Charlie Chen's questions to RLX Technology (RLX) leadership • Q2 2025
Question
Charlie Chen from China Renaissance Securities asked for more details on the current situation of the domestic China market, aside from regulatory aspects, and inquired about RLX's business performance in China.
Answer
Sam Tsang, Head of Capital Markets, stated that the domestic compliant market is seeing a moderate recovery due to stricter border controls. However, he noted that illegal products still dominate over 80% of the market. RLX is actively collaborating with regulators to combat this. He mentioned that the company's domestic business grew in line with the overall industry, with its market share in the compliant segment remaining strong. The growth was supported by faster adoption of cartridge pods and the successful launch of the Fadeo disposable product in 2024.