Viomi Technology Co., Ltd

Hello, ladies and gentlemen. Thank you for standing by for Wyoming Technology Company Limited's earnings conference call for the second half and full year of 2023. 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. Claire Gee, the IR Director of the company. Please go ahead, Claire.

Thank you. Hello, everyone, and welcome to Wellme Technology Company Limited's earnings conference call for the second half and the full year of 2023. As a reminder, this conference is being recorded. The company's financial and operating results were issued in a price 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. Participants in today's call are Mr. Xiaoping Chen, the founder, chairman of the board of directors, and the chief executive officer, and Mr. Sam Yang, the head of the capital market and strategy department. The company's management will begin with prepared remarks and will continue with the 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 views expressed today. Further information regarding this and other risks and uncertainties is included in the company's annual report on Form 20F and other filings upheld with the U.S. Securities and Exchange Commission. and the company does not assume any obligation to update any forward-looking statements except as required by law. Please also note that Wellmate's earnings conference press release and this conference call includes discussions of unaudited gap financial information as well as unaudited non-gap financial measures. In addition, Wellmate's press release contains a reconciliation of the unaudited non-gap measures to annotate 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 an English translation. Mr. Chen, please go ahead.

Hello, everyone. I am Chen Xiaoping. Thank you all for attending our full-year phone call in the second half of 2023. In 2023, we will continue to stick to the same strategy. The company's product structure has been further optimized, and the results of the supply and demand have been significantly improved. All year round, the volume of products imported and imported has increased from 32.2% in 2022 to 36.8%. At the same time, we have been able to continue to reduce the cost and increase the efficiency of the supply and demand. In the second half of the year, the annual profit rate rose by 22% in the same period as last year, and the supply and demand cost decreased by 33.4% in the same period. The loss rate has been greatly reduced to 2.7%. In the past year, the company's positive challenge has made some progress in many aspects. First, strengthen the strategic cooperation of large customers and sign a three-year strategic cooperation agreement with Xiaomi. Second, integrate the company's business and upgrade Jinshui into an independent strategic business department. In order to improve Jinshui's production and sales capacity, the whole industry chain of Jinshui is actively deployed to build two major business blocks of Jinshui and IOT at home. Third, enhance IoT at home capability construction, rich, comprehensive and intelligent solution, embrace uncertainty, and accept the challenges of the masses. Fourth, greatly enhance the impact of the corn brand. After signing the contract in 1995, the new generation of actors, Tian Xiwei, as the global brand spokesperson. Fifth, in the channel side, expand the network and channel sales, and continue to expand the overseas market. Sixth, in the past three years, the newly built corn technologist officially invested in use in November 2023, and opened the new era of corn. As the leader of the water industry, we have a leading industrial system in the industry, and we have more than 1,300 applications for patents in advanced filter technology and waste production technology in the industry. At the same time, our water industry department has established an independent, complete design, development, production, and marketing organization, attracting a number of top-of-the-line market marketing, management, product development, and quality management people to join and fully enhance the market competitiveness of water products. In the industry chain of water, We focus on building the world's leading wastewater super factory, building a solid industrial foundation and industry barrier. First, to establish a high-level industrial storage capacity. At YuMi Technology, we focus on the assembly, assembly, testing, storage, and logistics of the wastewater products to the same building, the same area, effectively reducing the cost of production logistics and increasing the efficiency of production. Second, to have the top-level industrial automated wastewater production line. In the production part of the key parts, we build a black-light factory. Combining the smart collection and analysis of the production data of the entire process, we will continue to improve the production process and the advanced production process. Third, we will further use the support of infrastructure facilities to deepen the investment in the technology industry, strengthen the self-reliance, asset and self-sufficiency of core components, and provide insurance for high-quality water products for users. In the direction of ALT Home business, we insist on the concept of AI Hub4, and pay more attention to family health monitoring and protection. At the Spring Festival Psychological Announcement on March 12, At the same time, with the need for improved living conditions in the stock market, we have further upgraded the full-fledged smart solution program, launched a space suite worth millions of dollars, providing consumers with a more distinctive taste, more personalized and more intelligent product experience. At the same time, we also widened the network and global channels, while improving the domestic channels, focusing on promoting the breakthrough of the overseas market and gradually expanding the product category supplied to the overseas market. to bring new growth to the overseas business and enhance the ability to accomplish overseas business. In addition, we have established strategic cooperation with multiple countries in the local leading channels to use their local resources to further improve our sales and service capabilities overseas, and promote the ongoing growth of overseas business in the future. Looking forward to 2024, the global market has huge potential and opportunities. We will continue to improve business from four aspects. First, we insist on providing a solution for healthy water, allowing users to make many choices in terms of water quality and texture. Second, strengthen the relationship with strategic partners to further create a global technology super factory and improve the industry chain. Third, further expand the channel and expand the overseas market, further strengthen the process of globalization of the profit-making brand. Finally, we will continue to improve the efficiency of the system, the balance of science, the growth of scale, the optimization of organization, and the growth of efficiency and financial improvement. Help the company further restore the profit-making ability, achieve sustainable and sustainable development, and bring long-term value to users and shareholders. Thank you.