RLX Technology : Q1 2025 Press Releases

Published: 2025-05-16 05:34:06 ET RLX

Published on 05/16/2025 at 05:34

SHENZHEN, 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

"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 operations1also 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

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.

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.

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).

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.

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:

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:

9889875

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:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:

About RLX Technology Inc.

6142221

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: https://http://ir.relxtech.com.

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.

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.

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: [email protected]

Piacente Financial Communications Jenny Cai

Tel: +86-10-6508-0677

Email: [email protected]

In the United States:

Piacente Financial Communications Brandi Piacente

Tel: +1-212-481-2050

Email: [email protected]

As of

December 31,

March 31,

2024

2025

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

5,593,492

4,711,236

649,226

Restricted cash

50,867

159,517

21,982

Short-term bank deposits, net

2,179,886

2,354,329

324,435

Receivables from online payment platforms

4,722

1,754

242

Short-term investments, net

719,755

1,097,481

151,237

Accounts and notes receivable, net

78,484

145,383

20,034

Inventories

142,552

116,495

16,053

Amounts due from related parties

346,132

184,608

25,440

Prepayments and other current assets, net

185,091

223,593

30,812

Total current assets

9,300,981

8,994,396

1,239,461

Non-current assets:

Property, equipment and leasehold improvement, net

50,787

46,783

6,447

Intangible assets, net

52,796

50,290

6,930

Long-term investments, net

8,000

8,330

1,148

Deferred tax assets, net

38,067

5,246

Right-of-use assets, net

24,110

26,855

3,701

Long-term bank deposits, net

727,448

732,237

100,905

Long-term investment securities, net

6,599,365

7,104,813

979,069

Goodwill

59,581

59,728

8,231

Other non-current assets, net

9,914

11,979

1,650

Total non-current assets

7,570,068

8,079,082

1,113,327

Total assets

16,871,049

17,073,478

2,352,788

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts and notes payable

458,538

396,163

54,593

Contract liabilities

10,610

5,554

765

Salary and welfare benefits payable

73,740

64,829

8,934

Taxes payable

126,154

152,153

20,967

Short-term loan

40,000

60,000

8,268

Accrued expenses and other current liabilities

108,816

105,298

14,510

Amounts due to related parties

27,401

25,347

3,493

Dividend payable

1,144

Lease liabilities - current portion

11,447

10,303

1,421

Total current liabilities

857,850

819,647

112,951

Non-current liabilities:

Deferred tax liabilities

16,196

16,226

2,236

Lease liabilities - non-current portion

7,050

13,259

1,827

Total non-current liabilities

23,246

29,485

4,063

Total liabilities

881,096

849,132

117,014

Shareholders' Equity:

Total RLX Technology Inc. shareholders' equity

15,988,216

16,221,973

2,235,447

Noncontrolling interests

1,737

2,373

327

Total shareholders' equity

15,989,953

16,224,346

2,235,774

Total liabilities and shareholders' equity

16,871,049

17,073,478

2,352,788

March 31,

2024

December 31,

2024

March 31,

2025

March 31,

2025

RMB

US$

Net revenues

551,623

813,489

808,300

111,387

Cost of revenues

(327,610)

(516,305)

(477,526)

(65,805)

Excise tax on products

(81,240)

(77,278)

(99,823)

(13,756)

Gross profit

142,773

219,906

230,951

31,826

Operating expenses:

Selling expenses

(52,887)

(45,369)

(58,989)

(8,129)

General and administrative expenses

(109,954)

(153,710)

(67,468)

(9,297)

Research and development expenses

(31,540)

(32,374)

(27,055)

(3,728)

Total operating expenses

(194,381)

(231,453)

(153,512)

(21,154)

(Loss)/income from operations

(51,608)

(11,547)

77,439

10,672

Other income:

Interest income, net

158,858

146,664

135,953

18,735

Investment income

12,776

11,072

8,386

1,156

Others, net

28,943

7,497

29,143

4,016

Income before income tax

148,969

153,686

250,921

34,579

Income tax expense

(16,344)

(26,303)

(28,181)

(3,884)

Net income

132,625

127,383

222,740

30,695

Less: net income attributable to noncontrolling interests

717

5,422

700

Net income attributable to RLX Technology Inc.

131,908

121,961

222,040

30,599

Other comprehensive income/(loss):

Foreign currency translation adjustments

12,706

268,079

(15,671)

(2,160)

Unrealized (loss)/income on long-term investment securities

(13)

(8,151)

2,067

285

Total other comprehensive income/(loss)

12,693

259,928

(13,604)

(1,875)

Total comprehensive income

145,318

387,311

209,136

28,820

Less: total comprehensive income attributable to noncontrolling interests

730

5,442

636

Total comprehensive income attributable to RLX Technology Inc.

144,588

381,869

208,500

28,732

Net income per ordinary share/ADS

- Basic

0.106

0.100

0.181

0.025

- Diluted

0.101

0.094

0.170

0.023

Weighted average number of ordinary shares/ADSs

- Basic

1,249,317,641

1,225,140,420

1,226,330,482

- Diluted

1,301,431,007

1,291,925,422

1,308,811,866

March 31,

2024

December 31,

2024

March 31,

2025

March 31,

2025

RMB

US$

(Loss)/income from operations

Add: share-based compensation expenses

(51,608)

(11,547)

77,439

10,672

Selling expenses

4,603

13,020

3,310

456

General and administrative expenses

66,414

103,894

24,271

3,345

Research and development expenses

3,881

7,210

745

103

Non-GAAP income from operations

23,290

112,577

105,765

14,576

Net income

Add: share-based compensation expenses

132,625

127,383

222,740

30,695

Selling expenses

4,603

13,020

3,310

456

General and administrative expenses

66,414

103,894

24,271

3,345

Research and development expenses

3,881

7,210

745

103

Non-GAAP net income

207,523

251,507

251,066

34,599

Net income attributable to RLX Technology Inc.

131,908

121,961

222,040

30,599

Add: share-based compensation expenses

74,898

124,124

28,326

3,904

Non-GAAP net income attributable to RLX Technology Inc.

206,806

246,085

250,366

34,503

Non-GAAP net income per ordinary share/ADS

- Basic

0.166

0.201

0.204

0.028

- Diluted

0.159

0.190

0.191

0.026

Weighted average number of ordinary shares/ADSs

- Basic

1,249,317,641

1,225,140,420

1,226,330,482

- Diluted

1,301,431,007

1,291,925,422

1,308,811,866

March 31,

2024

December 31,

2024

March 31,

2025

March 31,

2025

RMB

US$

Net cash generated from operating activities

4,020

497,011

207,165

28,548

Net cash generated from/(used in) investing activities

420,665

1,901,084

(987,166)

(136,035)

Net cash (used in)/generated from financing activities

(472,885)

(130,366)

14,435

1,989

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

2,903

62,865

(8,040)

(1,107)

Net (decrease)/increase in cash and cash equivalents and restricted cash

(45,297)

2,330,594

(773,606)

(106,605)

Cash, cash equivalents and restricted cash at the beginning of the period

2,420,058

3,313,765

5,644,359

777,813

Cash, cash equivalents and restricted cash at the end of the period

2,374,761

5,644,359

4,870,753

671,208

Disclaimer

RLX Technology Inc. published this content on May 16, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 16, 2025 at 09:33 UTC.