Zoey Zhao's questions to RLX Technology Inc (RLX) leadership • Q1 2025
Question
Zoey Zhao from CICC questioned the competitive landscape in Europe during the shift to new product categories, comparing RLX to competitors like BAT and Air Bar, and also asked about the domestic business outlook in China, including potential regulatory changes.
Answer
Chao Lu, Chief Financial Officer, asserted that RLX is well-positioned in Europe due to its comprehensive product portfolio, agile supply chain, and singular focus on e-vapor, which allows for faster market response than traditional tobacco firms. Regarding Mainland China, he noted the regulatory environment has been stable since 2022, but growth in the legal market is constrained by illicit products. He suggested future growth depends on the approval of more competitive compliant products.