Viomi Technology Co., Ltd (VIOT)
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Emerging Growth Virtual Conference 78

Jan 16, 2025

Claire Ji
Director of Investor Relations, Viomi Technology

Hello everyone, I'm Claire from Viomi Technology. Today I'm going to share some recent developments of the company. First, let's take a look at the Safe Harbor Statement, and we'll be informed that all the discussions we made today about forward-looking statements are under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. There may be inherent risks and uncertainties, and the actual results may be different from the views expressed today. Let's take a look at our growth strategies and see where we have achieved for the past 2024, and what we plan for the new year. For the past year, we further deepened our roots in the domestic market, continued to lead the healthy mineral water trend, and strengthened our brand influence and fully leveraged our Water Purifier Giga factory's competitive advantages.

Our under-sink water purifier achieved great results in the past 11 promotion seasons. Kunlun Series sold over 10,000 units during the promotion, with an average sales price over RMB 3,000. We launched this series earlier this year and achieved great progress. These mineral water products offer better taste of water and lead to a healthy lifestyle. What's more, it helped with our gross margin expansion. In the meantime, our brand influence improved a lot. Viomi has ranked fourth, fifth, and ninth place in Douyin, Pinduoduo, and Tmall, respectively. We have built up and integrated distribution channels, both online and offline. We sell Viomi branded products via these channels, covering all the major channels in China and Amazon U.S. We also sell Viomi branded products to our dealers who own the Viomi retail stores nationwide. Xiaomi is one of our biggest strategic partners.

We develop Xiaomi branded smart water purifiers and smart kitchen products for them, and we are also seeking collaborations with U.S. dealers offline. Here is the exciting progress we made in the U.S. market during the past three months. In November, we launched the crowdfunding of our V8 water purifier on Kickstarter, and both of our V6 and V8 water purifiers are available to order on Amazon in December. Viomi also made a debut at CES 2025 Las Vegas in January. At the fair, our new products for the U.S. market, as well as our signature Kunlun Series, attracted much attention. Our Kickstarter project got 156 supports in total, exceeding our funding goals by over 1,200%. This is a nice start for our products to be sold in the U.S. market and for us to keep upgrading our solutions that better fit new market demands.

Our V8 and V6 under-sink smart water purifier received 100% five-star reviews on Amazon, and the tankless design and smart UI display are highly praised by customers. Our service mechanism of offering detailed instructions and round-the-clock feedback to guide users to install by themselves has also been recognized by consumers. At CES, our booths attract numerous customers. They intuitively feel revolutionary upgrades of the new AI-empowered water purifiers from the size, performance, and other aspects away from the traditional water purifier. So far, our first generation of products in overseas markets has received almost all positive feedback. Customer satisfaction is the greatest recognition of our product design, product quality, and service capabilities. What do we mean when we say our home water solution is empowered with AI?

Compared to the domain applications for home water solutions, they meet household users' demands of water quality or type of water on different stages, and they work separately, which makes the system expensive, difficult to maintain, and inefficient. At Viomi, we redefine the system holistically and intelligently. All applications are connected to the app on our phone and to each other. The level of purification can be intelligently adjusted, and the quality of water can be monitored. The under-sink RO series resolves the major issues of water drinking home drinking water and upgrades the quality of life by offering fresh mineral water from the tap. These whole home water softening and purification systems help to improve the water quality from the point of entry and protect the whole home system in-house. All kinds of countertop and portable products could fit in the flexible scenarios and meet diversified drinking demands.

For those of you who have known Viomi as an IoT technology company, we want to emphasize our strategic business reorganization once again. As we divided certain underperforming segments and mainly focused on home water solutions, we achieved major turnaround fundamentally. As we completed our reorganization by August, the performance of the continuing business will be presented in our second-half earnings release, and we will restate historical financials in way of the continuing businesses. We stay positive on our previous outlook for the full year and are quite confident to achieve the full-year guidance. That's all the information I would like to share with you. In conclusion, Viomi is a great company with very healthy financials and dedicated in the promising water purifier sectors, and we are putting our most strengths and efforts in effort.

If you are interested in Viomi and want to discuss more with the management, please feel free to drop us an email at ir@viomi.com. Thank you all for the time. Goodbye.

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