Yun Guo

Yun Guo asked for more details regarding RLX Technology's channel innovation strategies within its key Asian markets, specifically requesting elaboration on the initiatives.

Answer

Sam Tsang, Head of Capital Markets, explained that channel innovation focuses on transforming independent vape store experiences through a franchise model. This model provides renovation strategies and unified branding, engaging over 450 partners in an East Asia country this year, which has driven significant revenue growth while enhancing brand presence and operational control.

Yun Guo from CITIC inquired about RLX Technology's channel innovation strategies specifically within the FLAG's Asian markets.

Answer

Sam Tsang, Head of Capital Markets, explained that channel innovation focuses on transforming Wavestar experiences through a franchise model. This strategy involves upgrading store enhancements under unified branding, engaging over 450 partners in an East Asia country, and driving significant revenue growth while enhancing brand presence and operational control.

Yun Guo from CITIC Securities Company Limited requested more details about the investment agreement with a European e-vapor company that was entered into during the second quarter of 2025.

Answer

Sam Tsang, Head of Capital Markets, detailed that in March 2025, RLX invested in a leading, compliant European e-vapor company with a 17-year history and a full-suite business model. This entity was consolidated into RLX's financials in June. The acquisition provides RLX with R&D, manufacturing, distribution, and retail capabilities in Europe. Tsang explained that RLX will now operate as a retailer and distribution partner in the region, with its own branded products competing alongside others within the acquired company's channels to gain market insights and expand its footprint.

Yun Guo of CITIC Securities inquired about RLX's perspective on open-system e-cigarettes, the competitiveness of its products in that category, and whether the company has plans to enter the Heat-Not-Burn (HNB) market.

Answer

Sam Tsang, Head of Capital Markets, responded that open-system products are expected to see stable demand growth, particularly in price-sensitive markets. He highlighted the competitiveness of RLX's products like Relx Prime and Relx Spin Mini, which are designed for affordability and convenience. Regarding HNB, Tsang stated that the global e-vapor market is growing faster and that HNB products are typically successful only in developed markets with high purchasing power. Citing e-vapor's appeal to younger adult smokers, he confirmed RLX currently has no plans to enter the HNB market and will continue to focus on its core e-vapor business.

Yun Guo from CITIC Securities asked about the performance of RLX's newly launched products and inquired about the company's future product development plans.

Answer

Sam Tsang, Head of Capital Markets, detailed that in China, the new Daqian and [indiscernible] series are aimed at converting adult smokers from illicit products. Internationally, new products like the RELX Prime open-system and the dual-flavor RELX Pen have received positive feedback. He confirmed the company will continue to innovate to cater to evolving user needs in different segments and markets.

Yun Guo from CITIC Securities inquired about high-growth product categories in overseas markets and the revenue contribution from disposable products. Guo also asked about the company's strategy to capture opportunities in Europe ahead of potential disposable vape bans.

Answer

Sam Tsang, Head of Capital Markets, explained that product popularity varies by region, with high-volume disposables performing well where permitted. In markets anticipating bans, pod and open systems are gaining share. To capitalize on this shift in Europe, RLX plans to leverage its strong brand equity in pod systems to attract users migrating from disposables, viewing the regulatory change as a significant opportunity.