| RELATED PARTY TRANSACTIONS |
| 19. | RELATED
PARTY TRANSACTIONS |
SUMMARY OF RELATED PARTY TRANSACTION RELATIONSHIP
| Name |
Relationship
with the Group |
| Foshan
Viomi and its subsidiaries (“Foshan Viomi”) |
Controlled
by a principal shareholder of the Company |
| Xiaomi |
Shareholder
of the Group |
The
Group’s relationship and transaction with Xiaomi
Xiaomi
is the Group’s strategic partner and shareholder.
The
Group’s sales to Xiaomi are governed by a business cooperation agreement, pursuant to which Xiaomi is responsible for the distribution
and sales of such products through their network and sales channels.
The
Group also sells products through Xiaomi’s online e-commerce channel Xiaomiyoupin.com, and is charged of commissions pursuant to
a commission sales agreement.
VIOMI
TECHNOLOGY CO., LTD
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts
in thousands, except shares, ADS, per share and per ADS data)
| 19. | RELATED
PARTY TRANSACTIONS (Continued) |
Transactions
with Foshan Viomi
The
Group sells water purifiers and other products to and purchases raw materials from Foshan Viomi. In addition, The Group leases its office
premises to Foshan Viomi, and the Group also engages Foshan Viomi for other services such as transportation services, maintenance services
as well as installation services etc.
SUMMARY OF RELATED PARTY TRANSACTIONS
| (1) | Amount
due from/to related parties |
| | |
As
of December 31, | | |
As
of June 30, | |
| | |
2025 | | |
2026 | |
| | |
RMB | | |
RMB | |
| | |
| | |
(unaudited) | |
| Accounts receivable from
related parties: | |
| | | |
| | |
| Xiaomi(a) | |
| 304,078 | | |
| 366,158 | |
| Foshan Viomi(c) | |
| 36,095 | | |
| 23,760 | |
| Total | |
| 340,173 | | |
| 389,918 | |
| Accounts receivable from a related party | |
| 340,173 | | |
| 389,918 | |
| | |
| | | |
| | |
| Other receivables from related
parties: | |
| | | |
| | |
| Other receivables from
Xiaomi | |
| 200 | | |
| 537 | |
| Total | |
| 200 | | |
| 537 | |
| Other receivables from related parties | |
| 200 | | |
| 537 | |
| | |
| | | |
| | |
| Amounts due to related parties: | |
| | | |
| | |
| Purchase
and other payable to Xiaomi(a) | |
| 596 | | |
| 2,668 | |
| Amounts due to related parties | |
| 596 | | |
| 2,668 | |
| (2) | Purchase
from related parties |
| | |
2025 | | |
2026 | |
| | |
Six
Months ended June 30, | |
| | |
2025 | | |
2026 | |
| | |
RMB | | |
RMB | |
| | |
(unaudited) | | |
(unaudited) | |
| Foshan
Viomi(c) | |
| 5,366 | | |
| 9,798 | |
| Total | |
| 5,366 | | |
| 9,798 | |
| Purchase
from related parties | |
| 5,366 | | |
| 9,798 | |
VIOMI
TECHNOLOGY CO., LTD
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
(Amounts
in thousands, except shares, ADS, per share and per ADS data)
| 19. | RELATED
PARTY TRANSACTIONS (Continued) |
| (3) | Revenue
from related parties |
| | |
2025 | | |
2026 | |
| | |
Six
Months ended June 30, | |
| | |
2025 | | |
2026 | |
| | |
RMB | | |
RMB | |
| | |
(unaudited) | | |
(unaudited) | |
| Xiaomi(a) | |
| 1,347,652 | | |
| 652,894 | |
| Foshan
Viomi(c) | |
| 13,314 | | |
| 13,244 | |
| Total | |
| 1,360,966 | | |
| 666,138 | |
| Revenue from related parties | |
| 1,360,966 | | |
| 666,138 | |
| (4) | Selling
and marketing expenses |
| | |
2025 | | |
2026 | |
| | |
Six
Months ended June 30, | |
| | |
2025 | | |
2026 | |
| | |
RMB | | |
RMB | |
| | |
(unaudited) | | |
(unaudited) | |
| Commission expenses
charged by Xiaomi(b) | |
| 22,596 | | |
| 16,047 | |
| Other
expenses charged by Foshan Viomi(d) | |
| 5,460 | | |
| 3,465 | |
| Total | |
| 28,056 | | |
| 19,512 | |
| Selling and marketing expenses | |
| 28,056 | | |
| 19,512 | |
| |
(a) |
The
Group both sells water purifiers and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi.
The amount due from Xiaomi represents receivable arising from sales of water purifiers and other products. The balance due to Xiaomi
represents payable arising from purchase of Xiaomi branded products and certain raw materials. |
| |
|
|
| |
(b) |
The
Group sells its own brand products on the E-platform of Xiaomi, which charges the Group commission and technical service fees, also
Xiaomi provides advertising and promotion service. The amount due from Xiaomi represents sales receivable net of commission, advertising
and promotion service. |
| |
|
|
| |
|
Certain
amounts in prior periods have been reclassified to conform with current period presentation. These reclassifications had no impact
on the Group’s consolidated financial statements. |
| |
(c) |
The
Group purchases certain raw materials from Foshan Viomi and its subsidiaries. The Group also sells its own branded products to Foshan
Viomi, and provides rental services, and other services to Foshan Viomi and its subsidiaries. |
| |
|
|
| |
(d) |
The
Group’s related party provides transportation services, maintenance services, promotion services as well as installation services
for the Group. |
|