Q4 2024 Viomi Technology Co Ltd Earnings Call
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At this time all participants are in listen only mode. Today's conference call is being recorded I will now turn the call over to your host Ms. Glatt G. The IR director of the company. Please go ahead Claire.
Speaker Change: Hello, everyone and welcome to Val <unk> Technology Company Limited earnings Conference call for the second half on a full year of plenty of times before other reminder, this conference is being recorded the company's financial and operating results were issued in a press release earlier today and I hope it online you can download.
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Speaker Change: The earnings press release and sign up for the company's email distribution list by visiting the IR section of the company's website at IR <unk> com.
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Speaker Change: Participating in today's call are Mr shopping trends defined our chairman of the board of directors and Chief Executive Officer and Mr. Sami Yeah. The head of all of our capital and investment Department. The Companys management will begin with prepared remarks, and the call will conclude with a Q&A session.
Speaker Change: Before we continue please know that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act up 1995.
Speaker Change: Forward looking statements involve inherent risks and uncertainties.
Speaker Change: As such the company's actual results may be materially different from the views expressed it sure.
Speaker Change: Further information regarding this and other risks and uncertainties is included in the company's annual report on form 20-F, and other filings of felt with U S Securities and Exchange Commission.
Speaker Change: The company does not assume any obligation to update any forward looking statements, except as required by law.
Speaker Change: Please also know that well Miss earnings press release, and this conference call include discussion.
Speaker Change: All that is GAAP financial information as well unaudited non-GAAP financial measures. In addition film is press release contains a reconciliation of auditing and non-GAAP measures to the unaudited most directly comparable GAAP measures I will now turn the call over to our founder and the CEO Mr.
Speaker Change: Shopping Chen Mr. Chen will deliver his remarks in Chinese followed immediately by English translation. Mr. Chang. Please go ahead.
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Speaker Change: Thank you Mr. Chen I will quickly translate our farmer.
Speaker Change: The potential for that.
Speaker Change: Remarks, before discussing our financial performance for the second half on a full year of planning planning for.
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Speaker Change: Hello, everyone and thank you for joining us today on the earnings conference call for the second half on a full year after on it on the floor.
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John Wheeler: <unk> just out which is you want your net new jobs on the nitrogen Dani Jang issued a pension Tom already our own yet.
Speaker Change: August 31, 2024, we successfully completed our business reorganization marching up payment milestones for Val me, although we sharpen our focus on our core home water solutions.
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Speaker Change: This strategic shift has driven our strong performance in 2024 with a full year net revenue, reaching $2 1 billion RMB and income from operations totaling $156 3 million RMB, both existing our previous guidance revenue from <unk>.
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Speaker Change: <unk> grew by <unk>, 9% year over year significantly fewer than our overall business expansion at <unk>.
Steve Brewster: If I understood what undertake all units you have been that <unk> embarked campaign total Indian content from a waste generally what you call control on content.
Speaker Change: Finally, we enhanced operational efficiency, achieving a net income of $62 3 million RMB reversing the losses reported in the past two years.
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Speaker Change: As we move forward.
Speaker Change: Is backed on fast track, so high quality growth and is well positioned to seize new opportunities in the market.
Speaker Change: Are they own yes, John Cleese way or don't really know what else you got under way Bob.
Speaker Change: Thank you Mr. Chairman I'll quickly translate our farmer.
Speaker Change: It was growing public awareness of the importance of healthy drinking water and a supportive policies fostering product innovations the whole water purification market presents huge opportunities.
Speaker Change: Remarks, before discussing our financial performance for the second half on a full year of planning Tony Hawk has.
Speaker Change: Hello, everyone and thank you for joining us today on the earnings conference call for the second half on a full year of turn it on as well.
Speaker Change: <unk> over a decade of deep expertise in the water purification industry, well may remain committed to continuous product innovation and aims to redefine home water purification through AI technology.
Speaker Change: August 31st 2024, we successfully completed our business reorganization marching up pivotal milestone Falwell me, although we sharpen our focus on our core home water solutions.
Speaker Change: With our comprehensive product portfolio ranges from point of view, our theories to whole hall softening in our purification solutions.
Speaker Change: This strategic shift has driven our strong performance in 2024 with a full year net revenue, reaching $2 1 billion RMB and income from operations totaling $156 3 million RMB, both existing our previous guidance revenues from home water solution.
Speaker Change: Advanced feature equipped with and they are distinct and install agency products, such as natural mineral water infusion in some heating and cooling and as making empower users with real time was our quality monetary proactive due to replacement reminders and seamless one click reordering.
Speaker Change: <unk> grew by <unk>, 9% year over year significantly fewer in our overall business expansion at <unk>.
<unk> sort of App. Furthermore, our intelligent self cleaning water circuit technology supported by AI diagnostics greatly extends is filled her lifespan and reduces usage costs enhancing both efficiency and sustainability.
Speaker Change: Ali we enhanced operational efficiency, achieving a net income of $62 3 million RMB reversing.
Speaker Change: The losses reported in the past two years.
Speaker Change: As we move forward well may is back.
Speaker Change: Addressing a wide range of household water use scenario and catering to diverse drinking water needs across the global market well me provides a smarter more reliable and efficient water purification experience for consumers worldwide.
Speaker Change: Fast track, so high quality growth and is well positioned to seize new.
Speaker Change: Opportunities in the market.
Speaker Change: It was growing public awareness of the importance of healthy drinking water and a supportive policies fostering product innovations the whole water purification market presents huge opportunity liberating over a decade of deep expertise in the water purification industry, well may remain committed to continuous product in.
Speaker Change: August 24 business restructured.
Speaker Change: Swift delays in line, our organization comprehensively improve our operational efficiency and sharpen our focus on water and water solutions business, leveraging our core strengths to drive sustainable growth waves starboard initiatives.
Speaker Change: Patients in Ames jewelry to find home water purification through AI technology.
Speaker Change: With our comprehensive product portfolio ranges from wind up use.
Speaker Change: <unk>, which unifies our products channel and brand strategies, and they're a cohesive marketing framework.
Speaker Change: Our theories to whole hall softening in our purification solutions.
Speaker Change: Advanced feature.
Prioritizing consumer experience and align our resources with market demand, we have friends in the Val <unk> brand awareness extended by our market share in the water purification industry.
Speaker Change: <unk> and theyre distinct and install a gen three products such as natural mineral water infusion in some heating and cooling and us making empower users with real time water quality monetary proactive due to replacement of reminders and seamless one click reordering.
Speaker Change: In the domestic market well, mainly as the housing me no order trend the first half hour with plenty of 24 saw the launch of Biomed Quinlan mineral water purifier integrating advanced AI technology to optimize the purification process fiduciary.
Speaker Change: Furthermore, our intelligence self cleaning water circuit technology supported by AI diagnostics greatly extends is filled her lifespan and reduces usage costs enhancing both efficiency and sustainability.
Speaker Change: In motive.
Speaker Change: At powered menorah.
Speaker Change: Our lives.
Speaker Change: Filter technology it ensures the sustained release of beneficial minerals.
Speaker Change: By addressing a wide range of household water use scenario and catering to diverse drinking water needs across the global market well may provide a smarter more reliable and efficient water purification drs for consumers worldwide.
Speaker Change: This produce it.
Speaker Change: Sure if I the water with a may narrow compensation closely resembling natural mineral water, providing our users with fresh mineral rich water at home during the 'twenty 'twenty four double 11 shopping festival, our AI water purification ranked fourth.
Speaker Change: Our August 2024 business restructure.
Speaker Change: Swift delays in line, our organization comprehensively improve our operational efficiency and sharpen our focus on water and water solution business, leveraging our core strengths to drive sustainable growth.
Speaker Change: And the nice on the brand leader Board of adult <unk> and the 10 mile platforms is actively further reinforcing our brand influence.
Speaker Change: In North America, we introduced the <unk> series of endorsing our awarded Purifiers designed for users who value convenience and efficiency.
Speaker Change: Starboard initiatives.
Speaker Change: Which unifies our products channel and brand strategies, and they're a cohesive marketing framework.
Speaker Change: Self.
Speaker Change: Installation feature has been well received with over 80% of users reporting a small installations.
Speaker Change: Prioritizing consumer urine and align our resources with market demand, we have strengthened the belmond brand awareness expanded by our market share in the water purification industry.
Speaker Change: <unk> average only 20 minutes and the vortex Tankless design on the DIY theater replacement I'm quite leased at place at a time for users.
In the domestic market well may lead to housing we know order trends the first half hour with plenty of 24 saw the launch of Val <unk> cornered me narrow AI water purifier integrating advanced AI technology to optimize the purification process featuring.
Speaker Change: 1% wastewater ratio on a full year long lasting filter lifespan enhanced nutrition efficiency reduce water waste and lower maintenance costs delivering a superior user experience. This product made us strong international debut on the Pecos, daughter crowdfunding platform.
Speaker Change: At powered.
Speaker Change: And our lives due to our technology.
Speaker Change: Knowledge it ensures the sustained release of beneficial minerals. This produces.
Speaker Change: On November five 2024, surpassing is funding go on the very first day with 168 bankers contributing over 1200% of the target.
Speaker Change: Sure if I the water with them may narrow compensation closely resembling natural mineral water, providing our users with fresh mineral rich water at home during the 2020 for double 11 shopping festival, our AI water purification ranked fourth safes and nice on the brand leader board of adult <unk>.
Speaker Change: Following the success.
Speaker Change: The votes have theories officially commenced sales on Amazon in the U S. On December 16, 2024, receiving high recognition and the positive feedback from.
Speaker Change: Strong consumer demand.
Speaker Change: Total and the Genmar platforms is actively further reinforcing our brand influence.
Speaker Change: With two Florida solidify our presence in the global market well, let me participated for the first time in CES plenty quantified in Las Vegas in January our intelligent water solutions garnered widespread recognition by industry expert and attendee ringing.
Speaker Change: In North America, we introduced the <unk> series of <unk>, our own water purifiers designed for users who value convenience and efficiency.
Speaker Change: Self.
Speaker Change: Installations feature has been well received with over 80% of our users reporting of smoke installation progressed average only 20 minutes.
Speaker Change: Forcing <unk> reputation of the smart home water solutions innovator.
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Speaker Change: Patients we made significant strides in building strategic partnerships first we have renewed our agreement with Xiaomi for the next three years reaffirming our commitment to stable a mutual beneficial collaboration.
Speaker Change: This design and the DIY future replacement I'm quite leased it placed on a time for users.
Speaker Change: One two strip wastewater ratio on a full year long lasting due to enhanced nutrition efficiency reduce water width and lower maintenance costs.
Speaker Change: Leveraging our proposed active strengths, we aim to both our business penetration in China. Furthermore, we have strengthened our cooperation with Jindal, reaching a joint marketing agreement for the equivalent series products to promote healthy drinking water.
Speaker Change: During a superior user experience this product made us strong international debut on the Pecos, daughter crowdfunding platform under one birthday funded 24, surpassing is funding go on the very first day with 168 becker's contributing over 1200% of the target.
Speaker Change: In March <unk> 25, with forged a strategic partnership with Malaysia, leading home appliance retailer together, we will focus on expanding sales channels and promoting <unk> water purification products to drive deeper market penetration in Malaysia.
Speaker Change: Following the success.
Speaker Change: The volt series officially commenced sales on Amazon in the U S. On December 16, plenty of time for receiving high recognition and the positive feedback from <unk>.
Speaker Change: <unk> water purifier, Giga factory and fundamental to our manufacturing and technology development capability.
Speaker Change: Strong consumer demand.
Speaker Change: With to start a solid it by our presence in the global market well may participate.
Speaker Change: Featuring a highly integrated industrial chain and highly automated production line with 100% E Hoffman manufacturing and the full truth.
Speaker Change: For the first time in C. Yes, plenty quantified in Las Vegas in January our intelligent home water solutions garnered widespread recognition from industry experts and attendee reinforcing <unk> reputation of the smart home water solutions innovator in.
Speaker Change: Principal quality control systems with Qualcomm.
Speaker Change: Core components, we maximized economics of scale.
Speaker Change: <unk> innovation, we have established two major laboratory systems focused on advanced technology research and product compliance on a reliability. This laboratory of May just stringent test tenders of various global markets, allowing us to rapidly adapt to evolving.
Speaker Change: In addition, we made significant strides in building strategic partnerships first we have renewed our agreement with Xiaomi for the next three years reaffirming our commitment to stable a mutual beneficial collaboration by leveraging our proposed active Brent we aim to both our bid.
Speaker Change: Diversified market demand, while maintaining constant and reliable product performance of <unk>.
Business penetration in China. Furthermore, we have strengthened our cooperation with genome, reaching a joint marketing agreement for the equivalent series products to promote healthy drinking water in March 2025, we forged a strategic partnership with Malaysia, leading home appliance retailer.
Speaker Change: Today, well may have failed in the early 1800 global patent applications significantly outpacing the industry average looking forward powered by the dual engines of advanced manufacturing and our continuous innovation.
Speaker Change: Val position to further elevate our competitive edge in the water purification industry.
Speaker Change: Together, we will focus on expanding sales channels and promoting <unk> water purification products to drive deeper market penetration in Malaysia.
Speaker Change: While may is embarking on a new chapter of the way move into 2020 five guided by our vision of global water, our commitment of providing fresh healthy drinking water. So users worldwide to achieve this we will focus on four key strategic initiatives.
Speaker Change: Well Mays water purifier, Giga factory and fundamental so our manufacturing and tech.
Speaker Change: Technology development capability.
Speaker Change: During a highly integrated industrial chain and highly automated production line.
Speaker Change: With 100% E Hoffman manufacturing and a fortress.
Speaker Change: First we will strengthen our domestic market prisons zero trading policy incentives and advancements in AI technology, a salaried product innovation meeting consumers' growing demand.
Speaker Change: Principal quality control system was.
Speaker Change: Core components, we maximize economics of scale.
Speaker Change: Strengthening innovation, we have established two major laboratory systems focused on advanced technology research and product compliance on our reliability.
Speaker Change: Lifestyle second we will drive international market expansion further penetrating key markets, such as North America, and the South East Asia.
Speaker Change: This laboratory of May just stringent test tenders of various global markets, allowing us to rapidly adapt to evolving.
Speaker Change: Zero abrasion distinctive product development, and the enhanced brand positioning and to elevate biomass international market visibility.
Speaker Change: They find market demand, while maintaining constant and reliable product performance.
Speaker Change: Third we will continue to fortify our water purification product portfolio, maintaining our unwavering commitment to research and development.
Speaker Change: Today, well may have fell nearly 1800 global patent applications.
Speaker Change: Secondly, outpacing the industry average looking forward powered by the <unk> and James of advanced manufacturing and our continuous innovation, we are well positioned to further elevate our competitive edge in the water purification industry.
Speaker Change: <unk>, leading industry innovation will strive to provide modular healthier water purification solutions for consumers worldwide.
Speaker Change: Fourth we will continue to deepen our laboratory.
Speaker Change: Our strategic partners.
Speaker Change: Maximize the advantages of water purification Giga factory.
Speaker Change: While may is embarking on a new chapter of the way move into 2020 five guided by our vision of global water.
Speaker Change: This will enable us to achieve synergy and growth and profitability ultimately, creating long term value for both our customers and shareholders. Thank you.
Speaker Change: Our commitment to providing fresh healthy drinking water so users worldwide.
Speaker Change: Chip. This we will focus on four key strategic initiatives.
Speaker Change: That concludes that refine those remarks, I will now turn the call over to our head of capital and investment Department, Mr. Sam Yeah, and discuss our financial performance. Thank you.
Speaker Change: First we will strengthen our domestic market prisons zero trading policy incentives and advancements in AI technology salaried product innovation meeting consumers' growing demand for enhance lifestyle.
Speaker Change: Thank you Mr Cheng and clear thank.
Speaker Change: Thank you to everyone for joining us today.
Speaker Change: We will drive international market expansion further penetrating key markets, such as North America, and the South East Asia duration distinctive product development and the enhanced Brian provisioning, we aim to elevate biomass international market visibility.
Speaker Change: Delving into the details I would like to address the impact of business growth organization.
Speaker Change: Our financial results.
Speaker Change: In August 24, we completed a strategic reorganization.
Speaker Change: It involves diversity.
Speaker Change: Third we will continue to fortify our water purification product portfolio, maintaining our unwavering commitment to research and development.
Speaker Change: At home portfolio products.
Speaker Change: Brooding range Hood gas.
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Speaker Change: And water heaters, which we refer to as the diversity.
Speaker Change: But leading industry innovation, which drive to provide modular healthier water purification solutions for consumers worldwide.
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Speaker Change: As a result.
Speaker Change: The divested business has been de consolidated from our.
Speaker Change: We will continue to deepen our lapse rate.
Speaker Change: Financials.
Speaker Change: And it's our historic financial results are now reported as discontinued operations in our consolidated financial statements.
Speaker Change: With strategic partners Max.
Speaker Change: Maximize the advantages of water purification Giga factory.
Speaker Change: This will enable us to achieve synergy in growth and profitability ultimately, creating long term value for both our customers and shareholders. Thank you.
Speaker Change: Unless otherwise stated.
Speaker Change: All financial and a non-GAAP figures discussed today.
Speaker Change: And it continues.
Speaker Change: That concludes that refiners remarks, I will now turn the call over to our head of capital and investment Department, Mr. Sami Yang and discuss our financial performer.
Speaker Change: Continuing business basis.
Speaker Change: With that overview established.
Speaker Change: Let's review.
Speaker Change: Our unaudited financial results for the second half of 104.
Speaker Change: Thank you Mr Cheng and clear thank.
Speaker Change: We achieved net revenues of four 1 billion to $182 4 million renminbi.
Speaker Change: Thank you to everyone for joining us today.
Speaker Change: Delving into the details I would like to address the impact of business growth organization.
Speaker Change: The increase of 42.
Speaker Change: <unk>, 8%.
Speaker Change: Our financial results.
Speaker Change: 897.9, mainly remedy.
Speaker Change: In August 24, we completed a strategic reorganization.
Speaker Change: Second period I'll hook into next week.
Speaker Change: It involves diversity.
Speaker Change: This growth was.
Speaker Change: It was primarily driven by the expansion of all our home water system business.
Speaker Change: At home portfolio products extra.
Speaker Change: Excluding range Hood.
Speaker Change: Gastar.
Speaker Change: To better reflect our strategic focus we have.
Speaker Change: And water heaters.
Speaker Change: We refer to as diverse state business as a REIT.
Speaker Change: Have re classed our revenue streams through into three categories.
Speaker Change: <unk>.
Speaker Change: The divested business has consolidated our.
Speaker Change: Effective.
Speaker Change: In the second half often than before.
Speaker Change: Financials.
Speaker Change: Home water system.
Speaker Change: And its historic financial result, now report as discontinued operations in our consolidated financial statements.
Speaker Change: Included the revenue from our smart water purification products.
Speaker Change: Water heaters.
Speaker Change: Catalyst.
Speaker Change: Water quality meters and other related business.
Speaker Change: Unless otherwise stated.
Speaker Change: Consumables.
Speaker Change: All financial and the non-GAAP figures discussed today.
Speaker Change: <unk>.
Speaker Change: Revenues from various water heaters design Smartwater pure price.
Speaker Change: Daniel.
Speaker Change: A continuing business basis.
Speaker Change: Teaching appliances that are this <unk>.
Speaker Change: With that overview established.
Speaker Change: <unk>.
Speaker Change: Let's review.
Speaker Change: Revenues from <unk>.
Speaker Change: Our unaudited financial results for the second half of 104.
Speaker Change: Food guest off and other small appliances as warehouse installation services for.
Speaker Change: We achieved net revenues of four 1 billion to 182, one for mailing renminbi.
Speaker Change: Beyond these products.
Speaker Change: No.
Speaker Change: Let's look at the performance.
Speaker Change: The increase of 40.
Speaker Change: Our cost of the category three categories.
Speaker Change: Two 8%.
Speaker Change: Revenues from home water systems.
Speaker Change: 897.9, meaning remedy for a second peer at all go into next week.
Speaker Change: 925.7 million renminbi.
Speaker Change: Lease of 58, 2% from $585 2 million renminbi for the same period of time.
Speaker Change: This growth was.
Speaker Change: It was primarily driven by the expansion of all our home water system business.
Speaker Change: Great.
Speaker Change: Primarily due to the increased demand for home water system products.
Speaker Change: The better.
Our strategic focus.
Speaker Change: Revenues from consumables were $136 7 million a decrease of.
Speaker Change: Have re classed our revenue streams through into three categories effective.
Speaker Change: In the second half of 'twenty before.
Speaker Change: 24, 6% from one billing 181 appointment to meeting.
Speaker Change: Home water system.
Speaker Change: Included the revenue from our smart water purification products.
Speaker Change: Renminbi for the same period of time 23.
Speaker Change: Water heaters.
Catalysts.
Speaker Change: Water quality meters and other related business.
Speaker Change: Primarily due to the decreased sales off of water Purifier falls so to xiaomi.
Speaker Change: Consumables.
Speaker Change: <unk>.
Speaker Change: Partially offset by increase in demand for Nuomi, Brian theaters.
Speaker Change: Revenues from various water <unk> design.
Speaker Change: Smartwater pure price.
Speaker Change: Revenue from <unk> appliances and the other.
Speaker Change: Teaching appliances that are this <unk>.
Speaker Change: <unk>.
Speaker Change: Were 220 million renminbi or an increase of 67, 2%.
Speaker Change: Revenues.
Speaker Change: Range food Gastar and other small appliances as warehouse installation services for.
Speaker Change: 131, 5 million renminbi for the same period of 2023, primarily due to increased self teaching appliances are sold through xiaomi.
Speaker Change: Beyond these products.
Speaker Change: Now.
Speaker Change: Let's look at the performance.
Speaker Change: Our cost of the category three categories.
Speaker Change: Gross profit were one 289 5 million renminbi compared to $294 5 million renminbi for the same period.
Speaker Change: Revenues from home water systems.
Speaker Change: 925.7 million renminbi.
Speaker Change: <unk> saw 58, 2% from $585 2 million renminbi for the same period of 200 great.
Speaker Change: Right.
Speaker Change: Gross margin was.
Speaker Change: Primarily due to the increased demand for home water season products.
Speaker Change: 22, 6%.
Speaker Change: <unk> percent compared to 32, 8% for the same period over 203. The decrease was primarily due to a higher revenue contribution from low gross margin products.
Speaker Change: Revenues from consumables were $136 7 million a decrease of <unk>.
Speaker Change: 24, 6% from one building 181.
Speaker Change: Leading to a shift in product mix.
Speaker Change: During the transition period.
Speaker Change: Sure milling.
Speaker Change: Total operating expenses were 221 5 million renminbi, a increase of six 1% from 208 eight mainly in renminbi for the same period of next three due.
Speaker Change: <unk> for the same period of 203.
Speaker Change: Primarily due to the decreased sales off of water purifier files, so to xiaomi.
Speaker Change: Partially offset by increase in demand for the army Brian theaters.
Speaker Change: Due to a higher personnel expenses.
Revenues from kitchen appliances in the other.
Speaker Change: During strategic transition period, as well as increase the inputs and the mark in.
Speaker Change: 220 million Renminbi, a increase of 67, 2%.
Speaker Change: In greater theaters.
Speaker Change: 101, 5 million revenue for the same period of 2023, primarily due to an increased self teaching appliances are sold through xiaomi.
Speaker Change: R&D expenses were 60.
Speaker Change: Seven 7 million Renminbi, a decrease of nine 9% from 75 1 million renminbi for the same period of countries.
Speaker Change: Goss profit.
Speaker Change: 289, 5 million renminbi compared to $294 5 million renminbi for the same period.
Speaker Change: Mainly due to a lower depreciation and amortization expenses and personnel expenses, partially offset by decreased share based compensation expenses.
Speaker Change: Sweet.
Speaker Change: Cause marketing.
Speaker Change: 22, 6% compared to 32, 8% for the same period over 100 and this week the <unk>.
Speaker Change: Selling and marketing expenses were 140 <unk>.
Speaker Change: <unk> thousand 14 6 million.
Speaker Change: Decrease was primarily due to a higher revenue contribution from low gross margin products.
Speaker Change: RMB.
Speaker Change: The increase of nine 6% from $104 6 million renminbi for the same period of 283.
Speaker Change: Leading to a shift in product mix.
Speaker Change: We are in the transition period.
Speaker Change: Mainly due to a higher online book promotion fees.
Speaker Change: Total operating expenses were 221 5 million renminbi.
Speaker Change: General and administrative expenses were 39 really mailing renminbi or an increase of 40.
Speaker Change: Lease up six 1% from 200 818, mainly in renminbi.
Speaker Change: 34, 8% from $29 1 million renminbi impute over 'twenty two 'twenty three.
Speaker Change: <unk> three.
Speaker Change: Due to a higher personnel expenses.
Speaker Change: During strategic transition period.
Speaker Change: Normally due to higher management personnel expenses.
Speaker Change: As inquiries that equals added a mark in.
Speaker Change: Partially offset by a decrease in estimated allowance for accounts on our notes receivables.
Speaker Change: In greater theaters.
Speaker Change: R&D expenses were 60.
Speaker Change: Net income attributable to all.
Speaker Change: Seven 7 million renminbi, a decrease of nine 9%.
Speaker Change: Ordinary shareholders of the company was 50.
Speaker Change: <unk> 57, 4 million renminbi and under non-GAAP measure.
Speaker Change: 75.
Speaker Change: One meeting renminbi for the same period of <unk>, mainly.
Speaker Change: Income reached 60.
Speaker Change: Mainly due to a lower depreciation and amortization expenses and personnel expenses, partially offset by increased share based compensation expenses.
Speaker Change: 63 3 million renminbi.
Speaker Change: Marks a significant turnaround.
Speaker Change: For the same period.
Speaker Change: 23.
Speaker Change: When we report a net loss of 29.
Speaker Change: Selling and marketing expenses were 140 <unk>.
Speaker Change: 7 million renminbi, and 38.9, meaning renminbi, respectively.
Speaker Change: 14, one 6 million.
Brian: Brian maybe.
Brian: An increase of nine 6% from $104 6 million renminbi for the same period.
Speaker Change: This improvement was primarily driven by strategic reorganization.
Speaker Change: That involved.
Brian: Three.
Speaker Change: Divesting certain loss, making business and a focus.
Brian: Mainly due to a higher online promotion fees.
Speaker Change: Or more out of vantage.
Brian: General and administrative expenses were 39 remaining renminbi or an increase of 40.
Speaker Change: Sectors to enhance profitability.
Speaker Change: Additionally, our balance sheet remains healthy.
Brian: 34, 8%.
Speaker Change: As of December 31.
Brian: $29, one meaning renminbi for the same period of between 23, primarily due to higher management personnel expenses.
Speaker Change: Four.
Speaker Change: The company had a cash on cash equivalent of one billing.
Speaker Change: Six 2 million remedy restricted cash $141 3 million renminbi.
Brian: Partially offset by a decrease in estimated allowance for accounts and notes receivables.
Speaker Change: Short term policy are up 100.
Brian: Net income attributable to.
Speaker Change: <unk> mailing renminbi.
Brian: Ordinary shareholders of the company was 50.
Speaker Change: And short term investment of 72 5 million renminbi.
Brian: <unk> 57, 4 million renminbi and the non-GAAP net income reached 60.
Speaker Change: Next.
Speaker Change: Ms.
Speaker Change: You've talked to the key financials results for the full year of 204.
Brian: 63 3 million renminbi.
Speaker Change: Net revenues were two building 119 million Renminbi inquiry yourself.
Brian: Marks a significant turn wrong.
Brian: For the same period.
Brian: <unk> III.
Brian: When we report a net loss of 29.
Speaker Change: 29, 3% from one billing 600 study.
Brian: 7 million renminbi, and 38.9, meaning renminbi, respectively.
$8 7 million renminbi for <unk> III.
Brian: This improvement was primarily driven by strategic reorganization.
Speaker Change: Revenues from the water.
Speaker Change: Water systems, where one billing.
Brian: That involved.
Speaker Change: 498.
Brian: Divesting certain loss, making business and a focus.
Speaker Change: Meeting renminbi or an increase of three nine.
Brian: Or more out of vantage.
Speaker Change: 39%.
Brian: Sectors to enhance profitability.
Speaker Change: One billing $77 9 million Renminbi was $20 three revenues from consumables were $277 7 million renminbi a decrease of.
Brian: Additionally, our balance sheet remains healthy.
Brian: As of December 31st.
Brian: Four.
Brian: The company had a cash on cash equivalent of one billing.
Speaker Change: $14.
Speaker Change: 5% from $324 7 million renminbi, while <unk> suite.
Brian: Yes.
Brian: $6 2 million remedy restricted cash of $141 3 million renminbi.
Speaker Change: Revenues from our <unk> appliances, or others were 342 9 million renminbi, the increase alpha 452% from $236, one mailing renminbi or 'twenty one this week.
Brian: Short term pause they are up 100.
Brian: <unk> mailing renminbi.
Brian: And short term investment.
Brian: 72 5 million renminbi.
Brian: Next.
Brian: Net grief if costs are the key financials results for the full year of 204.
Speaker Change: Gross profit was $548 7 million renminbi compared to 520.
Brian: Net revenues were 2 billion 119 mainline renminbi equally yourself.
Speaker Change: Meaning renminbi for 203.
Speaker Change: Gross margin was 25, 9% compared to 31, 9% plus 10 23.
Brian: 29, plus 3% from one Kelly 638.
Speaker Change: Total operating expenses were $424 9 million renminbi, the increase of 1% from one form 420 <unk>.
Brian: $8 7 million Renminbi 183.
Brian: Revenues from the water.
Brian: Water systems, where one billing.
Brian: 498, 4 million renminbi or an increase of three nine.
Speaker Change: Marrying renminbi 100, new suite.
Speaker Change: In greater details.
Brian: 39%.
Speaker Change: R&D expenses were $142 9 million renminbi, a decrease of 4% from $148 9 million renminbi work under a new three.
Brian: One billing $77 9 million Renminbi was $20 three revenues from consumables were 277 7 million renminbi, particularly itself.
Speaker Change: Selling and marketing expenses were 211 2 million renminbi, a decrease of one 6% from $214 6 million renminbi for 'twenty three.
Brian: 14 point.
5% from $324 seven meeting renminbi, while <unk> suite.
Brian: Revenues from <unk> appliances, others were 342 9 million renminbi increase alpha 452%.
Speaker Change: General and administrative expenses were $17 8 million, where maybe an increase of 23, 5%.
Brian: $236, one mailing renminbi or 'twenty three.
Speaker Change: 57, 3 million Renminbi 100, new three.
Speaker Change: Net income attributable to ordinary shareholders of the company was 33 4 million renminbi.
Brian: Gross profit was $548 7 million renminbi compared to 520.
Speaker Change: On a non-GAAP net income attributable to ordinary shareholders of the company was 17 nine nine meaning remedy.
Brian: Meaning renminbi.
Brian: <unk> three.
Brian: Gross margin was 25, 9% compared to 31, 9% plus 10 23.
Speaker Change: Thank you.
Mr. Shan: Okay. This concludes our prepared remarks, we will now open the call for Q&A, Mr. Shan, Our fonder and Mr. Yang will join this session and answer questions. Operator. Please go ahead.
Brian: Total operating expenses were.
Brian: $424 9 million renminbi, a increase of 1% from one form 420 <unk>.
Brian: Renminbi 100, new suite.
Speaker Change: Thank you to ask a question you will need to press star one.
Brian: Greater details.
Speaker Change: Telephone and wait for your name to be announced to withdraw your question. Please press star one and one again.
Brian: R&D expenses were $142 9 million renminbi, a decrease of 4% from $148 9 million Renminbi, you bought under new three.
Speaker Change: For the benefit of all participants on today's call. If you wish to ask your question to management in Chinese. Please immediately repeat your question in English.
Brian: Selling and marketing expenses were 211 2 million renminbi, a decrease of one 6% from.
Keith: Please standby, while we compile the Q&A Keith.
Brian: $214 6 million renminbi for 'twenty three.
Speaker Change: Oh first line. Our first question comes from the line of Ting Li from CIC. Please go ahead with your question.
Brian: General and administrative expenses were $17 8 million, where maybe an increase of 23, 5%.
Keith: Okay.
Speaker Change: Hey, Thanks for the management and congratulate congratulations for the good performance and leading <unk> from Cantor.
Brian: 57, 3 million Renminbi bought 200, new suite.
Brian: Net income attributable to ordinary shareholders of the company was 33 4 million renminbi.
Speaker Change: And I have two questions about the readout and I'll ask them one by one.
Speaker Change: So the first question is.
Brian: And our non-GAAP net income attributable to ordinary shareholders of the company was 17 nine 9 million.
Speaker Change: After the divestment of the Iot business into the fold.
Speaker Change: I see that's finally focus is more on water promoter solution.
Brian: Thank you.
Brian: Okay. This concludes our prepared remarks, we will now open the call for Q&A, Mr. Shan, Our fonder and Mr. Yang will join this session and answer questions. Operator. Please go ahead.
Speaker Change: So well adjust.
Speaker Change: Adjustments have been made in business operation and organizational management.
Speaker Change: Second half of the school.
Speaker Change: What are the results so far.
Speaker Change: Yes, that's my first question.
Speaker Change: Thank you.
Brian: Ask a question you will need to press star one.
Speaker Change: Yeah. Thank you changing let me get to your question.
Brian: Telephone and wait for your name to be announced to withdraw your question. Please press star one and one again.
Speaker Change: Yeah.
Speaker Change: The strategic reorganization, we undertook in 2008 flora was not a sudden decision.
Brian: For the benefit of all participants on today's call.
Speaker Change: Just to ask your question to management in Chinese. Please immediately repeat your question in English.
Speaker Change: It was.
Speaker Change: Progress that would begin in the.
Speaker Change: Second half off within the next week.
Speaker Change: Please standby, while we compile the Q&A queue.
Speaker Change: During that time.
Speaker Change: Elevated our water business to a strategic business unit.
Speaker Change: Okay.
Speaker Change: This move.
Speaker Change: Sure.
Speaker Change: We have established a comprehensive manufacturing R&D and distribution systems that are operated independently.
Okay.
Speaker Change: Yeah.
Speaker Change: Now first line. Our first question comes from the line of James Lee from CIC. Please go ahead with your question.
Speaker Change: And.
Speaker Change: Leveraging our strength in water purification automatically enhancing our competitiveness in this sector.
Speaker Change: Okay.
Speaker Change: Hey, Thanks for the management and congratulate congratulations for the good performance and latency from Genesis and I have two questions about the results and I'll ask them one by one.
Speaker Change: By the second half of the pending before we complete.
Speaker Change: Strategic reorganization by divesting certain Iot at home business and the related assets.
Speaker Change: So the first question is.
Speaker Change: After the divestment of the Iot business into the fall.
Speaker Change: We decided to retain our water purification business and.
Speaker Change: Finally focus is more on what are some water solution.
Speaker Change: And part of our kitchen appliances flooring to narrow our focus and streamline operations.
Speaker Change: So what adjustments have been made in business operation and organizational management.
Speaker Change: The second half of 2010, the floor and the results so far.
Speaker Change: In addition, we launched the <unk>.
Speaker Change: Interpretive product marketing system all weekend.
Speaker Change: Yes, that's my first question.
Speaker Change: Yes.
Speaker Change: See its IP MFS.
Speaker Change: Yeah. Thank you changing.
Speaker Change: Turn.
Speaker Change: When you get to your question.
Speaker Change: Together our product channel.
Speaker Change: Sure.
Speaker Change: The strategic reorganization, we undertook in 2008 floor.
Speaker Change: And Brian strategist and Huang.
Speaker Change: Dan Hesse marketing framework.
Speaker Change: Not a sudden decision.
Speaker Change: By prioritizing.
Speaker Change: It was.
Speaker Change: Our customer experience and align our resources within the Mark the mine.
Speaker Change: Progress that began in the.
Speaker Change: Second half off of Tenda next week.
Speaker Change: And we.
Speaker Change: During that time.
Speaker Change: We have being able to strengthening our brand awareness.
Speaker Change: Our water business to a strategic business unit.
Speaker Change: And expand the market share.
Speaker Change: This move.
Speaker Change: Sure.
Speaker Change: In the water purifier industry.
Speaker Change: We have established a comprehensive manufacturing R&D.
Speaker Change: This strategic shift.
Speaker Change: Yes.
Speaker Change: And distribution systems that are operated independently.
Speaker Change: Very strong financial performance, our full year net and <unk>.
Speaker Change: And.
Speaker Change: Leveraging our strength in water purification automatically enhancing our competitiveness in this sector.
Speaker Change: Revenue reached it renminbi 2.1 billing.
Speaker Change: We the income from operation totaling Renminbi 100.
Speaker Change: By the second half of the pending before we complete.
Speaker Change: <unk> 5 million.
Speaker Change: Strategic reorganization by divesting certain Iot at home business and related assets.
Speaker Change: Both exceeded our previous guidance.
Speaker Change: Notably.
Speaker Change: Revenue from our home waters citizens grew by $37 five year over year significantly driving our oversea overall business.
Speaker Change: We decided to return our water purification business.
Speaker Change: And part of all of our kitchen appliances flooring to narrow our focus and streamline operations.
Speaker Change: <unk>.
Speaker Change: Furthermore, we improved our operational efficiency.
Speaker Change: In addition, we launched.
Speaker Change: Our overall operating expense ratio declined by about 6% percent.
Speaker Change: <unk> tech with a product marketing season, all weekend.
Speaker Change: See its IP MFS.
Speaker Change: And.
Speaker Change: Please.
Speaker Change: Apart from the temporary increase for the personnel expenses related to the restructuring we have achieved a net income.
Speaker Change: Together our product channel.
Speaker Change: And Brian strategist and Huang.
Speaker Change: Some handset marketing framework.
Speaker Change: 62 milling renminbi.
Speaker Change: By prioritizing.
Speaker Change: <unk> the losses that we experienced for past two years.
Speaker Change: Our customer experience and align our resources within the Mark the mine and we.
Speaker Change: In conclusion the.
Speaker Change: Completion of the recall organization enables us to focus more on the needs are for water purification for the users and enhance our product strength to build it.
Speaker Change: We have being able to strengthening our brand awareness.
Speaker Change: And expand the market share.
Speaker Change: The water purifier industry.
Speaker Change: Best selling natural mineral water.
Speaker Change: This strategic shift.
Speaker Change: Has.
Speaker Change: In the meantime, we accelerated the China expansion.
Speaker Change: Very strong financial performance, our full year net.
Speaker Change: Globalization to advance the vision of global water.
Speaker Change: Revenue reached it renminbi 2.1 billing.
Speaker Change: Thank you.
Speaker Change: We the income from operation totaling Renminbi 100.
Speaker Change: Next question.
Speaker Change: Okay.
Speaker Change: Yes. Thank you.
Speaker Change: $55 million.
Speaker Change: My second question is could you give us the breakdown of the home router solution in place going forward and how much day to day volume and price increase respectively and is there any new product plans for 2025, Yeah. That's my second question. Thank you.
Speaker Change: <unk> exceeded our previous guidance.
Speaker Change: Notably.
Speaker Change: Revenue from our home waters citizens grew by 37 five year over year significantly driving our oversea all business.
Speaker Change: Good question and let me just Eric to answer your question.
Speaker Change: <unk>.
Speaker Change: Furthermore, we improved our operational efficiency.
Eric: To better reflect our strategic focus we made some change so.
Speaker Change: Our overall operating expense ratio declined by about 6% percent.
Eric: How weak category will rise our revenue starting in the second half of 2004.
Speaker Change: And.
Eric: <unk> is our home water systems, which include our smart water purification products.
Speaker Change: Apart from the temporary decrease for the personnel expenses related to the restructuring we have achieved a net income.
Eric: Water heaters.
Eric: Water category.
Eric: And the water quality meters and similar items.
Speaker Change: 62 milling renminbi.
Speaker Change: <unk> the losses that we experienced before past two years.
Eric: This category mix.
Eric: <unk>.
Eric: 71% of our total revenue.
Speaker Change: In conclusion the.
Speaker Change: Completion of the recall organization enables us to focus more on the needs are for water purification for the users and enhance our product strength to be able to that.
Eric: And next we have the consumables.
Eric: This is actually we bundle those cells.
Eric: Our water purification and also we started a separate fee.
Eric: And at this part attributed to 30% of the total revenue.
Speaker Change: Best selling natural mineral water.
Speaker Change: In the meantime, we are accelerated.
Eric: And the last.
Speaker Change: We accelerated the China expansion.
Eric: There is.
Eric: Teaching appliances on the artist. This includes the revenue from a range food gas tariffs and small appliances.
Speaker Change: Globalization to advance the vision of global water.
Speaker Change: Thank you.
Eric: As we're all seeing installation silviu.
Speaker Change: Next question Okay.
Eric: So the army potash.
Speaker Change: Okay.
Speaker Change: Yes. Thank you.
Eric: Brands are about 60% of total revenue.
Speaker Change: My second question is could you give us the breakdown of the home water solution in place going forward and how much day to day volume and price increase respectively and is there any new product plans for 2025, Yes. That's my second question. Thank you.
Eric: One positive note, we kicked off our quindlen series.
Eric: <unk> in the first half of 2004.
Eric: <unk>.
Eric: Mirrored in.
Eric: Two high actually.
Speaker Change: Good question and let me just Eric to answer your question.
Eric: Positioning we have a very strong.
Speaker Change: To better reflect our strategic focus we made some change so.
Eric: Emphasis is on the healthy drink of water that is a mineral water.
Speaker Change: How weak category right our revenue starting in the second half of 2004, firstly as our home water systems, which include our smart water purification products.
Eric: And we have seen a noticeable increase in our PSP.
Eric: Looking ahead to.
Eric: 280 495.
Eric: We are excited by.
Speaker Change: Water heaters.
Eric: By the deepening our goals flattish.
Speaker Change: Water categories.
Speaker Change: And no water quality meters and similar items.
Eric: In the domestic market, we keep refining.
Speaker Change: This category mix.
Speaker Change: Bob.
Eric: Middle to high end product line, and our focus on healthy and continue to enhance equipment theories.
Speaker Change: 71% of our total revenue.
Speaker Change: And next we have consumables.
Eric: During the.
Speaker Change: This is actually we bundle those cells.
Eric: <unk> 11.
Speaker Change: Our water purification and also we started a separate fee and at this part attributed to 30% of the total revenue.
<unk>.
Speaker Change: Our AI water purifier, Rhynchophore, Steve and Eni on the brand.
Eric: Part of.
Speaker Change: After <unk> pingo, <unk> and Tmall platforms, respectively.
Speaker Change: And the last.
Speaker Change: There is.
Speaker Change: Teaching appliances on the artist. This includes the revenue farmer ranch food guests start ups and small appliances.
Eric: Further reinforcing our brand new brands.
Eric: On the international side, we plan to.
Speaker Change: As we're all seeing installation <unk>.
Speaker Change: Potash.
Eric: Enhance our partner, allowing us and focus on customized development Taylor.
Speaker Change: Each brand's about 16% of total revenue.
Speaker Change: All of them are positive note, we kicked off our quindlen series.
Eric: True to the North America is customer.
Eric: And I'll also cover.
Eric: The southeast.
Speaker Change: <unk> in the first half of 2004.
Eric: Markets.
Eric: These include adding new features like.
Speaker Change: <unk>.
Speaker Change: Mirrored to N.
Eric: Ice, making and Houston cooling.
Speaker Change: Two high actually.
Speaker Change: Positioning we have a very strong.
Eric: Artists.
Eric: At the same time, we expand to other key international markets.
Speaker Change: Emphasis is on the healthy drink of water that is the mineral water.
Eric: Also localizing and promoting our fee potash serious to better meet customer needs for the local.
Speaker Change: And we have seen a noticeable increase in our DSP.
Speaker Change: Looking ahead to.
Speaker Change: 284, <unk> hundred 95.
Eric: Thank you.
Speaker Change: We are excited by.
Speaker Change: By the deepening our call strategy.
Eric: Thanks for the management.
Speaker Change: In the domestic market, we keep refining.
Speaker Change: We will now move on to our next question our.
Speaker Change: Our next question comes from the line of Brian <unk> from Zacks small cap research. Please go ahead. Your line is open.
Speaker Change: Mero two high end product line and our focus on healthy and continue to enhance the equivalent theories.
Speaker Change: Sure.
Speaker Change: Good evening. Thank you if I could ask a couple of questions on the expansion strategy.
Speaker Change: During the.
Speaker Change: <unk> 11.
Speaker Change: Our AI water purifier ranked <unk> for Steve and Eni on a brand for us.
Speaker Change: I guess first how comfortable are you with the strategy in the U S.
Speaker Change: Then second.
Speaker Change: After <unk> pingo, <unk> and Tmall platforms, respectively.
Speaker Change: Regarding the expansion in southeast Asia.
Speaker Change: Have you named the partner the home appliance partner in Malaysia.
Speaker Change: Further reinforcing our brand new brands.
Speaker Change: And I guess second one.
Speaker Change: On the international side, we plan to.
Speaker Change: Will there be additional will that be the strategy targeting additional southeast Asian countries.
Speaker Change: Enhance our partner, allowing us and focus on customized development Taylor.
Speaker Change: Going forward. Thank you.
Speaker Change: Trade to the North America is customer.
Speaker Change: Thank you.
Speaker Change: And I'll also cover.
Speaker Change:
Speaker Change: The southeast.
Speaker Change: Actually.
Speaker Change: Markets.
Speaker Change: The.
Speaker Change: Because so our new.
Speaker Change: These include adding new features like.
Speaker Change: Ice, making and Houston cooling.
Speaker Change: Vision is.
Speaker Change: Global water. So the global waters is all of our new strategy.
Speaker Change: Artist at the same time, we expand to other key international markets.
We choose to enter the U S market and also we have into the southeast market.
Speaker Change: We're also localizing and promoting our fee potash serious to better meet customer needs for the local.
Speaker Change: And the first step.
Speaker Change: <unk> actually we successful launched.
Speaker Change: Thank you.
Speaker Change:
Speaker Change: The.
Speaker Change: Thanks, Hey, Thanks from management.
Speaker Change: The product is actually.
Speaker Change: Laptops eight on the Kickstarter.
Speaker Change: We will now move onto the next question.
Speaker Change: Our next question comes from the line of Brian <unk> from Zacks small cap research. Please go ahead. Your line is open.
Speaker Change: That is a great success.
Speaker Change: And we achieved a 10 times our expectation.
Speaker Change: And following that our success, we introduced two product.
Speaker Change: Good evening. Thank you if I could ask a couple of questions on the expansion strategy.
Speaker Change: To Amazon.
Speaker Change: And which has reached a high recognition from the customers and.
Speaker Change: I guess first how comfortable are you with the strategy in the U S.
Speaker Change: It's a continue performing.
Speaker Change: And then second rigor.
Speaker Change: Good.
Speaker Change: Regarding the expansion in southeast Asia.
Speaker Change: <unk>.
Talking about it.
Speaker Change: Have you named the partner the home appliance partner in Malaysia.
Speaker Change: Other areas above.
Speaker Change: About the southeast.
Speaker Change: We have established a strategic partnership with.
Speaker Change: And I guess second will there be additional will that be the strategy targeting additional southeast Asian countries.
Speaker Change: The biggest the biggest.
Speaker Change: Retailer in Malaysia.
Speaker Change: Going forward. Thank you.
Speaker Change: This will bring us an ongoing good performance we believe.
Speaker Change: Yes. Thank you.
Speaker Change: And we.
Speaker Change: Actually.
Speaker Change: With that strategic cooperation and we are going to launch more and more new products two of that new market.
Speaker Change: The.
Speaker Change: Because our new.
Speaker Change: Vision is.
Speaker Change: Global water. So the global waters is all of our new strategy.
Speaker Change: Okay, Great and have you identified any long term gross margin goals.
Speaker Change: We choose to enter the U S market and also we have entered the southeast market.
Speaker Change: For the different revenue categories.
Speaker Change: For example, hot water systems.
Speaker Change: Versus.
Speaker Change: Kitchen appliances, and consumables I'm, assuming in the long run consumables will have the widest margin.
Speaker Change: And the first step.
Speaker Change: Staff actually we successful launched.
Speaker Change:
Speaker Change: As the Giga factory gains efficiency.
Speaker Change: The.
Speaker Change: The product is actually.
Speaker Change: Im not sure if you <unk>.
Speaker Change: Yes.
Speaker Change: Targets are released or identified any of those gross margin goals in the long run.
Speaker Change: Laptops eight on the Kickstarter.
Speaker Change: That is a great success.
And we achieved a 10 times our expectation and.
Speaker Change: Yeah.
Speaker Change: Gross margin is crucial actually.
Speaker Change: And our following that as success, we introduced two product.
Speaker Change: Assuming no to that.
Speaker Change: We have.
Speaker Change: <unk>.
Speaker Change: Amazon.
Speaker Change: 10, the average gross margin.
Speaker Change: And the which has reached a high recognition from the customers.
Speaker Change: For the industry the water purifier.
Speaker Change: It's a.
Speaker Change: Continue performing it's good.
Speaker Change: And we believe this gross margin will be become better this year.
Speaker Change: And.
Talking about it.
Speaker Change: Because of.
Speaker Change: Other areas.
Speaker Change: The pot may metrics actually we're going to launch and.
Speaker Change: But in the southeast.
Speaker Change: We have established a strategic partnership.
Speaker Change: As I explained earlier that we are going to launch more in a more equivalent and Sirius which has a.
Speaker Change: The biggest the biggest.
Speaker Change: Retailer.
Speaker Change: Melissa.
Speaker Change: Gross margin for the.
Speaker Change: Basically we are bringing us ongoing good performance.
Speaker Change: For the customer.
Speaker Change: Also for the market.
Speaker Change: Please.
Speaker Change: Also we have the consumables and you know this market is.
Speaker Change: And.
Speaker Change: With that strategic Corporation.
Speaker Change: We're going to launch more and more new products to adapt a new market.
Speaker Change: The gross margin for these categories.
Speaker Change: It's a decent so.
Speaker Change: We're going to keep.
Speaker Change: Okay great.
Speaker Change: And talk about the others I think we are going to meet the average of the industry.
Speaker Change: Have you identified any long term gross margin goals.
Speaker Change: For the different revenue categories for.
Speaker Change: Thank you.
Speaker Change: For example, hot water systems.
Speaker Change: Great great.
Speaker Change: Versus.
Speaker Change: Great. Thank you.
Speaker Change: Kitchen appliances, and consumables I'm, assuming in the long run consumables will have the widest margin.
Speaker Change: And that concludes the question and answer session I would like to turn the conference back over to management for any additional or closing comments.
Speaker Change: As the Giga factory gains efficiency.
Speaker Change: Im not sure if.
Speaker Change: Target or released or identified any of those gross margin goals in the long run.
Speaker Change: Okay.
Mr. Chan: Okay and Mr. Chan with life of gave a conclusion.
Speaker Change: Yes of.
Gross margin is crucial actually.
Speaker Change: Please go ahead.
Speaker Change: Assuming no to that.
Speaker Change: Yeah.
Speaker Change: We have.
Speaker Change: Sure.
Speaker Change: Up 10, the average gross margin.
Speaker Change: Peter on the cash it annualized single women get to the to.
Speaker Change: For the industry, the water purifier and.
Speaker Change: Please go ask Andy Wittmann.
Speaker Change: We believe this gross margin will be become better this year.
Speaker Change: Which ones, which holds through the year or should say Patricia if I can again say women. Please talk.
Total negotiation these are usual, which issued ashish will AIG.
Speaker Change: Because of.
Speaker Change: The part of May.
Speaker Change: Matrix actually we're going to launch.
Speaker Change: <unk> you should have to go competitively Diego Arago liquidity tool this year for <unk>.
Speaker Change: As I explained earlier that we are going to launch more in a more equivalent and Sirius which has.
Speaker Change: <unk>.
Speaker Change: <unk> Tena incontinence, HMT that yoga mobile designers of women within the adoption by tier.
Speaker Change: Good gross margin Budd.
Speaker Change: For the customer and also for the market.
One is that just a moment to OBL both Asia, it's really that achieved battle pin pad at one juncture. The leap should help you in <unk>.
Speaker Change: Also we have the consumables and you know this market is.
Speaker Change: This sugar commented all Mcqueen Madonna should go gentlemen, the teaser that how's your hometown.
Speaker Change: The gross margin for this category is.
Speaker Change: Sure.
Speaker Change: <unk> agenda excuse retards, you won't call, Dave will go from Illinois, <unk> main ore on AI <unk>.
Speaker Change: It's a decent so.
Speaker Change: We're going to keep.
Speaker Change: And talk about it the auditors I think that we are going to meet the average of the industry.
Speaker Change: College, it'll change a watershed globally, unless you're one day, where the weather drove Andy Andy Millman Chenzhou farther to the uniquely tissue to say tissue the tender.
Speaker Change: Thank you.
Speaker Change: Great great. Thank you.
Speaker Change: <unk>, we don't that I come to that.
Speaker Change: And that concludes the question and answer session I would like to turn the conference back over to management for any additional or closing comments.
Speaker Change: On a currency I'm on.
Speaker Change: Do you want to engage that seems really touching it.
Speaker Change: Rule Calder, obviously, we can't critical so it's actually the China.
Speaker Change: Syngenta, which includes saw hopefully you buy in your niche Omega Shanghai chemical Srinivasan tissue, just especially about Halloween.
Speaker Change: Okay.
Speaker Change: Okay and Mr. Chan with LIFO gave a conclusion.
Speaker Change: Okay, I'll briefly translate our founders remark conclusion.
Mr. Chen: Mr. Chen Please go ahead.
Speaker Change: Sure.
Speaker Change: Thanks to everyone attending our conference call right. After we completed our structuring and are fully focused on the whole water business. We are using AI to upgrading our brand position needs and we will.
Yes.
Speaker Change: Peter on the cash it is allied handle women get to the to.
Speaker Change: Please go ask Andy Wittmann.
Speaker Change: Oh, it's easier to you should say shift back again, but.
Speaker Change: More in brand recognition and promotion to increase our brand recognition globally and about our water Purifier Giga factory.
Speaker Change: Please.
Speaker Change: What are you guys pushing these unusual Fitch issued Ashish AIG.
Speaker Change: Golf changed you should pick up competitively.
Speaker Change: On liquidity tool this year for <unk>.
Speaker Change: We have the most integrated.
Speaker Change: <unk>.
Speaker Change: Industrial lines and automated production lines among the industry and we will continue to maximize the advantages of our audio purifier Giga factory and also we will.
Speaker Change: J J <unk>.
Speaker Change: Mobile is that lenders are women.
Speaker Change: That option.
Speaker Change: One is that just eliminate opioids holdings here, it's really that achieved battle competitor own chunks of the Amici, helping pets Jimmy.
Speaker Change: These sugar commented on <unk> gentlemen, there changed at all now.
Speaker Change: Fast speed our over the extension.
Speaker Change: Sure.
Speaker Change: <unk> seen the agenda excuse me tells you won't call Dave will go from Illinois put down our Portland, Maine on AI <unk> Shang.
Speaker Change: In the.
Speaker Change: Major markets like the U S, United States and South East Asia.
Speaker Change: That's easy.
Speaker Change: In conclusion, our homeowner business.
Speaker Change: Two other digital journey of what I said to Oakwood, unless you're one day.
Speaker Change: Merit is in business and it's a sustainable is to maintain the housing demand of Lincoln in a sustainable way. So we think the business ever lasting for like her tenure and that's.
Speaker Change: Whether the draw down your antebellum day change Youll father to the yearly tissue to say tissue the tender.
Speaker Change: With <unk>, we don't see.
Speaker Change: <unk> centered on our collection.
Speaker Change: Do you watch on <unk>.
Speaker Change: Great.
Speaker Change: That's all.
Speaker Change: Rule Calder, obviously political so hitachi.
Speaker Change: Thank you.
Speaker Change: And thank you once again for joining US today. If you have any further questions. Please feel free to contact us through the contact information on our website or our investor relationship consultant that the S&P group.
Hey, Tyler its individual cheaply saw hopefully you buy in your niche Omega Shanghai chemical Srinivasan tissue, especially me.
Speaker Change: Amit.
Speaker Change: Okay, I'll briefly translate our Saunders remark conclusion.
Speaker Change: Thanks to everyone attending our conference call right. After we completed our factory.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: We focused on the whole water business, we are using AI to upgrading our brand position needs and we will.
Speaker Change: More in brand recognition and promotion to increase our brand recognition globally and about our water Purifier Giga factory.
Speaker Change: We have the most integrated.
Speaker Change: Industrial lines and automated production lines among the industry and we will continue to maximize the advantages of Arbor audio Purifier Giga factory and also we will.
Speaker Change: SaaS fee on our over the expansion.
Speaker Change: In the.
Speaker Change: Major markets like the U S, United States and South East Asia.
Speaker Change: And in conclusion homeowner business.
Speaker Change: Merit is in business and is sustainable is to maintain the healthy demand of Lincoln in a sustainable way. So we think the business ever lasting for Leica and.
Speaker Change: That's all.
Speaker Change: Thank you.
Speaker Change: And thank you once again for joining US today. If you have any further questions. Please feel free to contact us through the contact information on our website or our investor relationship consultant that the S&P group.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect speakers. Please standby.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change:
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.