Half Year 2024 Viomi Technology Co Ltd Earnings Call

August 26, 2024

Hello, Ladies and gentlemen, thank you for standing by for <unk> Technology Co Ltd earnings Conference call for the first half of 2024 at this time all participants are in listen only mode. Today's conference call is being recorded.

I'd now like to turn the call over to your host Ms. Claire G.

Speaker Change: The IR director of the company. Please go ahead Claire.

Claire G.: Hello, everyone and welcome to allow me Technology Co limited earnings Conference call.

Speaker Change: For the first half of 2024, Although reminder, this program.

Speaker Change: We recorded the company's financial and operating results were issued in a press release earlier today.

Speaker Change: Okay. All right you can download the earnings I'm, sorry, not for the company's email distribution list I wasn't in the IR section of the company's website at IR, So valleys cellcom harder.

Mr. Found: Part of today's call I love to shop, no shock to find our chairman of the board of Directors and Chief Executive Officer and Mr. Found yeah. The head of our kept you on the status of the time in the company's management and well bring my prepared remarks, and the call will kind of who is the Q&A session.

Speaker Change: Before we continue that's know that today's discussion will contain forward looking statements made under the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.

Speaker Change: Forward looking statements and the work we have embraced and starting to affect the company's 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.

Speaker Change: One.

Speaker Change: Other filings as filed with the U S Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements, except as required by law.

Speaker Change: No that well make earnings press release and this conference call include discussions of Odyssey, South financial information about all of these non-GAAP financial measure.

Speaker Change: So well try to release contains a reconciliation of these non-GAAP measures.

Speaker Change: I'll take the most directly comparable GAAP measure.

Alexander I'm: I will now turn the call over to Alexander I'm, the CEO search evolution, Mr. Chen will deliver his remarks in Chinese followed immediately by English translation. Mr. Chang. Please go ahead.

Thank you.

Speaker Change: Well, then alright sounds like if you can't say.

Speaker Change: I mean, I was thinking if somebody an well let me start with the notion of Chi children.

Speaker Change: It goes down the part that I'm sure you guys aren't seeing Trimble team keeping me eat at all she may 10 minute, you'll glass Judy generally well then shouldn't go to each of you should've been lake crossing T's, because you can do there so it'll be more certification Tony syndrome, Michigan people, you'll find out how many vehicles that item Tmall davita because you guys are just.

Bob: Bob Tony It sounds like you end up I mean, I'm sure they'll eat issued a gentlemen, so sure she can be shut down in five initial jody on.

Sharon Lewis your line or indeed, noncash Geneva in Shanghai, Chengdu, Magnesia wise, and maybe chime in you'll clean well.

Well, then follow surely alcohol, that's where you're going.

J: J J.

Essentially all of the Sydney, China wage yoga, you see it and then be saying she Oh well then.

Speaker Change: Got it.

John: Do you see John sorry, biodiesel Jojo.

Speaker Change: Can you send a woman who I'm sure are teach all done quite so clear protein that you can say at 40 D. All pufendorf allocation Glen a question you know what you mean juncture I mean, if he does that also change the use of that acuity should all be seen Peter Duncan to.

And then Cooper to of course, I'm, sorry, Arnie, Sydney and somebody in Shanxi gene in the year will surely more cobalt by either selling in the ear to ear and cobalt, which only really been sort of towards what kind of time chili's grimoire totally kidding yourself. So that shows it shows all darn challenging even caught up also that you need I mean, Felicia Tien tsin competition.

Speaker Change: Shall I gave I told.

Speaker Change: Told her children, Amy Jo Malone or changing the Cheniere AI for better water to the U S. Usually centurylink what she won't go harder starting to say Hey go find me a woman.

Speaker Change: Yeah sure.

Speaker Change: Hello means yet heard about under training coaching being George I want to say I thought we cut our teeth with each of these you can call. The Tiger one that Shire Moshe talk about AI.

Speaker Change: As usual she can give you until I'm fishing interests really Josh if we go along.

Sheila: With that she wont yet she assured teaching compounding can you guess yugo S. E T O I sit with Huntington. She calls me Sheila commodity cause I'm, sorry, Louis switching gears usual thoughtful do the yen TV as she will show me chunky teaser 10, but it sure seems like I'm paying somewhere you could call shall machine from 10, Dr. Tien comes from what base you can teach them again he may sit on.

Speaker Change: C J define what you mean, gee, you're only or challenging.

Speaker Change: So why not stocking Oh, sorry, it's having them talking about them in court should or shouldn't handle image sensor you mean.

Speaker Change: Football Shin Oh Wow.

Speaker Change: Bob.

Speaker Change: William Portugal, Syngenta easily Jonathan Yeah, but can't gallon should usually it doesn't mean, you won't put them out for a minute.

Speaker Change: It is true that it did she come daughter, she went hunting teach understand what it means to <unk>, what's the chance to meet you clicked how old you tone chicken can usually does well when you say that.

Speaker Change: Scan comes from Fortune. She should have started with which is a high school right.

Speaker Change: I found it interesting that you mentioned.

Speaker Change: Well then.

Speaker Change: Let me quote unquote, yeah, Yeah, I think the Chi Tung Sundar.

Speaker Change: Maybe if you can call it like usual true quantum.

Speaker Change: We'll try to pay your tongue Tangshan shift. So you can only go each and then we cannot ship.

Speaker Change: So I don't know what that Italian that's warehouse in California.

Speaker Change: Many of you don't know who bought a piece.

Speaker Change: I mean as you can tell the timing of Coty adult Chi Tung.

Sure not to be in the mango Changzhou, China, what I, usually show atone coupon you said talking point about cooking challenging well gotcha, I would treat them and see if we could if I'm I'm guy good on shopping Tony Chan Me, a man, who will change will know who you sundar guns cause.

Speaker Change: Continuing to come out and you shouldn't see Joel sorry, attempting to solve its usual pattern isn't the only one change only agenda seems like how would you go down the antenna and he will buy one take Michigan, South Carolina, Illinois Gold would you tell them London kind of again pushing go so there's a lot of time and all the other in that JV and sometimes I'm getting dizzy genuine Lukas.

Chad Keetch: We should see good evening, Chad Keetch churches football So again, Gary Michel you plan to change all put to work.

Speaker Change: Basketball really Tien tsin, how are you two I haven't done that PMT Chi Tung watch hunger Hinging up 40, jesely tied out to that belief. They just didnt join me, Tom Horton Michelle Qi essential.

Chad Keetch: Linda.

Speaker Change: And Joe can be and thoughtful concordance had a child, who seem to work with them to call them our teach outs.

Speaker Change: I know you didn't attend.

Speaker Change: How do you want.

Tell me, how you want the company to pay $2 13 pool.

Speaker Change: We'll take what I'll call strategic Ocean teach them.

Speaker Change: Junior Chile image injuries. According to what else you may if you couldn't adhere timing really disturbing condition uhm can later deeming that should give people actually it's just isn't going to that are there.

Speaker Change: So it's gonna walk in parallel that came about and Don Healey E by wishes I need I mean, Peter came back after the way that these tobias essentially told or Joe Oh, So you really shouldn't consider anyway.

Speaker Change: Well water delayed draw any of that excuse me could you go through well known to the Leach I don't know what you're going to huge MTN call Jose well don't you see huge also hot haven't been particularly hot which I really like what am I you do show Gen show, what we've done in a corridor. That's all thought seriously about rate excuse me hard and going on at each annual should she says we'll teach him really change, which I couldn't watch John.

Speaker Change: Tricia you mean, well I would just say Jim since you for some time.

Speaker Change: What I was doing kind of housing.

Speaker Change: He taught us how actually Tom so he can he should that change or what have you done I wish I had something go put US insurance you can kind of say well then challenge fishy box at home, so that surgical bait boxes Greenwood extra she was in doubt.

Speaker Change: Well don't that I havent seen them play ball.

Speaker Change: Thank you Mr. Chang I will quickly translate Alexander Mark before discussing our financial performance for the first half of 2024.

Speaker Change: Hello, everyone. Thank you for joining us today on our earnings conference call for the first half of 2024 in the first half all the tiny 24, well implemented our focused strategy prioritizing high quality development consistently enhancing our operating performance and it was time to or not.

Speaker Change: Privatization, but physically by concentrating on our along can you just category.

Speaker Change: Coconut water solution products revenue grew by 13% year over year, well, we further optimized our product structure I'll go.

Speaker Change: Results are below gross margin continues to improve 204 point.

Speaker Change: But then for the first half of 2020 for sometime and 2% for the prior year period.

Speaker Change: Great cost control measure led to year over year decline in.

Speaker Change: Operating expenses.

Speaker Change: 19, going 2% contributing to a turnaround in that topic was on that income.

Speaker Change: Pipelines that neither RMB and a non-GAAP net income of $15 1 million RMB.

Speaker Change: Ali we mentioned a strong cash position with free cash assets totaling 914 once threatening their R&D.

Speaker Change: On July 19, 2024, we announced a major business reorganization, which is expected to be confident of turn by the end of August this.

Speaker Change: This reorganization demonstrates our commitment to managing our focused strategy, especially in improving our operating results.

Speaker Change: That.

Speaker Change: But we're taking certain baidu bathroom, certain underperforming Iot related goodness.

Speaker Change: Well me you will not primary focus on labor is at its core strength in the water purification sector, So al-obeid horrible operational trajectory.

Speaker Change: According to our preliminary estimate the revenues of the continuous business.

Speaker Change: We're more than 800 million RMB without asking many of income from operations more than 30 million RMB in the first half of 2024.

Speaker Change: In the short time, this or tissue randomization may lead to us by reduction in our business, though it will further enhance the company's profitability.

Speaker Change: In healthy and sustainable long term growth.

Rami: Following the major Vegas reorganization Rami will embrace our new mission as a bathroom water well dedicated they're utilizing AI technology to provide battle Arabian water solution for household work law libraries, and our extensive expertise.

Knowledge application embedded in hardware and software development well may have strikes that were defined some water pollution and developed a unique equipment <unk> consumables business model. When you add technology to holistic really enhance the user experience, providing remote real time monitoring of.

Speaker Change: Water quality and the usage above 10 leave filter with Chris My reminder, one clinically altering and DIY replacement options, leading to a higher filter replacement.

Although it is higher than the waterway self cleaning technology significantly extends theater loves them and reduces the cost of a water purification, making smart water purifier, a reliable hassle free and I spoke about essential for a healthy lifestyle.

Speaker Change: How about the end of the first I'll first half hour punishment for well, let me ask one.

Speaker Change: Order solution were used by nearly $5 9 million in household user.

Speaker Change: In terms of the production innovation of our industry, leading technology, well me has consistently driven technological breakthroughs over the past decade.

Speaker Change: While off a chunk of it large black water purifier that provide fresh drinking water or 24, seven but upgrading the waterflood up to 22000 got them right.

Speaker Change: Spending the water Purifier, you said scenario from drinking cooking washing batch those anymore.

Speaker Change: Ladies and statements were implemented yeah, Oh technology.

Speaker Change: So almost the same number of water quality rankings on pure water to Nashville.

Speaker Change: They're setting new trends in housing Lady.

Speaker Change: And Obama is spring or the pure by our new product launch event in March 2024, we unveil the bow.

Speaker Change: Well I mean, yeah water purifier it.

Speaker Change: Innovative meal are lousy.

Speaker Change: Filter technology enables the sort of thing.

Speaker Change: Self beneficial mean, theyre, making the conversation of minerals in the water almost identical cause that off with nacho mineral water.

Speaker Change: Allowing our users to enjoy freshmen or water at home.

Speaker Change: Well me offers a wide range of products covering various home scenario.

Speaker Change: Single assumption, so accretion to integrated functions fishery infant, taking calling them as making capacity.

Unknown Executive: Hello, ladies and gentlemen.

Unknown Executive: Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Co. Limited Earnings Conference Call for the first half of 2024. At this time, all participants are in listen only mode. Today's conference call is being recorded.

Unknown Executive: Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Co. Limited Earnings Conference Call for the first half of 2024.

Speaker Change: On occasion, leaving room in the whole house applications or pulled out comprehensively address the increasing global demand for cleaner fresher and healthier drinking water.

Unknown Executive: Thank you for standing by for Viomi Technology Co.

Unknown Executive: Limited Earnings Conference Call for the first half of 2024. At this time, all participants are in listen only mode. Today's conference call is being recorded.

Unknown Executive: At this time, all participants are in listen only mode. Today's conference call is being recorded.

Speaker Change: In terms of product manufacturing and technology development, well me operates a weren't meeting water purifier Giga factory boosting our annual production capacity of finding them water purifier I'm, sorry, do you mean out there.

Claire Ji: I would now like to turn the call over to your host, Ms. Claire Ji, the IR Director of the company.

Claire Ji: 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.

Unknown Executive: Please go ahead, Claire.

Claire Ji: Hello, everyone.

Unknown Executive: Hello, everyone. On the well comes around me. Technology.

Claire Ji: Hello, everyone. On the well comes around me. Technology.

Unknown Executive: Hello, everyone. On the well comes around me. Technology.

Unknown Executive: On the well comes around me.

Speaker Change: It's highly integrated industrial chain lay out how they ultimately the production line high stand there for claims production workshop and the fully traceable coffee console system facilitates continuous breaks using water purification achieving.

Unknown Executive: Technology.

Claire Ji: The IR Director of the company's Earnings Conference Call for the first half of 2024. Of the reminders, this conference is being recorded.

Unknown Executive: Please go ahead, Claire.

Claire Ji: The IR Director Limited Earnings Conference Call for the first half of 2024. Of the reminders, this conference is being recorded. The company's financial and operating results were issued in the press release earlier today and posted online. You can download the Earnings right to the list and sign up for the company's email distribution list by visiting the IR section of the company's website at irsovelling.com. Participating today's call on Mr. Xiaoping Chen, the founder chairman of the board of directors and chief executive officer and Mr. Sam Yang, the head of our capital and strategy department.

Claire Ji: The company's financial and operating results were issued in the press release earlier today and posted online. You can download Earnings right to the list and sign up for the company's e-mail distribution list by visiting the IR section of the company's website at irsovellum.com.

Speaker Change: Achieving an optimal value efficiency and the meeting however, global market demand.

We have established a wow the industry's most comprehensive R&D system mastering advanced filtration technology and the materials manufacturing process.

Claire Ji: Participating today's call on Mr. Xiaoping Chen, the founder chairman of the board of directors and chief executive officer and Mr. Sam Yang, the head of our capital and strategy department. The company's management will bring with prepared remarks and all will conclude with the TNA session, is included in the company's annual report on $1.20S. An other selling is dealt with the U.I. Security and Exchange Commission. The company that now assumes any obligations after any forward looking statement is set as required by law. Please also know that while this earnings has released and this conference call includes discussions of an obvious death financial information as well as an obvious non-death financial measure.

Speaker Change: It lays out we have amassed over 1600 water purification Patton and attract numerous global talent management marketing product development and quality control.

Claire Ji: The company's management will bring with prepared remarks and all will conclude with the TNA session, is included in the company's annual report on $1.20S. An other selling is dealt with the U.I. Security and Exchange Commission. The company that now assumes any obligations after any forward looking statement is set as required by law. Please also know that while this earnings has released and this conference call includes discussions of an obvious death financial information as well as an obvious non-death financial measure.

Speaker Change: So we'll continue that.

Sally: Jasmine and effective implementation of our focused strategy will have each achieved significant success yourself well Sally enhancing our Benson.

Sally: Strategically aligned all the cell channels with differentiated products, we have successfully expanded our margo shared and the further promoted all of them you know water purifier in.

Sally: In July the Miami and what is your fire ranks third in the.

Speaker Change: Water Purifiers Doctor well, our new spring product theory claimed the top station in the end there. Thank water purifier category I'm trying not to leading made Afghanistan. Additionally, well maybe ramped at 439 in 2020 for China.

Speaker Change: 100 Grand Lake released by the World Bank.

Speaker Change: Whereas our brand value.

Claire Ji: In addition, while this press release contains a reconciliation of an obvious non-death measure to an obvious most directly comparable death measure, I will now turn the call over to our founder and CEO Mr. Xiaoping Chen. Mr. Chen will deliver his remarks in Chinese, followed immediately by an English translation. Mr. Chen, please go ahead.

Xiaoping Chen: In addition, while this press release contains a reconciliation of an obvious non-death measure to an obvious most directly comparable death measure, I will now turn the call over to our founder and CEO Mr. Xiaoping Chen. Mr. Chen will deliver his remarks in Chinese, followed immediately by an English translation. Mr. Chen, please go ahead.

Speaker Change: They are important for three 6 billion RMB.

Speaker Change: Following our major business reorganization global water well become the combination lesion.

Speaker Change: Oh, it's a specialized fashion no company.

Speaker Change: Professional water purification technology company, we aim to deliver fresh and healthy water worldwide and then we will deepen our focus on providing high quality products and solutions to enhance our user satisfaction.

Speaker Change: Well, our friends and our collaboration with strategic partners to fully leverage our water.

Speaker Change: Sure if I got the accurate comparison of nasal mounted.

Speaker Change: Second we will increase our water to a vacation pullback domestic margin penetration continuing until at least the healthy mineral water trends and promoting it in a thoughtful household users.

Xiaoping Chen: [inaudible] Thank you, Mr. Chen. I will quickly translate our Founder's remarks before discussing our financial performance for the first half of 2024. 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 for our targeting high quality development, consisting of great enhancing our operating performance and the return to a net profit position, specifically by concentrating on our advantageous categories.

Claire Ji: [inaudible] Thank you, Mr. Chen. I will quickly translate our Founder's remarks before discussing our financial performance for the first half of 2024. 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 for our targeting high quality development, consisting of great enhancing our operating performance and the return to a net profit position, specifically by concentrating on our advantageous categories.

Speaker Change: We will actively expanding key oversea module to promote wellness global its attitude and our families our bras to enjoy fresh and healthy order through our quota.

Speaker Change: Meantime, well, maintaining a sufficient capital reserve and ensure stable bandwidth growth, providing long term return for our users and a shareholder.

Speaker Change: Thank you that concludes our fond of remarks, I will now turn the call over to our head on the capital strategy Department, Mr. Asami all to discuss our financial performance. Thank you.

Mr. Asami: Thank you Shannon and clear.

Speaker Change: To everyone for joining us today, I'm, a golfer and audited financial results for.

Speaker Change: For the first half of 204.

Speaker Change: Net revenues were one billing and 41 2 million renminbi compared to one feeling 300, and a 414 million renminbi for the same period of time for next week.

Speaker Change: This decrease was mainly due to a strategic shift.

Speaker Change: And you can focus toward.

Speaker Change: Water solutions.

These are a decrease in revenues from the L. T at a whole portfolio.

Speaker Change: As well as small appliances on others.

Speaker Change: Revenues from Iot.

Speaker Change: Loan portfolio decreased by 33% to 482.

Speaker Change: Many of them would be from $691 7 million for the same period of time.

Speaker Change: The decrease was primarily due to the comedy strategic decision to phase out of certain unemployed for a month or harming our skew things.

Speaker Change: Being smart refrigerators and air conditioners.

Speaker Change: Aiming for more sustainable in a healthy gold.

Speaker Change: Revenues from our home water solutions increased by 12, 9%.

Speaker Change: $323 5 million renminbi from.

Speaker Change: 286, 6 million remedy for the same period of 223.

Speaker Change: The increase was primarily driven by our intensified focus on water purification products.

Speaker Change: Revenues from consumables remain stable.

Speaker Change: 135 H.

Speaker Change: Mainly renminbi from 135.

Speaker Change: One 9 million renminbi for the same period I'm just wondering suite.

Speaker Change: Revenues from small appliances, and the orders decreased by 48% to 98.

Speaker Change: 0.9, mainly renminbi.

Speaker Change: 192 million run rate be for the same period I'm trying to sleep.

Primarily due to the companys ongoing effort to streamline skus within these categories.

Speaker Change: Gross profit was about 250 821 mailing renminbi.

Speaker Change: Compared to 286.8.

Speaker Change: 8 million renminbi for the same period of 200 and suites.

Speaker Change: Gross margin was 24, 8% compared to 22% for the same period of 10, two and three.

Speaker Change: The increase was.

Speaker Change: It's primarily driven by the company's effort on expanding revenue contribution of our higher gross margin core product categories.

Speaker Change: Total operating expenses decreased by 19, 2% to 292 3 million renminbi.

Speaker Change: 361 eight.

Speaker Change: Each men and women, but even for the same period of 2023.

Speaker Change: Adjusted operating expenses, excluding share based compensation were RMB 281 8 million.

Speaker Change: Representing a year over year degrees off of 21%.

Speaker Change: 21, 8%.

Speaker Change: The decrease was driven by the company's strategic.

Speaker Change: Valuation of resource efficiency.

Speaker Change: Focus on more.

Vantages areas to achieve that.

Speaker Change: Beth.

Speaker Change: Operating result.

Speaker Change: In greater detail R&D expenses flooded decreased by one 2% to $109 2 million Renminbi from 100 915 million renminbi for the same period of 203.

Speaker Change: Mainly due to a decrease in stock cost, partially offset by higher ship based compensation expenses is already from extension of sure.

And incentive plans.

Speaker Change: By region terms to 20 years.

Speaker Change: Selling and marketing expenses decreased by 33.

0.21% to 142 9 million room and be it from 213 pardon apply mailing renminbi for the same period of the 20th 93.

Claire Ji: Hello, everyone.

Claire Ji: The company's management will bring with prepared remarks and all will conclude with the TNA session.

Speaker Change: Mainly due to a decrease in your logistic expansion.

Claire Ji: In addition, well-missed press release contains a reconciliation of an obvious desk financial measure to an obvious most directly comparable desk financial.

Speaker Change: Online platform service fees, and a lot of typing and marketing fees.

Speaker Change: Oh this is out of the companys to directly.

Speaker Change: Cost control measures.

Speaker Change: Okay, My vision of sales channels and the refinement of the part of mix.

Claire Ji: I will now turn the call over to our founder and CEO Mr. Xiaoping Chen.

Xiaoping Chen: Our coal-fung water solution products revenue grew by nearly 30 percent year over year, while we further optimize our product structure. Other results, our overall growth margin continues to improve to 24.8 percent for the first half of 2024, from 22 percent for the prior year period. Free call control measures leads to a year-over-year decline in income operating expenses by a 19.2 percent contributing to a turn around in that profit with a net income of 5.6 million RMB and a non-gap net income of 15.1 million RMB.

Claire Ji: Our coal-fung water solution products revenue grew by nearly 30 percent year over year, while we further optimize our product structure. Other results, our overall growth margin continues to improve to 24.8 percent for the first half of 2024, from 22 percent for the prior year period. Free call control measures leads to a year-over-year decline in income operating expenses by a 19.2 percent contributing to a turn around in that profit with a net income of 5.6 million RMB and a non-gap net income of 15.1 million RMB.

Speaker Change: G&A expenses increased by six 2% to 40 112 million renminbi compared to $38 eight mainly renminbi for the same period of 203.

Unknown Executive: Mr. Chen will deliver his remarks in Chinese, followed immediately by English translation.

Primarily due to an increase in professional fees.

Speaker Change: The addition, and administrative expenses related to the operation of the Technology Park, partially offset by a decrease in the estimate that allowance for accounts and notes receivable.

Xiaoping Chen: Mr. Chen, please go ahead.

Speaker Change: Net income attributable to ordinary shareholders of the company was <unk> 6 million from MB and then the non-GAAP net income attributable to ordinary shareholders of the company. It was 16.

Xiaoping Chen: Additionally, we maintain a ground cash position with free cash assets totaling 940.3 million RMB. On July 19, 2024, we announced a major business reorganization, which is expected to be completed obtained by end-up authors. This reorganization demonstrates our commitment to implementing our focus strategy and specifically improving our operating results by diversiting certain by dividing certain and the performing IoT related weaknesses. For me, we will not prior focus on leveraging its co-strands in the water purification sector to elevate our overall operational trajectory.

Claire Ji: Additionally, we maintain a ground cash position with free cash assets totaling 940.3 million RMB. On July 19, 2024, we announced a major business reorganization, which is expected to be completed obtained by end-up authors. This reorganization demonstrates our commitment to implementing our focus strategy and specifically improving our operating results by diversiting certain by dividing certain and the performing IoT related weaknesses. For me, we will not prior focus on leveraging its co-strands in the water purification sector to elevate our overall operational trajectory.

Speaker Change: Five mailing renminbi.

Speaker Change: We are achieved.

Speaker Change: It's not as we should.

Xiaoping Chen: Mr. Chen, please go ahead Mr. Chen, please go ahead.

Typically shift efforts towards home water solution products and implemented strict.

Speaker Change: Cost control measures.

Xiaoping Chen: Mr. Chen, please go ahead.

Speaker Change: Additionally, our balance sheet remains healthy.

Speaker Change: That's all.

Speaker Change: 130 P M.

Speaker Change: Therefore, the company had a cash in of Kashi people and Alpha 701, 6 million renminbi restricted cash of $206 9 million run it.

Speaker Change: Short term deposit of $142 6 million renminbi.

Xiaoping Chen: According to our preliminary estimates, the revenues of the continuous business were more than 800 million RMB with an estimated income from operations more than 30 million RMB in the first half of 2024. In the short term, this strategy reorganization may lead to a side reduction in our business scale, but it will further enhance company's profitability, thriving healthy and sustainable long-term growth. Following the major business reorganization, well-me will embrace a new mission, AI for better water.

Claire Ji: According to our preliminary estimates, the revenues of the continuous business were more than 800 million RMB with an estimated income from operations more than 30 million RMB in the first half of 2024. In the short term, this strategy reorganization may lead to a side reduction in our business scale, but it will further enhance company's profitability, thriving healthy and sustainable long-term growth. Following the major business reorganization, well-me will embrace a new mission, AI for better water.

Speaker Change: Short term investments 64 1 million renminbi.

Speaker Change: Now, let's turn to our outlook.

For the full year of 284 with current expert.

Speaker Change: We're asking yourselves continues business to be between 1.7 billion renminbi and at 1.9 billion renminbi.

Speaker Change: Income from operations helped US continue we're in business to be between 110 million renminbi and the 130 renminbi.

Xiaoping Chen: Mr. Chen, please go ahead Mr. Chen, please go ahead Mr. Chen, please go ahead.

Unknown Executive: On the well comes around me.

Xiaoping Chen: Mr. Chen, please go ahead.

Unknown Executive: Technology.

Xiaoping Chen: We are dedicated to utilizing AI technology to provide better bringing water solutions for household world-wide. Maybe we are reaching our extensive expertise in AI technology applications, intelligence hardware and software development. Well-me has tried to redefine home water solutions and develop a unique equipment plus consumable business model. We use AI technology to holistically enhance the user's experience, providing remote, built-in monitoring of water quality and usage, a grow of a timely filter replacement reminder.

Claire Ji: We are dedicated to utilizing AI technology to provide better bringing water solutions for household world-wide. Maybe we are reaching our extensive expertise in AI technology applications, intelligence hardware and software development. Well-me has tried to redefine home water solutions and develop a unique equipment plus consumable business model. We use AI technology to holistically enhance the user's experience, providing remote, built-in monitoring of water quality and usage, a grow of a timely filter replacement reminder.

Speaker Change: There might be.

Speaker Change: The above outlook is based on current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and customer demand.

Xiaoping Chen: Mr. Chen, please go ahead[inaudible] Mr. Chen, please go ahead[inaudible] Mr. Chen, please go ahead.

Xiaoping Chen: Mr. Chen, please go ahead.

Claire Ji: You can download the Earnings right to the list and sign up for the company's email distribution list by visiting the IR section of the company's website at irsovelling.com.

Speaker Change: All of which are subject to change.

Speaker Change: Thank you.

Speaker Change: Okay. This concludes our prepared remarks, well now open the call for Q&A, Mr. Chen our fonder unless or yeah, no John is fashion and answer questions. Operator. Please go ahead.

Unknown Executive: [inaudible] Thank you, Mr. Chen.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys if at any time Youre question has been addressed and you would like to withdraw your question. Please press Star and then two.

Claire Ji: The company's management will bring with prepared remarks and all will conclude with the TNA session, is included in the company's annual report on $1.20S.

Xiaoping Chen: One click re-altering and the DIY replacement Our encouraging water-based self-cleaning technology significantly complains extent filter lags then and reduces the cost of water purification, making smart water purifiers a reliable puzzle freeze and affordable essentials for a healthy lags self. As of the end of the first half of 2024, well-made AI home water solution were used by nearly 5.9 million household users. In terms of the production innovation of the industry leading technology, well-made has consistently driven technological breakthroughs over the past decade.

Claire Ji: One click re-altering and the DIY replacement Our encouraging water-based self-cleaning technology significantly complains extent filter lags then and reduces the cost of water purification, making smart water purifiers a reliable puzzle freeze and affordable essentials for a healthy lags self. As of the end of the first half of 2024, well-made AI home water solution were used by nearly 5.9 million household users. In terms of the production innovation of the industry leading technology, well-made has consistently driven technological breakthroughs over the past decade.

Speaker Change: So the benefit of all participants on today's call. If you wish to ask a question management in Chinese. Please immediately repeat your question in English.

Unknown Executive: An other selling is dealt with the U.I.

Claire Ji: I will quickly translate our Founder's remarks before discussing our financial performance for the first half of 2024.

Speaker Change: Our first question comes from.

You season Li.

Xiaoping Chen: Hello, everyone.

Unknown Executive: Security and Exchange Commission.

Speaker Change: Please go ahead.

Speaker Change #100: Oh, hey, thanks.

Speaker Change #101: C C.

Speaker Change #101: Oh I see.

Xiaoping Chen: We developed a countless large-flash water purifiers that provides fresh drinking water 24-7, by upgrading the water-flash up to 22,000 gallons with spend-day water purifier usage scenarios from drinking to cooking, washing vegetables and the more. In addition, with the statement, we implemented ERO technology to offer sustainable water policy, ranging from pure water to natural mineral water, getting nutrients in housing living. At the Valme Spring water purifier, New Project Lunch event in March 2024, we unveiled the Valme Quinoa Miner AI Water purifier.

Claire Ji: We developed a countless large-flash water purifiers that provides fresh drinking water 24-7, by upgrading the water-flash up to 22,000 gallons with spend-day water purifier usage scenarios from drinking to cooking, washing vegetables and the more. In addition, with the statement, we implemented ERO technology to offer sustainable water policy, ranging from pure water to natural mineral water, getting nutrients in housing living. At the Valme Spring water purifier, New Project Lunch event in March 2024, we unveiled the Valme Quinoa Miner AI Water purifier.

Speaker Change #101: On the wall.

Speaker Change #103: None of them alone.

Speaker Change #103: Okay and Pall mall.

Speaker Change #103: And for the Awesome, what information business when they introduced.

Speaker Change #103: The ball bonding.

Speaker Change #103: Bombing.

Speaker Change #103: And all of them.

Speaker Change #103: Maybe for Paul.

Speaker Change #104: Okay. Thank you that's my first question.

Speaker Change #104: Okay.

Speaker Change #104: Okay. Thank you.

Speaker Change #105: Let me just get to your question.

Speaker Change #106: As for the home water solutions business, we had a 13% increase in revenue for the first half of 284.

Xiaoping Chen: Its innovative mineralized filter technology enables the sustained release of fanatical minerals, making the conversation of base minerals in the water almost identical to that of the natural mineral water, allowing our users to enjoy fresh mineral water at home. Valme offers a wide range of products, covering various home scenarios, from single-function filtration to integrated-function filtering, instant-fating cooling and ice-making capacities, then-encaging living room and a whole-house application, our products comprehensively address the increasing global demand for cleaner, fresher, and healthier drinking water.

Claire Ji: Its innovative mineralized filter technology enables the sustained release of fanatical minerals, making the conversation of base minerals in the water almost identical to that of the natural mineral water, allowing our users to enjoy fresh mineral water at home. Valme offers a wide range of products, covering various home scenarios, from single-function filtration to integrated-function filtering, instant-fating cooling and ice-making capacities, then-encaging living room and a whole-house application, our products comprehensively address the increasing global demand for cleaner, fresher, and healthier drinking water.

Speaker Change #106: Compared to the same period of last year.

Speaker Change #106: Mainly due to further focus on home and water solution business as well.

Speaker Change #106: Keeping our strategic cooperation with Xiaomi on this category.

Speaker Change #106: Through continuous product.

Speaker Change #107: Chestman ended the effective implementation of our focused strategy, we have achieved significant success.

Speaker Change #108: In cells why Natalie.

Speaker Change #108: Enhancing our brand strength.

Speaker Change #108: But strategically, allowing our sales channel.

Speaker Change #108: Yeah.

Speaker Change #108: Potash, we have successfully expanded our market share and further promoting our matter water purifiers.

Xiaoping Chen: In terms of product manufacturing and technology development, Valme operates a world-leading water purifier data factory, hosting an annual production capacity of 5 million water purifier and 30 million filters. Its highly integrated industrial chain layout, highly automated production lines, high standard product production workshops, and the fully-traceable quality control system facilitates continuous rigs using water purification, achieving an optimal value efficiency and the mating average global market demand. We have established the world's industrial most comprehensive R&D systems, mastering advanced filtration technology and the materials manufacturing process as a result.

Claire Ji: In terms of product manufacturing and technology development, Valme operates a world-leading water purifier data factory, hosting an annual production capacity of 5 million water purifier and 30 million filters. Its highly integrated industrial chain layout, highly automated production lines, high standard product production workshops, and the fully-traceable quality control system facilitates continuous rigs using water purification, achieving an optimal value efficiency and the mating average global market demand. We have established the world's industrial most comprehensive R&D systems, mastering advanced filtration technology and the materials manufacturing process as a result.

Speaker Change #109: In July the army.

Speaker Change #109: Water purifier ranks third.

Speaker Change #109: And our water purifier sector, why our new spring potash serious claim that the pole position in the I'm, assuming waterfield Fry.

Speaker Change #109: Category on China's leading new media platforms.

Speaker Change #109: Additionally, we have been ranked 439 in the 2020 for China's top 500 brands list.

Speaker Change #109: At least as it relates to by the water.

Speaker Change #109: Lap.

Speaker Change #109: We had the brand value of 15.

Speaker Change #109: <unk> 15 billion.

Speaker Change #109: Renminbi.

Speaker Change #109: We will maintain close cooperation with our strategic partners, while expanding depreciated, China's and the products to jointly increase the penetration.

Xiaoping Chen: We have a mass over 1,600 water purification patterns and attract numerous global talent in management, marketing, product development, and quality control. Through continuous product adjustments and effective implementation of our vocal strategy, we have achieved a significant success in self-revealing and enhancing our strength. 5th virtually align our style channels with differentiated products. We have successfully expanded our market share and further promoted our meet-and-a-world repair buyer. In July, the Viomi AI repair buyer ranked third in the repair buyer sector, where our new spring products theories claim the pop station.

Claire Ji: We have a mass over 1,600 water purification patterns and attract numerous global talent in management, marketing, product development, and quality control. Through continuous product adjustments and effective implementation of our vocal strategy, we have achieved a significant success in self-revealing and enhancing our strength. 5th virtually align our style channels with differentiated products. We have successfully expanded our market share and further promoted our meet-and-a-world repair buyer. In July, the Viomi AI repair buyer ranked third in the repair buyer sector, where our new spring products theories claim the pop station.

Speaker Change #109: Creation right al.

Speaker Change #109: Water purified market and makeup water purifier.

Speaker Change #109: Essential for the better lives.

Speaker Change #110: Thank you please.

Speaker Change #111: Please go on.

Speaker Change #111: Okay.

Speaker Change #112: My second question is lumpy.

Speaker Change #113: And I think as a business.

Speaker Change #113: And once all ball remaining rational right now.

Speaker Change #113: Can you explain why do you choose me okay. They see me.

Speaker Change #114: We also introduced some financial results.

Speaker Change #115: Thank you.

Speaker Change #116: It's a very good question.

Uh huh.

Speaker Change #116: The business with divesting.

Xiaoping Chen: In the end, our sink water repair category on China's leading new meet-and-a-zone. Additionally, well-made ranks 430 nights play in 2024, China's top 400 brands, released by the world brand live, with a brand value of 15.336 billion RMB. Following our major visits with organizations, global water will become the company's vision. As a specialized professional company, a 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.

Claire Ji: In the end, our sink water repair category on China's leading new meet-and-a-zone. Additionally, well-made ranks 430 nights play in 2024, China's top 400 brands, released by the world brand live, with a brand value of 15.336 billion RMB. Following our major visits with organizations, global water will become the company's vision. As a specialized professional company, a 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.

Speaker Change #116: Certain underperforming Iot business.

Speaker Change #116: So that a we can quickly restore our operations and get the company back to a benign status.

At certain Iot business has shown a triangle.

Speaker Change #116: Construction in scale during the past few years.

Xiaoping Chen: 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 for our targeting high quality development, consisting of great enhancing our operating performance and the return to a net profit position, specifically by concentrating on our advantageous categories.

Speaker Change #116: Which to certain extent, that's jacket down our overall operating efficiency. Therefore, we have started to streamline and focus on more proactive there in 'twenty three.

Unknown Executive: The company that now assumes any obligations after any forward looking statement is set as required by law.

Speaker Change #116: We invested our resources even more.

Speaker Change #116: But even just product categories.

Speaker Change #116: As we mentioned in the beginning.

Unknown Executive: Please also know that while this earnings has released and this conference call includes discussions of an obvious death financial information as well as an obvious non-death financial measure.

Xiaoping Chen: First, we will strengthen our collaboration with strategic partners to fully leverage our water-based purifier data factories' compassionate needs. Second, we will increase our water-certification products' domestic market penetration, continuing to leave the healthy, mineral water trend, and promoting the best for household users. Third, we will actively expand and keep overseeing modules to promote a balanced global strategy, and now families are brought to enjoy fresh and healthy water through our products. In the meantime, we are maintaining a sufficient capital reserve and ensure stable basic growth, providing long-term returns for our users and shareholders.

Claire Ji: First, we will strengthen our collaboration with strategic partners to fully leverage our water-based purifier data factories' compassionate needs. Second, we will increase our water-certification products' domestic market penetration, continuing to leave the healthy, mineral water trend, and promoting the best for household users. Third, we will actively expand and keep overseeing modules to promote a balanced global strategy, and now families are brought to enjoy fresh and healthy water through our products. In the meantime, we are maintaining a sufficient capital reserve and ensure stable basic growth, providing long-term returns for our users and shareholders.

Speaker Change #116: Gaming.

Speaker Change #117: For the first half of a tenant in Florida.

Speaker Change #118: Based on them, all up and even though they estimate their estimate of revenue continuous business, what's known as then.

Unknown Executive: Thank you.

Speaker Change #119: 500, meaning renminbi.

Speaker Change #120: My best estimate of income from operation.

Speaker Change #121: More than 50 mailing remedies.

For the first half off of a tender.

Speaker Change #121: Also we estimate that Calpine also continuing business than we are which between one seven.

Speaker Change #121: 7 billion renminbi.

Speaker Change #121: 219 billion renminbi for the full year of 284.

Unknown Executive: Mr. Chen will deliver his remarks in Chinese, followed immediately by an English translation.

Speaker Change #122: The income from the operation between 110 million Renminbi, two 130 milligram it.

Xiaoping Chen: Mr. Chen, please go ahead.

Unknown Executive: That concludes our funder's remarks.

Unknown Executive: [inaudible] Thank you, Mr. Chen.

Claire Ji: I will now turn the call over to our head of the capital strategy department, Mr. Samyang, to discuss our financial performance. Thank you. Mr. Samyang, thank you.

Sam Yang: I will now turn the call over to our head of the capital strategy department, Mr. Samyang, to discuss our financial performance. Thank you. Mr. Samyang, thank you.

Claire Ji: I will now turn the call over to our head of the capital strategy department, Mr. Samyang, to discuss our financial performance. Thank you. Mr. Samyang, thank you.

Speaker Change #121: Next.

Speaker Change #123: We plan to sort out the overall revenue structure with the new home water solutions business.

Claire Ji: I will quickly translate our Founder's remarks before discussing our financial performance for the first half of 2024.

Unknown Executive: Mr. Samyang and Claire, thank you to everyone for joining us today.

Sam Yang: Mr. Samyang and Claire, thank you to everyone for joining us today.

Sam Yang: Mr. Samyang and Claire, thank you to everyone for joining us today. I will go for our unordered financial results for the first half of 2004. Net-a-Rap news were 1 billion and 40.2 million revenue compared to 1 billion, 304.4 million revenue for the interior of 103. This decrease was managed due to a strategic shift in focus toward home water solutions, resulting in decrease in revenues from the IoT at home portfolio, as well as more appliances and others.

Xiaoping Chen: Hello, everyone.

Sam Yang: I will go for our unordered financial results for the first half of 2004. Net-a-Rap news were 1 billion and 40.2 million revenue compared to 1 billion, 304.4 million revenue for the interior of 103. This decrease was managed due to a strategic shift in focus toward home water solutions, resulting in decrease in revenues from the IoT at home portfolio, as well as more appliances and others. Revenues from the IoT at home portfolio decreased by 30.3% to 482 million revenue from 691.7 million revenue for the same period of 103.

Speaker Change #124: Consumables and other appliances and the Soviets.

Speaker Change #125: No it's not finalized yet.

Speaker Change #125: New home water solution business will include on the spin.

Speaker Change #125: Order purifies.

Speaker Change #125: Pipeline what it did.

Speaker Change #125: Panthers.

Speaker Change #125: Free.

Speaker Change #125: Installation pause like a pop of water dependence.

Speaker Change #126: Small catalysts as well as our centralized water purification and assaulting systems.

Speaker Change #126: Water heaters, covering home scenarios, including teaching, leaving room bathroom, and our whole house water system.

Sam Yang: Revenues from the IoT at home portfolio decreased by 30.3% to 482 million revenue from 691.7 million revenue for the same period of 103. The decrease was primarily due to the company strategic division to face out a certain Ameen for more sustainable and healthy growth. Revenues from home water solutions increased by 12.9% to 323.5 million revenue from 286.6 million revenue for the same period of 2023. The increase was primary driven by our intensified focus on water purification products.

Speaker Change #127: Thank you.

Speaker Change #128: Please go on.

Speaker Change #128: Yeah.

Okay. Thank you.

Speaker Change #128: Watching all won't go into the management made.

C J: C J.

Speaker Change #130: J D.

Speaker Change #130: And what we'll be focusing on in future. Thank you.

Sam Yang: The decrease was primarily due to the company strategic division to face out a certain Ameen for more sustainable and healthy growth. Revenues from home water solutions increased by 12.9% to 323.5 million revenue from 286.6 million revenue for the same period of 2023. The increase was primary driven by our intensified focus on water purification products. Revenues from consumables remain stable as 135.8 million revenue from 135.9 million revenue for the same period of 2023.

Speaker Change #130: Thank you.

Speaker Change #130: Okay.

Speaker Change #130: The business, we divest certain on poor forming Iot business.

Speaker Change #130: All fundamental has.

Speaker Change #130: Ralph.

Speaker Change #130: Earnings will improve significantly and get the company back to a benign.

Xiaoping Chen: Our call for water solution products revenue grew by nearly 30% year over year, while we further optimize our product structure.

Speaker Change #130: Yeah.

Speaker Change #130: As we mentioned before.

Speaker Change #130: Based on all up and preliminary estimated that's been married.

Speaker Change #130: The revenue also they'll continue on business were more than.

Speaker Change #130: 800 million.

Speaker Change #130: The estimate of income from operation more than.

Speaker Change #130: 50 million renminbi for the first half of a tenant in it for the full year got himself. The continuing business. He is between $1 7 billion to $1 9 billion renminbi in topline and.

Sam Yang: Revenues from consumables remain stable as 135.8 million revenue from 135.9 million revenue for the same period of 2023. Revenues from small appliances and orders decreased by 48% to 98.9 million revenue from 190.2 million revenue for the same period of 2023. Primarily due to their companies on going effort to streamline SKUs within this category. Scott Powell was 258.1 million revenue compared to 286.8 million revenue for the same period of 2023. Scott's margin was 24.8% compared to 22% for the same period of 2023.

Speaker Change #130: 100.

10 million to 130 million Renminbi also the income from operations.

Sam Yang: Revenues from small appliances and orders decreased by 48% to 98.9 million revenue from 190.2 million revenue for the same period of 2023. Primarily due to their companies on going effort to streamline SKUs within this category. Scott Powell was 258.1 million revenue compared to 286.8 million revenue for the same period of 2023. Scott's margin was 24.8% compared to 22% for the same period of 2023. The increase was primary driven by the company's effort on expanding revenue contribution of higher post-margined core product categories.

Speaker Change #131: We can see diversity income all four of our business, we our strength.

Speaker Change #132: Our overall all skill in short term, but will produce significant improvement owned operation you thought of it.

Speaker Change #132: So with this reorganization.

Speaker Change #133: Policy channel, where our resources to focus fully on the Companys, most powerful water purification field.

Speaker Change #133: And in Florida or improve the brand influence.

Water.

Speaker Change #133: In the following three aspects.

Xiaoping Chen: Other results, our overall growth margin continues to improve to 24.8% year-percent, for the first half of 2024, from 22% for the prior year period.

Speaker Change #133: First we are strengthening our collaboration with strategic partners to fully leverage our water purifier people factories competitive advantage.

Sam Yang: The increase was primary driven by the company's effort on expanding revenue contribution of higher post-margined core product categories. Tutu operating expenses decreased by 19.2% to 292.3 million revenue from 361.8 million revenue for the same period of 2023. The adjusted operating expenses excluding share-based compensation were RMB 281.8 million representing a year over year degrees of 21.8%. The decrease was driven by the company's strategic evaluation of resource efficiency and focused on more advantages, areas to achieve the best operating result.

Speaker Change #133: Second.

Speaker Change #133: We will increase all water purification products.

Speaker Change #133: Domestic market penetration continuing to lead healthy manner of water train.

Xiaoping Chen: Free call control measures leads to a year-over-year decline in income operating expenses by a 19.2% contributing to a turn around in that profit with a net income of 5.6 million RMB and a free cash asset totaling 940.3 million RMB.

Sam Yang: Tutu operating expenses decreased by 19.2% to 292.3 million revenue from 361.8 million revenue for the same period of 2023. The adjusted operating expenses excluding share-based compensation were RMB 281.8 million representing a year over year degrees of 21.8%. The decrease was driven by the company's strategic evaluation of resource efficiency and focused on more advantages, areas to achieve the best operating result. In greater detail, R&D expenses slightly decreased by 1.2% to 109.2 million revenue from 109.5 million revenue for the same period of 2023.

Speaker Change #133: Promoting access while household users.

Speaker Change #133: Third well.

Speaker Change #133: We are actively span in key overseas market, such as in North America, and Southeast Asia markets to promote.

Speaker Change #133: Im just global strategy enable families abroad to enjoy fresh and healthy water our potash.

Speaker Change #134: Thank you.

Speaker Change #134: [noise]. Okay. The next question comes from Hunter Diamond with Diamond Equity Research. Please go ahead.

Xiaoping Chen: On July 19, 2024, we announced a major business reorganization, which is expected to be completed, obtained by end of August. This reorganization demonstrates our commitment to implementing our focus strategy and specifically improving our operating results by focusing certain by dividing certain and the performing IoT related business.

Speaker Change #134: Yeah.

Sam Yang: In greater detail, R&D expenses slightly decreased by 1.2% to 109.2 million revenue from 109.5 million revenue for the same period of 2023. Mainly due to a decrease in stock cost, partially offset by higher share-based compensation expenses is outing from extension of share incentive plans and expiration in terms of 20 years. Telling on the marketing expenses decreased by 33.8 million revenue 0.1% to 142.9 million RMB from 213.5 million RMB for the same period of the 233.

Hunter Diamond: Hi, 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.

Sam Yang: Mainly due to a decrease in stock cost, partially offset by higher share-based compensation expenses is outing from extension of share incentive plans and expiration in terms of 20 years. Telling on the marketing expenses decreased by 33.8 million revenue 0.1% to 142.9 million RMB from 213.5 million RMB for the same period of the 233. Many due to a decreasing in logistics, expensive online platform service fees, and a lot of advertising and marketing fees.

Hunter Diamond: Okay.

Hunter Diamond: Wow.

Speaker Change #136: So the application.

Speaker Change #137: Also our AI technology, we hope we can have with our customers.

Speaker Change #137: Yeah.

Speaker Change #138: Excuse me can you hear me.

Okay, Yes.

Speaker Change #138: Increased acceptance awful lot of fuel price and reduce the cost of water purification.

Speaker Change #138: The increasing installed base, we are bringing recurring revenue from consumables.

Sam Yang: Many due to a decreasing in logistics, expensive online platform service fees, and a lot of advertising and marketing fees. A result of the company's direct risk cost control measures, optimization of self-channels, and the refinement of the product mix. GNAA expenses increased by 6.2% to 41.2 million RMB compared to 38.8 million RMB for the same period of 233. Primarily due to a increase in professional fees, depreciation, and administrative expenses related to the operation of the technology part, partially offset by a decrease in the estimated allowance for accounts and notes receivables.

Speaker Change #139: According to our observation the market size and a penetration rate of the China household water purifier market maintained.

Sam Yang: A result of the company's direct risk cost control measures, optimization of self-channels, and the refinement of the product mix. GNAA expenses increased by 6.2% to 41.2 million RMB compared to 38.8 million RMB for the same period of 233. Primarily due to a increase in professional fees, depreciation, and administrative expenses related to the operation of the technology part, partially offset by a decrease in the estimated allowance for accounts and notes receivables. Net income attribable to ordinary shareholders of the company was 6 million RMB, and then the non-gab and net income attribable to ordinary shareholders of the company was 16.5 million RMB.

A low level for a long time.

Speaker Change #140: Lots of customers switch to other ways to get purified water and do not change the field of mainly because of the frequently changing theaters.

Speaker Change #140: Causing a lot of pop items.

Speaker Change #140: And extra cost.

Speaker Change #140: This is due to low degree of product intelligence, so that customers cannot have a CLIA.

Speaker Change #140: Expectation of the lifespan of the theaters and it cannot.

Speaker Change #141: We placed a few of us by themselves.

Speaker Change #142: We can change it.

Speaker Change #143: Let's just take <unk>.

Speaker Change #143: One.

Sam Yang: Net income attribable to ordinary shareholders of the company was 6 million RMB, and then the non-gab and net income attribable to ordinary shareholders of the company was 16.5 million RMB. We achieved this with result as we strategically shift efforts towards home water solution products and implementing strict cost control measures.

1200 gallon Quinlan AI water Purifier for example.

Speaker Change #143: It's a mild fall, where our best selling product.

Speaker Change #143: Come from two filters.

Speaker Change #143: One is that.

Speaker Change #143: Combo side of filter with two year lifespan.

Xiaoping Chen: Family will not prior focus on leveraging its co-strands in the water purification sector to elevate our overall operational trajectory.

Sam Yang: We achieved this with result as we strategically shift efforts towards home water solution products and implementing strict cost control measures. Traditionally, our balance sheet remains healthy. As of June 30, 2004, the company had a cash and a cash sheet, people in the upper 701.6 million RMB, restrict the cash of 206.9 million RMB. Short-term deposit of 142.6 million RMB, and a short-term investment of 60.1 million RMB.

Speaker Change #144: <unk> is around 300 and remedy and the author is Oh filter with the average lifespan of five to six years Sydney.

Speaker Change #144: Enterprises around 900 renminbi.

Sam Yang: Traditionally, our balance sheet remains healthy. As of June 30, 2004, the company had a cash and a cash sheet, people in the upper 701.6 million RMB, restrict the cash of 206.9 million RMB. Short-term deposit of 142.6 million RMB, and a short-term investment of 60.1 million RMB.

Speaker Change #144: So our family with daily usage shelf that water of Teng leaders water.

Speaker Change #144: Assuming.

Speaker Change #144: They are using the water purifier for eight years the annual cost for the few of US is less than 230 remedy.

Speaker Change #144: This is a very attractive.

And obviously at a vantage comparing to bottled water.

You can do one quick.

Xiaoping Chen: According to our preliminary estimates, the revenues of the continuous business were more than 800 million RMB, with an estimated income from operations more than 30 million RMB in the first half of 2024.

Xiaoping Chen: Our coal-fung water solution products revenue grew by nearly 30 percent year over year, while we further optimize our product structure.

Sam Yang: Now, let's turn to our outlook. For the full year of 2021-04, we current experts. Refuse of the continuous business to be between 1.7 million RMB and 1.9 million RMB. Income from operations of the continuing business to be between 110 million RMB and 130 million RMB. The above outlook is based on our current market conditions and it reflects the company's current and the preliminary estimate of the market and operating conditions and customer demand, all of which are subject to change. Thank you.

Speaker Change #144: To make the water through that.

Xiaoping Chen: Other results, our overall growth margin continues to improve to 24.8 percent for the first half of 2024, from 22 percent for the prior year period.

Unknown Executive: Thank you.

Speaker Change #145: Key changes.

Speaker Change #145: Changes a few at a Y O Y three seconds.

Speaker Change #145: It's pretty simple and easy.

Speaker Change #146: We believe it will bring more and more people to purchase and continue to use water purifies, increasing the install nation way and a guarantee.

Speaker Change #146: <unk> established a bowl.

Speaker Change #146: Customer.

Speaker Change #146: Consumption.

Speaker Change #146: In short it would be army Adam.

Xiaoping Chen: In the short term, this strategic reorganization may lead to a side reduction in our business scale, but it will further enhance company's profitability, thriving healthy and sustainable long-term growth.

Xiaoping Chen: Free call control measures leads to a year-over-year decline in income operating expenses by a 19.2 percent contributing to a turn around in that profit with a net income of 5.6 million RMB and a non-gap net income of 15.1 million RMB. Additionally, we maintain a ground cash position with free cash assets totaling 940.3 million RMB.

Speaker Change #146: For better water using AI technology to make better water.

Speaker Change #146: And durable reliable products promoting the customers, increasing healthy awareness and allow more customers to use it purifies to improve the quality.

Xiaoping Chen: On July 19, 2024, we announced a major business reorganization, which is expected to be completed obtained by end-up authors. This reorganization demonstrates our commitment to implementing our focus strategy and specifically improving our operating results by diversiting certain by dividing certain and the performing IoT related weaknesses.

Xiaoping Chen: Following the major business reorganization, we'll me will embrace a new mission, AI for better water.

Unknown Executive: Okay, this concludes our prepared rain box. We will now open the call for Q&A Mr. Chen and our funder and Mr. Yang, which on this session and answer questions. Operator, please go ahead. We will now begin the question and answer session. To ask a question, you may press star the one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time, your question has been addressed and you would like to withdraw your question, please press star and then two. So, for the benefit of all participants on today's call, if you wish to ask the question, can you manage me in Chinese please immediately repeat your question in English.

After leaving.

Speaker Change #146: Further improve the tool.

Tuition rate all stuff household market in the Meanwhile, bringing high quality and sustainable scale scope of the company.

Speaker Change #147: Thank you.

Speaker Change #148: He's gone.

Speaker Change #149: Great. Thank you and my next question was can you provide more details on by Almys Omnichannel marketing and service.

Speaker Change #150: Supporting the expansion into international markets, particularly the U S where competition is very strong.

Speaker Change #151: Right. Thank you that's very quick question.

Speaker Change #152: Regarding the China expansion, we all are.

Speaker Change #153: Excuse me.

Hunter Diamond: Our first question comes from Xi Jinping Lee, please go ahead. Hello, thanks for the management and losing things at the SEC. And I have three questions about the results, and I will ask them one by one.

Speaker Change #154: China marketing and this so this compatibility combined with our accumulated strength.

Speaker Change #154: In water purification manufacturing R&D and product strengths and will help us to explore the North America market.

Speaker Change #154: At present, we have both domestic.

Xiaoping Chen: As for the performance, and so there are some water solutions that can be introduced, as well as the results of both the rolling and the ESP. And how did the Xiaomi brand and the Miami brand products perform? So, thank you. That's my first question. Okay, thank you. Let me just get to your question. As for the home water solution business, we had 13% increase in revenue for the first half of $104.

Speaker Change #154: Marketing and offer self service system.

Speaker Change #154: Covering both online and offline channels, including the sales channels.

Speaker Change #154: Mainstream e-commerce platforms.

Speaker Change #154: As well.

Speaker Change #155: Laughs touring sales on new media platforms.

Speaker Change #155: We are also actively expanding the overseas market.

Speaker Change #156: Besides the Orange no you read it.

Speaker Change #156: King.

Speaker Change #156: And our South East Asia market, we are taking steps to expand the north American market.

Xiaoping Chen: We are dedicated to utilizing AI technology to provide better bringing water solutions for household worthwhile.

Speaker Change #156: We see.

Speaker Change #157: That the household water Purifier North America has great potential.

Xiaoping Chen: For me, we will not prior focus on leveraging its co-strands in the water purification sector to elevate our overall operational trajectory.

Xiaoping Chen: Compared to the same period of last year, many due to further focus on home water solution business, as well as deepening our strategic cooperation with Xiaomi on this category. Through continuous water adjustment and the effective implementation of a focused strategy, we have achieved significant success in sales-wise strategy enhancing our brand strength. But strategically allowing our sales channel with differentiated products, we have successfully expanded our market share, and further promoted our mineral water purified.

Xiaoping Chen: Maybe we're reaching our extensive expertise in AI technology application, intelligent hardware and software development.

Speaker Change #157: And also it's a great tonnage.

Speaker Change #158: We have the industry, leading pizza factory as our strong quality assurance user.

Speaker Change #158: Using AI technology to give lap water purifiers.

Speaker Change #158: All of the users can also download the APB for device management.

Speaker Change #158: Real time monitoring the water quality and the usage.

Speaker Change #158: DIY replacement filters for reducing the maintenance cost.

Speaker Change #159: Meanwhile, we have all the rage.

Speaker Change #160: Reserves up technology treat employees customize the product development demand around the world at.

Xiaoping Chen: In July, the Xiaomi AI water purifier bank served in the water purified sector while our new spring product series claimed that the top position in the un-sync water purified category on China's leading new media platforms. Additionally, we have ranked 439 in the 2020 fourth China's top 500 brands, listed released by the water brand lab, with the brand value of 15 billion RMB. We will maintain close cooperation with our strategic partners while expanding deep-seated China's and the products to jointly increase the penetration rate of the water purified market and make AI water purified as essential for the better life. Thank you. Please go on.

Speaker Change #160: All of which has built a solid support for the army to expand in the global market.

Connor: Thank you Connor.

Connor: Great. Thank you for the detailed answers that's all I have for question. Thank you.

Connor: Yeah.

Speaker Change #162: And that concludes our question and answer session I would like to turn the conference back over to management for any closing.

Matt: Hi, Matt.

Speaker Change #164: 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 the left side well, our investor relationship consulting the Piacente group. Thank you Goodbye.

Speaker Change #164: Thank you. Thank you bye bye.

Speaker Change #164: Yeah.

Xiaoping Chen: My second question is what is your purpose of silencing IoT business, and what are the remaining categories? Can you explain why you choose these categories to remain? Can you also introduce some financial results of the remaining categories? Thank you. It's a very good question. The business ways that are investing are certain underperforming IoT business. So that way can quickly restore our operations and get the company back to be not in status.

Xiaoping Chen: Thank you. It's a very good question. The business ways that are investing are certain underperforming IoT business. So that way can quickly restore our operations and get the company back to be not in status. And certain IoT business has shown a trend of construction in scale during the past few years, which to certain extent has dragged down our overall operating efficiency. Therefore, we have started to streamline and focus on more productivity in 203 and invest in our resources in more advantages product categories.

Xiaoping Chen: And certain IoT business has shown a trend of construction in scale during the past few years, which to certain extent has dragged down our overall operating efficiency. Therefore, we have started to streamline and focus on more productivity in 203 and invest in our resources in more advantages product categories. As we mentioned in the beginning, at the ER for the first half of 2014, based on all of the preliminary estimates, the estimate of revenue of continuing business was no less than 500 million revenue.

Xiaoping Chen: As we mentioned in the beginning, at the ER for the first half of 2014, based on all of the preliminary estimates, the estimate of revenue of continuing business was no less than 500 million revenue. With the estimated income from operation, more than 50 million for the first half of 2014. Also, we estimate that top time of the continuing business, we are rich between 1.7 billion revenue to 1.9 billion revenue for the full year of 204.

Xiaoping Chen: With the estimated income from operation, more than 50 million for the first half of 2014. Also, we estimate that top time of the continuing business, we are rich between 1.7 billion revenue to 1.9 billion revenue for the full year of 204. With the income from the operation between 110 million revenue to 130 million revenue.

Xiaoping Chen: With the income from the operation between 110 million revenue to 130 million revenue. Next, we plan to sort out the overall revenue structure with the new home water solution business. Consumables and other appliances and services. Although, it's not finalized yet, the new home water solution business will include underspeaks, water purifies, pipeline water dispensers, free installation products, like top water, defenders, smart cattle, as well as centralized water purification and solving systems. And water heaters covering home scenarios, including kitchen, living room, bathroom, and a whole house of water systems. Thank you. Please go on.

Unknown Executive: Thank you.

Xiaoping Chen: Next, we plan to sort out the overall revenue structure with the new home water solution business. Consumables and other appliances and services. Although, it's not finalized yet, the new home water solution business will include underspeaks, water purifies, pipeline water dispensers, free installation products, like top water, defenders, smart cattle, as well as centralized water purification and solving systems. And water heaters covering home scenarios, including kitchen, living room, bathroom, and a whole house of water systems. Thank you. Please go on. Thank you.

Xiaoping Chen: We'll me have tried to redefine home water solutions and develop a unique equipment plus consumables business model. We use AI technology to holistically enhance the user's experience, providing remote, built-in monitoring of water quality and usage, allow the family filter replacement reminders. One click re-altering and the DLI replacement options leading to a higher filter replacement.

Xiaoping Chen: Our encouraging water-based self-cleaning technology significantly complains extent filter lab sense and reduces the cost of water purification, making smart water purifiers a reliable cut-off freeze and affordable essentials for a healthy lab cell.

Hunter Diamond: And my last question is, what does the management expect to see improve after this divestment?

Xiaoping Chen: And my last question is, what does the management expect to see improve after this divestment?

Xiaoping Chen: And my last question is, what does the management expect to see improve after this divestment? And what will be the focusing form in the future? Thank you. That's my last question. Okay. The business, we have a certain unperforming IoT business. All fundamental has turned around. Perlings, we are improved significantly, and let's get the confidence back to our benign citizens. As we mentioned in the before, based on our preliminary estimate, the revenue also, the continuum business were more than 800 million with the estimated income from operation, more than 15 million revenue for the first half of 2004.

Hunter Diamond: And what will be the focusing form in the future? Thank you.

Xiaoping Chen: And what will be the focusing form in the future? Thank you.

Xiaoping Chen: That's my last question. Okay. The business, we have a certain unperforming IoT business. All fundamental has turned around. Perlings, we are improved significantly, and let's get the confidence back to our benign citizens. As we mentioned in the before, based on our preliminary estimate, the revenue also, the continuum business were more than 800 million with the estimated income from operation, more than 15 million revenue for the first half of 2004. The full year guidance of the continuum business is between 1.7 billion to 1.9 billion revenue in top line and 110 million to 130 million revenue of the income from operations. As we can see, there is the income of our business we are strength, our overall scale in short term, but we will produce significant improvement on the operation resultant.

Xiaoping Chen: As of the end of the first half of 2024, Wyoming AI and water solution were used by nearly 5.9 million household users.

Xiaoping Chen: In terms of the production innovation of the industry-leading technology, Wyoming has consistently driven technological breakthroughs over the past decade.

Xiaoping Chen: The full year guidance of the continuum business is between 1.7 billion to 1.9 billion revenue in top line and 110 million to 130 million revenue of the income from operations. As we can see, there is the income of our business we are strength, our overall scale in short term, but we will produce significant improvement on the operation resultant.

Xiaoping Chen: In the short term, this strategy reorganization may lead to a side reduction in our business scale, but it will further enhance company's profitability, thriving healthy and sustainable long-term growth.

Xiaoping Chen: Following the major business reorganization, well-me will embrace a new mission, AI for better water.

Xiaoping Chen: Through this reorganization, we can concentrate on our resources to focus fully on the company's most powerful water provocation 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 purified data factories and petitive advantages. Second, we will increase our water provocation products, domestic market penetration, continuing to leave healthy mineral water trained and promoting access for household users.

Xiaoping Chen: We developed a template large-flat water purifier that provides fresh drinking water 24-7, by upgrading the water flux up to 22,000 gallons with spend-day water purifier uses a scenario from drinking to cooking, washing vegetables and the more.

Xiaoping Chen: In addition, we implemented ERO technology to offer sustainable water policy, ranging from pure water to natural mineral water that is nutrients in housing living.

Xiaoping Chen: At the Wyoming Spring Water Purifier, New Product Launch event in March 2024, we unveiled the Wyoming Clinical Mineral AI Water Purifier. Its innovative mineralizing filter technology enables the sustained release of beneficial minerals, making the conversation of these minerals in the water almost identical to that of a natural mineral water, allowing our users to enjoy fresh mineral water at home.

Xiaoping Chen: Well, we offer a wide range of products, covering various home scenarios, from single-functional filtration to integrated-function filtering, instant-fating cooling and ice-making capacities, then-encaging living room and a whole-house application.

Xiaoping Chen: Third, we will actively expand in key overseas market, such as the Northern America and the Southeast Asia market to promote Viomi's global strategy, enable families abroad to enjoy fresh and healthy water through our product. Thank you.

Xiaoping Chen: Our products, comprehensively address the increasing global demand for cleaner, fresher, and healthier drinking water.

Unknown Executive: Okay, the next question comes from Hunter Diamond with Diamond Equity Research. Please go ahead.

Hunter Diamond: Okay, the next question comes from Hunter Diamond with Diamond Equity Research.

Hunter Diamond: Okay, the next question comes from Hunter Diamond with Diamond Equity Research. Please go ahead. Hi, congratulations on the results. Some of my questions were already answered, but a few more. My first question was, what are the expected impacts of extended filter lifespan technology on customer retention and recurring revenue considering the reduced need for frequent filter replacements? Well, through the application of AI technology, we hope to eat in hand with a customer.

Hunter Diamond: Please go ahead. Hi, congratulations on the results. Some of my questions were already answered, but a few more.

Hunter Diamond: Hi, congratulations on the results. Some of my questions were already answered, but a few more.

Xiaoping Chen: My first question was, what are the expected impacts of extended filter lifespan technology on customer retention and recurring revenue considering the reduced need for frequent filter replacements? Well, through the application of AI technology, we hope to eat in hand with a customer. Excuse me? Can you hear me? Yes, indeed. Increase acceptance of water purified and reduce the cost of water The increasing in-store base, we are bringing recurring revenue from consumables. According to our observation, the market size and penetration rate of China, household water purifier market, maintain a low level for a long time.

Xiaoping Chen: In terms of product manufacturing and technology development, Wyoming operates a world-leading water purifier data factory, hosting an annual production capacity of 5 million water purifier and 30 million filters.

Xiaoping Chen: We are dedicated to utilizing AI technology to provide better bringing water solutions for household world-wide.

Xiaoping Chen: Maybe we are reaching our extensive expertise in AI technology applications, intelligence hardware and software development.

Hunter Diamond: Excuse me? Can you hear me? Yes, indeed. Increase acceptance of water purified and reduce the cost of water The increasing in-store base, we are bringing recurring revenue from consumables. According to our observation, the market size and penetration rate of China, household water purifier market, maintain a low level for a long time. Lots of customers switch to other ways to get purified water and do not change the filter many because of the frequently changing filters causing a lot of problems and extra costs.

Xiaoping Chen: Well-me has tried to redefine home water solutions and develop a unique equipment plus consumable business model. We use AI technology to holistically enhance the user's experience, providing remote, built-in monitoring of water quality and usage, a grow of a timely filter replacement reminder.

Xiaoping Chen: Its highly integrated industrial chain layout, highly automated production lines, high standard cooling production workshops, and the fully-traceable quality control system facilitates continuous rigs using water purification, achieving an optimal value efficiency and the mating average global market demand.

Xiaoping Chen: We have established the one-house industry's most comprehensive R&D system, mastering advanced filtration technology and the material manufacturing process of the results.

Xiaoping Chen: Lots of customers switch to other ways to get purified water and do not change the filter many because of the frequently changing filters causing a lot of problems and extra costs. 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 Kuan Lun AI water purifier example.

Hunter Diamond: 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 Kuan Lun AI water purifier example. To one of our best-selling products, it comes from two filters. One is a composite filter with two-year lifespan. Santa Claus is around 300 remembes. And the other is our own filter with average lifespan of 5 to 6 years.

Xiaoping Chen: To one of our best-selling products, it comes from two filters. One is a composite filter with two-year lifespan. Santa Claus is around 300 remembes. And the other is our own filter with average lifespan of 5 to 6 years. Santa Claus is around 900 remembes. For a family with daily usage of the water of 10 liters of water, assuming they are using the water purifier for 8 years, the annual cost for the filters is less than 230 remembes.

Hunter Diamond: Santa Claus is around 900 remembes. For a family with daily usage of the water of 10 liters of water, assuming they are using the water purifier for 8 years, the annual cost for the filters is less than 230 remembes. This is a very attractive and has obviously a advantage comparing to water water. You can do one click to make the water through the APP change the filter by DIY with three seconds.

Xiaoping Chen: This is a very attractive and has obviously a advantage comparing to water 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 purifier. Increasing the installation rate and guarantee an acceptable customer consumption. In short, at VME, we added AI for better water using AI technology to make better water and durable reliable products promoting the customer's increase in healthy awareness and allow more customers to use AI purifiers to improve the quality of the living. Further, you improve the penetration rate of the household market. In the meanwhile, bring high quality and sustainable scale growth of the company. Thank you. Please go on. Thank you.

Hunter Diamond: It's pretty simple and easy. We believe it will bring more and more people to purchase and continue to use water purifier. Increasing the installation rate and guarantee an acceptable customer consumption. In short, at VME, we added AI for better water using AI technology to make better water and durable reliable products promoting the customer's increase in healthy awareness and allow more customers to use AI purifiers to improve the quality of the living. Further, you improve the penetration rate of the household market. In the meanwhile, bring high quality and sustainable scale growth of the company. Thank you. Please go on. Thank you.

Xiaoping Chen: As of the end of the first half of 2024, well-made AI home water solution were used by nearly 5.9 million household users.

Xiaoping Chen: And my next question was, can you provide more details on Bione's omnichannel marketing and service supporting the expansion into international markets, particularly the U.S, where competition is very strong. Right, thank you. That's very good question. Regarding the China expansion, we are exceeding omnichinal marketing and service capability combined with our accumulated strength in water certification manufacturing, and the product strength will help us to explore the North American market. At present, we have both domestic marketing and upper sales service systems covering both online and offline channels, including the sales channels of mainstream e-commerce platforms.

Xiaoping Chen: That's very good question. Regarding the China expansion, we are exceeding omnichinal marketing and service capability combined with our accumulated strength in water certification manufacturing, and the product strength will help us to explore the North American market. At present, we have both domestic marketing and upper sales service systems covering both online and offline channels, including the sales channels of mainstream e-commerce platforms. As well, let's train sales on new media platforms. We are also actively expanding the overseas market.

Xiaoping Chen: We have a mass over 1,600 water purification patterns and attracts numerous global talents, management, marketing, product development, and quality control.

Xiaoping Chen: In terms of the production innovation of the industry leading technology, well-made has consistently driven technological breakthroughs over the past decade.

Xiaoping Chen: Through continuous product adjustments and effective implementation of our vocal strategy, we have achieved a significant success, while battling and hensing our band strength.

Xiaoping Chen: As well, let's train sales on new media platforms. We are also actively expanding the overseas market. Besides the original European and Southeast Asia market, we are kicking steps to expand the North American market. We see that the household water purify North America has great potential, and also it's a great challenge. We have the industry leading data factory as our strong quality assurance. Using AI technology to develop water purify, our overseas users can also download the APP for device management, real time monitoring the water quality and usage.

Xiaoping Chen: In addition, with the statement, we implemented ERO technology to offer sustainable water policy, ranging from pure water to natural mineral water, getting nutrients in housing living.

Xiaoping Chen: Besides the original European and Southeast Asia market, we are kicking steps to expand the North American market. We see that the household water purify North America has great potential, and also it's a great challenge. We have the industry leading data factory as our strong quality assurance. Using AI technology to develop water purify, our overseas users can also download the APP for device management, real time monitoring the water quality and usage. DIY replacements of the filters reducing the maintenance cost.

Xiaoping Chen: 5th virtually align our style channels with differentiated products.

Xiaoping Chen: We have successfully expanded our smartly shares and further promoted our meet and roll world repair buyers.

Xiaoping Chen: At the Valme Spring water purifier, New Project Lunch event in March 2024, we unveiled the Valme Quinoa Miner AI Water purifier. Its innovative mineralized filter technology enables the sustained release of fanatical minerals, making the conversation of base minerals in the water almost identical to that of the natural mineral water, allowing our users to enjoy fresh mineral water at home.

Xiaoping Chen: In July, the Viomi AI world repair buyer ranked third in the world repair buyer sector, where our new spring products theories claim the pop station.

Xiaoping Chen: Valme offers a wide range of products, covering various home scenarios, from single-function filtration to integrated-function filtering, instant-fating cooling and ice-making capacities, then-encaging living room and a whole-house application, our products comprehensively address the increasing global demand for cleaner, fresher, and healthier drinking water.

Xiaoping Chen: DIY replacements of the filters reducing the maintenance cost. Meanwhile, we have a enriched reserves of technology to increase, customize the product development demand around the world, all of which has built up solid support for Viomi to expand in the global market. Daniel Ponder. Great. Thank you for the detailed answers. That's all I have for questions. Thank you.

Xiaoping Chen: Meanwhile, we have a enriched reserves of technology to increase, customize the product development demand around the world, all of which has built up solid support for Viomi to expand in the global market. Daniel Ponder. Great. Thank you for the detailed answers.

Xiaoping Chen: In the end, they think world repair buyer category on China's leading new media platform.

Xiaoping Chen: Additionally, well-made ranks 430 nights play in 2024 China's top 400 brands released by the world brand live with a brand value of 15.336 billion RMB.

Xiaoping Chen: Following our major basis reorganization, global water will become the company's vision.

Xiaoping Chen: Its highly integrated industrial chain layout, highly automated production lines, high standard product production workshops, and the fully-traceable quality control system facilitates continuous rigs using water purification, achieving an optimal value efficiency and the mating average global market demand.

Hunter Diamond: That's all I have for questions. Thank you.

Unknown Executive: That's all I have for questions. Thank you.

Xiaoping Chen: We have established the world's industrial most comprehensive R&D systems, mastering advanced filtration technology and the materials manufacturing process as a result.

Xiaoping Chen: As a specialized professional company, a 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.

Xiaoping Chen: We have a mass over 1,600 water purification patterns and attract numerous global talent in management, marketing, product development, and quality control.

Xiaoping Chen: Through continuous product adjustments and effective implementation of our vocal strategy, we have achieved a significant success in self-revealing and enhancing our strength.

Xiaoping Chen: 5th virtually align our style channels with differentiated products.

Xiaoping Chen: We have successfully expanded our market share and further promoted our meet-and-a-world repair buyer.

Unknown Executive: And acting foods are a question and the answer session.

Unknown Executive: And acting foods are a question and the answer session. I would like to turn the conference back over to management for any closing comments. 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 PSNK group. Thank you. Goodbye. Thank you. Bye bye.

Xiaoping Chen: First, we will strengthen our collaboration with strategic partners to fully leverage our water to the purifier they got accurate, compassionate mates around these days.

Xiaoping Chen: Second, we will increase our water certification products domestic market penetration, continuing to leave the healthy mineral water trend and promoting the best for household users.

Xiaoping Chen: Third, we will actively expand and keep overseeing modules to promote a balanced global strategy and now families are brought to enjoy fresh and healthy water through our products.

Xiaoping Chen: In the meantime, we are maintaining a sufficient capital reserve and ensure stable basic growth, providing long-term returns for our users and shareholders.

Xiaoping Chen: In July, the Viomi AI repair buyer ranked third in the repair buyer sector, where our new spring products theories claim the pop station.

Unknown Executive: I would like to turn the conference back over to management for any closing comments. 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 PSNK group. Thank you. Goodbye. Thank you. Bye bye.

Unknown Executive: Bye bye.

Xiaoping Chen: Thank you.

Xiaoping Chen: In the end, our sink water repair category on China's leading new meet-and-a-zone.

Xiaoping Chen: Additionally, well-made ranks 430 nights play in 2024, China's top 400 brands, released by the world brand live, with a brand value of 15.336 billion RMB.

Claire Ji: That concludes our funder's remarks.

Xiaoping Chen: Following our major visits with organizations, global water will become the company's vision.

Xiaoping Chen: As a specialized professional company, a 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.

Xiaoping Chen: First, we will strengthen our collaboration with strategic partners to fully leverage our water-based purifier data factories' compassionate needs.

Xiaoping Chen: Second, we will increase our water-certification products' domestic market penetration, continuing to leave the healthy, mineral water trend, and promoting the best for household users.

Xiaoping Chen: Third, we will actively expand and keep overseeing modules to promote a balanced global strategy, and now families are brought to enjoy fresh and healthy water through our products.

Xiaoping Chen: In the meantime, we are maintaining a sufficient capital reserve and ensure stable basic growth, providing long-term returns for our users and shareholders.

Sam Yang: I will now turn the call over to our head of strategic department, Mr. Samyang, to discuss our financial performance.

Xiaoping Chen: Thank you.

Sam Yang: Thank you.

Sam Yang: Thank you, Ms. Chen and Claire.

Claire Ji: That concludes our funder's remarks.

Sam Yang: Thank you to everyone.

Sam Yang: I will now turn the call over to our head of the capital strategy department, Mr. Samyang, to discuss our financial performance.

Sam Yang: Thank you.

Sam Yang: For joining us today, I will go for an audit financial result for the first half of 2004.

Sam Yang: Mr. Samyang, thank you.

Sam Yang: Neta revenues were 1 billion and 40.2 million revenue compared to 1 billion, 304.4 million revenue for the same period of 203. This decrease was managed due to strategic shifts in focus toward home water solutions, resulting in decrease in revenues from the IoT at home portfolio, as well as more appliances and others.

Sam Yang: Mr. Samyang and Claire, thank you to everyone for joining us today.

Sam Yang: Revenues from the IoT at home portfolio decreased by 30.3% to 482 million revenue from 6191.7 million revenue for the same period of 203.

Sam Yang: I will go for our unordered financial results for the first half of 2004.

Sam Yang: The decrease was primarily due to the company strategic division to face out a certain unforeseen warming achieved in smart radiators and air conditions.

Sam Yang: Net-a-Rap news were 1 billion and 40.2 million revenue compared to 1 billion, 304.4 million revenue for the interior of 103.

Sam Yang: Ameen for more sustainable and healthy growth.

Sam Yang: This decrease was managed due to a strategic shift in focus toward home water solutions, resulting in decrease in revenues from the IoT at home portfolio, as well as more appliances and others. Revenues from the IoT at home portfolio decreased by 30.3% to 482 million revenue from 691.7 million revenue for the same period of 103.

Sam Yang: Revenues from home water solutions increased by 12.9% to 323.5 million revenue from 286.6 million revenue for the same period of 2023. The increase was primary driven by our intensified focus on water purification products.

Sam Yang: The decrease was primarily due to the company strategic division to face out a certain Ameen for more sustainable and healthy growth.

Sam Yang: Revenues from consumables remain stable as 135.8 million revenue from 135.9 million revenue for the same period of 2023. Primary due to the companies on-going effort to streamline SKUs within this category.

Sam Yang: Both products was 258.1 million revenue compared to 286.8 million revenue for the same period of 2023.

Sam Yang: Revenues from consumables remain stable as 135.8 million revenue from 135.9 million revenue for the same period of 2023.

Sam Yang: Both margins were 24.8% compared to 22% percent for the same period of 2023. The increase was primary driven by the companies' efforts on expanding revenue contribution of higher post-margined core product categories.

Sam Yang: Due to operating expenses decreased by 19.2% to 292.3 million revenue from 361.8 million revenue for the same period of 2023. The adjusted operating expenses excluding share-based compensation were RMB 281.8 million representing a year-over-year degrees of 21.8%.

Sam Yang: Scott Powell was 258.1 million revenue compared to 286.8 million revenue for the same period of 2023.

Sam Yang: The decrease was driven by the company's strategic evaluation of resource efficiency and focused on more advantages, areas to achieve the best operating result. In greater detail, R&D expenses slightly decreased by 1.2% to 109.2 million revenue from 109.5 million revenue for the same period of 2023.

Sam Yang: Scott's margin was 24.8% compared to 22% for the same period of 2023. The increase was primary driven by the company's effort on expanding revenue contribution of higher post-margined core product categories.

Sam Yang: Mainly due to a decrease in stock cost, partially offset by higher share-based compensation expenses, is outing from extension of share incentive plans, expiration in terms of 20 years.

Sam Yang: Telling on the marketing expenses decreased by 33.2 million revenue from 109.5 million revenue 0.1% to 142.9 million RMB from 213.5 million RMB for the same period of the 233. Many due to a decrease in your logistic experience online platform service fees, and a lot of advertising and marketing fees.

Sam Yang: A result of the company's direct risk cost control measures, optimization of sales channels, and a refinement of the product mix.

Sam Yang: GNA expenses increased by 6.2% to 41.2 million RMB compared to 38.8 million RMB for the same period of the 233. Primarily due to a increase in professional fees, depreciation, and administrative expenses related to operation of the technology part, partially offset by a decrease in the estimated allowance for accounts and notes receivables.

Sam Yang: Telling on the marketing expenses decreased by 33.8 million revenue 0.1% to 142.9 million RMB from 213.5 million RMB for the same period of the 233. Many due to a decreasing in logistics, expensive online platform service fees, and a lot of advertising and marketing fees.

Sam Yang: Net income attribable to ordinary shareholders of the company was 6 million RMB, and in the non-gab net income attribable to ordinary shareholders of the company was 16.5 million RMB.

Sam Yang: We achieved this with result, as we strategically shift efforts towards home water solution products and the implementing street cost control measures.

Sam Yang: Primarily due to a increase in professional fees, depreciation, and administrative expenses related to the operation of the technology part, partially offset by a decrease in the estimated allowance for accounts and notes receivables.

Sam Yang: Traditionally, our balance sheet remains healthy.

Sam Yang: As of June 30, 2024, the company had cash and cash, and people in the upper 701.6 million RMB restrict the cash of 206.9 million RMB.

Sam Yang: We achieved this with result as we strategically shift efforts towards home water solution products and implementing strict cost control measures.

Sam Yang: Short-term deposit of 142.6 million RMB, and short-term investment of 60.1 million RMB.

Sam Yang: Now, let's turn to our outlook.

Sam Yang: For the full year of 2024, we current experts.

Sam Yang: For the full year of 2021-04, we current experts.

Sam Yang: Refuse of the continuous business to be between 1.7 million RMB and 1.9 million RMB.

Sam Yang: Refuse of the continuous business to be between 1.7 million RMB and 1.9 million RMB. Income from operations of the continuing business to be between 110 million RMB and 130 million RMB. The above outlook is based on our current market conditions and it reflects the company's current and the preliminary estimate of the market and operating conditions and customer demand, all of which are subject to change.

Sam Yang: Income forms operations of the continuing business to be between 110 million RMB, and 130 million RMB. The above outlook is based on our current market conditions and reflects the company's current and the preliminary estimate of the market and operating conditions and the customer demand, all of which are subject to change.

Sam Yang: Thank you.

Sam Yang: Okay, this concludes our prepared rain box.

Sam Yang: Okay, this concludes our prepared remarks.

Unknown Executive: We will now open the call for Q&A Mr. Chen and our funder and Mr. Yang, which on this session and answer questions.

Unknown Executive: We will now open the call for Q&A, Mr. Chen and our founder, and Mr. Yang, who joined this session and answer questions.

Unknown Executive: Operator, please go ahead.

Unknown Executive: Our leader, please go ahead.

Unknown Executive: We will now begin the question and answer session.

Unknown Executive: To ask a question, you may press star the one on your telephone keypad.

Unknown Executive: If you are using a speaker phone, please pick up your handset before pressing the keys.

Unknown Executive: If you're using a speaker phone, please pick up your handset before pressing the keys.

Unknown Executive: If at any time, your question has been addressed and you would like to withdraw your question, please press star and then two.

Unknown Executive: If at any time, your question has been addressed and you would like to withdraw your question, please press star, and then two.

Unknown Executive: So, for the benefit of all participants on today's call, if you wish to ask the question, can you manage me in Chinese please immediately repeat your question in English.

Unknown Executive: So for the benefit of all participants on today's call, if you wish to ask the question, can you manage in Chinese please immediately repeat your question in English.

Hunter Diamond: Our first question comes from Xi Jinping Lee, please go ahead.

Hunter Diamond: Our first question comes from Jason Lee, please go ahead.

Hunter Diamond: Hello, thanks for the management and losing things at the SEC.

Hunter Diamond: Hello, hey thanks for the management and losing things at the SEC and I have three passions about the results and I will ask you one by one.

Hunter Diamond: And I have three questions about the results, and I will ask them one by one.

Hunter Diamond: Okay, so the performance and so there are some water solution business can you introduce what is the result of both the rolling and the ESP and how does the Xiaomi brand and biomeps can provide support to that survey.

Hunter Diamond: As for the performance, and so there are some water solutions that can be introduced, as well as the results of both the rolling and the ESP.

Hunter Diamond: Thank you, that's my first session.

Hunter Diamond: And how did the Xiaomi brand and the Miami brand products perform?

Unknown Executive: Okay, thank you.

Hunter Diamond: So, thank you.

Xiaoping Chen: Let me just get to your question.

Hunter Diamond: That's my first question.

Xiaoping Chen: As for the home water solution business, we had 13% increase in revenue for the first half of the year in 2004. Compared to the same period of last year, many due to further focus on home water solution business as well as dipping our strategic cooperation with the Xiaomi on this category.

Unknown Executive: Okay, thank you.

Xiaoping Chen: Through continuous management and the effective implementation of our focus strategy, we have achieved significant success in sales-wide strategy enhancing our brand strength.

Xiaoping Chen: Let me just get to your question.

Xiaoping Chen: But strategically, allowing our sales channel with differentiated products, we have successfully expanded our market share and further promoted our mineral water purified.

Xiaoping Chen: As for the home water solution business, we had 13% increase in revenue for the first half of $104. Compared to the same period of last year, many due to further focus on home water solution business, as well as deepening our strategic cooperation with Xiaomi on this category.

Xiaoping Chen: In July, the Xiaomi AI water purify ranked third in the water purified sector while our new spring product series claimed that the top position in the un-sync water purified category on channels leading new media platforms.

Xiaoping Chen: Through continuous water adjustment and the effective implementation of a focused strategy, we have achieved significant success in sales-wise strategy enhancing our brand strength.

Xiaoping Chen: Additionally, Xiaomi ranked 439 in the 2020 fourth Chinese top 500 brands listed released by the water brand lab with the brand value of 15 billion revenue.

Xiaoping Chen: But strategically allowing our sales channel with differentiated products, we have successfully expanded our market share, and further promoted our mineral water purified.

Xiaoping Chen: We were maintaining close cooperation with our strategic partners while expanding deep-seated channels and the products to jointly increase the penetration rate of the water purified market and make AI water purified as essential for the better life.

Xiaoping Chen: Thank you.

Xiaoping Chen: Additionally, we have ranked 439 in the 2020 fourth China's top 500 brands, listed released by the water brand lab, with the brand value of 15 billion RMB.

Unknown Executive: Please go on.

Xiaoping Chen: We will maintain close cooperation with our strategic partners while expanding deep-seated China's and the products to jointly increase the penetration rate of the water purified market and make AI water purified as essential for the better life.

Hunter Diamond: My second question is what is your purpose of silencing IoT business and what are the remaining categories?

Unknown Executive: Thank you.

Hunter Diamond: Can you explain why you choose these categories to remain?

Hunter Diamond: Please go on.

Hunter Diamond: Can you also introduce some financial results of the remaining categories?

Hunter Diamond: My second question is what is your purpose of silencing IoT business, and what are the remaining categories?

Hunter Diamond: Thank you.

Hunter Diamond: Can you explain why you choose these categories to remain?

Xiaoping Chen: It's a very good question.

Hunter Diamond: Can you also introduce some financial results of the remaining categories?

Xiaoping Chen: The business ways that are investing are certain underperforming IoT business so that we can quickly restore our operations and get the company back to being non-stateers.

Hunter Diamond: Thank you.

Xiaoping Chen: And certain IoT business has shown a trend of construction in scale during the past few years, which to certain extent has dragged down our overall operating efficiency.

Xiaoping Chen: It's a very good question.

Xiaoping Chen: Therefore, we have started to streamline and focus on more productivity in 203 and invest in our resources in more advantages product categories.

Xiaoping Chen: The business ways that are investing are certain underperforming IoT business.

Xiaoping Chen: As we mentioned in the beginning, at the ER for the first half of 104, based on all of the preliminary estimates, the estimate of the revenue of the continuing business was no less than 500 million revenue.

Xiaoping Chen: So that way can quickly restore our operations and get the company back to be not in status.

Xiaoping Chen: With the estimated income from operation, more than 50 million for the first half of 106.

Xiaoping Chen: And certain IoT business has shown a trend of construction in scale during the past few years, which to certain extent has dragged down our overall operating efficiency.

Xiaoping Chen: Also, we estimate that top time of the continuing business, we are rich between 1.7 billion revenue to 1.9 billion revenue for the 204.

Xiaoping Chen: Therefore, we have started to streamline and focus on more productivity in 203 and invest in our resources in more advantages product categories.

Xiaoping Chen: With the income from the operation between 110 million revenue to 130 million revenue.

Xiaoping Chen: Next, we plan to sort out the overall revenue structure with the new home water solution business.

Xiaoping Chen: Also, we estimate that top time of the continuing business, we are rich between 1.7 billion revenue to 1.9 billion revenue for the full year of 204.

Xiaoping Chen: Consumables and other appliances and services, although it's not finalized yet, the new home water solution business will include underspeak, water purifies, hot pipeline water dispensers, free installation products like top water, dependers, smart catalysts, as well as centralized water purification and assaulting systems. And water heaters covering home scenarios, including kitchen, living room, bathroom, and a whole house of water system.

Xiaoping Chen: With the income from the operation between 110 million revenue to 130 million revenue.

Unknown Executive: Thank you.

Xiaoping Chen: Next, we plan to sort out the overall revenue structure with the new home water solution business.

Unknown Executive: Please go on.

Xiaoping Chen: Consumables and other appliances and services.

Hunter Diamond: Thank you.

Xiaoping Chen: Although, it's not finalized yet, the new home water solution business will include underspeaks, water purifies, pipeline water dispensers, free installation products, like top water, defenders, smart cattle, as well as centralized water purification and solving systems. And water heaters covering home scenarios, including kitchen, living room, bathroom, and a whole house of water systems.

Hunter Diamond: My last question is, what does the management expect to see improve after the development?

Unknown Executive: Thank you.

Hunter Diamond: And what will be the focusing forms in the future?

Unknown Executive: Please go on.

Hunter Diamond: Thank you.

Unknown Executive: Thank you.

Unknown Executive: That's my last question.

Hunter Diamond: And my last question is, what does the management expect to see improve after this divestment?

Unknown Executive: Okay.

Hunter Diamond: And what will be the focusing form in the future?

Xiaoping Chen: The business we have served on performing IoT business, all fundamental has turned around.

Hunter Diamond: Thank you.

Xiaoping Chen: Perlings, we are improved significantly and get the confidence back to the nine civilians.

Hunter Diamond: That's my last question.

Xiaoping Chen: As we mentioned in the before, based on our preliminary estimates, the revenue of the continuing business were more than 800 million with the estimated income from operation, more than 15 million revenue for the first half of 2024. The full-year guidance of the continuing businesses between 1.7 billion to 1.9 billion revenue in top line, and 110 million to 130 million revenue of the income from operations.

Xiaoping Chen: Okay.

Xiaoping Chen: As we can see, there is the income of our business we are stringed.

Xiaoping Chen: The business, we have a certain unperforming IoT business.

Xiaoping Chen: Our overall scale in short term, but we will produce significant improvement on the operation resultant.

Xiaoping Chen: All fundamental has turned around.

Xiaoping Chen: So this reorganization, we can compensate in our resources to focus fully on the company's most powerful water provocation field.

Xiaoping Chen: Perlings, we are improved significantly, and let's get the confidence back to our benign citizens.

Xiaoping Chen: And further, improve the brand influence of Viomi AI water in the following three aspects.

Xiaoping Chen: As we mentioned in the before, based on our preliminary estimate, the revenue also, the continuum business were more than 800 million with the estimated income from operation, more than 15 million revenue for the first half of 2004.

Xiaoping Chen: First, we will strengthen our collaboration with the strategic partners to fully leverage our water purified data factories and competitive advantages.

Xiaoping Chen: The full year guidance of the continuum business is between 1.7 billion to 1.9 billion revenue in top line and 110 million to 130 million revenue of the income from operations.

Xiaoping Chen: Second, we will increase our water provocation products, domestic market penetration, continuing to lead healthy mineral water trains, and promoting excess well-housed water users.

Xiaoping Chen: As we can see, there is the income of our business we are strength, our overall scale in short term, but we will produce significant improvement on the operation resultant.

Xiaoping Chen: Third, we will actively expand in key overseas markets, such as the Northern America and the Southeast Asia markets to promote Viomi's global strategy, enable families abroad to enjoy fresh and healthy water through our product.

Unknown Executive: Thank you.

Xiaoping Chen: First, we will strengthen our collaboration with strategic partners to fully leverage our water purified data factories and petitive advantages.

Hunter Diamond: Okay, the next question comes from Hunter Diamond with Diamond Equity Research.

Xiaoping Chen: Second, we will increase our water provocation products, domestic market penetration, continuing to leave healthy mineral water trained and promoting access for household users.

Hunter Diamond: Please go ahead.

Hunter Diamond: Hi, congratulations on the result.

Unknown Executive: Thank you.

Hunter Diamond: Some of my questions were already answered, but a few more.

Hunter Diamond: Okay, the next question comes from Hunter Diamond with Diamond Equity Research.

Hunter Diamond: My first question was, what are the expected impacts of extended filter lifespan technology on customer retention and recurring revenue, considering the reduced need for frequent filter replacements?

Hunter Diamond: Please go ahead.

Xiaoping Chen: Well, through the application of AI technology, we hope to even have with the customer retention.

Hunter Diamond: Hi, congratulations on the results.

Xiaoping Chen: Excuse me?

Hunter Diamond: Some of my questions were already answered, but a few more.

Xiaoping Chen: Can you hear me?

Hunter Diamond: My first question was, what are the expected impacts of extended filter lifespan technology on customer retention and recurring revenue considering the reduced need for frequent filter replacements?

Xiaoping Chen: Okay, yes, indeed.

Xiaoping Chen: Well, through the application of AI technology, we hope to eat in hand with a customer.

Xiaoping Chen: Increase acceptance of water purified, and it reduced the cost of water provocation.

Xiaoping Chen: Excuse me?

Xiaoping Chen: The increasing in-store base, we are bringing recurring revenue from consumables.

Xiaoping Chen: Can you hear me?

Xiaoping Chen: According to our observation, the market size and penetration rate of China, household water purifier market, maintain a low level for a long time. Lots of customers switch to other ways to get purified water and do not change the filter many because of the frequently changing filters, causing a lot of problems and extra costs.

Xiaoping Chen: Yes, indeed.

Xiaoping Chen: 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.

Xiaoping Chen: Increase acceptance of water purified and reduce the cost of water The increasing in-store base, we are bringing recurring revenue from consumables.

Xiaoping Chen: We can change it.

Xiaoping Chen: Let's just take 1,200 gallons of water purified for example.

Xiaoping Chen: 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.

Xiaoping Chen: To one of our best-selling products, it comes from two filters.

Xiaoping Chen: We can change it.

Xiaoping Chen: One is the composite filter with two-year lifespan.

Xiaoping Chen: Let's just take 1,200 gallon Kuan Lun AI water purifier example.

Xiaoping Chen: Santa Claus is around 300 remembes and the other is our old filter with average lifespan of 5 to 6 years.

Xiaoping Chen: To one of our best-selling products, it comes from two filters.

Xiaoping Chen: Santa Claus is around 900 remembes.

Xiaoping Chen: One is a composite filter with two-year lifespan.

Xiaoping Chen: For our family, with daily usage of the water of 10 liters of water, assuming they are using the water purified for eight years, the annual cost for the filters is less than 230 remembes.

Xiaoping Chen: Santa Claus is around 300 remembes.

Xiaoping Chen: This is very attractive and has obviously a advantage comparing to water.

Xiaoping Chen: And the other is our own filter with average lifespan of 5 to 6 years.

Xiaoping Chen: You can do one click to make the water through the APP change the filter by DIY with three seconds.

Xiaoping Chen: Santa Claus is around 900 remembes.

Xiaoping Chen: It's pretty simple and easy.

Xiaoping Chen: For a family with daily usage of the water of 10 liters of water, assuming they are using the water purifier for 8 years, the annual cost for the filters is less than 230 remembes.

Xiaoping Chen: We believe it will bring more and more people to purchase and continue to use water purified.

Xiaoping Chen: This is a very attractive and has obviously a advantage comparing to water water.

Xiaoping Chen: Increasing the installation rate and guarantee an acceptable customer consumption.

Xiaoping Chen: You can do one click to make the water through the APP change the filter by DIY with three seconds.

Xiaoping Chen: In short, at Viami, we added AI for better water using AI technology to make better water and durable reliable products promoting the customer's increase and healthy awareness and allow more customers to use AI purified to improve the quality of the living.

Xiaoping Chen: It's pretty simple and easy.

Xiaoping Chen: Further, you improve the penetration rate of the household market.

Xiaoping Chen: We believe it will bring more and more people to purchase and continue to use water purifier.

Xiaoping Chen: In the meanwhile, bring high quality and sustainable scale of growth of the company.

Xiaoping Chen: Increasing the installation rate and guarantee an acceptable customer consumption.

Xiaoping Chen: Thank you.

Xiaoping Chen: In short, at VME, we added AI for better water using AI technology to make better water and durable reliable products promoting the customer's increase in healthy awareness and allow more customers to use AI purifiers to improve the quality of the living.

Unknown Executive: Please go on.

Xiaoping Chen: Further, you improve the penetration rate of the household market.

Unknown Executive: Thank you.

Xiaoping Chen: In the meanwhile, bring high quality and sustainable scale growth of the company.

Hunter Diamond: My next question was, can you provide more details on Viami's omnichannel marketing and service, supporting the expansion into international markets, particularly the US, where competition is very strong?

Xiaoping Chen: Thank you.

Hunter Diamond: Right, thank you.

Unknown Executive: Please go on.

Hunter Diamond: That's very good question.

Unknown Executive: Thank you.

Xiaoping Chen: Regarding the China expansion, we are exceeding omnichinal marketing and service capability combined with our accumulated strength in water certification manufacturing and the product strength will help us to explore the North American market.

Hunter Diamond: And my next question was, can you provide more details on Bione's omnichannel marketing and service supporting the expansion into international markets, particularly the U.S, where competition is very strong.

Xiaoping Chen: At present, we have both domestic marketing and upper sales service systems covering both online and offline channels, including the sales channels of mainstream e-commerce platforms.

Hunter Diamond: Right, thank you.

Xiaoping Chen: As well, let's train sales on new media platforms.

Hunter Diamond: That's very good question.

Xiaoping Chen: We are also actively expanding the overseas market.

Hunter Diamond: Regarding the China expansion, we are exceeding omnichinal marketing and service capability combined with our accumulated strength in water certification manufacturing, and the product strength will help us to explore the North American market.

Xiaoping Chen: Besides the original European and Southeast Asia market, we are kicking steps to expand the North American market.

Hunter Diamond: At present, we have both domestic marketing and upper sales service systems covering both online and offline channels, including the sales channels of mainstream e-commerce platforms.

Xiaoping Chen: We see that the household water purify North America has sweet potential and also it's a quick challenge.

Hunter Diamond: As well, let's train sales on new media platforms.

Xiaoping Chen: We have the industry leading data factory as our strong quality assurance.

Hunter Diamond: We are also actively expanding the overseas market.

Xiaoping Chen: Using AI technology to develop water purifies, our OSE 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.

Hunter Diamond: Besides the original European and Southeast Asia market, we are kicking steps to expand the North American market.

Xiaoping Chen: Meanwhile, we have an enriched reserves of technology to embrace, customize the product development demand around the world, all of which has built up solid supports for the Army to expand in the global market.

Hunter Diamond: We see that the household water purify North America has great potential, and also it's a great challenge.

Unknown Executive: Thank you, Hunter.

Hunter Diamond: We have the industry leading data factory as our strong quality assurance.

Unknown Executive: Great.

Hunter Diamond: Using AI technology to develop water purify, our overseas users can also download the APP for device management, real time monitoring the water quality and usage. DIY replacements of the filters reducing the maintenance cost.

Unknown Executive: Thank you for the detailed answers.

Hunter Diamond: Meanwhile, we have a enriched reserves of technology to increase, customize the product development demand around the world, all of which has built up solid support for Viomi to expand in the global market.

Unknown Executive: That's all I have for questions.

Unknown Executive: Daniel Ponder.

Unknown Executive: Thank you.

Unknown Executive: Great.

Unknown Executive: And acting foods are question and the answer session.

Unknown Executive: Thank you for the detailed answers.

Unknown Executive: I would like to turn the conference back over to management for any closing comments.

Unknown Executive: That's all I have for questions.

Unknown Executive: Okay.

Unknown Executive: Thank you.

Unknown Executive: Thank you once again for joining us today.

Unknown Executive: And acting foods are a question and the answer session.

Unknown Executive: If you have further questions, please feel free to contact us through the contact information on our website or our investor relationship consultant, the PSNK Group.

Unknown Executive: I would like to turn the conference back over to management for any closing comments.

Unknown Executive: Thank you.

Unknown Executive: Okay.

Unknown Executive: Goodbye.

Unknown Executive: Thank you once again for joining us today.

Unknown Executive: Thank you.

Unknown Executive: If you have further questions, please feel free to contact us through the contact information on our website or our investor relationship consultant, the PSNK group.

Bye-bye.

Unknown Executive: Thank you.

Unknown Executive: Goodbye.

Unknown Executive: Thank you.

Bye bye.

Half Year 2024 Viomi Technology Co Ltd Earnings Call

Request a DemoDemo

VIOT

Viomi Technology

Earnings