RLX Technology Inc.

Hello, ladies and gentlemen. Thank you for standing by for RLX Technology Inc.' 's third 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 call is being recorded and is expected to last for about 45 minutes. I will now turn the call over to your host, Mr. Sam Sonn. Head of Investor Relations of the company. Please go ahead, Sam.

Thank you very much. Hello, everyone, and welcome to RRX Technologies' third quarter 2021 earnings conference call. The company's financials and operational results were released through PL 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 ir.resetpad.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 Seng, Head of Investor Relations. Before we continue, please note that today's discussions will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements typically contain words such as may, will, expect, target, estimate, intend, believe, potential, continue, 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 other writers do not undertake any obligations to update this forward-looking information, except as required under the applicable law. Please note that RX Technologies earnings press release and these conference calls include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. Our LX 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 Wang. Please go ahead.

Thank you, Sam, and thanks, everyone, for making time to join our conference call today. In the second half of the third quarter, there have been progressive regulatory developments through the global EV space, including in China. Last Friday, November 26, 2021, the State Council announced its decision to amend the detailed implementation regulations of the Tobacco Monopoly Law of the People's Republic of China by adding Rule 65, which states that implementation rules for next-generation tobacco products, including e-cigarettes, shall refer to as relevant rules with respect to cigarettes under the implementation and regulation of the Tobacco Monopoly Law. On Tuesday, November 30, 2021, the State Tobacco Monopoly Administration released a consultation paper entitled Electronic Cigarettes, on National Public Service Platform for Standards Information under the State Administration for Market Regulations, seeking public comment regarding national electronic cigarette product standards. Yesterday, December 2nd, 2021, the State Tobacco Monopoly Administration released a consultation paper entitled Administrative Measures for Electronic Cigarettes, seeking public comment regarding administrative measures on electronic cigarettes, covering various aspects, including production, distribution, and retail sales, import and export, and inspections. We firmly support this amendment to the detailed implementation regulations and have begun making any required changes to fully comply with the new regulations and administrative measures. We believe the amendment will pave the way for long-term and sustainable growth in this sector. We are also aware of meaningful worldwide regulatory developments, which reflects similar trends globally. In the United States, the FDA has made substantial progress reviewing PMTA applications and granted its first EVA product authorization in October. demonstrating its recognition of certain evapour products' harm reduction effects. We closely follow global regulatory developments and view this regulation of evapour products as a global trend. and will grow as countries worldwide recognize UAPA products harm reduction benefits for adult smokers. With these regulatory developments, especially in China, we believe the sector will enter a new era of development, an era marked by enhanced product safety and quality, augmented social responsibilities, and improved electoral property protection. As some of you may be aware, the third quarter was challenging on the commercial front for the entire industry value chain. which have been reflected in our key value chain partners' financial results previously. Misinformation from temperature and negative publicity on the e-vapor sector and evolving COVID-19 restrictions in response to outbreaks in China. which we discussed during the last quarter's earnings call, has a significant adverse impact on the retail sales and product procurement by our branded store since the latter half of the second quarter. As a result, we have record 34% quarter-over-quarter decline in our net revenue. But we believe this revenue decline to be temporary and have a clear plan to achieve long-term healthy growth, which Chao will explain in detail later. Despite those industry headings, we continue to focus on building a solid foundation for sustainable success. In the third quarter, we redoubled our scientific research efforts and continued to attract and recruit top talent to strengthen our sales, supply chain, and R&D capabilities. We are committed to providing adult smokers with innovative harm reduction products of the highest quality. Also at IOX, we also plan and act for the long term. Corporate social responsibility has been an integral part of values since day one. In the third quarter, we unveiled our 2020 to 2021 Corporate Social Responsibility Report, wherein we shared our progress with respect to our CSR initiatives. Some highlights include our industry-leading age verification system, Sunflower System 3.0, with enhanced features to prevent underage use. Our relaxed care community service program to promote rural revitalization and common prosperity. These accomplishments are testament to our dedication to fulfilling our social responsibilities. We strive to positively impact our users, employees, and communities in which we live. With that, I will now turn the call over to our CFO, Chao Lu. He will elaborate further on some of our last quarter's initiatives and go over our operational and financial results in more detail. Charles, please go ahead.