Full Year 2025 Viomi Technology Co Ltd Earnings Call

March 25, 2026

Speaker #2: Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Co. Limited's earnings conference call for the second half and full year of 2025.

Speaker #2: 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 , Miss Claire Ji .

Speaker #2: The IR Director of the company. Please go ahead, Claire.

Speaker #3: Hello, everyone, and welcome to Viomi Technology Co., Company Limited earnings conference call for the second half and full year of 2025.

Claire Ji: Hello everyone, and welcome to Viomi Technology Company Limited's earnings conference call for the H2 and full year of 2025. As a reminder, this conference is being recorded. The company's financial and operating results posted online. You can download 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.viomi.com. Participating in today's call are Mr. Xiaoping Chen, the founder, chairman of the board of directors, and the chief executive officer, and Sam Yang, the head of our capital and investment department. The company's management will begin with prepared remarks, and the call will conclude with the Q&A session. Before we continue, please note that the company's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995.

Speaker #3: As a reminder, this conference is being recorded. The company's financial and operating results are posted online. You can download 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 Viomi Technology Co.

Speaker #3: Participating . Today's call are Mr. Xiaoping Chen , the founder chairman of the Board of Directors and Chief Executive Officer . And Sam Yang , the head of our capital and the investment department .

Speaker #3: The company's management will begin with prepared remarks , and the call will conclude with a Q&A session . Before we continue , please note that the company's discussion will contain forward looking statements made under the safe harbor provisions of the US Private Security Litigation Reform Act of 1995 .

Speaker #3: Forward looking statements involve inherent risks and uncertainties . As such , the company's actual results may be materially different from the views expressed today Further information regarding this and other risks and uncertainties is included in the company's annual Report on form 20 F and other filings are with US Securities and Exchange Commission .

Claire Ji: Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's annual report on Form 20-F. Other filings 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. Please also note that Viomi's earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as audited non-GAAP financial measures. In addition, Viomi's press release contains a reconciliation of an audited non-GAAP measure to an audited most directly comparable GAAP measure. I'll now turn the call over to our founder, Mr. Xiaoping Chen. Mr. Chen will deliver his remarks in Chinese, followed immediately by English translation. Mr. Chen, please go ahead.

Speaker #3: The company does not assume any obligation to update any forward-looking statements except as required by law. Please also note that while the earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as audited non-GAAP financial measures.

Speaker #3: In addition, Bellamy's press release contains a reconciliation of an audited non-GAAP measure to an audited, most directly comparable GAAP measure. I'll now turn the call over to our founder, Mr. Xiaoping Chen.

Speaker #3: Mr. Chen will deliver his remarks in Chinese, followed immediately by the English translation. Mr. Chen, please go ahead.

Xiaoping Chen: Uh,

Speaker #4: With the Global water In the Master . One . Two . Xiao . Zhao And W Three . Water Also Chen 22 . For the When .

Xiaoping Chen: 从全年来看，核心业务基本盘依然稳固，全年实现总销售收入24.3亿人民币，同比增长14.6%，规模净利润约1.32亿人民币，净利润率5.8%。在过去的一年当中，我们推行Global Water的战略持续落地，组建了跨国的专业团队，覆盖北美、东南亚和欧洲等地，以全球化的视野，赋能技术研发、市场布局和业务的拓展，不断地围绕多元化的用户饮水需求进行技术突破，用AI的技术为用户带来更好的产品体验，努力成为全球领先的净水科技公司。在北美市场，我们亚马逊的渠道表现亮眼，在去年下半年环比实现三位数的同比增长，在黑五大促跻身净水类目的销售第十九位，在同下的五Gallo新锐市场上排到第四名。高端的旗舰矿物质净水器Master M1已进一步地公布了产品矩阵。在东南亚市场，我们与马来西亚线下的主要渠道达成战略合作，并持续深化。针对当地推出体积小巧、搭载矿化和制冷功能的Inno矿泉台面净水器。在品牌建设方面，我们邀请来自于不同国家的知名演员和歌手担任品牌代言人，出席线下的发布会，走进净水超级工厂，构筑科技健康的品牌形象。在今年的四月份，我们将携手全新的高端品牌形象亮相美国WQA的水展，这是全球水处理行业最具影响力的盛会之一，我们将向北美乃至全球的合作伙伴展示云米对于Better Water的全新产品定义。在制造和研发端，我们持续地夯实核心竞争力，云米的净水超级工厂全球化布局迈出了关键一步，海外的精品工厂已部署完毕，展现集成、急热、制冷、制冰等模块产品，为北美、欧洲、东南亚等海外市场的差异化提供敏捷的供应链支撑。截止2025年底，全球的专利突破1,950项，覆盖14个国家和地区，在AI的智能算法、矿物质的精准调节和制冷的细分界等领域，构筑起系统性的技术壁垒，为全球的业务拓展奠定坚实的基础。在股东回报方面，我们于2025年7月宣布派发每ADS $0.088美元的特别股息，今年同年10月，公司获批第一轮的2,000万美元的股份回购，截止2025年12月31号，已累计回购103万股，总金额约250万美元。在近期发布的业绩预告当中，我们进一步宣布将向每ADS派发$0.066美元的特别股息，计总金额约3,100万元人民币的股东回报。感谢广大股东长期的信任和支持，我们始终珍视和股东的共同成长，致力于为股东提供长期价值。在2026年，我们将进一步坚定地执行Global Water的战略目标，在接下来的四个方面取得突破。第一个就是聚焦海外，深耕战略市场，拓展更多的国家和地区，依托净水超级工厂的敏捷优势，持续推出本地化的新品，提高品牌的影响力，向更多的市场延伸。第二，坚持走差异化的路线，国内持续强化昆仑系列的健康新智，以技术差异化和产品创新，引领品质升级，提升云米在净水上的行业地位。第三，净水技术领航，加大AI和技术的深度融合，让技术创新成为公司穿越周期和持续增长的核心引擎。第四，深化合作，持续深化和全球战略合作伙伴的进一步合作，释放净水超级工厂的规模效应。云米将秉承长期主义，为全球用户创造价值，带来持续的股东回报。谢谢。

Speaker #4: Early . P Make . Areas in the Indian The global water Para There are changes Due in Recent AI and Zhang . Wei

Speaker #3: Thank you, Mr. Chen, and I will quickly translate. Our founder's remarks before discussing our financial performance: Hello, everyone. Thank you for joining us today on our earnings conference call for the second half and full year of 2025.

Claire Ji: Thank you, Mr.

Claire Ji: Chen. I'll quickly translate our founder's remarks before discussing our financial performance. Hello everyone, thank you for joining us today on our earnings conference call for H2 and full year of 2025. In H2 of 2025, amid the phase down of the national subsidy scheme for home appliance trade-ins and the company's strategic investments in overseas market expansion, new product development and brand building, we delivered a total revenue of CNY 951 million and a net income attributable to ordinary shareholders of the company of CNY 21.2 million. For the full year, our core business remained solid, achieving total revenue of CNY 2.4 billion, representing the year-over-year increase of 14.6%. Net income attributable to ordinary shareholders of the company stood at CNY 141.6 million with a net profit margin of 5.8%. Over the past year, our Global Water strategy has continued to achieve milestones highlighted by the establishment of a multinational professional team covering North America, Southeast Asia and Europe. Empowered by a global perspective, global-class R&D and market expansion, we have constantly achieved technological breakthroughs addressing users' diverse drinking water demands. By leveraging AI technology to enhance user experience, we are establishing Viomi as a world-leading water technology company. In the North American market, our Amazon channel delivered an outstanding performance in H2, achieving triple-digit growth in sales on a sequential basis. During the Black Friday promo promotional season, our products ranked 19th in the water purifier category and 4th in under-sink RO tankless segment. Our premium flagship product, the Master M1 mineral water purifier, further enriched our product portfolio.

Speaker #3: In the second half of 2025 . Amid the phase down of the national subsidy scheme for home Appliance trading and the company's strategic investments in overseas markets , expansion , new product development and brand building , we delivered total revenue of 951 million RMB , and net income attributable to ordinary shareholders of the company of 21.2 million RMB for the full year .

Speaker #3: Our core business remains solid , achieving total revenue of 2.4 billion RMB , representing the year over year increase in 14.6% . Net income attributable to ordinary shareholders of the company stood at 141.6 million RMB , with a net profit margin of 5.8% over the past year .

Speaker #3: Our global water strategy has continued to achieve milestones, highlighted by the establishment of a multinational professional team covering North America, Southeast Asia, and Europe.

Speaker #3: Empowered by a global perspective. Global across R&D and market expansion. We have constantly achieved technological breakthroughs, addressing users' diverse drinking water demand by leveraging AI technology to enhance user experience via establishing Viomi as a world-leading water technology company in the North American market.

Speaker #3: Our Amazon channel delivered an outstanding performance in the second half, achieving triple-digit growth in sales on a sequential basis during the Black Friday promotional season.

Speaker #3: Our products ranked 19th in the water purifier category and fourth in under-sink row techniques. Our premium flagship product, the Master One Mineral Water Purifier, further enriched our product portfolio in the Southeast Asia market.

Claire Ji: In the Southeast Asia market, we continue to deepen our strategic cooperation with our offline channels in Malaysia through the launch of the compact Inno mineral water dispenser, tailored for the local market and featuring both mineralization and cooling functions. On the brand building front, we engaged famous actors and singers from different countries to serve as brand ambassadors. They participate in offline launch events and visit our facilities, strengthening our brand's technology and health image. In April 2026, we will unveil our new brand series at the WQA Convention in Miami, showcasing our latest AI technologies and innovations as one of the most influential professional events in the global water treatment industry, and presenting our redefined vision of Better Water to partners in North America and around the world. In manufacturing and R&D, we kept boosting our competitive edge.

Speaker #3: We continue to deepen our strategic cooperation with offline channels in Malaysia through the launch of the company's email Mineral Water Dispenser, tailored for the local market and featuring both mineralization and cooling functions on the brand.

Speaker #3: Building front . We are engaged , famous actors and singers from different countries to serve as brand ambassadors . They participated in offline launch events and visit our facilities , strengthening our brand , technology and health image In April 2026 , we will unveil our new brand series at the Wqa convention in Miami , showcasing our latest AI technologies and innovations at one of the most influential professional events in the global Water treatment industry and presenting our redefined vision of better and better water to partners in North America and around the world The manufacturing and R&D We kept boosting our competitive edge We achieved a key milestone in the global expansion of well , water purifier Gigafactory , commencing full operations of our overseas premium production line .

Claire Ji: We achieved a key milestone in the global expansion of Viomi's water purifier gigafactory, commencing full operations of our overseas premium production line. This production line integrates module functions such as instant heating and cooling and ice making, providing agile supply chain support to meet differentiated needs and the markets in North America, Europe, and Southeast Asia. As of the end of 2025, our global patent application has surpassed 1,950, spanning 14 countries and regions. We have built highly competitive technological capabilities in areas such as AI-driven water quality algorithms, precision mineral control, and intelligent self-cleaning, laying out a solid foundation for the continued expansion of our global business. In terms of shareholder returns, we declared a special dividend of $0.088 per ADS in July 2025.

Speaker #3: This production line integrates module functions such as instant heating and cooling , and ice , making , providing agile supply chain support to meet differentiated needs and markets in North America , Europe and Southeast Asia .

Speaker #3: As of the end of 2025 , our global patent application has surpassed 1950 . Spanning 14 countries and regions . We have built highly competitive technological capabilities in areas such as AI driven water quality algorithms , precision mineral control and intelligent self-cleaning .

Speaker #3: Laying out a solid foundation for the continued expansion of our global business, in terms of shareholder returns, we declared a special dividend of $0.088 per ADS in July 2025.

Speaker #3: In August of the same year Were authorized a new share repurchase program of 20 million USD . By the end of 2025 . We had repurchased a total of 1.03 million ads amounting to approximately 2.5 million USD in our recently purchased and published earnings release .

Claire Ji: In August of the same year, the board authorized a new share repurchase program of $20 million. By the end of 2025, we had repurchased a total of 1.03 million ADSs, amounting to approximately $2.5 million. In our recently published earnings release, we declared another special dividend of $0.066 per share, with an aggregated amount of CNY 31 million for shareholder return. As a gesture of gratitude for the long-standing trust and support of our shareholders, we deeply value the journey we take with our shareholders and remain committed to creating long-term value for them. In 2026, we will pursue our global water vision with greater determination, targeting breakthroughs in four key areas.

Speaker #3: We declared another special dividend of 0.066 USD per share , with an aggregated amount of 31 million RMB for shareholder returns . As a gesture of gratitude for the long , long standing trust and support of our shareholders , we deeply value the journey we take with our shareholders and remain committed to creating long term value for them in 2026 , we will pursue our global water vision with greater determination , targeting breakthroughs in four key areas .

Speaker #3: First, for overseas markets. We will deepen our presence in strategic markets such as North America and Southeast Asia, while actively expanding into more countries and regions, leveraging the agility of our water purifier Gigafactory.

Claire Ji: First, for overseas markets, we'll deepen our presence in core strategic markets such as North America and Southeast Asia. We are actively expanding into more countries and regions, leveraging the agility of our water purifier gigafactory. We will continue to launch new localized production, extending our brand influence into broader markets. Second, to advance our differentiations in the domestic market, we will further strengthen the health-centric positioning of the Kunlun series with its alkaline mineral concept. Third, on the technology front, we will deepen the integration of AI across water purification scenarios, making technological innovations the core engine that enables Viomi to navigate market cycles and achieve sustained growth. Fourth, we will continue to strengthen collaborations with global strategic partners, fully leverage the scale effects of water purifier gigafactory to elevate both scale and efficiency.

Speaker #3: We will continue to launch new localized productions , extending our brand influence into broader markets Second , to advance our differentiations in the domestic market , we will further strengthen and health centric positioning of the Quinolone series with its alkaline mineral concept .

Speaker #3: Third, on the technology front, we will deepen the integration of AI across water purification scenarios, making technological innovations the core engine that enables Valmet to navigate market cycles and achieve sustained growth. Fourth, we will continue to strengthen collaborations with global strategic partners, fully leveraging the scale effect of the water purifier Gigafactory to elevate both scale and efficiency through this committed long-term approach.

Claire Ji: Through this committed long-term approach, Viomi will continue to create value for global users and deliver sustainable return to you, our shareholders. Thank you. That concludes our founder's remarks. I'll now turn the call over to our Head of Capital and Investment Department, Mr. Sammy Yang, to discuss our financial performance. Thank you.

Speaker #3: While we will continue to create value for global users and deliver sustainable returns to our shareholders. Thank you. And that concludes our founders' remarks.

Speaker #3: I'll now turn the call over to our Head of Capital and Investment Department, Mr. Sam Yang, to discuss our financial performance.

Speaker #3: Thank you

Speaker #5: Thank you, Miss Chen and Claire Ji. Thank you to everyone for joining us today. Let's take a look at our unaudited financial results for the second half of 2025.

Sam Yang: Thank you, Ms. Chen and Claire. Thank you to everyone for joining us today. Let's take a look at our water financial result for H2 2025. We recorded net revenue of CNY 950.6 million, a decrease of 25.9% from CNY 1,282.4 million for the same period of 2024, primarily due to the decrease in home water systems. Now let's look at the performance across three categories. Revenues from home water systems were CNY 628.2 million. A decrease of 32.1% from CNY 925.7 million for the same period of 2024, primarily due to the decline in national service fees for water purifier price.

Speaker #5: We recorded net revenue of RMB 950.6 million, a decrease of 25.9% from RMB 1,000.0 million for the same period of 2024, primarily due to the decrease in the home water systems.

Speaker #5: Now, let's look at the performance across three categories. Revenues from home water systems were RMB 628.2 million, a decrease of 32.1% from RMB 925.7 million.

Speaker #5: For the same period of 2024, primarily due to the decline in statistics, for water purifiers, revenues from consumables were a decrease of 17.9% from RMB 133.7 million for the same period of 2024.

Sam Yang: Revenues from consumables were CNY 112.2 million, a decrease of 17.9% from CNY 133.7 million for the same period of 2024. Primarily due to the decreased sales of water purifier filters to Xiaomi. Revenues from kitchen appliances and others were CNY 210.2 million, a decrease of 4.5% from CNY 220 million for the same period of 2024. Primarily due to the reduction in orders from Xiaomi as well as construction of Xiaomi brand product in this category. Gross profit were CNY 223.8 million compared to CNY 289.5 million for the same period of 2024.

Speaker #5: Primarily due to the decreased sales of water purifier filters to Xiaomi. Revenues from kitchen appliances and orders were RMB 210.2 million, a decrease of 4.5% from RMB 220 million for the same period of 2024.

Speaker #5: Primarily due to the reduction in orders from Xiaomi, as well as construction of brand products. In this category, gross profit was RMB 223.8 million, compared to RMB 289.5 million for the same period of 2024.

Speaker #5: Was margin was 23.5% compared to 2020 2.6 for the same period of 2024 . The slide increase in gross margin was mainly due to the elimination of the impact of costs incurred during the development of certain IoT at home business and assets Total operating expenses were 248 million renminbi , an increase of 12% from 221.5 million renminbi for the same period of 2024 , due to increased selling and marketing expenses and partially offset by decrease in Genoa expenses in greater detail R&D expenses were 76.3 million renminbi , an increase of 12.7% from 67.7 million renminbi for the same period of 2024 , mainly attributable to an increase of investment in new product development , selling and marketing expenses were 148.6 million renminbi , an increase of 29.8% from 114.6 million renminbi for the same period of 2024 , mainly due to an increase in brand promotion investment .

Sam Yang: Gross margin was 23.5% compared to 22.6% for the same period of 2024. The slight increase in gross margin was merely due to the elimination of the impact one-off cost incurred during the divestment of certain IoT@Home business and our assets. Total operating expenses were CNY 248 million, an increase of 12% from CNY 221.5 million for the same period of 2024 due to increase selling and marketing expenses, and they are partially offset by decreasing G&A expenses. In greater detail, R&D expenses were CNY 76.3 million, an increase of 12.7% from CNY 67.7 million for the same period of 2024, mainly attributable to an increase of investment in new product development.

Sam Yang: Selling and marketing expenses were CNY 148.6 million, an increase of 29.8% from CNY 114.6 million for the same period of 2024, mainly due to an increase in brand promotion investment as well as higher personnel costs resulting from channel expansion. G&A expenses were CNY 23.1 million, a decrease of 41.2% from CNY 39.3 million for the same period of 2024, primarily due to a decrease of employee compensation costs for credit notes losses. Net income attributable to the company was CNY 21.2 million, and the non-GAAP net income was CNY 28.2 million. Additionally, our balance sheet remained healthy.

Speaker #5: As well as higher personnel costs resulting from China's expansion, DNA expenses were 23.1 million renminbi, a decrease of 41.2% from 39.3 million renminbi for the same period of 2024, primarily due to a decrease of employee compensation costs for credit losses.

Speaker #5: Net income Was 21.2 million renminbi and non-GAAP net income was 28.2 million renminbi . Additionally , our balance sheet remained healthy as of December 1st , 31st , 2025 .

Sam Yang: As of 1 December to 31 December 2025, the company had cash and cash equivalents of CNY 806.6 million, restricted cash of CNY 164.4 million. Short-term deposits of CNY 258 million and short-term investments of CNY 82.6 million. Let's briefly discuss key financial results and outlook for the full year 2025. Net revenues were CNY 2,428.2 million, an increase of 14.6% from CNY 2,119 million for 2024.

Speaker #5: The company had a cash and cash equivalents of 806.6 million renminbi , restricted cash of 164.4 million renminbi . Short term deposit of 258 million renminbi and short term investment of 82.6 million RMB Next , let's briefly discuss key financial results and audit for the full year 2025 .

Speaker #5: Net revenues were RMB 2,000.4 million, an increase of 14.6% from RMB 1,119.0 million for 2024. Revenues from home water systems were RMB 1.0 billion.

Sam Yang: Revenues from home water systems were CNY 1,686.6 million, an increase of 12.6% from CNY 1,498.4 million for 2024. Revenues from consumables were CNY 235.4 million, a decrease of 14.2% from CNY 277.7 million for 2024. Revenues from kitchen appliances and others were CNY 506.2 million, an increase of 47.6% from CNY 342.9 million for 2024. Gross profit was CNY 665 million compared to CNY 548.7 million for 2024.

Speaker #5: 8.61 1,000,000,686.6 million renminbi , an increase of 12.6% from 1,000,000,498.4 million renminbi for 2024 . Revenues from consumables were 235.4 million renminbi , a decrease of 14.2% from 277.7 million renminbi for 2024 .

Speaker #5: Revenues from keychain appliances and others were 506.2 million renminbi, an increase of 47.6% from 342.9 million renminbi for 2020. For gross profit, it was 615 million renminbi compared to 548.7 million renminbi for 2024.

Speaker #5: Gross margin was 25% of 25.3% , compared to 25.9% for 24 . Total expense expense . Total operating expenses were 529.4 million renminbi , an increase of 24.6% from 424.9 million .

Sam Yang: Gross margin was 25.3% compared to 25.9% for 2024. Total operating expenses were CNY 529.4 million, an increase of 24.6% from CNY 424.9 million for 2024. In greater detail, R&D expenses were CNY 165.6 million, an increase of 15.9% from CNY 142.9 million for 2024. Selling and marketing expenses were CNY 277.7 million, an increase of 31.5% from CNY 211.2 million for 2024. G&A expenses were CNY 86.1 million, an increase of 21.6% from CNY 70.8 million for 2024.

Speaker #5: Remedy for 2024 in greater detail . R&D expenses were 165.6 million renminbi , an increase of 15.9% from 142.9 million renminbi for 2024 , and marketing expenses were 277.7 million renminbi , an increase of 31.5% from 211.2 million renminbi for 2020 .

Speaker #5: For Noah, expenses were RMB 86.1 million, an increase of 21.6% from RMB 70.8 million for 2024. Net income attributable to ordinary shareholders of the company was RMB 141.6 million, and non-GAAP net income attributable to ordinary shareholders of the company was RMB 155.7 million.

Sam Yang: Net income attributable to ordinary shareholders of the company was CNY 141.6 million, and a non-GAAP net income attributable to ordinary shareholders of the company was CNY 155.7 million. Thank you.

Speaker #5: Remedy . Thank you .

Claire Ji: Yeah. This concludes our prepared remarks. We will now open the call for Q&A. Mr. Chen, our founder, and then Mr. Sam Yang will join this session and answer questions. Operator, please go ahead.

Speaker #3: This concludes our prepared remarks. We will now open the call for Q&A. Mr. Chen, our founder, and Mr. Sam Yang will join this session and answer questions.

Speaker #3: Operator , please go ahead

Speaker #2: Thank you . To ask a question , you will need to press star one and one on your telephone and wait for your name to be announced and to withdraw your question , please press star one and one again for the benefit of all participants on today's call .

Operator: Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. 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. Please stand by for the first question. First question today is from Jinyu Zhang from CICC. Please go ahead.

Speaker #2: If you wish to ask your question to management in Chinese, please immediately repeat your question in English. Please stand by for the first question. The first question today is from Jin Yuzhang, from CIC.

Speaker #2: Please go ahead

Speaker #6: Okay. Good evening, Valmis management team, and thank you very much for hosting this earnings call and giving me the opportunity to raise questions.

Jin Zhang: Okay. Good evening, Viomi's management team, and thank you very much for hosting this earnings call and giving me the opportunity to raise questions. Well, I have three questions covering brand development, overseas strategy, and profitability growth. First and foremost, could you share the overall performance of the company's self-owned brand Viomi in 2025? And, additionally, what are the key investment priorities and initiatives for Viomi's brand building this year? Thank you.

Speaker #6: Well, I have three questions covering brand development, overseas strategy, and profitability growth. So, first and foremost, could you share the overall performance of the company's self-owned brand development in 2025?

Speaker #6: And additionally, what are the key investments, priorities, and initiatives for brand building this year? Thank you.

Sam Yang: Uh, uh.

Xiaoping Chen: Uh, uh.

Speaker #5: She was the champion. Can I answer the question for you? From the deep, yes, the woman was changing for me.

Claire Ji: Okay. To answer your question, in 2025, our brand revenue was primarily from domestic online channels. We have ranked at 10th place among the annual brands listed on Jingdong. We also ranked 19th place in sales on Amazon USA, which is a great progress. Moving forward, we will adopt a differentiated strategy in North America by launching distinct brands and positionings on online and offline channels. In particular, in April, we will participate in the World of Coffee Fair in San Diego, and we will debut our new brand series at WQA Convention in Miami. This marks the first step into North American offline market and showcasing the partners across the US and the world. A redefined vision of Better Water. Thank you.

Speaker #5: The better. Water change in the

Speaker #3: Okay . And to answer your question , in 2025 , our brand revenue was primarily from domestic online channels and we . We have ranked 10th place among the annual brands listed on Jingdong .

Speaker #3: And we also ranked 19th place in sales on Amazon USA , which is a great progress and moving forward , we will adapt a differentiate strategy in North America by launching distinct brands and positionings on online and offline channels in particularly in April , we will participate in the world of Coffee Fair in San Diego , and we will debut our new brand series at a convention in Miami .

Speaker #3: And this marks the first step into the North American offline market, and showcasing the partners across the U.S. and the world are redefined. Vision of better water.

Speaker #3: Thank you

Jin Zhang: Thanks to Sam and Claire. It's very clear. We're moving to my second question on overseas expansion. Why have we successfully entered the US and the Malaysia market? What are the differences in your market strategies between these two regions? What key challenges have you encountered? How do you plan to mitigate them? Also, could you outline the overseas expansion goals for 2026? Thank you.

Speaker #6: Thanks to Sam and Claire. It's very clear. So here, moving to my second question on overseas expansion. So why has Viomi only successfully entered the US and Malaysia markets?

Speaker #6: So, what are the differences in your market strategies between these two regions, and what key challenges have you encountered? How do you plan to mitigate them? Also, could you outline the overseas expansion goals for 2026?

Speaker #6: Thank you

Xiaoping Chen: 好问题，我们来回答一下第二题。在美国跟马来，我们都组了本地的团队。美国呢，我们是主打线上的亚马逊的自营渠道，所以我们在亚马逊推出了全就是叫RO的这种净水器，那这个卖得还不错。然后接下来，我们会针对北美的线下，我们会推出一系列的新品，那它就会覆盖全屋的这个系统，就不单纯是这个厨下的这个RO净水器了。那在马来，我们主要还是聚焦在线下。那线下的话，它的产品形态主要是以台面的为主。当然那个马来人比较喜欢喝冰水，所以我们会叠加冰水的这样的一个功能，它会比较符合当地的饮水的需求。然后我们会进一步地去拓展线下的合作伙伴跟产品线。当然海外的这个市场，有比较大的不确定性，当然地缘政治当下也比较多变，但我们认为，其实海外的机会是很广阔的，我们是具备这种核心竞争力的。所以，海外市场对于我们公司来讲，是我们的中长期战略的一个重要的着眼点。我们预计，海外应该会在2026年会有三位数以上的增长。

Speaker #5: Sammy, you may want to—woman, the Chen—for our, not your, slide.

Speaker #3: And to answer your question, we—we have built teams for both the United States and Malaysia, and especially in the United States.

Claire Ji: To answer your question. We have built local teams for both the United States and Malaysia, and especially in the United States. We launched the Viomi branded under sink water purifiers on Amazon, which is the online channel. Next we will bring new brands and products tailored for the US offline markets in Q2. This will cover not only the under sink products, but also the whole house purification systems. In Malaysia, our focus is offline with countertop units of the main product format, adding features like ice and the cold water that match the local drinking habits. Next we will expand more offline partnerships and diversify our product lineup. For the overseas markets in total, in the future, there are still plenty of uncertainties overseas, and the geopolitical tensions continue to create headwinds.

Speaker #3: We launch the . The branded Under-sink water purifiers on Amazon , which is the online channel and the next we will bring new brands and products tailored for the US offline market .

Speaker #3: In the second quarter and this will cover not only the underseen products , but also the whole house filtration systems . And in Malaysia , our focus is offline with countertop units as the main product format , adding features like Ice and cold water that matches the local drinking habits .

Speaker #3: And next will extend more offline partnerships and diversify our product lineup . But for the oversea markets , in total , in the future , there are still plenty of uncertainties overseas and the geopolitical tensions continue to create headwinds .

Speaker #3: Still, we see strong opportunities globally, and we believe we are well positioned. That's why the global extension will remain a key part of our long-term strategy.

Claire Ji: Still, we see strong opportunities globally and we believe we are well positioned. That's why the global expansion will remain a key part of our long-term strategy. For 2026, we expect a triple-digit growth in the overseas revenue. Thank you. Yes, very clear. Thank you, Jin, Sam, and Claire. My last question comes to the company's profitability. Well, we see the company's profitability improved notably in 2025 after focusing on the water business. For 2026 and moving forward like next two to three years, what are the core pathways for further enhance profitability and sustain this positive momentum? Thank you.

Speaker #3: And for 2026 , we expect a triple digit growth in the oversea revenue . Thank you

Speaker #6: Yes , very clear and thank you . Thank you , Sammy , and declare . And so my last question comes to the company's profitability .

Speaker #6: Well we see the company's profitability improved notably in 2025 after focusing on the water business . So for 2026 or and moving forward , like next 2 to 3 years , what are the core pathways for further enhanced profitability and sustain this positive momentum ?

Speaker #6: Thank you

Xiaoping Chen: 好，我先回答一下，就是关于这个，我们主要是有三个途径吧。那第一呢，是我们拓展海外，就是把这个自有品牌的这个规模，继续扩大。当下呢，其实我们的毛利率呢，还处于就是平均水平，主要是我们自有品牌的这个规模呢，占比还不太高，所以我们希望是拓展这个海外市场呢，把海外市场的这个自有品牌的份额呢给提升起来，那这就有利于把我们自有品牌的份额给提升，那就能够提升，进一步提升我们的盈利能力。然后第二个呢，是自有品牌的这个耗材收入的这个提升，这个是长期的、持续的能够改善盈利的一个驱动力。那我们的这个自有品牌的净水器的销量呢，在不断地提升，那预计应该在未来的一到两年后应该会产生持续不断的这个耗材收入。然后第三个呢，就是我们进一步地去丰富我们的产品矩阵，那我们会把台面的这个产品，包括这个不同的这种功能的机器，包括甚至是，比如举个例子，这种制冰的，以及这种有复合功能的这种产品，还有这个更高单价的和毛利更高的这种全屋的这种过滤的这种产品，我们会全面去覆盖，那这些产品呢会更完整，然后也会让我们这个产品线呢更宽，去覆盖这个全球的市场。

Speaker #5: Your I , I to you He You you you You . In Should The . Your The The . The . Your . Champion .

Speaker #5: The . Model Champion . Champion Right now . We We want to . To to

Claire Ji: OK, to translate the answers. There are three main paths. The first is extend overseas markets and accelerate the growth in our Viomi branded business. Currently, our margin is still on a low level, mainly because our Viomi branded products sell still makes up a relatively small part of the business. By pushing into the international markets and growing the shares of our own branded sales, we can improve the profitability. The second path is about the consumables revenue. The consumables revenue from our own branded products will be a long-term driver of the margin improvements. As more people are using Viomi water purifier globally, the consumable revenues will start to kick in about 1 to 2 years after the equipment sales. We start to see the trends. Third, we will broaden our product lineup, which is adding more countertop options like ice makers, multifunctional countertop water dispensers, and higher margin whole home filtration systems. These new categories will help us reach more customers and build a stronger, more complete product portfolio and for the global expansion. Thank you.

Speaker #3: To translate the answers There are three main paths and . The first is extend overseas markets and accelerate the growth in our branded business .

Speaker #3: Currently, our margin is still at a low level, mainly because our branded products still make up a relatively small part of the business.

Speaker #3: So by pushing into the international markets and growing the shares of our own branded sales , we can improve the profitability . And the second path is about the consumables revenue , the consumables revenues from our own branded products will be a long term driver of the margin improvements , as more people are using them .

Speaker #3: Water purifier globally , the consumable revenues will start to kick in about 1 to 2 years after the equipment sale , and we start to see the trends .

Speaker #3: And third , we we will broaden our product lineup , which is adding more countertop options like ice makers , multifunctional countertop water dispensers , and higher margin whole home filtration systems .

Speaker #3: These new categories will help us reach more customers and build stronger, more complex product portfolios. And for the global expansion.

Speaker #3: Thank you

Jin Zhang: Yes, very clear. Thank you very much for your time and detailed answers. I have no further questions.

Speaker #6: Yes . Very clear . Thank you very much for your time and detailed answers . I have no further questions .

Claire Ji: Thank you, Jinyu.

Xiaoping Chen: 谢谢锦瑜。

Speaker #3: Thank you

Operator: Thank you. We'll now take the next question. This is from Shi Jingxing from CMS. Please go ahead.

Speaker #2: Thank you . We'll now take the next question . This is from Shi Jingsheng from CMS . Please go ahead

Shi Jingxing: 好的，感谢陈总和Claire。我是交银证券的分析师史经星，我这边也是有两个方面的问题吧，先请教一下。第一个呢，是想拆解一下，我们看到了就是在去年下半年国补退坡之后，这个终端端其实出现了下滑。那其实今年26年国补还是面临着上半年的高基数，所以可能想请教一下，在今年这种国补退坡的压力之下，我们的增长的这种来源和动能，可以帮我们做一个剖析和展望吗？然后这个问题里面有一个细的细节，就是最近我有关注到云米跟燃气公司也有很多的战略合作最近发布，包括新奥燃气、中国燃气，还有跟海信集团也在企业端也有一个很深化的合作。所以想请教一下，在这方面的细分市场对我们今年的增长会贡献多大的一些帮助。这是第一个问题，感谢。

Jingxing Shi: 好的，感谢陈总和Claire。我是交银证券的分析师史经星，我这边也是有两个方面的问题吧，先请教一下。第一个呢，是想拆解一下，我们看到了就是在去年下半年国补退坡之后，这个终端端其实出现了下滑。那其实今年26年国补还是面临着上半年的高基数，所以可能想请教一下，在今年这种国补退坡的压力之下，我们的增长的这种来源和动能，可以帮我们做一个剖析和展望吗？然后这个问题里面有一个细的细节，就是最近我有关注到云米跟燃气公司也有很多的战略合作最近发布，包括新奥燃气、中国燃气，还有跟海信集团也在企业端也有一个很深化的合作。所以想请教一下，在这方面的细分市场对我们今年的增长会贡献多大的一些帮助。这是第一个问题，感谢。

Speaker #5: Other

Speaker #4: For the

Speaker #7: For The

Claire Ji: OK, I'll quickly translate the question first. Can you analyze the impact of the national subsidy reduction on the domestic market, especially when we see in H2 2025 the negative impact has caused the revenue decline. Can you forecast the future impacts and offer us some guidance? We recently noticed the BDF in the business development. Can you offer some heads up about the top-line contribution about cooperation with China Gas, this kind of business development? Thank you.

Speaker #3: Okay, I'll quickly translate the question first. Can you analyze the impact of the national subsidy reduction on the domestic market, especially when we see—

Speaker #3: In the second half of 2025 , the negative impact has created a . Has cost the revenue decline and . Can you forecast the future impacts and offer us some guidance and also we recently noticed the B e and the business development .

Speaker #3: Can you offer some heads up about the top-line contribution from cooperation with China's guests—this kind of business development? Thank you.

Xiaoping Chen: 谢谢石老师，那个我大概先回答一下，待会儿Claire帮我翻译。那个我们来看，其实2025年这个国补，确实对净水器，是有一定的刺激作用，尤其是去年的上半年的基数会比较高嘛。那所以今年，对比去年的上半年来讲的话，会有一些挑战。但是我们如果看净水器这个品类，其实有另外一个层次的考量，那这个主要是就是这个品类的渗透率还是比较低的。那在中国来看的话，它的需求其实还没有释放。所以我们预计，就整个2026年应该会这个行业，它会回归正常值。净水这个品类，其实对于这个消费下行，是有抗下行周期这个能力的。我们认为，就是会有越来越多的消费者会选择净水器，这个趋势应该是不可逆。然后2026年，我们再看，其实净水器在国家层面已经没有补贴了，所以大家其实也可以看到，就是虽然有些品牌可能显示还会有那个15%左右这样的一些补贴，那有些品牌其实没有做了。那对于我们而言的话，我们已经停止了这个业务。另外，就是石老师提的这个关于我们跟这种燃气公司的一种合作，比如像中燃、新奥这些燃气公司，我们觉得这种合作，其实是一种互惠互利的全新的一种合作模式。因为第一是他们的这个展厅跟服务网点，在中国是很多的，他们基本上可以覆盖将近五千多万个家庭，而且它那个使用的场景也是中央安装的，所以跟我们垂下净水器又特别吻合。我们觉得那个品类也是高度互补，因为我们是一个很好的这种进入下沉市场的一个通路。所以2026年，我们认为这个是一个比较好的一个试点，我们认为这个应该是一个不错的能够给双方都带来增量的一个好的合作机会。

Speaker #5: Share the A On your Your One . A Your Account Email for the Again One . Who . Jotting The

Claire Ji: Okay, I'll quickly translate answer. As you can see, the impact of the national subsidy on water purifier is obvious in 2025. Due to the high base last year, domestic market will face challenges in H1 2026. For product like water purifier however, where penetration is still relatively low, so the customer demand is still growing. We expect the 2026 to return to the category's normal growth pace, and then remain relatively resilient even as consumer spending softens. As we see more and more people are choosing to use water purifiers, and we believe that trend is irreversible. Starting in 2026, water purifiers are no longer covered by national subsidies. You may, you might see some brands still offering 15% off on online commerce platforms while others don't. We didn't offer that percentage off, and we have faith in our product competitively. To answer your questions about the cooperations with the gas companies, we recently reached the cooperation with the China Gas and ENN Energy, companies like this. The way we see is we are exploring new partnership models with these companies, and their showrooms and service centers across country, reaching over 50 million household users. Both our products highly rely on the installation service support, and the production scenario fits perfectly with under sink water purifiers, and the product categories complement each other. This gives us an efficient way to enter lower tier markets, and 2026 will be a pilot year for the partnership. This is expected to be a great opportunity for both parties, and we expect it will bring incremental growth. Thank you.

Speaker #3: Okay . I'll quickly translate . Answer . As you can see , the impact of the National subsidy on water purifier is obvious in 2025 and due to the high base last year , the domestic market will face challenges In the first half of 2026 for products like water purifier .

Speaker #3: However , we are . Penetration is still relatively low , so the customer demand is still growing . We expect the 2026 to return to the category's normal growth rate , growth pace and remain relatively resilient even as consumer spending softens .

Speaker #3: As we see, more and more people are choosing to use water purifiers, and we believe that trend is irreversible. Starting in 2026, water purifiers are no longer covered by national subsidies.

Speaker #3: You may—you might see some brands still offering 15% off on online commerce platforms, while others don’t. We didn’t offer that percentage off.

Speaker #3: And we have faced in our product competitiveness and to answer your questions about the cooperations with the guest companies , we recently reached the cooperation with the China Gas and Energy companies like the companies like this and the .

Speaker #3: The way we see it is, we are exploring new partnerships and models with these companies and their showrooms and service centers across countries, reaching over 50 million household users. Both our products rely heavily on the installed service support and the production scenarios.

Speaker #3: This fits perfectly with Anderson water purifiers, and the product categories complement each other. This gives us an efficient way to enter lower-tier markets, and 2026 will be a pilot year for the partnership.

Speaker #3: This is expected to be a great opportunity for both parties, and we expect it will bring incremental growth. Thank you.

Xiaoping Chen: 邵老师开始第二题呗。

Shi Jingxing: 好，是。然后第二个问题就是，首先还是回到利润率的这个方面上，整个上半年的时候，就是二五上半年的时候，当时利润率还比较不错，然后是下半年的时候这个利润率的下降应该是跟品牌补贴有一定关系吧。所以也想了解说今年的话国补退坡，那品牌也就换言之不用再去补，那我们的毛利润率应该就会有种回升。所以也想请教一下，可能从利润率的方面上，我们今年会不会有一个什么样的具体的回升的思路或目标。就这个角度，谢谢。

Jingxing Shi: 好，是。然后第二个问题就是，首先还是回到利润率的这个方面上，整个上半年的时候，就是二五上半年的时候，当时利润率还比较不错，然后是下半年的时候这个利润率的下降应该是跟品牌补贴有一定关系吧。所以也想了解说今年的话国补退坡，那品牌也就换言之不用再去补，那我们的毛利润率应该就会有种回升。所以也想请教一下，可能从利润率的方面上，我们今年会不会有一个什么样的具体的回升的思路或目标。就这个角度，谢谢。

Speaker #7: Hello

Xiaoping Chen: 好问题，这个我们刚刚那个问题可能跟那个锦瑜那个有一点点类似，就是我们，我再稍微补充一下，就是关于这个问题。我们提升这个，就是2026年呢，其实本质上对于公司来讲的话呢，我们有几个点要去做的。那第一呢，是我们继续扩大规模，那扩大规模的主要途径是通过海外市场的扩张，那尤其是北美跟马来市场这个扩张，我们会有更多的产品，然后会走进更多的渠道。那第二个事情呢，就是关于我们在这三个途径会做的这个事情。那这三个途径呢，是我们会进一步地会提高我们这个耗材的这个收入。那耗材呢，大家知道其实过去一两年我们卖了不少这个净水器出去，那随着这个年份往后的推移，我们的这个耗材的收入会进一步的累积，那耗材的这个毛利呢是有保障的，那这是其中一个。然后另外一个呢，就是我们自有品牌的份额的这个占比，我们会进一步的会加大。那在过往呢，其实我们自有品牌的这个占比呢还不太高，所以我们希望通过刚才讲的这种海外的这种扩张啊，跟品类的这种扩充啊，这样的话呢，我们能够提高我们自有品牌的这个占比，那进一步地提升我们的这个份额，然后提高我们的这个营业能力。然后最后一个呢，就是关于我们的一个产品，那在整个这个产品线上呢，我们原来产品其实是以除甲醛机为主，那除甲醛机呢，我们的那个毛利呢，其实在行业的平均水平，那我们现在会推出一些高毛利的产品，那这些高毛利产品包括我们做的这种叫全屋的呀，以及这种叫复合功能的这种台面积啊，这些我们会提升单价以及毛利。所以我们希望说通过这些几个组合的动作做下去，能够让我们的这个毛利啊有一个保障，利润有一个不错的这个表现。

Speaker #5: Woman, woman, woman, my woman, woman. We, the hotel, is the hotel, and on the house, I hotel woman, we have got.

Speaker #5: I The She On the Woman . The You The

Claire Ji: Okay, I'll quickly translate answer to you. This is a similar question to one of the previous session. The first one is we will extend our overseas market scale, especially in the United States and Malaysia. We will use more diversified products to entering more channels, is by for example, for the United States, we will have explore offline channels for first time with new brand and new products with higher margins. The second strategy is to increase the consumable revenues. As you can see, the consumable revenues has a very promising guarantee of the improvement of profitability. We have our own branded water purifier sales has increased during the past few years. We see the trend of consumable revenues to kick in after one to two years after the equipment sales.

Speaker #3: Okay . I'll . Quickly translate the answers to you . That is a similar question to our . One of the previous question and the first one is .

Speaker #3: We will expand our Oversee market scale , especially in the United States and Malaysia , and we will use more diversified products to enter in more channels , especially , for example , for the United States .

Speaker #3: We will explore offline channels for the first time with new brands and new products with higher margins. The second strategy is to increase the consumable revenues.

Speaker #3: As you can see, the consumable revenues have a very promising guarantee of the improvement of profitability, and we have our own branded water purifier, which has increased during the past few years, and we see the trend of consumable revenues to kick in after one to two years after the equipment sales.

Claire Ji: This will be a long-term AI-driven effect, a factor for the margin expansion. Thirdly is to improve our own brand revenue contribution by both overseas expansion and product portfolio expansion. Lastly, we will have more diversified product lines. As of today, most of our revenues comes from the under-sink water purifier product format. Our profit margin is within the industry level. However, we will extend more diversified products with higher profit margins than ASPs, like the whole house water filtration systems and the countertop products equipped with diversified functions like cooling, ice making, and so on. Thank you.

Speaker #3: So, this will be a long-term driven effect factor for the margin expansion. And thirdly, it is to improve our own brand revenue contribution by both overseas expansion and product portfolio expansion. And lastly, we will have more diversified product lines as of today.

Speaker #3: We still most of our revenues comes from the under sink water purifier product format . And our profit margin is within the industry level However , we are we will expand more diversified products with higher profit margins and ASPs like the whole house , water filtration systems and the countertop products equipped with diversified functions like cooling ice making , and so on .

Speaker #3: Thank you

Speaker #5: Cheers , Raja

Operator: Thank you. We'll now take the next question. This is from Brian Lantier from Zacks Small Cap Research. Please go ahead.

Speaker #2: Thank you. We'll now take the next question, and this is from Bryan Lanthier from Zacks Small-Cap Research. Please go ahead.

Brian Lantier: Thank you very much. Most of my questions have already been covered. I just wanted to say I'm encouraged by the move to offline distribution in the US. Just sort of big picture, looking at the impact of the subsidies was significant, obviously in your six-month results, but I think if you look year over year, you have a 14% top line growth rate. If I'm looking out over the next three to five years, is that sort of what you view as the normalized growth rate for the business, 10% to 15% top line?

Speaker #8: Thank you very much Most of my questions have already been covered . I just wanted to say I'm encouraged by the move to offline distribution in the US And then just sort of big picture looking out the impact of the subsidies was significant .

Speaker #8: Obviously , in your six month results . But I think if you look year over year , you have a 14% top line growth rate .

Speaker #8: If I'm looking out over the next 3 to 5 years , is that sort of what you view as the normalized growth rate for the business ?

Speaker #8: 10 to 15% top line

Claire Ji: However, another major part of our business revenue is our major client, key clients' business, such as Xiaomi. This will be aligned with the key accounts' business performance. In the current environment, the growth is precious. Overall, we anticipate that the company has the potential to enter into a nominal growth rate of a low double-digit growth in 2027. Thank you.

Speaker #3: You are The You Now. Sure, Daniel.

Speaker #5: Sure. What you need, you. The goal that we should, you should, you. Xiaomi should, the. And.

Speaker #3: Okay , I'll translate the answers to your question . According to our estimation , we see the industry's normal growth rate would be at a high single digit level .

Speaker #3: Without the impact of the national subsidy, and so on. And while the Redmi brand growth rate will be higher than the industry, this is mainly because it is driven by the enhancement of our brand strength and the expansion of our international market growth. However, as the major part of our business, revenue is our major clients, key clients business such as Xiaomi.

Speaker #3: This will be aligned with the key . Accounts . Their business performance and . In the current environment , the growth is precious , so overall , we anticipate that the company has the potential to enter .

Speaker #3: Into a nominal growth rate of a low double digit growth in the 2027 . Thank you

Brian Lantier: Great. Thank you. That's all I had.

Speaker #8: Great. Thank you. That's all I had.

Claire Ji: Okay. Thank you, Brian.

Speaker #3: Okay .

Speaker #5: Thank you . Thank you

Sam Yang: Thank you, Brian.

Operator: Thank you. 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 #2: Thank you . That concludes the question and answer session . I would like to turn the conference back over to management for any additional or closing comments

Claire Ji: 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 relations consultant, Piacente Financial Communications. Thank you.

Speaker #3: 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 , peasant financial Communications .

Speaker #3: Thank you

Operator: Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.

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