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UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT
OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2026
Commission File Number: 001-38649
No. 7 Licun Industrial Avenue, Lunjiao Subdistrict, Shunde District
Foshan, Guangdong, 528308
People’s
Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F ☒ | Form 40-F ☐ |
Incorporation
by Reference
This current report on Form 6-K is hereby incorporated by reference in the registration statement of Viomi Technology Co., Ltd on Form F-3 (No. 333-297335) and Form S-8 (No. 333-230431), to the extent not superseded by documents or reports subsequently filed or furnished.
Exhibit Index
| Exhibit 99.1 | — | Unaudited Condensed Consolidated Financial Statements of Viomi Technology Co., Ltd | |
| 101.INS | — | Inline XBRL Instance Document—this instance document does not appear in the Interactive Data File because its XBRL tags embedded within the Inline XBRL document | |
| 101.SCH | — | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | — | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | — | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
VIOMI TECHNOLOGY CO., LTD
|
||
| By: | /s/ Xiaoping Chen |
|
| Name: | Xiaoping Chen | |
| Title: | Chief Executive Officer | |
Date: September 30, 2026
Exhibit 99.1
VIOMI TECHNOLOGY CO., LTD
INDEX TO THE UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
| F-1 |
VIOMI TECHNOLOGY CO., LTD
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| (Note2(e)) | ||||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Restricted cash | ||||||||||||
| Short-term deposits | ||||||||||||
| Short-term investments | ||||||||||||
| Accounts and notes receivable from third parties (net of allowance of RMB and RMB as of December 31, 2025 and June 30, 2026, respectively) | ||||||||||||
| Accounts receivable from related parties (net of allowance of as of December 31, 2025 and June 30, 2026) | ||||||||||||
| Other receivables from related parties (net of allowance of as of December 31, 2025 and June 30, 2026) | ||||||||||||
| Inventories, net | ||||||||||||
| Prepaid expenses and other current assets | ||||||||||||
| Total current assets | ||||||||||||
| Non-current assets: | ||||||||||||
| Prepaid expenses and other non-current assets | ||||||||||||
| Property, plant and equipment, net | ||||||||||||
| Long-term deposits | ||||||||||||
| Deferred tax assets | ||||||||||||
| Intangible assets, net | ||||||||||||
| Right-of-use assets, net | ||||||||||||
| Land use rights, net | ||||||||||||
| Long-term investment | ||||||||||||
| Total non-current assets | ||||||||||||
| TOTAL ASSETS | ||||||||||||
| Liabilities and shareholders’ equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts
and notes payable (including accounts and notes payable of the consolidated variable interest entities and their subsidiaries (“VIEs”)
without recourse to the Company of RMB |
||||||||||||
| Advances from customers | ||||||||||||
| Amount due to related parties | ||||||||||||
| Accrued
expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the
Company of RMB |
||||||||||||
| Short-term borrowing | ||||||||||||
| Income tax payables | ||||||||||||
| Lease liabilities due within one year | ||||||||||||
| Long-term borrowing-current portion | ||||||||||||
| Total current liabilities | ||||||||||||
| Non-current liabilities: | ||||||||||||
| Accrued expenses and other liabilities–non-current portion | ||||||||||||
| Long-term borrowing | ||||||||||||
| Lease liabilities | ||||||||||||
| Total non-current liabilities | ||||||||||||
| TOTAL LIABILITIES | ||||||||||||
| Commitments and contingencies (Note 22) | ||||||||||||
| Shareholders’ equity | ||||||||||||
| Class A Ordinary Shares (US$ par value; shares authorized; and shares issued and outstanding as of December 31, 2025 and June 30, 2026, respectively) | ||||||||||||
| Class B Ordinary Shares (US$ par value; shares authorized; and shares issued and outstanding as of December 31, 2025 and June 30, 2026, respectively) | ||||||||||||
| Treasury stock | ( |
) | ( |
) | ( |
) | ||||||
| Additional paid-in capital | ||||||||||||
| Retained earnings | ||||||||||||
| Accumulated other comprehensive loss | ( |
) | ( |
) | ( |
) | ||||||
| Total equity attributable to shareholders of the Company | ||||||||||||
| Non-controlling interests | ||||||||||||
| Total shareholders’ equity | ||||||||||||
| Total liabilities and shareholders’ equity | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| F-2 |
VIOMI TECHNOLOGY CO., LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| Six Months Ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| (Note2(e)) | ||||||||||||
| Net revenues: | ||||||||||||
| Related parties | ||||||||||||
| Third parties | ||||||||||||
| Total net revenues | ||||||||||||
| Cost of revenues | ( |
) | ( |
) | ( |
) | ||||||
| Gross profit | ||||||||||||
| Operating expenses | ||||||||||||
| Research and development expenses | ( |
) | ( |
) | ( |
) | ||||||
| Selling and marketing expenses | ( |
) | ( |
) | ( |
) | ||||||
| General and administrative expenses | ( |
) | ( |
) | ( |
) | ||||||
| Total operating expenses | ( |
) | ( |
) | ( |
) | ||||||
| Other income, net | ||||||||||||
| Income (loss) from operations | ( |
) | ( |
) | ||||||||
| Interest and investment income, net | ||||||||||||
| Income (loss) before income tax expenses | ( |
) | ( |
) | ||||||||
| Income tax (expenses) benefit | ( |
) | ||||||||||
| Net income (loss) from operations | ( |
) | ( |
) | ||||||||
| Net income(loss) | ( |
) | ( |
) | ||||||||
| Less: Net income (loss) attributable to the non-controlling interest shareholders | ( |
) | ( |
) | ||||||||
| Net income (loss) attributable to ordinary shareholders of the Company | ( |
) | ( |
) | ||||||||
| Other comprehensive loss, net of tax: | ||||||||||||
| Foreign currency translation adjustment | ( |
) | ( |
) | ( |
) | ||||||
| Total comprehensive income (loss) attributable to ordinary shareholders of the Company | ( |
) | ( |
) | ||||||||
| Net income (loss) per share attributable to ordinary shareholders of the Company | ||||||||||||
| -Basic | ( |
) | ( |
) | ||||||||
| -Diluted | ( |
) | ( |
) | ||||||||
| Weighted average number of ordinary shares used in calculating net income (loss) per share | ||||||||||||
| -Basic | ||||||||||||
| -Diluted | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| F-3 |
VIOMI TECHNOLOGY CO., LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
| Attributable | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A ordinary shares | Class B ordinary shares |
Additional Paid-in |
Treasury stock | Retained |
Accumulated Other Comprehensive Income |
to Shareholders of the |
Non- Controlling |
Total Shareholders’ |
||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Shares | Amount | Earnings | (Loss) | Company | Interest | Equity | |||||||||||||||||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2025 | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to the Company and non-controlling interest shareholders | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
| Purchase of equity interests from non-controlling interests | - | - | ( |
) | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||
| Share-based compensation related to 2015 and 2018 Share Incentive Plan | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares for exercised share options | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation loss | - | - | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2026 | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Net loss attributable to the Company and non-controlling interest shareholders | - | - | - | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||
| Share-based compensation related to 2015 and 2018 Share Incentive Plan | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares for exercised share options | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of ordinary shares | ( |
) | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Appropriation to statutory reserves | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | - | - | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Class B Ordinary Shares converted to Class A Ordinary Shares | ( |
) | - | |||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| F-4 |
VIOMI TECHNOLOGY CO., LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| Six Months Ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| (Note 2(e)) | ||||||||||||
| Net cash provided by (used in) operating activities | ( |
) | ( |
) | ||||||||
| Cash flows from investing activities | ||||||||||||
| Purchase of equipment | ( |
) | ( |
) | ( |
) | ||||||
| Purchase of lease hold improvement | ( |
) | ( |
) | ||||||||
| Purchase of intangible assets | ( |
) | ( |
) | ( |
) | ||||||
| Purchase of short-term investments | ( |
) | ( |
) | ( |
) | ||||||
| Maturity of short-term investments | ||||||||||||
| Disposal of property and equipment | ||||||||||||
| Placement of long-term investments | ( |
) | ( |
) | ||||||||
| Placement of long-term deposits | ( |
) | ( |
) | ||||||||
| Maturities of long-term deposits | ||||||||||||
| Placement of short-term deposits | ( |
) | ( |
) | ( |
) | ||||||
| Maturities of short-term deposits | ||||||||||||
| Net cash used in investing activities | ( |
) | ( |
) | ( |
) | ||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from exercise of vested share options | ||||||||||||
| Receipt of borrowing | ||||||||||||
| Repayment of borrowing | ( |
) | ( |
) | ( |
) | ||||||
| Dividend Paid | ( |
) | ( |
) | ||||||||
| Purchase of non-controlling interests | ( |
) | ||||||||||
| Repurchase of ordinary shares | ( |
) | ( |
) | ||||||||
| Net cash used in financing activities | ( |
) | ( |
) | ( |
) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | ( |
) | ( |
) | ( |
) | ||||||
| Net decrease in cash and cash equivalents and restricted cash | ( |
) | ( |
) | ( |
) | ||||||
| Cash and cash equivalents and restricted cash at the beginning of the period | ||||||||||||
| Cash and cash equivalents and restricted cash at the end of the period | ||||||||||||
| Including: | ||||||||||||
| Cash and cash equivalents of operations at the end of the period | ||||||||||||
| Restricted cash of operations at the end of the period | ||||||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Acquisition of equipment in form of other payable | ||||||||||||
| Decrease in a right-of-use asset due to remeasurement of lease terms | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| F-5 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 1. | ORGANIZATION AND PRINCIPAL ACTIVITIES |
| (a) | Principal activities |
Viomi
Technology Co., Ltd (the “Company”) is a holding company incorporated under the Laws of the Cayman Islands in
As of June 30, 2026, details of the Company’s principal subsidiaries and VIEs were as follows:
|
Place of incorporation |
Date of incorporation |
Percentage of beneficial ownership |
Principal activities | |||||||
| Subsidiaries: | ||||||||||
| Viomi HK | Hong Kong | January 30, 2015 | % | Investment holding | ||||||
| Lequan | PRC | May 05, 2015 | % | Investment holding | ||||||
| Codream HK | Hong Kong | August 20, 2019 | % | Investment holding | ||||||
| Yunmi Hulian | PRC | December 9, 2019 | % | Investment holding | ||||||
| Zhumeng Hulian | PRC | October 14, 2020 | % | Investment holding | ||||||
| Guangdong Lizi | PRC | July 26, 2018 | % | Home appliance development and sales | ||||||
| VIEs: | ||||||||||
| Guangdong Interconnect | PRC | December 7, 2020 | % | Internet information services | ||||||
| Beijing Viomi | PRC | January 12, 2015 | % | No substantial business | ||||||
| (b) | VIE Arrangements between the VIEs and the Company’s PRC subsidiaries |
The Company, through Lequan or Zhumeng Hulian, entered into a series of contractual arrangements, including: (1) exclusive consultation and service agreements; (2) exclusive purchase option agreements, (3) shareholder voting proxy agreements and (4) equity pledge agreements with Beijing Viomi, Guangdong Interconnect and their shareholders, respectively. These arrangements enable Lequan or Zhumeng Hulian through their PRC subsidiaries to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, through the exercise of the shareholders’ rights under the shareholder voting proxy agreement as the shareholders’ meetings of the VIEs appoint the board of directors of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs through the exclusive consultation and service agreement. Accordingly, Lequan or Zhumeng Hulian are considered the primary beneficiaries of the respective VIEs and have consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements.
In making the conclusion that Lequan or Zhumeng Hulian are the primary beneficiaries of the VIEs, the Company believes Lequan or Zhumeng Hulian’s rights under the terms of the option agreement provide them with a substantive kick-out right. As advised by the Company’s PRC legal counsel, the Company believes the terms of the option agreement are valid, binding and enforceable under PRC laws and regulations currently in effect. The Company also believes that the consideration which is the minimum amount permitted by the applicable PRC law to exercise the option does not represent a financial barrier or disincentive for Lequan or Zhumeng Hulian to currently exercise their rights under the exclusive option agreement.
A simple majority vote of Lequan or Zhumeng Hulian’s board of directors is required to pass a resolution to exercise their rights under the option agreement. Lequan or Zhumeng Hulian’s rights under the option agreement give them the power to control the shareholders of Beijing Viomi and Guangdong Interconnect In addition, Lequan or Zhumeng Hulian’s rights under the shareholder voting proxy agreement also reinforce their abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Company also believes that this ability to exercise control ensures that the VIEs will continue to execute consultation and service agreements and also ensures that consultation and service agreements will be executed and renewed indefinitely unless a written agreement is signed by all parties to terminate it or a mandatory termination is requested by PRC laws or regulations. Lequan and Zhumeng Hulian have the rights to receive substantially all of the economic benefits from the VIEs.
On March 20, 2026, the exclusive consultation and service agreements and equity pledge agreements between Lequan, Beijing Viomi and each of the shareholders of Beijing Viomi was subsequently amended and restated, and the terms were substantially similar to the exclusive consultation and service agreements described before. Other than the amendments described above, there have been no material changes to the contractual arrangements with the VIEs, the Company’s determination of the primary beneficiary of the VIEs, or the related risks since December 31, 2025.
The Company believes that the contractual arrangements among its subsidiaries, their VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit Lequan and Zhumeng Hulian’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could could take various regulatory or enforcement actions that could adversely affect the Company’s business and its ability to consolidate the VIEs.
| F-6 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 1. | ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) |
| (b) | VIE Arrangements between the VIEs and the Company’s PRC subsidiaries (Continued) |
The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and its subsidiaries taken as a whole on an aggregated basis, which were included in the Group’s unaudited condensed consolidated financial statements. For purposes of this presentation, activity within and between the VIEs and their subsidiaries have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination.
|
As of December 31, |
As of June 30, |
|||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Cash and cash equivalents | ||||||||
| Accounts receivable from third parties (net of allowance of as of December 31, 2025 and June 30, 2026) | ||||||||
| Accounts receivable from related parties | ||||||||
| Amounts due from Group companies | ||||||||
| Inventories | ||||||||
| Other assets | ||||||||
| Total assets | ||||||||
| Accounts and notes payable | ||||||||
| Amounts due to Group companies | ||||||||
| Accrued expenses and other liabilities | ||||||||
| Other liabilities | ||||||||
| Total liabilities | ||||||||
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenue from Group companies (1) | ||||||||
| Revenue from a related party and third parties | ||||||||
| Cost from a related party and third parties | ( |
) | ( |
) | ||||
| Net loss | ( |
) | ( |
) | ||||
| (1) |
VIEs
sell certain products and provide marketing services to other subsidiaries. For the six months ended June 30, 2025 and 2026, the inter-company
sales recognized by VIEs to Primary beneficiaries of VIEs and their subsidiaries for the six months ended June 30, 2025 and 2026 are
and RMB
| F-7 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
| (a) | Basis of presentation |
The unaudited condensed consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Group, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2026, and its results of operations for the six months ended June 30, 2025 and 2026, and cash flows for the six months ended June 30, 2025 and 2026. The condensed balance sheet as of December 31, 2025, was derived from audited annual financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with audited consolidated financial statements and accompanying notes in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2025. The consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.
| (b) | Consolidation |
The Group’s unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiaries are the primary beneficiaries. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation.
| (c) | Use of estimates |
The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the unaudited condensed consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s unaudited condensed consolidated financial statements include sales returns, inventory valuation, product warranties, variable consideration, share-based compensation, allowance for credit losses, and the valuation allowance for deferred tax assets. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements.
| (d) | Foreign currency translation |
The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and British Virgin Islands are United States dollar (“US$”), while the functional currency of the Group’s entities in the PRC is RMB, which is their respective local currency. In the unaudited condensed consolidated financial statements, the financial information of the Company and its subsidiaries in Hong Kong and British Virgin Islands, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, and incomes are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive loss in the statements of comprehensive income (loss).
Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in Foreign currency translation adjustment in the unaudited condensed consolidated statements of comprehensive income (loss).
| F-8 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
| (e) | Convenience translation |
Translations
of balances in the unaudited condensed consolidated balance sheets, unaudited condensed consolidated statements of comprehensive income
(loss) and unaudited condensed consolidated statements of cash flows from RMB into US$ as of and for the six months ended June 30, 2026
are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 = RMB
| (f) | Accounts receivable |
Accounts receivable are stated at the historical carrying amount net of allowance for credit losses. On January 1, 2020, the Group adopted ASC326, “Financial Instruments—Credit Losses” using modified retrospective transition approach. The Group provides an allowance against accounts receivable to the amount management reasonably believe will be collected. The Group writes off trade receivable when they are deemed uncollectible.
The Group maintains an allowance for credit losses which reflects its best estimate of amounts that potentially will not be collected. Accounts receivable have been grouped based on shared credit risk characteristics and days past due to estimate, taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors.
| (g) | Revenue recognition |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) and subsequently, the FASB issued several amendments which amend certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as “ASC 606”). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group will enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Group adopted ASC 606 for all periods presented.
The Group’s revenue is primarily derived from (i) Home water systems, which are composed of smart water purification systems, kettles and heaters, (ii) consumable products complementary to the Group’s Home water systems, such as water purifier filters, (iii) Kitchen appliances and others. Refer to Note 14 to the unaudited condensed consolidated financial statements for disaggregation of the Group’s revenue by type of product and service for the six months ended June 30, 2025 and 2026.
| 1) | The Group conducts its business through various contractual arrangements. |
| a) | Sales to Xiaomi |
The Group generated a substantial portion of its revenues from sales of products to Xiaomi.
Under the cooperation agreement entered into between the Group and Xiaomi, the Group is responsible for design, research, development, production, and delivery of designated products using the brand name of “Xiaomi” (“Xiaomi-branded products”). Xiaomi is responsible for commercial distributions and sales. Revenue is recognized upon acceptance by this customer, which is considered at the time the control of the products is transferred to Xiaomi.
For
a majority of types of products sold to this customer, the selling price is a fixed amount as agreed by both parties. For other types
of products sold to this customer, the sales arrangement includes
| F-9 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
The second installment payment represents variable consideration because the amount of consideration to which the Group is entitled depends on future events, including the customer’s subsequent commercial sales of the relevant products and the determination of the related gross profits. Accordingly, the Group determines the transaction price as the fixed first installment payment plus the variable second installment payment to the extent that it is probable that a significant revenue reversal will not occur when settling with the customer subsequently.
For
the six months ended June 30, 2025 and 2026, total net revenues earned from the variable second installment payment arrangement, represented
| b) | Sales to third-party customers, including: sales to leading e-commerce platforms and offline stores; and sales to customers directly through the online platforms operated by Xiaomi, third parties and the Group. |
The Group recognizes revenue for the sales to third-party customers in accordance with the applicable revenue recognition method for each of the distinct performance obligation identified. Sales of products is recognized upon acceptance by customers after delivery. Installation services revenues are recognized when the services are rendered.
- Sales to leading e-commerce platforms and offline experience stores
Pursuant to the contracts between the Group and the leading e-commerce platforms/offline experience stores (“e-commerce platforms and stores”), the e-commerce platforms and stores have legal title and physical possession of the products upon acceptance and they would bear the risk of loss due to physical damage before the products are transferred and accepted by end customers. The e-commerce platforms and stores are responsible for delivering the products to end customers and can direct the use of the products and obtain the remaining benefits from the products by reselling the products. The e-commerce platforms and stores have flexibility in determining the retail sales price within relatively broad price range set by the Group. Based on these indicators, the Group determined the e-commerce platforms and stores (as opposed to the end customers) as its customers according to ASC 606-10-55-39. The Group recognizes revenue equal to the sales price to the e-commerce platforms and stores when control of the inventory is transferred.
- Sales to customers directly through the online platforms operated by Xiaomi, third parties and the Group
Under the cooperation agreements entered between the Group and online platforms, the platforms’ responsibilities are limited to offering an online marketplace, while the Group is primarily obligated in a sales transaction and takes inventory risk and has latitude in determining prices. The platforms charged the Group commission fees at pre-determined amounts or a fixed rate based on the sales amounts. Commission fees are recognized as selling expenses. The Group determined the end customers (as opposed to the platforms) as its customers and recognizes revenue equal to the sales price to the end customers when control of the inventory is transferred.
- Rendering of services
The Group provides installation service to end customers for designated Viomi-branded products without separate charge. The installation service is considered being distinct and accounted for as a separate performance obligation. The Group expects to be entitled to a breakage amount in the contract liabilities related to installation services. The Group estimates the breakage portion based on historical customers’ requests and recognizes estimated breakage as revenue in proportion to the pattern of rights exercised by end customers on a semi-annually basis.
The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling price. The standalone selling price of the products is determined based on adjusted market assessment approach, while the standalone selling price of the installation services is determined using a cost-plus margin approach.
| 2) | Sales returns and sales incentives |
For
sales to leading e-commerce platforms, the Group estimates sales returns and sales incentives as variable consideration in determining
the transaction price. Based on historical information and other relevant evidence, the Group recognizes revenue only to the extent that
it is probable that a significant reversal of cumulative revenue recognized will not occur. For the six months ended June 30, 2025 and
2026, the expected sales return was RMB
| F-10 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Further, the Group might provide various consideration to the e-commerce platforms, such as gross margin guarantee, advertising and promotion fees, in the form of cash, or directly reducing amounts owed to the Group by the e-commerce platforms. The Group evaluates each type of incentives or fees to be paid in accordance with ASC 606 and reduces the transaction price for the sale of products by the amount of various consideration payable to the e-commerce platforms considering that the Group either does not receive any service from the e-commerce platforms or cannot elect to engage another vendor to provide similar advertising services on a standalone basis.
For sales through online platforms, end customers have an unconditional right to return products purchased through online platforms within 7 days. The Group bases its estimates of sales returns on historical results and recognizes revenue net of estimated sales returns and sales incentives.
| 3) | Warranty |
The Group offers product warranty pursuant to standard product quality required by consumer protection law. Such warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, an estimate of warranty expenses is recorded and recognized as cost of revenues.
| 4) | Value added taxes |
Value
added taxes (“VAT”) on sales is calculated at
| 5) | Contract balances |
Key customers, including Xiaomi and third-party customers, are entitled to a credit term. The expected length of time between the products being transferred to customers and when they pay for those products is short. There is no difference between the amount of promised consideration and the cash selling price of the promised products. Therefore, the Group concludes that the contracts with these key customers generally do not include a significant financing component.
The Group does not have contract assets as of December 31, 2025 and June 30, 2026. Contract liabilities consist of deferred revenue related to the Group’s provision of installation services, where there is still an obligation to be fulfilled by the Group. The contract liabilities will be recognized as revenue when all of the revenue recognition criteria are met.
As
of December 31, 2025 and June 30, 2026, deferred revenue were RMB
| F-11 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
| (h) | Current expected credit losses |
The
Group’s accounts and notes receivable and other receivables from related parties and third parties are within the scope of ASC
Topic 326. The Group has identified the relevant risk characteristics of its customers and the related accounts and notes receivable
and other receivables based on their credit rating. Receivables with similar risk characteristics have been grouped into pools. For each
pool, the Group considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic
conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit
loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact
the Group’s receivables. Additionally, macroeconomic factors are also considered. This is assessed at each period based on the
Group’s specific facts and circumstances. For the six months ended June 30, 2025, and 2026, the Group recorded expected credit
losses of RMB
The following table summarizes the activity in the allowance for credit losses related to accounts and notes receivable and other receivables from related parties for the six months ended June 30, 2025, and 2026:
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Balance at beginning of the period | ||||||||
| Current period provision | ||||||||
| Reversals | ( |
) | ( |
) | ||||
| Write off | ( |
) | ( |
) | ||||
| Balance at end of the period | ||||||||
| (i) | Income taxes |
Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income (loss) in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.
Uncertain tax positions
The
guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition
and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on the recognition of income
tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties
associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required
in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests
and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses
in its consolidated statements of comprehensive income (loss). The Group did not recognize any interest and penalties associated with
uncertain tax positions for the six months ended June 30, 2025 and 2026. As of December 31, 2025 and June 30, 2026, the Group did
| F-12 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
| (j) | Statutory reserves |
The Company’s subsidiaries and VIEs established in the PRC are required to make appropriations to certain non-distributable reserve funds.
In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Company’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their annual after-tax profits (as determined under generally accepted accounting principles in the PRC (“PRC GAAP) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the annual after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion.
In addition, in accordance with the PRC Company Laws, the Group’s VIEs registered as Chinese domestic company must make appropriations from its annual after-tax profits as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the annual after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company.
The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund are a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of all employees. None of these reserves are allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.
The
appropriations to statutory reserve funds amounted to
and RMB
| (k) | Income (Loss) per share |
Basic income (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Net losses are not allocated to other participating securities if based on their contractual terms they are not obligated to share the losses.
Diluted income (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive.
| F-13 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
| (l) | Recently issued accounting pronouncements |
Recently issued accounting pronouncements adopted
In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. The Group adopted ASU No. 2023-09 from the annual period beginning from January 1, 2025. The adoption of this standard did not have a material impact to its unaudited condensed consolidated financial statements.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient for all entities related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Topic 606. The standard is effective for annual periods beginning after December 15, 2025. Early adoption of ASU 2025-05 is permitted and should be applied prospectively. The Group adopted this guidance effective January 1, 2026. The adoption of this standard did not have a material impact to its unaudited condensed consolidated financial statements.
Recently issued accounting pronouncements not yet adopted
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. This ASU requires entities to 1. disclose amounts of (a) purchase of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and, (e) depreciation, depletion, and amortization recognized as part of oil-and gas-producing activities, 2. include certain amounts that are already required to be disclosed under current Generally Accepted Accounting Principles in the same disclosures as other disaggregation requirements, 3. disclose a qualitative description of the amounts remaining in relevant expense captions that are not necessarily disaggregated quantitatively, and 4. disclose the total amount of selling expenses, in annual reporting periods, an entity’s definition of selling expense. The ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Additionally, in January 2025, the FASB issued ASU No. 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The Group plans to adopt this guidance effective January 1, 2027 and the Group is currently evaluating the impact of adopting this ASU on its unaudited condensed consolidated financial statements.
In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans (ASU 2025-08). The amendments expand the population of acquired loans subject to the gross-up approach, treating non-credit-deteriorated loans (excluding credit cards) as “seasoned” if purchased at least 90 days after origination or acquired in a business combination. ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those annual reporting periods, and the Group is currently evaluating the impact of adopting this ASU on its unaudited condensed consolidated financial statements.
In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities (ASU 2025-10), introducing U.S. GAAP guidance on the accounting for government grants for business entities. The new standard closely aligns with International Accounting Standard (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, covering monetary and tangible nonmonetary assets received from governments while excluding exchange transactions. ASU 2025-10 is effective for annual periods beginning after December 15, 2028 (including interim periods within) and one year later for all other entities, with early adoption permitted. The Group is currently evaluating the impact of adopting this ASU on its unaudited condensed consolidated financial statements.
Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Group’s unaudited condensed consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the unaudited condensed consolidated financial statements upon adoption. The Group does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its unaudited condensed consolidated financial condition, results of operations, cash flows, or disclosures.
| F-14 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 3. | CONCENTRATION AND RISKS |
| (a) | Foreign exchange risk |
The revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies.
| (b) | Credit risk |
Financial instruments that potentially expose the Group to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, short-term and long-term deposits, accounts and notes receivable and amounts due from related parties. The Group places its cash and cash equivalents, restricted cash, short-term investments and short-term deposits with financial institutions with high credit ratings and quality. There has been no recent history of default in relation to these financial institutions and credit risk is immaterial.
The Group conducts credit evaluations of third-party customers and related parties, and generally does not require collateral or other security from its third-party customers and related parties. The Group establishes an allowance for credit losses primarily based upon the age of the receivables and factors surrounding the credit risk of specific third-party customers and related parties.
Concentration risk of accounts and notes receivable from third parties are presented as below:
| As of December 31, | As of June 30, | |||||||||||||||
| 2025 | 2026 | |||||||||||||||
| RMB | RMB | |||||||||||||||
| (unaudited) | ||||||||||||||||
| Company A | % | % | ||||||||||||||
| Company B | % | % | ||||||||||||||
Concentration risk of accounts receivable from related parties are presented as below:
| As of December 31, | As of June 30, | |||||||||||||||
| 2025 | 2026 | |||||||||||||||
| RMB | RMB | |||||||||||||||
| (unaudited) | ||||||||||||||||
| Xiaomi | % | % | ||||||||||||||
| Foshan Viomi | % | % | ||||||||||||||
Concentration risk of other receivables from related parties are presented as below:
| As of December 31, | As of June 30, | |||||||||||||||
| 2025 | 2026 | |||||||||||||||
| RMB | RMB | |||||||||||||||
| (unaudited) | ||||||||||||||||
| Xiaomi | % | % | ||||||||||||||
| (c) | Revenue concentration risk |
| Six Months ended June 30, | ||||||||||||||||
| 2025 | 2026 | |||||||||||||||
| RMB | RMB | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Xiaomi | % | % | ||||||||||||||
| 4. | CASH AND CASH EQUIVALENTS |
Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions. Cash and cash equivalents balance as of December 31, 2025 and June 30, 2026 primarily consist of the following currencies:
| As of December 31, 2025 | As of June 30, 2026 | |||||||||||||||
| Amount | RMB equivalent | Amount | RMB equivalent | |||||||||||||
| (unaudited) | ||||||||||||||||
| RMB | ||||||||||||||||
| US$ | ||||||||||||||||
| Other (i) | ||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||
| (i) |
| F-15 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 5. | RESTRICTED CASH |
As
of December 31, 2025 and June 30, 2026, the Group held restricted cash of RMB
| 6. | SHORT-TERM INVESTMENTS |
Short-term
investments mainly represent company securities and structured deposits. Short-term investments balance as of December 31, 2025 and June
30, 2026 is denominated in RMB, amounted to RMB
| 7. | INVENTORIES, NET |
Inventories, net consisted of the followings:
|
As of December 31, |
As of June 30, |
|||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Finished goods | ||||||||
| Raw materials | ||||||||
| Inventories, net | ||||||||
The
Group recorded inventory written down amounted to RMB
| 8. | PREPAID EXPENSES AND OTHER ASSETS |
|
As of December 31, |
As of June 30, |
|||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Advances to suppliers | ||||||||
| Prepaid expenses | ||||||||
| Other receivables | ||||||||
| Prepayment for equipment | ||||||||
| Lease hold improvement | ||||||||
| Expected return assets | ||||||||
| Total | ||||||||
| Less: non-current portion | ( |
) | ( |
) | ||||
| Prepaid expenses and other assets-current portion | ||||||||
| 9. | PROPERTY, PLANT, AND EQUIPMENT, NET |
|
As of December 31, |
As of June 30, |
|||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Buildings | ||||||||
| Computers and equipment | ||||||||
| Vehicles | ||||||||
| Total | ||||||||
| Less: accumulated depreciation | ( |
) | ( |
) | ||||
| Property, plant, and equipment, net | ||||||||
The
Group had recorded depreciation expense of RMB
In addition, the Group also pledged certain property, plant, and equipment for the Group’s long-term borrowings (See Note 11).
| F-16 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 10. | LAND USE RIGHT, NET |
In 2020, the Group obtained a land use right in Foshan from the local authorities. Amortization of the land use right is made over the remaining term of the land use right period from the date when the land was made available for use by the Group. The land use right is summarized as follows:
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Land use right | ||||||||
| Less: accumulated amortization | ( |
) | ( |
) | ||||
| Land use right, net | ||||||||
The
Group had recorded amortization expense of RMB
In addition, the Group also pledged its land use right for the Group’s long-term borrowings (See Note 11).
The estimated future amortization expense for land use rights as of June 30, 2026 is as follows:
| RMB | ||||
| Remaining in fiscal year 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| Total | ||||
| 11. | BORROWINGS |
| (1) | Short-term borrowings |
Short-term bank loans consisted of the following:
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Agricultural Bank of China (1) | ||||||||
| Bank of China (2) | ||||||||
| Industrial and Commercial Bank of China (3) | ||||||||
| Total | ||||||||
| (1) | ||
| (2) |
On
January 21, 2026, the Group entered into a loan agreement with Bank of China to borrow RMB
| (3) |
| F-17 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 11. | BORROWINGS (Continued) |
The
Group incurred interest expenses for short-term borrowings of RMB
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Agricultural Bank of China | ||||||||
| Total | ||||||||
| Less: long-term borrowing-current portion | ( |
) | ( |
) | ||||
| Long-term borrowing | ||||||||
On
March 8, 2021, The Group entered into a line of credit agreement with Agricultural Bank of China, which is used for the development of
Viomi Technology Park, a comprehensive high-tech industrial campus, which was completed in the second half of 2023. The line of credit
was effective from March 8, 2021 to March 7, 2026 with a credit limit of RMB
As
of June 30, 2026, the Group borrowed, in aggregate, a total of RMB
The future maturities of long-term borrowings as of June 30, 2026 were as follows:
| RMB | ||||
| Remaining in fiscal year 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Total long-term borrowings | ||||
The
Group’s building properties with net book values of RMB
The
Group completed the construction in the second half of 2023, and prior to the completion, the Group capitalized the interest expense
as cost of the assets, and after the assets was ready for its intended use, the Group expenses off the interest expenses. The Group recorded
interest expenses of RMB
| F-18 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 12. | ACCRUED EXPENSES AND OTHER LIABILITIES |
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Accrued payroll and welfare | ||||||||
| Payment for purchase of property | ||||||||
| Product warranty | ||||||||
| Professional fee payables | ||||||||
| Deposit from suppliers | ||||||||
| Marketing and promotion expenses | ||||||||
| Freight payable | ||||||||
| Other tax payable | ||||||||
| Installation fee payables | ||||||||
| Refund liabilities | ||||||||
| Other current liabilities | ||||||||
| Total | ||||||||
| Less: non-current portion | ( |
) | ( |
) | ||||
| Accrued expenses and other liabilities-current portion | ||||||||
Product warranty activities were as follows:
| Product Warranty | ||||
| RMB | ||||
| Balance at January 1, 2025 | ||||
| Provided during the period | ||||
| Utilized during the period | ( |
) | ||
| Balance at June 30, 2025 | ||||
| Balance at January 1, 2026 | ||||
| Provided during the period | ||||
| Utilized during the period | ( |
) | ||
| Balance at June 30, 2026 | ||||
| 13. | SEGMENT REPORTING |
The
Group derives revenue by developing and selling Home water solution businesses products in the PRC. The Group operates as
The
accounting policies of the segment are the same as those described in Note “2. Summary of Significant Accounting
Policies” in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2025. The Group’s
CODM uses net income or loss to measure segment profit or loss and assesses performance against expectations to make resource
allocation decisions. Additionally, the CODM reviews and uses functional expenses included in net income to manage the Group’s
operations and assess operating profitability. The Group operates as
| F-19 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 14. | REVENUE |
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Sales of products | ||||||||
| - Home water solutions | ||||||||
| - Consumables | ||||||||
| - Kitchen appliances and others | ||||||||
| Total of sales of products | ||||||||
| Rendering of services | ||||||||
| Total | ||||||||
All the revenue is recognized at a point in time when control of the promised goods is transferred to the customers.
| 15. | INCOME TAX EXPENSES |
Cayman Islands
Under the current tax laws of the Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed.
Hong Kong
Under
the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group in Hong Kong are subject to
PRC
In
accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic
companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of
Withholding tax on undistributed dividends
Under
the CIT Law and its implementation rules, the profits of a foreign-invested enterprise arising in 2008 and thereafter that are distributed
to its immediate holding company outside the PRC are subject to withholding tax at a rate of
| F-20 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 15. | INCOME TAX EXPENSES (Continued) |
Composition of income tax expenses (benefits)
The current and deferred components of income taxes appearing in the unaudited condensed consolidated statements of comprehensive income (loss) are as follows:
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Current tax expenses | ||||||||
| Deferred tax benefits | ( |
) | ( |
) | ||||
| Income tax expenses (benefits) | ( |
) | ||||||
Reconciliation between the income tax expenses (benefits) computed by applying the PRC enterprise tax rate to income (loss) before income taxes and actual provision were as follows:
| Six Months ended June 30, | ||||||||||||||||
| 2025 | 2026 | |||||||||||||||
| RMB | % | RMB | % | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Income (loss) from operations in the PRC | ( |
) | ||||||||||||||
| Income (loss) from overseas entities | ( |
) | ||||||||||||||
| Income (loss) before income tax | ( |
) | ||||||||||||||
| % | ( |
) | % | |||||||||||||
| Effect of income tax in jurisdictions other than the PRC | ( |
) | ( |
)% | ( |
)% | ||||||||||
| Nontaxable or nondeductible items | ||||||||||||||||
| Income tax on tax holiday | ( |
) | ( |
)% | ( |
)% | ||||||||||
| Tax effect of permanent differences | ( |
) | ( |
)% | ( |
) | % | |||||||||
| Change in valuation allowance | % | ( |
)% | |||||||||||||
| Effect of share-based compensation | % | ( |
)% | |||||||||||||
| Income tax expenses (benefits) | % | ( |
) | % | ||||||||||||
The per share effect of the tax holidays were as follows:
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Net income (loss) per share effect–basic | ( |
) | ||||||
| Net income (loss) per share effect–diluted | ( |
) | ||||||
Deferred tax assets
The significant components of the Group’s deferred tax assets were as follows:
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Net operating loss carry forwards | ||||||||
| Accrued expenses and others | ||||||||
| Inventories write downs | ||||||||
| Deferred income | ||||||||
| Total deferred tax assets | ||||||||
| Less: valuation allowance | ( |
) | ( |
) | ||||
| Deferred tax assets, net | ||||||||
Movement of valuation allowance:
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Balance at beginning of the period | ||||||||
| Provided | ||||||||
| Balance at end of the period | ||||||||
Uncertain tax positions
The
Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties)
based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2025 and
June 30, 2026, the Group did
According
to the PRC Tax Administration and Collection Law, the statute of limitations is generally
| F-21 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 16. | ORDINARY SHARES |
The
Company adopts a dual-class ordinary share structure. Pursuant to the resolution of the shareholders of the Company on August 23, 2018,
the Company’s authorized share capital became US$
Immediately prior to the completion of the IPO, issued Class A Ordinary Shares held by certain key management founders, issued Pre-IPO Class B Ordinary Shares held by Red Better, and issued Pre-IPO Class B Ordinary Shares held by Mr. Chen’s wholly-owned entity Viomi Limited was automatically converted by way of re-designation and re-classification into Class B Ordinary Shares on a one-for-one basis, and the rest of the outstanding Class A Ordinary Shares, the rest of the outstanding Pre-IPO Class B Ordinary Shares, and all outstanding Series A Preferred Shares was automatically converted by way of re-designation and re-classification into Class A Ordinary Shares on a one-for-one basis. Upon the completion of the Company’s IPO in 2018, Class A Ordinary Shares were issued, and the Company had Post-IPO Class A Ordinary Shares and Post-IPO Class B Ordinary Shares outstanding, respectively.
As of June 30, 2026, the Company had Class A Ordinary Shares and Class B Ordinary Shares outstanding, respectively, following the share option exercises into Class A Ordinary Shares, conversions of Class B Ordinary Shares to Class A Ordinary Shares as well as the repurchase of Class A Ordinary Shares following the IPO during the previous years.
| 17. | SHARE-BASED COMPENSATION |
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Share-based compensation expenses | ||||||||
| —Share options(a) | ||||||||
| (a) |
On September 17, 2015, the Board of Directors of the Company approved the establishment of 2015 Share Incentive Plan, the purpose of which is to provide an incentive for employees contributing to the Group. The 2015 Share Incentive Plan shall be valid and effective for 10 years from the grant date. The maximum number of shares that may be issued pursuant to all awards (including incentive share options) under 2015 Share Incentive Plan shall be shares.
In June 2018, the Board of Directors and shareholders of the Company approved the 2018 Share Incentive Plan. As of Jun 30, 2026, the maximum of shares that may be issued under the 2018 Share Incentive Plan was .
For the six months ended June 30, 2025, the Company granted share options to employees pursuant to the 2018 Share Incentive Plan. Among which, with respect to the share options granted, % of the options will be vested after 24 months of the vesting commencement date and the remaining % will be vested in three equal installments over the following 36 months.
For the six months ended June 30, 2026, the Company granted share options to employees pursuant to the 2018 Share Incentive Plan. Among which, with respect to the share options granted, % of the options will be vested after 24 months of the vesting commencement date and the remaining % will be vested in three equal installments over the following 36 months.
| F-22 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 17. | SHARE-BASED COMPENSATION (Continued) |
| Number of options |
Weighted average exercise price (US$) |
Weighted average remaining contractual life (years) |
Aggregate intrinsic value (US$) |
|||||||||||||
| Outstanding at January 1, 2025 | ||||||||||||||||
| Granted | - | - | ||||||||||||||
| Forfeited | ( |
) | - | - | ||||||||||||
| Exercised | ( |
) | - | - | ||||||||||||
| Outstanding at June 30, 2025 | ||||||||||||||||
| Outstanding at January 1, 2026 | ||||||||||||||||
| Granted | - | - | ||||||||||||||
| Forfeited | ( |
) | - | - | ||||||||||||
| Exercised | ( |
) | - | - | ||||||||||||
| Outstanding at June 30, 2026 | ||||||||||||||||
| Exercisable as of June 30, 2026 | ||||||||||||||||
| Expected to vest as of June 30, 2026 | ||||||||||||||||
The weighted average grant date fair value of options granted for the six months ended June 30, 2025 and 2026 was RMB (US$) per option and RMB (US$) per option, respectively.
As of December 31, 2025 and June 30, 2026, there was RMB and RMB RMB (US$) of unrecognized compensation expenses related to the options, respectively.
| (b) | Restricted shares to an investee |
The
Group established Guangdong Lizi in July 2018 as a subsidiary of the Company. In November 2020, following the Group’s restructuring
plan on its water purifiers business, the Group entered into an agreement with Sunglow to sell
Under
the requirement of ASC 718, the Group should recognize share-based compensation if there is a difference between the fair value of Guangdong
Lizi’s
During 2025, Sunglow exited the arrangement. Accordingly, there were no more unrecognized compensation expenses associated with restricted shares granted to Sunglow to be recognized in future periods.
| F-23 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 18. | NET INCOME (LOSS) PER SHARE |
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Numerator: | ||||||||
| Numerator for basic calculation-Net income (loss) attributable to ordinary shareholders | ( |
) | ||||||
| Denominator: | ||||||||
| Denominator for basic calculation-weighted average ordinary shares outstanding | ||||||||
| Dilutive effect of share options | ||||||||
| Denominator for diluted calculation | ||||||||
| Basic net income (loss) per ordinary share | ( |
) | ||||||
| Diluted net income (loss) per ordinary share | ( |
) | ||||||
| 19. | RELATED PARTY TRANSACTIONS |
| Name | Relationship with the Group |
| Foshan Viomi and its subsidiaries (“Foshan Viomi”) | |
| Xiaomi |
The Group’s relationship and transaction with Xiaomi
Xiaomi is the Group’s strategic partner and shareholder.
The Group’s sales to Xiaomi are governed by a business cooperation agreement, pursuant to which Xiaomi is responsible for the distribution and sales of such products through their network and sales channels.
The Group also sells products through Xiaomi’s online e-commerce channel Xiaomiyoupin.com, and is charged of commissions pursuant to a commission sales agreement.
| F-24 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 19. | RELATED PARTY TRANSACTIONS (Continued) |
Transactions with Foshan Viomi
The Group sells water purifiers and other products to and purchases raw materials from Foshan Viomi. In addition, The Group leases its office premises to Foshan Viomi, and the Group also engages Foshan Viomi for other services such as transportation services, maintenance services as well as installation services etc.
| (1) | Amount due from/to related parties |
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Accounts receivable from related parties: | ||||||||
| Xiaomi(a) | ||||||||
| Foshan Viomi(c) | ||||||||
| Total | ||||||||
| Other receivables from related parties: | ||||||||
| Other receivables from Xiaomi | ||||||||
| Total | ||||||||
| Amounts due to related parties: | ||||||||
| Purchase and other payable to Xiaomi(a) | ||||||||
| (2) | Purchase from related parties |
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Foshan Viomi(c) | ||||||||
| Total | ||||||||
| F-25 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 19. | RELATED PARTY TRANSACTIONS (Continued) |
| (3) | Revenue from related parties |
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Xiaomi(a) | ||||||||
| Foshan Viomi(c) | ||||||||
| Total | ||||||||
| (4) | Selling and marketing expenses |
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Commission expenses charged by Xiaomi(b) | ||||||||
| Other expenses charged by Foshan Viomi(d) | ||||||||
| Total | ||||||||
| (a) | ||
| (b) | ||
| Certain amounts in prior periods have been reclassified to conform with current period presentation. These reclassifications had no impact on the Group’s consolidated financial statements. | ||
| (c) | ||
| (d) |
| 20. | FAIR VALUE MEASUREMENTS |
The Group did not have any other financial instruments that were required to be measured at fair value on a recurring basis as of December 31, 2025 and June 30, 2026 except for short-term investments (Note 6).
The following table summarizes the Group’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2025 and June 30, 2026:
| Level 1 | Level 2 (i) | Level 3 | Total | |||||||||||||
| As of June 30, 2026 | ||||||||||||||||
| Short-term investments | ||||||||||||||||
| As of December 31, 2025 | ||||||||||||||||
| Short-term investments | ||||||||||||||||
| (i) |
Apart from the short-term investments, the Group’s other financial instruments consist principally of cash and cash equivalents, restricted cash, short-term and long-term deposits, accounts and notes receivable, other receivables, amounts due to/from related parties, accounts and notes payable and certain accrued expenses. They are recorded at cost which approximates fair value.
| F-26 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 21. | LEASES |
The
Group’s operating leases are principally for office space and facilities. As of December 31, 2025 and June 30, 2026, The
Group’s operating leases had a weighted average discount rate of
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Lease cost | ||||||||
| Operating lease expense | ||||||||
| Short-term lease expense (i) | ||||||||
| Total lease cost | ||||||||
| (i) |
Supplemental cash flow information for leases was as follows:
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Operating cash flows relating to operating leases | ||||||||
As of June 30, 2026, the aggregate future minimum rental payments under non-cancelable agreement were as follows:
| Years ending December 31, | RMB | |||
| Remaining in fiscal year 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| Total future minimum rental payment | ||||
| Less amount representing imputed interest | ( |
) | ||
| Present value of future minimum rental payments | ||||
| Less current portion, recorded in other current liabilities | ||||
| Long-term lease liabilities, recorded in other long-term liabilities | ||||
| 22. | COMMITMENTS AND CONTINGENCIES |
| (a) | Operating lease commitments |
The
operating commitments mainly consist of the short-term lease commitments and leases that have not yet commenced but that create significant
rights and obligations for the Company, which are not included in operating lease right-of–use assets and lease liabilities. As
of June 30, 2026, there were
| (b) | Capital and other commitment |
Capital expenditures contracted for at the balance sheet dates but not recognized in the unaudited condensed consolidated financial statements are as follows:
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| Property, plant, and equipment | ||||||||
| (c) | Legal proceedings |
From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows.
However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the Group’s financial position and results of operations for the periods in which the unfavorable outcome occurs.
| F-27 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 23. | RESTRICTED NET ASSETS |
Relevant
PRC laws and regulations permit payments of dividends by the Group’s entities incorporated in the PRC only out of their retained
earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s entities
in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment
of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions
under PRC laws and regulations, the Company’s entities incorporated in the PRC are restricted in their ability to transfer a portion
of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion amounted to RMB
For the six months ended June 30, 2026, the Company performed a test on the restricted net assets of subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets exceed 25% of the consolidated net assets of the Company as of June 30, 2026 and the condensed financial information of the Company are required to be presented.
Cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily restrict the ability of the PRC subsidiaries and VIEs and their subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligation.
| 24. | SUBSEQUENT EVENT |
The Group has evaluated the impact of events that have occurred subsequent to June 30, 2026, through September 30, 2026, the issuance date of the unaudited condensed consolidated financial statements, and concluded that no subsequent events have occurred that would require recognition in the unaudited condensed consolidated financial statements or disclosure in the notes to the unaudited condensed consolidated financial statements.
| F-28 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 25. | UNAUDITED CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
Pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, the condensed financial information of the parent company shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Group performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiaries exceeded 25% of the consolidated net assets of the Company. Therefore, the condensed financial statements for the parent company are included herein.
For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party.
The unaudited condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s unaudited condensed consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries/VIEs” and the respective profit or loss as “Equity in (loss) gain of subsidiaries/VIEs” on the condensed statements of operations.
The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the unaudited condensed consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted.
The Company did not pay any dividend for the periods presented. As of December 31, 2025 and June 30, 2026, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the unaudited condensed consolidated financial statements, if any.
UNAUDITED CONDENSED PARENT COMPANY BALANCE SHEETS
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | ||||||||
| Short-term investments | ||||||||
| Amounts due from Group companies | ||||||||
| Investments in subsidiaries | ||||||||
| Other assets | ||||||||
| Total assets | ||||||||
| Liabilities | ||||||||
| Accounts and notes payable | ||||||||
| Accrued expenses and other liabilities | ||||||||
| Amounts due to Group companies | ||||||||
| Total Liabilities | ||||||||
| Shareholders’ equity | ||||||||
| Class A Ordinary Shares (US$ par value; shares authorized; and shares issued and outstanding as of December 31, 2025 and June 30, 2026, respectively) | ||||||||
| Class B Ordinary Shares (US$ par value; shares authorized; and shares issued and outstanding as of December 31, 2025 and June 30, 2026, respectively) | ||||||||
| Treasury stock | ( |
) | ( |
) | ||||
| Additional paid-in capital | ||||||||
| Retained earnings | ||||||||
| Total equity attributable to shareholders of the Company | ||||||||
| Total liabilities and shareholders’ equity | ||||||||
| F-29 |
VIOMI TECHNOLOGY CO., LTD
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts in thousands, except shares, ADS, per share and per ADS data)
| 25. | CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Continued) |
UNAUDITED CONDENSED PARENT COMPANY STATEMENTS OF OPERATIONS
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Operating expenses | ||||||||
| General and administrative expenses | ( |
) | ( |
) | ||||
| Total operating expenses | ( |
) | ( |
) | ||||
| Other (expenses) income, net | ( |
) | ||||||
| Equity in gain (loss) of subsidiaries/VIEs | ( |
) | ||||||
| Total operating income (expenses) | ( |
) | ||||||
| Interest and investment income, net | ||||||||
| Income (loss) before income tax expenses | ( |
) | ||||||
| Income tax expenses | ( |
) | ||||||
| Net income (loss) attributable to ordinary shareholders of the Company | ( |
) | ||||||
UNAUDITED CONDENSED PARENT COMPANY STATEMENTS OF CASH FLOWS
| Six Months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| RMB | RMB | |||||||
| (unaudited) | (unaudited) | |||||||
| Net cash provided by operating activities | ||||||||
| Net cash used in by investing activities | ( |
) | ( |
) | ||||
| Net cash used in financing activities | ( |
) | ( |
) | ||||
| Effect of exchanges rates on cash and cash equivalents | ( |
) | ||||||
| Net increase (decrease) in cash and cash equivalents | ( |
) | ||||||
| Cash and cash equivalents at the beginning of the period | ||||||||
| Cash and cash equivalents at the end of the period | ||||||||
| F-30 |