RLX Technology Inc.

Hello, ladies and gentlemen. Thank you for standing by for our LX Technology Inc. third quarter 2025 earnings conference call. At this time, all participants are in a 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 Sung, head of capital markets for the company. Please go ahead, Sam.

Thank you very much. Hello, everyone, and welcome to IH Technologies' third quarter 2025 earnings conference call. The company's financial and operational results were released through PL&S wire services earlier today and have been made available online. You can also view the earnings press release by visiting our IR website at ir.reaxtech.com. Participants on today's call will include our Chief Executive Officer, Ms. Kate Wang, our Chief Financial Officer, Mr. Chao Lu, and me, Sam Tsang, Head of Capital Markets. Before we continue, please note that today's discussion will contain forward-looking information made under the safe harbor provisions of the U.S. Private Security Statistic Reform Act of 1995. These statements typically contain words such as may, will, expect, anticipate, aim, estimate, intent, plan, belief, 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 claim actual results to differ materially from those projected or anticipated, many of which are factors beyond our control. The company, its affiliates, advisors, and representatives Do not undertake any obligation to update this foreign or current information except as required under the applicable law. Please note that RxTechnologies' earnings press release and this conference call will include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. RxTechnologies press release contains a reconciliation of the unaudited non-GAAP financial measures to the unaudited GAAP financial measures. For today's call, management will use English as the main language. They will also provide simultaneous interpretation on the Chinese line. Please note that the Chinese line is in listen-only mode, and Chinese interpretation is for convenience purposes only. In case of any discrepancy, Management statements in the original language will prevail. I will now turn the call over to Ms. Case Wang. Please go ahead.

Thank you, Sam. And thank you all for joining today's call. This quarter, we once again delivered robust results in a challenging global environment. Our net revenues surged 49% year-over-year to 1,129 million RMB with non-GAAP operating profits, reaching 188 million RMB. This performance underscores the strength of our industry-leading portfolio and our excellent execution across international markets. fostered by a gradual recovery in mainland China. It also validates the scalability of our globalization strategy and the outstanding technological innovation that secures our leadership in the EVAPOR sector. Turning to mainland China, the military enforcement strengthens markedly yield positive shifts in market dynamics. For instance, enhanced customer inspections have curtailed illegal returns of exported products, channeling customers back to legitimate brands from non-compliant alternatives, fueling this quarter's modest mainland China revenue recovery. That said, the persistence of an unregulated evapomarket remains a significant headwind, distorting competition and restraining volume recovery. Our revenue from mainland China stands at 320 million RMB this quarter, or approximately 13% of Q2 2021 level, illustrating the scale of ongoing challenges. True market order can only be achieved through consistent enforcement action, particularly against illegal online sales. As a leading compliance player, we continue to advocate for strict enforcement and remain committed to providing adult smokers in China with a superior diversified portfolio of quality tobacco alternatives. We are also advocating for regulatory adjustments around tobacco flavor formulation. This could align public policy with consumer preference helping to foster a more transparent orderly market. Internationally, our strategy continues to gain momentum with 70 to 80% of our revenues now derived from international markets. Amidst various headwinds, including the big puff effect disciplined execution, quality products, and deep legal insights continue to drive success. Our new Asia-Pacific franchise retail model exemplifies this strategic and execution excellence by uniting independent big stores under a cohesive brand to enhance retail execution, amplify visibility, and elevate user experience, we generated meaningful same-store sales growth. Furthermore, our robust R&D capabilities remain a core differentiator in international markets. Enabling rapid innovation and local market adaption. Notably, our recent East Asia product launch set industry benchmarks of these possible EVA products for design excellence, varying category goals, and exceptional demand. Our expansion into adjacent categories with the development of our modern overall product was a strength in our portfolio and pipeline. Unleashing growth potential as we capture demand from previously untapped user segments. Beyond APAC, Europe remains a critical growth market. distinguished by regulatory maturity and involve user base. Our strategic equity investment in a leading European EV firm enhances our market intelligence and positions us to capitalize on future opportunities effectively. In the United Kingdom, where the government implemented a ban on disposable EVA products in June 2025, we demonstrated strong business adaptability. Through our proactive strategy to make great consumers to reusable and sustainable product formats, reinforced by robust retail execution and strategic category management, we not only safeguarded our market position, but also sustained top-line strength amid a sharp industry contraction. In summary, this quarter's results reflect our growing strength, resilience, and leading innovation amid a complex macro environment. We are building more than financial value We are cultivating a global brand with quality and sustainable leadership. Looking forward, we remain confident in our ability to shape the small police industry and deliver lasting value to our stakeholders. Now I will hand it over to Chao for a detailed review of our financial performance.