Hello, ladies and gentlemen, thank you for standing by for Viomi Technology Co., Ltd. earnings conference call for the second half and full year of 2025. 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, the IR Director of the company. Please go ahead, Claire. Hello everyone, and welcome to Viomi Technology Co., Ltd.'s earnings conference call for the second half and the full year of 2025. 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.com. Participating in 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 investment department. 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 U.S. Private Securities Litigation Reform Act of 1995. 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 filed with 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 the audited non-GAAP measure to an audited most directly comparable GAAP measure. I will 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. [Non-English content] Thank you, Mr. 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 the second half and full year of 2025. In the second half of 2025, amid the phasing down of the national subsidies scheme for home appliance trade-ins and the company's strategic investments in overseas markets 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 a 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 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, we are establishing ourselves as the world-leading water technology company. In the North American market, 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, our products ranked nineteenth in the water purifier category and fourth in under- sink RO tankless segment. Our premium flagship product, the Master 1 Mineral Water Purifier, further enriched our product portfolio. In the Southeast Asia market, we continue to deepen our strategic cooperation with online-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 actresses and singers from different countries to serve as brand ambassadors. They participate 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 water to partners in North America and around the world. In manufacturing and R&D, we kept boosting our competitive edge. 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. In August of the same year, we authorized a new share repurchase program of $20 million. By the end of 2025, we had repurchased a total of 1.03 million ADS, amounting to approximately $2.5 million. In our recently issued and published earnings release, we declared another special dividend of $0.06 per share, with an aggregate 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. 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 differentiation 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 leveraging the scale effects of water purifier gigafactory to elevate both scale and efficiency. 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. Sam Yang, to discuss our financial performance. Thank you. Thank you, Mr. Chen and Claire. Thank you to everyone for joining us today. Let's take a look at our unaudited financial results for the second half of 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 the home water systems. Now let's look at the performance across three categories. Revenues from home water system 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 additional service fees for water purifiers. 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 Viomi brand product in this category. Gross profit were CNY 223.8 million compared to CNY 289.5 million for the same period of 2024. 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 at 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 increased selling and marketing expenses, and a partial 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. 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 [inaudible]. Net income attributable to company was CNY 21.2 million and the non-GAAP net income was CNY 28.2 million. Additionally, our balance sheet remained healthy. As of December 1... As of December 31, 2025, the company had cash and cash equivalent of CNY 806.6 million. Restricted cash of CNY 164.4 million. Short-term deposits of CNY 258 million and short-term investment of CNY 82.6 million. Next. Let's briefly discuss key financial results and audit 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. 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 615 million compared to CNY 548.7 million for 2024. 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. Net income attributable to ordinary shareholders of the company was CNY 141.6 million, and the non-GAAP net income attributable to all the shareholders of the company was CNY 155.7 million. Thank you. Yeah, 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. Operator, please go ahead. 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. Okay. Good evening, Viomi 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, the Viomi, in 2025? Additionally, what are the key investment priorities and initiatives for Viomi's brand building this year? Thank you. [Non-English content] To answer your question. In 2025, our brand revenue was primarily from domestic online channels. We have ranked as 10th place among the annual brands listed on JD. We also ranked 19th place in sales on Amazon U.S., 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 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 U.S. and the world. Our redefined vision of better water. Thank you. Thanks to Sam and Claire. It's very clear. Here moving to my second question on overseas expansion. Viomi has successfully entered the U.S. and the Malaysia markets. What are the differences in your market strategies between these two regions? And also could you outline the overseas expansion goals for 2026? Thank you. [Non-English content] To answer your question, we have built local teams for both United States and Malaysia. Especially in 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 U.S. offline markets in the second quarter. This will cover not only the under-sink products, but also the whole-house filtration systems. In Malaysia, our focus is offline with countertop units as the main product format, adding features like ice and cold water that match the local drinking habits. Next, we'll 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. 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, Sam Yang 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 or 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. [Non-English content] OK, to translate the answers. There are three main paths. First is expand 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 sales still makes up a relatively small part of the business. So 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 revenues from our own branded products will be a long term driver of the margin improvement. As more people are using Viomi water purifier globally, the consumable revenues will start kicking about one to two years after the equipment sales, and 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. For the global expansion. Thank you. Yes, very clear. Thank you very much for your time and detailed answers. I have no further questions. Thank you, Jinyu. [Non-English content] Thank you. We'll now take the next question. This is from Shi Jingxing from CMS. Please go ahead. [Non-English content] 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 the second half of 2025 the negative impact has caused the revenue decline? Can you forecast the future impact and offer some guidance? We recently noticed the [inaudible] 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. [Non-English content] OK, I'll quickly translate the 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 the first half of 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 if consumer spending suffers. 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 might see some brands still offering 15% off on online commerce platforms while others don't. We didn't offer that percentage off. We have faith in our product competitiveness. To answer your questions about the cooperation with the gas companies, we recently reached the cooperation with 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 the country reaching over 50 million household users. Both our products highly rely on the installation service support and the distribution scenarios fit perfectly with under-sink water purifier and the product categories complement each other. This gives us an efficient way to enter lower-tier markets. 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. [Non-English content] [Non-English content] [Non-English content] OK, I'll quickly translate the answer to you. That is a similar question to one of the previous questions. The first one is we will extend our overseas market scale, especially in the United States and Malaysia, and we will use more diversified products to enter more channels, for example, for the United States, we will explore offline channels for the 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. This will be a long-term driven 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 line. As of today, we still 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 countertop products equipped with diversified functions like cooling, ice making, and so on. Thank you. [Non-English content] [Non-English content] [Non-English content] [Non-English content] Thank you. We'll now take the next question. This is from Brian Lantier from Zacks Small Cap Research. Please go ahead. 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 U.S. Just sort of big picture, looking at the impact of the subsidies is significant, obviously in your six-month results. 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%-15% top-line? [Non-English content] [Non-English content] OK, I'll translate the answers to your question. According to our estimation, with the industry's normal growth rate would be at a high single-digit level if without impact of the national subsidy and so on. Well the brand growth rate will be higher than the industry mainly because driven by the enhancement of our brand strength and the expansion of our international market growth. 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 their business performance and 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. Great, thank you, that's all I had. OK, thank you Brian. Thank you, Brian. 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. OK, 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. Thank you. This concludes today's conference call. Thank you for participating and you may now disconnect.