Artificial Intelligence
Viomi Technology Co., Ltd Reports First Quarter 2022 Unaudited Financial Results
Viomi Technology Co., Ltd (“Viomi” or the “Company”) (NASDAQ: VIOT), a leading IoT @ Home technology company in China, today announced its unaudited financial results for the first quarter ended March 31, 2022.
First Quarter 2022 Financial and Operating Highlights
- Net revenues reached RMB712.1 million (US$112.3 million), compared to RMB1,255.6 million for the first quarter of 2021.
- Gross margin increased to 26.3% from 21.1% for the first quarter of 2021.
- Number of cumulative household users reached approximately 6.9 million, compared to approximately 6.6 million as of the end of 2021 and approximately 5.6 million as of the end of the first quarter of 2021.
- Percentage of household users with at least two connected products reached 21.8%, compared to 21.5% as of the end of 2021 and 20.4% as of the end of the first quarter of 2021.
Mr. Xiaoping Chen, Founder and CEO of Viomi, commented, “heading into 2022, we have been under pressure from overall weak consumer spending, challenging macroeconomic conditions and the rising price of raw materials due to widespread COVID-19 recurrences, leading to a year-over-year decrease in total net revenues for the first quarter, which is in line with our previous guidance. To strengthen our long-term product competitiveness and brand awareness, we continued to invest in R&D and increase marketing and advertising spending. As a result, our R&D-related personnel and experts at the beginning of this year grew by nearly 47% compared to the beginning of 2021, primarily due to the expansion of our AI and algorithms talent pool. As of March 31, 2022, we had 5,232 cumulative patent applications and 3,142 registered patents globally. Furthermore, to support the release of our new products in the first quarter, we launched a large number of elevator and print ads promoting our ‘trending technology’ branding positioning. Our investment for long-term growth caused a temporary loss in the first quarter, but contributed to a higher sales contribution from our premium products due to the increased investment in R&D. In addition, we further improved our operating quality through product portfolio adjustment and strict manufacturing cost control. Our gross margin for the first quarter increased to 26.3%, again representing a year-over-year and quarter-over-quarter improvement and demonstrating our enhanced product and brand strength.”
“At our strategic new product launch event in March, we introduced our upgraded one-stop IoT home solution, ‘1=N44,’ which includes (i) our whole-home product portfolio; (ii) four major smart home capabilities: automatic networking, active intelligence, spatial awareness and natural interactions; and (iii) four additional services for our users, namely smart home solution design, OTA upgrades, a membership system and value-added services. Our upgraded one-stop IoT home solution has already achieved solid initial results, thanks to our focus on product innovation, service system improvements, and our expanded sales channels for whole-home intelligence.”
“First, with respect to our products, we have enhanced their active intelligence through innovative AI applications. We introduced a series of new high-end AI products at our launch event in March, many of which have received favorable market feedback and reviews, including the Royal series of AI dishwashers and our AI screen-based control interface, HomePad Plus. More of our new products will be on the market soon, such as our all-space AI air conditioner Space Pro, the 2000G large-flux water purifier Super 2, an AI laser interactive smart screen, and our Royal Pro series of double-screen refrigerators and AI twin-tub washing machines.”
Mr. Chen added, “our ongoing product innovation would not be possible without our growing and talented R&D team. Our R&D achievements have also been recognized by industry and professional institutions. In April, our AI range hoods’ visual detection module technology won the Excellence Award at the 23rd China Patent Awards. Also, in the same month, we took the silver at the 8th Guangdong Patent Awards with one of our water purifiers and its integrated waterway module technology. Further, the Viomi brand was added to the key trademark protection list in Guangdong province. Our hardware R&D, IoT, AI and algorithms team is also expanding with an increasing number of PhD talents. We were officially listed as Guangdong PhD Work Station by the government and have obtained the selection qualification to establish the Guangdong Postdoctoral Work Station.As a result, we believe going forward we will have greater opportunities to cultivate top talents for our society, incubate smart home programs and promote the overall development of the smart home industry in cooperation with universities and professional institutions.”
“Second, based on our one-stop IoT home solution, we are accelerating the implementation of our newly-introduced, premium bundled smart home solution offerings. Our offline merchants recently signed whole-home solution orders ranging from RMB200,000 to RMB400,000 with customers in Beijing, Guangzhou, Changsha, Hebei and Kunming, successfully shifting our business from ‘selling products’ to ‘selling solutions.’ In addition, we deepened our cooperation with JD Logistics to access a broader range of services including planning, logistics, warehousing and installation. This enables us to improve efficiency throughout our cycle, from solution design and delivery to installation, as well as provide our customers with more enjoyable after-sale service experience.”
“Third, to align with the overall development of the smart home industry, we expanded our strategic partnerships with sales channels. Last week, we reached a strategic cooperation with Tmall concerning a portfolio of one-stop smart home solutions. Together, we will promote a whole-home smart ecology, with an AI smart kitchen, living room, balcony, restroom and bedroom. Furthermore, in April, we cooperated with JD.com to host ‘Viomi 420 JD Day’ and introduced new whole-home smart products on its platform. Finally, after forming a strategic partnership with China Unicom last year, we were recently listed as one of China Telecom’s top digital ecology partners, promoting channel integration and bringing an intelligent lifestyle to tens of millions of households in China. As one of the first movers in one-stop smart home solutions, we expect to continue to promote partnerships with additional channels and companies to jointly develop the smart home ecology for families.”
“In the second half of this year, we will continue to (i) focus on product innovation and develop key AI SKUs; (ii) increase our advertising and marketing investment to strengthen our ‘trending technology’ branding positioning; (iii) streamline our product lines and optimize our product portfolio; and (iv) enhance our sales channels and execute our ‘larger store, better merchant’ offline strategy. Together with stricter and more disciplined cost and expense control measures, we remain committed to healthy growth in the mid- to long-term and creating value for our customers and shareholders in the long run,” concluded Mr. Chen.
First Quarter 2022 Financial Results
REVENUE
Net revenues were RMB712.1 million (US$112.3 million), compared to RMB1,255.6 million for the first quarter of 2021. Net revenues were in line with the Company’s previous guidance. In addition to the overall weaker consumption environment, the decrease was mainly due to (i) the complete cutoff of sales of Xiaomi-branded sweeper robots this year, as well as its high prior-year base for comparison, and (ii) continued product portfolio adjustments for margin expansion in other categories.
– IoT @ Home portfolio. Revenues from IoT @ Home portfolio decreased by 60.8% to RMB360.2 million (US$56.8 million) from RMB919.2 million for the first quarter of 2021. The decline was primarily due to the complete cutoff of sales of Xiaomi-branded sweeper robots and the continued product portfolio adjustments for margin expansion in other categories, both of which also contributed to the overall gross margin improvement for IoT @ Home portfolio.
– Home water solutions. Revenues from home water solutions decreased slightly by 2.6% to RMB101.0 million (US$15.9 million) from RMB103.8 million for the first quarter of 2021. The decline was primarily due to the continued product portfolio adjustment involving a decrease in small-flux water purifiers, which was partially mitigated by the increased sales contribution of large-flux water purifiers. As a result of the product portfolio adjustment, the Company once again achieved year-over-year gross margin improvement in this category.
– Consumables. Revenues from consumables increased by 10.8% to RMB71.8 million (US$11.3 million) from RMB64.8 million for the first quarter of 2021, primarily due to increased demand for purifier filter products.
– Small appliances and others. Revenues from small appliances and others increased by 6.7% to RMB179.1 million (US$28.3 million) from RMB167.8 million for the first quarter of 2021.
GROSS PROFIT
Gross profit was RMB187.0 million (US$29.5 million), compared to RMB265.0 million for the first quarter of 2021. Gross margin increased to 26.3% from 21.1% for the first quarter of 2021, primarily driven by the Company’s continued efforts to shift the business and product mix toward higher gross margin products.
OPERATING EXPENSES
Total operating expenses increased by 15.9% to RMB254.8 million (US$40.2 million) from RMB219.8 million for the first quarter of 2021, primarily due to the increase in research and development expenses and selling and marketing expenses.
Research and development expenses increased by 20.5% to RMB79.1 million (US$12.5 million) from RMB65.6 million for the first quarter of 2021, mainly due to the increase in research and development headcount and related salaries and expenses.
Selling and marketing expenses increased by 15.0% to RMB158.8 million (US$25.0 million) from RMB138.0 million for the first quarter of 2021, mainly due to the increase in advertising and marketing expenses to promote the Company’s brand awareness.
General and administrative expenses increased by 4.7% to RMB17.0 million (US$2.7 million), compared to RMB16.2 million for the first quarter of 2021, primarily due to the increase in consulting and professional service fee.
LOSS FROM OPERATIONS
Loss from operations was RMB65.3 million (US$10.3 million), compared to income from operations of RMB47.1 million for the first quarter of 2021.
Non-GAAP operating loss,[1] which excludes the impact of share-based compensation expenses, was RMB57.0 million (US$9.0 million), compared to non-GAAP income from operations of RMB63.2 million for the first quarter of 2021.
NET LOSS
Net loss attributable to ordinary shareholders of the Company was RMB50.0 million (US$7.9 million), compared to net income attributable to ordinary shareholders of the Company of RMB49.1 million for the first quarter of 2021.
Non-GAAP net loss attributable to ordinary shareholders of the Company[2] was RMB41.7 million (US$6.6 million), compared to non-GAAP net income attributable to ordinary shareholders of the Company of RMB65.3 million for the first quarter of 2021.
BALANCE SHEET
As of March 31, 2022, the Company had cash and cash equivalents of RMB868.4 million (US$137.0 million), restricted cash of RMB64.2 million (US$10.1 million), short-term deposits of RMB10.0 million (US$1.6 million) and short-term investments of RMB411.8 million (US$65.0 million), compared to RMB587.0 million, RMB35.8 million, nil and RMB828.9 million, respectively, as of December 31, 2021.
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[1] “Non-GAAP operating loss” is defined as loss from operation excluding share-based compensation expenses. See “Use of Non-GAAP Measures” and “Reconciliation of GAAP and Non-GAAP Results” included in this press release. |
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[2] “Non-GAAP net loss attributable to ordinary shareholders of the Company” is defined as net loss attributable to ordinary shareholders of the Company excluding share-based compensation expenses. See “Use of Non-GAAP Measures” and “Reconciliation of GAAP and Non-GAAP Results” included in this press release. |
OUTLOOK
For the second quarter of 2022, the Company currently expects:
– Net revenues to be between RMB850 million and RMB1.05 billion.
The Company estimates that the year-over-year change in revenues will be mainly due to the high comparison base from the Xiaomi-branded sweeper robot business for the second quarter of 2021, which the Company has completely cut off in 2022, as well as the impact of overall market demands in the second quarter of 2022.
The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, all of which are subject to change.
Artificial Intelligence
JupiterOne and watchTowr announce partnership to protect business critical assets with broad exposure management capabilities
SINGAPORE, May 2, 2024 /PRNewswire/ — watchTowr, a leader in external attack surface management (EASM) technology and fuelled by watchTowr Labs, a renowned vulnerability R&D capability, has formed a strategic partnership with JupiterOne. JupiterOne is a leader in cyber asset attack surface management (CAASM) technology. This collaboration enables customers to rapidly prioritize emerging threats within their constantly changing environments, focusing on fixing the most critical risks impacting their business, which enables an end-to-end continuous threat exposure management process (CTEM).
Over 28,000 CVE records were published in 2023; a figure that is expected to increase as attackers shorten the time from known vulnerability to exploit, reducing it from weeks to days. JupiterOne and watchTowr’s integrated solution empowers enterprises to discover their most critical and exploitable vulnerabilities, prioritize them with asset context based on business impact and receive an actionable remediation plan to improve security posture.
This partnership enables a complete continuous threat exposure management program, addressing the full spectrum of cyber risk management. The fully integrated solution provides continuous monitoring and assessment of both internal and external digital assets, allowing for prioritization and effective threat mitigation for a business’s most critical assets. “Our partnership with watchTowr is a game-changer” said Forte. “Combining our data aggregation with real-time asset discovery and automated security testing allows us to offer a unique, all-encompassing approach to exposure management.”
Benjamin Harris, CEO, watchTowr, said, “While the number of reported vulnerabilities continues to rise, the vulnerabilities that matter – in mission-critical, key systems – have exploded at an alarming rate. This reality, combined with the significant shift in speed by attackers to weaponize vulnerabilities – the ability to validate exploitability and prioritise actions based on real business risk has never been more vital. We’re excited to join forces with JupiterOne to give security teams around the globe this much-needed end-to-end capability.”
About JupiterOne:
JupiterOne is a cybersecurity startup delivering powerful software solutions to companies across all industries, providing deep insights to cyber assets and the relationships between, empowering security professionals to have true knowledge and ownership of their attack surfaces.
About watchTowr:
watchTowr is a global cybersecurity technology company, built by former adversaries.
watchTowr’s world-class External Attack Surface Management and Continuous Automated Red Teaming technology is informed by years of experience compromising some of the world’s most targeted organisations and utilised by Fortune 500, financial services and critical infrastructure providers every day.
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LONDON, May 1, 2024 /PRNewswire/ — Clarivate Plc (NYSE: CLVT; CLVT PR A) (“Clarivate”), a leading global provider of transformative intelligence, today announced that its board of directors declared a quarterly dividend of $1.3125 per share on its 5.25% Series A Mandatory Convertible Preferred Shares (the “Preferred Shares”), payable in cash on June 3, 2024 to shareholders of record at the close of business on May 15, 2024.
On the mandatory conversion date, which is scheduled to occur on June 3, 2024, each Preferred Share will automatically and mandatorily convert into a number of ordinary shares of Clarivate (and cash in lieu of any fractional ordinary shares) based on the average volume weighted average price (“VWAP”) of Clarivate’s ordinary shares over a 30-trading day period that begins on, and includes, April 18, 2024 and is scheduled to end on, and include, May 30, 2024 (the “valuation period”). If such VWAP is (i) greater than $31.20, then the mandatory conversion rate will be 3.2052 ordinary shares of Clarivate per Preferred Share, (ii) less than or equal to $31.20 but equal to or greater than $26.00, then the mandatory conversion rate will be a number of ordinary shares of Clarivate per Preferred Share equal to $100.00 divided by such VWAP and (iii) less than $26.00, then the mandatory conversion rate will be 3.8462 ordinary shares of Clarivate per Preferred Share. The mandatory conversion rate will be announced following the end of the valuation period. The above description of the terms of the Preferred Shares is not complete and is subject to, and qualified in its entirety by reference to, the “Statement of Rights” for the Preferred Shares, which is filed as Exhibit 3.2 to Clarivate’s annual report on Form 10-K for the fiscal year ended December 31, 2023.
Cautionary Note Regarding Forward-Looking Statements
This communication contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future business, events, trends, contingencies, financial performance, or financial condition, appear at various places in this communication and may use words like “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “see,” “seek,” “should,” “strategy,” “strive,” “target,” “will,” and “would” and similar expressions, and variations or negatives of these words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include those factors discussed under the caption “Risk Factors” in our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission (“SEC”). However, those factors should not be considered to be a complete statement of all potential risks and uncertainties. Additional risks and uncertainties not known to us or that we currently deem immaterial may also adversely affect our business operations. Forward-looking statements are based only on information currently available to our management and speak only as of the date of this communication. We do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, except as otherwise required by securities and other applicable laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.
About Clarivate
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.
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BEIJING, May 1, 2024 /PRNewswire/ — Focusing on the development of AI, the third CMG Forum was held on Monday in Beijing.
Li Shulei, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and the head of the Publicity Department of the CPC Central Committee, attended the opening of the event and delivered a speech.
Guests at the forum stressed the role of media in promoting the innovative application of AI as well as its governance.
Efforts should also be made to boost the development of AI in creating positive, healthy, diverse and high-quality content, so that AI can become a force for good and benefit mankind, they agreed.
They also called on media to accelerate intelligent transformation and help bridge international exchanges and cooperation on the governance of AI to facilitate its healthy, orderly and safe development.
Hosted by China Media Group (CMG), the forum attracted more than 200 participants from international organizations, media, think tanks and multinational companies.
“Innovation and breakthroughs in science and technology not only guide the development and progress of human civilization, but also bring uncertainty to the changing world,” said Shen Haixiong, vice minister of the Publicity Department of the CPC Central Committee and president of CMG. He called for efforts to jointly create valuable and responsible artificial intelligence.
AI technology is affecting every aspect of our lives. Thomas Bach, president of the International Olympic Committee (IOC), stated in a video speech that CMG has always been a partner of the IOC, bringing the charm of the Olympic Games to hundreds of millions of Chinese viewers. He said the IOC invites CMG to work together for the creation of a future with the application of AI in Olympic sports.
“From ancient inventions such as silk, printing and the compass to modern technological advances such as robotics, telecommunications and green technology, China has always been committed to innovation and creation,” said Daren Tang, director general of the World Intellectual Property Organization (WIPO). He said WIPO pays close attention to ensuring a balance between the opportunities and risks of artificial intelligence and is committed to strengthening cooperation to ensure that artificial intelligence is properly used.
https://news.cgtn.com/news/2024-04-30/3rd-CMG-Forum-in-Beijing-discusses-AI-development-1tdDcXvCexG/p.html
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