RLX Technology Inc. Q4 FY2025 earnings call

2025 was a landmark year. We had strong fourth quarter. Our consumer-first strategy and effective execution kept us at the forefront of global smokeless transition. International sales were a massive milestone with 76.5% of fourth quarter revenue. In Asia Pacific, we took dominant positions in multiple countries. In mainland China, business remained strong with over 20% growth in 2025. We are going all in AI to integrate into core DNA, using it in product design, supply chain management, etc. We are evolving into a true local global company connecting global supply chain to local retail networks.

Fourth quarter net revenues reached RMB 1.14 billion, up 40.3% year over year. For the full year, total net revenues grew 44% to RMB 3.96 billion. International sales made up 76.5% of our fourth quarter revenue. Our domestic revenue in mainland China grew by over 20% in 2025 compared to last year.

For 2026, overseas business expected more stable and predictable environment, volume and revenue growth to align closely, expect to grow significantly faster than industry average. Europe's outlook positive with industry consolidating around compliance brands and new tax in UK favoring scaled compliance operators. Mainland China operation expected steady, healthy growth. Capital allocation strategy focused on maximizing long-term shareholder value, intending to distribute non-GAAP net profit as dividends and optimize capital structure for further shareholder return.

Q: Hello, management. Thanks for taking my questions. This is Lydia from Citi. Congratulations on the results. I have two questions, and the first is on the overseas business. So you made further progress on the overseas market in the last year. So what would be your expectation for the growth outlook for overseas markets this year, and what would be your strategies? And any new markets that you plan to further enter or under consideration to further grow your market share? And my second question is on the shareholder return. So given your strong cash position, so do you plan to further increase the overall shareholder return or dividend payout?

A: Thank you very much, Lydia, for your questions. So regarding our overseas business, looking ahead to 2026, we see a much more stable and predictable environment for our international business... Regarding your second question about our shareholder return policy, Our capital allocation strategy remains resourcely focused on maximizing long-term shareholder value...

Q: Hi, management. Thank you for taking my questions. And this is Goyen from Citix, and I have two questions. The first one is that could the management provide an update of the operational our performance on the European company message, and what is the business outlook and the guidance for the company in 2026? And the second question is about the domestic market, and looking ahead to 2026, how does Mainland view the recovery for the compliant making products in the mainland China market?

A: Thanks, Guoyuan, for the questions. So the first one is about our investment performance of the European companies invested... Regarding your second question on the mainland China market, in mainland China, we are seeing positive momentum...

Q: Hi, management. This is Zoe from CICC. I have two questions about our overseas markets. First, can you share some information about our investment plan in Europe? And second, in Asia, it seems like the Korean market is seeing a trend towards higher tax lately, and Southeast Asia is going through some process to legalize and regulate the industry. And how is your next plan to respond to this specific market condition?

A: Thank you, Sui, for your questions. The first one is about our investment plan in Europe... Regarding your second question on the Asia regulatory development...

Q: Thank you, management. Congratulations on the strong quarter and for your results. I have two questions. So the first question is, In light of the current macro uncertainty and geopolitical landscape, how does management view this sensitivity of consumer demand across different international markets? Can management provide some sensitivity analysis regarding their impacts on the production costs and the logistics? And the second question is, what would be the current progress of nicotine pouch products in terms of launch in select markets and channels?

A: Thank you, Linh, for your questions. The first one is on the macro headwind globally... Regarding our liquid ink pouch products, we began started rollouts of our modern oral products in Europe in the second half of 2025...