Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
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 |
Entity Address, City or Town | Guangdong |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510220 |
ICFR Auditor Attestation Flag | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Guangzhou, the People’s Republic of China |
Auditor Firm ID | 1424 |
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 |
Entity Address, City or Town | Guangdong |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510220 |
Contact Personnel Name | Xiaoping Chen |
City Area Code | 20 |
Local Phone Number | 8930 9496 |
Contact Personnel Email Address | chenxp@viomi.com |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 105,516,779 |
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 | 103,214,547 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 586,955 | $ 92,106 | ¥ 504,108 |
Restricted cash | 35,831 | 5,623 | 70,601 |
Short-term investments | 828,867 | 130,067 | 696,051 |
Accounts and notes receivable from third parties (net of allowance of RMB9,246 and RMB34,385 as of December 31, 2020 and 2021, respectively) | 302,336 | 47,443 | 427,352 |
Accounts receivable from a related party (net of allowance of RMB61 and RMB368 as of December 31, 2020 and 2021, respectively) | 320,939 | 50,362 | 609,094 |
Other receivables from related parties (net of allowance of RMB9 and RMB104 as of December 31, 2020 and 2021, respectively) | 88,367 | 13,867 | 88,038 |
Inventories | 576,351 | 90,442 | 439,375 |
Prepaid expenses and other current assets | 156,127 | 24,500 | 87,280 |
Long-term deposits -current portion | 50,000 | 7,846 | 10,000 |
Total current assets | 2,945,773 | 462,256 | 2,931,899 |
Non-current assets | |||
Prepaid expenses and other non-current assets | 27,321 | 4,287 | 19,803 |
Property, plant and equipment, net | 145,993 | 22,909 | 72,436 |
Deferred tax assets | 35,304 | 5,540 | 14,189 |
Intangible assets, net | 12,176 | 1,911 | 7,681 |
Right-of-use assets, net | 18,425 | 2,891 | 20,529 |
Land use rights, net | 61,722 | 9,686 | 62,982 |
Long-term deposits -non-current portion | 30,000 | 4,708 | 50,000 |
Total non-current assets | 330,941 | 51,932 | 247,620 |
Total assets | 3,276,714 | 514,188 | 3,179,519 |
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 RMB860,454 and RMB545,966 as of December 31, 2020 and 2021, respectively) | 1,069,108 | 167,766 | 1,001,371 |
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Company of RMB109,162 and RMB89,303 as of December 31, 2020 and 2021, respectively) | 99,632 | 15,634 | 112,613 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Company of RMB124,192 and RMB5,415 as of December 31, 2020 and 2021, respectively) | 5,415 | 850 | 124,192 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Company of RMB298,856 and RMB284,830 as of December 31, 2020 and 2021, respectively) | 365,718 | 57,390 | 335,488 |
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Company of RMB47,242 and RMB16,231 as of December 31, 2020 and 2021, respectively) | 43,343 | 6,801 | 50,962 |
Lease liabilities due within one year (including lease liabilities due within one year of the consolidated VIEs without recourse to the Company of RMB6,333 and RMB6,988 as of December 31, 2020 and 2021, respectively) | 11,312 | 1,775 | 9,481 |
Total current liabilities | 1,594,528 | 250,216 | 1,634,107 |
Non-current liabilities | |||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Company of RMB3,400 and RMB7,558 as of December 31, 2020 and 2021, respectively) | 7,558 | 1,186 | 3,400 |
Long-term borrowing | 16,105 | 2,527 | |
Lease liabilities (including lease liabilities of the consolidated VIEs without recourse to the Company of RMB6,484 and RMB4,571 as of December 31, 2020 and 2021, respectively) | 7,596 | 1,192 | 11,693 |
Total non-current liabilities | 31,259 | 4,905 | 15,093 |
Total liabilities | 1,625,787 | 255,121 | 1,649,200 |
Commitments and contingencies (Note 21) | |||
Shareholders’ equity | |||
Treasury stock | (66,668) | (10,462) | (54,600) |
Additional paid-in capital | 1,337,281 | 209,849 | 1,278,004 |
Retained earnings | 449,900 | 70,599 | 363,051 |
Accumulated other comprehensive loss | (73,120) | (11,474) | (59,384) |
Total equity attributable to shareholders of Viomi Technology Co., Ltd (the "Company") | 1,647,405 | 258,514 | 1,527,083 |
Non-controlling interests | 3,522 | 553 | 3,236 |
Total shareholders’ equity | 1,650,927 | 259,067 | 1,530,319 |
Total liabilities and shareholders’ equity | 3,276,714 | 514,188 | 3,179,519 |
Class A Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares, value | 6 | 1 | 6 |
Class B Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares, value | ¥ 6 | $ 1 | ¥ 6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares |
Accounts and Notes Receivable, Net, Current | ¥ 25,446 | ¥ 4,475 |
Accounts and notes payable current | 1,069,108 | 1,001,371 |
Advances from customers | 99,632 | 112,613 |
Amounts due to related parties | 5,415 | 124,192 |
Accrued expenses and other liabilities current | 365,718 | 335,488 |
Income tax payables | 43,343 | 50,962 |
Lease liabilities, current | 11,312 | 9,481 |
Accrued expenses and other liabilities non current | 7,558 | 3,400 |
Lease liabilities, non current | 7,596 | 11,693 |
VIEs | ||
Accounts and notes payable current | 545,966 | 860,454 |
Advances from customers | 89,303 | 109,162 |
Amounts due to related parties | 5,415 | 124,192 |
Accrued expenses and other liabilities current | 284,830 | 298,856 |
Income tax payables | 16,231 | 47,242 |
Lease liabilities, current | 6,988 | 6,333 |
Accrued expenses and other liabilities non current | 7,558 | 3,400 |
Lease liabilities, non current | 4,571 | 6,484 |
Related Party | ||
Accounts and Notes Receivable, Net, Current | 368 | 61 |
Accounts and Other Receivables, Net, Current | 104 | 9 |
Third Party | ||
Accounts and Notes Receivable, Net, Current | ¥ 34,385 | ¥ 9,246 |
Class A Ordinary Shares | ||
Common stock, shares authorized | shares | 4,800,000,000 | 4,800,000,000 |
Common stock, shares issued | shares | 105,516,779 | 104,163,686 |
Common stock, shares outstanding | shares | 105,516,779 | 104,163,686 |
Class B Ordinary Shares | ||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 |
Common stock, shares issued | shares | 103,214,547 | 103,554,546 |
Common stock, shares outstanding | shares | 103,214,547 | 103,554,546 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
A related party | ¥ 2,295,569 | $ 360,225 | ¥ 2,889,441 | ¥ 2,112,170 |
Third parties | 3,008,266 | 472,063 | 2,936,183 | 2,535,343 |
Total net revenues | 5,303,835 | 832,288 | 5,825,624 | 4,647,513 |
Cost of revenues | (4,105,767) | (644,285) | (4,742,668) | (3,565,109) |
Gross profit | 1,198,068 | 188,003 | 1,082,956 | 1,082,404 |
Operating expenses: | ||||
Research and development expenses | (311,786) | (48,926) | (265,680) | (204,942) |
Selling and marketing expenses | (751,011) | (117,850) | (597,176) | (529,212) |
General and administrative expenses | (97,730) | (15,336) | (68,914) | (73,061) |
Total operating expenses | (1,160,527) | (182,112) | (931,770) | (807,215) |
Other income, net | 27,128 | 4,257 | 32,795 | 35,880 |
Income from operations | 64,669 | 10,148 | 183,981 | 311,069 |
Interest income and short-term investment income, net | 28,589 | 4,486 | 31,968 | 26,109 |
Other non-operating income | 1,372 | 215 | 1,818 | 1,842 |
Income before income tax expenses | 94,630 | 14,849 | 217,767 | 339,020 |
Income tax expenses | (5,739) | (901) | (43,321) | (45,190) |
Net income | 88,891 | 13,948 | 174,446 | 293,830 |
Less: Net income attributable to the non-controlling interest shareholders | 286 | 45 | 1,122 | 1,660 |
Net income attributable to ordinary shareholders of the Company | 88,605 | 13,903 | 173,324 | 292,170 |
Net income attributable to the Company | 88,605 | 13,903 | 173,324 | 292,170 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (13,736) | (2,155) | (40,239) | 10,641 |
Total comprehensive income attributable to the Company | ¥ 74,869 | $ 11,748 | ¥ 133,085 | ¥ 302,811 |
Net income per share attributable to ordinary shareholders of the Company: | ||||
-Basic | (per share) | ¥ 0.42 | $ 0.07 | ¥ 0.83 | ¥ 1.40 |
-Diluted | (per share) | ¥ 0.40 | $ 0.06 | ¥ 0.80 | ¥ 1.35 |
Weighted average number of ordinary shares used in calculating net income per share | ||||
-Basic | 209,551,821 | 209,551,821 | 208,812,049 | 208,156,507 |
-Diluted | 220,735,997 | 220,735,997 | 215,623,773 | 215,855,577 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Share-based compensation expense | ¥ 47,405 | ¥ 72,203 | ¥ 43,168 | |
Research and Development Expenses | ||||
Share-based compensation expense | 32,609 | $ 5,117 | 49,996 | 23,564 |
Selling and Marketing Expenses | ||||
Share-based compensation expense | 5,666 | 889 | 10,904 | 12,322 |
General and Administrative Expenses | ||||
Share-based compensation expense | ¥ 9,130 | $ 1,433 | ¥ 11,303 | ¥ 7,282 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | 2015 and 2018 Share Incentive PlanCNY (¥)shares | Cumulative Effect, Period of Adoption, AdjustmentCNY (¥) | Class A Ordinary Sharesshares | Class B Ordinary Sharesshares | Common StockClass A 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 B ordinary shares into Class A ordinary sharesCNY (¥)shares | Treasury StockCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in Capital2015 and 2018 Share Incentive PlanCNY (¥) | (Accumulated Deficit) Retained EarningsCNY (¥) | (Accumulated Deficit) Retained EarningsCumulative Effect, Period of Adoption, AdjustmentCNY (¥) | Accumulated Other Comprehensive (Loss) IncomeCNY (¥) | Total Equity Attributable to Shareholders of the CompanyCNY (¥) | Total Equity Attributable to Shareholders of the Company2015 and 2018 Share Incentive PlanCNY (¥) | Total Equity Attributable to Shareholders of the CompanyCumulative Effect, Period of Adoption, AdjustmentCNY (¥) | Non-Controlling InterestCNY (¥) |
Balances (in shares) at Dec. 31, 2017 | shares | 25,363,636 | |||||||||||||||||||
Balances (in shares) at Dec. 31, 2018 | shares | 90,200,000 | 117,600,000 | 90,200,000 | 117,600,000 | ||||||||||||||||
Securities have been converted into Ordinary Shares upon the completion of the Initial Public Offering (in shares) | shares | 18,181,818 | |||||||||||||||||||
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, 2019 | shares | 98,444,732 | 110,850,000 | 98,444,732 | 110,850,000 | ||||||||||||||||
Net income (loss) attributable to the Company and a non-controlling interest shareholder | 293,830 | 292,170 | 292,170 | 1,660 | ||||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 43,168 | ¥ 43,168 | ¥ 43,168 | |||||||||||||||||
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 a 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) | |||||||||||||||||
Appropriation to statutory reserves | 1,047 | (1,047) | ||||||||||||||||||
Foreign currency translation adjustment | 10,641 | 10,641 | 10,641 | |||||||||||||||||
Balances at Dec. 31, 2019 | ¥ 1,374,447 | ¥ (2,405) | ¥ 6 | ¥ 6 | 1,192,332 | 195,596 | ¥ (2,405) | (19,145) | 1,368,795 | ¥ (2,405) | 5,652 | |||||||||
Balances (in shares) at Dec. 31, 2020 | shares | 104,163,686 | 103,554,546 | 104,163,686 | 103,554,546 | 4,232,169 | |||||||||||||||
Accounting Standards Update [Extensible List] | ASU No. 2016-13 | ASU No. 2016-13 | ||||||||||||||||||
Net income (loss) attributable to the Company and a non-controlling interest shareholder | ¥ 174,446 | 173,324 | 173,324 | 1,122 | ||||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 72,203 | 72,203 | 72,203 | |||||||||||||||||
Securities have been converted into Ordinary Shares upon the completion of the Initial Public Offering (in shares) | shares | 7,295,454 | 7,295,454 | (7,295,454) | |||||||||||||||||
Issuance of ordinary shares for exercised share options | 8,989 | 8,989 | 8,989 | |||||||||||||||||
Issuance of ordinary shares for exercised share options (in shares) | shares | 2,655,669 | 2,655,669 | 2,655,669 | |||||||||||||||||
Repurchase of shares | (54,600) | ¥ (54,600) | (54,600) | |||||||||||||||||
Repurchase of shares (in shares) | shares | (4,232,169) | (4,232,169) | 4,232,169 | |||||||||||||||||
Purchase of non-controlling interests | (1,286) | 1,016 | 1,016 | (2,302) | ||||||||||||||||
Dividend to non-controlling interests | (1,236) | (1,236) | ||||||||||||||||||
Appropriation to statutory reserves | 3,464 | (3,464) | ||||||||||||||||||
Foreign currency translation adjustment | (40,239) | (40,239) | (40,239) | |||||||||||||||||
Balances at Dec. 31, 2020 | 1,530,319 | ¥ 6 | ¥ 6 | ¥ (54,600) | 1,278,004 | 363,051 | (59,384) | 1,527,083 | 3,236 | |||||||||||
Balances (in shares) at Dec. 31, 2021 | shares | 105,516,779 | 103,214,547 | 105,516,779 | 103,214,547 | 6,230,139 | |||||||||||||||
Net income (loss) attributable to the Company and a non-controlling interest shareholder | 88,891 | $ 13,949 | 88,605 | 88,605 | 286 | |||||||||||||||
Share-based compensation related to Share Incentive Plan | ¥ 47,405 | ¥ 47,405 | ¥ 47,405 | |||||||||||||||||
Securities have been converted into Ordinary Shares upon the completion of the Initial Public Offering (in shares) | shares | 339,999 | 339,999 | (339,999) | |||||||||||||||||
Issuance of ordinary shares for exercised share options | 9,941 | 9,941 | 9,941 | |||||||||||||||||
Issuance of ordinary shares for exercised share options (in shares) | shares | 3,011,064 | 3,011,064 | 3,011,064 | |||||||||||||||||
Capital injection in a subsidiary from a non-controlling interest shareholder | 175 | 175 | 175 | |||||||||||||||||
Repurchase of shares | (12,068) | ¥ (12,068) | (12,068) | |||||||||||||||||
Repurchase of shares (in shares) | shares | (1,997,970) | (1,997,970) | 1,997,970 | |||||||||||||||||
Appropriation to statutory reserves | 1,756 | (1,756) | ||||||||||||||||||
Foreign currency translation adjustment | (13,736) | (2,155) | (13,736) | (13,736) | ||||||||||||||||
Balances at Dec. 31, 2021 | ¥ 1,650,927 | $ 259,067 | ¥ 6 | ¥ 6 | ¥ (66,668) | ¥ 1,337,281 | ¥ 449,900 | ¥ (73,120) | ¥ 1,647,405 | ¥ 3,522 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash flows from operating activities | ||||
Net income | ¥ 88,891 | $ 13,949 | ¥ 174,446 | ¥ 293,830 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 72,148 | 11,322 | 54,271 | 23,577 |
Inventory write-down | 8,103 | 1,272 | 22,577 | 15,661 |
Share-based compensation | 47,405 | 7,439 | 72,203 | 43,168 |
Allowance for doubtful accounts | 25,541 | 4,008 | 4,484 | 2,006 |
Loss from disposal of property and equipment | 0 | 29 | ||
Deferred income tax benefits | (21,115) | (3,313) | (1,492) | (7,042) |
Investment income | (1,369) | (215) | (10,800) | (4,654) |
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable from third parties | 99,877 | 15,673 | (118,403) | (206,477) |
Accounts receivable from a related party | 287,690 | 45,145 | 98,792 | (446,963) |
Inventories | (145,079) | (22,766) | (43,937) | (201,701) |
Prepaid expenses and other current assets | (76,193) | (11,956) | (23,543) | (25,659) |
Other receivables from related parties | (266) | (42) | (64,103) | 88,376 |
Amounts due to related parties | (118,777) | (18,639) | 99,086 | 19,343 |
Interest received relating to the investment income recognized in previous year | 2,785 | 437 | 8,089 | 361 |
Accounts and notes payable | 67,737 | 10,629 | (41,788) | 494,678 |
Advances from customers | (12,981) | (2,037) | 9,463 | 16,838 |
Income tax payables | (7,619) | (1,196) | 17,440 | 23,323 |
Accrued expenses and other liabilities | 3,202 | 503 | 421 | 122,550 |
Lease liabilities | (11,012) | (1,728) | (8,392) | (5,760) |
Purchase of a land use right | 0 | (63,618) | ||
Net cash provided by operating activities | 308,968 | 48,485 | 185,196 | 245,484 |
Cash flows from investing activities | ||||
Purchase of equipment | (99,448) | (15,606) | (47,509) | (56,131) |
Purchase of lease hold improvement | (3,991) | (626) | (569) | (7,874) |
Purchase of intangible assets | (6,733) | (1,057) | (2,365) | (4,595) |
Purchase of short-term investments | (1,796,620) | (281,929) | (3,256,151) | (812,086) |
Maturity of short-term investments | 1,663,489 | 261,038 | 2,874,162 | 670,190 |
Placement of short-term deposits | (164,761) | (25,855) | (215,630) | (270,457) |
Maturities of short-term deposits | 162,743 | 25,538 | 214,979 | 211,967 |
Placement of long-term deposits | (30,000) | (4,708) | ||
Maturities of long-term deposits | 10,000 | 1,569 | ||
Proceeds from disposal of property and equipment | 0 | 30 | ||
Net cash used in investing activities | (265,321) | (41,636) | (433,083) | (268,956) |
Cash flows from financing activities | ||||
Dividend paid | 0 | (46,602) | ||
Proceeds from exercise of vested share options | 12,920 | 2,027 | 6,615 | 1,109 |
Receipt (repayment) of borrowing | 16,106 | 2,527 | (95,868) | 95,868 |
Cash paid in relation to issuance of ordinary shares upon IPO | 0 | (2,637) | ||
Capital injection in subsidiaries from non-controlling shareholders or investors | 175 | 27 | 3,000 | |
Purchase of non-controlling interests | 0 | (1,286) | (2,196) | |
Repurchase of ordinary shares | (12,068) | (1,894) | (54,600) | |
Dividends paid by non-wholly owned subsidiaries to non-controlling interests | 0 | (1,236) | ||
Net cash provided by (used in) financing activities | 17,133 | 2,687 | (146,375) | 48,542 |
Effect of exchange rate changes on cash and cash equivalents | (12,703) | (1,993) | (34,034) | 8,087 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 48,077 | 7,543 | (428,296) | 33,157 |
Cash and cash equivalents and restricted cash at the beginning of the year | 574,709 | 90,186 | 1,003,005 | 969,848 |
Cash and cash equivalents and restricted cash at the end of the year | 622,786 | 97,729 | 574,709 | 1,003,005 |
Cash and cash equivalents at the end of the year | 586,955 | 92,106 | 504,108 | 972,438 |
Restricted cash at the end of the year | 35,831 | 5,623 | 70,601 | 30,567 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income tax | (34,446) | (5,405) | (27,373) | (28,909) |
Cash paid for interest expense, net of amounts capitalized | 0 | (76) | (995) | |
Acquisition of equipment in form of other payable | ¥ 60,507 | $ 9,495 | ¥ 15,624 | ¥ 5,997 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2021 | |
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. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (a) History and Reorganization (Continued) Pursuant to the written resolutions of all the shareholders of the Company on August 23, 2018, the Company effected a share split whereby each of the Company’s authorized and outstanding ordinary shares and preferred shares, par value of $0.0001 each, was divided into ten ordinary shares and preferred shares of the same series, par value US$0.00001 each, respectively. All shareholders surrendered 90% of their after-share-split outstanding shares back to the Company for cancellation. After the share split and the surrender of shares for cancellation, the number of the Company’s outstanding ordinary and preferred shares remained unchanged. In December 2019, the Company established Yunmi Hulian Technology (Guangdong) Co., Ltd. (“Yunmi Hulian”) In October 2020, Codream HK Co., Limited (Hong Kong) ( “ ” In November 2020, the Group entered into an agreement with Sunglow Wealth HK Limited (“Sunglow”) to sell 1% of equity interests of Guangdong Lizi Technology Co. Ltd. (“Guangdong Lizi”) for a consideration of RMB175. Meanwhile, Foshan Viomi transferred all of its equity interests of Guangdong Lizi to Zhumeng Hulian. Sunglow has paid up the consideration in December 2021 but is not entitled to any shareholder’s rights of Guangdong Lizi until the fulfilment of certain conditions pursuant to the supplemental agreement in November 2021. The Group therefore did not recognize Sunglow as a non-controlling interest of Guangdong Lizi as of December 31, 2021. As of December 31, 2021, 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 Codream HK Hong Kong August 20, 2019 100% Investment holding Yunmi Hulian PRC December 9, 2019 100% Investment holding Zhumeng Hulian PRC October 14, 2020 100% Investment holding Guangdong Lizi PRC July 26, 2018 100% Home appliance development and sales Guangzhou interconnect Technology Co., Ltd. PRC December 7, 2020 100% Home appliance development and sales VIEs: Foshan Viomi PRC May 6, 2014 100% Home appliance development and sales Beijing Viomi PRC January 12, 2015 100% No substantial business Subsidiaries of Foshan Viomi: Guangdong AI Touch Technology Co., Ltd. (“AI Touch”) PRC January 30, 2019 VIE’s subsidiary Home appliance development and sales Foshan Xiaoxian Hulian Electric Appliances Technology Co., Ltd. (“Foshan Xiaoxian”) PRC October 12, 2016 VIE’s subsidiary Home appliance development and sales 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (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 (i) 4,800,000,000 class A ordinary shares of a par value of US$0.00001 each (‘‘Class A Ordinary Shares’’), (ii) 150,000,000 class B ordinary shares of a par value of US$0.00001 each (‘‘Class B Ordinary Shares’’) and (iii) 50,000,000 shares of a par value of US$0.00001 each of such class or classes (however designated) as the board of directors may determine in accordance with post-offering amended and restated memorandum and articles of association. In respect of all matters subject to a shareholder vote, each Class A ordinary share is entitled to one vote, and each Class B Ordinary Share is entitled to ten (10) votes, voting together as one class. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. Upon any transfer of Class B Ordinary Shares by a holder to any person or entity other than holders of Class B Ordinary Shares or their affiliates, such Class B Ordinary Shares shall be automatically and immediately converted into the equivalent number of Class A Ordinary Shares. Immediately prior to the completion of the IPO, 16,145,454 issued Class A Ordinary Shares held by certain key management founders, 33,818,182 issued Pre-IPO Class B Ordinary Shares held by Red Better, and 67,636,364 issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiaries The Company, through Lequan or Yunmi Hulian, entered into the following contractual arrangements with Beijing Viomi, Foshan Viomi and their shareholders, respectively, that enable Lequan or Yunmi Hulian through their PRC subsidiaries to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, through the exercise of the shareholders’ rights under the shareholder voting proxy agreement as the shareholders’ meetings of the VIEs appoint the board of directors of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs through the exclusive consultation and service agreement. Accordingly, Lequan or Yunmi Hulian are considered the primary beneficiaries of the VIEs and have consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that Lequan or Yunmi Hulian are the primary beneficiaries of the VIEs, the Company believes Lequan or Yunmi Hulian’s rights under the terms of the option agreement provide them with a substantive kick-out right. As advised by the Company’s PRC legal counsel, the Company believes the terms of the option agreement are valid, binding and enforceable under PRC laws and regulations currently in effect. The Company also believes that the consideration which is the minimum amount permitted by the applicable PRC law to exercise the option does not represent a financial barrier or disincentive for Lequan or Yunmi Hulian to currently exercise their rights under the exclusive option agreement. A simple majority vote of Lequan or Yunmi Hulian’s board of directors is required to pass a resolution to exercise their rights under the option agreement. Lequan or Yunmi Hulian’s rights under the option agreement give them the power to control the shareholders of Foshan Viomi and Beijing Viomi. In addition, Lequan or Yunmi Hulian’s rights under the shareholder voting proxy agreement also reinforce their abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Company also believes that this ability to exercise control ensures that the VIEs will continue to execute consultation and service agreements and also ensures that consultation and service agreements will be executed and renewed indefinitely unless a written agreement is signed by all parties to terminate it or a mandatory termination is requested by PRC laws or regulations. Lequan and Yunmi Hulian have the rights to receive substantially all of the economic benefits from the VIEs. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (Continued) Exclusive consulting and service agreement. 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. In April 2020, Lequan assigned and transferred its rights and obligations of Foshan Viomi under the original agreements to Yunmi Hulian, which succeeded Lequan as a party to such agreement and assumed its rights and obligations thereunder. Under the exclusive consultation and service agreements, Lequan or Yunmi Hulian have the exclusive right to provide or designate any entity affiliated with them 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 Yunmi Hulian or the party designated by them. Under this arrangement, Lequan or Yunmi Hulian 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, respectively. In addition, Lequan or Yunmi Hulian are entitled to receive other technical service fees at the amount mutually agreed upon by them 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. In April 2020, Lequan assigned and transferred its rights and obligations under the original agreements to Yunmi Hulian. Exclusive purchase option agreement. Lequan , Foshan Viomi, Beijing Viomi and their shareholders entered into exclusive option agreements in July 2015. In April 2020, Lequan assigned and transferred its rights and obligations under the original agreements to Yunmi Hulian, which succeeded Lequan as a party to such agreement and assumed its rights and obligations thereunder. Pursuant to the exclusive option agreements, the shareholders of Foshan Viomi and Beijing Viomi are obligated to sell their equity interest to Lequan or Yunmi Hulian. Lequan or Yunmi Hulian 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 them, in Lequan or Yunmi Hulian’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 or Yunmi Hulian to own such equity interests and assets in Foshan Viomi and Beijing Viomi. The price to be paid 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 Yunmi Hulian or any party designated by them 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 or Yunmi Hulian’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 Yunmi Hulian or the party designated by them. Shareholder voting proxy agreement. In July 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. In April 2020, Lequan assigned and transferred its rights and obligations under the original agreement to Yunmi Hulian, which succeeded Lequan as a party to such agreement and assumed its rights and obligations thereunder. The shareholder voting proxy agreement will be indefinitely effective unless all parties decide to terminate it by written agreement. In September 2018, Foshan Viomi reduced its registered capital and changed its shareholders from Mr. Chen and Tianjin Jinxing to Mr. Chen alone. Concurrently, the Group entered into a series of contractual arrangements in substantially the same forms with Foshan Viomi and Mr. Chen. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (Continued) Management therefore concluded that the Company, through its PRC subsidiary and the above contractual arrangements, has the power to direct the activities that most significantly impact the VIEs' economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore the Company is the ultimate primary beneficiary of these VIEs. Consequently, the financial results of the VIEs were included in the Group's consolidated financial statements. Risks in relation to VIE structure The Company believes that the contractual arrangements among its subsidiaries, their VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit Lequan and Yunmi Hulian’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • • • • • • • The Company’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary or VIEs. Mr. Chen is the ultimate shareholder of Foshan Viomi and the largest shareholder of Beijing Viomi, and Mr. Chen is also the largest beneficiary owner of the Company. The interests of Mr. Chen as the largest beneficiary owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Chen is only one of the beneficiary shareholders of the Company. The Company cannot assert that when conflicts of interest 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (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 April 2020, assigned and transferred its rights and obligations of under the original agreements to Yunmi Hulian, which succeeded Lequan as a party to such agreement and assumed its rights and obligations thereunder. In March 2019, the National People’s Congress enacted PRC Foreign Investment Law which would be effective starting from January 1, 2020. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment”, which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Existing laws or administrative regulations remain unclear whether the contractual arrangements with variable interest entities will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. However, the possibility that such entities will be deemed as foreign invested enterprise and subject to relevant restrictions in the future shall not be excluded. If variable interest entities fall within the definition of foreign investment entities, the Group's ability to use the contractual arrangements with its VIE and the Group's ability to conduct business through the VIE could be severely limited. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and its subsidiaries taken as a whole on an aggregated basis, which were included in the Group’s consolidated financial statements. For purposes of this presentation, activity within and between the VIEs and their subsidiaries have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination. Presentation of the comparative data for 2019 and 2020 have been expanded to conform to the current year presentation. As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 338,748 353,554 Short-term investments 579,457 820,344 Accounts receivable from third parties 412,118 204,769 Accounts receivable from a related party 609,094 320,939 Inventories 392,574 362,385 Amount due from Group companies 106,956 232,203 Other assets 395,941 383,569 Total assets 2,834,888 2,677,763 Accounts and notes payable 860,454 545,966 Accrued expenses and other liabilities* 302,256 292,388 Amount due to Group companies 480,058 824,304 Other liabilities 293,413 122,508 Total liabilities 1,936,181 1,785,166 * The amount of accrued expenses and other liabilities of VIEs as of December 31, 2020 has been revised to correct an error in previously issued annual financial statements included in our Form 20-F for the year ended December 31, 2020. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (Continued) Year ended December 31, 2019 2020 2021 RMB RMB RMB Revenue from Group companies (1) — 25,994 131,379 Revenue from a related party and third parties 4,647,513 5,790,475 4,859,414 Cost from Group companies — 214,289 1,291,468 Cost from a related party and third parties 3,565,109 4,556,588 2,870,809 Net income/(loss) 276,426 152,908 (60,908 ) Net cash used in operating activities with Group companies — (162,243 ) (794,936 ) Net cash provided by operating activities with third parities 240,823 218,030 1,248,860 Net cash used in investing activities with Group companies (1,482 ) (30,404 ) (83,325 ) Net cash used in investing activities with third parties (97,702 ) (490,270 ) (233,934 ) Net cash provided by/(used in) financing activities with Group companies 161,722 154,557 (156,406 ) Net cash (used in)/provided by financing activities with third parties 95,933 (98,390 ) — (1) Inter-company revenues between VIEs and other subsidiaries VIEs sell certain products to other subsidiaries. For the years ended 31 December, 2019, 2020 and 2021, the inter-company sales recognized by VIEs to Equity subsidiaries are nil, RMB12.6 million and RMB131.3 million, respectively. And the inter-company sales recognized by VIEs to Primary beneficiary of VIEs and their subsidiaries for the year ended 31 December, 2019, 2020 and 2021 are nil, RMB13.4 million and RMB0.1 million, respectively. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include sales returns, inventory valuation, product warranties, share-based compensation, allowance for doubtful accounts and the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and British Virgin Islands are United States dollar (“US$”), while the functional currency of the Group’s entities in the PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiary in Hong Kong and British Virgin Islands, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, and incomes are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange (losses) gains, net in the consolidated statement of comprehensive income. ( e ) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2021 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB6.3726 on December 30, 2021 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 30, 2021, or at any other rate. (f ) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, and all highly liquid investments with original maturities of three months or less, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. ( g ) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets. Restricted cash is included in the total cash and cash equivalents and restricted cash in the consolidated statements of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Group’s restricted cash mainly represents security deposits held in designated bank accounts for issuance of bank acceptance notes. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( 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. On January 1, 2020, the Company adopted ASC326, “Financial Instruments—Credit Losses” using modified retrospective transition approach. The Group provides an allowance against accounts receivable to the amount management reasonably believe will be collected. The Group writes off trade receivable when they are deemed uncollectible. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. Accounts receivable have been grouped based on shared credit risk characteristics and days past due to estimate, taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors. ( k ) Inventories Inventories are stated at the lower of cost or net realizable value. Inventory costs are calculated on the actual cost basis including expenses that are directly or indirectly incurred in the purchase, and production of manufactured product. Expenses include the cost of materials, consignment manufacturing cost and other direct costs. Cost is determined using the weighted average method. The Group assesses the valuation of inventory and periodically writes down the value for 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 ) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities of more than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. ( m ) Property, plant and equipment, net Property, plant and equipment are carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives and residual value. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Estimated useful lives Residual rate Computers and equipment 2-10 years 0%-5% Vehicle 4 years 5% 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Property, plant and equipment, net (Continued) Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. Construction in progress represents property, plant and equipment under construction and pending installation and is stated at cost less accumulated impairment losses, if any. Completed assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use. Interest expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. ( n ) Land use rights Land use rights are recorded at cost less accumulated amortization and impairment, if any. Amortization is calculated on a straight-line basis over the estimated useful lives which are 50 years that represent the terms of land use rights certificate. ( o ) Intangible assets Intangible assets mainly consist of software and license. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Software 1 - 10 years License 3 - 10 years ( p ) 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 right-of-use assets and RMB9,168 of lease 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) (q ) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) and subsequently, the FASB issued several amendments which amend certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as “ASC 606”). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group will enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Group adopted ASC 606 for all periods presented. The Group’s revenue is primarily derived from (i) IoT Home portfolio including sweeper robots, air conditioning systems devices which are composed of efer to the value-added businesses 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, 2019, 2020 and 2021: Year ended December 31, 2019 2020 2021 RMB RMB RMB Sales to Xiaomi 2,112,170 2,889,441 2,295,569 —Xiaomi-branded products 1,859,499 2,560,787 2,021,117 —Viomi-branded products 250,593 326,114 274,452 —Rendering of services 2,078 2,540 - Sales to third-party customers 2,535,343 2,936,183 3,008,266 4,647,513 5,825,624 5,303,835 a) The Group generated a substantial portion of its revenues from sales of products to Xiaomi. Under the cooperation agreement entered into between the Group and Xiaomi, the Group is responsible for design, research, development, production and delivery of designated products using the brand name of “Xiaomi” (“Xiaomi-branded products”). Xiaomi is responsible for commercial distributions and sales. The Group also sells some Viomi-branded products to Xiaomi. Revenue is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue does not meet the criteria to be recognized over time since 1) even if the products use “Xiaomi” brand, it does not require significant rework to make them suitable to be sold to other customers, 2) under the cooperation agreement, the Group does not have the right of payment for the work performed to date. For a majority of types of products sold to this customer, the selling price is a fixed amount as agreed by both parties. For other types of products sold to this customer, the sales arrangement includes two installment payments. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( q ) Revenue recognition (Continued) The first installment is priced to recover the costs incurred by the Group in developing, producing and shipping the products to this customer and is payable to the Group upon acceptance by the customer after delivery. The Group is also entitled to receive a potential second installment payment calculated as certain portion of the future gross profits from commercial sales made by this customer. Accordingly, the Group determines the sales price as the fixed first installment payment plus the variable second installment payment to the extent that it is probable that revenue reversal will not occur when settling with the customer subsequently. The Group estimates the variable consideration using the expected value method. In assessing the variable second installment payment, the Group takes into consideration of the historical experience with the customer, selling price of the same or similar products as at the report date as well as the recent market trend. Water purifiers products were previously entitled to first quarter of 2020 In 2019, the Group entered into a cooperation arrangement with Xiaomi related to a certain type of products. Under the arrangement, the Group acts as an agent of Xiaomi to procure suppliers without obtaining the control, risks and rewards of the products during the whole process. The Group recognizes revenue of sales on a net basis for these products. This cooperation arrangement was terminated at the end of 2020. b) - Sales to 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( q ) Revenue recognition (Continued) Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling price. The standalone selling price of the products is determined based on adjusted market assessment approach by estimating the price the customer is willing to pay for the product without installation service. For the standalone selling price of the installation services, the Group determines it by referring to actual costs charged by the third-party vendors, plus an estimated profit margin of 5% based on consideration of both company specific and relevant market factors. The Group recognizes revenue for the sales to third-party customers in accordance with the applicable revenue recognition method for each of the distinct performance obligation identified. Sales of products is recognized upon acceptance by customers after delivery. Installation services revenues are recognized when the services are rendered. 2 ) Sales returns and sales incentives - Sales to leading e-commerce platforms The Group’s sales to leading e-commerce platforms started in 2018. As stipulated in the contracts, slow-moving goods are those unsold products after they are controlled by the e-commerce platforms for more than 30 days or 45 days or 60 days, depending on the different categories of products. The Group shall coordinate with the e-commerce platforms to sell the slowing-moving products to end customers through promotions within 30 or 60 days, otherwise, the e-commerce platforms can (i) return such slow-moving products, or (ii) sell on discount as determined by the e-commerce platforms. The Group shall bear all losses caused by such discounted sales. Based on the Group’s history of cooperation with the e-commerce platforms and the pattern that the e-commerce platforms dealt with slow-moving goods, the Group estimates that slow-moving goods will be returned to the Group instead of being sold through discounted sales by the e-commerce platforms. Under ASC 606, a right of return is not a separate performance obligation, but it affects the estimated transaction price for transferred goods. Revenue is only recognized for those products that are not expected to be returned. The estimate of expected returns should be determined in the same way as other variable consideration. Based on historical information and other relevant evidence, including the expected sales and inventory level of the e-commerce platforms, the Group assesses if it is probable there will be no significant reversal of cumulative revenue, and recognizes those sales as revenue. For the years ended December 31, 2019, 2020 and 2021, the expected sales return was RMB12,037, RMB6,820 and RMB5,593. Accordingly, the Group recognizes an expected return asset of RMB8,572, RMB4,106 and RMB3,189, and a refund liability of RMB13,602, RMB7,707 and RMB6,320 as of December 31, 2019, 2020 and 2021, 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, 2019, 2020 and 2021, the amount of sales return was insignificant. The Group may provide sales incentives in the forms of discounts to end customers through online platforms in a bundle transaction. Revenue, recognized on a net basis after such sales incentives, are allocated based on the relative standalone selling prices for respective products. 2. SIGNIFICANT ACCOUNTING POLICIES ( Continued) ( q ) Revenue recognition (Continued) 3) Warranty The Group offers product warranty pursuant to standard product quality required by consumer protection law. The warranty period is calculated starting from the date when products are sold to the end customers. The Group has the obligation, at the customer’s sole discretion, to either repair or replace the defective product. The customers cannot separately purchase the warranty and the warranty doesn’t provide the customer with additional service other than assurance that the product will function as expected. Therefore, these warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, an estimate of warranty expenses is recorded. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as cost of revenues. 4 ) Value added taxes Value added taxes (“VAT”) on sales is calculated at 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 taxpayers are allowed to offset qualified VAT paid against their output VAT liabilities. 5 ) Contract balances Key customers, including Xiaomi and third-party customers, are entitled to a credit term. The expected length of time between the products being transferred to customers and when they pay for those products is short. There is no difference between the amount of promised consideration and the cash selling price of the promised products. Therefore, the Group concludes that the contracts with these key customers generally do not include a significant financing component. The allowance for doubtful accounts reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The Group determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. The amount of the allowance for doubtful accounts is recognized as expenses. The opening balance of accounts receivable from these key customers as of January 1, 2020 was RMB 1,026,142. As of December 31, 2020 and 2021 accounts and notes receivable were RMB1,045,753 Contract liabilities consist of deferred revenue related to the Group’s provision of installation services and membership services, where there is still an obligation to be fulfilled by the Group. The contract liabilities will be recognized as revenue when all of the revenue recognition criteria are met. The opening balance of deferred revenue as of January 1, 2020 was RMB7,790. As of December 31, 2020 and 2021, deferred revenue were RMB5,719 ( r ) 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. ( s ) 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 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( t ) 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 RMB106,540, RMB102,719 and RMB173,642 for the years ended December 31, 2019, 2020 and 2021. The shipping expenses amounted to RMB245,329, RMB247,417 and RMB248,609 for the years ended December 31, 2019, 2020 and 2021, respectively. ( u ) 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. ( v ) 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 RMB35,988, RMB33,674 and RMB30,147 of subsidy income for the years ended December 31, 2019, 2020 ( w ) 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 RMB23,465, RMB 10,571 and RMB34,291 for the years ended December 31, 2019 ( x ) Share-based compensation Share-based compensation expenses arise from share -based awards, mainly including share options for the purchase of ordinary shares for the periods presented. The Company accounts for share-based awards granted to the employees in accordance with ASC 718 Stock Compensation. For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee share option exercise behavior, risk-free interest rates and expected dividends. The fair value of the ordinary shares is assessed using the income approach/discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the service period requirement, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( y ) 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 t |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2021 | |
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. Concentration risk of accounts and notes receivable from third parties are presented as below: As of December 31, 2020 2021 RMB RMB Company A 221,614 52 % 161,785 54 % Company B 164,518 38 % 37,776 12 % (b) Credit risk (Continued) Concentration risk of accounts receivable from a related party are presented as below: As of December 31, 2020 2021 RMB RMB Xiaomi 609,094 100 % 320,939 100 % Concentration risk of other receivables from related parties are presented as below: As of December 31, 2020 2021 RMB RMB Xiaomi 88,038 100 % 88,367 100 % (c) Revenue concentration risk Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi 2,112,170 45 % 2,889,441 50 % 2,295,569 43 % The revenue generated from Xiaomi included sale of both Xiaomi-branded and Viomi-branded products. Revenue from sale of Viomi-branded products amounted to RMB250,593, RMB326,114 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021 primarily consist of the following currencies: As of December 31, 2020 As of December 31, 2021 RMB RMB Amount equivalent Amount equivalent RMB 150,967 150,967 238,386 238,386 US$ 54,122 353,141 54,671 348,569 Total 504,108 586,955 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
RESTRICTED CASH | 5. RESTRICTED CASH As of December 31, 2020 and 2021, the Group held restricted cash of RMB70 ,601 and RMB35,831 respectively in designated bank accounts for issuance of bank acceptance notes. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 6 . SHORT-TERM INVESTMENTS Short-term investments represent structured deposits with maturities of less than one year. Short-term investments balance as of December 31, 2020 and 2021 is primarily denominated in the following currencies: As of December 31, 2020 As of December 31, 2021 RMB RMB Amount equivalent Amount equivalent US$ 12,045 78,594 - - RMB 617,457 617,457 828,867 828,867 Total 696,051 828,867 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 7 . INVENTORIES Inventories consisted of the followings: As of December 31, 2020 2021 RMB RMB Finished goods 311,316 422,627 Raw materials 128,059 153,724 Inventories 439,375 576,351 For the years ended December 31, 2019, 2020 and 2021, the Group recorded write-down of RMB15,661, RMB22,577 and RMB8,103 for obsolete inventories. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | 8 . PREPAID EXPENSES AND OTHER ASSETS As of December 31, 2020 2021 RMB RMB Advances to suppliers 66,421 106,666 Other receivables 17,732 48,322 Prepayment for equipment 13,870 18,493 Lease hold improvement 4,735 6,643 Expected return assets 4,106 3,189 Other current assets 219 135 Total 107,083 183,448 Less: non-current portion (19,803 ) (27,321 ) Prepaid expenses and other assets-current portion 87,280 156,127 |
Long-Term Deposits
Long-Term Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Deposits [Abstract] | |
Long-Term Deposits | 9 . LONG-TERM DEPOSITS Long-term deposits balance as of December 31, 2020 and 2021 is primarily denominated in RMB. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 1 0 . PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of December 31, 2020 2021 RMB RMB Construction in progress - 76,440 Computers and equipment 133,823 185,776 Vehicle 508 508 Total 134,331 262,724 Less: accumulated depreciation (61,895 ) (116,731 ) Property, plant and equipment, net 72,436 145,993 The Group had recorded depreciation expense of RMB15,427, RMB42,470 and RMB55,124 for the years ended December 31, 2019, 2020 and 2021, respectively. No impairment was recorded for the years ended December 31, 2019, 2020 and 2021. |
Land Use Rights, Net
Land Use Rights, Net | 12 Months Ended |
Dec. 31, 2020 | |
Land Use Rights Net [Abstract] | |
Land Use Rights, Net | 1 1 . LAND USE RIGHTS, NET In 2020, the Group obtained a land use right in Foshan from the local authorities. Amortization of the land use right is made over the remaining term of the land use right period from the date when the land was made available for use by the Group. The land use rights are summarized as follows: As of December 31, 2020 2021 RMB RMB Land use rights 63,618 63,618 Less: Accumulated amortization (636) (1,896) Land use right, net 62,982 61,722 The total amortization expense for the year ended December 31, 2020 and 2021 amounted to approximately RMB636 and RMB1,260. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 1 2 . ACCRUED EXPENSES AND OTHER LIABILITIES As of December 31, 2020 2021 RMB RMB Accrued payroll and welfare 83,190 95,816 Freight payable 70,656 68,197 Deposit from suppliers 30,755 27,483 Installation fee payables 25,714 18,957 Product warranty 22,420 28,796 Marketing and promotion expenses 18,476 25,709 Payment for purchase of property 15,624 17,647 Other tax payable 15,354 9,954 Professional fee payables 9,188 5,143 Refund liabilities 7,707 6,320 Other current liabilities 39,804 69,254 Total 338,888 373,276 Less: non-current portion (3,400 ) (7,558 ) Accrued expenses and other liabilities-current portion 335,488 365,718 Product warranty activities were as follows: Product Warranty RMB Balance at December 31, 2019 22,463 Provided during the year 88,375 Utilized during the year (88,418 ) Balance at December 31, 2020 22,420 Provided during the year 76,845 Utilized during the year (70,469 ) Balance at December 31, 2021 28,796 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE | 13 . REVENUE Year ended December 31, 2019 2020 2021 RMB RMB RMB Sales of product - IoT Home portfolio 2,522,189 3,671,717 3,400,966 - Home water solutions 1,065,166 883,325 742,912 - Consumables 265,844 382,896 367,021 - Small appliances and other products 741,290 792,965 708,260 Total of sales of products 4,594,489 5,730,903 5,219,159 Rendering of services 53,024 94,721 84,676 Total 4,647,513 5,825,624 5,303,835 |
Income Tax Expenses
Income Tax Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSES | 1 4 . INCOME TAX EXPENSES Cayman Islands Under the current tax laws of the Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group in Hong Kong are subject to 8.25% and 16.5% Hong Kong profit tax on its taxable income within HKD$2 million and beyond HKD$2 million respectively, generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The subsidiaries and VIEs of the Group in the PRC are subject to a uniform income tax rate of 25% for years presented except for the entities which are qualified to certified High and New Technology Enterprises (“HNTE”) that are entitled to a favorable statutory tax rate of 15%. According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deduction has been increased from 50% of the qualified research and development expenses to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018. The additional tax deduction has been increased from 75% of the qualified research and development expenses to 100%, effective from 2021, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in May 2021(“Super Deduction”). Withholding tax on undistributed dividends Under the CIT Law and its implementation rules, the profits of a foreign-invested enterprise arising in 2008 and thereafter that are distributed to its immediate holding company outside the PRC are subject to withholding tax at a rate of 10%. A lower withholding tax rate will be applied if there is a beneficial tax treaty between the PRC and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be eligible, with approval of the PRC local tax authority, to be subject to a 5% withholding tax rate under the Arrangement Between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital if such holding company is considered to be a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign-invested enterprise distributing the dividends. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to withholding tax at a rate of 10%. Aggregate undistributed earnings of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2020 and 2021 are approximately RMB827,531 and RMB , respectively. 20 2021 1 4 . INCOME TAX EXPENSES (Continued) Composition of income tax expense The current and deferred components of income taxes appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB Current tax expenses 52,232 44,813 26,854 Deferred tax benefit (7,042 ) (1,492 ) (21,115 ) Income tax expenses 45,190 43,321 5,739 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, 2019 2020 2021 RMB RMB RMB Income from operations in the PRC 321,090 200,941 89,126 Income from overseas entities 17,930 16,826 5,504 Income before income tax 339,020 217,767 94,630 Tax expense at PRC enterprise income tax rate of 25% 84,755 54,442 23,658 Income tax on tax holiday (1) (31,493 ) (31,074 ) (16,872 ) Tax effect of permanent differences (2) (12,147 ) (16,895 ) (28,303 ) Change in valuation allowance (3) 1,592 29,780 22,153 Effect of share-based compensation 6,475 10,830 7,111 Effect of income tax in jurisdictions other than the PRC (3,992 ) (3,762 ) (2,008 ) Income tax expenses 45,190 43,321 5,739 (1) The income tax on tax holidays represents the effect of preferential income tax rate enjoyed by Foshan Viomi, Guangdong Lizi and Yunmi Hulian. Foshan Viomi was qualified as an HNTE and enjoyed the beneficial tax rate of 15% for the three years ended December 31, 2019, 2020 and 2021. Foshan Viomi will need to re-apply for HNTE qualification renewal in 2022. The Company believed that Foshan Viomi can successfully obtain the renewal in 2022. Guangdong Lizi (2) The permanent book-tax differences mainly consisted of R&D super deductions. ( 3 ) Valuation allowance for the years ended December 31, 2019, 2020 and 2021 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, 2019 2020 2021 RMB RMB RMB Net income per share effect – basic 0.13 0.14 0.02 Net income per share effect – diluted 0.13 0.13 0.02 14 . INCOME 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, 2020 2021 RMB RMB Accrued expenses and others 12,466 18,567 Net operating loss carry forwards 32,985 69,852 Inventories write downs 1,463 985 Deferred income 201 161 Total deferred tax assets 47,115 89,565 Less: valuation allowance (32,926 ) (54,261 ) Deferred tax assets, net 14,189 35,304 Movement of valuation allowance Year ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the year 1,554 3,146 32,926 Provided 1,592 29,780 21,335 Balance at end of the year 3,146 32,926 54,261 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, 2019 and 2020, 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, 2021 | |
Equity [Abstract] | |
ORDINARY SHARES | 1 5 . 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 authorized and outstanding ordinary shares and preferred shares, par value of $0.0001 each, was divided into ten ordinary shares and preferred shares of the same series, par value US$0.00001 each, respectively. All shareholders then surrendered 90% of their after-share-split outstanding shares back to the Company for cancellation. After the share split and the surrender of shares for cancellation, the number of the Company’s outstanding ordinary and preferred shares remained unchanged. The par value per ordinary share has been retroactively revised as if it had been adjusted proportion to the share split. 1 5 . 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 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. During the year ended December 31, 2020, 2,655,669 Class A Ordinary Shares were issued for the exercised share options. In addition, 7,295,454 Class B Ordinary Shares were converted into Class A Ordinary Shares. In March 2020, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$10,000 worth of its ADSs over the following 12 months. The share repurchase may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by the management. During the year ended December 31, 2020, the Company had repurchased 1,410,723 ADSs (equal to 4,232,169 Class A ordinary shares) for a consideration of US$8,030 on the open market, at a weighted average price of US$5.69 per ADS. The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the shareholders’ equity. As of December 31, 2020, the Company had 104,163,686 Class A Ordinary Shares and 103,554,546 Class B Ordinary Shares outstanding, respectively. During the year ended December 31, 2021, 3,011,064 Class A Ordinary Shares were issued for the exercised share options. In addition, 339,999 Class B Ordinary Shares were converted into Class A Ordinary Shares. Moreover, 1,997,970 Class A Ordinary Shares were repurchased by the Group. As of December 31, 2021, the Company had 105,516,779 Class A Ordinary Shares and 103,214,547 Class B Ordinary Shares outstanding, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 1 6 . SHARE-BASED COMPENSATION Compensation expense recognized for share-based awards was as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB Share-based compensation expenses —Share options (a) 43,168 72,203 47,405 ( a ) Share options On September 17, 2015, the Board of Directors of the Company approved the establishment of 2015 Share Incentive Plan, the purpose of which is to provide an incentive for employees contributing to the Group. The 2015 Share Incentive Plan shall be valid and effective for 10 years from the grant date. The maximum number of shares that may be issued pursuant to all awards (including incentive share options) under 2015 Share Incentive Plan shall be 12,727,272 shares. In June 2018, the Board of Directors and shareholders of the Company approved the 2018 Share Incentive Plan. As of December 31, 2021, the maximum of shares that may be issued under the 2018 Share Incentive Plan was 23,920,828. For the year ended December 31, 2019, no share options were granted to employees. For the year ended December 31, 2020, the Company granted 19,175,500 share options to employees pursuant to the 2018 Share Incentive Plan. With respect to the share options granted, 40% of the options will be vested after 24 months of the grant date and the remaining 60% will be vested in three equal installments over the following 36 months. For the year ended December 31, 2021, the Company granted 38,400,000 share options to employees pursuant to the 2018 Share Incentive Plan. Among which, with respect to the share options granted, 40% of the options will be vested after 24 months of the vesting commencement date and the remaining 60% will be vested in three equal installments over the following 36 months. 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 2020 and 2021 are summarized in the following table: Year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 292,170 173,324 88,605 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 208,156,507 208,812,049 209,551,821 Dilutive effect of share options 7,699,070 6,811,724 11,184,176 Denominator for diluted calculation 215,855,577 215,623,773 220,735,997 Basic net income per ordinary share 1.40 0.83 0.42 Diluted net income per ordinary share 1.35 0.80 0.40 Year ended December 31, 2020 2021 Risk-free interest rate 2.20%~3.30% 2.88%~3.19% Expected volatility 41.30%~43.62% 42.93%~43.41% Expected life of option (years) 10 10 Expected dividend yield - - Fair value per ordinary share US$1.04~US$1.47 US$0.84~US$2.25 1 6 . 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. 1 6 . SHARE-BASED COMPENSATION (Continued) A summary of the stock option activity under the 2015 Share Incentive Plan and 2018 Share Incentive Plan for the years ended December 31, 2019, 2020 and 2021 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, 2019 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 Granted 19,175,500 0.86 Forfeited (1,778,500 ) 0.60 Exercised (2,655,669 ) 0.48 Outstanding at December 31, 2020 26,106,599 0.74 8.08 30,299 Granted 3,840,000 1.10 Forfeited (4,709,197 ) 0.81 Exercised (3,011,064 ) 0.43 Outstanding at December 31, 2021 22,226,338 0.80 7.41 26,813 Exercisable as of December 31, 2021 7,801,637 0.47 6.02 9,928 Expected to vest as of December 31, 2021 13,046,881 0.97 8.16 15,362 The weighted average grant date fair value of options granted for the years ended December 31, 2020 and 2021 was RMB8.31 (US$1.27) and RMB11.56 (US$1.73) per option, respectively. As of December 31, 2020 and 2021, there was RMB99,975 and RMB53,652 of unrecognized compensation expenses related to the options, respectively. ( b) Restricted shares to an investee As described in note 1, the Group established Guangdong Lizi in July 2018 as a subsidiary of the Company. In November 2020, following the Group’s restructing plan on its water purifiers business, the Group entered into an agreement with Sunglow to sell 1% of equity interest of Guangdong Lizi for a consideration of RMB175. Sunglow has paid up the consideration in December 2021 but is not entitled to any shareholder’s rights of Guangdong Lizi until the fulfilment of certain conditions pursuant to the supplemental agreement in November 2021. Under the requirement of ASC 718, the Group should recognize share-based compensation if there is a difference between the fair value of Guangdong Lizi’s 1% of equity interest and the consideration paid up by Sunglow on the date of capital injection. As of December 31, 2021, there were RMB10,284 of unrecognized compensation expenses related to restricted shares granted to Sunglow for which the performance conditions had not been met and are expected to be recognized when the performance conditions are achieved |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 1 7 . 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. Year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 292,170 173,324 88,605 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 208,156,507 208,812,049 209,551,821 Dilutive effect of share options 7,699,070 6,811,724 11,184,176 Denominator for diluted calculation 215,855,577 215,623,773 220,735,997 Basic net income per ordinary share 1.40 0.83 0.42 Diluted net income per ordinary share 1.35 0.80 0.40 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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 are governed by a business cooperation agreement, pursuant to which Xiaomi is responsible for the distribution and sales of such products through their network and sales channels. The Group also sells products through Xiaomi’s online e-commerce channel Xiaomiyoupin.com, and is charged of commissions pursuant to a commission sales agreement. Transaction with Xiaomi Business cooperation agreement The current business corporation agreement entered into in 2019 with Xiaomi governs all the Group’s sales to Xiaomi. It expired in September 2021 and has been renewed up to September 2023. Under the business cooperation agreement, (i) certain products sold to Xiaomi are exclusively designed for and can only be sold to Xiaomi, (ii) Xiaomi shall purchase these products at a price that covers all of the Group’s costs of raw materials, outsourcing manufacture, models, logistics and paid intellectual property licensing fees, in connection with the manufacture and delivery of these products, and (iii) Xiaomi and the Group shall share gross profits, derived from sales of these products, the retail prices of which were set by Xiaomi and the Group together. In 2019, the Group has entered into a service arrangement with Xiaomi for a particular type of product under which the Group acts as the agent of Xiaomi. The Group charges Xiaomi with reference to market price. This service arrangement was terminated at the end of 2020. 18 . RELATED PARTY TRANSACTIONS (Continued) Youpin commission sales agreement The Group has entered into a commission sales agreement with Xiaomi for the sale of the Group’s own branded products on an E-platform operated by Xiaomi, namely Youpin. The commission sales agreement expired on December 31, 2021. The agreement has been renewed in 2022 and the end date will be determined through further negotiations. Furthermore, this agreement may be terminated by Xiaomi with 30 days’ written notice. Under the commission sales agreement, the Group shall pay a service fee, calculated as certain portion of the sales price excluding customers’ refunds or as otherwise agreed by the parties with respect to specific product lines, as well as a deposit to Xiaomi. The retail prices of the Group’s products on Youpin’s platform shall be no higher than the sales price from any other e-commerce merchants or the Group’s official offline sales channel, including in the event of sales or promotion. Refer to Note 18 (5) to the consolidated financial statements for the commission expenses charged by Youpin for the years ended December 31, 2019, 2020 and 2021. (1) Amount due from/to related parties As of December 31, 2020 2021 RMB RMB Accounts receivable from a related party: Xiaomi (a) 609,094 320,939 Other receivables from related parties: Sales receivable from Xiaomi (b) 88,029 88,331 Other receivables from Xiaomi 9 36 Total 88,038 88,367 Amounts due to related parties: Purchase payable to Xiaomi (a) 2,463 3,537 Purchase payable to Foshan Wanwuhulian (c) 121,321 - Research and development expenses payable to Xiaomi 408 715 Selling and marketing expenses payable to Xiaomi (d) - 1,163 Total 124,192 5,415 (2) Purchase from related parties Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi (a) 43,037 50,843 33,767 Foshan Wanwuhulian (c) 15,422 469,950 - Total 58,459 520,793 33,767 (3) Revenue from a related party Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi (a) 2,112,170 2,889,441 2,295,569 (4) Research and development expenses Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi 657 1,915 3,484 1 8 . RELATED PARTY TRANSACTIONS (Continued) ( 5 ) Selling and marketing expenses Year ended December 31, 2019 2020 2021 RMB RMB RMB Commission expenses charged by Xiaomi (b) 58,874 77,163 82,617 Other expenses charged by Xiaomi (b) 22,977 20,060 24,312 Total 81,851 97,223 106,929 (a) The Group both sells water purifiers and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi. The amount due from Xiaomi represents receivable arising from sales of water purifiers and other products. The balance due to Xiaomi represents payable arising from purchase of Xiaomi branded products and certain raw materials (b) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group commission and technical service fees, also Xiaomi ( c ) The Group purchases products from Foshan Wanwuhulian for trading during the year ended December 31, 2020. ( d ) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group customer service fees. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021 except for short-term investments (Note 6). The following table summarizes the Group’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2020 and 2021: Level 1 Level 2 Level 3 Total As of December 31, 2021 Short-term investments (i) — 828,867 — 828,867 As of December 31, 2020 Short-term investments (i) — 696,051 — 696,051 (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, 2021 | |
Leases [Abstract] | |
LEASES | 2 0 . LEASES The Group’s operating leases are principally for office space, facilities and self-run offline stores. At December 31, 2021, The Group’s operating leases had a weighted average discount rate of 4.75% and a weighted-average remaining lease term of 1.5 years. The components of lease expense were as follows: Year ended December 31, 2020 2021 Lease cost Operating lease expense 9,472 12,065 Short-term lease expense (i) 876 2,382 Total lease cost 10,348 14,447 (i) Includes leases with a term of one year or less. Supplemental cash flow information for leases was as follows: Year ended December 31, 2020 2021 Operating cash flows relating to operating leases 10,203 14,765 Lease liabilities arising from obtaining right-of-use assets 7,890 16,835 2 0 . LEASES (Continued) As of December 31, 2021, the aggregate future minimum rental payments under non-cancelable agreement were as follows: Rental RMB 2022 15,619 2023 10,837 2024 and after 244 Total future minimum rental payment 26,700 Less amount representing imputed interest (7,792 ) Present value of future minimum rental payments 18,908 Less current portion, recorded in other current liabilities (11,312 ) Long-term lease liabilities, recorded in other long-term liabilities 7,596 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 21 . COMMITMENTS AND CONTINGENCIES ( a ) Operating lease commitments As of December 31, 2021, future minimum commitments under non-cancelable agreements were as follows: Rental RMB 2022 484 The operating commitments as of December 31, 2021 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. (b) Capital and other commitment Capital expenditures contracted for at the balance sheet dates but not recognized in the consolidated financial statements are as follows: Year ended December 31, 2020 2021 Property, plant and equipment — 116,527 (c) Legal proceedings From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the Group’s financial position and results of operations for the periods in which the unfavorable outcome occurs. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Restricted Net Assets | 2 2 . 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 PRC GAAP amounted to RMB61,852 and RMB112,603 as of December 31, 2010 and 2021. 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, 2021, 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, 2021 and the condensed financial information of the Company are not required to be presented. Cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily restrict the ability of the PRC subsidiaries and VIEs to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligation. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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, allowance for doubtful accounts and the valuation allowance for deferred tax assets and income tax. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. |
Foreign currency translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and British Virgin Islands are United States dollar (“US$”), while the functional currency of the Group’s entities in the PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiary in Hong Kong and British Virgin Islands, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, and incomes are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange (losses) gains, net in the consolidated statement of comprehensive income. |
Convenience Translation | ( e ) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2021 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB6.3726 on December 30, 2021 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 30, 2021, or at any other rate. |
Cash and cash equivalents | (f ) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, and all highly liquid investments with original maturities of three months or less, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. |
Restricted cash | ( g ) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets. Restricted cash is included in the total cash and cash equivalents and restricted cash in the consolidated statements of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Group’s restricted cash mainly represents security deposits held in designated bank accounts for issuance of bank acceptance notes. |
Short-term deposits | ( h ) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income 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. On January 1, 2020, the Company adopted ASC326, “Financial Instruments—Credit Losses” using modified retrospective transition approach. The Group provides an allowance against accounts receivable to the amount management reasonably believe will be collected. The Group writes off trade receivable when they are deemed uncollectible. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. Accounts receivable have been grouped based on shared credit risk characteristics and days past due to estimate, taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors. |
Inventories | ( k ) Inventories Inventories are stated at the lower of cost or net realizable value. Inventory costs are calculated on the actual cost basis including expenses that are directly or indirectly incurred in the purchase, and production of manufactured product. Expenses include the cost of materials, consignment manufacturing cost and other direct costs. Cost is determined using the weighted average method. The Group assesses the valuation of inventory and periodically writes down the value for 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. |
Long-term deposits | ( l ) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities of more than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. |
Property, plant and equipment, net | ( m ) Property, plant and equipment, net Property, plant and equipment are carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives and residual value. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Estimated useful lives Residual rate Computers and equipment 2-10 years 0%-5% Vehicle 4 years 5% 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Property, plant and equipment, net (Continued) Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. Construction in progress represents property, plant and equipment under construction and pending installation and is stated at cost less accumulated impairment losses, if any. Completed assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use. Interest expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. |
Land use rights | ( n ) Land use rights Land use rights are recorded at cost less accumulated amortization and impairment, if any. Amortization is calculated on a straight-line basis over the estimated useful lives which are 50 years that represent the terms of land use rights certificate. |
Intangible assets | ( o ) Intangible assets Intangible assets mainly consist of software and license. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Software 1 - 10 years License 3 - 10 years |
Leases | ( p ) 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 right-of-use assets and RMB9,168 of lease 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 | (q ) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) and subsequently, the FASB issued several amendments which amend certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as “ASC 606”). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group will enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Group adopted ASC 606 for all periods presented. The Group’s revenue is primarily derived from (i) IoT Home portfolio including sweeper robots, air conditioning systems devices which are composed of efer to the value-added businesses 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, 2019, 2020 and 2021: Year ended December 31, 2019 2020 2021 RMB RMB RMB Sales to Xiaomi 2,112,170 2,889,441 2,295,569 —Xiaomi-branded products 1,859,499 2,560,787 2,021,117 —Viomi-branded products 250,593 326,114 274,452 —Rendering of services 2,078 2,540 - Sales to third-party customers 2,535,343 2,936,183 3,008,266 4,647,513 5,825,624 5,303,835 a) The Group generated a substantial portion of its revenues from sales of products to Xiaomi. Under the cooperation agreement entered into between the Group and Xiaomi, the Group is responsible for design, research, development, production and delivery of designated products using the brand name of “Xiaomi” (“Xiaomi-branded products”). Xiaomi is responsible for commercial distributions and sales. The Group also sells some Viomi-branded products to Xiaomi. Revenue is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi. Revenue does not meet the criteria to be recognized over time since 1) even if the products use “Xiaomi” brand, it does not require significant rework to make them suitable to be sold to other customers, 2) under the cooperation agreement, the Group does not have the right of payment for the work performed to date. For a majority of types of products sold to this customer, the selling price is a fixed amount as agreed by both parties. For other types of products sold to this customer, the sales arrangement includes two installment payments. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( q ) Revenue recognition (Continued) The first installment is priced to recover the costs incurred by the Group in developing, producing and shipping the products to this customer and is payable to the Group upon acceptance by the customer after delivery. The Group is also entitled to receive a potential second installment payment calculated as certain portion of the future gross profits from commercial sales made by this customer. Accordingly, the Group determines the sales price as the fixed first installment payment plus the variable second installment payment to the extent that it is probable that revenue reversal will not occur when settling with the customer subsequently. The Group estimates the variable consideration using the expected value method. In assessing the variable second installment payment, the Group takes into consideration of the historical experience with the customer, selling price of the same or similar products as at the report date as well as the recent market trend. Water purifiers products were previously entitled to first quarter of 2020 In 2019, the Group entered into a cooperation arrangement with Xiaomi related to a certain type of products. Under the arrangement, the Group acts as an agent of Xiaomi to procure suppliers without obtaining the control, risks and rewards of the products during the whole process. The Group recognizes revenue of sales on a net basis for these products. This cooperation arrangement was terminated at the end of 2020. b) - Sales to 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. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( q ) Revenue recognition (Continued) Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling price. The standalone selling price of the products is determined based on adjusted market assessment approach by estimating the price the customer is willing to pay for the product without installation service. For the standalone selling price of the installation services, the Group determines it by referring to actual costs charged by the third-party vendors, plus an estimated profit margin of 5% based on consideration of both company specific and relevant market factors. The Group recognizes revenue for the sales to third-party customers in accordance with the applicable revenue recognition method for each of the distinct performance obligation identified. Sales of products is recognized upon acceptance by customers after delivery. Installation services revenues are recognized when the services are rendered. 2 ) Sales returns and sales incentives - Sales to leading e-commerce platforms The Group’s sales to leading e-commerce platforms started in 2018. As stipulated in the contracts, slow-moving goods are those unsold products after they are controlled by the e-commerce platforms for more than 30 days or 45 days or 60 days, depending on the different categories of products. The Group shall coordinate with the e-commerce platforms to sell the slowing-moving products to end customers through promotions within 30 or 60 days, otherwise, the e-commerce platforms can (i) return such slow-moving products, or (ii) sell on discount as determined by the e-commerce platforms. The Group shall bear all losses caused by such discounted sales. Based on the Group’s history of cooperation with the e-commerce platforms and the pattern that the e-commerce platforms dealt with slow-moving goods, the Group estimates that slow-moving goods will be returned to the Group instead of being sold through discounted sales by the e-commerce platforms. Under ASC 606, a right of return is not a separate performance obligation, but it affects the estimated transaction price for transferred goods. Revenue is only recognized for those products that are not expected to be returned. The estimate of expected returns should be determined in the same way as other variable consideration. Based on historical information and other relevant evidence, including the expected sales and inventory level of the e-commerce platforms, the Group assesses if it is probable there will be no significant reversal of cumulative revenue, and recognizes those sales as revenue. For the years ended December 31, 2019, 2020 and 2021, the expected sales return was RMB12,037, RMB6,820 and RMB5,593. Accordingly, the Group recognizes an expected return asset of RMB8,572, RMB4,106 and RMB3,189, and a refund liability of RMB13,602, RMB7,707 and RMB6,320 as of December 31, 2019, 2020 and 2021, 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, 2019, 2020 and 2021, the amount of sales return was insignificant. The Group may provide sales incentives in the forms of discounts to end customers through online platforms in a bundle transaction. Revenue, recognized on a net basis after such sales incentives, are allocated based on the relative standalone selling prices for respective products. 2. SIGNIFICANT ACCOUNTING POLICIES ( Continued) ( q ) Revenue recognition (Continued) 3) Warranty The Group offers product warranty pursuant to standard product quality required by consumer protection law. The warranty period is calculated starting from the date when products are sold to the end customers. The Group has the obligation, at the customer’s sole discretion, to either repair or replace the defective product. The customers cannot separately purchase the warranty and the warranty doesn’t provide the customer with additional service other than assurance that the product will function as expected. Therefore, these warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, an estimate of warranty expenses is recorded. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. Warranty reserves are recorded as cost of revenues. 4 ) Value added taxes Value added taxes (“VAT”) on sales is calculated at 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 taxpayers are allowed to offset qualified VAT paid against their output VAT liabilities. 5 ) Contract balances Key customers, including Xiaomi and third-party customers, are entitled to a credit term. The expected length of time between the products being transferred to customers and when they pay for those products is short. There is no difference between the amount of promised consideration and the cash selling price of the promised products. Therefore, the Group concludes that the contracts with these key customers generally do not include a significant financing component. The allowance for doubtful accounts reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The Group determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. The amount of the allowance for doubtful accounts is recognized as expenses. The opening balance of accounts receivable from these key customers as of January 1, 2020 was RMB 1,026,142. As of December 31, 2020 and 2021 accounts and notes receivable were RMB1,045,753 Contract liabilities consist of deferred revenue related to the Group’s provision of installation services and membership services, where there is still an obligation to be fulfilled by the Group. The contract liabilities will be recognized as revenue when all of the revenue recognition criteria are met. The opening balance of deferred revenue as of January 1, 2020 was RMB7,790. As of December 31, 2020 and 2021, deferred revenue were RMB5,719 |
Cost of revenues | ( r ) 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 | ( s ) 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 | ( t ) 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 RMB106,540, RMB102,719 and RMB173,642 for the years ended December 31, 2019, 2020 and 2021. The shipping expenses amounted to RMB245,329, RMB247,417 and RMB248,609 for the years ended December 31, 2019, 2020 and 2021, respectively. |
General and administrative expenses | ( u ) 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 | ( v ) 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 RMB35,988, RMB33,674 and RMB30,147 of subsidy income for the years ended December 31, 2019, 2020 |
Employee benefits | ( w ) 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 RMB23,465, RMB 10,571 and RMB34,291 for the years ended December 31, 2019 |
Share-based compensation | ( x ) Share-based compensation Share-based compensation expenses arise from share -based awards, mainly including share options for the purchase of ordinary shares for the periods presented. The Company accounts for share-based awards granted to the employees in accordance with ASC 718 Stock Compensation. For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee share option exercise behavior, risk-free interest rates and expected dividends. The fair value of the ordinary shares is assessed using the income approach/discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the service period requirement, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. |
Income taxes | ( y ) 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, 2019, 2020 and 2021. As of December 31, 2020 and 2021, the Group did not have any significant unrecognized uncertain tax positions. |
Comprehensive income | ( z ) 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 | ( aa ) Statutory reserves The Company's subsidiaries and VIEs established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Company's subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their annual after-tax profits (as determined under generally accepted accounting principles in the PRC(“PRC GAAP”)) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the annual after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company's discretion. In addition, in accordance with the PRC Company Laws, the Group's VIEs registered as Chinese domestic company must make appropriations from its annual after-tax profits as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the annual after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund are a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of all employees. None of these reserves are allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( aa ) Statutory reserves (Continued) During the years ended December 31, 2019, 2020 and 2021, appropriations to statutory reserve funds amounted to RMB1,047, RMB3,464 and RMB1,756, respectively. Statutory reserve funds amounting to RMB10,761 and RMB12,517 were recognized in additional paid-in capital as of December 31, 2020 and 2021, respectively. |
Income per share | ( bb ) Income per share Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Net losses are not allocated to other participating securities if based on their contractual terms they are not obligated to share the losses. Diluted income per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted income per share calculation when inclusion of such shares would be anti-dilutive. |
Related parties | ( cc ) 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 | ( dd ) Segment reporting Based on the criteria established by ASC 280 “Segment Reporting”, the Group's chief operating decision maker has been identified as the Chairman of the Board of Directors/CEO, who reviews consolidated results of the Group when making decisions about allocating resources and assessing performance. The Group has internal reporting of revenue, cost and expenses by nature as a whole. Hence, the Group has only one operating segment. The Company is domiciled in the Cayman Islands while the Group mainly operates its businesses in the PRC and earns a great majority of the revenues from external customers attributed to the PRC. |
Current expected credit losses | ( ee ) Current expected credit losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Group adopted this ASC Topic 326 and several associated ASUs on January 1, 2020 using a modified retrospective approach with a cumulative effect increase of RMB2,826, recorded in accumulated deficit. The Group’s accounts and notes receivable and other receivables from related parties and third parties are within the scope of ASC Topic 326. The Group has identified the relevant risk characteristics of its customers and the related accounts and notes receivable and other receivables based on their credit rating. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Group’s receivables. Additionally, macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. For the year ended December 31, 2020 and 2021, the Group recorded expected credit loss of RMB4,484 and RMB25,541, respectively in general and administrative expenses. As of December 31, 2020 and 2021, the expected credit loss provision for the accounts and notes receivable and other receivables is RMB9,316 and RMB34,857, respectively. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( ee ) Current expected credit losses (Continued) The following table summarizes the activity in the allowance for credit losses related to accounts and notes receivable and other receivables from related parties for the year ended December 31, 2021: Year ended December 31, 2020 2021 RMB RMB Balance at beginning of the year 4,832 9,316 Current year provision 5,015 29,343 Reversals (531 ) (3,802 ) Balance at end of the year 9,316 34,857 |
Recently issued accounting pronouncements | ( ff ) Recently issued accounting pronouncements In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The Group is currently evaluating the impact of the new guidance on our consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Group is currently evaluating the impact of the new guidance on our consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Principal Subsidiaries and VIEs | As of December 31, 2021, 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 Codream HK Hong Kong August 20, 2019 100% Investment holding Yunmi Hulian PRC December 9, 2019 100% Investment holding Zhumeng Hulian PRC October 14, 2020 100% Investment holding Guangdong Lizi PRC July 26, 2018 100% Home appliance development and sales Guangzhou interconnect Technology Co., Ltd. PRC December 7, 2020 100% Home appliance development and sales VIEs: Foshan Viomi PRC May 6, 2014 100% Home appliance development and sales Beijing Viomi PRC January 12, 2015 100% No substantial business Subsidiaries of Foshan Viomi: Guangdong AI Touch Technology Co., Ltd. (“AI Touch”) PRC January 30, 2019 VIE’s subsidiary Home appliance development and sales Foshan Xiaoxian Hulian Electric Appliances Technology Co., Ltd. (“Foshan Xiaoxian”) PRC October 12, 2016 VIE’s subsidiary Home appliance development and sales |
Schedule of Financial Statement Amounts and Balances of VIEs | The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and its subsidiaries taken as a whole on an aggregated basis, which were included in the Group’s consolidated financial statements. For purposes of this presentation, activity within and between the VIEs and their subsidiaries have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination. Presentation of the comparative data for 2019 and 2020 have been expanded to conform to the current year presentation. As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 338,748 353,554 Short-term investments 579,457 820,344 Accounts receivable from third parties 412,118 204,769 Accounts receivable from a related party 609,094 320,939 Inventories 392,574 362,385 Amount due from Group companies 106,956 232,203 Other assets 395,941 383,569 Total assets 2,834,888 2,677,763 Accounts and notes payable 860,454 545,966 Accrued expenses and other liabilities* 302,256 292,388 Amount due to Group companies 480,058 824,304 Other liabilities 293,413 122,508 Total liabilities 1,936,181 1,785,166 * The amount of accrued expenses and other liabilities of VIEs as of December 31, 2020 has been revised to correct an error in previously issued annual financial statements included in our Form 20-F for the year ended December 31, 2020. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) (c) VIE Arrangements between the VIEs and the Company’s PRC subsidiary (Continued) Year ended December 31, 2019 2020 2021 RMB RMB RMB Revenue from Group companies (1) — 25,994 131,379 Revenue from a related party and third parties 4,647,513 5,790,475 4,859,414 Cost from Group companies — 214,289 1,291,468 Cost from a related party and third parties 3,565,109 4,556,588 2,870,809 Net income/(loss) 276,426 152,908 (60,908 ) Net cash used in operating activities with Group companies — (162,243 ) (794,936 ) Net cash provided by operating activities with third parities 240,823 218,030 1,248,860 Net cash used in investing activities with Group companies (1,482 ) (30,404 ) (83,325 ) Net cash used in investing activities with third parties (97,702 ) (490,270 ) (233,934 ) Net cash provided by/(used in) financing activities with Group companies 161,722 154,557 (156,406 ) Net cash (used in)/provided by financing activities with third parties 95,933 (98,390 ) — (1) Inter-company revenues between VIEs and other subsidiaries VIEs sell certain products to other subsidiaries. For the years ended 31 December, 2019, 2020 and 2021, the inter-company sales recognized by VIEs to Equity subsidiaries are nil, RMB12.6 million and RMB131.3 million, respectively. And the inter-company sales recognized by VIEs to Primary beneficiary of VIEs and their subsidiaries for the year ended 31 December, 2019, 2020 and 2021 are nil, RMB13.4 million and RMB0.1 million, respectively. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 1 - 10 years License 3 - 10 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, 2019, 2020 and 2021: Year ended December 31, 2019 2020 2021 RMB RMB RMB Sales to Xiaomi 2,112,170 2,889,441 2,295,569 —Xiaomi-branded products 1,859,499 2,560,787 2,021,117 —Viomi-branded products 250,593 326,114 274,452 —Rendering of services 2,078 2,540 - Sales to third-party customers 2,535,343 2,936,183 3,008,266 4,647,513 5,825,624 5,303,835 |
Schedule of Activity in Allowance for Credit Losses Related to Accounts and Notes Receivable and Other Receivables from Related Parties | The following table summarizes the activity in the allowance for credit losses related to accounts and notes receivable and other receivables from related parties for the year ended December 31, 2021: Year ended December 31, 2020 2021 RMB RMB Balance at beginning of the year 4,832 9,316 Current year provision 5,015 29,343 Reversals (531 ) (3,802 ) Balance at end of the year 9,316 34,857 |
Concentration and Risks (Tables
Concentration and Risks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Risk | |
Concentration Risk [Line Items] | |
Summary of Concentration of Risk | Concentration risk of accounts and notes receivable from third parties are presented as below: As of December 31, 2020 2021 RMB RMB Company A 221,614 52 % 161,785 54 % Company B 164,518 38 % 37,776 12 % Concentration risk of accounts receivable from a related party are presented as below: As of December 31, 2020 2021 RMB RMB Xiaomi 609,094 100 % 320,939 100 % Concentration risk of other receivables from related parties are presented as below: As of December 31, 2020 2021 RMB RMB Xiaomi 88,038 100 % 88,367 100 % |
Revenue Concentration Risk | |
Concentration Risk [Line Items] | |
Summary of Concentration of Risk | Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi 2,112,170 45 % 2,889,441 50 % 2,295,569 43 % |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021 primarily consist of the following currencies: As of December 31, 2020 As of December 31, 2021 RMB RMB Amount equivalent Amount equivalent RMB 150,967 150,967 238,386 238,386 US$ 54,122 353,141 54,671 348,569 Total 504,108 586,955 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021 is primarily denominated in the following currencies: As of December 31, 2020 As of December 31, 2021 RMB RMB Amount equivalent Amount equivalent US$ 12,045 78,594 - - RMB 617,457 617,457 828,867 828,867 Total 696,051 828,867 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the followings: As of December 31, 2020 2021 RMB RMB Finished goods 311,316 422,627 Raw materials 128,059 153,724 Inventories 439,375 576,351 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | As of December 31, 2020 2021 RMB RMB Advances to suppliers 66,421 106,666 Other receivables 17,732 48,322 Prepayment for equipment 13,870 18,493 Lease hold improvement 4,735 6,643 Expected return assets 4,106 3,189 Other current assets 219 135 Total 107,083 183,448 Less: non-current portion (19,803 ) (27,321 ) Prepaid expenses and other assets-current portion 87,280 156,127 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 RMB RMB Construction in progress - 76,440 Computers and equipment 133,823 185,776 Vehicle 508 508 Total 134,331 262,724 Less: accumulated depreciation (61,895 ) (116,731 ) Property, plant and equipment, net 72,436 145,993 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Land Use Rights Net [Abstract] | |
Summary of Land Use Rights, Net | The land use rights are summarized as follows: As of December 31, 2020 2021 RMB RMB Land use rights 63,618 63,618 Less: Accumulated amortization (636) (1,896) Land use right, net 62,982 61,722 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | As of December 31, 2020 2021 RMB RMB Accrued payroll and welfare 83,190 95,816 Freight payable 70,656 68,197 Deposit from suppliers 30,755 27,483 Installation fee payables 25,714 18,957 Product warranty 22,420 28,796 Marketing and promotion expenses 18,476 25,709 Payment for purchase of property 15,624 17,647 Other tax payable 15,354 9,954 Professional fee payables 9,188 5,143 Refund liabilities 7,707 6,320 Other current liabilities 39,804 69,254 Total 338,888 373,276 Less: non-current portion (3,400 ) (7,558 ) Accrued expenses and other liabilities-current portion 335,488 365,718 |
Schedule of Product Warranty Activities | Product warranty activities were as follows: Product Warranty RMB Balance at December 31, 2019 22,463 Provided during the year 88,375 Utilized during the year (88,418 ) Balance at December 31, 2020 22,420 Provided during the year 76,845 Utilized during the year (70,469 ) Balance at December 31, 2021 28,796 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Net Revenues | Year ended December 31, 2019 2020 2021 RMB RMB RMB Sales of product - IoT Home portfolio 2,522,189 3,671,717 3,400,966 - Home water solutions 1,065,166 883,325 742,912 - Consumables 265,844 382,896 367,021 - Small appliances and other products 741,290 792,965 708,260 Total of sales of products 4,594,489 5,730,903 5,219,159 Rendering of services 53,024 94,721 84,676 Total 4,647,513 5,825,624 5,303,835 |
Income Tax Expenses (Tables)
Income Tax Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 2020 2021 RMB RMB RMB Current tax expenses 52,232 44,813 26,854 Deferred tax benefit (7,042 ) (1,492 ) (21,115 ) Income tax expenses 45,190 43,321 5,739 |
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, 2019 2020 2021 RMB RMB RMB Income from operations in the PRC 321,090 200,941 89,126 Income from overseas entities 17,930 16,826 5,504 Income before income tax 339,020 217,767 94,630 Tax expense at PRC enterprise income tax rate of 25% 84,755 54,442 23,658 Income tax on tax holiday (1) (31,493 ) (31,074 ) (16,872 ) Tax effect of permanent differences (2) (12,147 ) (16,895 ) (28,303 ) Change in valuation allowance (3) 1,592 29,780 22,153 Effect of share-based compensation 6,475 10,830 7,111 Effect of income tax in jurisdictions other than the PRC (3,992 ) (3,762 ) (2,008 ) Income tax expenses 45,190 43,321 5,739 (1) The income tax on tax holidays represents the effect of preferential income tax rate enjoyed by Foshan Viomi, Guangdong Lizi and Yunmi Hulian. Foshan Viomi was qualified as an HNTE and enjoyed the beneficial tax rate of 15% for the three years ended December 31, 2019, 2020 and 2021. Foshan Viomi will need to re-apply for HNTE qualification renewal in 2022. The Company believed that Foshan Viomi can successfully obtain the renewal in 2022. Guangdong Lizi (2) The permanent book-tax differences mainly consisted of R&D super deductions. ( 3 ) Valuation allowance for the years ended December 31, 2019, 2020 and 2021 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, 2019 2020 2021 RMB RMB RMB Net income per share effect – basic 0.13 0.14 0.02 Net income per share effect – diluted 0.13 0.13 0.02 |
Significant Components of Deferred Tax Assets | The significant components of the Group’s deferred tax assets were as follows: As of December 31, 2020 2021 RMB RMB Accrued expenses and others 12,466 18,567 Net operating loss carry forwards 32,985 69,852 Inventories write downs 1,463 985 Deferred income 201 161 Total deferred tax assets 47,115 89,565 Less: valuation allowance (32,926 ) (54,261 ) Deferred tax assets, net 14,189 35,304 |
Movement of Valuation Allowance | Movement of valuation allowance Year ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the year 1,554 3,146 32,926 Provided 1,592 29,780 21,335 Balance at end of the year 3,146 32,926 54,261 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 2020 2021 RMB RMB RMB Share-based compensation expenses —Share options (a) 43,168 72,203 47,405 |
Assumptions used to Determine Fair Value of Share Options Granted | Assumptions used to determine the fair value of share options granted during 2020 and 2021 are summarized in the following table: Year ended December 31, 2020 2021 Risk-free interest rate 2.20%~3.30% 2.88%~3.19% Expected volatility 41.30%~43.62% 42.93%~43.41% Expected life of option (years) 10 10 Expected dividend yield - - Fair value per ordinary share US$1.04~US$1.47 US$0.84~US$2.25 |
Schedule of Net Income Per Share, Basic and Diluted | Year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 292,170 173,324 88,605 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 208,156,507 208,812,049 209,551,821 Dilutive effect of share options 7,699,070 6,811,724 11,184,176 Denominator for diluted calculation 215,855,577 215,623,773 220,735,997 Basic net income per ordinary share 1.40 0.83 0.42 Diluted net income per ordinary share 1.35 0.80 0.40 Year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 292,170 173,324 88,605 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 208,156,507 208,812,049 209,551,821 Dilutive effect of share options 7,699,070 6,811,724 11,184,176 Denominator for diluted calculation 215,855,577 215,623,773 220,735,997 Basic net income per ordinary share 1.40 0.83 0.42 Diluted net income per ordinary share 1.35 0.80 0.40 |
Summary of Stock Option Activity | A summary of the stock option activity under the 2015 Share Incentive Plan and 2018 Share Incentive Plan for the years ended December 31, 2019, 2020 and 2021 is included in the table below. Number of options Weighted average exercise price (US$) Weighted average remaining contractual life (years) Aggregate intrinsic value (US$) Outstanding at January 1, 2019 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 Granted 19,175,500 0.86 Forfeited (1,778,500 ) 0.60 Exercised (2,655,669 ) 0.48 Outstanding at December 31, 2020 26,106,599 0.74 8.08 30,299 Granted 3,840,000 1.10 Forfeited (4,709,197 ) 0.81 Exercised (3,011,064 ) 0.43 Outstanding at December 31, 2021 22,226,338 0.80 7.41 26,813 Exercisable as of December 31, 2021 7,801,637 0.47 6.02 9,928 Expected to vest as of December 31, 2021 13,046,881 0.97 8.16 15,362 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share, Basic and Diluted | Year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 292,170 173,324 88,605 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 208,156,507 208,812,049 209,551,821 Dilutive effect of share options 7,699,070 6,811,724 11,184,176 Denominator for diluted calculation 215,855,577 215,623,773 220,735,997 Basic net income per ordinary share 1.40 0.83 0.42 Diluted net income per ordinary share 1.35 0.80 0.40 Year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company 292,170 173,324 88,605 Denominator: Denominator for basic calculation - weighted average ordinary shares outstanding 208,156,507 208,812,049 209,551,821 Dilutive effect of share options 7,699,070 6,811,724 11,184,176 Denominator for diluted calculation 215,855,577 215,623,773 220,735,997 Basic net income per ordinary share 1.40 0.83 0.42 Diluted net income per ordinary share 1.35 0.80 0.40 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 RMB RMB Accounts receivable from a related party: Xiaomi (a) 609,094 320,939 Other receivables from related parties: Sales receivable from Xiaomi (b) 88,029 88,331 Other receivables from Xiaomi 9 36 Total 88,038 88,367 Amounts due to related parties: Purchase payable to Xiaomi (a) 2,463 3,537 Purchase payable to Foshan Wanwuhulian (c) 121,321 - Research and development expenses payable to Xiaomi 408 715 Selling and marketing expenses payable to Xiaomi (d) - 1,163 Total 124,192 5,415 (2) Purchase from related parties Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi (a) 43,037 50,843 33,767 Foshan Wanwuhulian (c) 15,422 469,950 - Total 58,459 520,793 33,767 (3) Revenue from a related party Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi (a) 2,112,170 2,889,441 2,295,569 (4) Research and development expenses Year ended December 31, 2019 2020 2021 RMB RMB RMB Xiaomi 657 1,915 3,484 1 8 . RELATED PARTY TRANSACTIONS (Continued) ( 5 ) Selling and marketing expenses Year ended December 31, 2019 2020 2021 RMB RMB RMB Commission expenses charged by Xiaomi (b) 58,874 77,163 82,617 Other expenses charged by Xiaomi (b) 22,977 20,060 24,312 Total 81,851 97,223 106,929 (a) The Group both sells water purifiers and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi. The amount due from Xiaomi represents receivable arising from sales of water purifiers and other products. The balance due to Xiaomi represents payable arising from purchase of Xiaomi branded products and certain raw materials (b) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group commission and technical service fees, also Xiaomi ( c ) The Group purchases products from Foshan Wanwuhulian for trading during the year ended December 31, 2020. ( d ) The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group customer service fees. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021: Level 1 Level 2 Level 3 Total As of December 31, 2021 Short-term investments (i) — 828,867 — 828,867 As of December 31, 2020 Short-term investments (i) — 696,051 — 696,051 (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, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows: Year ended December 31, 2020 2021 Lease cost Operating lease expense 9,472 12,065 Short-term lease expense (i) 876 2,382 Total lease cost 10,348 14,447 (i) Includes leases with a term of one year or less. |
Supplemental Cash Flow Information for Leases | Supplemental cash flow information for leases was as follows: Year ended December 31, 2020 2021 Operating cash flows relating to operating leases 10,203 14,765 Lease liabilities arising from obtaining right-of-use assets 7,890 16,835 |
Schedule of Aggregate Future Minimum Rental Payments under Non-cancelable Agreement | 2 0 . LEASES (Continued) As of December 31, 2021, the aggregate future minimum rental payments under non-cancelable agreement were as follows: Rental RMB 2022 15,619 2023 10,837 2024 and after 244 Total future minimum rental payment 26,700 Less amount representing imputed interest (7,792 ) Present value of future minimum rental payments 18,908 Less current portion, recorded in other current liabilities (11,312 ) Long-term lease liabilities, recorded in other long-term liabilities 7,596 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Commitments of Short-Term Lease and Leases Not yet Commenced under Non-Cancellable Agreements | As of December 31, 2021, future minimum commitments under non-cancelable agreements were as follows: Rental RMB 2022 484 |
Schedule of Capital and Other Commitment | Capital expenditures contracted for at the balance sheet dates but not recognized in the consolidated financial statements are as follows: Year ended December 31, 2020 2021 Property, plant and equipment — 116,527 |
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, 2021$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2020$ / sharesshares | Nov. 30, 2020CNY (¥) | 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 | |||||||||||
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 | |||||||||||
Ordinary shares, issued | 4,000,000 | 105,516,779 | 104,163,686 | 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 | 103,214,547 | 103,554,546 | ||||||||||
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% | |||||||||||
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 | |||||||||||
Sunglow | Guangdong Lizi | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Equity investments amount | ¥ | ¥ 175 | |||||||||||
Initial equity interest percent | 1.00% |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Principal Subsidiaries and VIEs (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 |
Codream HK | Subsidiaries | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | K3 |
Date of incorporation | Aug. 20, 2019 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Investment holding |
Yunmi Hulian | 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 |
Zhumeng Hulian | Subsidiaries | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
Date of incorporation | Oct. 14, 2020 |
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 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 |
Guangzhou interconnect Technology Co., Ltd. | Subsidiaries | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
Date of incorporation | Dec. 7, 2020 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Home appliance development and sales |
Guangdong Lizi | Subsidiaries | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
Date of incorporation | Jul. 26, 2018 |
Percentage of beneficial ownership | 100.00% |
Principal activities | Home appliance development and sales |
Foshan Xiaoxian Hulian Electric Appliances Technology Co., Ltd. ("Foshan Xiaoxian") | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | F4 |
Date of incorporation | Oct. 12, 2016 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | ¥ 586,955 | $ 92,106 | ¥ 504,108 | ¥ 972,438 |
Short-term investments | 828,867 | 130,067 | 696,051 | |
Accounts receivable from third parties | 302,336 | 47,443 | 427,352 | |
Accounts receivable from a related party | 320,939 | 50,362 | 609,094 | |
Inventories | 576,351 | 90,442 | 439,375 | |
Total assets | 3,276,714 | 514,188 | 3,179,519 | |
Accounts and notes payable current | 1,069,108 | 167,766 | 1,001,371 | |
Total liabilities | 1,625,787 | $ 255,121 | 1,649,200 | |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 353,554 | 338,748 | ||
Short-term investments | 820,344 | 579,457 | ||
Accounts receivable from third parties | 204,769 | 412,118 | ||
Accounts receivable from a related party | 320,939 | 609,094 | ||
Inventories | 362,385 | 392,574 | ||
Amount due from Group companies | 232,203 | 106,956 | ||
Other assets | 383,569 | 395,941 | ||
Total assets | 2,677,763 | 2,834,888 | ||
Accounts and notes payable current | 545,966 | 860,454 | ||
Accrued expenses and other liabilities | 292,388 | 302,256 | ||
Amount due to Group companies | 824,304 | 480,058 | ||
Other liabilities | 122,508 | 293,413 | ||
Total liabilities | ¥ 1,785,166 | ¥ 1,936,181 |
Organization and Principal Ac_6
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenue | ¥ 5,303,835 | $ 832,288 | ¥ 5,825,624 | ¥ 4,647,513 |
Cost | 4,105,767 | 644,285 | 4,742,668 | 3,565,109 |
Net income/(loss) | 88,605 | 13,903 | 173,324 | 292,170 |
Net cash (used in)/ provided by operating activities | 308,968 | 48,485 | 185,196 | 245,484 |
Net cash used in investing activities | (265,321) | (41,636) | (433,083) | (268,956) |
Net cash provided by/(used in) financing activities | 17,133 | $ 2,687 | (146,375) | 48,542 |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | 131,379 | 25,994 | ||
Cost | 1,291,468 | 214,289 | ||
Net income/(loss) | (60,908) | 152,908 | 276,426 | |
Net cash (used in)/ provided by operating activities | (794,936) | (162,243) | ||
Net cash used in investing activities | (83,325) | (30,404) | (1,482) | |
Net cash provided by/(used in) financing activities | (156,406) | 154,557 | 161,722 | |
VIEs | Related Party and Third Parties | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | 4,859,414 | 5,790,475 | 4,647,513 | |
Cost | 2,870,809 | 4,556,588 | 3,565,109 | |
VIEs | Third Party | ||||
Variable Interest Entity [Line Items] | ||||
Net cash (used in)/ provided by operating activities | 1,248,860 | 218,030 | 240,823 | |
Net cash used in investing activities | ¥ (233,934) | (490,270) | (97,702) | |
Net cash provided by/(used in) financing activities | ¥ (98,390) | ¥ 95,933 |
Organization and Principal Ac_7
Organization and Principal Activities - Results of Operations and Cash Flows of VIEs and its Subsidiaries taken as Whole (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenue | ¥ 5,303,835 | $ 832,288 | ¥ 5,825,624 | ¥ 4,647,513 |
VIEs to Equity Subsidiaries | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | 131,300 | 12,600 | ||
VIEs to Primary Beneficiary of VIEs and their Subsidiaries | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | ¥ 100 | ¥ 13,400 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021CNY (¥)InstallmentSegment | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jan. 01, 2020CNY (¥) | Mar. 31, 2019 | Dec. 31, 2018CNY (¥) | Apr. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||||||
Foreign currency exchange buying rate | 6.3726 | 6.3726 | ||||||
Estimated useful lives | 50 years | |||||||
Operating lease,right of use asset | ¥ 18,425,000 | ¥ 20,529,000 | $ 2,891 | |||||
Operating lease, liability | ¥ 18,908,000 | |||||||
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 | ¥ 5,593,000 | 6,820,000 | ¥ 12,037,000 | |||||
Expected return asset | 3,189,000 | 4,106,000 | 572,000 | |||||
Refund liability | ¥ 6,320,000 | 7,707,000 | 13,602,000 | |||||
Value added tax rate | 13.00% | 13.00% | 16.00% | 17.00% | ||||
Accounts and notes receivable from key customers | ¥ 658,028,000 | 1,045,753,000 | 1,026,142,000 | |||||
Recognized impairments, net of recoveries, for accounts receivable from customers | 25,446,000 | 4,475,000 | ||||||
Deferred revenue | 2,111,000 | 5,719,000 | 7,790,000 | |||||
Advertising and market promotion expenses | 173,642,000 | 102,719,000 | 106,540,000 | |||||
Shipping expenses | 248,609,000 | 247,417,000 | 245,329,000 | |||||
Subsidy income | 30,147,000 | 33,674,000 | 35,988,000 | |||||
Uncertain tax positions, interest and penalties recognized | 0 | 0 | 0 | |||||
Statutory reserve funds | ¥ 1,756,000 | 3,464,000 | 1,047,000 | |||||
Number of operating segment | Segment | 1 | |||||||
Retained earnings | ¥ 449,900,000 | 363,051,000 | $ 70,599 | |||||
Expected credit loss | 29,343,000 | 5,015,000 | ||||||
Expected credit loss provision for accounts and notes receivable and other receivables | 34,857,000 | 9,316,000 | 4,832,000 | |||||
General and Administrative Expenses | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Expected credit loss | 25,541,000 | 4,484,000 | ||||||
Additional Paid-in Capital | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Accumulated statutory reserve funds | 12,517,000 | 10,761,000 | ||||||
P R C Contribution Plan | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Employee benefit expenses | 34,291,000 | 10,571,000 | 23,465,000 | |||||
Installation Services | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Revenue recognized amount | 5,719,000 | ¥ 7,790,000 | ¥ 1,276,000 | |||||
Expect to recognize unearned amount for remaining performance obligation in 2022 | 1,642,000 | |||||||
Membership Service | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Expect to recognize unearned amount for remaining performance obligation in 2022 | ¥ 469,000 | |||||||
Xiaomi Inc | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Percentage of second installment payment arrangement to total revenue | 2.00% | 3.80% | 5.90% | |||||
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 | |||||||
ASU No. 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Retained earnings | ¥ 2,826,000 |
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, 2021 | |
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, 2021 | |
Software | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated useful lives | 1 year |
Software | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated useful lives | 10 years |
License | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated useful lives | 3 years |
License | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated useful lives | 10 years |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Disaggregation of Revenue by Type of Contract (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 5,303,835 | $ 832,288 | ¥ 5,825,624 | ¥ 4,647,513 |
Sales to Xiaomi | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,295,569 | 2,889,441 | 2,112,170 | |
Sales to Xiaomi | Xiaomi-branded Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,021,117 | 2,560,787 | 1,859,499 | |
Sales to Xiaomi | Viomi-branded Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 274,452 | 326,114 | 250,593 | |
Sales to Xiaomi | Rendering of Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 2,540 | 2,078 | ||
Sales to Third Party Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 3,008,266 | ¥ 2,936,183 | ¥ 2,535,343 |
Significant Accounting Polici_8
Significant Accounting Policies - Schedule of Activity in Allowance for Credit Losses Related to Accounts and Notes Receivable and Other Receivables from Related Parties (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Balance | ¥ 9,316 | ¥ 4,832 |
Expected credit loss | 29,343 | 5,015 |
Reversals | (3,802) | (531) |
Balance | ¥ 34,857 | ¥ 9,316 |
Concentration and Risks - Sched
Concentration and Risks - Schedule of Concentration Risk of Accounts and Notes receivable from Third Parties (Details) - Accounts and Notes Receivable - Credit Risk - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Company A | ||
Concentration Risk [Line Items] | ||
Accounts and notes receivable | ¥ 161,785 | ¥ 221,614 |
Concentration risk, percentage | 54.00% | 52.00% |
Company B | ||
Concentration Risk [Line Items] | ||
Accounts and notes receivable | ¥ 37,776 | ¥ 164,518 |
Concentration risk, percentage | 12.00% | 38.00% |
Concentration and Risks - Sch_2
Concentration and Risks - Schedule of Concentration Risk of Accounts Receivable from Related Party (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Concentration Risk [Line Items] | |||
Accounts receivable from a related party | ¥ 320,939 | ¥ 609,094 | $ 50,362 |
Xiaomi Inc | Accounts Receivable | Credit Risk | |||
Concentration Risk [Line Items] | |||
Accounts receivable from a related party | ¥ 320,939 | ¥ 609,094 | |
Concentration risk, percentage | 100.00% | 100.00% |
Concentration and Risks - Sch_3
Concentration and Risks - Schedule of Concentration Risk of Other Receivables from Related Parties (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Concentration Risk [Line Items] | |||
Other receivables | ¥ 88,367 | ¥ 88,038 | $ 13,867 |
Xiaomi Inc | Other Receivables | Credit Risk | |||
Concentration Risk [Line Items] | |||
Other receivables | ¥ 88,367 | ¥ 88,038 | |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Concentration Risk [Line Items] | ||||
Revenue | ¥ 5,303,835 | $ 832,288 | ¥ 5,825,624 | ¥ 4,647,513 |
Xiaomi Inc | Revenue Benchmark | Revenue Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Revenue | ¥ 2,295,569 | ¥ 2,889,441 | ¥ 2,112,170 | |
Concentration risk, percentage | 43.00% | 43.00% | 50.00% | 45.00% |
Concentration and Risks - Addit
Concentration and Risks - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Concentration Risk [Line Items] | ||||
Revenue | ¥ 5,303,835 | $ 832,288 | ¥ 5,825,624 | ¥ 4,647,513 |
Contract With Xiaomi | Viomi-branded Products | ||||
Concentration Risk [Line Items] | ||||
Revenue | ¥ 274,452 | ¥ 326,114 | ¥ 250,593 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents Balance (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Cash And Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | ¥ 586,955 | $ 92,106 | ¥ 504,108 | ¥ 972,438 | |
RMB | |||||
Cash And Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 238,386 | 238,386 | 150,967 | $ 150,967 | |
US$ | |||||
Cash And Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | ¥ 348,569 | $ 54,671 | ¥ 353,141 | $ 54,122 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Cash And Cash Equivalents [Abstract] | ||||
Restricted cash | ¥ 35,831 | $ 5,623 | ¥ 70,601 | ¥ 30,567 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments Balance (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) |
Schedule Of Investments [Line Items] | ||||
Short-term investments | ¥ 828,867 | $ 130,067 | ¥ 696,051 | |
RMB | ||||
Schedule Of Investments [Line Items] | ||||
Short-term investments | ¥ 828,867 | $ 828,867 | 617,457 | $ 617,457 |
US$ | ||||
Schedule Of Investments [Line Items] | ||||
Short-term investments | ¥ 78,594 | $ 12,045 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Inventory Disclosure [Abstract] | |||
Finished goods | ¥ 422,627 | ¥ 311,316 | |
Raw materials | 153,724 | 128,059 | |
Inventories | ¥ 576,351 | $ 90,442 | ¥ 439,375 |
Inventories - Additional Inform
Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Inventory Disclosure [Abstract] | ||||
Inventory write-down | ¥ 8,103 | $ 1,272 | ¥ 22,577 | ¥ 15,661 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Advances to suppliers | ¥ 106,666 | ¥ 66,421 | |
Other receivables | 48,322 | 17,732 | |
Prepayment for equipment | 18,493 | 13,870 | |
Lease hold improvement | 6,643 | 4,735 | |
Expected return assets | 3,189 | 4,106 | |
Other current assets | 135 | 219 | |
Total | 183,448 | 107,083 | |
Less: non-current portion | (27,321) | $ (4,287) | (19,803) |
Prepaid expenses and other current assets | ¥ 156,127 | $ 24,500 | ¥ 87,280 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 262,724 | ¥ 134,331 | |
Less: accumulated depreciation | (116,731) | (61,895) | |
Property, plant and equipment, net | 145,993 | $ 22,909 | 72,436 |
Construction in Progress | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 76,440 | ||
Computers and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 185,776 | 133,823 | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | ¥ 55,124 | ¥ 42,470 | ¥ 15,427 |
Impairment charge | ¥ 0 | ¥ 0 | ¥ 0 |
Land Use Rights, Net - Summary
Land Use Rights, Net - Summary of Land Use Rights (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Land Use Rights Net [Abstract] | |||
Land use rights | ¥ 63,618 | ¥ 63,618 | |
Less: Accumulated amortization | (1,896) | (636) | |
Land use right, net | ¥ 61,722 | $ 9,686 | ¥ 62,982 |
Land Use Rights, Net - Addition
Land Use Rights, Net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Land Use Rights Net [Abstract] | ||
Amortization expense | ¥ 1,260 | ¥ 636 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Payables And Accruals [Abstract] | |||
Accrued payroll and welfare | ¥ 95,816 | ¥ 83,190 | |
Freight payable | 68,197 | 70,656 | |
Deposit from suppliers | 27,483 | 30,755 | |
Installation fee payables | 18,957 | 25,714 | |
Product warranty | 28,796 | 22,420 | |
Marketing and promotion expenses | 25,709 | 18,476 | |
Payment for purchase of property | 17,647 | 15,624 | |
Other tax payable | 9,954 | 15,354 | |
Professional fee payables | 5,143 | 9,188 | |
Refund liabilities | 6,320 | 7,707 | |
Other current liabilities | 69,254 | 39,804 | |
Total | 373,276 | 338,888 | |
Less: non-current portion | (7,558) | (3,400) | |
Accrued expenses and other liabilities-current portion | ¥ 365,718 | $ 57,390 | ¥ 335,488 |
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, 2021 | Dec. 31, 2020 | |
Payables And Accruals [Abstract] | ||
Beginning Balance | ¥ 22,420 | ¥ 22,463 |
Provided during the year | 76,845 | 88,375 |
Utilized during the year | (70,469) | (88,418) |
Ending Balance | ¥ 28,796 | ¥ 22,420 |
Revenue - Schedule of Net Reven
Revenue - Schedule of Net Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 5,303,835 | $ 832,288 | ¥ 5,825,624 | ¥ 4,647,513 |
IoT @ Home Portfolio | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 3,400,966 | 3,671,717 | 2,522,189 | |
Home Water Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 742,912 | 883,325 | 1,065,166 | |
Consumables | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 367,021 | 382,896 | 265,844 | |
Small Appliances and Other Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 708,260 | 792,965 | 741,290 | |
Total of Sales of Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 5,219,159 | 5,730,903 | 4,594,489 | |
Rendering of Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | ¥ 84,676 | ¥ 94,721 | ¥ 53,024 |
Income Tax Expenses - Additiona
Income Tax Expenses - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 100.00% | 75.00% | 50.00% | 50.00% |
Withholding tax rate | 10.00% | |||
Undistributed earnings available for distribution | ¥ 956,980 | ¥ 827,531 | ||
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 26,854 | ¥ 44,813 | ¥ 52,232 | |
Deferred tax benefit | (21,115) | $ (3,313) | (1,492) | (7,042) |
Income tax expenses | ¥ 5,739 | $ 901 | ¥ 43,321 | ¥ 45,190 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income from operations in the PRC | ¥ 89,126 | ¥ 200,941 | ¥ 321,090 | |
Income from overseas entities | 5,504 | 16,826 | 17,930 | |
Income before income tax expenses | 94,630 | $ 14,849 | 217,767 | 339,020 |
Tax expense at PRC enterprise income tax rate of 25% | 23,658 | 54,442 | 84,755 | |
Income tax on tax holiday | (16,872) | (31,074) | (31,493) | |
Tax effect of permanent differences | (28,303) | (16,895) | (12,147) | |
Change in valuation allowance | 22,153 | 29,780 | 1,592 | |
Effect of share-based compensation | 7,111 | 10,830 | 6,475 | |
Effect of income tax in jurisdictions other than the PRC | (2,008) | (3,762) | (3,992) | |
Income tax expenses | ¥ 5,739 | $ 901 | ¥ 43,321 | ¥ 45,190 |
Income Tax Expenses - Reconci_2
Income Tax Expenses - Reconciliation between Income Tax Expenses Computed by Applying PRC Enterprise Tax Rate Before Income Taxes and Actual Provision (Parenthetical) (Details) - High and New Technology Enterprises | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | |||
Beneficial tax rate | 15.00% | 15.00% | 15.00% |
Preferential tax rate | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Net income per share effect – basic | ¥ 0.02 | ¥ 0.14 | ¥ 0.13 |
Net income per share effect – diluted | ¥ 0.02 | ¥ 0.13 | ¥ 0.13 |
Income Tax Expenses - Significa
Income Tax Expenses - Significant Components of Deferred Tax Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Accrued expenses and others | ¥ 18,567 | ¥ 12,466 |
Net operating loss carry forwards | 69,852 | 32,985 |
Inventories write downs | 985 | 1,463 |
Deferred income | 161 | 201 |
Total deferred tax assets | 89,565 | 47,115 |
Less: valuation allowance | (54,261) | (32,926) |
Deferred tax assets, net | ¥ 35,304 | ¥ 14,189 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of the year | ¥ 32,926 | ¥ 3,146 | ¥ 1,554 |
Provided | 21,335 | 29,780 | 1,592 |
Balance at end of the year | ¥ 54,261 | ¥ 32,926 | ¥ 3,146 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands | Sep. 25, 2018shares | Aug. 23, 2018USD ($)$ / sharesshares | Jul. 31, 2015shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2021$ / sharesshares | Mar. 31, 2020USD ($) | Sep. 24, 2018shares | Aug. 22, 2018$ / sharesshares | Jun. 30, 2018shares | Dec. 31, 2017shares |
Class Of Stock [Line Items] | ||||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.0001 | ||||||||||||
Preferred shares, par value | $ / shares | $ 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. | |||||||||||||
Shares repurchases, consideration amount | ¥ | ¥ 12,068 | ¥ 54,600 | ||||||||||||
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 | $ | $ 50,000,000 | |||||||||||||
Stock, conversion basis | Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. | |||||||||||||
Shares issued | 34,200,000 | |||||||||||||
Class A Ordinary Shares | ||||||||||||||
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 | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.0001 | |||||||||||
Ordinary shares, outstanding | 104,163,686 | 98,444,732 | 90,200,000 | 105,516,779 | 25,363,636 | |||||||||
Ordinary shares, voting rights | Each ordinary share is entitled to one vote | |||||||||||||
Common stock, shares issued | 4,000,000 | 104,163,686 | 105,516,779 | 33,818,182 | ||||||||||
Ordinary shares, transferred | 16,145,454 | |||||||||||||
Ordinary shares, surrendered | 17,672,728 | |||||||||||||
Fair value per share | $ / shares | $ 3.30 | |||||||||||||
Shares issued | 34,200,000 | |||||||||||||
Shares issued upon conversion (in shares) | 339,999 | 7,295,454 | 7,295,454 | 6,750,000 | 18,181,818 | |||||||||
Issuance of ordinary shares for exercised share options (in shares) | 3,011,064 | 2,655,669 | 2,655,669 | 1,494,732 | ||||||||||
Shares repurchased during period | 1,997,970 | 4,232,169 | 4,232,169 | |||||||||||
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 | $ / shares | $ 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 | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Ordinary shares, outstanding | 103,554,546 | 110,850,000 | 117,600,000 | 103,214,547 | ||||||||||
Common stock, shares issued | 103,554,546 | 103,214,547 | ||||||||||||
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 | |||||||||||||
Shares issued | 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 | $ / shares | $ 0.00001 | |||||||||||||
Designated Common Stock | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares authorized | 50,000,000 | |||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | |||||||||||||
American Depositary Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Share repurchase program, authorized amount | $ | $ 10,000,000 | |||||||||||||
Shares repurchased during period | 1,410,723 | 1,410,723 | ||||||||||||
Shares repurchases, consideration amount | $ | $ 8,030,000 | |||||||||||||
Shares repurchases, weighted average price per share | $ / shares | $ 5.69 | |||||||||||||
American Depositary Shares | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Shares issued | 11,400,000 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Share-based compensation expense | ¥ 47,405 | ¥ 72,203 | ¥ 43,168 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ / shares in Units, ¥ in Thousands | Sep. 17, 2015shares | Dec. 31, 2021CNY (¥)$ / sharesshares | Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019shares | Nov. 30, 2020CNY (¥) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of share options granted to employees under stock incentive plans | 0 | ||||||
Weighted average grant date fair value of options granted | (per share) | $ 1.73 | ¥ 11.56 | $ 1.27 | ¥ 8.31 | |||
Unrecognized compensation expenses related to options | ¥ | $ 53,652 | ¥ 53,652 | $ 99,975 | ¥ 99,975 | |||
Sunglow | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized compensation expenses related to options | ¥ | $ 10,284 | ¥ 10,284 | |||||
Sunglow | Guangdong Lizi | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Equity interests | 1.00% | ||||||
Equity investments amount | ¥ | ¥ 175 | ||||||
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 | ||||||
2018 Share Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum number of shares issued under share incentive plan | 23,920,828 | 23,920,828 | |||||
Number of share options granted to employees under stock incentive plans | 38,400,000 | 38,400,000 | 19,175,500 | 19,175,500 | |||
2018 Share Incentive Plan | Vested after 24 Months | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share options vested percentage | 40.00% | 40.00% | 40.00% | 40.00% | |||
2018 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 | 60.00% | 60.00% | 60.00% | 60.00% |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Earnings Per Share, Basic and Diluted (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company | ¥ 88,605 | $ 13,903 | ¥ 173,324 | ¥ 292,170 |
Denominator: | ||||
Denominator for basic calculation - weighted average ordinary shares outstanding | 209,551,821 | 209,551,821 | 208,812,049 | 208,156,507 |
Dilutive effect of share options | 11,184,176 | 11,184,176 | 6,811,724 | 7,699,070 |
Denominator for diluted calculation | 220,735,997 | 220,735,997 | 215,623,773 | 215,855,577 |
Basic net income per ordinary share | (per share) | ¥ 0.42 | $ 0.07 | ¥ 0.83 | ¥ 1.40 |
Diluted net income per ordinary share | (per share) | ¥ 0.40 | $ 0.06 | ¥ 0.80 | ¥ 1.35 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions used to Determine Fair Value of Share Options Granted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, minimum | 2.88% | 2.20% |
Risk-free interest rate, maximum | 3.19% | 3.30% |
Expected volatility, minimum | 42.93% | 41.30% |
Expected volatility, maximum | 43.41% | 43.62% |
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 | $ 0.84 | $ 1.04 |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Fair value per ordinary share | $ 2.25 | $ 1.47 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 26,106,599 | 11,365,268 | 13,260,000 | |
Number of options, Granted | 3,840,000 | 19,175,500 | ||
Number of options, Forfeited | (4,709,197) | (1,778,500) | (400,000) | |
Number of options, Exercised | (3,011,064) | (2,655,669) | (1,494,732) | |
Number of options, Outstanding, Ending Period | 22,226,338 | 26,106,599 | 11,365,268 | 13,260,000 |
Number of options, Exercisable | 7,801,637 | |||
Number of options, Expected to vest | 13,046,881 | |||
Weighted average exercise price, Outstanding, Beginning Period | $ 0.74 | $ 0.44 | $ 0.43 | |
Weighted average exercise price, Granted | 1.10 | 0.86 | ||
Weighted average exercise price, Forfeited | 0.81 | 0.60 | 0.96 | |
Weighted average exercise price, Exercised | 0.43 | 0.48 | 0.17 | |
Weighted average exercise price, Outstanding, Ending Period | 0.80 | $ 0.74 | $ 0.44 | $ 0.43 |
Weighted average exercise price, Exercisable | 0.47 | |||
Weighted average exercise price, Expected to vest | $ 0.97 | |||
Weighted-average remaining contractual life (years), Outstanding | 7 years 4 months 28 days | 8 years 29 days | 7 years 7 months 2 days | 8 years 4 months 24 days |
Weighted-average remaining contractual life (years), Exercisable | 6 years 7 days | |||
Weighted-average remaining contractual life (years), Expected to vest | 8 years 1 month 28 days | |||
Aggregate intrinsic value, Outstanding | $ 26,813 | $ 30,299 | $ 17,737 | $ 18,705 |
Aggregate intrinsic value, Exercisable | 9,928 | |||
Aggregate intrinsic value, Expected to vest | $ 15,362 |
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, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Numerator for basic calculation - Net income attributable to ordinary shareholders of the Company | ¥ 88,605 | $ 13,903 | ¥ 173,324 | ¥ 292,170 |
Denominator: | ||||
Denominator for basic calculation - weighted average ordinary shares outstanding | 209,551,821 | 209,551,821 | 208,812,049 | 208,156,507 |
Dilutive effect of share options | 11,184,176 | 11,184,176 | 6,811,724 | 7,699,070 |
Denominator for diluted calculation | 220,735,997 | 220,735,997 | 215,623,773 | 215,855,577 |
Basic net income per ordinary share | (per share) | ¥ 0.42 | $ 0.07 | ¥ 0.83 | ¥ 1.40 |
Diluted net income per ordinary share | (per share) | ¥ 0.40 | $ 0.06 | ¥ 0.80 | ¥ 1.35 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transaction Relationship (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Mr. Chen | |
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, 2021 | |
Business Corporation Agreement | |
Related Party Transaction [Line Items] | |
Related party transaction expiration | 2021-09 |
Related party transaction agreement renewed date | 2023-09 |
Youpin Commission Sales Agreement | |
Related Party Transaction [Line Items] | |
Related party transaction, expire date | Dec. 31, 2021 |
Related party transaction agreement termination notice period | 30 days |
Related party transaction renewed year | 2022 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Related Party Transaction [Line Items] | |||||
Other receivables from related party | ¥ 88,367 | ¥ 88,038 | $ 13,867 | ||
Amount due to related parties | 5,415 | 124,192 | $ 850 | ||
Purchase from related parties | 33,767 | 520,793 | ¥ 58,459 | ||
A related party | 2,295,569 | $ 360,225 | 2,889,441 | 2,112,170 | |
Xiaomi | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable from a related party | 320,939 | 609,094 | |||
Sales receivable from related party | 88,331 | 88,029 | |||
Other receivables from related party | 36 | 9 | |||
Purchase payable | 3,537 | 2,463 | |||
Research and development expenses payable | 715 | 408 | |||
Selling and marketing expenses payable to Xiaomi | 1,163 | ||||
Purchase from related parties | 33,767 | 50,843 | 43,037 | ||
A related party | 2,295,569 | 2,889,441 | 2,112,170 | ||
Research and development expenses | 3,484 | 1,915 | 657 | ||
Commission expenses | 82,617 | 77,163 | 58,874 | ||
Other expenses | 24,312 | 20,060 | 22,977 | ||
Selling and marketing expenses, total | ¥ 106,929 | 97,223 | 81,851 | ||
Foshan Wanwuhulian Trade Co., Limited | |||||
Related Party Transaction [Line Items] | |||||
Purchase payable | 121,321 | ||||
Purchase from related parties | ¥ 469,950 | ¥ 15,422 |
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, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | ¥ 828,867 | ¥ 696,051 |
Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | ¥ 828,867 | ¥ 696,051 |
[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, 2021 |
Leases [Abstract] | |
Operating leases, weighted average discount rate | 4.75% |
Operating leases, weighted-average remaining lease term | 1 year 6 months |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Lease cost | |||
Operating lease expense | ¥ 12,065 | ¥ 9,472 | |
Short-term lease expense | [1] | 2,382 | 876 |
Total lease cost | ¥ 14,447 | ¥ 10,348 | |
[1] | Includes leases with a term of one year or less. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information for Leases (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows relating to operating leases | ¥ 14,765 | ¥ 10,203 |
Lease liabilities arising from obtaining right-of-use assets | ¥ 16,835 | ¥ 7,890 |
Leases - Schedule of Aggregate
Leases - Schedule of Aggregate Future Minimum Rental Payments under Non-cancelable Agreement (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Leases [Abstract] | |||
2022 | ¥ 15,619 | ||
2023 | 10,837 | ||
2024 and after | 244 | ||
Total future minimum rental payment | 26,700 | ||
Less amount representing imputed interest | (7,792) | ||
Present value of future minimum rental payments | 18,908 | ||
Less current portion, recorded in other current liabilities | (11,312) | $ (1,775) | ¥ (9,481) |
Long-term lease liabilities, recorded in other long-term liabilities | ¥ 7,596 | $ 1,192 | ¥ 11,693 |
Commitments and Contingencies -
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, 2020CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
2022 | ¥ 484 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Capital and Other Commitment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Property, plant and equipment | $ 116,527 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - CNY (¥) | Dec. 31, 2021 | Dec. 31, 2010 |
Receivables [Abstract] | ||
Amount of restricted net assets for consolidated and unconsolidated subsidiaries | ¥ 112,603 | ¥ 61,852 |