RLX Technology Inc.

Ladies and gentlemen, thank you for standing by for RLX Technologies' second quarter 2024 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 40 minutes. I will now turn the call over to your host, Mr. Sam Tsang, head of capital markets for the company. Please go ahead, Sam.

Thank you very much. Hello, everyone, and welcome to IRIS Technology's second quarter 2024 earnings conference call. The company's financial 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 IIL section of our website at il.resetstack.com. Participants on today's call will include our Chief Executive Officer, Ms. Kate Huang, our Chief Financial Officer, Mr. Chao Lu, and myself, Sam Tsang, Head of Capital Marketers of the company. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Dedication 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 companies, its affiliates, advisors, and representatives do not undertake any obligation to update this forward-looking information, except as required under the applicable law. Please note that Rx Technologies' earnings press release and this conference call include discussions of unaudited gap financial measures as well as unaudited non-gap financial measures. Our Rx 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, Tim, and thanks to everyone for making time to join our earnings conference call today. I would like to start with a strategic overview. highlighting our key achievements in product innovation and R&D. Following this, our CFO will provide a detailed review of our financial performance. We delivered another solid set of results for the second quarter of 2024 as we deepen our exploration of overseas markets. Given the diverse and evolving regulatory environment across the region we operate in, compliance remains our top priority in our refining our localized strategy. Furthermore, varying income and penetration levels necessitate tailored product offerings across regions. As such, R&D and product design are playing an increasingly vital role in our international expansion. Let me walk you through some details. This quarter, we focused on adapting our product design to comply with various regional e-liquid volume and nicotine level requirements. We also incorporated child lock features that automatically engage after 10 minutes of activity to prevent underage youth. This innovation demonstrating our commitment to youth protection represents a significant step forward in our pursuit of safety and global compliance. In terms of localized product strategies, we continued to research demand trends and economic factors influencing users' consumption habits and tailored our offerings accordingly. The prevailing high inflation environment has prompted many users, both domestically and internationally, to seek products that offer enhanced value for their money. In response, we launched the MegaSize DaQian series in mainland China with 6ml and 10ml parts at a lower price than our Infinity parts. Internationally, we introduced the Relax Pod Real series, which offers up to 1,000 pods per pod, or nearly double the quantity of our standard pods to provide exceptional value. Our keen understanding of the consumer trend also keeps us at the forefront of product innovation. a critical factor driving user engagement in this highly competitive industry. Smart features like Bluetooth for usage tracking and device setting control, as well as screens for monitoring battery and liquidators are becoming standard at every price point. As a leading global eVapor brand, with substantial R&D advantages, we are poised to capitalize on these trends with an exciting pipeline of new products for the rest of the year. This includes an open system device and a modular closed system device at different price points. with various innovative features to meet a broad range of user needs. Notably, the module device allows users to mix and match flavors with batteries and screens to create their own unique waiting area. It also features an interactive screen for checking battery life, monitoring inhalation duration, and adjusting air flow. I'm also pleased to share that our quality and safety laboratory passed the CNAS for conformity assessment expansion and modification assessment. The assessment certified our laboratory's capabilities in 10 testing areas based on International Battery Safety Standard IEC 62133 and North America Electronic Cigarette Safety Standard UL 8139. Enabling our lab to issue authoritative reports for 43 monitoring items including waterproofing, pressure relief safety, and drop strength, based on national and international standards. This milestone achievement will ensure global recognition of our testing reports, facilitating our entry into new markets worldwide. In short, We are successfully navigating the domestic landscape and our international expansion by remaining alert, agile, and responsive. We will continue to invest in R&D to maintain our competitive edge as we grow and expand globally. Before I wrap up, I will I would like to share an ESG update. We have recently published our third ESG report, which highlights our contribution to society, welfare, and sustainability efforts throughout 2023. Our golden shield program to combat the proliferation of counterfeit vaping products was one of the year's major success stories. In 2023, we assessed the authorities in 187 anti-counterfeiting cases, seizing over 16 million counterfeit cartridges and 77,000 devices. The potential increases from 35 cases 49,000 cartridges, and 5,600 devices in 2022. This program not only protects our consumers, but also upholds the integrity of the vaping industry by ensuring that only safe, high-quality products reach the market. We also prioritize public health in our ESG efforts, investing in technological innovation to minimize the impact of e-vapor products on society. Through our 1 plus 4 research chain, we conduct systematic scientific evaluation and research on harm reduction efforts that continue to bear fruit in 2023. We partnered with renowned academic institutions such as Sun Yixian University, Qilu University of Technology, and Chang'an University to publish studies on harm reduction as well as the impact of smoking and vaping on public health and the environment. This research not only contributes to the development of well-informed environmental and health policies but also guides our targeted smoking prevention strategies and supports our goal of providing safer, harm-reducing alternatives to traditional cigarettes. Going forward, we will continue to advance public health initiatives and promote an orderly, well-regulated vaping industry through forward-thinking ESG initiatives that benefit our company, stakeholders, and community alike. In conclusion, our dedication to compliance innovation and sustainability is shaping a promising future for our company. As a trusted evaper brand for adult smokers, we will continue to deliver high-quality, compliant products while capitalizing on diverse growth opportunities on the global stage. I will now turn the call over to our staffer, Chao Lu, for a detailed financial review.