Viomi Technology Co Ltd (VIOT) 2024 Q2 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Co. Limited earnings conference call for the first half of 2024. (Operator Instructions) Today's conference call is being recorded. I would now like to turn the call over to your host, Ms. Claire Ji, the IR Director of the company. Please go ahead, Claire.

女士們、先生們，大家好。感謝您出席雲米科技有限公司 2024 年上半年業績電話會議。（操作員指示）今天的電話會議正在錄音。現在我想把電話轉給你們的主持人，公司IR總監季克萊爾女士。請繼續，克萊爾。

Hello, everyone, and welcome to Viomi 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 a press release earlier today and are posted online. You can download the earnings press release and sign up for the company's e-mail distribution list by visiting the IR section of the company's website at ir.viomi.com.

大家好，歡迎參加雲米科技有限公司2024年上半年財報電話會議。提醒一下，本次會議正在錄製中。該公司的財務和經營業績已在今天稍早發布的新聞稿中發布，並發佈在網路上。您可以造訪公司網站 ir.viomi.com 的 IR 部分，下載收益新聞稿並註冊公司的電子郵件分發清單。

Participating in today's call are Mr. Xiaoping Chen, the Founder, Chairman of the Board of Directors and Chief Executive Officer; and Mr. Jinling Zhang, the Head of our Capital and Strategy 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 safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties.

參加今天電話會議的有創辦人、董事會主席兼執行長陳小平先生；以及我們資本與策略部負責人張金嶺先生。公司管理階層將以準備好的發言開始，電話會議將以問答環節結束。在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。

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-F and other filings as filed with the US 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 Viomi's earnings press release and this conference call includes discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures.

因此，該公司的年度業績可能與今天表達的觀點有重大差異。有關此風險和其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的 20-F 表格年度報告和其他文件中。除法律要求外，本公司不承擔更新任何前瞻性聲明的義務。另請注意，雲米的獲利新聞稿和本次電話會議包括對未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。

In addition, Viomi's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited 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 English translation. Mr. Chen, please go ahead.

此外，雲米的新聞稿還包含未經審計的非公認會計原則措施與未經審計的最直接可比較的公認會計原則措施的調節表。現在我將把電話轉給我們的創辦人兼執行長陳小平先生。陳先生將以中文發表講話，隨後將進行英文翻譯。陳先生，請講。

(spoken in Chinese)

(用中文說)

Thank you, Mr. Chen. I will quickly translate our Founder's remarks before discussing our financial performance for the first half of 2024.

謝謝陳先生。在討論我們 2024 年上半年的財務表現之前，我將快速翻譯我們創辦人的演講。

Hello, everyone. Thank you for joining us today on our earnings conference call for the first half of 2024. In the first half of 2024, we implemented our Focus strategy prioritizing high-quality development, consistently enhancing our operating performance and return to a net profit position, specifically by concentrating on our advantageous categories. Our core home water solution products revenue grew by nearly 13% year-over-year, while we further optimize our product structure. As a result, our overall gross margin continued to improve to 24.8% for the first half of 2024 from 22% for the prior year period.

大家好。感謝您今天參加我們 2024 年上半年的財報電話會議。2024年上半年，我們實施高品質發展的聚焦策略，聚焦優勢類別，持續提升經營業績，回歸淨利。核心家庭淨水產品營收年增近13%，產品結構進一步優化。因此，我們的整體毛利率從去年同期的 22% 持續改善至 2024 年上半年的 24.8%。

Strict cost control measures led to a year-over-year decline in operating expenses by 19.2%, contributing to a turnaround in net profit with a net income of RMB5.6 million and a non-GAAP net income of RMB16.1 million. Additionally, we maintained a strong cash position, with free cash assets totaling RMB914.3 million. On July 19, 2024, we announced a major business reorganization, which is expected to be completed as planned by end of August. This reorganization demonstrates our commitment to implementing our Focus strategy and swiftly improving our operating results, by divesting certain underperforming IoT-related businesses.

嚴格的成本控制措施導致營業費用年減19.2%，淨利扭虧為盈，淨利為人民幣560萬元，非美國通用會計準則淨利為人民幣1,610萬元。此外，我們保持強勁的現金狀況，自由現金資產總計人民幣9.143億元。2024年7月19日，我們宣布重大業務重組，預計8月底將按計畫完成。此次重組顯示我們致力於透過剝離某些表現不佳的物聯網相關業務來實施聚焦策略並迅速改善我們的經營業績。

Viomi will now primarily focus on leveraging its core strength in the water purification sector to elevate our overall operational trajectory. According to our preliminary estimates, the revenues of the continuous business were more than RMB800 million, with an estimated income from operations more than RMB50 million in the first half of 2024. In the short term, this strategic reorganization may lead to a slight reduction in our business scale, but it will further enhance company's profitability, driving healthy and sustainable long-term growth. Following the major business reorganization, Viomi will embrace a new mission, AI for Better Water.

雲米現在將主要專注於利用其在淨水領域的核心優勢來提高我們的整體營運軌跡。根據我們初步測算，持續業務收入超過人民幣8億元，預計2024年上半年營業收入超過人民幣5,000萬元。短期來看，本次策略重組可能導致公司業務規模略有縮減，但將進一步提升公司獲利能力，推動公司健康可持續的長期成長。經過重大業務重組，雲端米將迎來新的使命：AI for Better Water。

We are dedicated to utilizing AI technologies to provide better drinking water solutions for households worldwide. Leveraging our extensive expertise in AI technology applications, intelligent hardware and software development, Viomi has strived to redefine home water solutions and develop a unique equipment plus consumables business model. We use AI technology to holistically enhance the user experience, providing remote real-time monitoring of water quality and usage as well as timely filter replacement reminders, one-click reordering and the DIY replacement options, leading to a higher filter replacement. Our intelligent waterway self-cleaning technology significantly extends filter lifespan and reduces the cost of water purification, making smart water purifiers a reliable, hassle-free and affordable essential for a healthy lifestyle.

我們致力於利用人工智慧技術為全球家庭提供更好的飲用水解決方案。憑藉著在人工智慧技術應用、智慧軟硬體開發方面的豐富專業知識，雲端米致力於重新定義家庭用水解決方案，並發展出獨特的設備+耗材商業模式。我們利用人工智慧技術全面提升使用者體驗，遠端即時監測水質和使用情況，及時提醒濾芯更換，一鍵重新訂購和DIY更換選項，提高濾芯更換率。我們的智慧水路自清潔技術可顯著延長過濾器的使用壽命並降低淨水成本，使智慧淨水器成為可靠、無憂且經濟實惠的健康生活方式的必需品。

As of the end of the first half of 2024, Viomi AI home water solutions were used by nearly 5.9 million household users. In terms of the production innovation of the industry-leading technology, Viomi has consistently driven technological breakthroughs over the past decade. We developed tankless large-flux water purifiers that provide fresh drinking water 24/7. By upgrading the water flux up to 2,000 gallons, we expanded water purifier usage scenario from drinking to cooking, washing vegetables and more.

截至2024年上半年末，雲米AI家庭用水解決方案已有近590萬家庭用戶使用。在業界領先技術的生產創新方面，雲米十多年來持續推動技術突破。我們開發了無罐大通量淨水器，可 24/7 提供新鮮飲用水。透過將水通量提升至2,000加侖，我們將淨水器的使用場景從飲用擴展到烹飪、洗菜等。

In addition, we implemented ERO technology to offer sustainable water quality, ranging from pure water to natural mineral water, setting new trends in healthy living. At the Viomi Spring Water Purifier New Product Launch event in March 2024, we unveiled the Viomi Kunlun Mineral AI water purifier. Its innovative mineralizing filter technology enables the sustained release of beneficial minerals, making the composition of these minerals in the water almost identical to that of natural mineral water, allowing our users to enjoy fresh mineral water at home. Viomi offers a wide range of products covering various home scenarios from single-function filtration to integrated functions featuring instant heating, cooling and ice-making capacities.

此外，我們實施ERO技術，提供永續的水質，從純淨水到天然礦泉水，引領健康生活新趨勢。在2024年3月的雲米泉水淨水器新品發表會上，我們推出了雲米崑崙礦物質AI淨水器。其創新的礦化過濾技術能夠持續釋放有益礦物質，使水中這些礦物質的成分幾乎與天然礦泉水相同，讓我們的使用者在家就能享用新鮮的礦泉水。雲米產品種類豐富，涵蓋從單一功能過濾到即時暖氣、冷氣、製冰等綜合功能的各種家居場景。

Spanning kitchen, living room and whole house applications, our products comprehensively address the increasing global demand for cleaner, fresher and healthier drinking water. In terms of product manufacturing and technology development, Viomi operates a world-leading Water Purifier Gigafactory, boasting an annual production capacity of 5 million water purifiers and 30 million filters. Its highly integrated industrial chain layout, highly automated production lines, high-standard clean production workshops and the fully traceable quality control system facilitate continuous breakthroughs in water purification, achieving an optimal scale efficiency and meeting diverse global market demands. We have established one of industry's most comprehensive R&D systems, mastering advanced filtration technology and the materials manufacturing process. As a result, we have amassed over 1,600 water purification patents and attracted numerous global talents in management, marketing, product development and quality control.

我們的產品涵蓋廚房、客廳和全屋應用，全面滿足全球對更乾淨、更新鮮和更健康的飲用水日益增長的需求。在產品製造和技術開發方面，雲米擁有全球領先的淨水器超級工廠，年產淨水器500萬台、過濾器3000萬隻。高度整合的產業鏈佈局、高度自動化的生產線、高標準的潔淨生產車間以及完全可追溯的品質控制體系，助力淨水領域不斷突破，實現規模效益最優，滿足全球多元化市場需求。我們建立了業界最全面的研發體系之一，掌握先進的過濾技術和材料製造流程。目前，我們已累積了1,600多項淨水專利，並吸引了許多全球管理、行銷、產品開發和品質控制方面的人才。

Through continuous product adjustments and effective implementation of our Focus strategy, we have achieved significant success in sales, while steadily enhancing our brand strength by strategically aligning our sales channels with differentiated products. We have successfully expanded our market share and further promoted our mineral water purifiers. In July, the Viomi AI water purifier ranked third in the water purifier sector where our new Spring product series claimed the top position in under-sink water purifier category on China's leading new media platform. Additionally, Viomi ranked 439th place in 2024 China's top 500 brands list released by the World Brand Lab with a brand value of RMB13.336 billion.

透過不斷的產品調整和聚焦策略的有效實施，我們在銷售方面取得了顯著的成績，同時透過差異化產品策略對接銷售管道，穩步提升品牌力。我們成功擴大了市場份額，並進一步推廣了我們的礦泉水淨水器。7月，雲米AI淨水器位居淨水器產業第三位，新春系列產品在中國領先的新媒體平台台下淨水器類別中排名第一。此外，在世界品牌實驗室發布的2024年中國品牌500強排行榜中，雲米以133.36億元的品牌價值位居第439名。

Following our major business reorganization, Global Water will become the company's vision. As a specialized professional water purification technology company, we aim to deliver fresh and healthy water worldwide, and we will deepen our focus on providing high-quality products and solutions to enhance our user satisfaction. First, we will strengthen our collaboration with strategic partners to fully leverage our Water Purifier Gigafactory's competitive advantages. Second, we will increase our water purification products' domestic market penetration, continuing to lead the healthy mineral water trend and promoting access for household users.

隨著我們的重大業務重組，全球水務將成為公司的願景。作為一家專門的專業淨水技術公司，我們的目標是為全球提供新鮮、健康的水，我們將更加專注於提供高品質的產品和解決方案，以提高我們的用戶滿意度。首先，我們將加強與策略夥伴的合作，充分發揮淨水器超級工廠的競爭優勢。二是加大淨水產品國內市場滲透力度，持續引領健康礦泉水潮流，推動家庭用戶普及。

Third, we will actively expand in key overseas markets to promote Viomi's global strategy enable families abroad to enjoy fresh and healthy water through our products. In the meantime, we will maintain a sufficient capital reserve and ensure stable business growth, providing long-term returns for our users and shareholders. Thank you. That concludes our Founder's remarks. I will now turn the call over to our Head of Capital Strategy Department, Mr. Jinling Zhang, to discuss our financial performance. Thank you.

第三，我們將積極拓展海外重點市場，推動雲端米全球化策略，讓海外家庭透過我們的產品享受新鮮健康的水。同時，我們將維持充足的資本儲備，確保業務穩定成長，為用戶和股東提供長期回報。謝謝。我們的創始人的演講到此結束。我現在將電話轉給我們的資本策略部主管張金嶺先生，討論我們的財務表現。謝謝。

Thank you, Mr. Chen and Claire. Thank you to everyone for joining us today. I will go over our unaudited financial results for the first half of 2024. Net revenues were RMB1,040.2 million compared to RMB1,304.4 million revenue for the same period of 2023.

謝謝陳先生和克萊爾。感謝大家今天加入我們。我將回顧 2024 年上半年未經審計的財務表現。淨收入為人民幣 10.402 億元，而 2023 年同期收入為人民幣 13.044 億元。

This decrease was mainly due to a strategic shift in focus towards home water solutions, resulting in the decrease in revenues from the IoT@Home portfolio as well as small appliances and others. Revenues from the IoT@Home portfolio decreased by 30.3% to RMB482 million from RMB691.7 million in revenue for the same period of 2023. The decrease was primarily due to the company's strategic vision to phase out certain underperforming SKUs in smart refrigerators and air conditioners, aiming for more sustainable and healthy growth. Revenues from home water solutions increased by 12.9% to RMB323.5 million from RMB286.6 million for the same period of 2023.

這一下降主要是由於策略重點轉向家庭用水解決方案，導致 IoT@Home 產品組合以及小家電和其他產品的收入下降。IoT@Home產品組合的收入從2023年同期的人民幣6.917億元下降30.3%至人民幣4.82億元。這一下降主要是由於該公司的戰略願景是逐步淘汰智慧冰箱和空調中某些表現不佳的SKU，以實現更永續和健康的成長。家庭用水解決方案收入由2023年同期的人民幣2.866億元成長12.9%至人民幣3.235億元。

The increase was primarily driven by our intensified focus on water purification products. Revenues from consumables remained stable at RMB135.8 million from RMB135.9 million for the same period of 2023. Revenues from small appliances and others decreased by 48% to RMB98.9 million from RMB190.2 million for the same period of 2023, primarily due to the company's ongoing effort to streamline SKUs within these categories. Gross profit was RMB258.1 million compared to RMB286.8 million for the same period of 2023.

這一增長主要是由於我們加強對水淨化產品的關注。消耗品收入從2023年同期的人民幣1.359億元穩定在人民幣1.358億元。小家電及其他業務的收入從2023年同期的人民幣1.902億元下降48%至人民幣9,890萬元，主要是由於公司持續努力精簡這些類別的SKU。毛利為人民幣 2.581 億元，而 2023 年同期為 2.868 億元。

Gross margin was 24.8% compared to 22% for the same period of 2023. The increase was primarily driven by the company's efforts on expanding revenue contribution of higher gross margin core product categories. Total operating expenses decreased by 19.2% to RMB292.3 million from RMB361.8 million for the same period of 2023. Adjusted operating expenses, excluding share-based compensation, were RMB281.8 million, representing a year-over-year decrease of 21.8%.

毛利率為 24.8%，而 2023 年同期為 22%。這一成長主要是由於公司努力擴大毛利率較高的核心產品類別的收入貢獻。總營運費用從 2023 年同期的 3.618 億元下降 19.2% 至 2.923 億元。調整後營業費用（不含股權激勵）為人民幣281.8百萬元，較去年同期下降21.8%。

The decrease was driven by the company's strategic evaluation of resource efficiency and a focus on more advantageous areas to achieve the best operating results. In greater detail, R&D expenses slightly decreased by 1.2% to RMB109.2 million from RMB109.5 million for the same period of 2023, mainly due to a decrease in staff cost, partially offset by higher share-based compensation expenses, resulting from the extension of share incentive plans' expiration term to 20 years. Selling and marketing expenses decreased by 33.1% to RMB142.9 million from RMB213.5 million for the same period of 2023, mainly due to a decrease in logistic expenses, online platform service fees and advertising and marketing fees as a result of the company's rigorous cost control measures, optimization of sales channels and the refinement of the product mix.

這一下降是由於公司對資源效率的策略評估以及專注於更具優勢的領域以實現最佳經營績效所致。具體而言，研發費用從 2023 年同期的 1.095 億元小幅下降 1.2%至人民幣 1.095 億元，主要是由於員工成本下降，但部分被股權激勵費用增加所抵消。 20年。銷售及行銷費用由2023年同期的人民幣213.5百萬元下降33.1%至人民幣142.9百萬元，主要是由於公司嚴格的控制措施導致物流費用、線上平台服務費以及廣告和行銷費用減少。 、優化銷售通路和細化產品結構。

G&A expenses increased by 6.2% to RMB41.2 million compared to RMB38.8 million for the same period of 2023, primarily due to an increase in professional fees, depreciation and administrative expenses related to operation of the technology park, partially offset by a decrease in the estimated allowance for accounts and notes receivables. Net income attributable to ordinary shareholders of the company was RMB6 million, and the non-GAAP net income attributable to ordinary shareholders of the company was RMB16.5 million. We achieved this great result as we strategically shift efforts towards home water solution products and implementing strict cost control measures. Traditionally, our balance sheet remained healthy.

一般及行政費用由 2023 年同期的人民幣 3880 萬元增加 6.2% 至人民幣 4120 萬元，主要是由於與科技園運營相關的專業費用、折舊和管理費用增加，但部分被減少所抵消應收賬款和票據的估計備抵。歸屬於公司普通股股東的淨利為人民幣600萬元，非美國通用會計準則歸屬於公司普通股股東的淨利為人民幣1,650萬元。我們取得如此驕人的成績，得益於我們策略性地將業務重點轉向家庭用水解決方案產品，並實施嚴格的成本控制措施。傳統上，我們的資產負債表保持健康。

As of June 30, 2024, the company had cash and cash equivalent of RMB701.6 million, restricted cash of RMB206.9 million, short-term deposits of RMB142.6 million and short-term investment of RMB60.1 million. Now let's turn to our outlook, for the full year of 2024, we currently expect revenues of the continuous business to be between RMB1.7 billion and RMB1.9 billion, income from operations of the continuing business to be between RMB110 million revenues and RMB130 million. The above outlook is based on our current market conditions and reflects the company's current and preliminary estimates of the market and operating conditions and customer demand, all of which are subject to change. Thank you.

截至2024年6月30日，公司擁有現金及現金等價物人民幣701.6百萬元，限制性現金人民幣206.9百萬元，短期存款人民幣142.6百萬元，短期投資人民幣60.1百萬元。現在我們展望一下，2024年全年，我們目前預計持續業務收入在人民幣17億元到人民幣19億元之間，持續業務運營收入在人民幣1.1億元到人民幣130億元之間百萬。上述展望基於我們當前的市場狀況，反映了公司對市場和經營狀況以及客戶需求的當前和初步估計，所有這些都可能發生變化。謝謝。

Okay. This concludes our prepared remarks. We will now open the call for Q&A. Mr. Chen, our Founder, and Mr. Jinling Zhang will join this session and answer questions. Operator, please go ahead.

好的。我們準備好的演講到此結束。我們現在將開始問答徵集。我們的創辦人陳先生和張金陵先生將參加本次會議並回答問題。接線員，請繼續。

(Operator Instructions) [Jingsheng Liu].

（操作員說明）[劉京生]。

This is Jingsheng from CICC. And I have three questions about the results, and I will ask them one by one. As for the performance and for the home water solutions business, can you introduce what is the result of both the volume and the ASP? And how do the Xiaomi brand and Viomi brand could outperform? That's my first question.

我是中金公司的景生。而我對結果有三個疑問，我會一一詢問。至於業績和家庭用水解決方案業務，您能介紹一下銷售量和平均售價的結果嗎？小米品牌和雲米品牌如何表現出色？這是我的第一個問題。

Okay. Thank you. Let me just get to your question. As for the home water solutions business, we had 13% increase in revenue for the first half of 2024 compared to the same period of last year, mainly due to further focus on home water solutions business as well as deepening our strategic cooperation with Xiaomi on this category. Through continuous product adjustment and the effective implementation of our Focus strategy, we have achieved significant success in sales while steadily enhancing our brand strength. But strategically aligning our sales channel with differentiated products, we have successfully expanded our market share and further promoted our mineral water purifiers.

好的。謝謝。讓我回答你的問題。家庭用水解決方案業務方面，2024年上半年營收較去年同期成長13%，主要是由於進一步聚焦家庭用水解決方案業務以及深化與小米的策略合作。透過不斷的產品調整和聚焦策略的有效實施，我們在銷售取得顯著成績的同時，品牌實力穩步提升。但透過策略性地調整我們的銷售管道和差異化產品，我們成功擴大了市場份額，並進一步推廣了我們的礦泉水淨水器。

In July, the Viomi AI water purifier ranked third in the water purifier sector, while our new Spring product series claimed the top position in the under-sink water purifier category on China's leading new media platforms. Additionally, we are now ranked 439th in the 2024 China's top 500 brands list released by the World Brand Lab, with the brand value of RMB15 billion. We are maintaining close cooperation with our strategic partners while expanding differentiated channels and the products to jointly increase the penetration rate of the water purifier market and make AI water purifier as essential for the better life.

7月，雲米AI淨水器位居淨水器產業第三位，春天系列新品在中國領先新媒體平台台下淨水器類別中排名第一。此外，在世界品牌實驗室發布的2024年中國品牌500強排行榜中，我們位列第439位，品牌價值150億元。我們與策略夥伴保持密切合作，拓展差異化通路和產品，共同提高淨水器市場滲透率，讓AI淨水器成為美好生活的必需品。

Okay. And my second question is, what is your purpose of divesting IoT business and what are the remaining categories now? And can you explain why do you choose this categories to remain? And can you also introduce some financial results of the remaining categories?

好的。我的第二個問題是，你們剝離物聯網業務的目的是什麼？您能解釋一下為什麼選擇保留這個類別嗎？您能否介紹一下其餘類別的一些財務結果？

It's a very good question. The businesses we're divesting are certain underperforming IoT business, so that we can quickly restore our operations and get the company back to a benign status. And certain IoT business has shown a trend of construction in scale during the past few years, which, to a certain extent, has dragged down our overall operating efficiency. Therefore, we have started to streamline and focus on more productivity in 2023 and invested our resources in more advantageous product categories.

這是一個非常好的問題。我們剝離的業務都是一些表現不佳的物聯網業務，這樣我們就可以快速恢復運營，讓公司回到良性狀態。而部分物聯網業務這幾年呈現規模化建設的趨勢，某種程度上拖累了我們整體的營運效率。因此，我們在2023年開始精簡並專注於更高的生產力，並將資源投入更有優勢的產品類別。

As we mentioned in the beginning, the ER for the first half of 2024, based on our preliminary estimate, the estimate of revenue of continuing business was no less than RMB500 million, with estimated income from operations more than RMB50 million for the first half of 2024. Also, we estimate the top line of the continuing business will reach between RMB1.7 billion to RMB1.9 billion for the full year of 2024, with the income from the operation between RMB110 million to RMB130 million. Next, we plan to sort out the overall revenue structure with the new home water solutions business, consumables and other appliances and services.

正如我們開頭提到的，2024年上半年的ER，根據我們的初步估算，預計持續業務收入不低於人民幣5億元，預計上半年經營收入超過人民幣5000萬元。此外，我們預計 2024 年全年持續業務收入將達到 17 億元至 19 億元，經營收入將在 1.1 億元至 1.3 億元人民幣之間。接下來，我們計劃以新家庭水解決方案業務、消耗品以及其他家電和服務來整理整體收入結構。

Although it's not finalized yet, the new home water solutions business will include under-sink water purifiers, pipeline water dispensers, free installation products like hot water dispensers, smart kettles as well as centralized water purification and sorting systems and water heaters covering home scenarios, including kitchen, living room, bathroom and whole house water system.

雖然尚未最終確定，但新的家庭水解決方案業務將包括台下淨水器、管道飲水機、即熱飲水機、智慧水壺等免安裝產品以及覆蓋家庭場景的集中淨水分選系統和熱水器，包括廚房、客廳、浴室和全屋供水系統。

Okay. And my last question is, what does the management expect to see improved after these divestments and what will be the focusing points in the future? That's my last question.

好的。我的最後一個問題是，管理階層期望在這些撤資之後看到什麼改善？這是我的最後一個問題。

Okay. The business, we divest our certain underperforming IoT business. Our fundamental has turned around. Earnings will improve significantly and get the company back to a benign status. As we mentioned in the before, based on our preliminary estimates, the estimated revenue of the continuing business were more than RMB800 million with the estimated income from operations more than RMB50 million for the first half of 2024.

好的。在業務方面，我們剝離了某些表現不佳的物聯網業務。我們的基本面已經逆轉。獲利將顯著改善，並使公司恢復良性狀態。正如我們之前提到的，根據我們的初步測算，預計2024年上半年持續業務收入將超過人民幣8億元，預計營業收入將超過人民幣5,000萬元。

The full year guidance of the continuing business is between RMB1.7 billion to RMB1.9 billion in top line and RMB110 million to RMB130 million of income from operations. As we can see, divested income of our business will strengthen our overall scale in short term, but will produce significant improvement on the operation result. Through this reorganization, we can concentrate our resources to focus fully on the company's most powerful water purification field and further improve the brand influence of Viomi AI Water in the following three aspects. First, we will strengthen our collaboration with strategic partners to fully leverage our Water Purifier Gigafactory's competitive advantage.

持續業務的全年指導收入為 17 億元至 19 億元，營運收入為 1.1 億元至 1.3 億元。我們可以看到，業務剝離收入短期內會增強我們的整體規模，但會對經營業績產生顯著改善。透過這次重組，我們可以集中資源，全力專注於公司最具實力的淨水領域，從以下三個方面進一步提升雲米愛水的品牌影響力。首先，我們將加強與策略夥伴的合作，充分發揮淨水器超級工廠的競爭優勢。

Second, we will increase our water purification products' domestic market penetration, continuing to lead healthy mineral water trend and promoting access for household users. Third, we will actively expand in key overseas markets such as the Northern America and Southeast Asia markets to promote Viomi's global strategy, enable families abroad to enjoy fresh and healthy water through our products.

二是加大淨水產品國內市場滲透力度，持續引領健康礦泉水潮流，推動家庭用戶普及。第三，我們將積極拓展北美、東南亞等海外重點市場，推動雲端米的全球化策略，讓海外家庭透過我們的產品享受新鮮、健康的水。

Hunter Diamond, Diamond Equity Research.

亨特戴蒙德，鑽石股票研究。

Congratulations on the results. Some of my questions were already answered, but I have a few more. My first question was, what are the expected impacts of the extended filter lifespan technology on customer retention and recurring revenue, considering the reduced need for frequent filter replacements?

祝賀結果。我的一些問題已經得到解答，但我還有一些問題。我的第一個問題是，考慮到頻繁更換過濾器的需求減少，延長過濾器壽命技術對客戶保留和經常性收入的預期影響是什麼？

Well, through the application of AI technology, we hope to enhance the customer experience, increase the acceptance of water purifiers and reduce the cost of water purification. The increasing installed base will bring in recurring revenue from consumables. According to our observation, the market size and the penetration rate of China's household water purifier market maintained a low level for a long time. Lots of customers switch to other ways to get purified water and do not change the filter mainly because of the frequently changing filters, causing a lot of problems and extra costs.

那麼透過AI技術的應用，我們希望能提升顧客體驗，提高淨水器的接受度，降低淨水成本。不斷增加的安裝基數將為消耗品帶來經常性收入。根據我們的觀察，中國家用淨水器市場的市場規模和滲透率長期維持在較低水準。許多客戶轉用其他方式獲得純淨水而不更換過濾器，主要是因為頻繁更換過濾器，造成很多問題和額外費用。

This is due to a low degree of product intelligence, so that customers cannot have a clear expectation of the lifespan of the filters and cannot replace the filters by themselves. We can change it. Let's just take 1,200 gallon Kunlun AI Water Purifier, for example. It's one of our best-selling product. It comes from two filters.

這是由於產品智慧化程度較低，導致客戶無法對過濾器的使用壽命有明確的預期，也無法自行更換過濾器。我們可以改變它。我們就以1200加侖的崑崙AI淨水器為例。這是我們最暢銷的產品之一。它來自兩個過濾器。

One is the composite filter with a two-year lifespan. Selling price is around RMB300, and then the other is RO filter with average lifespan of five to six years. Selling price is around RMB900. For a family with daily usage of the water of 10 liters water, assuming they are using the water purifier for eight years, the annual cost for the filters is less than RMB230.

一種是複合過濾器，使用壽命為兩年。售價在300元左右，另一種是RO濾芯，平均壽命五到六年。售價約900元。對於日常用水量10公升水的家庭，假設使用淨水器八年，一年的過濾器費用不到230元。

This is very attractive and has obviously advantage comparing to bottle water. You can do one click to make the water through the APP, change the filter by DIY with three seconds. It's pretty simple and easy. We believe it will bring more and more people to purchase and continue to use water purifiers, increasing the installation rate and guarantee an acceptable customer consumption.

這非常有吸引力，與瓶裝水相比具有明顯的優勢。透過APP一鍵制水，三秒DIY更換濾芯。這非常簡單易行。我們相信這將吸引越來越多的人購買並繼續使用淨水器，提高安裝率並確保客戶的消費可以接受。

In short, at Viomi, we admit AI for Better Water, using AI technology to make better water, and durable, reliable products, promoting the customers' increasing healthy awareness and allow more customers to use AI purifiers to improve the quality of the living, further improve the penetration rate of the household market, in the meanwhile bring high-quality and sustainable scale growth for the company.

總而言之，在雲米，我們認同“AI for Better Water”，用AI技術製造更好的水和耐用、可靠的產品，促進客戶健康意識的增強，讓更多的客戶使用AI淨水器來提高生活品質，進一步提高家居市場滲透率，同時為公司帶來高品質、可持續的規模成長。

And my next question was, can you provide more details on Viomi's omnichannel marketing and service supporting the expansion into international markets, particularly the US where competition is very strong?

我的下一個問題是，您能否提供更多有關雲端米全通路行銷和服務支援國際市場擴張的詳細信息，特別是競爭非常激烈的美國市場？

All right. Thank you. That's a very good question. Regarding the China expansion with our existing omnichannel marketing and solid capability combined with our accumulated strength in water purification manufacturing, R&D and the product strength will help us to explore the North American market. At present, we have both domestic marketing and aftersales service systems covering both online and offline channels, including the sales channels of mainstream e-commerce platforms as well as live streaming sales on new media platforms. We are also actively expanding the overseas market.

好的。謝謝。這是一個非常好的問題。對於中國的拓展，我們現有的全通路行銷和雄厚的實力，結合我們在淨水製造、研發和產品方面累積的實力，將有助於我們開拓北美市場。目前，我們在國內擁有覆蓋線上線下管道的行銷和售後服務體系，包括主流電商平台的銷售管道以及新媒體平台的直播銷售。我們也積極拓展海外市場。

Besides the original European and Southeast Asian market, we are taking steps to expand the North American market. We see that the household water purifier in North America has great potential and also it's a great challenge. We have the industrial-leading gigafactory as our strong quality assurance, using AI technology to develop water purifiers. Our overseas users can also download the APP for device management, real-time monitoring the water quality and usage, DIY replacement of the filters, reducing the maintenance cost. Meanwhile, we have enriched reserves of technology to embrace customized product development demand around the world, all of which has built up solid support for Viomi to expand in the global market.

除了原有的歐洲和東南亞市場外，我們正在採取措施拓展北美市場。我們看到北美的家用淨水器有很大的潛力，同時也是一個很大的挑戰。我們擁有業界領先的超級工廠作為強而有力的品質保證，利用AI技術開發淨水器。我們的海外用戶還可以下載APP進行設備管理，即時監控水質和使用情況，DIY更換過濾器，降低維護成本。同時，我們擁有豐富的技術儲備，能夠滿足全球客製化產品開發需求，這些都為雲米拓展全球市場奠定了堅實的支撐。

And that concludes our question-and-answer session. I would like to turn the conference back over to management for any closing comments.

我們的問答環節到此結束。我想將會議轉回管理層以徵求結束意見。

Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact us through the contact information on our website or our Investor Relationship Consultant, The Piacente Group. Thank you. Goodbye.

好的。再次感謝您今天加入我們。如果您還有其他疑問，請隨時透過我們網站上的聯絡資訊或我們的投資者關係顧問 The Piacente Group 與我們聯繫。謝謝。再見。

Thank you.

謝謝。

Thank you. Bye-bye.

謝謝。再見。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。