Viomi Technology Co., Ltd

Thank you for standing by for Viomi Technology Company's Limited Earning Conference Call for the first quarter of 2021. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Cecilia Lee, the IR head of the company. Please go ahead, Cecilia.

Thanks, Operator. Hello, everyone, and welcome to Viomi Technology Call Limited Earnings Conference Call for the first quarter of 2021. As a reminder, this conference is being recorded. The company's financial and operating results were issued in a press release earlier today and posted online. You can download Ernie's press release and sign up for the company's email distribution list by visiting the IR section of the company's website at ir.balmy.com. Participating in today's call are Mr. Xiaoping Chen, the Founder Chairman of the Board of Directors, and Chief Executive Officer, Mr. Shoufei Bao, our new President. and Mr. Wei-Tang Tsai, the head of our finance team. The committee's management will begin with prepared remarks, and the call will conclude with a Q&A session. Before we continue, please note today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. private security litigation reform act of 1995. Forward-looking statements involve inherent 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 Films 20F, and other filings is filed with the U.S. Securities and Exchange Commission. The company doesn't assume any obligation to update any forwarding statements except as required by law. Please also note well-missed earnings price release and discounted fiscal include discussions of inaudited gap financial information as well as inaudited non-gap financial measures. Well-missed price release contains a reconciliation of the inaudited non-gap measures to the inaudited most directly 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. Followed immediately by English translation. Mr. Chen, please go ahead.

to 12.6 billion RMB. At the same time, due to the optimization of the product structure, the profit margin continues to recover. The profit margin increased to 21.1 compared to 18.8 last year. Our continuous growth over the years comes from our sharp movement towards the needs of users, as well as the cross-border integration and innovation of technology, and the continuous optimization of IoT product governance and all-round solution solutions. In April this year, we held a strategic product launch conference with the theme of AI Help For, and launched a series of AI products. Our products are equipped with sensors. Under the value of AI algorithm, to collect data on the health of families and people. At the same time, we focus on resources and create innovative products that are differentiated and top-of-the-line in the industry. For example, last year, we launched a series of high-end water purifiers, including Super 1000 and 1200 gallons, and Wayson 1200 gallons, to achieve a huge volume and low waste water ratio. Our water purification team has spent more than three years of research, combining hundreds of billions of family water quality data, We have been continuously studying and conducting technical support in the family water supply area, and have accumulated a large number of technical innovations and patents. As of the end of the first quarter, we have obtained more than 700 patents related to water supply. Part of the technology and patent has been awarded to the China Patent Excellence Award, which is awarded to the National Wealth Authority and the World Wealth Organization. At the same time, it has been awarded to the recognition of power institutions such as the China Wealth Association. Our new business, the small machine business, has also developed rapidly, especially in the expansion of overseas markets. It has become one of the driving forces of our growth in the first quarter. Since the fourth quarter of last year, we have started to set up the development of small machines in overseas markets, which has quickly covered We also strive to enrich and improve IoT family solution solutions, provide increased services and content, including software upgrades, maintenance and maintenance, resale benefits, and entertainment and video content, and use our offline channels to enhance service system construction. We believe that offline experience and landing capabilities are key parts of the IoT home industry. Therefore, we have been actively promoting the offline Chinese service model one floor by one floor this year. We are very happy to announce that We will continue to build our growth strategy in three aspects. Through 5G, AI, and IoT product strategies, Thank you. Thank you, Mr. Chen. I will quickly translate our founder's remarks before discussing our financial performance for the first quarter of 2021. Hello, everyone.