Q1 2026 RLX Technology Inc Earnings Call Transcript
Key Points
- RLX Technology Inc (RLX) achieved strong revenue growth, increasing by 96.2% year-over-year and 38.9% quarter-over-quarter.
- The company's international business accounted for over 70% of total net revenues, demonstrating strong global expansion.
- Gross margin expanded to 31.8% in the first quarter, up from 28.6% in the same period last year, due to favorable product mix and supply chain optimization.
- RLX Technology Inc (RLX) has a robust financial position with total financial assets of RMB14.53 billion, providing flexibility for future growth.
- The company's integrated smart manufacturing facility, Nexus, is fully operational, enhancing operational efficiency and competitive edge.
- The sequential decrease in total financial assets from RMB15.73 billion to RMB14.53 billion reflects dividend payments, impacting cash reserves.
- The cancellation of the Chinese export tax rebate may affect production costs, although the long-term impact is expected to be minimal.
- RLX Technology Inc (RLX) faces regulatory uncertainties in the US market, with no current operations there.
- The company remains cautious in its European M&A strategy due to inherent uncertainties in potential opportunities.
- The timing is not optimal for large-scale investment in the HMB heated tobacco category, limiting immediate growth opportunities in new product categories.
(technical difficulty) Today's conference call is being recorded and is expected to last for about 40 minutes. I will now turn the call over to your host, Mr. Sam Tsang, Head of Capital Markets for the company. Please go ahead, Sam.
Thank you very much. Hello, everyone, and welcome to RLX Technologies first quarter 2026 earnings conference call. The company's financial and operational results were released through PR Newswire services earlier today and have been made available online.
You can also view the earnings press release by visiting our IR website at ir.relxtech.com. Participants on today's call will include our Chief Executive Officer; Ms. Kate Wang; our Chief Financial Officer, Mr. Chao Lu; and Sam Tsang, Head of Capital Markets.
Before we continue, please note that today's discussions will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements typically contain words such as may,
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