be the sum of the Series A Preferred Shares and Pre-IPO 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 Pre-IPO 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 Pre-IPO 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 Pre-IPO Class B Ordinary Share issue price per share (as adjusted for any subdivisions, consolidations, bonus issues, reclassifications and the like) per annum on each Pre-IPO 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 Pre-IPO Class B Ordinary Shares shall also be entitled to receive any non-cash dividends declared by the Board on an as-converted basis. 1 5 . REDEEMABLE CONVERTIBLE PREFERRED AND PRE-IPO 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 Pre-IPO 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 Pre-IPO Class B Ordinary Share equal to (a) one hundred and fifty percent (150%) of the deemed Pre-IPO 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 Pre-IPO Class B Ordinary Shares, then the remaining assets of the Company shall be distributed ratably to the holders of the Pre-IPO 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 Pre-IPO 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 Pre-IPO Class B Ordinary Shares The Company classified the Series A Preferred Shares and Pre-IPO 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 Pre-IPO 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 Pre-IPO 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 Pre-IPO Class B Ordinary Shares to redeem the Pre-IPO Class B Ordinary Shares if there are no Qualified IPO after the fifth anniversary of the Closing Date. 1 5 . REDEEMABLE CONVERTIBLE PREFERRED AND PRE-IPO CLASS B ORDINARY SHARES (Continued) This transaction was considered as an extinguishment of the previous equity interests and therefore, the Pre-IPO 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 Pre-IPO Class B Ordinary Shares included in mezzanine equity for the years ended December 31, 2017 and 2018 are as follows: Series A Preferred Shares Pre-IPO Class B Ordinary Shares held by the Founder ( 1)(2) Pre-IPO Class B Ordinary Shares- owned by Xiaomi ( 1) Total RMB RMB RMB RMB Balance as of January 1, 2017 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 Pre- IPO 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 Pre-IPO 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, 2017 and 2018. (2) Out of the 67,636,364 Pre-IPO Class B Ordinary Shares held by the Founder, 50,727,273 Pre-IPO 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, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 16 . SHARE-BASED COMPENSATION Compensation expense recognized for share-based awards was as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB Share-based compensation expenses —Restricted shares owned by the Founder – equity component (a) 2,670 826 — —Restricted shares owned by the Founder – liability component (a) 286 212 — —Restricted shares owned by the Founder on behalf of certain key management founders (a) 48 14 — —Share options (b) 2,817 25,391 43,168 —Shares awarded to Mr. Chen (c) — 90,168 — Total share-based compensation expenses 5,821 116,611 43,168 16 . 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 Pre-IPO 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 2017 is higher than that of 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, 2017 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 unrecognized share-based compensation expenses related to these 5,918,182 shares have been recognized in the consolidated financial statements for the year ended December 31, 2018. The share-based compensation expenses recognized due to the acceleration of vesting is not material. 16 . SHARE-BASED COMPENSATION (Continued) The table below shows the details of the movement of liability-classified awards with respect to unsettled 33,818,182 restricted shares granted to the Founder for the years ended December 31, 2017 and 2018: Liability-classified Awards (RMB) Restricted Shares held by the Founder on his own behalf Balance as at January 1, 2017 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. As of December 31, 2019, the maximum of shares that may be issued under the 2018 Share Incentive Plan was 19,750,728. For the year ended December 31, 2017, the Company granted 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. For the year ended December 31, 2019, no share options were granted to employees. The Group calculated the estimated fair value of the options on the respective grant dates using the binomial option pricing model. Assumptions used to determine the fair value of share options granted during 2017 and 2018 are summarized in the following table: Year ended December 31, 2017 2018 Risk-free interest rate 3.06%-3.89% 3.62%~3.92% Expected volatility 47.02%-49.44% 45.51%~46.99% Expected life of option (years) 10 10 Expected dividend yield — — Fair value per ordinary share US$0.76-US$ 1.59 US$1.61-US$3.30 16 . 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 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. 16 . 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, 2017, 2018 and 2019 is included in the table below. Number of options Weighted average exercise price (US$) Weighted average remaining contractual life (years) Aggregate intrinsic value (US$) Outstanding at January 1, 2017 5,620,000 0.12 9.22 1,854 Granted 2,700,000 0.52 Forfeited (780,000 ) 0.27 Outstanding at December 31, 2017 7,540,000 0.25 8.65 3,697 Granted 6,130,000 0.64 Forfeited (410,000 ) 0.43 Outstanding at December 31, 2018 13,260,000 0.43 8.40 18,705 Forfeited (400,000 ) 0.96 Exercised (1,494,732 ) 0.17 Outstanding at December 31, 2019 11,365,268 0.44 7.59 17,737 Exercisable as of December 31, 2019 4,342,768 0.18 6.46 1,991 Expected to vest as of December 31, 2019 6,674,875 0.60 8.28 14,960 The weighted average grant date fair value of options granted for the years ended December 31, 2017 and 2018 was RMB6.01 (US$0.90) and RMB18.23 (US$2.66) per option, respectively. As of December 31, 2019, there was RMB47,024 of unrecognized compensation expenses related to the options. (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 Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 17. NET INCOME PER SHARE Basic net income per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period. Diluted net income per share is the amount of net income 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, 2017 and 2018, the Group has determined that its convertible redeemable Pre-IPO 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 Pre-IPO 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 income per share, for ordinary shares and preferred shares according to the participation rights in undistributed earnings. Year ended December 31, 2017 2018 2019 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 8,033 50,544 292,170 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 20,684,681 71,771,033 208,156,507 Dilutive effect of share options 4,895,125 7,819,747 7,699,070 Denominator for diluted calculation 25,579,806 79,590,780 215,855,577 Basic net income per ordinary share 0.39 0.70 1.40 Diluted net income per ordinary share 0.31 0.64 1.35 For the years ended December 31, 2017, 2018 and 2019, the following shares outstanding were excluded from the calculation of diluted net income per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. Year ended December 31, 2017 2018 2019 Shares issuable upon conversion of Restricted Shared owned the Founder 67,636,364 — — Shares issuable upon conversion of Pre-IPO Class B Ordinary Shares owned by Red Better and Shunwei 67,636,364 — — Shares issuable upon conversion of Series A Preferred shares 18,181,818 — — Shares issuable upon exercise of unvested Restricted Shares owned by the Founder on behalf of certain key management founders 13,079,391 — — |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 18 . RELATED PARTY TRANSACTIONS Name Relationship with the Group Mr. Chen Founder Xiaomi Shareholder of the Group Foshan Wanwuhulian Trade Co., Ltd. (“Foshan Wanwuhulian”) Controlled by the Founder 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 2019 with Xiaomi governs all the Group’s sales to Xiaomi. It will expire in November 2020, 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) In 2019, the Group has entered into cooperation arrangement with Xiaomi for a certain type of products under which the Group acts as the agent of Xiaomi. The Group charges Xiaomi with reference to market price. Youpin commission sales agreement The Group has entered into a commission sales agreement with Xiaomi for the sale of the Group’s own branded products on a E-platform operated by Xiaomi, namely Youpin. The commission sales agreement will expire on December 31, 2019 and has been renewed up to December 31, 2020. 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 11% 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. 18 . RELATED PARTY TRANSACTIONS (Continued) (1) Amount due from/to related parties As of December 31, 2018 2019 RMB RMB Accounts receivable from a related party: Xiaomi (a) 260,984 707,947 Other receivables from related parties: Sales receivable from Xiaomi (b ) 112,320 23,908 Other receivables from Xiaomi — 36 Total 112,320 23,944 Amounts due to related parties: Advertising and promotion expenses payable to Xiaomi ( c ) 1,887 12,919 Purchase payable to Xiaomi (a) 3,876 12,187 Total 5,763 25,106 (2) Purchase from related parties Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (a) 1,685 18,235 43,037 Foshan Wanwuhulian (d ) — — 15,422 Total 1,685 18,235 58,459 (3) Revenue from a related party Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (a) 739,464 1,311,852 2,112,170 (4) Selling and marketing expenses Year ended December 31, 2017 2018 2019 RMB RMB RMB Commission expenses charged by Xiaomi (b ) 3,327 20,824 58,874 Advertising and promotion expenses charged by Xiaomi (c ) — 3,774 22,977 Total 3,327 24,598 81,851 (5) Interest expenses Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (e ) 1,761 440 — 18 . RELATED PARTY TRANSACTIONS (Continued) (6) Interest income Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (f ) 490 107 — (a) Foshan Viomi both sells water purifier and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi. The amount due from Xiaomi represents receivable arising from sales of water purifier and other products. The balance due to Xiaomi represents payable arising from purchase of Xiaomi branded products and certain raw materials. (b) Foshan Viomi sells its own brand products on the E-platform of Xiaomi, which charges Foshan Viomi commission and technical service fees. The amount due from Xiaomi represents sales receivable net of commission (c) Foshan Viomi sells its own brand products on the E-platform of Xiaomi, which provides advertising and promotion service. The amount due to Xiaomi represents payable arising from advertising and promotion service. (d) Foshan Viomi purchases products from Foshan Wanwuhulian for trading during the year ended December 31, 2019. (e) Interest expense represents the expense of a loan provided by Xiaomi. 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. (f) Interest income represents interest from a loan provided to Xiaomi. 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 19 . FAIR VALUE MEASUREMENTS Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. 19. FAIR VALUE MEASUREMENTS (Continued) The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The Group did not have any other financial instruments that were required to be measured at fair value on a recurring basis as of December 31, 2018 and 2019 except for short-term investments (Note 7). 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 and 2019: Level 1 Level 2 Level 3 Total As of December 31, 2019 Short-term investments (i) — 316,201 — 316,201 As of December 31, 2018 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, short-term deposits, accounts and notes receivable, other receivables, amounts due to/from related parties, accounts and notes payable and certain accrued expenses. They are recorded at cost which approximates fair value. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | 20. LEASES Our operating leases are principally for office space, facilities and self-run offline stores. At December 31, 2019, our operating leases had a weighted average discount rate of 4.75% and a weighted-average remaining lease term of 2.4 years. The components of our lease expense were as follows: Year ended December 31, 2019 Lease cost Operating lease expense 7,434 Short-term lease expense (i) 798 Total lease cost 8,232 (i) Includes leases with a term of one year or less. Supplemental cash flow information for our leases was as follows: Year ended December 31, 2019 Operating cash flows relating to operating leases 7,553 Lease liabilities arising from obtaining right-of-use assets 17,427 20. LEASES (Continued) At December 31, 2019, the aggregate future minimum rental payments under non-cancelable agreement were as follows: Rental RMB 2020 7,189 2021 5,985 2022 5,519 2023 3,511 Total future minimum rental payment 22,204 Less amount representing imputed interest (1,820 ) Present value of future minimum rental payments 20,384 Less current portion, recorded in other current liabilities (6,993 ) Long-term lease liabilities, recorded in other long-term liabilities 13,391 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 21 . COMMITMENTS AND CONTINGENCIES (a) Operating commitments 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 The operating commitments as of December 31, 2018 presented above mainly consist of non-cancelable operating lease commitments. As of December 31, 2019, future minimum commitments under non-cancelable agreements were as follows: Rental RMB 2020 1,351 2021 1,827 2022 1,876 2023 and after 681 5,735 The operating commitments as of December 31, 2019 presented above mainly consist of the short-term lease commitments and leases that have not yet commenced but that create significant rights and obligations for the Company, which are not included in operating lease right-of–use assets and lease liabilities. 21 . COMMITMENTS AND CONTINGENCIES (Continued) (b) Capital and other commitment As of December 31, 2019, the Group had no outstanding capital commitments. (c) Legal proceedings From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the Group’s financial position and results of operations for the periods in which the unfavorable outcome occurs. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 2 2 . SUBSEQUENT EVENTS The recent COVID-19 outbreak has created unique global and industry-wide challenges, including challenges to the Company’s business, impacting supply chains, logistics, sales channels, as well as overall consumer sentiment and purchasing behavior. In early-2020, the COVID-19 outbreak resulted in the temporary closure of many corporate offices, retail stores, and manufacturing facilities across China. Given the strict quarantine measures put in place during this period, normal economic activity throughout China was sharply curtailed and opportunities for discretionary consumption, especially in offline sales channels, were extremely limited during the period. Our contract manufacturers’ operations were disrupted during this period, which in turn adversely affected our business and results of operations. Many of the quarantine measures within China have since been relaxed as of the date of the issuance of the consolidated financial statements, and the Company, together with its suppliers and customers, have gradually resumed normal operations in mid-February 2020. Although the Company has seen noticeable improvements in late-March and early-April, both from a supply and demand perspective, the impact of COVID-19 is expected to have a negative impact on the Company’s near-term financial results for the first quarter of 2020, including but not limited to revenue growth and reduced profit margins, as a result of the ongoing challenging industry conditions, supply chain bottlenecks and operational disruptions. In addition, the longer-term trajectory of COVID-19, both in terms scope and intensity of the outbreak, in China as well as globally, together with its impact on the industry and the broader economy and the Company's future results of operations, cash flows or financial conditions for the remainder of fiscal year 2020 are still difficult to assess or predict at this time and face significant uncertainties that will be difficult to quantify. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Restricted Net Assets | 2 3 . 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 RMB13,750 and RMB31,395 as of December 31, 2018 and 2019. 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, 2019, 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, 2019 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, 2019 | |
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 and the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. |
Foreign currency translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and British Virgin Islands are United States dollar (“US$”), while the functional currency of the Group’s entities in the PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiary in Hong Kong and British Virgin Islands, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, and incomes are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange (losses) gains, net in the consolidated statement of comprehensive income. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Convenience Translation | (e) Convenience Translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2019 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB6.9618 on December 31, 2019 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2019, 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 deposits | (h) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. |
Short-term investments | ( i ) Short-term investments In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts receivable | (j ) Accounts receivable Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. 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) (k ) 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 turnover and age of the products. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive income. |
Property, plant and equipment, net | ( l ) 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 2-10 years 0%-5% Vehicle 4 years 5% Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. |
Intangible assets | ( m ) 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 | ( n ) Leases In February 2016, the Financial Accounting Standards Board (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 Company adopted the new standard using the optional transition method beginning January 1, 2019. As permitted under the transition guidance, the Company carried forward the assessment of whether the existing contracts contain or are leases, classification of the leases and remaining lease terms. RMB9,274 of lease assets and RMB9,168 of liabilities were recognized on the balance sheet upon adoption as of January 1, 2019. The Company categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessees to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. |
Revenue recognition | ( o ) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) and subsequently, the FASB issued several amendments which amend certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as “ASC 606”). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group will enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Group adopted ASC 606 for all periods presented. The Group’s revenue is 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) other household products as well as service fees from rendering of services. Refer to Note 12 to the consolidated financial statements for disaggregation of the Group’s revenue by type of product and service for the years ended December 31, 2017, 2018 and 2019. 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, 2017, 2018 and 2019: Year ended December 31, 2017 2018 2019 RMB RMB RMB Sales to Xiaomi 739,464 1,311,852 2,112,170 —Xiaomi-branded products 654,950 1,175,332 1,859,499 —Viomi-branded products 84,514 136,520 250,593 —Rendering services — — 2,078 Sales to third-party customers 133,755 1,249,377 2,535,343 873,219 2,561,229 4,647,513 a) Sales to Xiaomi 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, the Group is responsible for design, research, development, production and delivery of designated products using the brand name of “Xiaomi” (“Xiaomi-branded products”). Xiaomi is responsible for commercial distributions and sales. The Group also sells some Viomi-branded products to Xiaomi. Revenue is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue does not meet the criteria to be recognized over time since 1) even if the products use “Xiaomi” brand, it does not require significant rework to make them suitable to be sold to other customers, 2) under the cooperation agreement, the Group does not have the right of payment for the work performed to date. 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 certain portion of the future gross profits from commercial sales made by this customer. Accordingly, the Group determines the sales price as the fixed first installment payment plus the variable second installment payment to the extent that it is probable that revenue reversal will not occur when settling with the customer subsequently. The Group estimates the variable consideration using the expected value method. In assessing the variable second installment payment, the Group takes into consideration of the historical experience with the customer, selling price of the same or similar products as at the report date as well as the recent market trend. For the years ended December 31, 2017, 2018 and 2019, net revenues earned from second installment payment arrangement represented 15.0%, 9.0% and 5.9% of total revenue from Xiaomi, respectively. In 2019, the Group entered into a cooperation arrangement with Xiaomi related to a certain type of products. Under the arrangement, the Group acts as an agent of Xiaomi to procure suppliers without obtaining the control, risks and rewards of the products during the whole process. The Group recognizes revenue of sales on a net basis for these products. 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 designated Viomi-branded products without separate charge. The end customers have the right, not the obligation, to ask the Group to provide installation service. The installation service is considered being distinct and accounted for as a separate performance obligation as the products and installation services are not inputs into a combined item the end customer has contracted to receive. In addition, the Group does not provide any significant integration, modification, or customization services. It can fulfill its obligation to transfer each of the products or services separately. End customers do not always exercise their rights to ask for installation services as the installation may not be complicated and could be done by end customers themselves. Therefore, the Group expects to be entitled to a breakage amount in the contract liabilities related to installation services. The Group estimates the breakage portion based on historical customers’ requests and recognizes estimated breakage as revenue in proportion to the pattern of rights exercised by end customers. 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 started in 2018. As stipulated in the contracts, slow-moving goods are those unsold products after they are controlled by the e-commerce platforms for more than 30 days or 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 expected sales and inventory level of the e-commerce platforms, the Group assesses if it is probable there will be no significant reversal of cumulative revenue, and recognizes those sales as revenue. For the years ended December 31, 2018 and 2019, the expected sales return was RMB846 and RMB12,037. Accordingly the Group recognizes an expected return asset of RMB687 and RMB8,572, and a refund liability of RMB981 and RMB13,602 as of December 31, 2018 and 2019, respectively. The Group would update its estimate of expected returns at each period end. The expected return asset is presented and assessed for impairment separately from the refund liability. The Group would assess the expected return asset for impairment, and adjust the value of the asset if it becomes impaired Further, the Group might provide various consideration to the e-commerce platforms, such as gross margin guarantee, advertising and promotion fees, in the form of cash, or directly reducing amounts owed to the Group by the e-commerce platforms. The Group evaluates each type of incentives or fees to be paid in accordance with ASC 606. Considering that the Group either does not receive any service from the e-commerce platforms or cannot elect to engage another vendor to provide similar advertising services on a standalone basis, the Group reduces the transaction price for the sale of products by the amount of various consideration payable to the e-commerce platforms. - 7 days unconditional sales return Under the consumer protection law, end customers have an unconditional right to return the products purchased through online platforms within 7 days. The Group bases its estimates of sales return on historical results. For the years ended December 31, 2017, 2018 and 2019, the amount of sales return was insignificant. The Group may provide sales incentives in the forms of discounts to end customers through online platforms in a bundle transaction. Revenue, recognized on a net basis after such sales incentives, are allocated based on the relative standalone selling prices for respective products. 3 ) Warranty The Group offers product warranty pursuant to standard product quality required by consumer protection law. The warranty period is calculated starting from the date when products are sold to the end customers. The Group has the obligation, at the customer’s sole discretion, to either repair or replace the defective product. The customers cannot separately purchase the warranty and the warranty doesn’t provide the customer with additional service other than assurance that the product will function as expected. Therefore, these warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, an estimate of warranty expenses is recorded. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as cost of revenues. 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, 16% between May 1, 2018 and March 31, 2019, and 13% after April 1, 2019. 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. The amount of the allowance for doubtful accounts is recognized as expenses. The opening balance of accounts receivable from these key customers as of January 1, 2018 was RMB253,896. As of December 31, 2018 and 2019, accounts and notes receivable were RMB372,702 and RMB1,026,142, 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, 2018 was RMB146. As of December 31, 2018 and 2019, deferred revenue were RMB1,276 and RMB7,790 During the years ended December 31, 2017, 2018 and 2019, 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 RMB39,638, RMB130,796 and RMB106,540 for the years ended December 31, 2017, 2018 and 2019. The shipping expenses amounted to RMB20,044, RMB140,456 and RMB245,329 for the years ended December 31, 2017, 2018 and 2019. |
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 tax refund and government grants received from local government authorities to encourage the Group’s technology and innovation. The Group records such government subsidies as other income in the consolidated statements of comprehensive income when it has fulfilled all of its obligation related to the subsidy. The Group recorded RMB1,278, RMB1,440 and RMB35,988 of subsidy income for the years ended December 31, 2017 , 2018 9 |
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 RMB8,016, RMB18,889 and RMB23,465 for the years ended December 31, 2017 , 2018 2019 |
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 (“Restricted 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 Pre-IPO Class B Ordinary Shares of the Company, which are redeemable convertible shares. These awards have been reclassified as liability classified awards as the underlying Pre-IPO 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 Pre-IPO 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 Pre-IPO Class B Ordinary Shares, until the award is settled. The liability award is considered settled only upon redemption or IPO, when the Pre-IPO 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 the Pre-IPO Class B Ordinary Shares were converted into Class B Ordinary Shares, the liability award had been settled. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (v) Share-based compensation (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 income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Group did not recognize any interest and penalties associated with uncertain tax positions for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2018 and 2019, the Group did not have any significant unrecognized uncertain tax positions. |
Comprehensive income | ( x ) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income, net of tax. Other comprehensive income refers to revenue, expenses, and gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The Group’s other comprehensive income consists of foreign currency translation adjustments from its entities not using the RMB as their functional currency. Comprehensive income is reported in the consolidated statements of comprehensive income. |
Statutory reserves | ( 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) (y) Statutory reserves (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. During the year ended December 31, 2017, 2018 and 2019, appropriations to statutory reserve funds amounted to RMB6,250, nil and RMB1,047, respectively. Statutory reserve funds amounting to RMB6,250 and RMB7,297 were recognized in additional paid-in capital as of December 31, 2018 and 2019, respectively. |
Income per share | ( z ) Income per share Basic income per share is computed by dividing net income attributable to ordinary shareholders, considering the accretion of redemption feature and cumulative dividend related to the Company’s redeemable convertible preferred shares and Pre-IPO Class B Ordinary Shares, and undistributed earnings allocated to redeemable convertible preferred shares, Pre-IPO 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 income per ordinary share are computed on Class A ordinary shares and Class B Ordinary Shares together, because both classes have the same dividend rights in the Company’s undistributed net income. Diluted income per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of the redeemable convertible preferred and Pre-IPO 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 income per share calculation when inclusion of such shares 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. |
Recently issued accounting pronouncements | ( cc ) Recently issued accounting pronouncements 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. The Company will adopt the new standard in the first fiscal quarter of 2020. Based on management’s assessment, the adoption of ASU 2016-13 does not have a material impact on 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 that the adoption of ASU 2018-13 will 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, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Principal Subsidiaries and VIEs | As of December 31, 2019, 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 Yunmi Hulian Technology (Guangdong) Co., Ltd. PRC December 9, 2019 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 Guangdong AI Touch Technology Co., Ltd. (“AI Touch”) PRC January 30, 2019 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 financial statements. All transactions and balances between the VIEs and the Group’s subsidiaries are eliminated in the financial information presented below: As of December 31, 2018 2019 RMB RMB Cash and cash equivalents 401,424 802,580 Restricted cash 29,550 30,567 Short-term deposits — 60,000 Short-term investments 168,993 141,189 Accounts receivable from third parties (net of allowance of nil and RMB2,006 as of December 31, 2018 and 2019, respectively) 111,718 316,189 Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) 260,984 707,947 Other receivable from related parties (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) 112,320 23,944 Inventories 231,975 418,015 Prepaid expenses and other current assets 46,499 61,031 Total current assets 1,363,463 2,561,462 Property, plant and equipment, net 11,301 67,293 Deferred tax assets 5,234 12,276 Intangible assets, net 169 4,357 Prepaid expenses and other non-current assets 3,636 11,170 Right-of-use assets, net — 19,593 Total non-current assets 20,340 114,689 Total assets 1,383,803 2,676,151 Accounts and notes payable 548,481 1,043,159 Advances from customers 86,312 103,150 Amounts due to related parties 5,763 25,106 Accrued expenses and other liabilities 179,712 308,228 Short-term borrowing — 95,868 Income tax payables 10,199 33,522 Lease liabilities due within one year — 6,802 Total current liabilities 830,467 1,615,835 Accrued expenses and other liabilities 518 1,795 Lease liabilities — 13,391 Total non-current liabilities 518 15,186 Total liabilities 830,985 1,631,021 Year ended December 31, 2017 2018 2019 RMB RMB RMB Revenue 873,083 2,561,229 4,647,513 Net income 92,159 70,232 285,221 Net cash provided by operating activities 123,182 209,690 240,823 Net cash used in investing activities (1,234 ) (183,262 ) (97,702 ) Net cash (used in) provided by financing activities — (37,731 ) 95,933 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2-10 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, 2017, 2018 and 2019: Year ended December 31, 2017 2018 2019 RMB RMB RMB Sales to Xiaomi 739,464 1,311,852 2,112,170 —Xiaomi-branded products 654,950 1,175,332 1,859,499 —Viomi-branded products 84,514 136,520 250,593 —Rendering services — — 2,078 Sales to third-party customers 133,755 1,249,377 2,535,343 873,219 2,561,229 4,647,513 |
Concentration and Risks (Tables
Concentration and Risks (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Credit Risk | |
Concentration Risk [Line Items] | |
Summary of Concentration of Risk | Accounts and notes receivable from third parties concentration of credit risk as below: As of December 31, 2018 2019 RMB RMB Company A 58,766 53 % 174,620 55 % Company B 36,734 33 % 109,585 35 % Accounts receivable from a related party concentration of credit risk as below: As of December 31, 2018 2019 RMB RMB Xiaomi 260,984 100% 707,947 100% Other receivables from related parties concentration of credit risk as below: As of December 31, 2018 2019 RMB RMB Xiaomi 112,320 100 % 23,944 100 % |
Revenue Concentration Risk | |
Concentration Risk [Line Items] | |
Summary of Concentration of Risk | Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi 739,464 85 % 1,311,852 51 % 2,112,170 45 % |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 primarily consist of the following currencies: As of December 31, 2018 As of December 31, 2019 RMB RMB Amount equivalent Amount equivalent RMB 332,702 332,702 569,772 569,772 US$ 88,529 607,596 57,720 402,666 Total 940,298 972,438 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule Of Investments [Abstract] | |
Schedule of Short-Term Investments Balance | Short-term investments represent structured deposits with maturities of less than one year. Short-term investments balance as of December 31, 2018 and 2019 is primarily denominated in the following currencies: As of December 31, 2018 As of December 31, 2019 RMB RMB Amount equivalent Amount equivalent US$ 10,049 68,971 25,087 175,012 RMB 100,022 100,022 141,189 141,189 Total 168,993 316,201 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the followings: As of December 31, 2018 2019 RMB RMB Finished goods 136,494 232,671 Raw materials 95,481 185,344 Inventories 231,975 418,015 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | As of December 31, 2018 2019 RMB RMB Advances to suppliers 23,549 43,175 Expected return assets 687 11,212 Other receivables 15,361 7,725 Lease hold improvement 206 6,825 Prepayment for equipment 3,430 4,345 Other current assets 7,293 202 Total 50,526 73,484 Less: non-current portion (3,636 ) (11,170 ) Prepaid expenses and other assets-current portion 46,890 62,314 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 2019 RMB RMB Computers and equipment 16,270 87,374 Vehicle 508 508 Total 16,778 87,882 Less: accumulated depreciation (5,477 ) (20,589) Property, plant and equipment, net 11,301 67,293 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | As of December 31, 2018 2019 RMB RMB Accrued payroll and welfare 39,700 69,269 Freight payable 50,680 63,084 Other tax payable 42,076 45,217 Product warranty 12,744 22,463 Installation fee payables 8,133 21,850 Marketing and promotion expenses 10,710 19,223 Refund liabilities 981 18,088 Professional fee payables 10,340 10,699 Deferred revenue 1,276 7,790 Other current liabilities 24,808 49,154 Total 201,448 326,837 Less: non-current portion (518 ) (1,795 ) Accrued expenses and other liabilities-current portion 200,930 325,042 |
Schedule of Product Warranty Activities | Product warranty activities were as follows: Product Warranty RMB 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 Provided during the year 52,275 Utilized during the year (42,556 ) Balance at December 31, 2019 22,463 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue | Year ended December 31 2017 2018 2019 RMB RMB RMB Sales of product - IoT-enabled smart home products 712,317 2,081,273 3,587,355 - Consumable products 87,500 141,940 265,844 - Other products 72,686 323,381 741,290 Total of sales of product 872,503 2,546,594 4,594,489 Rendering of services 716 14,635 53,024 Total 873,219 2,561,229 4,647,513 |
Income Tax Expenses (Tables)
Income Tax Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 income are as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB Current tax expenses 15,519 26,247 52,232 Deferred tax benefit (801 ) (2,186 ) (7,042 ) Income tax expenses 14,718 24,061 45,190 |
Reconciliation between Income Tax Expenses Computed by Applying PRC Enterprise Tax Rate Before Income Taxes and Actual Provision | 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, 2017 2018 2019 RMB RMB RMB Income from operations in the PRC 106,868 93,910 321,090 Income (loss) from overseas entities 1,090 (4,499 ) 17,930 Income before income tax 107,958 89,411 339,020 Tax expense at PRC enterprise income tax rate of 25% 26,990 22,353 84,755 Income tax on tax holiday ( 1) (10,989 ) (9,632 ) (31,493 ) Tax effect of permanence differences ( 2) (2,640 ) (7,871 ) (12,147 ) Change in valuation allowance ( 3) 760 602 1,592 Effect of share-based compensation 873 17,492 6,475 Effect of income tax in jurisdictions other than the PRC (276 ) 1,117 (3,992 ) Income tax expenses 14,718 24,061 45,190 (1) The income tax on tax holidays represents the effect of preferential income tax rate that Foshan Viomi qualified as an HNTE is entitled to enjoy the beneficial tax rate of 15% for the three years ended December 31, 2017, 2018 and 2019. Foshan Viomi will need to re-apply for HNTE qualification renewal in 2022. (2) The permanent book-tax differences mainly consisted of R&D super deductions. ( 3 ) Valuation allowance for the years ended December 31, 2017, 2018 and 2019 are related to the deferred tax assets of certain group entities which reported loss. The Group believed that it is more likely than not that these the deferred tax assets of these entities will not be utilized. Therefore, valuation allowance has been provided. |
Per Share Effect of Tax Holidays | The per share effect of the tax holidays are as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB Net income per share effect – basic 0.53 0.22 0.13 Net income per share effect – diluted 0.41 0.20 0.13 |
Significant Components of Deferred Tax Assets | The significant components of the Group’s deferred tax assets were as follows: As of December 31, 2018 2019 RMB RMB Accrued expenses and others 4,616 9,245 Net operating loss carry forwards 1,560 3,511 Inventory write downs 421 1,497 Deferred income 191 1,169 Total deferred tax assets 6,788 15,422 Less: valuation allowance (1,554 ) (3,146 ) Deferred tax assets, net 5,234 12,276 |
Movement of Valuation Allowance | Movement of valuation allowance Year ended December 31, 2017 2018 2019 RMB RMB RMB Balance at beginning of the year 192 952 1,554 Provided 760 602 1,592 Balance at end of the year 952 1,554 3,146 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred and Pre-IPO Class B Ordinary Shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Change Balance of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares | The change in the balance of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares included in mezzanine equity for the years ended December 31, 2017 and 2018 are as follows: Series A Preferred Shares Pre-IPO Class B Ordinary Shares held by the Founder ( 1)(2) Pre-IPO Class B Ordinary Shares- owned by Xiaomi ( 1) Total RMB RMB RMB RMB Balance as of January 1, 2017 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 Pre- IPO 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 Pre-IPO 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, 2017 and 2018. (2) Out of the 67,636,364 Pre-IPO Class B Ordinary Shares held by the Founder, 50,727,273 Pre-IPO 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, 2019 | |
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, 2017 2018 2019 RMB RMB RMB Share-based compensation expenses —Restricted shares owned by the Founder – equity component (a) 2,670 826 — —Restricted shares owned by the Founder – liability component (a) 286 212 — —Restricted shares owned by the Founder on behalf of certain key management founders (a) 48 14 — —Share options (b) 2,817 25,391 43,168 —Shares awarded to Mr. Chen (c) — 90,168 — Total share-based compensation expenses 5,821 116,611 43,168 |
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, 2017 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 unrecognized share-based compensation expenses related to these 5,918,182 shares have been recognized in the consolidated financial statements for the year ended December 31, 2018. The share-based compensation expenses recognized due to the acceleration of vesting is not material. |
Schedule of Movement of Liability Awards with Respect to Unsettled Restricted Shares Granted | 16 . SHARE-BASED COMPENSATION (Continued) The table below shows the details of the movement of liability-classified awards with respect to unsettled 33,818,182 restricted shares granted to the Founder for the years ended December 31, 2017 and 2018: Liability-classified Awards (RMB) Restricted Shares held by the Founder on his own behalf Balance as at January 1, 2017 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 2017 and 2018 are summarized in the following table: Year ended December 31, 2017 2018 Risk-free interest rate 3.06%-3.89% 3.62%~3.92% Expected volatility 47.02%-49.44% 45.51%~46.99% Expected life of option (years) 10 10 Expected dividend yield — — Fair value per ordinary share US$0.76-US$ 1.59 US$1.61-US$3.30 |
Summary of Stock Option Activity | 16 . SHARE-BASED COMPENSATION (Continued) A summary of the stock option activity under the 2015 and 2018 Share Incentive Plan for the years ended December 31, 2017, 2018 and 2019 is included in the table below. Number of options Weighted average exercise price (US$) Weighted average remaining contractual life (years) Aggregate intrinsic value (US$) Outstanding at January 1, 2017 5,620,000 0.12 9.22 1,854 Granted 2,700,000 0.52 Forfeited (780,000 ) 0.27 Outstanding at December 31, 2017 7,540,000 0.25 8.65 3,697 Granted 6,130,000 0.64 Forfeited (410,000 ) 0.43 Outstanding at December 31, 2018 13,260,000 0.43 8.40 18,705 Forfeited (400,000 ) 0.96 Exercised (1,494,732 ) 0.17 Outstanding at December 31, 2019 11,365,268 0.44 7.59 17,737 Exercisable as of December 31, 2019 4,342,768 0.18 6.46 1,991 Expected to vest as of December 31, 2019 6,674,875 0.60 8.28 14,960 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share, Basic and Diluted | Accordingly, the Group uses the two-class method of computing net income per share, for ordinary shares and preferred shares according to the participation rights in undistributed earnings. Year ended December 31, 2017 2018 2019 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 8,033 50,544 292,170 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 20,684,681 71,771,033 208,156,507 Dilutive effect of share options 4,895,125 7,819,747 7,699,070 Denominator for diluted calculation 25,579,806 79,590,780 215,855,577 Basic net income per ordinary share 0.39 0.70 1.40 Diluted net income per ordinary share 0.31 0.64 1.35 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | For the years ended December 31, 2017, 2018 and 2019, the following shares outstanding were excluded from the calculation of diluted net income per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. Year ended December 31, 2017 2018 2019 Shares issuable upon conversion of Restricted Shared owned the Founder 67,636,364 — — Shares issuable upon conversion of Pre-IPO Class B Ordinary Shares owned by Red Better and Shunwei 67,636,364 — — Shares issuable upon conversion of Series A Preferred shares 18,181,818 — — Shares issuable upon exercise of unvested Restricted Shares owned by the Founder on behalf of certain key management founders 13,079,391 — — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transaction Relationship | Name Relationship with the Group Mr. Chen Founder Xiaomi Shareholder of the Group Foshan Wanwuhulian Trade Co., Ltd. (“Foshan Wanwuhulian”) Controlled by the Founder |
Schedule of Related Party Transactions | (1) Amount due from/to related parties As of December 31, 2018 2019 RMB RMB Accounts receivable from a related party: Xiaomi (a) 260,984 707,947 Other receivables from related parties: Sales receivable from Xiaomi (b ) 112,320 23,908 Other receivables from Xiaomi — 36 Total 112,320 23,944 Amounts due to related parties: Advertising and promotion expenses payable to Xiaomi ( c ) 1,887 12,919 Purchase payable to Xiaomi (a) 3,876 12,187 Total 5,763 25,106 (2) Purchase from related parties Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (a) 1,685 18,235 43,037 Foshan Wanwuhulian (d ) — — 15,422 Total 1,685 18,235 58,459 (3) Revenue from a related party Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (a) 739,464 1,311,852 2,112,170 (4) Selling and marketing expenses Year ended December 31, 2017 2018 2019 RMB RMB RMB Commission expenses charged by Xiaomi (b ) 3,327 20,824 58,874 Advertising and promotion expenses charged by Xiaomi (c ) — 3,774 22,977 Total 3,327 24,598 81,851 (5) Interest expenses Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (e ) 1,761 440 — 18 . RELATED PARTY TRANSACTIONS (Continued) (6) Interest income Year ended December 31, 2017 2018 2019 RMB RMB RMB Xiaomi (f ) 490 107 — (a) Foshan Viomi both sells water purifier and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi. The amount due from Xiaomi represents receivable arising from sales of water purifier and other products. The balance due to Xiaomi represents payable arising from purchase of Xiaomi branded products and certain raw materials. (b) Foshan Viomi sells its own brand products on the E-platform of Xiaomi, which charges Foshan Viomi commission and technical service fees. The amount due from Xiaomi represents sales receivable net of commission (c) Foshan Viomi sells its own brand products on the E-platform of Xiaomi, which provides advertising and promotion service. The amount due to Xiaomi represents payable arising from advertising and promotion service. (d) Foshan Viomi purchases products from Foshan Wanwuhulian for trading during the year ended December 31, 2019. (e) Interest expense represents the expense of a loan provided by Xiaomi. 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. (f) Interest income represents interest from a loan provided to Xiaomi. 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 and 2019: Level 1 Level 2 Level 3 Total As of December 31, 2019 Short-term investments (i) — 316,201 — 316,201 As of December 31, 2018 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. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of our lease expense were as follows: Year ended December 31, 2019 Lease cost Operating lease expense 7,434 Short-term lease expense (i) 798 Total lease cost 8,232 (i) Includes leases with a term of one year or less. |
Supplemental Cash Flow Information for Leases | Supplemental cash flow information for our leases was as follows: Year ended December 31, 2019 Operating cash flows relating to operating leases 7,553 Lease liabilities arising from obtaining right-of-use assets 17,427 |
Schedule of Aggregate Future Minimum Rental Payments under Non-cancelable Agreement | At December 31, 2019, the aggregate future minimum rental payments under non-cancelable agreement were as follows: Rental RMB 2020 7,189 2021 5,985 2022 5,519 2023 3,511 Total future minimum rental payment 22,204 Less amount representing imputed interest (1,820 ) Present value of future minimum rental payments 20,384 Less current portion, recorded in other current liabilities (6,993 ) Long-term lease liabilities, recorded in other long-term liabilities 13,391 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 |
Schedule of Future Minimum Commitments of Short-Term Lease and Leases Not yet Commenced under Non-Cancellable Agreements | As of December 31, 2019, future minimum commitments under non-cancelable agreements were as follows: Rental RMB 2020 1,351 2021 1,827 2022 1,876 2023 and after 681 5,735 |
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, 2019$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Sep. 24, 2018shares | Aug. 22, 2018$ / sharesshares | Jun. 30, 2018shares | May 31, 2014CNY (¥) |
Organization And Principal Activities [Line Items] | |||||||||||
Place of incorporation | E9 | ||||||||||
Entity incorporation date | 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 Pre-IPO Class B Ordinary Shares held by Red Better, and 67,636,364 issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. | ||||||||||
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] | |||||||||||
Shares issued | 34,200,000 | 34,200,000 | |||||||||
Ordinary shares, issued | 4,000,000 | 98,444,732 | 90,200,000 | 33,818,182 | |||||||
Ordinary shares, transferred | 16,145,454 | ||||||||||
Ordinary shares, surrendered | 17,672,728 | ||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.0001 | ||||||||
Ordinary shares, shares authorized | 4,800,000,000 | 4,800,000,000 | 346,545,454 | ||||||||
Class B Ordinary Shares | |||||||||||
Organization And Principal Activities [Line Items] | |||||||||||
Ordinary shares, issued | 110,850,000 | 117,600,000 | |||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | |||||||||
Ordinary shares, shares authorized | 150,000,000 | 150,000,000 | |||||||||
IPO | |||||||||||
Organization And Principal Activities [Line Items] | |||||||||||
Shares issued | 34,200,000 | ||||||||||
Ordinary shares, shares authorized | 5,000,000,000 | ||||||||||
Ordinary shares, Value of shares authorized | $ | $ 50,000 | ||||||||||
Conversion ratio of Class B Ordinary Share into Class A ordinary shares | 1 | ||||||||||
Stock, conversion basis | Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. | ||||||||||
IPO | Class A Ordinary Shares | |||||||||||
Organization And Principal Activities [Line Items] | |||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | ||||||||||
Ordinary shares, shares authorized | 4,800,000,000 | ||||||||||
Ordinary shares, voting rights | 1 | ||||||||||
IPO | Class B Ordinary Shares | |||||||||||
Organization And Principal Activities [Line Items] | |||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | ||||||||||
Ordinary shares, shares authorized | 150,000,000 | ||||||||||
Ordinary shares, voting rights | 10 | ||||||||||
IPO | American Depositary Shares | |||||||||||
Organization And Principal Activities [Line Items] | |||||||||||
Shares issued | 11,400,000 | ||||||||||
Shares issued price per share | $ / shares | $ 9 | ||||||||||
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 | Class A Ordinary Shares | |||||||||||
Organization And Principal Activities [Line Items] | |||||||||||
Ordinary shares, issued | 16,145,454 | ||||||||||
Red Better Limited | Class B Ordinary Shares | |||||||||||
Organization And Principal Activities [Line Items] | |||||||||||
Ordinary shares, issued | 33,818,182 | ||||||||||
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 Redeemable Convertible 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 | 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 | ||||||||||
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, 2019 | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | E9 |
Viomi HK | Subsidiaries | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | K3 |
Date of incorporation | Jan. 30, 2015 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Investment holding |
Lequan | Subsidiaries | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
Date of incorporation | May 15, 2015 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Investment holding |
Yunmi Hulian Technology (Guangdong) Co., Ltd. | Subsidiaries | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
Date of incorporation | Dec. 9, 2019 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Investment holding |
Foshan Viomi | VIEs | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
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 | F4 |
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 | F4 |
Date of incorporation | Jul. 26, 2018 |
Percentage of beneficial ownership | VIE’s subsidiary |
Principal activities | Home appliance development and sales |
Guangdong AI Touch Technology Co Ltd AI Touch | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
Date of incorporation | Jan. 30, 2019 |
Percentage of beneficial ownership | VIE’s subsidiary |
Principal activities | Home appliance development and sales |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | ¥ 972,438 | $ 139,682 | ¥ 940,298 | ¥ 279,952 |
Restricted cash | 30,567 | 4,391 | 29,550 | |
Short-term deposits | 60,000 | 8,618 | ||
Short-term investments | 316,201 | 45,419 | 168,993 | |
Accounts and notes receivable from third parties (net of allowance of nil and RMB2,006 as of December 31, 2018 and 2019, respectively) | 316,189 | 45,418 | 111,718 | |
Other receivables from related parties (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) | 23,944 | 3,439 | 112,320 | |
Inventories | 418,015 | 60,044 | 231,975 | |
Prepaid expenses and other current assets | 62,314 | 8,951 | 46,890 | |
Total current assets | 2,907,615 | 417,653 | 1,902,728 | |
Property, plant and equipment, net | 67,293 | 9,666 | 11,301 | |
Intangible assets, net | 4,357 | 626 | 169 | |
Prepaid expenses and other non-current assets | 11,170 | 1,604 | 3,636 | |
Right-of-use assets, net | 19,762 | 2,839 | ||
Total non-current assets | 114,858 | 16,498 | 20,340 | |
Total assets | 3,022,473 | 434,151 | 1,923,068 | |
Accounts and notes payable current | 1,043,159 | 149,840 | 548,481 | |
Advances from customers | 103,150 | 14,817 | 86,312 | |
Amounts due to related parties | 25,106 | 3,606 | 5,763 | |
Short-term borrowings | 95,868 | 13,771 | ||
Income tax payables | 33,522 | 4,815 | 10,199 | |
Lease liabilities, current | 6,993 | 1,004 | ||
Total current liabilities | 1,632,840 | 234,542 | 851,685 | |
Accrued expenses and other liabilities non current | 1,795 | 258 | 518 | |
Lease liabilities, non current | 13,391 | 1,923 | ||
Total non-current liabilities | 15,186 | 2,181 | 518 | |
Total liabilities | 1,648,026 | $ 236,723 | 852,203 | |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 802,580 | 401,424 | ||
Restricted cash | 30,567 | 29,550 | ||
Short-term deposits | 60,000 | |||
Short-term investments | 141,189 | 168,993 | ||
Accounts and notes receivable from third parties (net of allowance of nil and RMB2,006 as of December 31, 2018 and 2019, respectively) | 316,189 | 111,718 | ||
Accounts receivable from a related party (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) | 707,947 | 260,984 | ||
Other receivables from related parties (net of allowance of nil and nil as of December 31, 2018 and 2019, respectively) | 23,944 | 112,320 | ||
Inventories | 418,015 | 231,975 | ||
Prepaid expenses and other current assets | 61,031 | 46,499 | ||
Total current assets | 2,561,462 | 1,363,463 | ||
Property, plant and equipment, net | 67,293 | 11,301 | ||
Deferred tax assets | 12,276 | 5,234 | ||
Intangible assets, net | 4,357 | 169 | ||
Prepaid expenses and other non-current assets | 11,170 | 3,636 | ||
Right-of-use assets, net | 19,593 | |||
Total non-current assets | 114,689 | 20,340 | ||
Total assets | 2,676,151 | 1,383,803 | ||
Accounts and notes payable current | 1,043,159 | 548,481 | ||
Advances from customers | 103,150 | 86,312 | ||
Amounts due to related parties | 25,106 | 5,763 | ||
Accrued expenses and other liabilities | 308,228 | 179,712 | ||
Short-term borrowings | 95,868 | |||
Income tax payables | 33,522 | 10,199 | ||
Lease liabilities, current | 6,802 | |||
Total current liabilities | 1,615,835 | 830,467 | ||
Accrued expenses and other liabilities non current | 1,795 | 518 | ||
Lease liabilities, non current | 13,391 | |||
Total non-current liabilities | 15,186 | 518 | ||
Total liabilities | ¥ 1,631,021 | ¥ 830,985 |
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) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | |||
Accounts receivable from third parties, allowance | ¥ 2,006 | ¥ 0 | ¥ 0 |
VIEs | |||
Variable Interest Entity [Line Items] | |||
Accounts receivable from third parties, allowance | 2,006 | ||
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenue | ¥ 4,647,513 | $ 667,573 | ¥ 2,561,229 | ¥ 873,219 |
Net income | 292,170 | 41,968 | 65,358 | 93,240 |
Net cash provided by operating activities | 245,484 | 35,260 | 222,269 | 123,906 |
Net cash used in investing activities | (268,956) | (38,634) | (151,821) | (1,234) |
Net cash (used in) provided by financing activities | 48,542 | $ 6,973 | 604,975 | 2,671 |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | 4,647,513 | 2,561,229 | 873,083 | |
Net income | 285,221 | 70,232 | 92,159 | |
Net cash provided by operating activities | 240,823 | 209,690 | 123,182 | |
Net cash used in investing activities | (97,702) | (183,262) | ¥ (1,234) | |
Net cash (used in) provided by financing activities | ¥ 95,933 | ¥ (37,731) |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥)InstallmentSegment | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Mar. 31, 2019 | Apr. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||||
Foreign currency exchange buying rate | 6.9618 | 6.9618 | ||||
Operating lease,right of use asset | ¥ 19,762,000 | $ 2,839 | ||||
Operating lease, liability | ¥ 20,384,000 | |||||
Number of installment payments from customer | Installment | 2 | |||||
Percentage of estimated profit margin based on consideration of specific and relevant market factors | 5.00% | |||||
Expected sales return | ¥ 12,037,000 | ¥ 846,000 | ||||
Expected return asset | 572,000 | 687,000 | ||||
Refund liability | ¥ 13,602,000 | 981,000 | ||||
Value added tax rate | 13.00% | 13.00% | 16.00% | 17.00% | ||
Accounts and notes receivable from key customers | ¥ 1,026,142,000 | 372,702,000 | ¥ 253,896,000 | |||
Recognized impairments, net of recoveries, for accounts receivable from customers | 2,006,000 | 0 | 0 | |||
Deferred revenue | 7,790,000 | 1,276,000 | 146,000 | |||
Advertising and market promotion expenses | 106,540,000 | 130,796,000 | 39,638,000 | |||
Shipping expenses | 245,329,000 | 140,456,000 | 20,044,000 | |||
Subsidy income | 35,988,000 | 1,440,000 | 1,278,000 | |||
Uncertain tax positions, interest and penalties recognized | 0 | 0 | 0 | |||
Statutory reserve funds | ¥ 1,047,000 | 0 | 6,250,000 | |||
Number of operating segment | Segment | 1 | |||||
Additional Paid-in Capital | ||||||
Significant Accounting Policies [Line Items] | ||||||
Accumulated statutory reserve funds | ¥ 7,297,000 | 6,250,000 | ||||
P R C Contribution Plan | ||||||
Significant Accounting Policies [Line Items] | ||||||
Employee benefit expenses | 23,465,000 | 18,889,000 | 8,016,000 | |||
Installation Services [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Deferred revenue | 7,790,000 | |||||
Revenue recognized amount | ¥ 1,276,000 | ¥ 146,000 | ¥ 29,000 | |||
Xiaomi Inc | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of second installment payment arrangement to total revenue | 5.90% | 9.00% | 15.00% | |||
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 |
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, 2019 | |
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 | 10 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, 2019 | |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 4,647,513 | $ 667,573 | ¥ 2,561,229 | ¥ 873,219 |
Sales to Xiaomi | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,112,170 | 1,311,852 | 739,464 | |
Sales to Xiaomi | Xiaomi-branded Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,859,499 | 1,175,332 | 654,950 | |
Sales to Xiaomi | Viomi-branded Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 250,593 | 136,520 | 84,514 | |
Sales to Xiaomi | Rendering Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,078 | |||
Sales to Third Party Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 2,535,343 | ¥ 1,249,377 | ¥ 133,755 |
Concentration and Risks - Sched
Concentration and Risks - Schedule of Accounts and Notes Receivable from Third Parties Concentration of Credit Risk (Details) - Accounts and Notes Receivable - Credit Risk - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Company A | ||
Concentration Risk [Line Items] | ||
Accounts and notes receivable | ¥ 174,620 | ¥ 58,766 |
Concentration risk, percentage | 55.00% | 53.00% |
Company B | ||
Concentration Risk [Line Items] | ||
Accounts and notes receivable | ¥ 109,585 | ¥ 36,734 |
Concentration risk, percentage | 35.00% | 33.00% |
Concentration and Risks - Sch_2
Concentration and Risks - Schedule of Accounts Receivable from Related Party Concentration of Credit Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | |
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 707,947 | ¥ 260,984 | $ 101,691 |
Xiaomi Inc | Accounts Receivable | Credit Risk | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 707,947 | ¥ 260,984 | |
Concentration risk, percentage | 100.00% | 100.00% |
Concentration and Risks - Sch_3
Concentration and Risks - Schedule of Other Receivables from Related Parties Concentration of Credit Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | |
Concentration Risk [Line Items] | |||
Other receivables | ¥ 23,944 | ¥ 112,320 | $ 3,439 |
Xiaomi Inc | Other Receivables | Credit Risk | |||
Concentration Risk [Line Items] | |||
Other receivables | ¥ 23,944 | ¥ 112,320 | |
Concentration risk, percentage | 100.00% | 100.00% |
Concentration and Risks - Summa
Concentration and Risks - Summary of Revenue Concentration Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Concentration Risk [Line Items] | ||||
Revenue | ¥ 4,647,513 | $ 667,573 | ¥ 2,561,229 | ¥ 873,219 |
Xiaomi Inc | Sales Revenue, Net | Revenue Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Revenue | ¥ 2,112,170 | ¥ 1,311,852 | ¥ 739,464 | |
Concentration risk, percentage | 45.00% | 45.00% | 51.00% | 85.00% |
Concentration and Risks - Addit
Concentration and Risks - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Concentration Risk [Line Items] | ||||
Revenue | ¥ 4,647,513 | $ 667,573 | ¥ 2,561,229 | ¥ 873,219 |
Contract With Xiaomi | Viomi-branded Products | ||||
Concentration Risk [Line Items] | ||||
Revenue | ¥ 250,593 | ¥ 136,520 | ¥ 84,514 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents Balance (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Cash And Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | ¥ 972,438 | $ 139,682 | ¥ 940,298 | ¥ 279,952 | |
RMB | |||||
Cash And Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 569,772 | 569,772 | 332,702 | $ 332,702 | |
US$ | |||||
Cash And Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | ¥ 402,666 | $ 57,720 | ¥ 607,596 | $ 88,529 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Cash And Cash Equivalents [Abstract] | |||
Restricted cash | ¥ 30,567 | $ 4,391 | ¥ 29,550 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments Balance (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) |
Schedule Of Investments [Line Items] | ||||
Short-term investments | ¥ 316,201 | $ 45,419 | ¥ 168,993 | |
RMB | ||||
Schedule Of Investments [Line Items] | ||||
Short-term investments | 141,189 | 141,189 | 100,022 | $ 100,022 |
US$ | ||||
Schedule Of Investments [Line Items] | ||||
Short-term investments | ¥ 175,012 | $ 25,087 | ¥ 68,971 | $ 10,049 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Inventory Disclosure [Abstract] | |||
Finished goods | ¥ 232,671 | ¥ 136,494 | |
Raw materials | 185,344 | 95,481 | |
Inventories | ¥ 418,015 | $ 60,044 | ¥ 231,975 |
Inventories - Additional Inform
Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Inventory Disclosure [Abstract] | ||||
Inventory write-down | ¥ 15,661 | $ 2,250 | ¥ 1,059 | ¥ 81 |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Advances to suppliers | ¥ 43,175 | ¥ 23,549 | |
Expected return assets | 11,212 | 687 | |
Other receivables | 7,725 | 15,361 | |
Lease hold improvement | 6,825 | 206 | |
Prepayment for equipment | 4,345 | 3,430 | |
Other current assets | 202 | 7,293 | |
Total | 73,484 | 50,526 | |
Less: non-current portion | (11,170) | $ (1,604) | (3,636) |
Prepaid expenses and other current assets | ¥ 62,314 | $ 8,951 | ¥ 46,890 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 87,882 | ¥ 16,778 | |
Less: accumulated depreciation | (20,589) | (5,477) | |
Property, plant and equipment, net | 67,293 | $ 9,666 | 11,301 |
Computers and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 87,374 | 16,270 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | ¥ 15,427 | ¥ 2,244 | ¥ 1,680 |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Payables And Accruals [Abstract] | |||
Accrued payroll and welfare | ¥ 69,269 | ¥ 39,700 | |
Freight payable | 63,084 | 50,680 | |
Other tax payable | 45,217 | 42,076 | |
Product warranty | 22,463 | 12,744 | |
Installation fee payables | 21,850 | 8,133 | |
Marketing and promotion expenses | 19,223 | 10,710 | |
Refund liabilities | 18,088 | 981 | |
Professional fee payables | 10,699 | 10,340 | |
Deferred revenue | 7,790 | 1,276 | |
Other current liabilities | 49,154 | 24,808 | |
Total | 326,837 | 201,448 | |
Less: non-current portion | (1,795) | (518) | |
Accrued expenses and other liabilities-current portion | ¥ 325,042 | $ 46,689 | ¥ 200,930 |
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, 2019 | Dec. 31, 2018 | |
Payables And Accruals [Abstract] | ||
Beginning Balance | ¥ 12,744 | ¥ 13,909 |
Provided during the year | 52,275 | 19,775 |
Utilized during the year | (42,556) | (20,940) |
Ending Balance | ¥ 22,463 | ¥ 12,744 |
Revenue - Schedule of Revenue (
Revenue - Schedule of Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 4,647,513 | $ 667,573 | ¥ 2,561,229 | ¥ 873,219 |
IoT-enabled Smart Home Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 3,587,355 | 2,081,273 | 712,317 | |
Consumable Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 265,844 | 141,940 | 87,500 | |
Other Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 741,290 | 323,381 | 72,686 | |
Total of Sales of Product | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 4,594,489 | 2,546,594 | 872,503 | |
Rendering of Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 53,024 | ¥ 14,635 | ¥ 716 |
Income Tax Expenses - Additiona
Income Tax Expenses - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Hong Kong | Taxable Income Within HKD$2 million | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 8.25% | ||
Hong Kong | Taxable Income Beyond HKD$2 million | |||
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 | ¥ 598,503 | ¥ 282,130 | |
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 Expenses - Current a
Income Tax Expenses - Current and Deferred Components of Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 52,232 | ¥ 26,247 | ¥ 15,519 | |
Deferred tax benefit | (7,042) | $ (1,012) | (2,186) | (801) |
Income tax expenses | ¥ 45,190 | $ 6,491 | ¥ 24,061 | ¥ 14,718 |
Income Tax Expenses - Reconcili
Income Tax Expenses - Reconciliation between Income Tax Expenses Computed by Applying PRC Enterprise Tax Rate Before Income Taxes and Actual Provision (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income from operations in the PRC | ¥ 321,090 | ¥ 93,910 | ¥ 106,868 | |
Income (loss) from overseas entities | 17,930 | (4,499) | 1,090 | |
Income before income tax expenses | 339,020 | $ 48,697 | 89,411 | 107,958 |
Tax expense at PRC enterprise income tax rate of 25% | 84,755 | 22,353 | 26,990 | |
Income tax on tax holiday | (31,493) | (9,632) | (10,989) | |
Tax effect of permanence differences | (12,147) | (7,871) | (2,640) | |
Change in valuation allowance | 1,592 | 602 | 760 | |
Effect of share-based compensation | 6,475 | 17,492 | 873 | |
Effect of income tax in jurisdictions other than the PRC | (3,992) | 1,117 | (276) | |
Income tax expenses | ¥ 45,190 | $ 6,491 | ¥ 24,061 | ¥ 14,718 |
Income Tax Expenses - Reconci_2
Income Tax Expenses - Reconciliation between Income Tax Expenses Computed by Applying PRC Enterprise Tax Rate Before Income Taxes and Actual Provision (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
High and New Technology Enterprises | |||
Income Tax Disclosure [Line Items] | |||
Beneficial tax rate | 15.00% | 15.00% | 15.00% |
Income Tax Expenses - Per Share
Income Tax Expenses - Per Share Effect of Tax Holidays (Details) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Net income per share effect – basic | ¥ 0.13 | ¥ 0.22 | ¥ 0.53 |
Net income per share effect – diluted | ¥ 0.13 | ¥ 0.20 | ¥ 0.41 |
Income Tax Expenses - Significa
Income Tax Expenses - Significant Components of Deferred Tax Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Accrued expenses and others | ¥ 9,245 | ¥ 4,616 |
Net operating loss carry forwards | 3,511 | 1,560 |
Inventory write downs | 1,497 | 421 |
Deferred income | 1,169 | 191 |
Total deferred tax assets | 15,422 | 6,788 |
Less: valuation allowance | (3,146) | (1,554) |
Deferred tax assets, net | ¥ 12,276 | ¥ 5,234 |
Income Tax Expenses - Movement
Income Tax Expenses - Movement of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of the year | ¥ 1,554 | ¥ 952 | ¥ 192 |
Provided | 1,592 | 602 | 760 |
Balance at end of the year | ¥ 3,146 | ¥ 1,554 | ¥ 952 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 25, 2018 | Aug. 23, 2018 | Jul. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 24, 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 Pre-IPO Class B Ordinary Shares held by Red Better, and 67,636,364 issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. | ||||||||
IPO | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares authorized | 5,000,000,000 | ||||||||
Ordinary shares, voting rights | Each Class A Ordinary Share is entitled to one vote, and each Class B Ordinary Share is entitled to ten (10) votes, voting together as one class | ||||||||
Ordinary shares, Value of shares authorized | $ 50,000 | ||||||||
Stock, conversion basis | Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. | ||||||||
Issuance of ordinary shares Initial Public Offering, in shares | 34,200,000 | ||||||||
Class A Ordinary Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares authorized | 4,800,000,000 | 4,800,000,000 | 346,545,454 | ||||||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.0001 | ||||||
Ordinary shares, outstanding | 98,444,732 | 90,200,000 | 25,363,636 | ||||||
Ordinary shares, voting rights | Each ordinary share is entitled to one vote | ||||||||
Common stock, shares issued | 4,000,000 | 98,444,732 | 90,200,000 | 33,818,182 | |||||
Ordinary shares, transferred | 16,145,454 | ||||||||
Ordinary shares, surrendered | 17,672,728 | ||||||||
Fair value per share | $ 3.30 | ||||||||
Issuance of ordinary shares Initial Public Offering, in shares | 34,200,000 | ||||||||
Shares issued upon conversion (in shares) | 6,750,000 | 18,181,818 | |||||||
Issuance of ordinary shares for exercised share options (in shares) | 1,494,732 | ||||||||
Class A Ordinary Shares | Key Management Founders | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares issued | 16,145,454 | ||||||||
Class A Ordinary Shares | IPO | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares authorized | 4,800,000,000 | ||||||||
Common stock, par value per share | $ 0.00001 | ||||||||
Class B Ordinary Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | |||||||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | |||||||
Ordinary shares, outstanding | 110,850,000 | 117,600,000 | |||||||
Common stock, shares issued | 110,850,000 | 117,600,000 | |||||||
Class B Ordinary Shares | Red Better Limited | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares issued | 33,818,182 | ||||||||
Class B Ordinary Shares | Viomi Limited | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares issued | 67,636,364 | ||||||||
Issuance of ordinary shares Initial Public Offering, in shares | 67,636,364 | ||||||||
Class B Ordinary Shares | IPO | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares authorized | 150,000,000 | ||||||||
Common stock, par value per share | $ 0.00001 | ||||||||
Designated Common Stock | 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 Pre-IPO 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 | |
Series A Preferred Shares | ||
Temporary Equity [Line Items] | ||
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 Pre-IPO 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 Pre-IPO Class B Ordinary Shares - Summary of Change Balance of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | ||
Sep. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Temporary Equity [Line Items] | ||||
Beginning Balance | ¥ 407,928,000 | ¥ 407,928,000 | ¥ 423,999,000 | |
Accretion of preferred shares | 6,563,000 | 8,834,000 | ||
Foreign exchange | 19,667,000 | (24,905,000) | ||
Conversion of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares to ordinary shares upon the completion of the IPO on September 25, 2018 | (434,158,000) | |||
Ending Balance | 407,928,000 | |||
Series A Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Beginning Balance | 151,045,000 | 151,045,000 | 151,279,000 | |
Accretion of preferred shares | 6,563,000 | 8,834,000 | ||
Foreign exchange | 7,487,000 | (9,068,000) | ||
Conversion of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares to ordinary shares upon the completion of the IPO on September 25, 2018 | (165,095,000) | |||
Ending Balance | 151,045,000 | |||
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 | 51,376,000 | 54,545,000 | |
Foreign exchange | 2,437,000 | (3,169,000) | ||
Conversion of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares to ordinary shares upon the completion of the IPO on September 25, 2018 | (53,813,000) | |||
Ending Balance | 51,376,000 | |||
Xiaomi Inc | Class B Ordinary Shares | ||||
Temporary Equity [Line Items] | ||||
Beginning Balance | 205,507,000 | ¥ 205,507,000 | 218,175,000 | |
Foreign exchange | 9,743,000 | (12,668,000) | ||
Conversion of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares to ordinary shares upon the completion of the IPO on September 25, 2018 | ¥ (215,250,000) | |||
Ending Balance | ¥ 205,507,000 |
Redeemable Convertible Prefer_5
Redeemable Convertible Preferred and Pre-IPO Class B Ordinary Shares - Summary of Change Balance of Series A Preferred Shares and Pre-IPO Class B Ordinary Shares (Parenthetical) (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |||
Sep. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | |
Temporary Equity [Line Items] | |||||
Accretion of preferred shares | ¥ 6,563,000 | ¥ 8,834,000 | |||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | ¥ 43,168 | ¥ 116,611 | ¥ 5,821 |
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 | |
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 | |
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 | |
Share Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expenses | ¥ 43,168 | 25,391 | ¥ 2,817 |
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, 2019USD ($)shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2019CNY (¥)shares | Sep. 24, 2018shares | Jun. 30, 2018shares | Dec. 31, 2016shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Capital contribution | $ 0 | ¥ 2,705 | ¥ 2,671 | ||||||||||
Number of share options granted to employees under stock incentive plans | 0 | ||||||||||||
Weighted average grant date fair value of options granted | (per share) | ¥ 18.23 | $ 2.66 | ¥ 6.01 | $ 0.90 | |||||||||
Unrecognized compensation expenses related to options | ¥ | ¥ 47,024 | ||||||||||||
Class A Ordinary Shares | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Ordinary shares, issued | 4,000,000 | 90,200,000 | 90,200,000 | 98,444,732 | 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 | 2,700,000 | |||||||||||
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% | ||||||||||||
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% | ||||||||||||
2018 Share Incentive Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Maximum number of shares issued under share incentive plan | 19,750,728 | ||||||||||||
Number of share options granted to employees under stock incentive plans | 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 | 2,700,000 | |||||||||||
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 | ||||||||||||
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 | ||||||||||||
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% | ||||||||||||
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% | ||||||||||||
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% | ||||||||||||
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% | ||||||||||||
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 | 33,818,182 | ||||||||||||
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 | ||||||||||||
Key Management Founders | Class A Ordinary Shares | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Ordinary shares, issued | 16,145,454 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Shares Activity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
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 | |
Number of shares, Surrender and cancellation | [1] | (5,918,182) | |
Number of shares, Vested | (2,536,364) | (8,454,546) | |
Number of shares, Outstanding, Ending Period | 8,454,546 | ||
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 | |
Number of shares, Vested | (16,909,091) | (16,909,091) | |
Number of shares, Outstanding, Ending Period | 16,909,091 | ||
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 | |
Number of shares, Surrender and cancellation | [1] | (5,918,182) | |
Number of shares, Vested | (19,445,455) | (25,363,637) | |
Number of shares, Outstanding, Ending Period | 25,363,637 | ||
[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 unrecognized share-based compensation expenses related to these 5,918,182 shares have been recognized in the consolidated financial statements for the year ended December 31, 2018. The share-based compensation expenses recognized 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 | Dec. 31, 2019 | Aug. 23, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unvested restricted shares | 25,363,637 | 50,727,274 | ||||
Class A Ordinary Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Ordinary shares, issued | 90,200,000 | 98,444,732 | 4,000,000 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expenses | ¥ 43,168 | ¥ 116,611 | ¥ 5,821 |
Restricted Shares Owned By Founder On His Own Behalf | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Balance outstanding | ¥ 0 | 4,738 | 4,550 |
Share-based compensation expenses | 212 | 286 | |
Foreign currency translation adjustment | 408 | (98) | |
Balance outstanding | 0 | ¥ 4,738 | |
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 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
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% |
Expected volatility, maximum | 46.99% | 49.44% |
Expected life of option (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 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options, Granted | 0 | |||
2015 and 2018 Share Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options, Outstanding, Beginning Period | 13,260,000 | 7,540,000 | 5,620,000 | |
Number of options, Granted | 6,130,000 | 2,700,000 | ||
Number of options, Forfeited | (400,000) | (410,000) | (780,000) | |
Number of options, Exercised | (1,494,732) | |||
Number of options, Outstanding, Ending Period | 11,365,268 | 13,260,000 | 7,540,000 | 5,620,000 |
Number of options, Exercisable | 4,342,768 | |||
Number of options, Expected to vest | 6,674,875 | |||
Weighted average exercise price, Outstanding, Beginning Period | $ 0.43 | $ 0.25 | $ 0.12 | |
Weighted average exercise price, Granted | 0.64 | 0.52 | ||
Weighted average exercise price, Forfeited | 0.96 | 0.43 | 0.27 | |
Weighted average exercise price, Exercised | 0.17 | |||
Weighted average exercise price, Outstanding, Ending Period | 0.44 | $ 0.43 | $ 0.25 | $ 0.12 |
Weighted average exercise price, Exercisable | 0.18 | |||
Weighted average exercise price, Expected to vest | $ 0.60 | |||
Weighted-average remaining contractual life (years), Outstanding | 7 years 7 months 2 days | 8 years 4 months 24 days | 8 years 7 months 24 days | 9 years 2 months 19 days |
Weighted-average remaining contractual life (years), Exercisable | 6 years 5 months 15 days | |||
Weighted-average remaining contractual life (years), Expected to vest | 8 years 3 months 10 days | |||
Aggregate intrinsic value, Outstanding | $ 17,737 | $ 18,705 | $ 3,697 | $ 1,854 |
Aggregate intrinsic value, Exercisable | 1,991 | |||
Aggregate intrinsic value, Expected to vest | $ 14,960 |
Net Income Per Share - Schedule
Net 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, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company | ¥ 292,170 | $ 41,968 | ¥ 50,544 | ¥ 8,033 |
Denominator: | ||||
Denominator for basic calculation - weighted average ordinary shares outstanding | 208,156,507 | 208,156,507 | 71,771,033 | 20,684,681 |
Dilutive effect of share options | 7,699,070 | 7,699,070 | 7,819,747 | 4,895,125 |
Denominator for diluted calculation | 215,855,577 | 215,855,577 | 79,590,780 | 25,579,806 |
Basic net income per ordinary share | (per share) | ¥ 1.40 | $ 0.20 | ¥ 0.70 | ¥ 0.39 |
Diluted net income per ordinary share | (per share) | ¥ 1.35 | $ 0.19 | ¥ 0.64 | ¥ 0.31 |
Net Income Per Share - Schedu_2
Net Income Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) | 12 Months Ended |
Dec. 31, 2017shares | |
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 |
Series A Preferred Shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive outstanding shares | 18,181,818 |
Restricted Shares | Founder | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive outstanding shares | 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 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transaction Relationship (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Founder | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Founder |
Xiaomi | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Shareholder of the Group |
Foshan Wanwuhulian Trade Co., Limited | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlled by the Founder |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Xiaomi | 12 Months Ended |
Dec. 31, 2019 | |
Business Corporation Agreement | |
Related Party Transaction [Line Items] | |
Related party transaction expiration | 2020-11 |
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, 2019 |
Related party transaction agreement termination notice period | 30 days |
Related party transaction renewed date | Dec. 31, 2020 |
Related party transaction commission percentage in sales excluding customer refunds | 11.00% |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||||
Other receivables | ¥ 23,944 | ¥ 112,320 | $ 3,439 | ||
Amount due to related parties | 25,106 | 5,763 | $ 3,606 | ||
Purchase from related parties | 58,459 | 18,235 | ¥ 1,685 | ||
A related party | 2,112,170 | $ 303,394 | 1,311,852 | 739,464 | |
Interest expense from related party | 333 | 1,271 | |||
Xiaomi | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable from a related party | 707,947 | 260,984 | |||
Sales receivable from related party | 23,908 | 112,320 | |||
Other receivables | 36 | ||||
Advertising and promotion expenses payable | 12,919 | 1,887 | |||
Purchase payable | 12,187 | 3,876 | |||
Purchase from related parties | 43,037 | 18,235 | 1,685 | ||
A related party | 2,112,170 | 1,311,852 | 739,464 | ||
Commission expenses | 58,874 | 20,824 | 3,327 | ||
Advertising and promotion expenses | 22,977 | 3,774 | |||
Selling and marketing expenses, total | 81,851 | 24,598 | 3,327 | ||
Interest expense from related party | 440 | 1,761 | |||
Interest income | ¥ 107 | ¥ 490 | |||
Foshan Wanwuhulian Trade Co., Limited | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related parties | ¥ 15,422 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Related Party Transactions (Parenthetical) (Details) - Xiaomi ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | |
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 | |
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 |
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 - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | ¥ 316,201 | ¥ 168,993 |
Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | ¥ 316,201 | ¥ 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 |
Leases - Additional Information
Leases - Additional Information (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating leases, weighted average discount rate | 4.75% |
Operating leases, weighted-average remaining lease term | 2 years 4 months 24 days |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019CNY (¥) | ||
Lease cost | ||
Operating lease expense | ¥ 7,434 | |
Short-term lease expense | 798 | [1] |
Total lease cost | ¥ 8,232 | |
[1] | Includes leases with a term of one year or less. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information for Leases (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Leases [Abstract] | |
Operating cash flows relating to operating leases | ¥ 7,553 |
Lease liabilities arising from obtaining right-of-use assets | ¥ 17,427 |
Leases - Schedule of Aggregate
Leases - Schedule of Aggregate Future Minimum Rental Payments under Non-cancelable Agreement (Detail) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Leases [Abstract] | ||
2020 | ¥ 7,189 | |
2021 | 5,985 | |
2022 | 5,519 | |
2023 | 3,511 | |
Total future minimum rental payment | 22,204 | |
Less amount representing imputed interest | (1,820) | |
Present value of future minimum rental payments | 20,384 | |
Less current portion, recorded in other current liabilities | (6,993) | $ (1,004) |
Long-term lease liabilities, recorded in other long-term liabilities | ¥ 13,391 | $ 1,923 |
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 - Schedule of Future Minimum Commitments of Short-Term Lease and Leases Not yet Commenced under Non-Cancellable Agreements (Details) ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | ¥ 1,351 |
2021 | 1,827 |
2022 | 1,876 |
2023 and after | 681 |
Total | ¥ 5,735 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Commitments And Contingencies Disclosure [Abstract] | |
Capital commitments outstanding | ¥ 0 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Amount of restricted net assets for consolidated and unconsolidated subsidiaries | ¥ 31,395 | ¥ 13,750 |