Viomi Technology Co., Ltd

Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Co. Limited Earnings Conference Call for the first half of 2024. 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 Gee, the IR Director of the company. Please go ahead, Claire.

Hello, everyone, and welcome to Viomi's Technology Co-Limited Earnings Conference Call for the first half of 2024. As a reminder, this conference is being recorded. The company's financial and operating results were issued in the press release earlier today and are posted online. You can download the earnings press release and sign up for the company's email distribution list by visiting the IR section of the company's website at ir.veone.com. Participating in today's call are Mr. Xiaoping Chen, the founder, chairman of the board of directors, and chief executive officer, and Mr. Sam Yang, the head of our capital and strategy department. The company's management will bring with prepared remarks, and the call will conclude with a Q&A session. Before we continue, let's note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's annual 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 20-X. and other filings are filed with the U.S. Securities and Exchange Commission. The companies do not assume any obligation to update any forward-looking statements except as required by law. Please also note that Wellmate's earnings press release and this conference call includes discussions of unauthentic debt financial information as well as unauthentic non-debt financial measures. In addition, Wellmate's press release contains a reconciliation of the unobstructed non-GAAP measures to the unobstructed 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 an English translation. Mr. Chen, please go ahead.

Hello, everyone. Thank you for attending our phone call in the first half of 2024. In the first half of 2024, We have strongly implemented the focus strategy, insisting on high-quality development, and continuing to improve the performance of the business. The business fundamentals have been turned around fundamentally. The specific performance is that we have deeply focused on the advantageous category, and the revenue scale of the core technology category continues to increase. At the same time, the growth is 13%, further optimizing the product structure, and then the overall trend continues to improve, reaching 24.8%, which is 22% compared to the last half of last year. We will continue to reduce our operating costs by 19.2%. The net profit will be 5.6 million RMB. The non-GAF net profit will be 1.6 million RMB. There will be no losses at all. At the same time, we will maintain a good cash flow. Until June 30, 2024, the cash flow will be 9.14 billion RMB. On July 19, we announced a major business reorganization. It is expected to be completed by the end of August. This reorganization reflects our commitment In the first half of 2024, the operating revenue of the business continued to exceed RMB800 million, and the corresponding operating profit exceeded RMB50 million. The resumption this time will show a small drop in size in the short term, but will further expand the company's operating capacity, helping to achieve long-term health development. A.I. for Bitwater aims to use A.I. technology to provide better family water management solutions for global users. Using our professional experience in A.I. technology, smart hardware and software development, we redefine home water management to create a unique water purifier and a new commercial model with new materials. Through A.I. technology, we achieve long-term real-time monitoring of water quality and use conditions. Thank you. Yunmi's smart water supply solution has already reached nearly 5.9 million domestic users. In terms of product innovation, in the past ten years, Yunmi has continued to lead the industry to breakthrough technology, first to create a water purifier with a large volume, provide fresh water to users, and upgrade the volume to 2,000 gallons, so that the water can be used for cooking, washing vegetables, and other use scenarios, and improve the quality of life. The water quality can be adjusted based on the technology of the power generator, From providing pure water to providing natural mineral water, we continue to explore the road to a healthy life. In March 2024, we launched the Yunmi Kunlun Mineral Water AI Mineral Water. The innovative green mineral mining technology is a form of mineral that can be used for long-term use. There is a component in the water that is basically the same as natural mineral water, so that users can drink fresh mineral water at home. You have a rich supply of water supply products, from single filter to urgent heat, extreme cold, ice and other functions, to satisfy the global drought-prone drinking water system, from kitchen drinking water scenarios to living room scenarios, and to cover the whole house with extreme cold water solution. We have applied for more than 1,600 patents to attract global top management, marketing, product development and quality control talents to join. After continuous adjustment and focus, we have achieved certain results in sales, and the brand power has been constantly increasing. We are using a decentralized product matching channel to further promote the mineral water generation and increase market share. In July this year, Minmin Water ranked third in the domestic mainstream media platform industry. According to the new product, it is also ranked first in the world brand laboratory. In the recently announced 2024 Chinese brand 500 strong list, the brand value of 0.153 billion RMB is ranked 439th. After the same group, the company's vision is redefined as Global Water, as a professional water technology company, we strive to provide fresh and healthy water to all users. We continue to focus on making good products and solving cases to increase the satisfaction of users. First,深化以战略客户的合作,持续发挥金水超级工厂的领先优势,其次,进一步提升云米金水在中国市场的渗透率。 Thank you, Mr. Chen.