Viomi Opens 300 New Stores, Reports Solid Results for Q2

The stock of Viomi Technology Co. Ltd. (Nasdaq: VIOT) ended the day at $9.23 per American depositary share.

Author: Binwei Wang   

The stock of Viomi Technology Co. Ltd. (Nasdaq: VIOT) ended the day at $9.23 per American depositary share, level with yesterday's close, after the company reported its financial results for the second quarter.

The Guangzhou-based company, which makes IoT at-home technology products, said in a statement today that its revenue in the three months through June grew 64 percent year-over-year to $169 million. The number of household users of Viomi smart products reached 2.3 million, according to the report.

Net income, Viomi said, was $13 million, or 19 cents per ADS, more than double from a year ago.

"Following the solid growth momentum in the first quarter, and despite increasing macro uncertainties, we again delivered strong and healthy revenue and profitability growth in the second quarter of 2019," the founder, chairman, and chief executive officer of Viomi, Xiaoping Chen, said in the statement.

The company also said it has opened 300 additional stores during the first quarter, reaching 1,900 locations by June 30.

Looking ahead, Chen stated: "We will continue our emphasis on product innovation and development, and have numerous new and exciting products in the pipeline for the second half of 2019. Our 21Face series of smart large-screen refrigerators remains a key strategic focus and growth driver, with user experience and functionalities being constantly upgraded and enhanced, in addition to complementary SKUs being introduced to the market. Further, we have stepped up our investment and preparation in anticipation of the upcoming 5G era, which we expect to trigger another growth cycle for the home appliances industry in China."

In the second quarter, Viomi said it expects to generate revenue in the range of 880 million yuan to 920 million yuan, representing a year-over-year increase of between 56 and 63 percent.