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Ꮩ VIOMIZ * loT @Home Viomi Technology Co. , Ltd Reports Second Quarter 2021 Unaudited Financial Results August 25 , 2021 Gross margin recovered to 21.2 % from 14.3 % a year ago Net income attributable to ordinary shareholders increased significantly , by 367.4 % year - over - year GUANGZHOU , China , Aug. 25 , 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 second quarter ended June 30 , 2021 . Second Quarter 2021 Financial and Operating Highlights • Net revenues reached RMB1,658.9 million ( US $ 256.9 million ) , compared to RMB1,684.4 million for the second quarter of 2020 . • Gross margin was 21.2 % , compared to 14.3 % for the second quarter of 2020 . • Net income attributable to ordinary shareholders of the Company increased by 367.4 % to RMB46.1 million ( US $ 7.1 million ) from RMB9.9 million for the second quarter of 2020 . • Non - GAAP net income attributable to ordinary shareholders of the Company 1 increased by 44.9 % to RMB59.5 million ( US $ 9.2 million ) from RMB41.1 million for the second quarter of 2020 . • Number of cumulative household users reached approximately 5.9 million , compared to approximately 5.6 million as of the end of the first quarter of 2021 and approximately 4.2 million as of the end of the second quarter of 2020 . • Percentage of household users with at least two connected products reached 20.7 % , compared to 20.4 % as of the end of the first quarter of 2021 and 19.0 % as of the end of the second 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 “ Use of Non - GAAP Measures " and " Reconciliation of GAAP and Non - GAAP Results " included elsewhere in this press release . " We optimized the product portfolio for certain categories in the second quarter and increased sales of new products with higher gross margins , further enhancing our business operations and improving overall gross margin and profitability , " said Mr. Xiaoping Chen , Founder , Chairman of the Board of Directors and Chief Executive Officer of Viomi . " We have been working to develop a 5G loT home structure , which integrates a technology framework , sensors , Al algorithms , 5G IoT chip modules , smart hardware and cloud storage . This structure encourages further implementation of our one - stop loT home solutions , providing our users with smart home appliances , smart home devices and software services across home scenarios . " " We officially announced our ' trending technology ' branding strategy , which is underscored by our products , channel operations and marketing . With respect to product research and development , we continued to focus on Al applications and innovation to support our ' Al : Helpful ' product strategy . Following the successful April debut of a series of new products including the EROX mineral water purifier , the Alpha 2 Plus premium sweeper robot , and Space , our all - direction air conditioner , we recently launched our Super Pro 1200G water purifier , our Cross 2 X1 Al - enabled range hood , and other new Al products with technology upgrades . Many of these cutting - edge products are leading industry consumption trends , " added Mr. Chen . " We also implemented our ' larger store , better merchant ' channel strategy . We have collaborated with high - quality merchants with strong store operation experience to open larger experience stores and improve store image . These larger stores provide users with more comprehensive , scenario - based experiences and services , enhancing our ' trending technology ' brand image . We have established 4S and 5S flagship experience stores encompassing over 200 square meters and 300 square meters , respectively in Henan , Hubei , Gansu , Liaoning and other provinces to offer sales , installation and after - sale services . Furthermore , this channel strategy promotes bundled sales , decreases customer acquisition cost and drives our overall offline market growth . " " We are reaching more diverse consumer groups with our omnichannel marketing tools and branding efforts . We invited one of China's top celebrities to become our product spokesperson , enhancing our brand recognition among younger generations . To target more consumers in cities , we collaborated with Focus Media and Xinchao Media to advertise in around 100 major cities across the nation , as well as three top domestic airline magazines to increase our exposure to high - end consumers . We also strengthened our new channel marketing on social media including Douyin and Little Red Book through short - form videos and key opinion leader ( KOL ) livestreaming . We expect our efforts in product innovation , channel optimization and branding activities to strengthen our ' trending technology ' brand positioning as well as grow our customer base . " " The overseas expansion of our sweeper robot business is progressing in line with our planning . In addition to our previous coverage in more than 10 countries in Europe , Asia and Australia , we began selling units in India , Saudi Arabia , Thailand and North European countries in the second quarter . Our products were launched on U.S. Amazon in August , marking our official entry into the North American market . We will continue to expand globally and begin development of the self - operating mode in the second half of 2021. Furthermore , our product pipeline includes a series of new sweeper robot products for both domestic and overseas markets . In addition to our automatic dust collection and UV disinfection technologies , we are making great strides with lidar and obstacle avoidance technology upgrades . "