Tuya Inc (TUYA) 2022 Q4 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Tuya Inc. Fourth Quarter and Full Year 2022 Earnings Conference Call.

女士們先生們，早上好，晚上好。感謝您的支持，歡迎來到 Tuya Inc. 2022 年第四季度和全年收益電話會議。

(Operator Instructions) I would now like to turn the call over to the first speaker today, Mr. Reg Chai, Investor Relations Director of Tuya.

（操作員說明）現在我想將電話轉給今天的第一位發言人，塗鴉投資者關係總監Reg Chai先生。

Please go ahead, sir.

請繼續，先生。

Thank you. Hello, everyone. Welcome to our fourth quarter 2022 earnings call.

謝謝。大家好。歡迎來到我們的 2022 年第四季度財報電話會議。

Joining us today are founder and CEO of Tuya, Mr. Jerry Wang; and our CFO, Ms. Jessie Liu.

今天加入我們的是塗鴉創始人兼首席執行官王杰先生；以及我們的首席財務官 Jessie Liu 女士。

The first quarter 2022 financial results and webcast 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 forward-looking statements.

2022 年第一季度財務業績和本次電話會議的網絡直播可在 ir.tuya.com 獲取。幾個小時後，我們的網站上也將提供此次通話的重播。在我們繼續之前，我建議您參閱我們的收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將發表前瞻性聲明。

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 translation.

有了這個，我現在將把電話轉給我們的創始人兼首席執行官 Jerry Wang 先生。 Jerry 將用中文發表講話，隨後將進行相應的英文翻譯。

[Interpreted] Hello, everyone. Thank you for joining our fourth quarter and full year 2022 earnings call.

【解讀】大家好。感謝您加入我們的第四季度和 2022 年全年財報電話會議。

In 2022, we experienced our first year of revenue decline due to inventory destocking as consumer product end market turned down after 7 years of hyper growth since inception. Our 2022 full year revenue decreased by just over 30% to $210 million. In the fourth quarter, end market consumption was sluggish, causing revenue to decrease by about 40% year-over-year to $45 million.

2022 年，我們經歷了自成立以來 7 年的高速增長後，由於消費品終端市場下滑，庫存去庫存導致收入下降的第一年。我們 2022 年的全年收入下降了 30% 以上，達到 2.1 億美元。第四季度，終端市場消費低迷，導致收入同比下降約40%至4500萬美元。

Notably, industry headwinds are placing greater demands [on our] business execution, operational efficiency management and team development. We responded to macroeconomic adversity with a series of cost control and efficiency improvement measures. These measures span from product offerings to operating procedures, to efficiency improvements, enabling us to sustain the 43% gross margin while narrowing the non-GAAP net loss by 29% year-over-year from $109 million in 2021 to $77 million in 2022. Additionally, our Q4 non-GAAP net loss narrowed by 83% year-over-year to $5 million from $31 million.

值得注意的是，行業逆風對 [我們的] 業務執行、運營效率管理和團隊發展提出了更高的要求。我們通過一系列降本增效舉措應對宏觀經濟逆境。這些措施涵蓋從產品供應到運營程序，再到效率改進，使我們能夠維持 43% 的毛利率，同時將非 GAAP 淨虧損同比縮小 29%，從 2021 年的 1.09 億美元降至 2022 年的 7700 萬美元。此外，我們第四季度的非美國通用會計準則淨虧損從 3100 萬美元同比收窄 83% 至 500 萬美元。

Net cash used in operating activities was about $140,000 in Q4; and $70 million in full year 2022, which was down 44% compared to the $126 million in 2021. These improvements reflect our determination and confidence in the long-term growth prospects of the industry. We have also repurchased a total of over $53 million shares in 2021 and then repurchased a total of over $59 million shares in 2022.

第四季度用於經營活動的淨現金約為 140,000 美元； 2022 年全年為 7000 萬美元，與 2021 年的 1.26 億美元相比下降了 44%。這些改進反映了我們對行業長期增長前景的決心和信心。我們還在 2021 年回購了總額超過 5300 萬美元的股票，然後在 2022 年回購了總額超過 5900 萬美元的股票。

In 2022, we sustained our commitment to our customer-centric approach and implemented a strategy to better focus on large customers. Notably, we formed our sales triangle system, a back-to-back customer acquisition and customer service system that combines our efforts in sales, [solution archetypes] and customer deliveries, enabling us to provide targeted services to customers with diverse needs and allocate customers more support resources more efficiently.

2022 年，我們繼續致力於以客戶為中心的方法，並實施了更好地關注大客戶的戰略。值得注意的是，我們形成了我們的銷售三角系統，一個背靠背的客戶獲取和客戶服務系統，結合了我們在銷售、[解決方案原型]和客戶交付方面的努力，使我們能夠為具有不同需求的客戶提供有針對性的服務並分配客戶更多的支持資源更有效。

As China started lifting COVID control measures, our management team and major department leaders quickly began visiting customers and participating exhibitions worldwide. During the year, we acquired more than 1,100 new brand customers around the [global], including notable customers such as Honeywell; [Smartwares] from the Netherlands; Kocom from South Korea, [Ohad] from India; [Polytron], a home appliance brand under Indonesia's [Tier 1 foundation]; and many more. Compared to the acquisition of over 2,000 brand customers in 2021, the 2022 customer wins reflected our recalibrated focus on the [qualify] of new customers in our customer acquisition efforts. Our penetration rate is relatively good [among a limited number of] large-scale global brand customers. We intend to partner even more with brands that is large today or have high long-term growth potential. We will leverage our technology leadership and our unique integrated upstream and downstream ecosystem to develop win-win relationships with customers based on their scale and influence.

隨著中國開始解除 COVID 控制措施，我們的管理團隊和主要部門領導迅速開始在全球拜訪客戶和參加展覽。年內，我們在 [全球] 獲得了 1,100 多家新品牌客戶，其中包括霍尼韋爾等知名客戶； [Smartwares] 來自荷蘭；來自韓國的Kocom，來自印度的[Ohad]；印尼[Tier 1 foundation]旗下家電品牌[Polytron]；還有很多。與 2021 年獲得 2,000 多個品牌客戶相比，2022 年贏得的客戶反映了我們在客戶獲取工作中重新調整了對新客戶 [qualify] 的關注。我們的滲透率在[數量有限的]大型全球品牌客戶中相對較好。我們打算與當今規模較大或具有較高長期增長潛力的品牌進行更多合作。我們將利用我們的技術領先地位和我們獨特的上下游一體化生態系統，根據客戶的規模和影響力與客戶發展雙贏關係。

We made tremendous effort to reduce costs and carry out efficiency management across many functions such as refining R&D project, controlling cloud costs, managing market expenses and lease acquisitions, travel and entertainment expenses, inventory and fixed assets to improve our operating efficiency.

我們在精煉研發項目、控制云成本、管理市場費用和租賃收購、差旅和娛樂費用、庫存和固定資產等多個職能部門大力降低成本和進行效率管理，以提高我們的運營效率。

Additionally, in early July 2022, we completed our dual primary listing in Hong Kong, which further complemented our international business strategy. This move has strengthened our position in the international capital market and has also helped to provide better protection for our shareholders.

此外，2022 年 7 月初，我們完成了在香港的雙重主要上市，進一步完善了我們的國際業務戰略。此舉加強了我們在國際資本市場的地位，也有助於為我們的股東提供更好的保護。

To better understand our business model, competitive advantages and competitive landscape, it is essential to have a comprehensive understanding of the events and [trends] shaping our sector since the COVID outbreak in 2020. Therefore, I will briefly review the past few years and then share our outlook.

為了更好地了解我們的商業模式、競爭優勢和競爭格局，有必要全面了解自 2020 年 COVID 爆發以來塑造我們行業的事件和[趨勢]。因此，我將簡要回顧過去幾年，然後分享我們的觀點。

During 2019 to 2021, by leveraging our strong software capability and robust platform-based delivery experience, we became the largest IoT development platform in the industry and benefited from the strong industry tailwinds. Our total revenue achieved robust growth during these 3 years, tripling from $100 million in 2019 to $300 million in 2021. In the second half of 2021, a supply-demand mismatch emerged in the consumer electronics sector due to the COVID-induced global inflation, rising shipping costs and supply chain disruptions. This mismatch had a significant impact on business plans across the value chain and was further magnified by global events such as the Russian-Ukraine conflict and energy shortages in 2022. Downstream inventory piled up throughout the industry, causing a high cycle of destocking under high inflation. According to industry consultant CIC, global shipments of consumer electronics IoT products such as smartphone products is expected to have decreased by 7% in 2022 versus 2021.

在 2019 年至 2021 年期間，憑藉我們強大的軟件能力和強大的基於平台的交付經驗，我們成為業內最大的物聯網開發平台，並受益於強勁的行業順風。我們的總收入在這 3 年實現了強勁增長，從 2019 年的 1 億美元增長到 2021 年的 3 億美元。2021 年下半年，由於 COVID 引發的全球通貨膨脹，消費電子行業出現供需不匹配，運輸成本上升和供應鏈中斷。這種不匹配對整個價值鏈的商業計劃產生了重大影響，並在2022年被俄烏衝突和能源短缺等全球事件進一步放大。下游庫存在整個行業堆積，導致高通脹下的去庫存高週期.據行業顧問CIC稱，預計2022年智能手機產品等消費電子物聯網產品的全球出貨量將比2021年下降7%。

Looking at upstream chip makers, to downstream brands and retail channels, everyone is struggling and adjusting. Our customers are increasingly conservative, resulting in low visibility in near-term demand trends. In the Q4 holiday sales season, Mastercard data showed that United States holiday sales of electronics products declined by 5.3% year-over-year, a significant weakening versus the 16.2% gain in the previous year. After the end of 2022, we had discussions with many of our core brand customers and channel partners, who told us that the retail market in Q4 remained very weak. Many brands adopted cautious sales strategies in the fourth quarter instead of aggressive promotions during the holiday sale season, as they may need to offer more discounts to stimulate consumer demand, but this may only be done in limited incremental purchases. At the same time, every discount represents a tangible loss to them. In this context, we need to provide customers with more valuable and cost-effective products and services based on our product augmentation strategy, which involves the development -- cost-effective products and services. Based on our product augmentation strategies; the development and release of more valuable, enhanced and integrated software and hardware product solutions, our overall average selling price of IoT PaaS has increased by about 11% year-over-year in 2022.

從上游芯片廠商，到下游品牌商和零售渠道，大家都在掙扎和調整。我們的客戶越來越保守，導致近期需求趨勢的可見度較低。在第四季度假日銷售季，萬事達卡數據顯示，美國電子產品假日銷售額同比下降 5.3%，與上年 16.2% 的漲幅相比大幅下滑。 2022 年結束後，我們與許多核心品牌客戶和渠道合作夥伴進行了討論，他們告訴我們，第四季度的零售市場仍然非常疲軟。許多品牌在第四季度採取了謹慎的銷售策略，而不是在假期銷售季積極促銷，因為他們可能需要提供更多折扣來刺激消費者需求，但這可能只是有限的增量購買。同時，每一次折扣對他們來說都是一種有形的損失。在此背景下，我們需要根據我們的產品增強戰略，為客戶提供更有價值、更具成本效益的產品和服務，這涉及開發——具有成本效益的產品和服務。基於我們的產品增強策略；開發和發布更具價值、增強和集成的軟硬件產品解決方案，我們的 IoT PaaS 整體平均售價在 2022 年同比增長了約 11%。

These challenges are leading other IoT players to rethink their positioning and transform their strategies. Technology giants such as Google, SAP and IBM are reported to be shutting down their IoT services in 2023, while Ericsson may sell its IoT business in 2023. Furthermore, we have noticed that some private IoT intelligent service provider are thinking to sell their companies due to the financial constraints. In contrast, we had a net cash balance of over $950 million at the end of 2022. As an R&D-driven asset-light technology company, we have no interest-bearing debt, bank loans or any long-term asset capital commitments, reflecting our strong capital position.

這些挑戰促使其他物聯網參與者重新思考他們的定位並轉變他們的戰略。據報導，谷歌、SAP 和 IBM 等科技巨頭將在 2023 年關閉其物聯網服務，而愛立信可能會在 2023 年出售其物聯網業務。此外，我們注意到一些私人物聯網智能服務提供商正在考慮出售其公司，因為到期日到財務限制。相比之下，我們在 2022 年底的淨現金餘額超過 9.5 億美元。作為一家研發驅動的輕資產科技公司，我們沒有帶息債務、銀行貸款或任何長期資產資本承諾，反映我們強大的資本狀況。

Taking a long-term perspective and looking at the industrial landscape, we are confident about the future growth prospects for IoT. According to the comprehensive analysis of the data from Euromonitor, [CIC], BCG and other well-known research institutions, the current penetration rate of IoT is only about 4% to 5%, a very low level, perhaps slightly higher in home and commercial uses. However, due to its daily attributes, although not as frequent or necessary (inaudible), it will certainly continue to iterate and further penetrate people's daily lives as economies recover and society grows. History shows that people always strive to create a better life through continuous competition and innovation. Once the penetration reaches a certain stage, it usually takes a period of time to reach the next [breakthrough] point for qualitative change. [It is our typical example]. In addition, the IoT consumer electronics industry is also extremely fragmented, which is both a challenge and an opportunity to build competitive barriers.

放眼長遠，放眼產業格局，我們對物聯網未來的發展前景充滿信心。根據Euromonitor、[CIC]、BCG等知名研究機構的數據綜合分析，目前物聯網的滲透率只有4%到5%左右，屬於很低的水平，國內可能略高一些。商業用途。然而，由於其日常屬性，雖然沒有那麼頻繁或必要（聽不見），但隨著經濟復甦和社會發展，它肯定會不斷迭代並進一步滲透到人們的日常生活中。歷史表明，人們總是通過不斷的競爭和創新來努力創造更美好的生活。一旦滲透到一定階段，通常需要一段時間才能到達下一個【突破】點，發生質變。 [這是我們的典型例子]。此外，物聯網消費電子行業也極為分散，這對構建競爭壁壘既是挑戰也是機遇。

Against a backdrop of emerging industry opportunities and a more favorable competitive landscape for us, we are primarily focused on 3 areas to navigate the industry cycle in 2023. First, we are committed in our IoT develop platform model. We'll refine our business model to drive the digitalization of the consumer sector, the commercial sector and then the industrial sector. [The sense] of the enterprise services is always ROI. And the fragmentation of IoT sector [convinced the enterprises to fall into a cycle of endless] investment. Therefore, we'll leverage the developed products and platform services to address the energy efficiency challenges in the long-term product categories. And as penetration rates improve, our capabilities to cover multiple categories, use cases and interconnections will become increasingly competitive.

在新興行業機會和對我們更有利的競爭格局的背景下，我們主要專注於 3 個領域來駕馭 2023 年的行業周期。首先，我們致力於我們的物聯網開發平台模型。我們將完善我們的商業模式，以推動消費領域、商業領域和工業領域的數字化。企業服務的【意義】永遠是ROI。而物聯網領域的碎片化[讓企業陷入無休止的投資循環]。因此，我們將利用開發的產品和平台服務來解決長期產品類別中的能源效率挑戰。隨著滲透率的提高，我們覆蓋多個類別、用例和互連的能力將變得越來越有競爭力。

Secondly, we will boost the growth and penetration rate of our key product categories through collaborations with upstream and downstream partners and ecosystem partners, continuous improvements in the organization and performance of our sales triangle system and ongoing technology iterations of these key product categories. For example, in 2022, we assisted a leading North American electrical and lighting customer in reducing the development threshold of Matter. This allowed them to obtain Matter certification faster and solved all of their customer technology issues and high R&D investment challenges [in a single stop].

其次，我們將通過與上下游合作夥伴和生態合作夥伴的合作，持續改進我們的銷售三角體系的組織和績效以及這些重點產品類別的持續技術迭代，來提高我們的重點產品類別的增長和滲透率。例如，2022年，我們協助北美領先的電氣和照明客戶降低了Matter的開發門檻。這使他們能夠更快地獲得 Matter 認證，並 [一站式] 解決了他們所有的客戶技術問題和高研發投資挑戰。

We synchronize the latest solutions and technological iterations from Tuya and CSA [in our customers] and assist them in planning their product road map at an early stage. As a member of the CSA Board of Directors, we are well positioned to collaborate effectively with our upstream and downstream partners to promote and streamline the implementation process of Matter products. Such capabilities enable us to help our customers seize opportunities, which will be a testament to the strength of our Tuya ecosystem.

我們同步塗鴉和CSA的最新解決方案和技術迭代[在我們的客戶]，並協助他們在早期階段規劃他們的產品路線圖。作為 CSA 董事會的成員，我們有能力與我們的上下游合作夥伴進行有效協作，以促進和簡化 Matter 產品的實施過程。這些能力使我們能夠幫助我們的客戶抓住機會，這將證明我們塗鴉生態系統的實力。

The third one is technology innovation centered on our Cube smart private cloud, which complements our existing IoT PaaS product system. Cube enables us to address the need for independent control of IoT platforms for large-scale conglomerates such as our Fortune 500 customers. In addition, Cube also allows customers to access the full range of capabilities of our IoT development platform to build out their IoT business faster with improved sustainabilities and value creation. In the past year, we've won a number of top clients from different regions and industries and completely -- completed several major benchmark projects with Indonesia Telkom and China Gas corporation. This year, Cube will continue to generate long-term collaboration opportunities with large key account global customers.

三是以我們Cube智能私有云為核心的技術創新，與我們現有的物聯網PaaS產品體系相輔相成。 Cube 使我們能夠滿足大型企業集團（例如我們的財富 500 強客戶）獨立控制物聯網平台的需求。此外，Cube 還允許客戶訪問我們物聯網開發平台的全部功能，以更快地建立物聯網業務，提高可持續性和價值創造。在過去的一年裡，我們贏得了眾多來自不同地區和行業的頂級客戶，並與印尼電信和中國燃氣公司完成了多個重大標杆項目。今年，Cube 將繼續與全球大客戶建立長期合作機會。

Finally, despite implementing many difficult measures this year, our long-standing core traditional product line still demonstrates strong resilience. Currently, structural and expense optimizations have not substantially affected [customer support], service delivery, product development or technology innovation capabilities in each product line. While highly motivated by these encouraging results and our relatively lean operations, we are confident in continuing in -- to pursue our goal of achieving breakeven as soon as possible, as one of our top priorities, while carefully nurturing and investing in new potential product lines with strong value propositions such as gateways, voice-controlled products, outdoor travel products, consumer-level expenses and nonconsumer products with a balanced approach.

最後，儘管今年實施了許多艱難措施，但我們長期存在的核心傳統產品線仍然表現出強大的韌性。目前，結構和費用優化並未對每個產品線的[客戶支持]、服務交付、產品開發或技術創新能力產生實質性影響。雖然受到這些令人鼓舞的結果和我們相對精簡的運營的高度激勵，但我們有信心繼續 - 盡快實現收支平衡的目標，作為我們的首要任務之一，同時謹慎培育和投資新的潛在產品線具有強大的價值主張，如網關、語音控制產品、戶外旅行產品、消費者級別的支出和非消費產品，採用平衡的方法。

With that, I will now turn the call over to CFO Jessie to provide everyone a closer look at our operating and financial performance.

有了這個，我現在將把電話轉給首席財務官傑西，讓每個人更仔細地了解我們的運營和財務業績。

That concludes the remarks by Jerry.

傑瑞的發言到此結束。

As I review our results, please note that all amounts are in U.S. dollars and all comparisons are on a year-on-year basis, unless otherwise stated.

在我審查我們的結果時，請注意所有金額均以美元為單位，所有比較均按年進行，除非另有說明。

For the full year and fourth quarter of 2022 and -- our total revenue was $208.2 million and $45.2 million, down 31.1% and 39.6%, respectively. Within that, our IoT PaaS revenue was 150.2 -- $152.9 million and $32.6 million, decreasing 41.5% and 47.4%, respectively.

2022 年全年和第四季度，我們的總收入分別為 2.082 億美元和 4520 萬美元，分別下降 31.1% 和 39.6%。其中，我們的物聯網 PaaS 收入為 150.2——1.529 億美元和 3260 萬美元，分別下降 41.5% 和 47.4%。

Please note that Chinese renminbi experienced significant fluctuations in 2022 and weakened against the U.S. dollar. At the start of the year, the exchange rate was RMB 6.38 to USD 1. By the end of the year, it has decreased to RMB 6.96 to USD 1. As a result, the revenue earned in renminbi converted to approximately $8.5 million less than it would have if the 2021 average exchange rate had been used.

請注意，人民幣在 2022 年經歷了大幅波動，兌美元走弱。年初，匯率為 6.38 元人民幣兌 1 美元。到年底，已降至 6.96 元人民幣兌 1 美元。因此，以人民幣計價的收入折算為約 850 萬美元，低於如果使用 2021 年的平均匯率，它就會有。

SaaS and others revenue in the full year of 2022 increased by 6.6% (sic) [60.6%] to $29.8 million from $18.6 million in 2021, sustaining a strong growth momentum. The growth was mainly driven by our continuous efforts in offering value-added services and various software products with strong value propositions for our customers. However, it is worth pointing out that we have implemented our customer-focused and key account strategy in 2022. As a result, we will be investing more resources proactively on high-value customers. Due to these strategies, certain services, including specific value-added services such as OEM App and customization services, may experience a slower momentum compared to past quarters.

SaaS 和其他 2022 年全年收入從 2021 年的 1860 萬美元增長 6.6%（原文如此）[60.6%] 至 2980 萬美元，保持強勁的增長勢頭。增長的主要原因是我們不斷努力為客戶提供具有強大價值主張的增值服務和各種軟件產品。然而，值得指出的是，我們在 2022 年實施了以客戶為中心的大客戶戰略。因此，我們將主動向高價值客戶投入更多資源。由於這些策略，某些服務，包括特定增值服務，如 OEM App 和定制服務，與過去幾個季度相比可能會出現放緩勢頭。

Our overall gross margin slightly increased to 43% in 2022 from 42.3% in 2021, demonstrating the resilience of our value proposition despite facing headwinds. Our IoT PaaS gross margin slightly decreased from 42.4% in 2021 to 41.1% in 2022, including a negative 2.4 percent points impact caused by a $3.7 million accrued inventory allowance for certain slow-moving IoT chips and raw materials during the year.

我們的整體毛利率從 2021 年的 42.3% 略微上升至 2022 年的 43%，這表明儘管面臨逆風，但我們的價值主張仍具有彈性。我們的物聯網 PaaS 毛利率從 2021 年的 42.4% 略微下降至 2022 年的 41.1%，其中包括年內某些滯銷物聯網芯片和原材料的 370 萬美元應計庫存補貼造成的 2.4 個百分點的負面影響。

Now let's move (inaudible) activities and related expenses. Please note that we are presenting our operating expenses on a non-GAAP basis by excluding share-based compensation expenses from our GAAP numbers to provide better clarity on the change of our actual operating base expenses so that you can review performance in the same way as our management team.

現在讓我們轉移（聽不清）活動和相關費用。請注意，我們通過從我們的 GAAP 數字中排除基於股份的補償費用，在非 GAAP 基礎上列報我們的運營費用，以更清楚地說明我們實際運營基礎費用的變化，以便您可以以與我們的管理團隊。

In the full year of 2022, non-GAAP total operating expenses decreased by 23.1% to $188.6 million from $245.3 million in 2021. For the fourth quarter of 2022, non-GAAP total operating expenses were $33.5 million (sic) [$35.5 million], down 46.4% year-over-year from $66.3 million in the same period of 2021. At the end of 2022, as a result of our internal cost control measures and the resource realignment initiatives, we reduced our team size by approximately 47% to 1,835 compared to the end of 2021. This would result in an effect of direct financial savings of more than [$18 million] a year. With our team restructuring optimization, we paid a total of over RMB 68 million in onetime additional severance payments and office lease termination and restoration costs in 2022. Excluding the impact of these onetime nonrecurring expenses, we reduced our non-GAAP operating expenses in 2022 by approximately 27% compared to 2021.

2022 年全年，非 GAAP 總運營費用從 2021 年的 2.453 億美元下降 23.1% 至 1.886 億美元。2022 年第四季度，非 GAAP 總運營費用為 3350 萬美元（原文如此）[3550 萬美元]，與 2021 年同期的 6630 萬美元相比，同比下降 46.4%。到 2022 年底，由於我們採取了內部成本控制措施和資源調整舉措，我們的團隊規模減少了約 47% 至 1,835 人與 2021 年底相比。這將導致每年直接財務節省超過 [1800 萬美元]。通過我們的團隊重組優化，我們在 2022 年支付了總計超過 6800 萬元的一次性額外遣散費和辦公室租賃終止和恢復費用。扣除這些一次性非經常性費用的影響，我們在 2022 年將非美國通用會計準則運營費用減少了與 2021 年相比增長約 27%。

Additionally, the fourth quarter of 2022 also marked our fifth consecutive quarter with substantial decrease in our non-GAAP operating expenses. Q4 non-GAAP operating expenses were nearly 50% lower than the highest point in the third quarter of 2021. I will name a few examples of initiatives here. In 2022, we streamlined our R&D, improved our efficiency evaluation procedures and implemented an upgraded value management initiative. Since then, around 100 major projects have been submitted and reviewed, covering areas such as core program upgrades, new program development, high-value revenue generation. And the capability expansion projects from our core product lines such as gateway, central controls and new energy will also undergo strict efficiency evaluation and review.

此外，2022 年第四季度也是我們連續第五個季度的非 GAAP 運營費用大幅下降。 Q4 非 GAAP 運營費用比 2021 年第三季度的最高點低近 50%。我將在這裡舉幾個舉措的例子。 2022年，我們精簡研發，完善效能評估流程，實施價值管理升級。此後，已提交評審的重大項目約100個，涵蓋核心項目升級、新項目開發、高價值創收等領域。而網關、中控、新能源等核心產品線的擴能項目也將經過嚴格的效能評估和審核。

We successfully kept our cloud infrastructure costs within the expected range during 2022. And we'll implement a series of follow-up measures to encourage our R&D team to carry our technology iterations and structural upgrades for more efficient uses of cloud services. On the marketing front, our finance team worked closely with our business divisions to include multiple rounds of expense analysis. Together, we faced challenges and executed optimization and improvement plans for several exhibitions where we build booths. Our internal professional design team provided substantial support. Among which, the maximum reduction of budget, cost of booth construction in a single event reached about 35%. We are also targeting companies in [2B] software, enterprise services and technology sectors as benchmarks to set up our marketing budget at an industry average level and to make every dollar we spend worthwhile.

2022年，我們成功地將雲基礎設施成本控制在預期範圍內。我們將實施一系列後續措施，鼓勵我們的研發團隊進行技術迭代和結構升級，以更高效地使用雲服務。在營銷方面，我們的財務團隊與我們的業務部門密切合作，進行了多輪費用分析。我們一起面對挑戰，為我們搭建展位的多個展會執行了優化和改進計劃。我們內部的專業設計團隊提供了大力支持。其中，最大削減預算，單場展台搭建成本達到35%左右。我們還將 [2B] 軟件、企業服務和技術領域的公司作為基準，將我們的營銷預算設置在行業平均水平，並讓我們花的每一分錢都物有所值。

In addition, we have raised the bar on our employees' business travel requirements. They are now required to provide clear explanation of the purpose, duration, expected outcomes of their trips; and undergo a review of -- afterwards to ensure that travel costs are creating value and not spiraling out of control. Additionally, every team leader is responsible for these outcomes. One more case, for asset management, we successfully disposed about 1,400 idle laptops saved from head count optimization at price 2x their amortized book value, recovering millions of cash in RMB.

此外，我們還提高了員工商務旅行要求的門檻。他們現在需要清楚地解釋他們旅行的目的、持續時間和預期結果；並在事後進行審查，以確保差旅成本正在創造價值，而不是失控。此外，每個團隊負責人都對這些結果負責。還有一個案例，在資產管理方面，我們以2倍於攤餘賬面價值的價格，成功處置了約1,400台因人員優化而節省下來的閒置筆記本電腦，回收了數百萬人民幣現金。

With that, our non-GAAP loss from operations narrowed by 15.8 -- 15.6% to $99.2 million in 2022 from $117.5 million in 2021. Our non-GAAP net loss significantly narrowed by 29.4% to $77.2 million in 2022 from $109.3 million in 2021. Our non-GAAP net loss improved more than our non-GAAP loss from operations in the full year of 2022 mainly due to our interest income. In 2022, due to work executed in treasury management, we generated over $22 million in interest income during the year, with nearly $10 million in the fourth quarter alone. We are fully committed to reducing costs and enhancing efficiency, which has significantly contributed to our ability to minimize losses, especially during periods of revenue decline such as the fourth quarter of 2022. As a result of these initiatives, we were able to achieve our lowest quarterly non-GAAP net loss of $5.2 million since the start of 2019.

因此，我們的非 GAAP 運營虧損從 2021 年的 1.175 億美元收窄 15.8% 至 2022 年的 9920 萬美元。我們的非 GAAP 淨虧損從 2021 年的 1.093 億美元大幅收窄 29.4% 至 2022 年的 7720 萬美元。我們的非 GAAP 淨虧損在 2022 年全年的改善超過了我們的非 GAAP 運營虧損，這主要是由於我們的利息收入。 2022 年，由於在資金管理方面開展的工作，我們全年產生了超過 2200 萬美元的利息收入，僅第四季度就有近 1000 萬美元。我們完全致力於降低成本和提高效率，這極大地促進了我們將損失降至最低的能力，尤其是在收入下降期間，例如 2022 年第四季度。由於這些舉措，我們能夠實現最低自 2019 年初以來，季度非 GAAP 淨虧損為 520 萬美元。

Moving on to balance sheet and cash. Inventory and accounts receivables, which are our main assets other than cash, sequentially declined quarter-over-quarter in 2022. These decreases resulted from our active efforts to minimize operational risks such as inventory depreciation and credit losses, as well as improved operating capital efficiency, while ensuring business delivery as well as upstream and downstream cooperation. Our net cash used in operating activities for the year 2022 decreased by 44% to $70.7 million from $126.1 million in 2021 and by about 99.7% to $138,000 for the fourth quarter of 2022 from $53.2 million in the same period a year ago, thanks to significant reductions in operating expenses. Admittedly, the improvement in cash flow was affected by seasonal fluctuations in operating capital. Nonetheless, our cash flow significantly improved since Q2 2022 and is now at a much more controllable level.

轉向資產負債表和現金。庫存和應收賬款是我們除現金以外的主要資產，在 2022 年環比下降。這些下降是由於我們積極努力將庫存摺舊和信貸損失等運營風險降至最低，以及運營資本效率的提高，同時確保業務交付以及上下游合作。我們在 2022 年用於經營活動的淨現金從 2021 年的 1.261 億美元下降 44% 至 7070 萬美元，2022 年第四季度從去年同期的 5320 萬美元下降約 99.7% 至 138000 美元，這要歸功於重大的減少運營費用。誠然，現金流的改善受到營運資本季節性波動的影響。儘管如此，我們的現金流自 2022 年第二季度以來有了顯著改善，現在處於更可控的水平。

As of December 31, 2022, cash, cash equivalents and short-term investments that were mainly in time deposits totaled $954.3 million, up $8.4 million quarter-over-quarter and down $111.8 million compared to the end of 2021 primarily due to operating cash outflows and $48.7 million in payments for share repurchased during the year.

截至 2022 年 12 月 31 日，主要為定期存款的現金、現金等價物和短期投資總額為 9.543 億美元，環比增加 840 萬美元，比 2021 年底減少 1.118 億美元，主要原因是經營現金流出以及 4870 萬美元的年內回購股份付款。

As we look ahead, there are a few important factors to keep in mind. First, inflation remain high, and the consumer sentiment continues to be weak and [fragile]. Additionally, we recognize that downstream players still need to make efforts to reduce their inventories. This is our anticipation, that the industry outlook for this year to depend primarily on downstream destocking. If the downstream channels can destock smoothly and considering that 2022 was a low basis year, we may see a possible rebound in the second half of the year, assuming no other unprecedented events occur. Nonetheless, there are various factors that may lead to uncertainties, and accordingly, we remain committed to executing our determined strategies while continuously monitoring the market environment.

展望未來，有幾個重要因素需要牢記。一是通脹居高不下，消費情緒持續疲軟。此外，我們認識到下游企業仍需努力減少庫存。這是我們的預期，今年的行業前景主要取決於下游去庫存。如果下游渠道能夠順利去庫存，考慮到 2022 年是一個低基數年，假設沒有其他史無前例的事件發生，我們可能會在下半年看到反彈。儘管如此，存在各種可能導致不確定性的因素，因此，我們將繼續致力於執行我們確定的戰略，同時持續監測市場環境。

With that, operator, we are now ready to take questions. Thank you.

有了這個，接線員，我們現在準備好提問了。謝謝。

(Operator Instructions) The first question is from the line of Yang Liu with Morgan Stanley.

（操作員說明）第一個問題來自楊柳與摩根士丹利的對話。

Jessie, you mentioned the downstream demand will be a key thing to watch for a potential rebound this year. I would like to follow up on this to -- could you please share, based on your observation, what is overall inventory level at your core customer side? And based on the best -- current best guess, why should we see the demand resolve this year?

傑西，你提到下游需求將是今年潛在反彈的關鍵。我想就此跟進 - 根據您的觀察，您能否分享核心客戶方面的總體庫存水平？根據目前最好的猜測，我們為什麼要在今年看到需求解決？

Okay, thank you, Yang. As an upstream company, we won't be able to accurately predict the downstream inventory levels, including OEMs, brands and retail channels, across the globe. However, as far as we know, we can share some information from both the market consumption and the inventory aspects. Starting with a bit more information on the consumer industry regarding U.S. consumers: Jerry has mentioned the fourth quarter credit card consumption data that was not very optimistic. As for retailers, Best Buy, which mainly sells consumer electronics products, talked about the trend of a 15% decline in sales in November, compared to October, when it announced its Q3 performance at the end of November. For brand, well-known vertical leading brands such as [iRobot and Arlo], in United States and a lot of others, either experienced a decline in Q4 revenue or reported weak sales performance even with increased discount efforts in retail channels. In other typical consumer product verticals such as smartphones, according to a report by omedia (sic) [Omdia], global smartphone shipments in Q4 2022 fell by 15.4% compared to the same period of last year. The top 5 global brands, including Apple, Samsung and Xiaomi, all experienced different degrees of decline in shipments ranging from 13% to 29%. In China, COVID cases peaked between late November 2022 to early January 2023. This, coupled with spring festival holiday, significantly slowed down economic activities in the country and had a substantial impact on electronic product consumption and overseas supply. That news that offers some relief is that warm weather observed across varied parts of Europe this winter has partially elevated the energy crisis. However, natural gas prices are still at a historically high level and the current expectations in the consumption market remain subdued. We were seeing similar regional trends from activations of smart devices on the end market. Since November last year, the U.S. segment has been slightly down year-over-year. The China segment has continued to decline. The European segment has delivered a year-over-year growth rate of over 20%. And the remaining regions have a combined double-digit year-over-year growth rate.

好的，謝謝你，楊。作為上游企業，我們將無法準確預測全球範圍內的下游庫存水平，包括 OEM、品牌和零售渠道。但是，據我們所知，我們可以從市場消費和庫存方面分享一些信息。從有關美國消費者的消費行業的更多信息開始：傑里提到第四季度信用卡消費數據不是很樂觀。零售商方面，主要銷售消費電子產品的百思買在11月底公佈Q3業績時談到11月銷售額較10月下降15%的趨勢。就品牌而言，美國和許多其他知名垂直領先品牌，如 [iRobot 和 Arlo]，第四季度收入下降或報告銷售業績疲軟，即使零售渠道的折扣力度加大。在智能手機等其他典型的消費產品垂直領域，根據 omedia (sic) [Omdia] 的一份報告，2022 年第四季度全球智能手機出貨量與去年同期相比下降了 15.4%。全球排名前五的品牌，包括蘋果、三星和小米，均出現了不同程度的出貨量下滑，幅度從13%到29%不等。在中國，COVID 病例在 2022 年 11 月下旬至 2023 年 1 月上旬達到頂峰。加上春節假期，該國經濟活動明顯放緩，對電子產品消費和海外供應產生重大影響。讓人鬆了一口氣的消息是，今年冬天歐洲各地觀察到的溫暖天氣在一定程度上加劇了能源危機。然而，天然氣價格仍處於歷史高位，目前消費市場的預期依然低迷。我們從終端市場上智能設備的激活中看到了類似的區域趨勢。自去年 11 月以來，美國市場同比略有下降。中國市場繼續下滑。歐洲市場實現了超過 20% 的同比增長率。其餘地區的年增長率合計為兩位數。

In terms of consumer behavior, each consumer is weighing their options, especially considering the significant impact of inflation on necessities such as food, fuel and accommodations. People may be interested in new technologies and trends such as VR and AI, but inflation and a weak economic environment have a significant inhibitory effect on discretionary spending. Therefore, purchasing products that have immediate practical value or higher cost effectiveness is particularly important for everyone. As such, consumers, brand owners and retailers continue to adjust, under high inflation, to find a new balance point. In the first 2 months of 2023, we continued to see flat performance in the lighting category in terms of end market consumption and activation. While there has been a rebound in electrical products related to electricity and energy savings, sensors, security and home appliance products have performed relatively stable year-over-year. In terms of downstream inventory, the pace of destocking is mainly dictated by the retail channels. According to Morgan Stanley's research report at the end of last year, inventory destocking in the first quarter of 2023 will move from the retail stores to the retail distributors. Brands are expected to return to a relatively normal inventory level around late Q2, followed by the OEMs in the second half of 2023. This is basically consistent with our estimation that we shared with everyone during last quarter's earning call. After nearly 2 quarters of industry-wide destocking efforts in the second half of 2022, our brand customers currently have a variance in their perceptions. Some brands in certain verticals such as small home appliances believe that the inventory pressure has somewhat abated. And the supply chain sentiment is improving, resulting in a rebound in regional sales. However, we have a group of general brand customers who indicated that inventory pressure remains high and that they need to continue monitoring the situation. The downstream consumption environment still isn't strong enough for everyone in the value chain to start placing their orders aggressively yet. As for OEMs, the inventory of some core OEM customers is still high. In fact, one of the customers with higher inventory level is still maintaining an inventory close to 40% of the annual procurement volume from us in 2021, when the upstream and the downstream players were aggressively stocking up. However, customers currently are starting to perceive that the downstream is entering a more orderly destocking phase.

在消費者行為方面，每個消費者都在權衡他們的選擇，尤其是考慮到通貨膨脹對食品、燃料和住宿等必需品的重大影響。人們可能對 VR 和 AI 等新技術和趨勢感興趣，但通貨膨脹和疲軟的經濟環境對可自由支配的支出有明顯的抑製作用。因此，購買具有即時實用價值或更高性價比的產品對每個人來說都顯得尤為重要。因此，消費者、品牌商和零售商在高通脹下不斷調整，尋找新的平衡點。在 2023 年前 2 個月，我們繼續看到照明類別在終端市場消費和激活方面表現平平。雖然與節電相關的電氣產品有所回升，但傳感器、安防和家電產品的同比表現相對穩定。下游庫存方面，去庫存的節奏主要由零售渠道決定。根據摩根士丹利去年底的研究報告，2023年第一季度的庫存去庫存將從零售門店轉移到零售分銷商。預計品牌將在二季度末左右恢復到相對正常的庫存水平，其次是 OEM 在 2023 年下半年。這與我們在上一季度財報電話會議上與大家分享的估計基本一致。經過2022年下半年近2個季度的全行業去庫存努力，我們品牌客戶目前的認知出現了差異。部分小家電等垂直領域的品牌認為，庫存壓力有所緩解。供應鏈情緒正在改善，導致區域銷售反彈。但是，我們有一批普通品牌客戶表示庫存壓力仍然很大，他們需要繼續觀察情況。下游消費環境還不足以讓價值鏈上的每個人都開始積極下訂單。主機廠方面，部分核心主機廠客戶庫存仍處於高位。事實上，其中一位庫存水平較高的客戶在 2021 年仍維持接近我們全年採購量的 40%，當時上下游參與者都在積極備貨。不過，目前客戶開始感知到下游正在進入更加有序的去庫存階段。

So in summary. Market consumption varies widely by region, with Europe performing relatively better, while the U.S. has yet to see a rebound, from our perspective. The pace of overall inventory destocking will be relatively slow in the first and second quarters. Additionally, due to the relatively higher comparison base in the first half of 2022, we expect industry's performance in the first half of 2023 to remain [mediocre]. In the second half of 2023, if inventory destocking progresses smoothly as we all hope, the energy crisis improves and the inflation stabilizes and slowly declines, the overall industry may reach a turning point for recovery when compared to the relatively lower base in the second half of 2022 sales across the value chain. So at that point, consumers and business may begin rebuilding their confidence. So this is my answer to the first questions..

所以綜上所述。市場消費因地區而異，在我們看來，歐洲表現相對較好，而美國尚未出現反彈。一、二季度整體去庫存步伐將相對放緩。另外，由於2022年上半年比較基數相對較高，我們預計2023年上半年行業表現仍將[平庸]。 2023年下半年，如果去庫存如大家所願順利推進，能源危機好轉，通脹企穩緩慢回落，相比下半年相對較低的基數，整體行業或將迎來復甦拐點整個價值鏈的 2022 年銷售額。因此，到那時，消費者和企業可能會開始重建他們的信心。所以這是我對第一個問題的回答..

The next question is from the line of Timothy Zhao with Goldman Sachs.

下一個問題來自高盛的 Timothy Zhao。

My question is on the cost and expense side. As you mentioned, you've already done some jobs in cost control or expense control. Just wondering. Could management could -- help further quantify the impact on this year's financials and especially how you look at [the profitability path] for this year and into next year?

我的問題是關於成本和費用方面的。正如您提到的，您已經在成本控製或費用控制方面做了一些工作。就是想。管理層能否幫助進一步量化對今年財務狀況的影響，尤其是您如何看待今年和明年的 [盈利路徑]？

Thank you, Timothy. In 2022, we implemented various measures to reduce cost, increase operation efficiency and improve internal operations. The execution of these measures was undoubtedly difficult, but for -- from an external perspective, the downsizing of our head count each quarter may seem like frequent adjustments in response to dynamic changes in market conditions. Here we can provide some additional insights. Due to the unique model of our IoT development platform, we saw the inflation trend start in late Q3 2021, ahead of other software and Internet technology peers in the market. We then stopped our team expansion efforts then and began to develop an extensive organizational restructuring plan. In 2022, we completed our strategic reorientation around our sales triangle as well as the production and research upgrade centered on our Cube private cloud. These strategic adjustments included shifting the focus of our product lines and R&D efforts as well as changes in employee arrangements to fill each position with suitable candidates. We also restructured our value management and evaluation system for R&D projects to ensure the value of our R&D efforts. These process were reflected in our phased team adjustments, with significant reductions in team size every quarter. However, our products R&D and service support functions remained stable throughout. Currently our expenses have reached a relatively reasonable level in the current business environment despite the increase in labor costs due to factors such as annual adjustments in salaries and social securities will offset some of the savings we made from downsizing our headquarter -- head count. In addition, except for specific necessary professional service expenses such as certification, compliance and legal fees, we will continue adopt a more strict and cautious approach towards nonlabor expenses, such as marketing and travel expenses, to ensure that expenses remain in line with our targets.

謝謝你，蒂莫西。 2022年，我們實施了多項措施來降低成本，提高運營效率，改善內部運營。這些措施的執行無疑是困難的，但對於——從外部角度來看，我們每個季度裁員似乎是為了應對市場環境的動態變化而進行的頻繁調整。在這裡，我們可以提供一些額外的見解。由於我們物聯網開發平台的獨特模式，我們看到通脹趨勢在 2021 年第三季度末開始，領先於市場上其他軟件和互聯網技術同行。然後我們停止了團隊擴張工作，開始製定廣泛的組織重組計劃。 2022年，我們完成了圍繞銷售三角的戰略調整和以Cube私有云為核心的產研升級。這些戰略調整包括轉移我們的產品線和研發工作的重點，以及改變員工安排以用合適的人選填補每個職位。重構研發項目價值管理和評價體系，確保研發價值。這些過程反映在我們分階段的團隊調整中，每個季度都會大幅縮減團隊規模。但是，我們的產品研發和服務支持功能始終保持穩定。目前我們的開支在當前的商業環境下已經達到了一個相對合理的水平，儘管由於每年調整工資和社會保障等因素導致的勞動力成本增加將抵消我們通過縮減總部 - 人員數量而節省的部分資金。此外，除了認證、合規和法律費用等特定必要的專業服務費用外，我們將繼續對營銷和差旅費用等非人工費用採取更嚴格和謹慎的態度，以確保費用與我們的目標保持一致.

There is still much we can do to increase efficiency in terms of expenses, and we will continue this in 2023 and 2024 going forward. On the other front, it should be emphasized that, considering the seasonal fluctuations in revenue, the situation will vary from quarter to quarter. Operating losses and net loss will fluctuate with changes in revenue and gross profit. And the net loss in quarters within lower revenues will be relatively larger. Overall, we expect a substantial reduction in expense in 2023 compared to 2022. We also expect a better operating cash flow in 2022 -- 2023 compared to 2022. We aim to achieve the goal of breakeven on a non-GAAP basis as soon as possible, as we have communicated previously. So this is my answer to the second question.

我們仍然可以做很多事情來提高支出效率，我們將在 2023 年和 2024 年繼續這樣做。另一方面，需要強調的是，考慮到收入的季節性波動，每個季度的情況都會有所不同。經營虧損和淨虧損將隨著收入和毛利的變化而波動。而收入較低的季度淨虧損會相對較大。總體而言，我們預計 2023 年的費用將比 2022 年大幅減少。我們還預計 2022 年 - 2023 年的運營現金流將比 2022 年更好。我們的目標是盡快實現非 GAAP 收支平衡的目標，正如我們之前交流過的。所以這是我對第二個問題的回答。

The last question is from the line of Li Mingran with CICC.

最後一個問題來自中金公司李明然的專線。

Given your strong capital position with high level of cash and short-term investments in several consecutive quarters, what is your future strategy for cash? And have you considered using it for exploring new application scenarios? And what's your investment plans?

鑑於您的資本狀況良好，連續幾個季度持有大量現金和短期投資，您未來的現金策略是什麼？您是否考慮過使用它來探索新的應用場景？您的投資計劃是什麼？

Thank you. Now we are committed to our conservative and cautious capital strategy in order to maintain cash reserves for any unexpected risks. As of December 31, 2022, our net cash balance exceeded $950 million, of which $820 million is in fixed bank deposit with maturities ranging from 6 months to 1 year. And some of fixed deposit interest rates go as high as 6.5% annually. We collaborate with several large, very reputable commercial banks to manage our funds; and strive to obtain the best deposit rates while ensuring the safety of our principals. In 2022, we achieved an interest income of more than USD 22 million, which provided solid support to our overall cash flow. Our strong cash position has made it easier for us to implement adjustments in our operations, support new business and investment, incubate new products and safeguard our operational activities. We also use our cash to fund share repurchases within [regulatory] limits as a way to reward our shareholders and demonstrate our long-term confidence in the company. And from August 2021 to the end of 2022, we have repurchased more than USD 110 million stocks. In addition, although the headwinds in the consumer sector and stock markets led us to reassess our investment strategy for the ecosystem chain in 2022, we continue to track and monitor promising IoT companies, solution providers and emerging industries. We are prepared for opportunities where we can leverage our capitals or other means to partner, integrate or consolidate these prospects at the right time.

謝謝。現在我們致力於保守和謹慎的資本策略，以保持現金儲備以應對任何意外風險。截至 2022 年 12 月 31 日，我們的淨現金餘額超過 9.5 億美元，其中 8.2 億美元為期限為 6 個月至 1 年的定期銀行存款。部分定期存款年利率高達 6.5%。我們與幾家信譽良好的大型商業銀行合作管理我們的資金；力求在確保本金安全的同時獲得最佳存款利率。 2022年，我們實現了超過2200萬美元的利息收入，為我們的整體現金流提供了堅實的支撐。我們強大的現金狀況使我們更容易實施運營調整，支持新業務和投資，孵化新產品並保護我們的運營活動。我們還使用我們的現金在 [監管] 限制內為股票回購提供資金，以此作為回報我們的股東並展示我們對公司的長期信心的一種方式。從2021年8月到2022年底，我們已經回購了超過1.1億美元的股票。此外，儘管消費領域和股市的逆風使我們重新評估了 2022 年生態鏈的投資策略，但我們繼續跟踪和監控有前景的物聯網公司、解決方案提供商和新興行業。我們已準備好迎接機會，在這些機會中我們可以利用我們的資本或其他方式在合適的時間合作、整合或鞏固這些前景。

In terms of exploring and investing in new applications, use cases. In 2023, we will continue to focus on 2 areas. First is acquiring and serving major high-value customers. Secondly, we will [focus] product lines with potential and strategic value. For the former, we will continue, refine our private cloud product. We have already completed 2 benchmark projects for China Gas and Indonesia Telkom in 2022, and we will replicate the successful cases to serve other large groups across the globe. In addition, our value-added services such as cloud storage also have generated solid revenue in [2022], growth more than tenfold compared to the previous year. We will continue to penetrate the top telecom groups in each region with our private cloud offering and our software capabilities in cloud storage service, helping them build cost-effective IoT platforms and sustainable revenue-generating customer operations. In terms of product lines, in categories such as gateways, central controls and others, there are both consumer-grade and commercial-grade specifications. We also [see] future market potential of products with increased integrations with software at its core. Our revenue from gateway and central control products also grew by more than 80% in 2022. Aside from consumer product, some commercial and nonconsumer devices that can meet professional needs have more technical barriers and higher unit prices. For example, our community industry edge gateway products, with increased integrations, are priced more than RMB 10,000 per unit, with a gross profit margin around 70%, while simpler hotel commercial gateways can achieve unit price ranging from less than RMB 100 to a few hundred RMB. Of course, we will also continue to strengthen the capabilities of other consumer-grade product lines. Overall, we will maintain a consistent investments pace to align with both our product management and market demand plans while also ensuring it is in line with our existing organizational structure. Our priority is to achieve profitability as soon as possible. So this is my answer to the third questions.

在探索和投資新的應用程序、用例方面。 2023年，我們將繼續關注2個領域。首先是獲取和服務主要的高價值客戶。其次，我們將[聚焦]具有潛力和戰略價值的產品線。對於前者，我們將繼續完善我們的私有云產品。我們已經在2022年完成了中國燃氣和印尼電信2個標杆項目，我們將復製成功案例服務於全球其他大型集團。此外，我們的雲存儲等增值服務也在 [2022] 產生了可觀的收入，與上一年相比增長了十倍以上。我們將繼續通過我們的私有云產品和我們在雲存儲服務方面的軟件能力滲透到每個地區的頂級電信集團，幫助他們構建具有成本效益的物聯網平台和可持續的創收客戶運營。從產品線來看，在網關、中控等類別中，既有消費級規格，也有商用級規格。我們還 [看到] 以軟件為核心的集成度更高的產品的未來市場潛力。我們來自網關和中控產品的收入在 2022 年也增長了 80% 以上。除了消費產品，一些能夠滿足專業需求的商用和非消費設備具有更多的技術壁壘和更高的單價。比如我們的社區行業邊緣網關產品，隨著集成度的提高，單價在1萬元以上，毛利率在70%左右，而更簡單的酒店商業網關可以做到單價在100元以下到幾元不等。百元。當然，我們也會繼續加強其他消費級產品線的能力。總的來說，我們將保持一致的投資步伐，以配合我們的產品管理和市場需求計劃，同時確保它符合我們現有的組織結構。我們的首要任務是盡快實現盈利。所以這就是我對第三個問題的回答。

Thank you. There are no additional questions waiting at this time, so I will hand the call over to the management team for any further remarks.

謝謝。目前沒有其他問題等待，所以我會將電話轉給管理團隊以徵求任何進一步的意見。

So thank you again for joining our call. If you have any further questions, please feel free to contact us or request through our IR website. We look forward to speaking with everyone in our next earnings call. Have a good day.

再次感謝您加入我們的電話會議。如果您有任何其他問題，請隨時與我們聯繫或通過我們的 IR 網站提出要求。我們期待在下一次財報電話會議上與大家交談。祝你有美好的一天。

That concludes today's call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開線路。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]