Ling Zhou

Ling Zhou asked for an update on the expansion status of RLX Technology's modern oral business and details on the subsequent promotional strategies planned for this category.

Answer

Sam Tsang, Head of Capital Markets, confirmed that modern oral is the fastest-growing segment in the smokeless industry, with their ultra-thin, fast-absorbing products garnering strong industry validation at InterTabac Germany. He noted that the category rollout will be phased, starting this quarter, with prudent near-term revenue expectations as the company builds market data and consumer adoption.

Ling Zhou from UBS inquired about the current expansion status of RLX Technology's modern oral business and the subsequent promotional strategies planned.

Answer

Sam Tsang, Head of Capital Markets, stated that modern oral is the smokeless industry's fastest-growing segment. He mentioned the launch of ultra-thin, fast-absorbing products at InterTabac Germany, which received strong industry validation. The company plans a phased rollout starting this quarter, with prudent near-term revenue expectations as market data and consumer adoption are built.

Ling Zhou from UE Capital inquired about the total R&D investment to date in Lotus Robotics and the expected future investment levels. She also asked if the company has any plans to capitalize the intelligent driving business separately.

Answer

CEO Feng Qingfeng stated that ADAS technology requires constant, ongoing investment rather than a one-time expense, as the user and data base grows. He confirmed that Lotus will continue to invest in this area as it is a key differentiator and a crucial second revenue stream. Mr. Feng also clarified that the company currently has no plans for a separate capitalization of the Lotus Robotics business.

Ling Zhou from UE Capital inquired about the R&D investment in Lotus Robotics to date and future spending plans. She also asked if the company has any plans to capitalize its intelligent driving business separately.

Answer

CEO Feng Qingfeng explained that ADAS technology requires constant, ongoing investment rather than a one-time expense, driven by a growing user base and data accumulation. He stated that Lotus will continue to prioritize investment in this area, along with intelligent chassis and smart cockpit, as it represents a crucial second revenue stream. Mr. Feng confirmed that the company currently has no plans for a separate capitalization of the intelligent driving business.