Viomi Technology Co., Ltd

In the second half of 2025, net revenue was RMB 950.6 million, down 25.9% from RMB 1,282.4 million in the same period of 2024. Gross profit was RMB 223.8 million versus RMB 289.5 million a year ago, and gross margin was 23.5% versus 22.6%. Net income was RMB 21.2 million and non-GAAP net income was RMB 28.2 million. For the full year 2025, net revenue was RMB 2,428.2 million, up 14.6% from RMB 2,119 million in 2024. Full-year gross profit was RMB 615 million and gross margin was 25.3% versus 25.9% in 2024; net income attributable to ordinary shareholders was RMB 141.6 million and non-GAAP net income attributable to ordinary shareholders was RMB 155.7 million. Management said domestic market demand will face challenges in the first half of 2026 because of the subsidy base effect, but expects water purifier demand to normalize in 2026 and said overseas revenue should grow at a triple-digit rate in 2026.

The CEO framed 2025 as a year of strategic building blocks: expanding the global water strategy, building local teams in North America, Southeast Asia, and Europe, and pushing AI and product innovation. He highlighted progress in the U.S. and Malaysia, the overseas premium production line at the gigafactory, and more than 1,950 patent applications across 14 countries and regions. His tone was confident but realistic, emphasizing that overseas expansion, own-brand growth, consumables, and broader product categories are the main levers for improving profitability over time.

The CFO focused on the financial hit from weaker domestic water system sales and higher brand-building spend. Second-half revenue declined to RMB 950.6 million, while gross profit fell to RMB 223.8 million; gross margin improved to 23.5% because of the removal of one-off divestiture costs. Operating expenses rose 12% to RMB 248 million, including R&D of RMB 76.3 million, selling and marketing of RMB 148.6 million, and G&A of RMB 23.1 million. The balance sheet remained healthy with cash and cash equivalents of RMB 806.6 million, restricted cash of RMB 164.4 million, short-term deposits of RMB 258 million, and short-term investments of RMB 82.6 million.

Analysts focused on overseas brand development, the impact of China’s subsidy phase-down, and the path to better profitability. Management said the U.S. strategy will involve differentiated brands and a push into offline channels, while Malaysia remains more offline-focused with localized countertop products. On margins, management said profitability should improve as overseas branded sales scale, consumables from installed purifiers start contributing 1 to 2 years after equipment sales, and higher-margin products such as whole-home nutrition systems and multifunction countertop units gain share. Management also said the China Gas and ENN partnerships are in a pilot year for 2026 and could open efficient access to lower-tier markets.