Tuya Inc.

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to TUYA's Inc. Fourth Quarter and Full Year 2022 Earnings Conference Call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to turn the call over to the first speaker today, Mr. Reg Chai, Investor Relations Director of Tuya. Please go ahead, sir.

Thank you. Hello, everyone. Welcome to our fourth quarter 2022 earnings call. Joining us today are founder and CEO of Tuya, Mr. Jerry Wong, and our CFO, Ms. Jessie Liu. The first quarter 2022 financial results and webcasts of this conference call are available at ir.tuya.com. A replay of this call will also be available on our website in a few hours. Before we continue, I refer you to our Safe Harbor Statement in our earnings press release, which applies to this call as we will make four looking statements. With that, I will now turn the call to our founder and CEO, Mr. Jerry Wang. Jerry will deliver his remarks in Chinese, which will be followed by corresponding English translations.

Hello, everyone. Thank you for attending the 2020 Q4 conference. Hello, everyone. Thank you for joining our first quarter and the full year 2022 earnings call. Since the start of the 2020 Q4, we have experienced seven years of constant growth. Due to the harsh cycle of disbursement and the negative effects of mid-term consumption, the first income has been compared to the previous year. Our total income in 2022 is about US$2.1 billion, which is about 30% lower than in 2021. In 2022, our total income in autumn is about US$45 million, which is about 40% lower than in 2021. According to our observation, there is still a shortage of consumption. In general, the industry's indifference to the company's business execution, internal efficiency management, team construction, etc. has raised higher requirements. We have implemented a series of price-effective measures. covering business, operations, personnel, and other aspects. At the same time, while maintaining about 3% of the net profit, Non-GAAP's net loss from about $1.1 billion in 2021 is the same as $770 million in 2019-2022. In the fourth quarter, Non-GAAP's net loss is about $520 million, while the previous year's net loss of about $310 million is the same as $83 million. Our operating cash flow in 2022 is about $70 million, which is about $1.26 billion in revenue in 2021, which is about 40% less. In 2020, Q4's net revenue was only more than $100,000. These improvements show the firm strength in the industry and the long-term planning and confidence of the IoT industry in the future. In 2021, the company In 2022, we experienced our first year of revenue decline due to inventory stocking as consumer product and market turned down after seven years of hyper-growth since inception.