Focus on AI water – Viomi Introduces Employee Share Incentive Program

Rhea-AI Summary

Viomi Technology Co., (NASDAQ: VIOT), a leading Chinese home water solutions company, celebrated its 6th Nasdaq listing anniversary on September 25, 2024. To mark this, the Company granted 9 million stock options to nearly 40 employees under its 2018 Share Incentive Plan, targeting key staff in R&D, sales, and marketing. This move aims to boost employee motivation and innovation.

CEO Xiaoping Chen highlighted Viomi's success in attracting global talent and securing over 1,600 water purification patents. The company plans to focus on developing AI products and water purification solutions globally. Following a strategic reorganization on August 31, 2024, Viomi is concentrating on AI home water solution businesses. The company returned to profitability in H1 2024 and projects full-year revenues for Continuing Businesses between RMB1.7-1.9 billion, with expected operating income of RMB110-130 million.

Positive

• Granted 9 million stock options to key employees, potentially improving retention and motivation
• Secured over 1,600 technology patents related to water purification
• Returned to profitability in the first half of 2024
• Projected full-year revenues for Continuing Businesses between RMB1.7-1.9 billion
• Expected income from operations of Continuing Businesses between RMB110-130 million

Negative

• Major strategic reorganization may indicate previous strategy was not effective

Insights

Financial Analyst

Viomi's introduction of an employee share incentive program is a strategic move that could have positive implications for the company's future performance. The granting of approximately 9 million stock options to nearly 40 key employees aligns their interests with those of shareholders, potentially driving increased productivity and innovation.

The company's focus on AI water solutions and its possession of over 1,600 technology patents in water purification demonstrate a strong commitment to R&D. This, coupled with the retention of top talent through stock options, could position Viomi well in the competitive home water solutions market.

Financially, Viomi's return to profitability in the first half of 2024 and its projected full-year revenues of RMB1.7-1.9 billion for Continuing Businesses suggest a positive trajectory. The expected income from operations of RMB110-130 million indicates improving operational efficiency. However, investors should note that these are forward-looking statements and actual results may vary.

Tech Expert

Viomi's strategic shift towards AI home water solutions represents a significant technological pivot. The company's emphasis on developing advanced AI products for water purification aligns with the growing trend of smart home technologies and could potentially give Viomi a competitive edge in the market.

The retention of elite employees, particularly in R&D, through stock options is important for maintaining technological leadership. With 1,600+ patents already secured, continued innovation will be key to Viomi's success in the AI-driven water purification space.

The company's vision of "Global Water" suggests an ambitious expansion plan beyond the Chinese market. This could open up new growth opportunities but also presents challenges in terms of adapting technologies to different water conditions and regulatory environments worldwide. Investors should monitor Viomi's progress in AI integration and international expansion as indicators of long-term growth potential.

GUANGZHOU, China, Sept. 30, 2024 (GLOBE NEWSWIRE) -- Viomi Technology Co., Ltd (“Viomi” or the “Company”) (NASDAQ: VIOT), a leading technology company for home water solutions in China, celebrated its 6th anniversary of listing on Nasdaq on September 25, 2024. To mark this milestone, the Company grants approximately 9 million stock options to nearly 40 employees under the 2018 Share Incentive Plan. Recipients include elite employees from research and development, sales and marketing, etc.

The option awards aim to boost the motivation and creativity of core employees, fostering a culture of continuous innovation and success. It also underscores the Company’s dedication to retaining talents and reflects its confidence in future growth and development.

Mr. Xiaoping Chen, Founder and CEO of Viomi, commented: “Over the past decade, Viomi has attracted numerous global talents in the home water solutions industry and secured over 1,600 technology patents related to water purification. In the coming decade, we aim to attract more top global talents to develop advanced AI products and water purification solutions, providing fresh and healthy drinking water to users worldwide. We are dedicated to achieving our vision of ‘Global Water.’”

Following a major strategic reorganization on August 31, 2024, the Company will primarily focus on its AI home water solution businesses. In the first half of 2024, the Company returned to profitability and expects its full-year revenues for the Continuing Businesses¹ to be between RMB1.7 billion and RMB1.9 billion. Income from operations of the Continuing Businesses is expected to reach between RMB110 million and RMB130 million.

For more information about the previously announced Transaction, please visit here.

About Viomi Technology

Viomi’s mission is “AI for Better Water,” utilizing AI technology to provide better drinking water solutions for households worldwide.

As an industry-leading technology company in home water solutions, Viomi has developed a distinctive “Equipment + Consumables” business model. By leveraging its expertise in AI technology, intelligent hardware and software development, the Company simplifies filter replacement and enhances water quality monitoring, thereby increasing the filter replacement rate. Its continuous technological innovations extend filter lifespan and lower user costs, promoting the adoption of water purifiers and supporting a healthy lifestyle while effectively addressing the rising global demand for cleaner, fresher and healthier drinking water. The Company operates a world-leading “Water Purifier Gigafactory” with an integrated industrial chain that boasts optimal efficiency and facilitates continuous breakthroughs in water purification. This state-of-the-art facility enables Viomi to achieve economies of scale and accelerate the global popularization of residential water filtration.

For more information, please visit: https://ir.viomi.com 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Viomi’s strategic and operational plans, contain forward-looking statements. Viomi may also make written or oral forward-looking statements in its periodic reports to the United States Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to Fourth parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; the cooperation with Xiaomi, the recognition of the Company’s brand; trends and competition in global IoT-enabled smart home market; development and commercialization of new products, services and technologies; governmental policies and relevant regulatory environment relating to the Company’s industry and/or aspects of the business operations and general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Viomi Technology Co., Ltd
Claire Ji
E-mail: ir@viomi.com.cn 

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: viomi@tpg-ir.com 

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: viomi@tpg-ir.com 

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¹ As announced on July 19, 2024, the Company has entered into definitive agreements with Mr. Xiaoping Chen to divest the Company’s IoT@Home portfolio products (excluding range hoods, gas stoves, and water heaters) (the “Divested Business”) The transaction has been completed on August 31, 2024. Each of the estimated revenues and income from operations of the Continuing Businesses is based on the Company’s preliminary estimates based on currently available information. In estimating the revenues and income from operations of the Continuing Businesses, the management of the Company has taken into consideration of revenues, cost of revenues, and operating expenses directly attributable to the Continuing Businesses and indirect operating expenses allocated to the Continuing Businesses as deemed appropriate by the management of the Company. The term “Continuing Businesses” refers to the Company’s businesses excluding the Divested Business.

FAQ

What is Viomi's stock symbol on Nasdaq?

Viomi's stock symbol on Nasdaq is VIOT.

How many stock options did Viomi grant to employees in September 2024?

Viomi granted approximately 9 million stock options to nearly 40 employees in September 2024.

What is Viomi's projected revenue range for Continuing Businesses in 2024?

Viomi expects full-year revenues for Continuing Businesses to be between RMB1.7 billion and RMB1.9 billion in 2024.

When did Viomi complete its strategic reorganization in 2024?

Viomi completed its major strategic reorganization on August 31, 2024.

How many technology patents related to water purification does Viomi hold?

Viomi has secured over 1,600 technology patents related to water purification.