EX-99.1 2 tm2524178d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

RLX Technology Announces Unaudited Second Quarter 2025 Financial Results

 

SHENZHEN, August 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.

 

 

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.

 

 

 

 

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).

 

 

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.

 

 

 

 

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

 

 

 

 

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 
                
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,  June 30,  June 30,  June 30,  June 30, 
   2024  2025  2025  2025  2024  2025  2025 
   RMB  RMB  RMB  US$  RMB  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   40   (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   97   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   88   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   1,221,705,674   1,239,093,583   1,224,005,302   1,224,005,302 
Diluted   1,284,388,803   1,308,811,866   1,309,486,924   1,309,486,924   1,290,853,297   1,309,617,920   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,  June 30,  June 30,  June 30 
   2024  2025  2025  2025  2024  2025  2025 
   (As adjusted) (a)  (As adjusted) (a)        (As adjusted) (a)       
   RMB  RMB  RMB  US$  RMB  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   30   28   167   23   60   195   27 
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   1,221,705,674   1,239,093,583   1,224,005,302   1,224,005,302 
- Diluted   1,284,388,803   1,308,811,866   1,309,486,924   1,309,486,924   1,290,853,297   1,309,617,920   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,   June 30,   June 30,   June 30, 
    2024   2025   2025   2025   2024   2025   2025 
    RMB   RMB   RMB   US$   RMB   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