Xiaomi-Backed IoT Appliance Supplier Viomi Technology Files for U.S. IPO

Viomi Technology Co. Ltd, a Xiaomi-backed supplier of Internet-connected home appliances, filed for a U.S. initial public offering with the US Securities and Exchange Commission (SEC) on Aug. 30.

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Founded in 2014, Viomi Technology is dedicated to manufacturing IoT household appliances such as dishwashers, air purifiers, and water boilers and so on. The company plans to list on Nasdaq under the ticker “VIOT”, and to raise up to $150 million. The underwriters are Morgan Stanley and China International Capital Corporation (CICC).

According to the prospectus, the net revenue of Viomi Technology in 2017 was 873.2 million yuan ($132 million), an increase of 179.4% from the net revenue of 312.6 million yuan in 2016. The company’s net revenue during the first half of 2018 reached 1040.2 million yuan, a 284.4% increase compared to the 270.6 million yuan in the same period of 2017.

The net profit of Viomi in 2017 was 93.2 million yuan, an impressive growth of 473.9% from 2016. During the first half of this year, the company again upped its net profit from 18.9 to 73.03 million yuan, marking yet another impressive growth of 271.5%.

As part of Xiaomi‘s ecological chain, Viomi generated a revenue of 1.69 billion yuan from selling products to Xiaomi during the period between December 2016 and June 2018. As of June 30 this year, 62.6% of Viomi’s revenue came from Xiaomi.

It was also stated in the prospectus that the number of Viomi’s household users have multiplied tenfold from approximately 113,000 as of March 31, 2016 to over 1.2 million as of June 30, 2018.