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Ꮩ VIOMIZ ** loT @Home Viomi Technology Co. , Ltd Reports First Quarter 2021 Unaudited Financial Results May 27 , 2021 Net revenues increased by 64.0 % year - over - year , exceeding previous guidance Gross margin increased to 21.1 % from 18.8 % a year ago GUANGZHOU , China , May 27 , 2021 ( GLOBE NEWSWIRE ) -- Viomi Technology Co. , Ltd ( " Viomi " or the " Company " ) ( NASDAQ : VIOT ) , a leading loT @ Home technology company in China , today announced its unaudited financial results for the first quarter ended March 31 , 2021 . First Quarter 2021 Financial and Operating Highlights • Net revenues reached RMB1,255.6 million ( US $ 191.6 million ) , an increase of 64.0 % from the first quarter of 2020 . • Gross margin was 21.1 % , compared to 18.8 % for the first quarter of 2020 . • Net income attributable to ordinary shareholders of the Company increased by 173.2 % to RMB49.1 million ( US $ 7.5 million ) from RMB18.0 million for the first quarter of 2020 . • Non - GAAP net income attributable to ordinary shareholders of the Company1 increased by 106.8 % to RMB65.3 million ( US $ 10.0 million ) from RMB31.6 million for the first quarter of 2020 . • Number of cumulative household users reached to approximately 5.6 million , compared to approximately 5.1 million as of the end of 2020 and approximately 3.7 million as of the end of the first quarter of 2020 . • Percentage of household users with at least two connected products reached 20.4 % , compared to 20.0 % as of the end of 2020 and 18.4 % as of the end of the first quarter of 2020 . 1 " Non - GAAP net income attributable to ordinary shareholders of the Company " is defined as net income attributable to ordinary shareholders of the Company excluding share - based compensation expenses . See " Reconciliation of GAAP and Non - GAAP Results " at the end of this press release . " We started 2021 with an all - around robust performance in the first quarter . Leveraging the optimization of our product portfolio , new product sales growth and enhanced brand recognition , we delivered strong net revenues that exceeded our previous guidance , increasing 64.0 % from the same period in 2020 when our operations were impacted by COVID - 19 . We also continued achieving a healthy recovery on gross margin , " said Mr. Xiaoping Chen , Founder , Chairman of the Board of Directors and Chief Executive Officer of Viomi . " Our continued growth over the past several years has been driven by continuous optimization of our loT products and holistic loT solutions , through innovation and integration of cross - boundary technologies , alongside a deep understanding of our users ' needs . We remain focused on Al applications across our product portfolio and have introduced a series of strategic new Al - based products , including water purifiers , smart toilets , water heaters , range hoods , gas stoves and air conditioners , among others . Our products are designed with an eye on health care , smartification , home security and natural Al voice interactions . Some new products , equipped with sensors and supported by Al algorithms , are able to collect home and human health data with users ' consent , " Mr. Chen added . " In addition , we focused our resources on developing key product categories and rolled out more differentiated and industry - leading products . Following our introduction of a series of premium large - flux water purifiers , we launched a mineral water purifier , EROX , which retains beneficial minerals for human health during the purification process to meet high - end users ' needs . We have accumulated a significant number of innovative technologies and patents in the area of water purification , with more than 700 registered patents as of the end of the first quarter . Some of these patents have been awarded the China Excellent Patent Award , authorized by China National Intellectual Property Administration and World Intellectual Property Organization , as well as recognized by China Association for Quality Inspection and other authorities . " First quarter growth was also attributable to our overseas market expansion . Our sweeper robot business which launched in the fourth quarter of last year has developed rapidly in Mid Europe , Southeast Asia , Korea , Australia and other regions and expanded to North Europe and additional Asian countries this year . We plan to expand to North American markets and channels in the second half of this year . The new sweeper robot products with differentiated functionalities we introduced earlier have been welcomed by domestic and global markets , and are expected to continue driving sales in overseas channels . " Looking ahead at the rest of 2021 , we will continue to optimize our loT product portfolio with a focus on Al application and technology innovation , strengthen our brand recognition through additional effective marketing and advertising tools , and improve our loT home services including sales , experience , after - sale and installation services , enhancing overall 5G loT home system and user experience while maintaining our leading position in the loT home industry and bringing long - term shareholder value , " concluded Mr. Chen . First Quarter 2021 Financial Results REVENUE Net revenues increased by 64.0 % to RMB1,255.6 million ( US $ 191.6 million ) from RMB765.5 million for the first quarter of 2020 , primarily due to the continued successful rollout and significant increase in sales of new products , overseas market expansion , as well as the low - base effect of the first quarter of last year due to COVID - 19 .