Viomi Technology Co., Ltd

Hello, ladies and gentlemen. Thank you for standing by for Wyoming Technology Company Limited's earnings conference call for the fourth quarter and full year 2022. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I would now like to turn the call over to your host, Ms. Claire Xie, the IR Director of the company. Please go ahead, Claire.

Hello, everyone, and thank you, Roku, and welcome to Wyoming Technology Co-Limits Earnings Conference Call for the fourth quarter and the full year 2022. As a reminder, this conference is being recorded. The company's financial operating results were issued in a press release earlier today and are posted online. You can download the earnings price release and sign up for the company's email distribution list by visiting the IR section of the company's website at ir.viomi.com. Participating in today's call is Mr. Chen Xiaoping, the founder, chairman of the board of directors, and chief executive officer. The company's management will begin with prepared remarks and the call will conclude with a Q&A session. Before we continue, Please note that today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities 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 view expressed today. Further information regarding this and other risks and uncertainties is included in the company's annual report on Form 20S. and other filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required by law. Please also note that Wellman's earnings trust release and this conference call include discussion of an audited GAAP financial information, as well as an audited non-GAAP financial measures. In addition, Wellmate's price release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I will now turn the call over to our founder and CEO, Mr. Chen Xiaoping. Mr. Chen will deliver his remarks in Chinese, followed immediately by an English translation. Mr. Chen, please go ahead. 大家好,感谢大家来参加我们2022第四季度和全年的业绩电话会。

In the fourth quarter, due to the unfavorable impact of the epidemic and the macroeconomic crisis, our income has also declined. In the past year, due to the double impact of external environment and internal strategy adjustment, our overall scale has experienced a greater impact. However, we see that our net profit level in the fourth quarter rose by 3.2%. The product structure has improved to a certain extent. Although there was a seasonal fluctuation in the net profit last year, it is still stable compared to 2021. In the fourth quarter, We will continue to reduce capital and control fees, reduce organizational structure, and improve operating efficiency. We always strive to bring better value to consumers, and better solution for all-round intelligence, and continue to enhance the intelligent experience of products. In October, we held an online autumn software launch, focusing on software upgrade, from customer health, energy-saving, environmental-saving, initiative intelligence, personal interaction, and four-dimensional product delivery. From the software end, we will introduce to further enhance the cloud-based smart solution. In November, HomeMap App's cloud-based smart solution platform was awarded by the Science and Technology Department of the National Science and Technology Department of the Ministry of Science and Technology. The cloud-based smart solution was fully recognized. In the past few months, we have launched a series of AI products, such as the SuperEar Max remote control using AI. The specialized technology used in the product has also been used We have launched a super-thin, all-round master 3 cloud AI washing machine, and a 1,200-gallon master pro all-round AI water purifier that is as hot as a washing machine. We also have a super-wide-angle, online, visible cat's eye Super 2 AI smart meter and other new products. These short-term and hard-to-reach results further prove that Yunmi's business concept always focuses on product as the core of technology innovation and self-reliance to provide a useful and useful all-round intelligence experience for consumers. In addition, we continue to work hard on technology innovation and human resources training, and continue to optimize the all-round intelligence solution of Yizhan City to provide strong backing. After the first half of this year, we set up a doctoral workstation. In October, we successfully completed the doctoral post-workstation. In the future, Yunmi will continue to work together with high-efficiency and professional institutions to train top-level people in the industry, and deploy all-round smart projects to promote all-round smart industry development. In November, Yunmi re-entered the list of all-round smart industries in the list of 2020-2025 national asset rights demonstration companies announced by the National Asset Authority in 2020. As of the end of the fourth quarter, we have applied for more than 6,100 patents worldwide. With a patent of 3,800 pieces, we have applied for 8 patents, more than 2,500 pieces. These are the recognition of the cloud technology innovation capability and the recognition of our comprehensive strength. Although the four seasons have been affected by the adjustment of defense policy and large-scale changes, the progress of our construction is slow. But in the offline market, the transition has reached a high level of innovation. CSDN in Yunnan, Shenzhen, Hunan, etc. has reached more than 100,000 or even more than 400,000 transition orders. Yunmi's full-fledged smart solution is constantly occupying the minds of consumers. In the fourth quarter, we will successfully push products such as air conditioners, fridges, and washing machines to the overseas market. Next, the new export category will become a growth point for Yunmi's overseas channels. As the epidemic further loosens, China's social activities are gradually recovering. There is still a lot of uncertainty in the future. We will continue to adhere to a stable development strategy to improve our business in the following three aspects. Thank you.