Viomi Technology 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 RMB65M in cash. The sale of the IoT@Home portfolio products to Chen will be effected through termination, at closing, of the existing variable interest entity contractual arrangements between Yunmi Hulian Technology Co., Ltd. and Foshan Yunmi Electric Appliances Technology Co., Ltd., 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 Co., Ltd. As part of a pre-closing reorganization, Zhumeng Hulian Technology Co., Ltd. and Guangzhou Interconnect Technology Co., Ltd. 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. Chen will pay the RMB65M purchase price through Foshan Viomi in the form of a registered capital increase to Guangzhou Interconnect at closing. The transaction is subject to certain closing conditions and is expected to close by the end of August 2024.