Q2 2026 RLX Technology Inc Earnings Call Transcript
Key Points
- Revenue grew 14.8% year-over-year to RMB1.01 billion, driven by international expansion.
- Gross profit increased 47.8% year-over-year, with gross margin expanding to 35.4%.
- Delivered 11th consecutive quarter of positive non-GAAP operating profit, up 28.8% year-over-year.
- Strategic investments in European distribution enhance route-to-market and shelf space control.
- Strong balance sheet with RMB13.9 billion in capital resources supports disciplined capital allocation and M&A.
- Revenue and gross profit moderated sequentially due to trade inventory normalization after Q1 shipment pull-forward.
- Gross margin expected to settle back to a healthy balanced range as product mix normalizes.
- Consolidation of Western European distribution platform will lower percentage gross margins due to structural mix shift.
- Mainland China sales expected to be broadly flat year-over-year due to conservative regulatory approval timelines.
- US market strategy remains cautious, with no large-scale capital commitment until regulatory clarity improves.
Hello, ladies and gentlemen. Thank you for standing by for RLX Technology Inc.'s Second Quarter 2026 Earnings Conference Call. (Operator Instructions) 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 Technology's second 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 include our Chief Executive Officer, Ms. Kate Wang; our Chief Financial Officer, Mr. Chao Lu; and me, 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
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