Viomi Technology Announces Strategic Business Reorganization to Enhance Core Competitiveness and Efficiency
Foshan, China, July 25, 2024 (GLOBE NEWSWIRE) -- 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
