Viomi Technology Co., Ltd

Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Company Limited's earnings conference call for the second half and full year of 2024. 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.

Hello, everyone, and welcome to Valme Technology Company Limited's earnings conference call for the second half and the full year 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 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 investment department. 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 state public 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 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 failings as felt 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 well-meant earnings press release and this conference call include discussion of unaudited gap financial information as well as unaudited non-gap financial measures. In addition, well-meant press release contains a reconciliation of the unaudited non-gap measures to the unaudited 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.

大家好,欢迎来参加我们2024年下半年和全年的业绩电话会。 我们在2024年的8月31号完成了公司的重大的业务重组, 那么标志着公司做一个重大的这么一个转折点。 In the future, we will focus on core business, in-water business. This change in strategy will drive our performance in 2024. In the whole year of 2024, Yunmi achieved a total income of 2.2 billion RMB. The operating profit reached 1.5 billion RMB, exceeding the previous company's expectations. Among them, the scale of water business increased by 39%. While achieving the scale growth, Our credit efficiency has also been improved, achieving a net profit of 62.34 million yuan. Successfully turning the loss level in the past two years, it is a sign that Yunmi is reintroducing high-quality development. With the constant improvement of public health and drinking water awareness, as well as a series of policy innovations and technological innovations, the water supply industry products continue to upgrade, and the water supply market is expanding. In the past ten years, the water supply has been deepening, and we have always tried to redefine the water supply system with the innovation of products and the use of AI technology. Our product policy includes a solution from the end of the RO series to the complete softening and purification of the house. and fully cover the needs of the users. Among them, the Modern RO series is mainly based on semi-finished business products. The products not only have multi-functional functions such as natural mineral water, hot, cold, and ice, but also support the actual monitoring of water quality and use situation in the long term. The initiative to change the system filter and the purchase of one app will bring extreme convenience to the user. At the same time, the precise water-cooled self-cleaning technology can not only greatly extend the use life of filters, but also reduce the cost of use. These products not only cover the needs of the whole family and the whole scene, but also meet the needs of diversification in different countries and regions around the world, bringing users a reliable and efficient use experience. Through the reorganization of this time, we quickly built the organization, and improved the efficiency of the business. Our full efforts are focused on the water supply industry, and fully play the core advantage to promote sustainable growth. In terms of organizational architecture, we have established . . We insist on a decentralized technology route to promote the healthy trend of mineral water. In the first half of 2024, we launched a new product, the Kunlun Mineral Water Concentrator AI. The product integrates advanced AI technology to optimize the process of purifying water. Through the innovation of AI filter mineralization technology, the beneficial ingredients can be used for a long-term effect. This breakthrough technology ensures that the beneficial ingredients in the water are basically the same as natural mineral water, allowing users to drink fresh mineral water at home. At the end of the double 11 shopping festival in 2024, our AI system will be divided into the 4th, 5th, and 9th brands on TikTok, Pinduoduo, and Tianmao platforms, and the impact of the brands will continue to increase. At the same time, in order to expand the North American market, we also launched the除夏的凹清水性Vortex series to pursue convenient and efficient user design. The Vortex series supports independent installation and wide range of products. According to the 805 version, the installation process is easy and smooth. It only takes 20 minutes to half an hour to be fully completed. The V-series's independent DIY filter design provides users with savings. The 3-to-1 pure filter pen is also equipped with a 4-year long-term filter configuration, which can greatly improve the filter effect and significantly reduce water waste resources. It also reduces the cost of frequently replacing filters for users. . . I'm a you need to say hi why should I go get my sorry I still have a test to see if you see that they go yeah I'm a symptoms of a show so that you would have got a little bit I mean she should have a show what I did you put a boom boom that can show the shot the way woman died in the end of the year don't see how does how I'm not sure what I can't make what I'm not going to ask you about that yes I don't know what I was on what I don't think it's a key to define so though and I don't know how he won't go on when Taiwan Taiwan Taiwan and joint marketing consensus to promote a healthy water concept. In March this year, we also joined hands with a Malaysian home electronics manufacturer to develop and promote the market in the field of water supply around corn. We will do our best to promote the product in the local market. In terms of manufacturing and research, Corn's water supply super factory is the most complete and automated industry chain in the industry. to achieve the full self-knowledge of core components, to fully play out the scale of efficiency, and to further enhance the creativity. We have also built our own new technologies and products, the reliable two laboratories, to meet the testing standards of different countries and regions around the world, and to provide our guarantee for our global market expansion. At the same time, as of now, our global patent application has reached 1,800, and is one of the leading industries. In the future, in the future, in the future, in the future, in the future, in the future, in the future, Taiwan 2025 We For the company It is a brand new starting point and true We will work hard from four aspects To achieve our Global Water Such a strategic vision So constantly for global users China China China The third is to continuously improve the competitiveness of cloud products, continue to develop product investment, and lead product innovation. So for global users to improve a more intelligent, healthier, and a new AI water control solution. The fourth is to continue to strengthen and strategic customer cooperation, fully play into the scale advantage of super factories, and expand our scale efficiency to achieve a significant growth in scale and profit. So it is expected that in 2025, it will bring a more objective return for shareholders and users. Thank you.