GUANGZHOU,
China, July 19, 2024 /PRNewswire/ -- Viomi
Technology Co., Ltd ("Viomi" or the "Company") (NASDAQ: VIOT) today
announced that, to implement its "Focus" strategy for home water
solution businesses, it has entered into definitive agreements with
Mr. Xiaoping Chen, the Company's
Founder, Chairman of the Board of Directors, and CEO, and an
entity controlled by Mr. Chen, to divest the Company's
businesses and assets involving certain
IoT@Home portfolio products for a total
consideration of RMB65 million in
cash.
The sale of the IoT@Home portfolio products
(excluding range hoods, gas stoves, and water heaters) (the
"Divested Business") to Mr. Chen will be effected through
termination, at closing, of the existing variable interest
entity ("VIE") contractual arrangements between
Yunmi Hulian Technology (Guangdong) Co., Ltd. and Foshan
Yunmi Electric Appliances Technology Co., Ltd. ("Foshan Viomi"),
which will result in Foshan Viomi's shareholder, Mr. Chen,
fully controlling Foshan Viomi and its subsidiaries,
including Foshan Xiaoxian Hulian Electric Appliances Technology Co.
Ltd., Foshan Qutansuo Electric Technology Co., Ltd., Guangdong AI
Touch Technology Co., Ltd., and Zhuawa Technology (Guangdong) Co., Ltd. As part of a
pre-closing reorganization, Zhumeng Hulian Technology
(Guangdong) Co., Ltd. and
Guangzhou Interconnect Technology Co., Ltd. ("Guangzhou
Interconnect") will enter into a new set of VIE
contractual arrangements, as a result of which
the Company will control Guangzhou Interconnect and
consolidate its financial results.
Mr. Chen will pay the RMB65 million purchase price through Foshan Viomi
in the form of a registered capital increase to Guangzhou
Interconnect at closing.
The special committee of the board of directors
of the Company ("the Board"), consisting of Ms. Jinling Zhang, Mr. Weijiang Wu, and Mr. Jun
Li, each of whom is an independent and disinterested
director of the Board, led the evaluation and negotiation of the
transaction on behalf of the Company. Kroll LLC served as an
independent financial advisor to the special committee and issued a
fairness opinion. The Board, acting upon the unanimous
recommendation of the special committee, resolved that the proposed
transaction is in the Company's best interest and is fair to the
Company from a financial point of view and approved the
transaction. The transaction is subject to certain closing
conditions and is expected to close by the end of August 2024.
Once the transaction is completed, the Company
will strategically focus on its home water solution business and
related products, using AI technology to provide better drinking
water solutions for household users.
About Viomi Technology
Viomi's mission is to redefine the future home
via the concept of IoT @ Home.
Viomi has developed a unique IoT @ Home platform
consisting of an ecosystem of innovative IoT-enabled smart home
products, together with a suite of complementary consumable
products and value-added businesses. This platform provides an
attractive entry point into the consumer home, enabling consumers
to intelligently interact with a broad portfolio of IoT products in
an intuitive and human-like manner to make daily life more
convenient, efficient and enjoyable, while allowing Viomi to grow
its household user base and capture various additional
scenario-driven consumption events in the home environment.
For more information, please visit: http://ir.viomi.com.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and
similar statements. Among other things, the business outlook and
quotations from management in this announcement, as well as Viomi's
strategic and operational plans, contain forward-looking
statements. Viomi may also make written or oral forward-looking
statements in its periodic reports to the United States Securities
and Exchange Commission (the "SEC"), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
Fourth parties. Statements that are not historical facts, including
statements about the Company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the Company's growth strategies; the cooperation with
Xiaomi, the recognition of the Company's brand; trends and
competition in global IoT-enabled smart home market; development
and commercialization of new products, services and technologies;
governmental policies and relevant regulatory environment relating
to the Company's industry and/or aspects of the business operations
and general economic conditions in China and around the globe, and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in the Company's
filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press
release, and the Company undertakes no obligation to update any
forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please
contact:
In China:
Viomi Technology Co., Ltd
Claire Ji
E-mail: ir@viomi.com.cn
Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: viomi@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: viomi@tpg-ir.com
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SOURCE Viomi Technology Co., Ltd
