VIOT Viomi Technology

Cecilia Li Senior IR Manager
Xiaoping Chen Founder, Chairman and CEO
Shun Jiang CFO
Hanli Fan Morgan Stanley
Xudong Chen CICC
Joy Wei 86Research
Vincent Yu Needham & Company
Call transcript
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Hello, ladies and gentlemen, thank you for standing by for Viomi Technology Co., Ltd Earnings Conference Call for the Third Quarter of 2020. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I would now like to turn the call over to your host, Ms. Cecilia Li, the Senior IR Manager of the Company. Cecilia. ahead, go Please

Cecilia Li

Hello, conference welcome quarter call Operator. Co., XXXX. Viomi Ltd earnings for everyone, you, to and Technology Thank the third

financial today and As recorded. posted online. issued conference this are a and company's in earlier a were operating release is press results reminder, The being

the Chairman of You the the Officer; Financial will Participating Mr. Founder, Board the of company's release with at and earnings and session. Mr. the are up for section can e-mail the and distribution Officer. Chen, IR management a Executive the and Chief conclude today's remarks, of download in Directors company's call Xiaoping call prepared company's Shun Chief begin list press will Q&A sign the Jiang, with by visiting The website

discussion please Securities U.S. the will forward-looking continue, Provisions Safe XXXX. statements Private the we note of made Harbor Act contain under Before of Litigation Reform today's

English press directly Mr. GAAP press deliver call followed comparable Xiaoping Viomi's ahead. will include a CEO, over as Chen, contains uncertainties, materially expressed Chen. information, actual risks the company's as Chen financial GAAP company's included unaudited inherent please the involve in information Further annual his to and today. from statements the different will other translation. uncertainties as regarding these now is of and Forward-looking risks release such, and be unaudited well measures by go conference the measures. report may non-GAAP results Viomi's the Mr. views call not as on any any Chinese, of filings and note filed does to with most this Form earnings obligation measures. the in U.S. and immediately required release except remarks and Exchange The discussions unaudited company forward-looking reconciliation also unaudited and XX-F I to Mr. Securities statements, turn financial by law. update also Viomi's as Founder non-GAAP that Commission. the other assume Please

Xiaoping Chen

Language] [Foreign

Shun Jiang

Shun, of Viomi's performance translate the earnings of the Mr. industry billion, of third is quarter remarks, our once our you This Xiaoping. before XX% revenues Hello RMBX.XX the call conference rebounding CFO. momentum for quarter our quickly again. third XXXX. thank increasing Chen's you, Thank third financial continued guidance XXXX. landscape, growth strong quarter, in Under consumer discussing everyone, the for I'll post-pandemic for year-over-year the we to demand in with backdrop previous the and exceeding meaningful net recovery by our joining around

framework TV many IoT two of strategic the amongst part strategy, introduction our and XG and marks protocol across the algorithm home algorithms years, Home home we Screen XXXX, this environment, scenarios and all services and we have implementation including technology, sensor under technology, comprehensive as our XG IoT of for IoT and strategic a developing Interactive framework. the products we hardware. which Smart May, products and Over accelerated the introduced XXFace XG past been In IoT smart concept, SaaS of services our In Home screens. AI @

pads modules, our connection CPE for control a in customer the capabilities equipment, environment. at strengthening launched and or event products, this, product IoT chip smart home Following we IoT screen recent further premise October, XG home launch router state-of-the-art interface, based

rapidly XXFace our maintain we and of line XG added this additional our of continue We XG strategy a that enhancements IoT content businesses large also to our and evolving recent launch expand and us the are value To further expanded XG refrigerators, content screen we increasing event, fully related At product to partnerships. announced penetration focused applications. position point, will industry. leadership confident adaptation help IoT technology, this our in

Douguo. including and platform FM, audio recipe iQIYI, sharing entertainment various sharing Kugou with app cooperation previous platform and Music, Ximalaya video our media Following platforms, online

video short We media also recently platform. popular social Douyin, China's reached a cooperation agreement with

scenarios. also made screen on leverage operating to home and efforts to system our consumption through Yunmi capitalize have the large own e-commerce platform We our Shangcheng, integrate

operating Our data ever large usage, IoT screens levels our and stickiness social of applications increasing media generation. interface enable of consisting entertainment, and advertising to create shopping,

more continue value we greater providing light consumption cleanliness consumer we'll trends, our products, water enhanced relation delivery content more behavioral services branded In offerings era, up of in to our purchasing group the forward, as Viomi to to capture efforts IoT purifiers the emphasis Going sweeper robots. opportunities have explore and and in user while dynamic on experiences. to and ramped to added in post-pandemic even us such screen ever partnerships grocery allowing services, community large changing cater and and

XX In development double terms of in water, water drinking growth next also as quality navigated significant the robot, sweeper two series well commitment expect new them purifiers years pillars demonstrating market, key robot our in be reverse robots. brand and recent business, water high our Super, Tianjin months, the and well as generation sales disposal sub-brand series September, sweeper ahead. of establishing automatic of with we a of flux of the its diversified of growth purifier These own recent including osmosis season. product have the large our they water categories a of professional series called laser And by purifiers, launched delivered providing across and purifiers our of in Alpha, high home following extremely to water our end May We've Double [ph] sales to first as the solutions. navigated expedited dust well-received been as introduction introduction sweeper and we water visual

hires have knowhow better Moreover, nascent across chain make our categories. ensure to categories making also allocations new we resources, We markets. our success extensive these to breakthroughs growing resource product experience, to internal upon Leveraging our the and appropriate also into existing tap expect and personnel core supply been to continue projects. innovative rapidly for export these us technology the of we allow

shorten our able will us over New continue AI machines dryer Wind caused patents further to circulation [ph] assess load technologies suggest air water example, and traditional of time help washing settings. new and experience. generation resolve is premium the XX%, washer by points related users series help able user through by quality pain to to to product models, improving cleanliness technology. For our drying revolutionary next And state-of-the-art is i-Bot user optimal These

have for continued also standalone to deepen We on are and sales offline our Historically, broaden we stores presence. presence. volume focused experience channel franchise, our

our additional relation with brand partnerships outlets and also continuing particularly as recognition, continue Tmall. we various of to plans JD of have increase retailers sales, we leaders. and As increase through points such greatly cooperation our OXO retail We're to with e-commerce, initiated overall major to discussions in penetration

IoT and first we our part concepts & example, Apollo Hunan the experience province. Ltd., as promote Viomi products Friendship with established For Hunan store to Co. of recently strategic our in cooperation Commercial

over Looking this years RMBX back just year to two from XXXX. close billion IPO, billion at our we since have the reaching for revenues in than more our RMBX.X doubled

also portfolio, diverse presence a established all We differentiated consumer expanded of levels channel our firmly product brand, in profitability. and technology our enriched healthy Viomi IoT numerous have successfully while expanded as patent into further lines, maintaining significantly sales highly XG

our on core continue product will for XG and strategy, categories optimizing ahead, our execute core Looking lines resources focusing we and SKUs. streamlining to IoT

products, quality and generation delivering strong and technologies ourselves applications. to industry high in the an as are cementing and leader We fully growth of committed devoted next

a stakeholders. our the Our reality for goal make XG and consumers of home the IoT is benefit all to

Shun Jiang

That concludes our comments. Founder’s

review to let's results, third Now as turn the year quarter the for of well full outlook our detailed and as financial fourth quarter XXXX. the of

increased the diversified part the product conditioning mix, for XX.X% third representing by XXXX, IoT certain the same RMBXXX.X the business robots quarter rollout compared the RMBX.XX @ Revenues of in by business to air XXXX, quarter discussed, systems. COVID-XX. continued from Viomi new from RMBX.XX due industry increased an Revenues increase revenues billion billion, categories, from net Home the around million period impact the XX% revenues and were particular of year, XX% last XX.X% of Xiaoping began for RMBXXX.X As our of of our third demonstrating recover to once quarter. from successful to of the the to our to total primarily sweeper again of million strength of of for portfolio as

to small track XX.X% appliances currently in from and we wide recent Water extensively, Solutions purifier demand basis, Home million. and Viomi XX.X% due increases, sales to XX% compared are in above prices well was Water driver revenues as selling the into period on from XXXX, represented going robots, quarter, same fold of the quarter-over-quarter a shifts demonstrated both mitigated as Home from Revenues of year. to than the by of increased as despite industry primarily to sales year-over-year to introduction Water products. XX.X% a expect the taking Revenues similar water purifier This water Solutions over part our the of expect our water sales was to prices, same purifier around year. water quarter high of X%, by than from and multi significant increasing to respectively, branded increased the of of in new the key of increased fourth particularly Home to Viomi-branded business Viomi-branded sweeper overall forward X% RMBXX.X partially of business, discussed effect as filter our margin second-half products. the level in from XX% Revenues purifier in last be quarter. our previously less and average water expected year-over-year, for total in Viomi-branded and purifier have growth due basis. on products the primarily our purifiers by from to decreases consumables we factors quarter the XX% both structural doubled a last be a third on period water Solutions products. we are the double RMBXXX.X at The and fourth million. decreased that others Xiaomi-branded consideration performance, successful retail decline over which series contribute in nearly and year-over-year our to on quarter business of Revenues our revenues more Third revenues million, for total by Based RMBXXX.X in

from In approximately net third quarter XX% derived sales XX% discussed, and around our of business, breakdown, channel from as while total Viomi business. was terms our for revenues Xiaomi of derived our the

around XX% XX% business, online, Viomi exports. Within was and offline the XX% was was approximately

due primarily shifts together air of and and the Gross Within and on sales shifts margins business total prices in to The large profit second the quarter the increased and more of quarter to quarter-over-quarter margin of in product increase compared gross the to stabilization gross basis. in the to and across conditioning of decrease XX.X% the product together million, towards for The mix, XX.X% by X.X% the XXXX. XX.X% shifts Suning was for water gross the in gross with primarily contributor in was third in due sweeper by then a XX and purifiers was Youpin JD year-over-year and structural positive margin selling pilot mix was [indiscernible] and Tmall. RMBXXX.X our with preparation systems largest business XX% due XXXX, Viomi product the industry-wide online products. year-over-year with especially robots company's margin over branded just one-third overall Double for the over just our followed including revenues average business the online contribution introduction purifier higher to from festival, margin channels, part a in water retail prices lines, of Xiomi's launch with

from gross XXXX have Gross profit in been the year. apart trends overall, by the other in of purifier product demonstrating a XX% on as compared have increased the and categories individual third excluding In been actually quarter. in the stable second-half ASP fact last to uplift year-over-year water across basis quite business first-half, water the over purifier margins further dynamic

considering be mitigated the due while our In partially terms XX major as this such festivals overall Double sales the quarter, gross outlook the impact and should gross Double for negative be in fourth our of margin [indiscernible], fourth somewhat on the XX margin compared to quarter, portfolio streamlining our we dividend expect be quarter although to gross to do pronounced slightly quarter, should initiatives. third fourth the street the lower margins optimization quarter. than the second overall as and Hence, not product as

categories overall As our SKUs, margin from year the gross expenses lower million, noticeable ahead out share Total to business, XX% to experience a more and expenses to XX.X% XX.X% of G&A expenses RMBXX.X increased products In RMBXX.X we increased the of focus million. result our to share contributions based based expect XXXX. degree XX.X% during by product decreased together in by the revenues XXXX. marketing expenses our by to XX.X% as compared a to on from million, uplift growth primarily an of RMBXXX.X, of expenses. in RMBXXX.X margin to expenses with due as we and generating operating do theme, increasing revenue due margin compensation and continue greater higher as premiumization to phase and the as we efforts percentage to for a by an XX.X% compensation increase primarily R&D of third increased Total Selling last discussed operating quarter. increased expenses detail quarter to

Excluding a XX.X%, shareholders million, XX.X% ordinary ratio and efficiencies. period as of income The of company decline in operating net attributable percentage total the share compared due shareholders scales expenses, predominantly was the the attributable RMBXX.X operating impact million. company for RMBXX.X of the year. income ordinary expense to as based to to economies compensation to was was non-GAAP greater of Net of of and revenues was same expenses last

Additionally, our balance remained sheet healthy.

XX, of and we cash short-term of RMBXX.X short-term XXXX, equivalents around million. of million, September cash As cash deposits investments had restricted of RMBXXX.X million, RMBXXX.X and

turn Now our to outlook. let's

fourth year-over-year RMBX.X between X.X% of representing and be to billion the billion, net growth a quarter revenues approximately XX.X%. of we For currently to XXXX, expect RMBX.X

and subject business revenues the XX.X% year-over-year XX.X%. a above which of to year cautiously conclusion, conditions are XXXX, For of net company's to and significant current the and coming year representing we growth of is full attractive and market approximately RMBX.XX and and between industry and billion that on optimistic conditions are based to expect the us. we preliminary based RMBX.XX currently current billion, market customer estimates trends, current opportunities will present on reflects outlook In for be change. operating all demand, The

focus sales will gains. new launches, channels core share Our topline expansion delivering on through and remain market product robust growth

uplift our margin we positive of forward, more our importantly, and turned That business gross our have trend, in shifts mix. corner expect and prepared meaningful remarks. margin in going addition a of to as see part In now we now believe terms gross product and increasingly concludes

the will We go now ahead. Operator, call open please for Q&A.


Thank you.

begin will The Stanley. of from Fan [Operator Instructions] Please now first go today the We comes Morgan ahead. Hanli question-and-answer question session.

Hanli Fan

Ms. is you. the and Hi. two and Chen This Thanks Jiang Morgan Thank from Mr. for Cecilia. Hanli I briefing. have Stanley. questions. Ms.

channel particularly and channel by first channel business your The recent question post-COVID-XX. is so on some update, online offline

channel, in as growth kind recent pace, So also for of the some what's of recovery your offline for channel we months? And you see can competitors, online the see can some slowdown post-COVID-XX.

net and few you you but for first do last channel kind want margin. projection for expansion, I would in just post-COVID? online of to your like know is numerical my that, year more So margin I Mr. how want And my observe topline just of sales next about example any into Jiang growth by like for also now, for some dig your us kind for also, next your now. Because to gross the mentioned And outlook. that's the question mentioned outlook coming question. So months second year

margin, how line questions. as would So margin? affect margin, for bottom expenses management. as my gross the your those well So Thanks would two net are your

Shun Jiang

Hanli. I'll two Thanks, those questions. take

on First channel recovery trends sales call has as discussed outlook, sales recovery question healthy. so and quite during just and been now the in the general earnings

new the product and year-over-year launches, activity a would channel XX% in seen sales You as overall consumer pickup we've have well of mainly on growth, recovery. back nearly reported as industry-wide

by may couple terms in channel in retailers quite traffic which seen of the robust structural online terms of earnings have seen in breakdown, weeks. in trends, last major we e-commerce not So, of major results the overall have channel you changes

channel for still ahead, sales as year online us for well so positive core feedback a year, as the channels this well as Our as channels. very trends, from online remain key the

times So points sales. again, the in also our of is stabilized first-half we channel our performance this of have towards definitely difficult once offline year. offline the And the efforts reinitiated since growing

now, franchise we just experience our stores for as on historically also, more focused presence. So discussed offline have Viomi standalone

the retailers, our e-commerce have to and such relation sales to Friendship, And as increase cooperation discussions we're channels, continue overall recognition, of we such outlets the greatly OXO major increase initiated particularly as of to additional in brand presence As to we offline our Gome with points and as plans as many Suning. the Hunan JD in Tmall. leaders, partnerships with of continuing [ph] retail also well through and

terms double the other than But of the franchise so. of sales opportunistically in as offline opens I of next growth continue with So as points or retailers of sales standalone offline point leaders. we'll our to stores. our stores, well more these partnerships potentially as retail the will OXO think to most year as our look optimize be could We additional well over additional structure,

question operating down the on kind of very as Maybe Second is a a outlook few and How's a that the I'll XXXX basis? into and margin for trends one. gross, both break just parts. good as well net

on growth of outlook. our Firstly, kind topline

very perspective, called outlook we perspectives. topline from so remain base generally, a positive is XXXX several on obviously from effect. So One low

everyone was as the of materially by impacted the of first obviously, XXXX, especially quarter So, the COVID-XX. knows, effects first-half

Assuming which effect to around, we a basis still remain base a as there effect. the are result do low of in on expect the situation China this rebound obviously year-on-year experience stable, uncertainties

launches. product new Secondly,

a So branded in since pillars water important products, towards of as new various significant appliances will middle Viomi push discussed, and sweeper small we this believe purifiers, categories then growth particularly the robots. very we form product made XXXX, two year, have the that

well given cleanliness we as towards potential and very helm, So significantly large consumer that with within particularly already quite in new own this trends as leveraging together in to which R&D relationship is theme. our upon growing attractive presence these our increase through have presence Xiaomi, categories two new a we these significant our noted investments existing our believe personnel there markets, do hires, with

of water So, first water detail generation year. in high purifier That we in the sub bit brand of purifiers, purifiers September. pure water and large Tianjin, more series flux, a products initially subsequently, a osmosis series recently product its reverse our next called little launched Super for end this we introduced of double middle water

products So, fourth more year-over-year in in this than quarter of revenues year a on quarter the doubled basis. third branded Viomi doubled the from nearly these and

Several own dust of business. navigated Viomi-branded very expedited good called as products So it's Alpha, robot launches. include the automatic a new to initial the as we've laser these sweeper individual robot the collecting and disposal Similarly, navigated our other sweeper several reception development well sweeper robots. of

our sweeper robots, as increased So, on quarter-on-quarter basis. sales of have multiple-fold year-over-year Viomi-branded again, as basis, a well

line So in these well-received, general products industry been have trends. with extremely

and So, margin, portfolio overall products their drive which importantly, gross our our our healthy these over gross very I'll optimization theme. overall overall just increases I forward uplift premiumization overall think And finish third time. blended and products above point, entail is this one going kinds as revenue the of margin also on to contribution margins should and

the been differentiated reducing more margin SKUs encompass earlier much lower portfolio, XG core upgrade our and year, product we've This of within our the volume middle within based product framework. lower efforts our exposure will this the ASP, development lines. of devoting our very focusing innovative product towards So and comprehensive IoT towards our of efforts more eliminating since or many

large of as more content expect launched we as XXXX. other as goods new toward well washing innovative entertainment and these now, as you screen the kind focused efforts of white as applications recently refrigerator, progress a two products kitchen well should of as machines. been discussed of devoting next experience enhance models as we And lot as generation through premium to and So, continue well we've XXFace just partnerships, more

is growth. billion, total revenues XXXX So for to year-over-year RMBX guided to we this close around end, XX% which

we’ll still as So course, can taking as on not you guidance although, experience levels, clarity positive of XXXX, considerations, growth performance. XXXX to think we we streamlining to have granular gross margin product and premiumization talking think I gross noticeable next But year's shifts very early similar product do we to in about to proceed expect compared into about guided a historically, give greater. mix more year-over-year more at it's this these our we've more degree execute that least a stage experience strategy. proceed a on to of And think I while on as if and expect as margin basis, we expansion

basis think XXX gross So our around in to third second we the I the quarter. by margins quarter increased points

close this think we a XXXX. would I and to is of very target for initial much to which committed XX%, continuing, be our trend that gross around margins

more of also to and sales net invest I is continue obviously we impact should But expect as of around well, margin and certain the R&D. this a that bit think this in year. COVID-XX on uplift, course, given I but degree the margins net marketing year little to uncertainty you industry a think sales of not as compared given personnel, will of only kind

Hanli Fan

so very That's detailed. Thank much. you. Thank you


Next from ahead. go question comes Xudong Chen CICC. of Please

Xudong Chen

And the I And just two second one That's started portfolio is, and the you on what's more share more business your now? overseas about condition mentioned have the two Thank product, key drivers colors question. is question XXXX? give the forecast product you. business. like my And the have the you countries? colors to you for IoT Can market the can you of my go other just questions. export me first

Shun Jiang


first upon the I'll export touch So business.

initial recently includes as business, have that a put sweeper European we well appliances have these small just initial particular, more our been towards Southeast markets quite robot the to as side Eastern Asian strategic towards on selling markets. are categories had initial business. of that emphasis and the more business, we've Our markets The product shown to the the in success, export started good

our markets existing products. of existing consist portion Viomi-branded of robot export our So sweeper a large

we hired just focus a have on new business. export forward, to team recently Going this

export leverage markets our expand SKUs small to look well, robots, business, range. our increase also the our we for the success for particularly will sweeper and think upon as to export appliances in I for categories this continue product

as products well good perhaps some as other as purifiers, well. water white into example, For

question So products. on your IoT second

is how and this at portfolio think we strategy. look our I IoT IoT So

and this formed it So brand concept, differentiation. one product and of very XG important IoT part our

several past strategic to IoT, the XG we've well algorithms. as implementing IoT been as years, Over in products, of framework terms very devoted protocols, much

would @ IoT part over the several products effects upon launched peers. portfolio Home, IoT These and You and a also within [Indiscernible] quite that months. products, end customers course, launched synergies feel interconnected the connectivity from our and a enhancing are related of are our brand and have able of overall we've XG our important XG of identity, and differentiate IoT which number newly Home platform, comprehensive very product build with past how IoT IoT and scenario. seen, network products home enabled also our the We creating existing to of consumers @ such vision concept consumers our for brand products is and

rapidly then and platform, So getting to and head identity platform, build entrench our a adapt trends and able we then consumer and really we brand being start and will upon will to demands. able upon this leveraging to being strengthen continue changing a then lifestyle such to

Xiaoping Chen

next So, or penetration will the IoT into year consist over so. our two phases key of XG

the of end this year product to year. gradually close across technology next one, particular all of portfolio And screen for interactive into then next throughout technology refrigerator by smart large number will implement will transition in first-half across products, XG achieve portfolio the our generation these all our next entire So to in XG the IoT year. full product screen, our the and based of IoT, screen penetration

Xudong Chen

you. Okay. Thank

Shun Jiang

you. Thank


from question comes Wei XXResearch. go next Joy of ahead. Please The

Joy Wei

questions. a on my I XG taking strategy. IoT for follow-up Thanks your have

IoT You have been putting a comprehensive pretty portfolio. XG out

Will growth a XXXX? of in in service CapEx, is So how Internet made terms in management spending, we market IoT order on Secondly, this level Thank position can seen of tipping marketing elaborate opportunity, monetization internet lot achieve a to of lien needed like more have companies? your with point that XG as cetera? partnership you. management see so R&D, et XG big And you what market the do the in project the investment the IoT? of

Shun Jiang

these Thanks. supplements. I'll Chen Mr. may initially have take and two questions, some

in XG currently So believe tipping terms we're the the be will first question we phase. And still ongoing an the point the tipping the in of point, on transformation so industry IoT, process. early adopter of

However, extremely market expect and tip we quickly. do attention to consumer

as example think vehicle especially, have been development devoting of this why, well as firmly a first we market. efforts And this I is recently IoT towards ourselves what very and seen is a in in additional innovation good the this establishing product in as electric XG within we've mover industry. marketing

the can of brand which you a automobile as why we’ve generation subset And R&D think a moment, defined over is the will IoT will been near-term, think, of positioning penetration making trend to technologies as time. think industry these is subset vehicles of electric similar appliances contribution home how as well investment. that well kinds increase And tipping are XG when as the a overall the of very So, such the at as the the overall point next industry. in be, of we will I it be

On next of supplement So couple a question. aspect. Mr. points will Chen on this

Xiaoping Chen

Yep, sir.

added points points. your question a Just tipping Chen on supplement first the on three Mr.

you the as large three very companies, the base rapidly especially know China in the companies rolling all telecom one, station. may out of telecom number So much

So a coverage XG IoT definitely rapid is at expanding rate.

once So more. very mainstream, the and consumers course, the processes coverage becomes adopt will of

Second adaptation product and the product is, of course, base. the

of be experience generation offer of accelerate we environment. XG enablers will for I consumers XXFace home smart need the products, better adaptation important our the well as technology IoT TV, with speed content these course, able interactive the opposed experience, experience be as technologies, of technology, XG on think due very on rollout, capitalize XG able further will much be screen switch why this of you that products adoption. home the best also, pad the offer become And to is our then and in a is our course, previous and to pad, IoT as to users these screen able refrigerator, which to home IoT these recently launched to and leverage to content to provide to following the that able believe So to from or third, more based which course will

that On on so are opportunities these So the question question. believe IoT some products, monetization there we first was many of your second of monetization. for

So well capabilities at penetration, of products early the to experience consumer on our especially of we well increasing the as adopters, very our on installed experience overall the the get consumer moment, base buying, the products. as focused enhancing and as much as are

expanded IoT So over quarters, would our available you on significantly of seen have couple enabled that's XG past refrigerator. have products, upon XXFace why, especially the as we the the that is content

potential it example, various an avenues or or monetization with immediately actionable focus as So screen media FMCG of small And the for with going products from, party have a of And or for the for a take think platforms come suppliers. advertiser purchases example, advertising on partnerships take advertising the well. rate of follows usage even GMV able acting from e-commerce some to or for of as provide our that partnerships this screen such home rates, well example, data advertising, as of forward, And such through center or on active content take consumption at these the upon their through constant of transactions to for environment. course, rate the recommendations, could or providers, even subscriptions third we are opportunities from as these accumulated in consumers. terms also a

on is a user experience we So base I is once well base. continue content believe installed devote critical we'll of enhancing and the applications, part as the our And strengthening building at installed actually to the the while our monetization then in that the as out enhancing short-term, most resources part. mass, the think

Joy Wei

you. Thank


Yu Please Vincent ahead. from & of Company. comes go question Next Needham

Vincent Yu

the Thank have three I you, good Congrats questions. management. quarter. on

on the export on business export any to go comments its also promotion is in Will we pricing the on these cushion, quarter. on there And our about our product And share And be And have impact product pricing one for new any the attain Can question on for day sales, premium any question Double any results the figure markets? received? for trend product Can The XX think is And XX on we sales? for business? expectations preliminary Second comments the sales. the our is third any margin do first share [indiscernible] Double revenue line. versus released [indiscernible] were we fourth gross XXXX? the how did contribution domestic the rates? gross newly we they sales?

ask there little I can Thanks. a more in it And to if about? get want bit, mentioned looking you XXXX is category to most and excited we're think details. we particular product I any

Shun Jiang

take I'll questions. you. those Thank

extremely first one of of to as the our which of quarter, only course, overall moment, the XX% export been growing also growing quickly. also in third not our X% revenues, But So around that overall regional extremely represented been Viomi-branded the has particular is expand it's categories robots. business X% export will we the mainly business our appliances, discussed coverage, around year. on focused next has At as going to looking But our discussed, into we're also quickly. on product smaller in market, sweeper the but

for business be faster we our So, next of the probably that than and revenues for year. XX% close that year, business will export grow likely at the domestic overall believe next to stage will current the

it's products. sweeper of robot think In pricing, terms I predominantly currently,

or robot a difference no to as the as range as have the There for products end well mass business. mid in the the as material terms export of ASPs of versus well. sweeper is well significant domestic for We market high

as kind So, of some performance Double XX categories. sales, second as key of your the for product well the question on

towards SKU So our as in the our reflected shift on economy the quality towards of the the quarter, and in and gradual part latter greater and made which undergoing guidance. we discussed optimization quarter third during call, fourth is premiumization phase, fourth of particular emphasis quarter, a product growth

say So of very on would focused identified much newly our successful I still growth categories. and some Double was core, festival, sales the XX

as performing during some various water of growth this So key sales products well or some our and Double discussed has the the were as purifiers breakout newly second-half best of which focused such in in XX some products, experienced cases double sweeper of the robots, and products year, launched as multifold festival. the

So, margins, the the affects SKU second lower we've quarters the year, festival. our given while of than quarter definitely higher be lower a the do very margins, I generally this the how slightly and currently in overall fourth category in than than gross of fourth so much already expect terms quarter and should margins, quarter, premiumization -- overall higher well, due discussed But this our sales seasonally very as think result to initiatives. we third be product to second much streamlining as

are not year on growth, So robots gross drive own these kinds drive these of purifiers that our certain also XXFace degree discussed some purifiers, differentiated northwards expansion heading think of main water branded such discussed, quite our refrigerators and categories, topline also a shifts as machine this next categories about, products, robots, lastly, launched washing won't example, we obviously compared XX% example, then as that repeat. as plus October. to innovative Viomi-branded constant in and in with washer rollouts and year. margin they probably continue new do water will more given the the we of into in well end only for categories and launch And positive in product as excited sale margins, in well bit part more we've to the mid the have as sweeper XXXX, dryer in this terms sweeper I for product our our our of together but to of high these But initiatives we of trends, expect a new event core

Vincent Yu

Thank much. you very


further There questions. are no

back turn remarks. Li the call closing over to like I'd to for Cecilia any Now,

Cecilia Li

us joining Thank you for once today. again

Investor Piacente good contact If Relations Have our a the you Relations department Investor all. contact on to further our Group, or our questions, one. website free consultant. Thank you have please information The feel through

Shun Jiang

Thank you, everyone.

Xiaoping Chen

Thank you.


the concludes call. This conference

day. a line. disconnect now may and nice You you have your Thank