Viomi Technology Co Ltd (VIOT) 2024 Q4 法說會逐字稿

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 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股份有限公司 2024 年下半年及全年財報電話會議。此時，所有參與者都處於只聽模式。今天的電話會議正在錄音。現在我會把電話轉給主持人、公司投資人關係總監 Claire Ji 女士。請繼續，克萊爾。

Hello everyone and welcome to Viomi Technology Company Limited 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 I post it online. You can download the earnings price release and sign up for the company's email distribution list by visiting the IR session of the company's website at ir.viomi.com. Participating in today's call areMr. 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 the Q&A session.

大家好，歡迎參加雲米科技股份有限公司2024年下半年及全年業績電話會議。提醒一下，本次會議正在錄製中。該公司的財務和經營結果已在今天早些時候的新聞稿中發布，我將其發佈在網上。您可以透過造訪公司網站 ir.viomi.com 的 IR 專區下載收益價格報告並註冊公司的電子郵件分發清單。參加今天電話會議的有：陳小平，創辦人、董事長兼執行長；以及我們的資本和投資部主管 Sam Yang 先生。公司管理階層將以準備好的發言開始會議，並以問答環節結束會議。

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 risk and uncertainties. As such, the company's actual results may be materially different from the views expressed today.

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。因此，該公司的實際結果可能與今天表達的觀點有重大差異。

Further information regarding this and other risks and uncertainties is included in the company's annual report on Form 20-F and other failings of failed with the US Securities and Exchange Commission. The company does not assume any obligation to obtain any forward-looking statements, except as required by law.

有關此風險和其他風險及不確定因素的更多資​​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失敗案例中。除法律要求外，本公司不承擔取得任何前瞻性陳述的義務。

Please also know that Viomi means earnings press release and this conference call include discussion of an audited GAAP financial information as well as an audited non-GAAP financial measures. In addition, well means press release contains a reconciliation of the audited non-GAAP measures to an audited 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 let's go ahead.

另請注意，Viomi 意味著收益新聞稿，本次電話會議包括討論經審計的 GAAP 財務資訊以及經審計的非 GAAP 財務指標。此外，新聞稿還包含經審計的非 GAAP 指標與經審計的最直接可比較 GAAP 指標的對帳。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，隨後立即提供英文翻譯。陳先生，我們繼續。

(spoken in Chinese)

（用中文說）

Thank you, Mr. Chen. I'll quickly translate our form remarks before discussing our financial performance for the second half and the full year of 2024.

謝謝陳先生。在討論我們 2024 年下半年和全年的財務表現之前，我將快速翻譯我們的表格評論。

Hello, everyone. Thank you for joining us today on our earnest conference call for the second half and the full year of 2024. On August 31, 2024, we successfully completed our business reorganization, marking a pivotal milestone for Wyoming as we sharpen our focus on our cool home water solutions. This strategic shift has driven our strong performance in 2024, with a full-year net revenue reaching RMB2.1 billion and income from operations totaling RMB156.3 million, both existing our previous guidance. Revenues from home water solutions grew by 39% year over year, significantly fueling our overall business expansion. Additionally, we enhanced operational efficiency, achieving a net income of RMB62.3 million, reversing the losses reported in the past two years. As we move forward, Viomi is back on a fast track to high quality growth and is well positioned to seize new opportunities in the market.

大家好。感謝您今天參加我們 2024 年下半年和全年的認真電話會議。2024 年 8 月 31 日，我們成功完成業務重組，這標誌著懷俄明州的關鍵里程碑，因為我們將更加專注於家用冷水解決方案。這項策略轉變推動了我們在 2024 年的強勁業績，全年淨收入達到人民幣 21 億元，營業收入總計人民幣 1.563 億元，均符合我們先前的預期。家庭用水解決方案的收入年增39％，大大推動了我們的整體業務擴張。此外，我們提升了營運效率，實現淨利6,230萬元，扭轉了過去兩年的虧損局面。隨著我們不斷前進，雲米已重回高品質成長的快車道，並已準備好抓住市場的新機會。

With growing public awareness of the importance of healthy drinking water and a supportive policies fostering product innovations, the home water purification market presents huge opportunities, leveraging over a decade of deep expertise in the water purification industry. Viomi remains committed to continuous product innovation and aims to redefine home water purification through AI technology.

隨著大眾對健康飲用水重要性的認識不斷提高，以及支持政策促進產品創新，家庭淨水市場呈現出巨大的機遇，並充分利用了我們在淨水行業十多年的深厚專業知識。雲米始終致力於持續的產品創新，旨在透過人工智慧技術重新定義家庭淨水。

With our comprehensive product portfolio ranges from point of use, our series to whole house softening and purification solutions. Our advanced features, equipped with under the sink and installation free products such as natural mineral water infusion, instant heating and cooling, and ice making empower users with real-time water quality monitoring, proactive filter replacement reminders, and seamless one-click reordering through our app.

我們的產品組合範圍廣泛，從使用點、系列到整個房屋軟化和淨化解決方案。我們的先進功能配備了水槽下免安裝產品，如天然礦泉水注入、即時加熱和冷卻以及製冰，使用戶能夠即時監測水質、主動提醒過濾器更換，並透過我們的應用程式進行無縫一鍵重新排序。

Furthermore, our intelligent self-claiming water circuit technology supported by AI diagnostics, greatly expansive future lifespan, and reduces usage costs, enhancing both efficiency and sustainability.

此外，我們的智慧自控水路技術由AI診斷支持，大大延長了未來的使用壽命，並降低了使用成本，提高了效率和永續性。

By addressing a wide range of household water use scenarios and catering to diverse drinking water needs across the global market, Viomi provides a smarter, more reliable and efficient water purification experience for consumers worldwide.

透過解決廣泛的家庭用水場景並滿足全球市場多樣化的飲用水需求，雲端米為全球消費者提供更智慧、更可靠、更有效率的淨水體驗。

Our August 2024 business restructure, swiftly streamline our organization, comprehensively improve our operational efficiency, and sharpen our focus on water home water solution business, leveraging our core strengths to drive sustainable growth. We established the IPMI, which unifies our products, channel, and brand strategies, and a comprehensive marketing framework. But prioritizing consumer experience and aligning resources with market demand, we have strengthened the well means brand awareness expanded by our market share in the water purification industry.

我們於2024年8月進行業務重組，迅速精簡組織，全面提升營運效率，並更加專注於家庭用水解決方案業務，利用我們的核心優勢推動永續成長。我們建立了IPMI，統一了我們的產品、通路和品牌策略以及全面的行銷框架。但我們以消費者體驗為中心，根據市場需求調整資源，透過擴大淨水器產業的市場份額，進一步強化了品牌知名度。

In the domestic market, Viomi leads the healthy mineral water trend. The first half of 2024 saw the launch of Wey Quantum mineral AI water purifier, integrating advanced AI technology to optimize the purification process, featuring an innovative AI-powered mineralized filter technology. It ensures the sustained release of beneficial minerals. This produces purified water with a mineral composition closely resembling natural mineral water, providing our users with fresh mineral-rich water at home.

在國內市場，雲米引領健康礦泉水潮流。2024年上半年推出WEY量子礦物質AI淨水器，融合先進的AI技術優化淨化過程，採用創新的AI礦化過濾技術。它確保有益礦物質的持續釋放。這樣就能生產出礦物質成分與天然礦泉水非常相似的純淨水，為我們的使用者提供家中富含礦物質的新鮮水。

During the 2024 Double 11 Shopping Festival, our AI water purification ranked fourth, fifth, and the ninth on the brand leader board of the Douyin, Pinduoduo, and the [Tianao] platforms respectively, further reinforcing our brand influence.

2024年雙11，AI淨水器在抖音、拼多多、天奧平台品牌排行榜分別排名第四、第五、第九，品牌影響力進一步提升。

In North America, we introduced the Vortex series of under the sync RO water purifiers designed for users who value convenience and efficiency. [Itself] installation feature has been well received, with over 80% of users reporting a smooth installation process average only 20 minutes. And the Vortex tankless design and the DIY filter replacements can greatly save place and time for users. A one-to-three wastewater ratio and a four year long-lasting filter lifespan, enhance filtration efficiency, reduce water waste, and lower maintenance costs delivering a superior user experience. This product made a strong international debut on the Kickstarter crowdfunding platform on November 5, 2024, surpassing its founding goal on the very first day with 168 backers, contributing over 1,200% of the target. Following this success.

在北美，我們推出了Vortex系列同步RO淨水器，專為重視便利性和效率的使用者而設計。 [其本身]安裝功能受到了廣泛好評，超過 80% 的用戶報告安裝過程順利，平均只需 20 分鐘。而且Vortex無水箱設計和DIY濾芯更換可以為使用者大幅節省空間和時間。一比三的廢水比例和四年的長效過濾器壽命，提高了過濾效率，減少了水浪費，降低了維護成本，提供了卓越的用戶體驗。該產品於 2024 年 11 月 5 日在 Kickstarter 眾籌平台上強勢亮相，在國際上首次亮相，第一天就超越了其創始目標，獲得了 168 名支持者，貢獻率超過目標的 1,200%。繼此成功之後。

The Vortex series officially commenced sales on Amazon in the US on December 16, 2024, receiving high recognition and the positive feedback from strong consumer demand with. To further solidify our presence in the global market, Viomi participated for the first time in CES 2025 in Las Vegas in January. Our intelligent home water solutions garnered widespread recognition from industry experts and attendees, reinforcing Viomi's reputation as a smart home water solutions innovator.

Vortex系列於2024年12月16日在美國亞馬遜正式開售，並獲得了消費者的高度認可和強烈需求的正面回饋。為了進一步鞏固我們在全球市場的地位，雲米於 1 月首次參加了在拉斯維加斯舉行的 CES 2025。我們的智慧家居水解決方案獲得了行業專家和與會者的廣泛認可，鞏固了雲端米作為智慧家居水解決方案創新者的聲譽。

In addition, we made significant stride in building strategic partnerships. First, we have renewed our agreement with Xiaomi for the next three years. We are following our commitment to stable a mutual beneficial collaboration. By leveraging our prospective strengths, we aim to boost our business penetration in China.

此外，我們在建立策略夥伴關係方面也取得了重大進展。首先，我們與小米續簽了未來三年的協議。我們恪守承諾，建立穩定互利的合作關係。透過利用我們的潛在優勢，我們的目標是提高在中國的業務滲透率。

Furthermore, we have strengthened our cooperation with Jingdong, reaching a joint marketing agreement for the quantum series products to promote healthy drinking water. In March 2025, we forged a strategic partnership with Malaysia's leading home appliance retailer. Together, we will focus on expanding sales channels and promoting Viomi water purification products to drive deeper market penetration in Malaysia.

此外，我們加強與京東的合作，達成量子系列產品的聯合行銷協議，共同推廣健康飲水。2025年3月，我們與馬來西亞領先的家電零售商建立了策略合作夥伴關係。我們將共同致力於擴大銷售管道和推廣 Viomi 淨水產品，以推動其在馬來西亞的更深層市場滲透。

Viomi's water purifier Gigafactory is fundamental to our manufacturing and technology development capabilities. Featuring a highly integrated industrial chain and highly automated production line with 100% in-house manufacturing and the food traceable quality control systems with core components. We maximize economics of scale. To strengthen innovation, we have established two major laboratory systems focused on advanced technology research and product compliance and reliability. These [laboratories] made the stringent test standards of various global markets, allowing us to rapidly adapt to evolving and diversify market demands while maintaining constant and reliable product performance.

Viomi 的淨水器超級工廠對我們的製造和技術開發能力至關重要。擁有高度整合的產業鍊和高度自動化的生產線，100%自主生產，核心零件擁有食品可追溯的品質控制系統。我們最大限度地發揮規模經濟效益。為加強創新，我們建立了先進技術研究和產品合規性和可靠性兩大實驗室體系。這些[實驗室]制定了全球各市場的嚴格測試標準，使我們能夠快速適應不斷變化和多樣化的市場需求，同時保持產品性能的持續可靠。

As of today, Viomi has failed nearly 1,800 global patent applications, significantly outpacing the industry average. Looking forward, powered by the dual engines of advanced manufacturing and the continuous innovation, we are well positioned to further elevate our competitive edge in the water purification industry.

截至目前，雲米已在全球申請了近 1,800 項專利但均失敗，遠超過行業平均水平。展望未來，在先進製造和持續創新的雙引擎驅動下，我們有能力進一步提昇在淨水產業的競爭優勢。

Viomi is embarking on a new chapter as we move into 2025, guided by our vision of global water and our commitment to providing fresh, healthy drinking water to users worldwide. To achieve this, we will focus on four key strategic initiatives.

隨著我們邁入 2025 年，Viomi 開啟了新的篇章，以我們在全球水資源方面的願景和為全球用戶提供新鮮、健康飲用水的承諾為指導。為實現這一目標，我們將專注於實施四項關鍵策略措施。

First, we will strengthen our domestic market presence through trading policy incentives and advancements in AI technology to accelerate product innovation, meeting consumers growing demand for an enhanced lifestyle.

首先，我們將透過貿易政策激勵和人工智慧技術的進步來加強我們的國內市場地位，以加速產品創新，滿足消費者對改善生活方式日益增長的需求。

Second, we will drive international market expansion, further penetrating key markets such as North America and Southeast Asia. Through regions specific product development and enhanced brand positioning, we aim to elevate Viomi's international market visibility.

二是推動國際市場拓展，進一步滲透北美、東南亞等重點市場。透過針對特定區域的產品開發和強化品牌定位，我們旨在提升 Viomi 的國際市場知名度。

Third, we will continue to fortify our water purification product portfolio, maintaining an unwavering commitment to research and development. By leading industry innovation, we strive to provide smarter, healthier water purification solutions for consumers worldwide.

第三，我們將繼續加強我們的淨水產品組合，堅定不移地致力於研發。透過引領產業創新，我們致力於為全球消費者提供更智慧、更健康的淨水解決方案。

Fourth, we will continue to deepen our laboratory with strategic partners maximize the advantages of water purification gigafactory. This will enable us to achieve synergy in growth and profitability, ultimately creating long-term value for both our customers and shareholders.

第四，我們將持續深化實驗室與策略夥伴的合作，最大限度地發揮淨水超級工廠的優勢。這將使我們實現成長和獲利的協同效應，最終為我們的客戶和股東創造長期價值。

Thank you. That concludes our founder's remarks. I will now turn the call over to our Head of Capital and Investment Department, Mr. Sam Yang, and discuss our financial performance.

謝謝。這就是我們創辦人的講話。現在，我將把電話轉給我們的資本和投資部主管 Sam Yang 先生，討論我們的財務表現。

Thank you. Thank you, Mr. Chen and Claire. Thank you to everyone for joining us today. Before delving into details, I would like to address the impact of business organization on our financial results. In August 2024, we completed a strategic reorganization that involves diversity IOT at home portfolio products. Excluding range hoods, gas stoves, and water heaters, which we refer to as the diversity business.

謝謝。謝謝陳先生和克萊爾。感謝大家今天的參加。在深入探討細節之前，我想先談談業務組織對我們財務表現的影響。2024年8月，我們完成了涉及多元化家居物聯網產品組合的策略重組。不包括抽油煙機、瓦斯爐、熱水器，我們稱之為多元化業務。

As a result, The diversity business has been deconsolidated from our financials. And it's a historic financial result now report as discontinue operations in our consolidated financial statements. Unless otherwise state, all financial and non-GAAP figures discussed today are presented on a continuing business basis.

因此，多元化業務已從我們的財務報表中分離出來。這是一個歷史性的財務結果，現在在我們的合併財務報表中報告為停止經營。除非另有說明，否則今天討論的所有財務和非公認會計準則數據均以持續業務為基礎呈現。

With that overview established, let's review our audited financial result for the second half of 2004. We achieved net revenues of RMB1.2824 billion, an increase of 42.8% from RMB897.9 million for the second period of 2023. This growth was primarily driven by the expansion of our home water system business. To better reflect our strategic focus, we have reclassed our revenue streams through -- into three categories effective. in the second half of 2024, home water season included the revenue from our smart water purification products. Water heaters, or kettles, water quality meters, and other related business consumables includes revenues from various water filters designed from smart water purifiers.

有了上述概述，讓我們來回顧一下 2004 年下半年的審計財務結果。我們實現淨收入12.824億元人民幣，較2023年第二季的8.979億元成長42.8%。這一增長主要得益於我們家庭供水系統業務的擴張。為了更好地反映我們的策略重點，我們將收入來源重新劃分為三類。 2024年下半年家庭用水季包含了我們智慧淨水產品的收入。熱水器，或水壺、水質計和其他相關業務消耗品包括來自智慧淨水器設計的各種濾水器的收入。

Teaching appliances and others includes revenues from range food, gas stocks, and other small appliances, as well as installation services for filming products.

教學用具及其他包括牧食、瓦斯庫存、其他小家電收入、拍攝產品安裝服務收入。

l look at the performance across the three categories. Revenues from home water systems were RMB925.7 million, an increase of 58.2% from RMB585.2 million for the same period of 2023. Primarily due to the increased demand of home water season products. Revenues from consumables were RMB136.7 million, a decrease of 24.6% from RMB1.1812 billion for the same period of 2023. 1,181,200,000 primarily due to the decreased sales of water purifier files sold to Xiaomi. Partially offset by an increase in demand for the brand filters. Revenues from kitchen appliances and others were RMB220 million, an increase of 67.2% from RMB131.5 million for the same period of 2023, primarily due to an increased sales catering appliances sold to Xiaomi.

我看一下這三個類別的表現。家用淨水系統收入為人民幣9.257億元，較2023年同期的人民幣5.852億元成長58.2%。主要是由於家庭用水季節產品的需求增加。耗材收入為人民幣1.367億元，較2023年同期的人民幣11.812億元下降24.6%。 1,181,200,000主要是因為銷售給小米的淨水器文件銷售減少所致。部分抵消了品牌過濾器需求的增加。廚房電器及其他業務收入為 2.2 億元，較 2023 年同期的 1.315 億元增長 67.2%，主要由於銷售給小米的餐飲電器銷售額增加。

Gross profits were RMB289.5 million compared to RMB294.5 million for the same period of 2023. Gross margin was 22.6% compared to 32.8% for the same period of 2023. The decrease was primarily due to a higher revenue contribution from low-gross margin products, leading to a shift in the product mix during the transition period. Total operating expenses were RMB221.5 million, an increase of 6.1% from RMB208.8 million for the same period of 2023 due to higher personnel expenses during strategic transition period as well as increased inputs at the market.

毛利為人民幣2.895億元，而2023年同期為人民幣2.945億元。毛利率為 22.6%，而 2023 年同期為 32.8%。下降的主要原因是低毛利率產品的收入貢獻增加，導致過渡期間產品結構發生變化。總營業費用為人民幣2.215億元，較2023年同期的人民幣2.088億元增長6.1%，原因是戰略轉型期間人員費用增加以及市場投入增加。

In greater details, R&D expenses were RMB67.7 million, a decrease of 9.9% from RMB75.1 million for the same period of 2023, mainly due to a lower depreciation and amortization expenses and personal expenses, partially offset by increased the share-based compensation expenses.

具體而言，研發費用為人民幣 6,770 萬元，較 2023 年同期的人民幣 7,510 萬元下降 9.9%，主要原因是折舊及攤銷費用和個人費用減少，但部分被股權激勵費用的增加所抵消。

Selling and marketing expenses were RMB140 million, up RMB14.6 million, an increase of 9.6% from RMB104.6 million for the same period of 2023 mainly due to higher online promotion fees.

銷售及行銷費用為人民幣1.40億元，較2023年同期的人民幣1.046億元增加人民幣1,460萬元，增長9.6%，主要由於線上推廣費用增加。

General and administrative expenses were RMB39.3 million, an increase of 34.8% from RMB29.1 million for the same period of 2023, primarily due to higher management personnel expenses. Partially offset by a decrease in estimated allowance for accounts and notes receivables.

一般及行政開支為人民幣 3,930 萬元，較 2023 年同期的人民幣 2,910 萬元增長 34.8%，主要由於管理人員開支增加。部分被應收帳款和應收票據準備金的減少所抵銷。

Net income attributable to ordinary shareholders of the company was RMB57.4 million. And then the non-GAAP net income reached RMB63.3 million. This marks a significant turnaround for the same period of 2023.

歸屬於公司普通股股東的淨利為5,740萬元。非美國通用會計準則淨利達6,330萬元。這與 2023 年同期相比出現了重大轉變。

When we report a net loss of RMB29.7 million and RMB30.9 million respectively. This improvement was primarily driven by strategic reorganization that involve divesting certain laws, making business, and focus or more advantaged sectors to enhance profitability.

當我們分別報告淨虧損人民幣2970萬元和人民幣3090萬元。這種改善主要得益於策略重組，包括剝離某些法律、開展業務以及集中或更有優勢的行業以提高獲利能力。

Additionally, our balance sheet remains healthy. As of December 31, 2024, The company had a cash and a cash equivalent of RMB1.262 billion. Restricted cash RMB141.3 million, short-term deposit of RMB115 million and short term investment of RMB72.5 million.

此外，我們的資產負債表依然健康。截至2024年12月31日，本公司持有現金及現金等價物12.62億元。受限現金1.413億元，短期存款1.15億元，短期投資7,250萬元。

Next, let's brief discuss the key financial result for the full year of 2024. Net revenues were RMB2.119 billion, an increase of 29.3% from RMB1.6387 billion for 2023.

接下來，我們來簡單討論一下2024年全年的關鍵財務表現。淨營收為人民幣21.19億元，較2023年的人民幣16.387億元成長29.3%。

Revenues from water home water systems were RMB1.4984 billion, an increase of 39% of RMB1.779 billion for 2023. Revenues from consumables were RMB277.7 million, a decrease of 14.5% from RMB324.7 million for 2023. Revenues from kitchen appliances and others were RMB342.9 million, an increase of 45.2% from RMB236.1 million for 2023.

水務家庭水系統收入為人民幣14.984億元，較2023年的人民幣17.79億元成長39%。消耗品收入為人民幣2.777億元，較2023年的人民幣3.247億元下降14.5%。廚房電器及其他業務收入為人民幣3.429億元，較2023年的人民幣2.361億元成長45.2%。

Gross profit was RMB548.7 million compared to RMB522 million for 2023 costs margin was 25.9% compared to 31.9% for 2023. Total operating expenses were RMB424.9 million, an increase of 1% from RMB420.8 million for 2023.

毛利為人民幣 5.487 億元，而 2023 年為 5.22 億元；成本利潤率為 25.9%，而 2023 年為 31.9%。總營業費用為人民幣4.249億元，較2023年的人民幣4.208億元成長1%。

In greater details, R&D expenses were RMB142.9 million, a decrease of 4% from RMB148.9 million for 2023. Selling and marketing expenses were RMB211.2 million, a decrease of 1.6% from RMB214.6 million for 2023. General and administrative expenses were RMB17.8 million, an increase of 23.5% from RMB57.3 million for 2023.

具體而言，研發費用為人民幣1.429億元，較2023年的人民幣1.489億元下降4%。銷售及行銷費用為人民幣2.112億元，較2023年的人民幣2.146億元減少1.6%。一般及行政開支為人民幣 1,780 萬元，較 2023 年的 5,730 萬元成長 23.5%。

Net income attributable to ordinary shareholders of the company was RMB33.4 million. And a non-GAAP net income attributable to ordinary shareholders of the company was RMB79.9 million. Thank you.

歸屬於公司普通股股東的淨利為3,340萬元。非美國通用會計準則下歸屬於公司普通股股東的淨利為7,990萬元。謝謝。

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

好的。我們的準備好的演講到此結束。我們現在開始問答環節。我們的創辦人陳先生；楊先生將出席會議並回答問題。接線員，請繼續。

(Operator Instructions) Jinxin Lee, CICC.

（操作員指示） Jinxin Lee，CICC。

Hey, thanks for the management and congratulations for the good performance. I'm Li Jinxing from CICC, and I have two questions about the results, and I'll ask them one by one.

嘿，感謝管理層，並祝賀你的出色表現。我是中金公司的李金星，關於這個結果我有兩個問題，我一一問一下。

So the first question is after the divestment of the IOT business in 2024, we see that focuses more on water solution. So what adjustments have been made in business operation and organizational management in the second half of 2024, and what are the results so far? Yeah, that's my first question.

因此，第一個問題是，在 2024 年剝離物聯網業務後，我們看到公司將更專注於水解決方案。那麼2024年下半年在業務營運和組織管理上做了哪些調整，目前成效如何？是的，這是我的第一個問題。

Yeah, thank you, Jinxin. Let me get to your question and The strategic reorganization we undertook in 2024 was not a sudden decision. It was a progress that began in the second half of 2023. During that time, we elevated our water business to a strategic business unit. This move was crucial.

是的，謝謝你，金鑫。讓我來回答你的問題，我們在 2024 年進行的策略重組並不是突然的決定。這是從2023年下半年開始的進展。在此期間，我們將水務業務提升為策略性業務部門。此舉至關重要。

We have established a comprehensive manufacturing R&D and distribution systems that are operated in differently. And leverage our strength in water purification, automatically enhancing our competitiveness in this sector.

我們建立了完善的生產製造研發和分銷體系，並以不同的方式運作。並利用我們在水淨化方面的優勢，自動增強我們在該領域的競爭力。

By the second half of 2024, we completed a strategic reorganization by divesting certain IOT at home business and related assets. We decided to retain our water purification business and a part of our kitchen appliances line to narrow our focus and streamline operations.

到2024年下半年，我們透過剝離部分家庭物聯網業務及相關資產完成了策略重組。我們決定保留我們的淨水業務和部分廚房電器產品線，以縮小我們的重點並簡化營運。

In addition, we launched the integrity product marketing system. All we can say it's the IPMS. This system brings together our product channel and the brand strategies and the one comprehensive marketing framework.

此外，我們也推出了誠信產品行銷體系。我們只能說它是 IPMS。該系統將我們的產品管道和品牌策略以及一個全面的行銷框架結合在一起。

I prioritize our customer experience and aligning our resources within the market demand and we have been able to strengthen our brand awareness and expand the market share. In the water purifier industry, this strategic shift has a very strong financial performance.

我優先考慮客戶體驗並根據市場需求調整資源，這樣我們就能夠加強品牌知名度並擴大市場份額。在淨水器產業，這項策略轉變有著非常強勁的財務表現。

Our full-year net revenue reached the RMB2.1 billion with the income from operation totaling RMB155 million both exceed our previous guidance. Normally, revenue from home waters seasons grew by 37.5% year over year, significantly driving our overseas overall business goal.

我們的全年淨收入達到人民幣21億元，營業收入總計人民幣1.55億元，都超出我們先前的預期。通常情況下，本土水域季節營收年增37.5%，顯著推動了我們海外整體業務目標的實現。

Furthermore, we improved our operational efficiency. Our overall operating expenses ratio declined by about 6%. And apart from the temporary increase for the personal expenses related to the restructuring, we achieved a net income of RMB62 million, reversing the losses that we experienced for the past two years.

此外，我們也提高了營運效率。我們的整體營運費用率下降了約6%。扣除重組帶來的個人費用暫時增加外，實現淨利6,200萬元，扭轉了連續兩年的虧損局面。

In conclusion, the completion of the regular organization enables us to focus more on the needs of water purification for the users and enhance our product strength to build the best-selling natural mineral water. In the meantime, we will accelerate the channel expansion and globalization to advance the vision of global water. Thank you. Next question.

綜上所述，正規化的組織架構的建立，讓我們能更重視使用者的淨水需求，提升產品力，打造暢銷的天然礦泉水。同時，我們將加速通路拓展和全球化佈局，推動全球水資源願景。謝謝。下一個問題。

Okay, thank -- yeah, thank you. And my second question is, could you give us the breakdown of the home water solution in 2024? And how much did the volume and price increase respectively? And is there any new product plans for 2025? Yeah, that's my second question. Thank you.

好的，謝謝——是的，謝謝你。我的第二個問題是，您能否提供我們2024年家庭供水解決方案的細項分類？成交量和價格分別上漲了多少？2025 年有什麼新產品計畫嗎？是的，這是我的第二個問題。謝謝。

A good question. Let me just to answer your question. To better reflect our strategic focus, we made some changes on how we categorize our revenues starting in the second half of 2024.

好問題。讓我來回答你的問題。為了更好地反映我們的策略重點，我們從 2024 年下半年開始對收入分類方式進行了一些更改。

First is our home water systems, which included our smart water purification products. Water heaters, water kettles, and the water collecting meters and similar items. This category makes up about 71% of our total revenue. And next we have the consumables. This is actually we bundle sales in the water purification and also, we sell it separately. And this part attributed to 30% of the total revenue.

首先是我們的家用供水系統，其中包括我們的智慧淨水產品。熱水器、水壺、集水錶及類似物品。此類別約占我們總收入的71％。接下來我們有消耗品。這實際上是我們將水淨化捆綁銷售，但同時也單獨銷售。這部分收入佔總收入的30%。

And the last we -- there's teaching appliances on the orders. This includes the revenue from range hood, gas stoves, and the small appliances. As well as installation services for the Viomi products. It brings about 60% of our total revenue.

最後，我們——訂單上有教學用具。這其中包括抽油煙機、瓦斯爐、小家電的收入。以及 Viomi 產品的安裝服務。它為我們帶來了約60%的總收入。

On a positive note, we kick off our Quinlan series water purifiers in the first half of 2024. With this middle to end -- to high actually, positioning, we have a very strong emphasis on the healthy drinking water, that is the mineral water and we have seen a noticeable increase in our DSP.

積極的一面是，我們將在 2024 年上半年推出 Quinlan 系列淨水器。透過這種從中端到高端的定位，我們非常重視健康飲用水，即礦泉水，並且我們已經看到 DSP 的顯著增長。

Looking ahead to 2024, 2025, we are excited for -- by the dipping our goal strategy. In the domestic market, we keep refined, middle to high and product line and focus on healthy and continue to enhance the equipment series.

展望 2024 年、2025 年，我們對制定目標策略感到興奮。在國內市場，我們堅持精品、中高端產品線，注重健康化，不斷提升裝備系列化。

During the Double 11, our AI water purifier ranked the fourth, fifth, and the ninth on the brand boards of the Douyin, Pinduoduo, and [Tianao] platforms respectively, further reinforcing our brand influence.

雙十一期間，我們的AI淨水器在抖音、拼多多、天奧平台品牌榜上分別排名第四、第五、第九，品牌影響力進一步增強。

On the international side, we plan to enhance our product lineup and focus on customized development tailor actually to the North America's customer and also cover the Southeast markets.

在國際方面，我們計劃增強我們的產品陣容，並專注於針對北美客戶的客製化開發，同時涵蓋東南亞市場。

This includes adding new features like ice making and instant cooling among others. At the same time, we expand to other key international markets. We're also localizing and promoting our existing product series to better meet the customer needs for the local. Thank you.

其中包括添加製冰和即時冷卻等新功能。同時，我們也向其他主要國際市場拓展。我們也在在地化和推廣我們現有的產品系列，以更好地滿足當地客戶的需求。謝謝。

Okay, thanks for the management.

好的，謝謝管理。

Brian Lantier, Zacks Small Cap Research.

Brian Lantier，Zacks Small Cap Research。

Good evening. Thank you. If I could ask a couple of questions on the expansion strategy. I guess first, how comfortable are you with the strategy in the US? And then second, regarding the expansion of Southeast Asia? Have you named the partner, the home appliance partner in Malaysia? And I guess second, will there be additional, will that be the strategy targeting additional Southeast Asian countries? Going forward, thank you.

晚安.謝謝。我可以問幾個有關擴張策略的問題嗎？我想首先，您對美國的戰略感覺如何？第二，關於東南亞的擴張？您有說出合作夥伴嗎，馬來西亞的家電夥伴？第二，是否會有其他策略，是否會針對其他東南亞國家？繼續前進，謝謝。

Yeah, thank you. Actually, because of our new vision is the global water. So the global waters is our new strategy. We choose to enter the US market and also, we have entered the Southeast Asian market. The first step actually we successfully launched the products actually Laptop 8 on the kickstarter, that is a great success.

是的，謝謝。實際上，因為我們的新願景是全球水。因此全球水域是我們的新戰略。我們選擇進入美國市場，同時，我們也進入了東南亞市場。第一步實際上我們在 Kickstarter 上成功推出了產品 Laptop 8，這是一個巨大的成功。

And we achieved 10 times our expectation. And following that as success, we introduced the two products to Amazon. And which has reached the high recognition from the customers and it's continued performance. It's good.

我們實現了預期的10倍。取得成功後，我們將這兩款產品引進了亞馬遜。並得到了客戶的高度認可和持續的表現。很好。

And talking about the other areas about the Southeast, we have established a strategic partnership with, the biggest, retailer in Malaysia. And this will bring us an ongoing good performance, we believe. And with that strategic cooperation and we are going to launch more and more new products to that new market.

談到東南部的其他地區，我們已經與馬來西亞最大的零售商建立了戰略合作夥伴關係。我們相信，這將為我們帶來持續良好的業績。透過這種策略合作，我們將向新市場推出越來越多的新產品。

Okay, great. And have you identified any long-term gross margin goals for the different revenue categories? For example, hot water systems, versus kitchen appliances and consumables? I'm assuming in the long run consumables will have the widest margin. As the gigafactory gains efficiency, but I'm not sure if you targeted or released or identified any of those gross margin goals in the long run?

好的，太好了。您是否確定了不同收入類別的長期毛利率目標？例如，熱水系統與廚房用具和消耗品？我認為從長遠來看消耗品的利潤空間最大。隨著超級工廠效率的提高，但我不確定您是否制定、發布或確定了長期毛利率目標？

Yeah, gross margin is crucial actually, as you may note that, we have obtain the average margin for the industry, the water purifier.

是的，毛利率實際上至關重要，正如您可能注意到的，我們已經獲得了淨水器行業的平均利潤率。

And we believe this course margin will become better this year because of the product matrix actually we are going to launch. And as I explained earlier that we are going to launch more and more Quinlan series which has a good cost margin for the customer and also for the market.

我們相信，由於我們即將推出的產品矩陣，今年的課程利潤率將會變得更好。正如我之前解釋的那樣，我們將推出越來越多的 Quinlan 系列，這些系列對客戶和市場都具有良好的成本利潤率。

Also, we have the consumables and this market is the gross margin for this category is -- it's very decent. So, we're going to keep And talk about the others, I think we are going to meet the average of the industry. Thank you.

此外，我們有消耗品，這個市場這個類別的毛利率非常可觀。因此，我們將繼續討論其他問題，我認為我們將達到行業平均水平。謝謝。

Great. Great, thank you.

偉大的。太好了，謝謝。

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

問答環節到此結束。我想將會議交還給管理層，以便他們發表任何補充或結束評論。

Okay, and Mr. Chen would like to give a conclusion. Mr. Chen, please go ahead.

好的，陳先生想給一個結論。陳先生，請講。

(spoken in Chinese)

（用中文說）

Okay, I'll briefly translate our founder's remark conclusion. And thanks to everyone attending our conference call right after we complete our restructuring and fully focused on the home water business.

好的，我簡單翻譯一下我們創辦人的發言結論。感謝大家在我們完成重組並全力專注於家庭供水業務後參加我們的電話會議。

We are using AI to upgrading our brand positioning. And we will invest more in the brand recognition promotion to increase our brand recognition globally and about our water purifier gigafactory. We have the most integrated industry lines and the most automated production lines among the industry. And we will continue to maximize the advantages of our water purifier gigafactory.

我們正在利用人工智慧來升級我們的品牌定位。我們將在品牌知名度推廣方面投入更多資金，以提高我們在全球的品牌知名度以及淨水器超級工廠的知名度。我們擁有業界最完整的產業線、自動化程度最高的生產線。我們將繼續最大限度地發揮淨水器超級工廠的優勢。

And also, we will keep fast speed on our overseas extension, in the major markets like the US, United States, and Southeast Asia. And in conclusion, home water business is very decent business and it's sustainable. It's for to meeting the healthy drinking demand of [main can] in a sustainable way. So we think it's the business everlasting for like [tender] and that's all.

同時，我們也將維持快速的海外擴張速度，主要拓展美國、美國、東南亞等市場。總而言之，家庭供水業務是一項非常不錯的業務，而且是可持續發展的。這是為了以可持續的方式滿足[主罐]的健康飲用需求。所以我們認為這是像[投標]那樣永恆的業務，僅此而已。

Thank you. And thank you once again for joining us today. If you have any further questions, please feel free to contact us through the contact information on our website or our investor relationship consultant, the PSNT Group.

謝謝。再次感謝您今天加入我們。如果您還有任何疑問，歡迎透過我們網站上的聯絡資訊或我們的投資者關係顧問 PSNT 集團與我們聯繫。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。