Viomi Technology Announces Strategic Business Reorganization to Enhance Core Competitiveness and Efficiency
25 Julho 2024 - 4:00PM
On July 19, 2024, Viomi Technology Co., Ltd (NASDAQ: VIOT)
announced that in order to implement its “Focus” strategy, the
Company has signed a business restructuring agreement with Mr.
Xiaoping Chen, the founder and CEO, and an entity controlled by Mr.
Xiaoping Chen, to divest part of the Company's IoT@Home business
and related assets for a total cash consideration of RMB65 million.
Upon completion of the reorganization, the Company
will mainly focus on its home water solution
business.
Viomi Water Purifier Gigafactory
About the impact of the restructuring, according
to the company, this major restructuring is the company's
overall strategic plan to optimize operating structure,
improve overall efficiency, focus on
its core business of home water solutions, and
maximize the major advantages. The company will
strategically focus on the household water solution business and
related products, utilizing AI technology to provide better
drinking water solutions for household users. With the divestment
of some loss-making businesses, the company's overall operation
will also enter a benign status.
For the purpose of this business reorganization and the
reason of focusing on the home water solution
business and the related topics, the reporter contacted
Chen Xiaoping, founder and CEO of Viomi. Mr. Chen
introduced, “the business reorganization is to further
implement the company's “Focus” strategy, through the divestment of
loss-making business, to improve operational efficiency. Focus
resources on the core business, further expand the core advantages
and achieve higher profitability.”
Viomi’s story began with a water purifier
that redefined the industry, and Viomi has been
deeply cultivated in the water purification industry for 10 years.
For focusing on the water purification industry, Chen
Xiaoping proudly introduced the following 4 major advantages
of the Viomi home water solutions:
1. Continuous R&D in filtration technology,
systems and products that lead the industry. Viomi has several
revolutionary technology innovations like fresh large
flux direct drinking water technology, three-dimensional integrated
water circuit, ERO electrodialysis water quality adjustment
technology, 10-year long-lasting filter cartridge, among
others, which continuously improve the quality of life of
consumers.
2. Advanced AI technology and application innovation. The
application of AI technology in water purifier realizes real-time
water quality display, remote monitor water usage via
APP, proactive reminder and one-click filter replacement
experience, intelligent waterway self-cleaning technology,
which significantly extends filter lifespan, upgrading the
user experience from all aspects.
3. The consolidated and highly
integrated Water Purifier Gigafactory, which
will have the annual production capacity of 5 million units
whole machine and 30 million filter cartridges, with
the integrated
and comprehensive industrial chain, highly automated
production lines, high-standard hygienic production
and the end-to-end traceable quality control system.
4. Global talents in water purification,
strong channel expansion and service
capabilities. Viomi has recruited top talents in the
industry and has omni-channel marketing and service capabilities in
China, and is actively expanding in the U.S. and overseas
markets.
When talking about the future development
of Viomi water purification, Mr. Chen
confidently said, “once the reorganization is
completed, we will promptly focus on advantageous
resources, maximizing the leading strength
of our water purifier gigafactory, building the
world's leading industrial chain system, achieving optimal
scale efficiency, and enhancing the impact
of our brand.”
Industry experts commented that Viomi's reorganization
is significant, on the one hand, divesting loss-making businesses
to bring the company's operation into a benign state; on the other
hand, focusing on the home water solution business to enhance its
core competitiveness, so as to become a tech company that utilizes
AI technology to provide better drinking water solutions for global
home users.
The business restructuring is expected to be close by
the end of August 2024.
About Viomi
Viomi was founded in 2014, with a brand positioning
of Tech Fashion, ranked 439 on the “2024 China’s Top
500 Brand” with a brand value of around $2.2 billion.
Xuebo Li
Viomi Technology Co., Ltd
marketing at viomi.com
Viomi Technology (NASDAQ:VIOT)
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