Viomi Technology Co., Ltd

Hello, ladies and gentlemen. Thank you for standing by for Valmy Technology Co-Limited Earnings Conference Call for the second quarter of 2021. 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 IR Director of the company. Please go ahead, Cecilia.

Thank you, operator. Hello, everyone, and welcome to Valmy Technology Co-Limited Earnings Conference Call for the second quarter of 2021. As a reminder, this conference is being recorded. The county's financial and operating results were issued in a press release earlier today and are posted online. You can download the earnings press release and sign up for the county's email distribution list by visiting the IAS section of the county's website at ias.wellman.com. Participating in today's call is Mr. Xiaoping Chen, the Founder Chairman of the Board of Directors and Chief Executive Officer, and Mr. Weiqiang Pai, the Head of our Finance Department. Chemist management will begin with prepared remarks and a 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 U.S. Public Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Chemist Act results may be materially different from the views expressed today. For the information regarding these and other risks and uncertainties, is included in the Committee's annual report on Form 20-F and other filings as followed with the U.S. SEC. The Committee doesn't assume any obligation to update any forward-looking statements except as required by law. Please also note, wellness earnings press release and the conference call also include discussions of inaudited gap financial information as well as inaudited non-gap financial measures. Wellness press release contains a reconciliation At the end, audited non-GAAP measures to the end-audited most directly comparable GAAP 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.

In the second quarter, the sales income of 16.6 billion RMB increased by 21.2%. In the context of non-GAAP, it is 45% of the net profit growth of ordinary shareholders, and the profit-loss level has improved significantly. After several years of hard work and exploration, we have built a set of 5G LTE chip modules, including technical architecture, AI algorithms, and 5G LTE integrated 5G LTE family intelligent technical architecture that integrates 5G LTE. It promotes the landing of our one-stop all-in-one intelligent solution. Our one-stop all-in-one intelligent solution provides users with intelligent home, intelligent home and software services that cover all scenarios, from single-use intelligence to all-in-one scenarios. and form a whole set of ecosystem systems that cover the needs of life, to build a complete, fully intelligent experience for users. Then we combine the tone of our products with a younger user group. In the second quarter, we officially confirmed the launch of a brand positioning of a new technology brand. For this positioning, to optimize our hardware products and enhance brand sales, deepen and deepen our diversified sales channels. First of all, in the product part, We surrounded the AI HelpForce product strategy to strengthen the product's intelligent innovation by expanding the application, cross-border and cross-product technology fusion. In April, we launched a series of AI products at the strategic product conference, including the mineral-based water purifier ERX, the full wind air conditioner SPAX, the high-end sweeper unit Alpha 2 Plus, and the iBoard intelligent toilet that can monitor the human health index, etc. We recently launched the SuperPort series of 1,200 gallons of large-capacity water purifiers, X2, X1's AI oil and gas-based new products are being used in technology and AI applications to facilitate and optimize the consumer trend of the industry. During the 618 period, many of our new products, including Alpha 2 Pro, such as a vacuum cleaner, UV-resistant air conditioner Navi, as well as the new product of the vacuum cleaner NEO, have become the backbone of the industry when it comes to platform sales. In terms of sales channels, we have also proposed a channel strategy for large business and large electricity in the year. in each city to build a large-scale experience store, and to upgrade the design of the store, to carry the brand image of technology and brand. At the same time, these big stores also provide users with better results and scenario experience services. We have set up more than 200 to 300 CS and VS experience stores in more than 20 provinces across the country to provide users with experience, sales, If we calculate, the whole country will have more than 10 million sets in a year. So if we follow the trend of the whole thing, Then we also signed a national top-notch celebrity endorsement to endorse our brand and product. Then expand the impact of the brand in young people's minds. Then we recently also with We are also working with three major aviation companies to accurately target our high-end consumer groups. In the second half of the year, we are also planning to hold appropriate advertising activities on TV media. In addition, we are also working with a number of companies such as Douyin, Xiaowongshu, etc. India, Thailand, and Northern Europe. As I shared with you in the last press conference, our products were officially on the market in Amazon in the U.S. last week. It marked the official entry into the U.S. market and the North American market. In the second half of the year, we will continue to expand the market in the North American and other regions to enrich our sales channels and gradually develop the self-sufficiency model. We also have a series of new small businesses that are gradually emerging in the overseas market, and the function of moving the self-sufficiency UV filter is differentiated. We believe that in the future, the entire industry will benefit from the intelligent transformation and development of the intelligent furniture industry. The first is that the younger consumer groups in China, especially those after the 90s, will become the mainstream consumer groups in society. Their income is growing rapidly. According to the results of the third stage of research, the people after the 90s are more inclined to technology and intelligent products. The ratio of using all-house intelligent products will be higher. The second is that new energy vehicles have achieved rapid development in the past two or three years. It will gradually bring intelligentization into the minds of consumers. At the same time, multi-industrial industries will quickly enter the era of intelligentization, which will drive the development of intelligent furniture and improve the acceptance of consumers. The third is that China's 5G infrastructure has been developing at a high speed in the past two years. According to a plan issued by the Ministry of Industry, by 2023, the number of personal users of 5G will exceed 40% and the number of users of 5G's logistics network will be We will continue to carry out AI innovation, big business, big electricity, many strategies, technology brand positioning, development of hard technology industry, and strive to become the pioneer of a full-fledged smart solution. As China's smart home Thank you, Mr. Chen. I will quickly translate a few remarks before discussing financial performance for the second quarter of this year. Hello, everyone. Thanks for joining our second quarter 2021 earnings conference call. During the second quarter, we optimized the product portfolio for certain categories.