Viomi Technology's Q4 2024: Strategic Shifts and Market Contradictions Unveiled

These are the key contradictions discussed in Viomi Technology's latest 2024 Q4 earnings call, specifically including: Strategic Reorganization and Business Focus, Expansion Strategy in International Markets, and Overseas Sales Strategy and Market Conditions:



Strategic Shift and Revenue Growth:
- Viomi Technology reported full-year net revenues reaching RMB2.1 billion, exceeding the previous guidance, with income from operations totaling RMB156.3 million.
- The strategic reorganization and focus on home water solutions, particularly the significant 39% year-over-year growth in revenue from this segment, fueled the overall business expansion.

Operational Efficiency and Profitability:
- Viomi achieved a net income of RMB62.3 million, reversing losses reported in the past two years, contributing to a 6% decline in the overall operating expense ratio.
- Improved operational efficiency was driven by the comprehensive manufacturing, R&D, and distribution systems established for the water purification business, enhancing competitiveness in the sector.

Product Innovation and Market Penetration:
- The introduction of the Kunlun series water purifies, positioned in the mid- to high-end market, contributed to a noticeable increase in demand for the Viomi brand.
- Deepening market penetration in China, North America, and Southeast Asia through strategic partnerships and customized product development further strengthened Viomi's brand influence globally.

Kitchen Appliances and Others Revenue:
- Revenues from kitchen appliances and others reached RMB342.9 million, marking a 45.2% increase from RMB236.1 million in 2023.
- Growth was primarily attributed to increased sales of kitchen appliances, especially those sold to Xiaomi.