Viomi Technology Co., Ltd Regains Compliance with Nasdaq's Minimum Bid Price Requirement

Rhea-AI Summary

Viomi Technology Co., (NASDAQ: VIOT), a leading Chinese home water solutions company, has regained compliance with Nasdaq's minimum bid price requirement. The company received a compliance notice on August 16, 2024, confirming that its American Depositary Shares (ADSs) have maintained a closing bid price of $1.00 or higher for ten consecutive business days from August 1 to August 15, 2024.

This development resolves the non-compliance issue raised on March 26, 2024, when Viomi was notified that its ADS price had fallen below the $1.00 threshold for 30 consecutive business days. With this matter now closed, Viomi has successfully addressed the concerns regarding its listing status on the Nasdaq Stock Market.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Maintained ADS price of $1.00 or higher for ten consecutive business days
• Resolved potential delisting risk

Negative

• None.

Insights

Financial Analyst

Viomi's regaining of Nasdaq compliance is a positive development for the company's market standing. This news alleviates the immediate risk of delisting, which could have severely impacted investor confidence and the stock's liquidity. However, it's important to note that compliance was achieved without a reverse stock split, suggesting a genuine market-driven price recovery. Investor sentiment might improve in the short term, potentially leading to increased trading volume and stability.

While this compliance is encouraging, it doesn't directly reflect on Viomi's fundamental business performance. Investors should look beyond this technical achievement and focus on upcoming financial results, market share in China's home water solutions sector and the company's growth strategy to assess its long-term prospects.

Market Research Analyst

Viomi's compliance recovery highlights the volatility in the Chinese tech sector. The company's ability to meet the $1.00 threshold without corporate action suggests potential market recognition of its value proposition in the smart home industry. However, the previous non-compliance period indicates underlying challenges, possibly related to broader economic factors affecting Chinese ADSs or company-specific issues.

Investors should monitor Viomi's market position in the competitive home water solutions market in China. The company's ability to maintain compliance will likely depend on its innovation pipeline, revenue growth and ability to capitalize on the increasing demand for smart home technologies in the post-pandemic era. This compliance news may serve as a catalyst for renewed investor interest, but sustained performance will be key to long-term market confidence.

GUANGZHOU, China, Aug. 17, 2024 /PRNewswire/ -- Viomi Technology Co., Ltd ("Viomi" or the "Company") (NASDAQ: VIOT), a leading technology company for home water solutions in China, today announced that it has received a written notification letter (the "Compliance Notice") from the Listing Qualifications Department of the Nasdaq Stock Market ("Nasdaq") dated August 16, 2024, informing the Company that it has regained compliance with the Nasdaq Listing Rule 5450(a)(1) (the "Minimum Bid Price Requirement").

As previously announced, on March 26, 2024, Viomi received a notification letter from Nasdaq indicating that the Company was not in compliance with the Minimum Bid Price Requirement, as the closing bid price of the Company's American Depositary Shares (the "ADSs") was below US$1.00 per ADS for 30 consecutive business days. According to the Compliance Notice, the closing bid price of the Company's ADSs has been at $1.00 per ADS or greater for ten consecutive business days from August 1 to August 15, 2024, and the Company has regained compliance with the Minimum Bid Price Requirement and the matter is closed.

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 third 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 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

View original content:https://www.prnewswire.com/news-releases/viomi-technology-co-ltd-regains-compliance-with-nasdaqs-minimum-bid-price-requirement-302224769.html

SOURCE Viomi Technology Co., Ltd

FAQ

What was the compliance issue Viomi Technology (VIOT) faced with Nasdaq?

Viomi Technology faced non-compliance with Nasdaq's minimum bid price requirement, as its ADS price fell below $1.00 for 30 consecutive business days, notified on March 26, 2024.

How did Viomi Technology (VIOT) regain compliance with Nasdaq's listing rules?

Viomi Technology regained compliance by maintaining its ADS closing bid price at $1.00 or higher for ten consecutive business days from August 1 to August 15, 2024.

When did Viomi Technology (VIOT) receive the compliance notice from Nasdaq?

Viomi Technology received the compliance notice from Nasdaq on August 16, 2024, confirming that it had regained compliance with the minimum bid price requirement.

What is the significance of Viomi Technology (VIOT) regaining Nasdaq compliance?

Regaining compliance resolves the potential delisting risk for Viomi Technology and ensures its continued listing on the Nasdaq Stock Market, which is important for investor confidence and market accessibility.