Viomi Technology Co., Ltd Annual Report - How They Did This Year

I’m putting together a plain-English guide to help you understand how Viomi Technology performed this year. My goal is to break down their complex financial filings so you can decide if this company fits your investment goals.

1. What does this company do?

Viomi designs smart-home appliances, such as water purifiers and kitchen gadgets. They use a "Variable Interest Entity" (VIE) structure. This means you don't actually own the Chinese factories. Instead, you own shares in a Cayman Islands holding company that has a contract to control the Chinese business. This is common for Chinese firms, but it adds legal complexity. The company makes most of its money selling internet-connected home products.

2. The Big "Focus" Pivot

Viomi is undergoing major changes. In late 2025, they finished a massive reorganization, selling off most of their business to focus almost entirely on home water solutions.

Why does this matter? They are moving from a "do everything" company to a specialist. Because of this, their financial reports look very different. The portion of revenue from their main operating entities dropped from 88.9% in 2023 to just 0.1% in 2025. The company you see today is a much smaller, leaner version of last year’s business. They are intentionally cutting non-core products to simplify their supply chain.

3. Financial Health and Strategy

Viomi is in "survival and stabilization" mode. They are hitting the reset button to stop losses from side projects. They aren't in a growth phase; they are prioritizing cash to keep the lights on during this transition. The company is carefully managing its cash to cover expenses and debts, as selling off assets has fundamentally changed how they make money and what their balance sheet looks like.

4. Major Wins and Challenges

• The Xiaomi Connection: Viomi’s business is deeply tied to Xiaomi, a tech giant that is both a partner and a primary customer. This is a double-edged sword. It provides steady business, but if Xiaomi changes its strategy, Viomi’s revenue would take a massive hit.
• Operational Cleanup: Management is simplifying the company by offloading side projects. This is generally positive, as it shows they are focusing on their strengths. This cleanup aims to lower costs and help management focus on the high-profit water purification segment.

5. Key Risks

• Structural Risk: Because you don't own the underlying Chinese assets, you rely on the enforceability of contracts that have never been fully tested in court. If the Chinese government decides this structure violates local rules, your control could be invalidated.
• Regulatory Risk: The Chinese government has significant oversight. If regulations change, or if the company is delisted from U.S. exchanges due to auditing rules, your investment could be severely impacted.
• Concentration: They have "all their eggs in one basket" with Xiaomi and a very narrow product focus. Any disruption in Xiaomi’s policies or a drop in demand for water appliances could hurt the company’s survival.

6. The Bottom Line

Viomi is a "wait-and-see" company. They are a smaller, more focused version of their former selves. The big question is whether this leaner strategy will lead to profit, or if they are just shrinking to survive.

Investor Checklist:

• Monitor Revenue Stability: Watch to see if their water solutions can generate enough sales to replace the revenue they lost from the businesses they sold.
• Track Xiaomi Relations: Keep an eye on any news regarding their partnership with Xiaomi, as it remains the primary driver of their business.
• Assess Cash Flow: Look for signs that the "stabilization" phase is yielding positive cash flow in the next quarterly report.