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

"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 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

[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,

2024

2025

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

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts and notes payable

458,538

357,038

49,841

Contract liabilities

10,610

94,075

13,132

Salary and welfare benefits payable

73,740

52,178

7,284

Taxes payable

126,154

191,073

26,673

Short-term loan

40,000

104,114

14,534

Accrued expenses and other current liabilities

108,816

150,527

21,012

Amounts due to related parties

27,401

30,045

4,194

Dividend payable

1,144

Lease liabilities - current portion

11,447

22,647

3,161

Total current liabilities

857,850

1,001,697

139,831

Non-current liabilities:

Deferred tax liabilities

16,196

123,092

17,183

Lease liabilities - non-current portion

7,050

31,289

4,368

Other non-current liability

90,759

12,670

Total non-current liabilities

23,246

245,140

34,221

Total liabilities

881,096

1,246,837

174,052

Shareholders' Equity:

Total RLX Technology Inc. shareholders' equity

15,988,216

16,151,718

2,254,692

Noncontrolling interests

1,737

87,692

12,243

Total shareholders' equity

15,989,953

16,239,410

2,266,935

Total liabilities and shareholders' equity

16,871,049

17,486,247

2,440,987

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(All amounts in thousands, except for share and per share data)

For the three months ended

For the six months ended

June 30

March 31,

June 30,

2024

2025

2024

2025

RMB

US$

RMB

US$

Net revenues

627,176

808,300

879,952

122,836

1,178,799

1,688,252

235,671

Cost of revenues

(400,712)

(477,526)

(552,037)

(77,061)

(728,322)

(1,029,563)

(143,721)

Excise tax on products

(68,602)

(99,823)

(85,835)

(11,982)

(149,842)

(185,658)

(25,917)

Gross profit

157,862

230,951

242,080

33,793

300,635

473,031

66,033

Operating expenses:

Selling expenses

(62,235)

(58,989)

(84,649)

(11,817)

(115,122)

(143,638)

(20,051)

General and administrative expenses

(128,997)

(67,468)

(88,406)

(12,341)

(238,951)

(155,874)

(21,759)

Research and development expenses

(27,055)

(30,067)

(4,197)

(31,500)

(57,122)

(7,974)

Total operating expenses

(191,192)

(153,512)

(203,122)

(28,355)

(385,573)

(356,634)

(49,784)

(Loss)/income from operations

(33,330)

77,439

38,958

5,438

(84,938)

116,397

16,249

Other income：

Interest income, net

154,207

135,953

142,851

19,941

313,065

278,804

38,920

Investment income

12,718

8,386

24,832

3,466

25,494

33,218

4,637

Others, net

22,739

29,143

40,324

5,629

51,682

69,467

9,697

Income before income tax

156,334

250,921

246,965

34,474

305,303

497,886

69,503

Income tax expense

(21,389)

(28,181)

(28,470)

(3,974)

(37,733)

(56,651)

(7,908)

Net income

134,945

222,740

218,495

30,500

267,570

441,235

61,595

Less: net income attributable to noncontrolling interests

2,631

700

1,378

192

3,348

2,078

290

Net income attributable to RLX Technology Inc.

132,314

222,040

217,117

30,308

264,222

439,157

61,305

Other comprehensive income/(loss):

Foreign currency translation adjustments

44,174

(15,671)

(26,510)

(3,701)

56,880

(42,181)

(5,888)

Unrealized income on long-term investment securities

705

2,067

698

692

2,765

386

Total other comprehensive income/(loss)

44,879

(13,604)

(25,812)

(3,604)

57,572

(39,416)

(5,502)

Total comprehensive income

179,824

209,136

192,683

26,896

325,142

401,819

56,093

Less: total comprehensive income/(loss) attributable to

noncontrolling interests

2,618

636

632

3,348

1,268

177

Total comprehensive income attributable to RLX Technology Inc.

177,206

208,500

192,051

26,808

321,794

400,551

55,916

Net income per ordinary share/ADS

Basic

0.108

0.181

0.178

0.025

0.213

0.359

0.050

Diluted

0.103

0.170

0.166

0.023

0.205

0.335

0.047

Weighted average number of ordinary shares/ADSs

Basic

1,228,869,526

1,226,330,482

1,221,705,674

1,239,093,583

1,224,005,302

Diluted

1,284,388,803

1,308,811,866

1,309,486,924

1,290,853,297

1,309,617,920

RLX TECHNOLOGY INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share and per share data)

For the three months ended

For the six months ended

June 30,

March 31,

June 30,

June 30

2024

2025

2024

2025

(As adjusted) (a)

RMB

US$

RMB

US$

(Loss)/income from operations

(33,330)

77,439

38,958

5,438

(84,938)

116,397

16,249

Add: share-based compensation expenses

Selling expenses

9,172

3,310

13,262

1,851

13,775

16,572

2,313

General and administrative expenses

93,026

24,271

38,368

5,356

159,440

62,639

8,744

Research and development expenses

(24,074)

745

7,188

1,003

(20,193)

7,933

1,107

Amortization and depreciation of assets arising from fair value step

up in business acquisitions

Cost of revenues

13,347

1,863

13,347

1,863

Selling expenses

2,103

2,003

4,881

681

4,263

6,884

961

General and administrative expenses

167

195

Non-GAAP income from operations

46,927

107,796

116,171

16,215

72,407

223,967

31,264

Net income

134,945

222,740

218,495

30,500

267,570

441,235

61,595

Add: share-based compensation expenses

78,124

28,326

58,818

8,210

153,022

87,144

12,164

Amortization and depreciation of assets arising from fair value step

up in business acquisitions

2,133

2,031

18,395

2,567

4,323

20,426

2,851

Tax effects on non-GAAP adjustments

(446)

(425)

(4,513)

(630)

(904)

(4,938)

(689)

Non-GAAP net income

214,756

252,672

291,195

40,647

424,011

543,867

75,921

Net income attributable to RLX Technology Inc.

132,314

222,040

217,117

30,308

264,222

439,157

61,305

Add: share-based compensation expenses

78,124

28,326

58,818

8,210

153,022

87,144

12,164

Amortization and depreciation of assets arising from fair value step

up in business acquisitions (b)

2,133

2,031

13,002

1,815

4,323

15,033

2,099

Tax effects on non-GAAP adjustments (b)

(446)

(425)

(3,164)

(442)

(904)

(3,589)

(501)

Non-GAAP net income attributable to RLX Technology Inc.

212,125

251,972

285,773

39,891

420,663

537,745

75,067

Non-GAAP net income per ordinary share/ADS

- Basic

0.173

0.205

0.234

0.033

0.339

0.439

0.061

- Diluted

0.165

0.193

0.218

0.030

0.326

0.411

0.057

Weighted average number of ordinary shares/ADSs

- Basic

1,228,869,526

1,226,330,482

1,221,705,674

1,239,093,583

1,224,005,302

- Diluted

1,284,388,803

1,308,811,866

1,309,486,924

1,290,853,297

1,309,617,920

Note (a): The Company completed the acquisition of the acquired company on May 31, 2025, which was accounted for as a business combination. Beginning in Q2 2025, the Company included the amortization and

depreciation of assets arising from fair value step up in business acquisitions, as well as the associated tax impact, in the reconciliation items for GAAP and Non-GAAP results. The Company has retrospectively

adjusted the above unaudited reconciliation of GAAP and Non-GAAP results for the prior quarter. The Company believes these changes provide management and investors with more useful information to evaluate

the operations of its business.

Note (b): The amortization and depreciation expense and related tax effect attributable to noncontrolling interests has been excluded from the presentation in the reconciliation items for GAAP and Non-GAAP

results.

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands)

For the three months ended

For the six months ended

June 30,

March 31,

June 30

June 30,

2024

2025

2024

2025

RMB

US$

RMB

US$

Net cash generated from operating activities

196,764

207,165

229,616

32,053

200,784

436,781

60,972

Net cash generated/(used in) from investing

activities

557,132

(987,166)

(816,501)

(113,979)

977,797

(1,803,667)

(251,782)

Net cash generated/(used in) from financing

activities

14,435

(326,948)

(45,640)

(472,885)

(312,513)

(43,625)

Effect of foreign exchange rate changes on cash,

cash equivalents and restricted cash

10,032

(8,040)

2,436

339

12,935

(5,604)

(783)

Net increase in cash and cash equivalents and

restricted cash

763,928

(773,606)

(911,397)

(127,227)

718,631

(1,685,003)

(235,218)

Cash, cash equivalents and restricted cash at

the beginning of the period

2,374,761

5,644,359

4,870,753

679,931

2,420,058

5,644,359

787,922

Cash, cash equivalents and restricted cash at

the end of the period

3,138,689

4,870,753

3,959,356

552,704

3,138,689

3,959,356

552,704

SOURCE RLX Technology Inc.