RLX Technology Announces Unaudited First Quarter 2025 Financial Results

SHENZHEN, China, May 16, 2025 /PRNewswire/ — RLX Technology Inc. (“RLX Technology” or the “Company”) (NYSE: RLX), a leading global branded e-vapor company, today announced its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

• Net revenues were RMB808.3 million (US$111.4 million) in the first quarter of 2025, compared with RMB551.6 million in the same period of 2024.
• Gross margin was 28.6% in the first quarter of 2025, compared with 25.9% in the same period of 2024.
• U.S. GAAP net income was RMB222.7 million (US$30.7 million) in the first quarter of 2025, compared with RMB132.6 million in the same period of 2024.
• Non-GAAP net income^[1] was RMB251.1 million (US$34.6 million) in the first quarter of 2025, compared with RMB207.5 million in the same period of 2024.

“We were pleased to deliver impressive results in the first quarter of 2025 amid a challenging macro environment,” commented Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and Chief Executive Officer of RLX Technology. “E-vapor exports from China declined year over year in the first quarter due to bans on disposable products, excise taxes and an evolving regulatory environment, factors that will continue to impact the e-vapor industry as a whole throughout 2025. Stricter regulations are also driving shifts in market dynamics, with a transition to larger-volume e-liquid products emerging as a global trend, reflecting users’ demand for convenient and cost-effective products. As a trusted brand with leading product R&D capabilities, robust inventory management systems, and a diverse global presence, RLX is well-positioned to navigate the ever-changing regulatory landscape and outperform the market, meeting the needs of adult smokers worldwide.”

Mr. Chao Lu, Chief Financial Officer of RLX Technology, added, “Our effective strategy and ongoing international expansion continued to support sustainable, profitable growth in the first quarter, driving a 46.5% year-over-year increase in net revenues to RMB808.3 million. Notably, our non-GAAP income from operations^[1] also surged to RMB105.8 million thanks to our impactful cost optimization initiatives and operating leverage. While we expect regulatory and market challenges to persist, we remain confident in our ability to consistently propel high-quality business development and enhance shareholder value through strong strategic execution.”

First Quarter 2025 Financial Results

Net revenues were RMB808.3 million (US$111.4 million) in the first quarter of 2025, compared with RMB551.6 million in the same period of 2024. The increase was primarily due to our international expansion.

Gross profit was RMB231.0 million (US$31.8 million) in the first quarter of 2025, compared with RMB142.8 million in the same period of 2024.

Gross margin was 28.6% in the first quarter of 2025, compared with 25.9% in the same period of 2024. The increase was primarily due to a favorable change in the revenue mix and cost optimization initiatives.

Operating expenses were RMB153.5 million (US$21.2 million) in the first quarter of 2025, compared with RMB194.4 million in the same period of 2024. The decrease was primarily due to the fluctuation of share-based compensation expenses. The changes in share-based compensation expenses were primarily due to the changes in the fair value of the share incentive awards that the Company granted to its employees in line with the fluctuations in the Company’s share price.

Selling expenses were RMB59.0 million (US$8.1 million) in the first quarter of 2025, compared with RMB52.9 million in the same period of 2024, primarily due to an increase in branding expenses, slightly offset by a decrease in salaries, welfare benefits and share-based compensation expenses.

General and administrative expenses were RMB67.5 million (US$9.3 million) in the first quarter of 2025, compared with RMB110.0 million in the same period of 2024, primarily due to a decrease in share-based compensation expenses.

Research and development expenses were RMB27.1 million (US$3.7 million) in the first quarter of 2025, compared with RMB31.5 million in the same period of 2024, primarily due to a decrease in share-based compensation expenses.

U.S. GAAP income from operations was RMB77.4 million (US$10.7 million) in the first quarter of 2025, compared with loss from operations of RMB51.6 million in the same period of 2024.

Non-GAAP income from operations was RMB105.8 million (US$14.6 million) in the first quarter of 2025, compared with RMB23.3 million in the same period of 2024.

Income tax expense was RMB28.2 million (US$3.9 million) in the first quarter of 2025, compared with RMB16.3 million in the same period of 2024.

U.S. GAAP net income was RMB222.7 million (US$30.7 million) in the first quarter of 2025, compared with RMB132.6 million in the same period of 2024.

Non-GAAP net income was RMB251.1 million (US$34.6 million) in the first quarter of 2025, compared with RMB207.5 million in the same period of 2024.

U.S. GAAP basic and diluted net income per American depositary share (“ADS”) were RMB0.181 (US$0.025) and RMB0.170 (US$0.023), respectively, in the first quarter of 2025, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.106 and RMB0.101, respectively, in the same period of 2024.

Non-GAAP basic and diluted net income per ADS^[2] were RMB0.204 (US$0.028) and RMB0.191(US$0.026), respectively, in the first quarter of 2025, compared with non-GAAP basic and diluted net income per ADS of RMB0.166 and RMB0.159, respectively, in the same period of 2024.

Balance Sheet and Cash Flow

As of March 31, 2025, the Company had cash and cash equivalents, restricted cash, short-term bank deposits, net, short-term investments, net, long-term bank deposits, net and long-term investment securities, net of RMB16,159.6 million (US$2,226.9 million), compared with RMB15,870.8 million as of December 31, 2024. In the first quarter of 2025, net cash generated from operating activities was RMB207.2 million (US$28.5 million).

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on May 16, 2025 (8:00 PM Beijing/Hong Kong Time on May 16, 2025).

Dial-in details for the earnings conference call are as follows:

Participants should dial in 10 minutes before the scheduled start time and ask to be connected to the call for “RLX Technology Inc.” with the Participant Code as set forth above.

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.relxtech.com.

A replay of the conference call will be accessible approximately two hours after the conclusion of the call until May 23, 2025, by dialing the following telephone numbers:

About RLX Technology Inc.

RLX Technology Inc. (NYSE: RLX) is a leading global branded e-vapor company. The Company leverages its strong in-house technology, product development capabilities and in-depth insights into adult smokers’ needs to develop superior e-vapor products.

For more information, please visit: http://ir.relxtech.com.

Non-GAAP Financial Measures

The Company uses non-GAAP net income, non-GAAP operating profit and non-GAAP basic and diluted net income per ADS, each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. Non-GAAP net income represents net income excluding share-based compensation expenses. Non-GAAP income from operations represents net operating profit excluding share-based compensation expenses. Non-GAAP basic and diluted net income per ADS is computed using non-GAAP net income attributable to RLX Technology Inc. and the same number of ADSs used in U.S. GAAP basic and diluted net income per ADS calculation.

The Company presents these non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company believes that they help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in net income. The Company also believes that the use of the non-GAAP measures facilitates investors’ assessment of its operating performance, as they could provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects, and allows for greater visibility with respect to key metrics used by the management in its financial and operational decision making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. They should not be considered in isolation or construed as an alternative to net income, basic and diluted net income per ADS or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review its historical non-GAAP financial measures to the most directly comparable U.S. GAAP measures. The non-GAAP financial measures here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and non-GAAP Results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.2567 to US$1.00, the exchange rate on March 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” and similar statements. Among other things, quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; trends and competition in the global e-vapor market; changes in its revenues and certain cost or expense items; governmental policies, laws and regulations across various jurisdictions relating to the Company’s industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is current as of the date of this press release, and the Company does not undertake any obligation to update such information, except as required under applicable law.

For more information, please contact:

In China:

RLX Technology Inc.
Head of Capital Markets
Sam Tsang
Email: ir@relxtech.com

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: RLX@tpg-ir.com 

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: RLX@tpg-ir.com