Financial Data and Key Metrics Changes - The company's net revenues surged 49% year-over-year to RMB 1,129 million, with non-GAAP operating profits reaching RMB 188 million [5][11] - Gross profit margin expanded by 4 percentage points year-over-year and 3.7 percentage points quarter-over-quarter [12] - Cash flow from operating activities increased to RMB 358 million from RMB 157 million in the same period last year [14] - Total financial assets stood at RMB 15.4 billion, approximately $2.2 billion [14][15] Business Line Data and Key Metrics Changes - Revenue from Mainland China was RMB 320 million, approximately 13% of Q2 2021's level, indicating ongoing challenges in the market [7] - International markets now account for 70-80% of total revenues, reflecting the success of the globalization strategy [7][9] - The Asia-Pacific franchise retail model has driven significant same-store sales growth [8] Market Data and Key Metrics Changes - The Mainland China market is experiencing a modest recovery, but an unregulated latent e-vapor market remains a significant headwind [7] - The U.K. market faced challenges due to a ban on disposable e-vapor products, but the company adapted by migrating consumers to reusable formats [9] Company Strategy and Development Direction - The company is focused on expanding its brand footprint selectively across international markets, contingent on regulatory clarity [19] - R&D initiatives emphasize enhancing core user experiences, particularly in flavor authenticity and device ergonomics [20] - The company aims to transform U.K. operations into a multi-brand retail distribution platform to enhance efficiency [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to shape the smokeless industry and deliver lasting value to stakeholders [9] - The company is optimistic about synergies from its European investment and anticipates scaling this business amid regulatory challenges [19][20] Other Important Information - The company has returned nearly all non-GAAP net profits to shareholders through strategic share repurchases and dividends over the past four years, totaling over $500 million [15] Q&A Session Summary Question: Revenue outlook for 2026 and organic growth in international business - Management committed to expanding selectively across international markets and noted steady international revenue growth driven by robust organic growth in the Asia-Pacific region [19] Question: Areas prioritized in R&D for growth and differentiation - R&D initiatives focus on meaningful product evolution, enhancing user experiences, and optimizing product performance through technological refinements [20] Question: Channel innovation in Asian markets - The company is transforming Wavestar experiences through a franchise model, engaging over 450 partners in East Asia, driving revenue growth and enhancing brand presence [22] Question: Update on U.K. company integration and expansion strategy - The company is in early stages of integration, prioritizing brand equity and operational strength, while leveraging local expertise for channel development [24] Question: Expansion status of modern oral business and promotional strategies - The modern oral segment is the fastest-growing, with plans for phased rollout and prudent near-term revenue expectations as market data is built [27]

Core Insights - RLX Technology Inc. reported strong financial performance in Q3 2025, with net revenues increasing by 49.3% year-over-year to RMB 1.13 billion (US$158.6 million) [3][4] - The company emphasized its international expansion and innovation strategies, which have contributed to growth in key markets, particularly in Asia-Pacific and Europe [3][4] - The financial results reflect a recovery in Mainland China due to enhanced customs enforcement, which has improved the competitive environment for compliant players [3][4] Financial Performance - Net revenues for Q3 2025 were RMB 1,129.3 million (US$158.6 million), up from RMB 756.3 million in Q3 2024, driven by international business growth and recovery in Mainland China [4][11] - Gross profit reached RMB 352.6 million (US$49.5 million) with a gross margin of 31.2%, compared to RMB 206.0 million and 27.2% in the same period last year [5][11] - Non-GAAP income from operations more than doubled to RMB 187.8 million (US$26.4 million) from RMB 84.0 million in Q3 2024 [10][11] Operating Expenses - Operating expenses increased to RMB 259.3 million (US$36.4 million) in Q3 2025 from RMB 216.6 million in Q3 2024, primarily due to higher salaries and shipping costs [6][11] - Selling expenses rose significantly to RMB 132.3 million (US$18.6 million) from RMB 69.0 million, reflecting increased investment in sales and marketing [7][11] - General and administrative expenses decreased to RMB 85.7 million (US$12.0 million) from RMB 123.2 million, mainly due to reduced share-based compensation [8][11] Shareholder Returns - The company announced a cash dividend of US$0.1 per ordinary share, with cumulative returns to shareholders exceeding US$500 million through repurchases and dividends [18][19] - As of September 30, 2025, the company had repurchased 170 million ordinary shares for an aggregate amount of US$330 million [19] Balance Sheet and Cash Flow - As of September 30, 2025, total assets were RMB 17,430.9 million (US$2,448.5 million), with cash and cash equivalents totaling RMB 15,351.1 million (US$2,156.4 million) [15][30] - Net cash generated from operating activities was RMB 357.5 million (US$50.2 million) in Q3 2025 [15][34]

Core Viewpoint - RLX Technology Inc. reported strong financial results for Q2 2025, driven by effective strategy execution and international expansion, amidst a transforming global e-vapor industry [2][3]. Financial Highlights - Net revenues reached RMB 880.0 million (US$ 122.8 million), a 40.3% increase year-over-year and an 8.9% increase sequentially [3][9]. - Gross profit was RMB 242.1 million (US$ 33.8 million), up from RMB 157.9 million in Q2 2024 [3]. - Gross margin improved to 27.5% from 25.2% in the same period last year, attributed to a favorable revenue mix and margin improvements in selected Asian countries [4]. Operating Expenses - Operating expenses totaled RMB 203.1 million (US$ 28.4 million), compared to RMB 191.2 million in Q2 2024, mainly due to increased salaries and welfare expenses [5]. - Selling expenses increased to RMB 84.6 million (US$ 11.8 million) from RMB 62.2 million, driven by higher salaries and branding expenses [6]. - General and administrative expenses decreased to RMB 88.4 million (US$ 12.3 million) from RMB 129.0 million, primarily due to reduced share-based compensation expenses [7]. Income and Earnings - U.S. GAAP income from operations was RMB 39.0 million (US$ 5.4 million), compared to a loss of RMB 33.3 million in Q2 2024 [8]. - Non-GAAP income from operations rose to RMB 116.2 million (US$ 16.2 million) from RMB 46.9 million in the same period last year [9]. - U.S. GAAP net income was RMB 218.5 million (US$ 30.5 million), up from RMB 134.9 million in Q2 2024 [9][10]. Cash Flow and Balance Sheet - As of June 30, 2025, total cash and cash equivalents amounted to RMB 15,524.3 million (US$ 2,167.1 million), down from RMB 16,159.6 million as of March 31, 2025 [12]. - Net cash generated from operating activities was RMB 229.6 million (US$ 32.1 million) during Q2 2025 [12]. Dividend Announcement - The Board of Directors approved a cash dividend of US$ 0.01 per ordinary share and per ADS, payable around September 19, 2025 [13].

Group 1 - RLX Technology Inc. will report its unaudited financial results for Q2 2025 on August 22, 2025, before U.S. markets open [1] - An earnings conference call is scheduled for 8:00 AM ET on August 22, 2025, with dial-in details provided for participants [2] - A live and archived webcast of the conference call will be available on the Company's investor relations website [3] Group 2 - RLX Technology Inc. is recognized as a leading global branded e-vapor company, focusing on developing superior e-vapor products through strong in-house technology and product development capabilities [3]

Core Viewpoint - RLX Technology Inc. reported strong financial results for Q1 2025 despite challenges in the e-vapor industry, driven by international expansion and effective cost management strategies [2][3][10]. Financial Performance - Net revenues reached RMB808.3 million (US$111.4 million) in Q1 2025, a 46.5% increase from RMB551.6 million in Q1 2024, primarily due to international expansion [3][10]. - Gross profit was RMB231.0 million (US$31.8 million) in Q1 2025, up from RMB142.8 million in the same period of 2024 [3]. - Gross margin improved to 28.6% in Q1 2025 from 25.9% in Q1 2024, attributed to a favorable revenue mix and cost optimization initiatives [4]. Operating Expenses - Operating expenses decreased to RMB153.5 million (US$21.2 million) in Q1 2025 from RMB194.4 million in Q1 2024, mainly due to fluctuations in share-based compensation expenses [5]. - Selling expenses increased to RMB59.0 million (US$8.1 million) in Q1 2025 from RMB52.9 million in Q1 2024, driven by higher branding expenses [6]. - General and administrative expenses fell to RMB67.5 million (US$9.3 million) in Q1 2025 from RMB110.0 million in Q1 2024, primarily due to reduced share-based compensation expenses [7]. Income and Profitability - U.S. GAAP income from operations was RMB77.4 million (US$10.7 million) in Q1 2025, compared to a loss of RMB51.6 million in Q1 2024 [8]. - Non-GAAP income from operations surged to RMB105.8 million (US$14.6 million) in Q1 2025 from RMB23.3 million in Q1 2024 [8]. - U.S. GAAP net income was RMB222.7 million (US$30.7 million) in Q1 2025, up from RMB132.6 million in Q1 2024 [9][10]. Cash Flow and Balance Sheet - As of March 31, 2025, the company had cash and cash equivalents totaling RMB16,159.6 million (US$2,226.9 million), an increase from RMB15,870.8 million as of December 31, 2024 [13]. - Net cash generated from operating activities was RMB207.2 million (US$28.5 million) in Q1 2025 [13]. Market Dynamics - The e-vapor industry is facing challenges due to regulatory changes, including bans on disposable products and excise taxes, which are expected to impact the market throughout 2025 [2]. - There is a global trend towards larger-volume e-liquid products, reflecting consumer demand for convenience and cost-effectiveness [2].

Core Viewpoint - RLX Technology Inc. is set to report its unaudited financial results for the first quarter ended March 31, 2025, before the U.S. markets open on May 16, 2025 [1]. Group 1: Earnings Call Details - The earnings conference call is scheduled for 8:00 AM U.S. Eastern Time on May 16, 2025, which corresponds to 8:00 PM Beijing/Hong Kong Time on the same day [2]. - Dial-in details for the earnings conference call include a toll-free number for the United States and specific numbers for international participants, including Hong Kong and Mainland China [2]. - Participants are advised to dial in 10 minutes prior to the scheduled start time and use the provided Participant Code to connect to the call [2]. Group 2: Webcast and Replay Information - A live and archived webcast of the conference call will be available on the Company's investor relations website [3]. - A replay of the conference call will be accessible approximately two hours after the conclusion of the call until May 23, 2025, with specific numbers provided for replay access [3]. Group 3: Company Overview - RLX Technology Inc. is recognized as a leading global branded e-vapor company, utilizing strong in-house technology and product development capabilities to meet the needs of adult smokers [3].