This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk03: Ladies and gentlemen, thank you for standing by for Viomi Technologies Co. Limited's fourth quarter and full year 2020 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Cecilia Lee, the Senior IR Manager of the company. Please go ahead, Cecilia.
spk04: Thank you, operator. Hello, everyone, and welcome to VOMI Technology Core Limited Earnings Conference Call for the fourth quarter of the year 2020. As a reminder, this conference is being recorded. The company's financial and operating results were issued in press release earlier today and posted online. You can download the earnings press release and sign up for our email distribution list by visiting the IR section at our website at ir.vomi.com. Our founder, Chairman of the Board of Directors, and Chief Strategic Officer, Mr. Xiaoping Chen, will begin with prepared remarks, and the head of our finance team, Mr. Wei-Chang Cai, will join the Q&A session. Before we continue, please note that this discussion will contain forward-looking statements made under the CEPPER provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve heavy risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's annual report on Form 20F and other filings filed with the U.S. SEC. The company doesn't assume any obligation to update any forward-looking statements, except as required by law. Please also note our earnings press release and this conference call into discussion of inaudited gap financial information as well as inaudited non-gap financial measures. Valmy's press release contains a reconciliation of the inaudited non-gap measures to the inaudited mostly direct comparable gap measures. I will now turn the call over to our founder and CEO, Mr. Xiaoping Chen. Mr. Chen will deliver his remarks in Chinese. Follow me definitely by English translation. Mr. Tang, please go ahead.
spk01: Hello, everyone. Thank you for attending our 4th quarter and the full-year conference. In 2020, we experienced an uncertain macroeconomic environment and industry. We achieved a growth of nearly 25.3% year-on-year. For example, in the last conference, we communicated with the mayor that we will carry out a growth strategy in the 4th quarter to improve the product structure and further improve the quality of the product. We have achieved a real-time recovery of the profit margin. The profit margin increased from 17.1% in the third quarter of last year and 19.9% in the same period in 2019 to 23.5%. We will continue to implement this strategy this year. At the same time, we will increase the development of three aspects of brand power, product technology innovation, and service channel construction. In recent years, we have seen the development trend of the internet industry continue to grow. We expect smart homes to become an important application scene in the IoT industry. The overall solution of cloud integration will be the trend in the future IoT home industry. In the past two years, we have built a 5G IoT home architecture, including 5G IoT home automation architecture from the technical architecture, AI algorithm, chip module, smart sensor, smart terminal, and cloud service. Through the establishment of a unified bottom-level IoT connection protocol and module, we have realized the complete integration of smart hardware terminal. will become a complete intelligent experience. We will continue to focus on AI and IoT technology, and continue to launch more new products. As a key part of the business strategy of quality growth, and as an important direction for our IoT products, these higher ASP and higher horsepower innovation products will continue to improve our overall horsepower level. In the past few months, we have launched high-end technology brands like Super and Vision, series of water purifiers, RCFACE 5G large bottle refrigerator series of new products, iBot AI washing machine, AI new wind washing machine, as well as a series of intelligent home appliances, such as 5G IoT CPE router and IoT chips, etc. Especially in the water purifier field, we use the user's needs to start environmentally friendly, and use innovative dual RO film technology to achieve super large volume and greatly improve the efficiency of water purification. We will also China China China The two technologies of the power generation machine and the anti-dust machine are at the top level in China and have a good application prospects. After the meeting, the group standard was officially issued by the Chinese Paper Test Association to organize the family use and similar use of the mineral water machine. The successful launch and rapid development of our free brand new business is also an important driving force for our overall profit level. From the fourth quarter, we have started to expand our free-of-charge machine business and quickly expand our free-of-charge machine team. In the production and production of free-of-charge factories, we have launched automated free-of-charge machines such as the Alpha series, which are already differentiated, and successfully opened up the overseas market to present a good growth trend. In the near future, we will launch more differentiated free-of-charge machine new products and continue to expand the overseas market. We also strive to provide users with a perfect IoT home solution solution, including IoT product experience, service, content, etc. In terms of LTE's real-time business, we have launched a series of user real-time business service packages that cover software upgrades, maintenance and maintenance, repurchase benefits, entertainment audio and other content. We will continue to upgrade the system version of the big refrigerator and continue to work with us and Douyin to purchase music, We have expanded our cooperation with the third-party content platform to further enrich the large-scale Internet content, build a high-definition kitchen scene experience, and strengthen user connectivity. With the continuous investment and accumulation of our technical research and development in the past few years, we have achieved a good performance in terms of patent innovation. By the end of 2020, we have acquired more than 3,000 patents abroad and more than 2,400 patents. In January of this year, we successfully entered the Guangdong Innovative 100 Wall, representing Yunmi's recognition of the new technology innovation in the consumer market in the family online market. We will continue to advance this strategy of intelligent growth in 2021. We will launch diversified products and continue to optimize the product line, eliminating some low-power SKUs, and at the same time developing brand power, smart product development, and IoT service channel construction to optimize our 5G IoT home system and user experience. We will use AI and automation as a product innovation direction. At the upcoming Spring New Year release conference in early April this year, we will launch a series of AI water purifiers with higher technology content, vacuum cleaners, air conditioners, and power outlets, and optimize the offline service system at the same time, expand the offline sales and service network, and gradually realize the practical expansion from end-to-end sales to user operations. These product technologies, IoT experience and service upgrades are key to our long-term sustainable development. China's 5G infrastructure has achieved tremendous progress in the past two years. The era of IoT commercialization is also coming. According to the data released by IDC this year, 85% of devices will be included in the Internet platform by 2020, and 15% will be included in the Internet. In July last year, five departments, including the Ministry of Industry, Industry and Industry, jointly published the National New Generation Artificial Intelligence Standard System Construction Manual. Thank you.
spk04: Okay. Thank you, Mr. Chen. I will quickly translate our funders' remarks before discussing our financial performance for the fourth quarter of 2020. Hello, everyone. Thanks for joining our fourth quarter four-year 2020 earnings conference call. We delivered a robust four-year growth of 25.3% despite the macroeconomic uncertainties and the challenging environment for the whole industry. In line with what we communicated on the last earnings call, we effected it on our quality growth strategy in the fourth quarter. optimized our business and product mix, and further improved our business operations, realizing a meaningful recovery in gross margin. Gross margin for the fourth quarter increased to 23.5% from 17.1% for the third quarter of that year and 19.9% for the fourth quarter of 2019. We will continue to expect to own this growth strategy and invest more resources in branding and R&D for our IoT products as well as our services. In recent years, we have seen the momentum in the IoT industry continue to develop with intensity. We see the Helm scenario to be a key application area with holistic IoT solutions based on cloud services and hardware to be a flourishing trend in this industry. In the past two years, we have been developing a 5G IoT Helm structure which integrates technology frameworks, sensors, AI algorithms, 5G IoT chain modules and the smart hardware to deliver cross-product and cross-scenario interactions through our United IoT protocol and modules. As an important part of our quality growth strategy and the focus of our R&D, we continue to roll out more diversified new products with a focus on the seamless integration of AI and IoT technologies. Our enough SKUs with higher margins and higher average selling prices are main drivers of our growth margin uplift. In the past month, we have introduced the super and vision series of water purifiers, and our new premium water purifiers are brand-new. New FPUs of 21-bit 5G large-screen refrigerators. I bought AI washing machines, whereas the new wind AI washer dryers, together with series of smart home devices, including the 5G IoT CP products, routers, and IoT chips. In particular, in the water purifier sector, In order to address demands of users as well as tackle environmental protection concerns, we applied innovative double reserve osmosis technologies to realize larger flux and improve water purification efficiency. Further, we will soon introduce a new high-end body purifier, which leaves beneficial minerals in the water during the purification process, allowing us to meet user demands when it comes to human health. Our innovations in water purification technologies have been highly recognized by industry experts. Last week, a group of experts from professional and academic organizations, including the China Association for Quality Inspection, Chinese Academy of Engineering, and the Engineering School of Tsinghua University participated in the assessment of two of our water purification technologies. The result of this assessment was that our technologies were recognized as industry leading with the potential for its further application in the water purification area. Immediately after the assessment, the group's standard of mineral water purifier for household and similar purposes was officially launched. The successful launch and domestic and overseas rapid development of our new Valmy branding swivel robot was also a key pillar of our overall profitability improvement. In the fourth quarter, we expanded a dedicated swivel robot team. the swivel robot manufacturing in our own factory. What came out of this was the development and introduction of auto dust collecting swivel robots such as AlphaSeries. With the success of exports of these swivel robots and its growth momentum, we will continue to roll out more differentiated FKUs and expand into more domestic and global markets. We are also seeking to provide more comprehensive IoT housing solutions consisting of IoT project experiences, services, and Internet content. With regards to our value-added content business, we introduced a series of service packages including software updates, product maintenance services, repurchase discounts, as well as Internet entertainment content. We continue to upgrade our large-scale refrigerator operating system. Following our cooperation with Douyin, Google Music, iQiyi, Simalaya, and Douguo, we recently expanded cooperation with additional third-party platforms to further enrich our large-screen Internet resources, create a differentiated kitchen scenario experience, as well as increase user thickness. Leveraging our investment and endeavors in R&D, we have achieved solid performance in patent innovation. As of the end of last year, the number of our assimilative domestic and global patent applications had reached over 3,000, among which over 2,400 were already registered. In January, we were recognized as one of the top 100 innovative companies in Guangdong for demonstrating our technology recognition in the new consumer IoT market. As we progress into 2021, we have continued to execute on our quality growth strategy through the introduction of new high-end products, optimization of our deadlines, and facing out specific FKUs with lower margins. We will also invest more resources in branding and R&D for our IoT products, as well as the IoT service system to optimize our 5G IoT home system and user experience. With a focus on AI and smartification, we will launch more new products, including the water purifier, swivel robot, air conditioners, and smart products, among others, in our upcoming spring new product launch event in early April. Further, we will optimize our offline service system and expand offline sales and experience channels to realize meaningful business extension from terminal sales to user operations. All of this product and technology innovation, IoT experience as well as the service optimization are the key drivers of our long-term development. The construction of China's 5G infrastructure has demonstrated rapid development and the era of the commercial application of IoT is on the way. According to data released by IDC, 85% of devices will be connected to the internet and 15% will be connected to IoT by 2022. It was pointed out in the guidelines for construction of the National AI Standard System launched by the Ministry of Industry and Information Technology and other national official departments in last July that smart home products and applications will be promoted as one of the important industries in this area. We believe that with the rapid application of 5G and the continuous improvement of smart home ecology, IoT will be applied in more and more home scenarios. We are confident in our leading position in this industry as well as our capabilities to deliver robust and stable growth while maintaining a healthy level of profitability, bringing long-term value to our shareholders. That concludes our founders' remarks. Let's now turn to the detailed financial review of the fourth quarter of 2020 as well as outlook for the first quarter of 2021. The net revenues were 1.89 billion RMB, representing year-over-year increase of 8.5%. The growth was slightly below our previous guidance by just around 0.6%, primarily due to the proactive step to start the sales of some specific products with lower average selling prices and lower growth margins, such as some low-end refrigerators and washing machines. In order to make room for the launch of a slate of new large screen refrigerators, and high-end washing machines, as well as to improve the profitability. Revenues from out-at-home portfolio increased by 15.7 percent to 1.11 billion RMB from 963.7 million RMB for the first quarter of 2019, primarily driven by the sustained stealth increase for certain new product categories, in particular our receiver robots. Valmi branded swivel robot business is expected to make greater contribution in 2021. Revenue from our home water solutions decreased by 5.9% to 363 million RMB. The decline was primarily due to the decreases in the average selling prices of our Xiaomi branded water purifier products. This was partially offset by the successful introduction and increased sales of our new series of Balmy Branded Water Purifier products, which narrowed the year-over-year decline for home water solutions compared to the previous quarters. Balmy Branded Water Purifiers are expected to make greater contribution in our home water solution business as well as of our total net revenues in 2021. Revenues from consumer booths increased by 69.3% to 160.2 million RMB, primarily due to increased demand for our wide-equified field products. Revenues from small appliances and others decreased by 15.5% to 251.2 million RMB, primarily due to product portfolio optimization for higher gross margin in this category. Gross profit increased by 28% to 443.8 million RMB and gross margin was 23.5% compared to 17.1 for the third quarter of last year and 19.9% for the fourth quarter of 2019. The quarter-of-quarter and year-of-year increases in gross margin were primarily driven by our efforts to shift the business and product mix toward higher gross margin products. including the rollout of our new Valmi-branded water purifiers and swivel robots, alongside the optimization of margins across pipelines. As Mr. Chen discussed, the meaningful recovery in gross margin was in line with our quality growth strategy, demonstrating our business flexibility and strong execution capabilities. As we continue to face our lower margin products and focus our efforts on generating greater revenue contributions from higher margin product categories and SQs, we do expect to experience noticeable degree of growth margin recovery in 2021. The total operating expenses increased by 21.3% to 331.8 million RMB, primarily due to the growth of our business, as well as increases in R&D expenses and selling and marketing expenses. In more detail, R&D expenses increased by 41.8% to 93.1 million RMB. Selling and marketing expenses increased by 17.3% to 217.4 million RMB. G&A expenses decreased by 5.7% to 21.3 million RMB. The net income attributable to ordinary shareholders of the company increased by 23.3% to 110.6 million RMB, and non-GAAP net income attributable to ordinary shareholders of the company increased by 15.3% to 115.5 million RMB. Additionally, our balance sheet remained healthy. As of December 31, 2020, we had cash-in-cash equivalents of $500 million. and 4.1 million RMB, restricted cash of 17.6 million RMB, short-term deposits of nil, and short-term investments of 696.1 million RMB. We won't go into details on our four-year 2020 results, but as mentioned earlier, they can be reviewed on our earnings press release. Now let's turn to our outlook. For the first quarter of 2021, we currently expect net revenue to between 900 million RMB and 950 million RMB, representing year-over-year growth around 17.6 percent to 24.1 percent. The above outlook is based on the current market conditions and the reflect on current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. So this concludes our prepared remarks. We will now open the call for the Q&A session. And the head of our finance team, Mr. Wei Changcai, will join the session and answer questions. Operator, please go ahead.
spk03: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. For the benefit of all participants on today's call, if you wish to ask your question to the company's management in Chinese, please immediately repeat your question in English. At this time, we will pause momentarily to assemble our roster. The first question today comes from William Lee with Morgan Stanley. Please go ahead.
spk00: Thanks a lot. Thanks a lot. Thanks a lot. because of the COVID-19 pandemic, the market is shrinking, and the market continues to grow. In 2021 and in the future, with the further expansion of IoT, what will be the strategy of the market? There may be some small details related to this. In 2020, if we contribute according to the channel income, I have two questions. First of all, what's the company's 2021 strategy for the own brands and the Xiaomi brands in particular? Is there any guidance by categories? And the second question is on channel. What's the strategy on the offline online channel shifts in 2021, especially when we saw some more expansion of online channel in last year because of COVID-19? So going onwards, what kind of shifts are we going to expect? And a little bit of number question is, in 2020, what's the contribution mix from online and offline, breakdown by Xiaomi channel, non-Xiaomi channel, and non-Xiaomi offline channel. Thank you very much.
spk07: Okay, for the first question, for Wyoming branded business, we can elaborate for multiple perspectives. Firstly, we will shift the Wyoming brand business and product mix toward diversification with the introduction of more high-end products with more advanced technologies, as well as phase up some specific old SKUs with lower margins across product lines, such as some SKUs of low-end washing machines and refrigerators with dark screens. With regard to the key categories, we will focus more on business with higher margin and good growth momentum, such as own-branded water purifiers and sweeper robots. For Wyoming-branded water purifiers, we will introduce a series of large, fresh water purifiers in the second half of 2020, and we saw robust sales of some of new products, such as Xiao Nan Diao and new instant heating water purifiers after introduction. We've also seen the water purifiers industry develop to large floods, and the industry data also show the sales contribution of large floods as well as the instant heating water purifiers are increasing. We expect Wyoming branded water purifiers business to deliver greater revenue contribution in both of home water solutions and of our overall revenues in 2021. We will also invest more in our Wyoming branded Slipper robots, in particular in overseas market, which we expect to see a solid growth. As we have expanded our Slipper robot team and exploring additional global markets and channels for Wyoming branded Slipper robots, we think the revenue contribution from this category will increase as well. In terms of technology application, as we discussed earlier, we will focus more on AI and smartification, which we think the key parts of IoT products. In our upcoming new product launch event in early April, we will introduce more products with AI applications. For Xiaomi branded business, we will continue the stable and solid cooperation with Xiaomi. We are also glad to seek more cooperation with Xiaomi in the future. Okay. About the channel, we don't expect a major channel shift for Xiaomi branded business in short term compared to 2020. While with our overseas expansion, the sales contribution, which has percentage of total revenues, will increase in 2021. In terms of revenue breakdown for 2020, the revenues from Huawei branded business and Xiaomi branded business contributed nearly half and half of full year of 2020. Within Huawei branded business, approximately over 60% are from online, and the rest are from offline and then from export, which mainly consists of Huawei branded Slipper robots. Within the online channels of full year of 2020, Xiaomi Youping was the largest contributor, followed by Jindong, then Tmall, and Suning. We saw online contribution increase during the second quarter of 2020. While with the recovery of offline channels in the second half, we didn't see a major channel shift caused by the COVID-19 for full year of 2020. 渠道我在補充幾點吧,就是在2020年之後的話,進入2021年,中國的線下的渠道基本上已經全面恢復了。
spk01: So we will have three aspects on the channel. The first is that our offline channels will take an expansion strategy. We will increase this kind of experience, service and design for users. All-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all-in-all, all Okay, I'll quickly translate our Mr. Chen's additional comments. So he said that three points of our strategy for the channel's expansion.
spk04: So first, heading into 2021, we saw a meaningful recovery of the offline channels across China market. And we will expand our offline stores as well as to improve the overall offline operating system, including the user experience and the IoT design. And we will increase the offline outlets for 2021. And the second is that we will maintain very good operating system and capabilities for online channels with . And lastly, we have been expanding our channels and marketing tools with some new digital media such as Douyin and Kuaishou. And we think such new media will be development training for the marketing and the development of our channel expansion as well for 2021. That's the answer from our Mr. Chen. So I hope that's helpful.
spk00: Okay. Thank you very much, Mr. Chen and Mr. Guan. That was very helpful. Thank you.
spk03: The next question comes from Shilong Chen with CICP.
spk06: Please go ahead. Thank you for taking my question. The first one is, I observed that your gross profit margin has recovered in this quarter. What is the biggest reason for this gross profit margin recovery and will this trend continue in 2021? That's my first question. And I will have a follow-up.
spk07: We are confident on the recovery on margin find as we have been executing the quality growth strategy on the following perspectives. We will continue to shift the Wyoming branded business and products toward diversification with the introduction of more high-end products with higher margin and higher ASPs. And the revenue contribution of these new products will increase. And we will continue to face up some specific old SKUs of lower margins across borderlines, such as some SKUs of low-end washing machines and refrigerators without screens, as mentioned just now. Due to the above actions, we've been taking the expected gross margin to recover in 2021. Thanks.
spk06: And my second question is, Since you have a good relationship with Xiaomi and you have your own IoT platform business, and Xiaomi also has their Xiao'ai Tongxue like that, so how can you balance your product and the Xiaomi platform and your platform? That's my second question.
spk01: A few days ago, I saw that Lu Weibin and Mr. Lei have also mentioned the direction of strengthening the whole thing. At the same time, there are more and more data about the amount of breakthroughs among children and their network. Many of our products are also exposed to children and children, and can be connected to Xiaomi's IoT platform. So here we will see that In terms of sales products, the overall connection of this kind of user, this kind of IoT, this kind of small iPhone, is still very popular. This is the first aspect. The second aspect is that we are in the overseas export of small machines. In fact, many products are also benefited from the fact that Xiaomi's app is a unified platform. So in the overseas market, our small machines also get this kind of customer and customer and channel. Okay, I will quickly translate Mr. Chancellor back.
spk04: from three perspectives. So first, it's regarding the IoT platform of Xiaomi and our products, which connects to the Xiao'ai home ship. So firstly, we can saw some speech from the senior management of Xiaomi recently that they could emphasize on their IoT platform. And we also have seen a growing shipment of Xiao'ai home ship. in the market. Actually, many of our IoT products can be and have been connected with the Shanghai Township, and we also saw those products that we sold on your PIM platform are very welcome. The second is about the swivel robot business. So actually, as you know, we have been cooperating with Xiaomi on their swivel robot business since 2019. And this helped us to develop our own Xiaomi branded swivel robot to expand domestically as well as the global market. And thirdly, we are also seeking more and more cooperation with Xiaomi, and we think we will have many opportunities to expand the product category, cooperation with them in the future. So that's the answer for the question.
spk06: Thank you, Chengzong. Thank you.
spk02: The next question is from Vincent Wu with Needham & Company. Please go ahead.
spk05: Thank you, management, for taking my question. I have two questions. The first question is, can management talk about the view on the overall home appliance market in 2021? Are we seeing competitive pressure from industry leaders which may cause price war? And how was the first two months of 2021 going so far in terms of the consumer demand? My second question is about how much did the international market contribute in the fourth quarter and how big of an opportunity we see that it can grow into 2021. Thank you.
spk01: In 2020, the whole year was affected by the epidemic, so all industries and companies will be under some pressure in terms of performance and some pressure on this scale. Then enter 2021, the entire industry will show a recovery growth. There are two changes in this. The first is that consumers' attention to some smart products continues to rise. You can see that from the second half of last year to this year's Q1, In 2021, Q1, consumers' recognition of this kind of intelligent product is much higher than before. The outstanding performance is that the popularity of this kind of vacuum cleaner is greatly increased. In addition, we now see that the recently just opened AWE, just a few days ago, AWE, all brands have launched a lot of products in the direction of intelligent. So I think the first aspect is that intelligent products are very well recognized by users. This is the first aspect. The second aspect is in terms of competition. We will see that all the companies are pushing in the direction of intelligent technology. But we feel that in order to form a integrated solution of products and Internet services, to be able to form a complete product combination, so far, we are still in the leading position. So in this respect, we will further strengthen our leading advantage on this, to increase our channel brand power, Okay, I will translate. So in the year of 2020, we saw the pressures of the whole industry due to the COVID-19 with regard to their growth, top-line growth, as well as earnings.
spk04: But heading into 2021, we saw the recovery of the health industry. We saw that consumers turned more attention to smart products, especially some IoT products, and we can see the domestic market of this web robot has increased very quickly since the start of this year. You can see that during the AWE that we recently hosted and a lot of people and consumers put a lot of focus on the IoT experience and the smart products. And we think the IoT products as well as the whole IoT home industry have gained more recognition compared to previously. And regarding to the competition, Well, we think that many of the traditional home appliances, as well as many companies, they put a shift of focus towards developing their smart products, so we think this is a trend. But with regards to holistic IoT solutions as well as IoT experience or services, we think we remain the leading position in this perspective. So we will increase our resources in our branding and R&D in the IoT holistic solutions and to improve the comprehensive IoT experience. That's the answer for the first question. There are two questions.
spk01: There is a question about the impact of export on our business. In the fourth quarter of last year, focus on the deployment of our products and the expansion of the overseas market. In the first quarter of this year, the performance exceeded our expectations. It should be several times the growth. It should be several times the growth of the overseas market. What stands out is the Saudi-made products. This product is so popular overseas that it should exceed our expectations. So this year, it is expected that we will get a very good growth in the overseas market. And the profit and loss situation in this part is not bad.
spk04: Okay, I will translate. So in terms of the question about our global market expansion, as you know that we have expanded our export market since the first quarter of last year. And heading into the first quarter of this year, we have been rapidly expanding our global market. especially for our Xiaomi brand Xperia robot business. And we also see some very robust growth, like multiple spots in this category in global markets. And as the trend continues, we think we will gain a very solid growth from the global market. And we are also seeking more channels as well. Okay, I hope this is helpful.
spk05: Yes, thank you. Appreciate it.
spk03: As there are no further questions, now I'd like to turn the call back over to the company for closing remarks.
spk04: Thank you once again for joining us today. If you have other questions, please contact us through the contact information on our website. Already passing the group, I'm an investor relations consultant. Thank you all. Have a good day and night.
spk03: This conference is now concluded. You may disconnect your lines.
Disclaimer