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Viomi InvestorRoom Viomi Technology Co. , Ltd Reports Third Quarter 2021 Unaudited Financial Results Gross margin improved to 22.7 % from 17.1 % a year ago GUANGZHOU , China , Nov. 24 , 2021 / PRNewswire / -- Viomi Technology Co. , Ltd ( " Viomi " or the " Company " ) ( NASDAQ : VIOT ) , a leading IoT @ Home technology company in China , today announced its unaudited financial results for the third quarter endedSeptember 30 , 2021 . Third Quarter 2021 Financial and Operating Highlights • Net revenues reached RMB1,056.5 million ( US $ 164.0 million ) , compared to RMB1,486.7 million for the third quarter of 2020 . • Gross margin was 22.7 % , compared to 17.1 % for the third quarter of 2020 . • Number of cumulative household users reached approximately 6.3 million , compared to approximately 5.9 million as of the end of the second quarter of 2021 and approximately 4.6 million as of the end of the third quarter of 2020 . • Percentage of household users with at least two connected products reached 21.1 % , compared to 20.7 % as of the end of the second quarter of 2021 and 19.5 % as of the end of the third quarter of 2020 . " During the third quarter , we further enhanced our one - stop loT home solutions platform to realize Al - driven loT home scenarios . We also continued to optimize our product portfolio and execute our ' trending technology ' brand marketing and ' larger store , better merchant ' channel strategy . Moreover , we increased our investment in R & D and expanded our Al , algorithms and hardware research and development teams to accelerate Al product innovation and technology accumulation , which significantly increased our R & D expenses . To enhance brand awareness , we also invested in additional advertising and marketing resources in the third quarter . Due to the substantial increase in R & D and marketing expenses , our bottom line declined temporarily while our strategy adjustment and resource investment once again generated gross margin recovery , increased brand recognition and more diversified , balanced sales channels equipped to handle sales and service of our smart home products . Our overall business is developing in a high - quality , healthy direction , " said Mr. Xiaoping Chen , Founder , Chairman of the Board of Directors and Chief Executive Officer of Viomi . " With respect to product development , we have developed our product strategy from three perspectives : ( i ) we increased our investment in R & D as well as technology innovation and Al application , enhancing our brand influence through product optimization ; ( ii ) we provide users with customized bundle purchase solutions rather than solely selling individual products ; ( iii ) we focus on scenario innovation and will complete our smart home category to provide a more comprehensive smart home experience . We introduced a series of new Al products in the first half of 2021 , including the all - direction air conditioner , premium sweeper robot Alpha 2 Plus , EyeBot range rood , and 800G - 1200G Super series large - flux water purifiers . We also launched the Cyber series of our smart wet / dry vacuums in September . All of these products demonstrated strong sales performance in the third quarter , driving continued gross margin recovery . Furthermore , we introduced new SKUs in the smart home category , such as EyeLink 2T smart lock with Al face recognition technology . We will roll out exciting new product lines in the coming quarters , including smart home , smart kitchen , water purifier , and cleanliness products , among others . " " Second , to enhance our branding influence , we invited one of China's top celebrities , Deng Lun , to become our global branding spokesperson and established our ' trending technology ' brand positioning . In the second half of this year , we broadened our omni- channel marketing and advertising activities including elevator advertisements , print media , television and social media . Our brand's search frequency on major search engines has climbed and our internal data shows an increase in post - 90s users and users from new tier - one and tier - two cities over the past few months . " " Third , we increased our exposure and sales on new content channels such as Pinduoduo , Douyin and Kuaishou . We have built an exclusive team for these new sales channels to boost traffic and attract more young consumers , and our short - form video marketing and KOL livestreaming has enhanced brand awareness and contributed to an increase in sales . The revenue contribution from these new channels has increased in the past few months as well . "