RLX Technology Inc.

Hello, ladies and gentlemen. Thank you for standing by for RLX Technology, Inc.' 's second quarter 2021 earnings conference call. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. Today's conference is being recorded and is expected to last for about 40 minutes. I will now turn the call over to your host, Mr. Sam Tsang, head of investor relations of the company. Please go ahead, Sam.

Thank you very much. Hello, everyone, and welcome to RRX Technologies' second quarter 2021 earnings conference call. The company's financial and operational results were released through new PR newswire services earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at iout.relaxedtech.com. Participants on today's call will include our co-founder, Chairperson of the Board of Directors, and Chief Executive Officer, Ms. Kate Wang, Chief Financial Officer, Mr. Chao Lu, and myself, Sam Tsang, Head of Investor Relations. Before we continue, Please note that today's discussion will contain four looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements typically contains words such as may, will, expect, targets, estimate, attempt, belief, potential, continued, or other similar expressions. Forward-looking statements involve inherent risks and uncertainties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, many of which factors are beyond our control. The company, its affiliates, advisors, representatives, and underwriters do not undertake any obligation to update this forward-looking information, except as required under the applicable law. Please note that RRX Technologies' earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. Our LX Technologies press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. I will now turn the call over to Ms. Kate Wen. Please go ahead.

Thank you, Sam. Hello, everyone. Thank you for joining our earnings conference call today. As most of you are aware, two major regulatory developments took place around the second quarter of 2021. The first was March 22nd, when the authorities made an announcement seeking public comment on a proposal to revise relevant regulations to strengthen the separation of e-cigarettes and solve the quality and safety risks and force advertising problems, among others. We believe that such regulatory framework is both necessary and beneficial. for the long-term healthy development of the industry. It serves to eliminate the risks associated with uncertainties regarding the legitimacy of this product category. It can also help avoid incidents and setbacks that have occurred in some other overseas markets. and ensure the long-term vitality of the industry in China. As of today, no details on the regulatory framework have been released yet, and we will closely monitor and follow up on any further announcements. The second development took place in May and June, when the Chinese National Health Commission published the China report on health hazards of smoking 2020, mentioning about vaping products. The media and the public and some adult smokers and adult users of vaping products were confused by certain out-of-contact historical information in the report about the harm reduction benefits of using vaping products. Inactive publicity has sustained since the release of the report. We have been working closely on the relevant scientific research in consumer communication to provide better information and unbiased knowledge on related topics. RELAX was founded to serve adult smokers with state-of-the-art products in an unwavering pursuit of scientific advances to deliver harm reduction benefits to our users. To that end, in the second quarter, we continued devoting resources to key operational areas, including science research and development, product innovation, quality assurance and control, and brand building. Moreover, as a public company, we have further strengthened our operational and financial internal controls to better protect our shareholders' value. In the second quarter, we maintained our momentum in attracting and developing high caliber talent and grew our workforce by 27%. These highly skilled individuals joined us from leading companies across FMCG, technology, and pharmaceutical industries. They're pleased to see like-minded Thailand joining our course. And together, we have achieved a satisfactory net revenue growth of 6% from 2.4 billion RMB in the first quarter to 2.54 billion RMB in the second quarter. With that, I will now turn the call over to our CFO, Lu Chao. He will elaborate further on some initiatives taken during the past quarter and go over our operational and financial results in more detail. Lu Chao, please go ahead.