RLX Technology Announces Unaudited Second Quarter 2025 Financial Results
SHENZHEN, China, Aug. 22, 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 second quarter ended June 30, 2025.
Second Quarter 2025 Financial Highlights
Net revenues were RMB880.0 million (US$122.8 million) in the second quarter of 2025, compared with RMB627.2 million in the same period of 2024.
Gross margin was 27.5% in the second quarter of 2025, compared with 25.2% in the same period of 2024.
Non-GAAP income from operations[1] was RMB116.2 million (US$16.2 million) in the second quarter of 2025, compared with RMB46.9 million in the same period of 2024.
U.S. GAAP net income was RMB218.5 million (US$30.5 million) in the second quarter of 2025, compared with RMB134.9 million in the same period of 2024.
Non-GAAP net income1 was RMB291.2 million (US$40.6 million) in the second quarter of 2025, compared with RMB214.8 million in the same period of 2024.
"We are pleased to deliver another strong performance this quarter, thanks to our effective strategy execution and solid progress in our international expansion amid ongoing transformation in the global e-vapor industry." commented Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and Chief Executive Officer of RLX Technology. "Rapid shifts in regulation and consumer behavior are remolding the competitive landscape while unlocking new opportunities for growth, innovation and long-term market development. As a trusted e-vapor brand for adult smokers worldwide, we have reinforced our leadership in this dynamic environment by prioritizing global compliance, implementing data-driven localized strategies, and deepening strategic partnerships to strengthen our international distribution. Moving forward, we remain confident in our ability to navigate complexity and seize emerging opportunities, creating sustainable value and delivering long-term benefits to all stakeholders as we shape the future of the global industry."
Mr. Chao Lu, Chief Financial Officer of RLX Technology, added, "Our robust second quarter results were led by 40.3% year-over-year and 8.9% sequential net revenues growth to RMB880.0 million, propelled by the sustained momentum in our international expansion. Furthermore, our disciplined cost control and optimized product mix resulted in an impressive 147.6% year-over-year increase in non-GAAP income from operations to RMB 116.2 million. Supported by an effective global growth strategy, efficient operations, and a deep commitment to innovation, we are well-positioned to continue driving sustainable, profitable development and generate long-term shareholder value."
Second Quarter 2025 Financial Results
Net revenues were RMB880.0 million (US$122.8 million) in the second quarter of 2025, compared with RMB627.2 million in the same period of 2024. The increase was mainly driven by our expansion into international markets.
Gross profit was RMB242.1 million (US$33.8 million) in the second quarter of 2025, compared with RMB157.9 million in the same period of 2024.
Gross margin was 27.5% in the second quarter of 2025, compared with 25.2% in the same period of 2024. The increase was primarily due to a favorable change in revenue mix and margin improvement in selected Asian countries.
Operating expenses were RMB203.1 million (US$28.4 million) in the second quarter of 2025, compared with RMB191.2 million in the same period of 2024. The increase was primarily due to an increase in salaries and welfare expenses, slightly offset by an overall decrease in share-based compensation expenses.
Selling expenses were RMB84.6 million (US$11.8 million) in the second quarter of 2025, compared with RMB62.2 million in the same period of 2024, primarily due to an increase in salaries and welfare, and branding expenses.
General and administrative expenses were RMB88.4 million (US$12.3 million) in the second quarter of 2025, compared with RMB129.0 million in the same period of 2024, primarily due to a decrease in share-based compensation expenses, slightly offset by an increase in salaries and welfare expenses.
Research and development expenses were RMB30.1 million (US$4.2 million) in the second quarter of 2025, compared with positive RMB0.04 million in the same period of 2024, primarily due to an increase in share-based compensation expenses.
U.S. GAAP income from operations was RMB39.0 million (US$5.4 million) in the second quarter of 2025, compared with U.S. GAAP loss from operations of RMB33.3 million in the same period of 2024.
Non-GAAP income from operations was RMB116.2 million (US$16.2 million) in the second quarter of 2025, compared with RMB46.9 million in the same period of 2024.
Income tax expense was RMB28.5 million (US$4.0 million) in the second quarter of 2025, compared with RMB21.4 million in the same period of 2024.
U.S. GAAP net income was RMB218.5 million (US$30.5 million) in the second quarter of 2025, compared with RMB134.9 million in the same period of 2024.
Non-GAAP net income was RMB291.2 million (US$40.6 million) in the second quarter of 2025, compared with RMB214.8 million in the same period of 2024.
U.S. GAAP basic and diluted net income per American depositary share ("ADS") were RMB0.178 (US$0.025) and RMB0.166 (US$0.023), respectively, in the second quarter of 2025, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.108 and RMB0.103, respectively, in the same period of 2024.
Non-GAAP basic and diluted net income per ADS[2] were RMB0.234 (US$0.033) and RMB0.218(US$0.030), respectively, in the second quarter of 2025, compared with non-GAAP basic and diluted net income per ADS of RMB0.173 and RMB0.165, respectively, in the same period of 2024.
Balance Sheet and Cash Flow
As of June 30, 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 RMB15,524.3 million (US$2,167.1 million), compared with RMB16,159.6 million as of March 31, 2025. In the second quarter of 2025, net cash generated from operating activities was RMB229.6 million (US$32.1 million).
Dividend Payment
The Company announced that its Board of Directors approved a cash dividend of US$0.01 per ordinary share, or US$0.01 per ADS, to holders of ordinary shares and holders of ADSs, respectively, as of the close of business on September 12, 2025 Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The payment date is expected to be on or around September 19, 2025 and on or around September 26, 2025 for holders of ordinary shares and holders of ADSs, respectively.
Conference Call
The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 22, 2025 (8:00 PM Beijing/Hong Kong Time on August 22, 2025).
Dial-in details for the earnings conference call are as follows:
United States (toll-free):
+1-888-317-6003
International:
+1-412-317-6061
Hong Kong, China (toll-free):
+800-963-976
Hong Kong, China:
+852-5808-1995
Mainland China:
400-120-6115
Participant Code:
3841228
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 August 29, 2025, by dialing the following telephone numbers:
United States:
+1-877-344-7529
International:
+1-412-317-0088
Replay Access Code:
2624638
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 income from operations 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, amortization and depreciation of assets arising from fair value step up in business acquisitions, and tax effects on non-GAAP adjustments. Non-GAAP income from operations represents net income from operations excluding share-based compensation expenses and amortization and depreciation of assets arising from fair value step up in business acquisitions. 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 RMB7.1636 to US$1.00, the exchange rate on June 30, 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 MarketsSam TsangEmail:
Piacente Financial CommunicationsJenny CaiTel: +86-10-6508-0677Email:
In the United States:
Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050Email:
[1] Non-GAAP net income and non-GAAP income from operations are non-GAAP financial measures. For more information on the Company's non-GAAP financial measures, please see the section "Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
[2] Non-GAAP basic and diluted net income per ADS is a non-GAAP financial measure. For more information on the Company's non-GAAP financial measures, please see the section "Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
RLX TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands)
As of
December 31,
June 30,
June 30,
2024
2025
2025
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
5,593,492
3,858,010
538,557
Restricted cash
50,867
101,346
14,147
Short-term bank deposits, net
2,179,886
2,148,125
299,867
Receivables from online payment platforms
4,722
8,826
1,232
Short-term investments
719,755
1,407,025
196,413
Accounts and notes receivable, net
78,484
236,247
32,979
Inventories
142,552
227,857
31,808
Amounts due from related parties
346,132
161,966
22,610
Prepayments and other current assets, net
185,091
216,011
30,154
Total current assets
9,300,981
8,365,413
1,167,767
Non-current assets:
Property, equipment and leasehold improvement, net
50,787
171,954
24,004
Intangible assets, net
52,796
244,731
34,163
Long-term investments, net
8,000
8,330
1,163
Deferred tax assets, net
38,067
41,588
5,805
Right-of-use assets, net
24,110
56,634
7,906
Long-term bank deposits, net
727,448
620,388
86,603
Long-term investment securities, net
6,599,365
7,389,444
1,031,527
Goodwill
59,581
572,041
79,854
Other non-current assets, net
9,914
15,724
2,195
Total non-current assets
7,570,068
9,120,834
1,273,220
Total assets
16,871,049
17,486,247
2,440,987
