RLX Technology Inc.

Hello ladies and gentlemen, thank you for standing by for RLX Technology Inc's first quarter 2026 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 Irish Technology's first quarter 2026 Earnings Conference call. The company's financial and operational results were released through PIO Newswire services earlier today and have been made available online. You can also view the earnings press release by visiting our IR website at at il.relastech.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 Securities Litigation Reform Act of 1995. These statements usually 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 missed histories and uncertainties that could cause actual results to differ materially from those projected or anticipated, many of which are factors beyond our control. The companies, its affiliates, advisors, and representatives do not undertake any obligation to update this form of 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 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 only. In case of any discrepancy, management statements in the original language will prevail. I will now turn the call over to Miss Case 1. Please go ahead.

Thank you, Sam, and thank you all for joining today's call. We are off to a robust start in 2026, supported by a highly scalable global ecosystem and our ability to capture rising market opportunities. We achieved strong revenue growth increasing by 96.2% year over year and 38.9% quarter over quarter as we continue to accelerate our international expansion and deepen our global presence. Our international business sustains its rapid organic growth, while our mainland China business demonstrated resilience, and stability. We further refined our user-first approach through highly localized strategies and engagement with trusted regional business partners across the value chain to ensure superior product market fit. We also integrated our R&D manufacturing and a commercial operation into our cutting edge hub, which we call Nexus, further enhancing our core capabilities and competitive edge. These initiatives, along with our growing operational agility, enable us to quickly align with evolving market dynamics and seamlessly meet global demand. further strengthening our presence across key international markets. Let me now walk you through our recent business update in more detail. The global regulatory landscape around tobacco and smokeless alternatives continues to evolve. The United Kingdom's landmark Tobacco and Waste Act which officially became law in April, 2026. It's a notable example reflecting a growing global trend toward phasing out combustibles while maintaining regulated pathways for harm reduction alternatives. Under this rule, anyone born after 2009 will never be legally permitted to purchase combustible cigarettes. Importantly, the ban applies only to cigarettes and exempts regulated harm reduction alternatives such as vapes. In effect, the UK is gradually eliminating the future consumer base for cigarettes while preserving the existing regulatory framework for our category. We believe that this will now be an isolated development. Public health improvements are increasingly being pursued worldwide by restricting tobacco while regulating harm reduction products. For companies like RxTechnology, with strong compliance capabilities, best-in-class product quality, and a proactive regulatory approach, this represents a welcome structural tailwind rather than a headwind. A well-regulated market rewards scale, compliance, and innovation, areas where we already lead. As regulatory uncertainty diminish, the competitive landscape is expected to become more defined, and our differentiated position may become even more valuable. Moving on to our international expansion, Europe maintains a cornerstone of our global strategy, given its increasingly mature regulatory environment and strong demand for high-quality alternatives. Our May 2025 strategic investment in a European company has delivered value that extends well beyond the financial strengthening our capability in navigating local market dynamics. Our successful integration and operational experience have given us the confidence to evaluate further expansion across the continent. Our expansion in Europe is driven by a dual-engine strategy that plays equal importance on strategic M&A and organic growth. While we are optimistic about Europeans' potential, we maintain a highly selective approach to strategic investments, prioritizing long-term synergy rather than an immediate scale. We are focused on building a strong foundation through product and operational excellence, developing products tailored to European consumer preference and the regulatory standards, while deepening our distribution partnerships and expanding our presence across key retail channels. At the same time, we are crafting our reputation as a premium reliable brand that resonates with local lifestyle and offers innovation that users can trust, ensuring that our presence is both impactful and long-lasting. Overall, we believe Europe is a high-value, high-value market. We're not seeking rapid entry, but rather building a durable presence with care and discipline. On the operational side, I'm pleased to announce that our integrated smart manufacturing facility, Nexus, is now fully operational. This is more than a manufacturing upgrade. Expanding our self-manufacturing capability and capacity and bringing R&D, manufacturing, and commercial operations under one roof allows us to pursue complex high precision quality standards and long-term strategic directions. Our self-manufacturing capability also serves as a closed-loop intellectual property fortress. Our proprietary technologies will maintain fully within our control. and the advantage that it's difficult for competitors to replicate. In addition, this integrated hub has materially improved our operational efficiency, enabling faster decision making and a more agile response to global market shifts. To sum up, we continue to integrate regulatory expertise and international market intelligence to build more resilient, more scalable global platforms. Against these backdrops, we remain focused on driving innovation and user-centric product development while further enhancing our distribution and retail capabilities and accelerating our expansion in Europe. And spontaneously defending and elevating our leading market share in Asia. Looking ahead, with a quality-led growth strategy and a strong commitment to innovation and compliance, we will continue to deliver sustainable long-term value for our global stakeholders. Now I will hand the call over to Chao to review our financial results in detail.