RLX Technology Inc.

Hello, ladies and gentlemen. Thank you for standing by for RLX Technology Inc's fourth quarter and fiscal year 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 of the company. Please go ahead, Sam.

Thank you very much. Hello, everyone, and welcome to Iris Technology's fourth quarter and full year 205 earnings conference call. The company's financial and operational results were released through PLC's live services earlier today and have been made available online. You can also view the earnings press release by visiting our IELTS website at ielts.relaxtech.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 Tseng, Head of Capital Markets. 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, anticipate, aim, estimate, intend, plan, 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 GAAP financial measures as well as unaudited non-GAAP financial measures. RX press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. For today's call, management will use English as the main language. We will 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. Kate Wang. Please go ahead.

Thank you, Sam, and thank you all for joining today's call. 2025 was a landmark year for ILX technology. We finished with a very strong fourth quarter, rounding out a highly successful year despite a complex global economy. Our consumer-first strategy and effective execution are keeping us at the absolute front forefront of the global smokeless transition. We are building a lasting global next-generation smokeless tobacco business and entering 2026 with significant momentum on every front. While we are a top-tier global player, our true strength is in our position as an industry trendsetter We do not just react to the market. We are shaping the future of tobacco alternatives. This past year, we captured significant market share by listening closely to our consumers and deeply supporting our distribution and retail partners. Furthermore, we have built a highly scalable system through smart investments in core operations, allowing us to set the pace for the entire industry. Multi-dimensional global expansion. The standout story of 2025 is our global growth. International sales made up 76.5% of our fourth quarter revenue. This is a massive milestone. We are no longer just a single market company. We are truly global enterprise driven by multi-dimensional growth across many diverse regions. In the Asia Pacific region, we are taking a dominant position in multi countries. While our market growth in these areas is strong, Our own growth is significantly higher than the market average. This means we are rapidly winning market share as our products and distribution strategies resonate better with local consumers. Here is an example for East Asia. We start from absolute zero at the beginning of 2025 in these key markets specialty store channel. Our team executed flawlessly over the year. We launched two successful product series tailored for the local market. We also opened 425 franchise stores, captured over 20% of the specialty store channel and increased our channel revenue by over 200%. And we have now distilled this incredible speed and precision into a replicable global blueprint. We plan for the perfect single store economic model in this approach in 2026, which will provide us with a solid foundation to explore potential franchise expansion opportunities in other Asian markets when conditions are favorable. At the same time, we are building a deep competitive mode in Europe. Europe is a high value market with very strict standards. We see this as a massive opportunity. In May 2025, we invested in a leading European firm to secure local distribution. In early 2026, we made European expansion our top strategic priority. We have moved key top-level leaders to focus entirely on Western Europe. We are building major strategic partnerships with local distribution and retail giants and leveraging our world-class supply chain to supply premium products made specifically for European tastes. We are also inferring absolute compliance with strict local regulations. These holistic strategies creating high barriers to enter. We are making it very difficult for others to compete with us in this region. Mainland China, stability and compliance. Turning to our mainland China operations, this business remains strong, steady, and highly resilient. In 2025, our domestic revenue grew by over 20% compared to last year. This growth was boosted by stricter customer's enforcement, which significantly reduced the illegal market. We capitalized on market improvements by enhancing our product options, optimizing our distribution networks, and upgrading our retail operations. As a leader in China's e-vapor industry, it is our duty to support a healthy, compliant market. We do not compromise on quality or safety, and we continue to support regulatory enforcement efforts that protect consumers and leverage the playing field. But the enforcement alone is not enough. We're using our proprietary tech and consumer data to create compliant products that are clearly superior in performance, in satisfaction, and in value. We firmly believe that giving them higher quality, higher value alternatives is the best way to move adult users away from the illicit market. We expect this highly responsible approach to drive steady, healthy growth in our mainland China operation throughout 2026. The AI-empowered FMCG ecosystem. To manage a global business of this size, and complexity. They are going all in AI. This means much more than just upgrading our standard software. We are integrating artificial intelligence directly into our company's core DNA, turning our massive global data into a sharp, competitive advantage. Speed and accuracy are everything for fast-moving consumer goods companies like IOX. AI is helping us rapidly improve everything from product design to complex supply chain management. It allows us to predict consumers' preference and what they will want next, launch new products significantly faster than our peers, and accelerate global delivery. AI also makes our entire team much more efficient. As our sales grow, we are letting AI handle the routine, repetitive work rather than adding headcount, freeing our talented team to focus on solving complex problems and driving strategy. This generates massive operational leverage and keeps our company lean, fast, and highly efficient as we scale globally. Architecture in the future. Looking ahead, IOX is evolving into a true local global company. We are connecting our highly efficient AI-empowered global supply chain directly to deep local retail networks and tailoring our approach to every single market. This creates a highly profitable business model that is almost impossible for our rivals to copy. We entered 2026 with incredible momentum that was rapidly growing global revenue and James fortress like balance sheet was a very healthy $2.2 billion in cash and strong capital management discipline, but not just taking part in the global smokeless transition. through our matchless innovation and strategic execution. We are the ones defining the future. Now I will hand the call over to Chao to review our financial results in detail.