RLX Technology Inc. (NYSE:RLX) Q2 2023 Earnings Call Transcript

Peihang Lyu: Okay. Thank you, management. This is Lyu Peihang from CICC. I have two questions. And the first one is from the perspective of consumer project. And since the GB standard has been implemented for nearly one year. And what are notable changes in the latest consumer project compared to before? And my second question is with regard to flavor and what is the sales proportion of different flavors so far? And which flavor has been paid well at a higher rate of repeat purchase? Thank you.

Sam Tsang: Hi Lyu. So the first one is on the user profile or user demographics. So I mean although some sampling errors may be due to the differences in our user base between now and pre-regulatory era. We have observed several changes in our user profile. For example, the proportion of users age 45 or above is increasing. Additionally, while users are still adapting on new products. We see user — usage per user growing partly due to our product diversification. Still, it has not returned to the pre-regulatory level. And the second question is on the flavors and also the repeat purchase rate. So currently, the [indiscernible] which is the first two flavors we launched remains to be the most popular flavor, likely due to the availability nationwide.

Other flavors, especially those launched recently are still being rolled out progressively nationwide. Overall repeat purchases have been gradually increasing. And additionally, users aged 35 and above have a higher-than-average repeat purchase rates, which is also rising. Regarding the repeat purchase rates by flavor. For the first flavor — for the first two flavors, we launched last September, Gongchang Yotin and [indiscernible], their repeat purchase rates could reach close to 70% in July. Although these numbers varies over time. Thank you for your question.

Peihang Lyu: Thank you, Sam.

Operator: Thank you. At this time, I would now see that we are — due to time constraints now, I would like to turn the call back over to the company for closing remarks.

Sam Tsang: Thank you again for joining us today. If you have further questions, please feel free to contact RLX Technology’s Investor Relations team through the contact information provided on our website or Piacente Financial Communications. Thank you.

Operator: This concludes the conference call. You may now disconnect your line. Thank you.