#China #Shenzhen #financial results #RLX Technology #e-vapor

RLX Technology Shows Robust Growth in Third Quarter 2025

On November 14, 2025, RLX Technology Inc. (NYSE: RLX), a prominent player in the global e-vapor market, released its unaudited financial results for the third quarter ending September 30, 2025. Despite facing macroeconomic and regulatory challenges, RLX Technology has announced remarkable numbers that highlight its resilience and strategic execution.

Financial Highlights

In the third quarter of 2025, RLX Technology reported net revenues of RMB 1,129.3 million (approximately USD 158.6 million), representing a 49.3% increase compared to RMB 756.3 million during the same period in 2024. This positive momentum can be attributed to enhanced operations in international markets and a gradual recovery in Mainland China.

The company recorded a gross margin of 31.2%, an improvement from 27.2% in the prior year. This increase in gross margin reflects the successful implementation of its strategy focusing on high-return investments in European markets and a favorable geographical revenue mix.

Additionally, the non-GAAP income from operations amounted to RMB 187.8 million (around USD 26.4 million), considerably up from RMB 84.0 million in Q3 2024, exhibiting the strength of RLX Technology’s diversified growth model. U.S. GAAP net income for the quarter reached RMB 206.8 million (USD 29.1 million), compared to RMB 169.4 million in the same period last year.

Strategic Focus and Market Expansion

RLX Technology's co-founder and CEO, Ms. Ying (Kate) Wang, emphasized the company's strategic overhaul that resulted in robust growth. She noted, “Our disciplined execution on international expansion and innovation continues to yield significant benefits. We have succeeded in strengthening our positions in key Asia Pacific and European markets, supported by targeted investments.”

The company's efforts in the e-vapor market include the successful launch of its proprietary modern-oral product line in the UK, aimed at attracting new user segments and capitalizing on years of research and development.

Given recent favorable changes in customs enforcement in Mainland China, RLX Technology has started to see a revival in market conditions, allowing for better competition and compliance among players in the industry.

Sustainable Profitability and Shareholder Returns

Chao Lu, the CFO, highlighted RLX Technology's commitment to delivering consistent shareholder returns. The company has so far returned over USD 500 million to shareholders through share repurchases and dividends, underpinning its focus on sustainable profitability. As announced on November 14, the Board of Directors approved a cash dividend of USD 0.1 per ordinary share, reinforcing its dedication to long-term value creation.

The growth trajectory reflected in these results positions RLX Technology favorably within the smokeless industry, as the company aims to cultivate a diversified and globally recognized brand synonymous with quality.

Looking Ahead

The company is set to continue on its path of growth as it adapts to market trends and consumer preferences. The host of technological advancements and R&D initiatives signify RLX Technology’s commitment to shaping the future of the e-vapor industry, ensuring it remains at the forefront of innovation and market leadership.

In conclusion, RLX Technology’s performance in the third quarter of 2025 showcases its robust business model and strategic foresight. As the company navigates through challenges, its focus remains unwavering on enhancing shareholder value and achieving sustainable growth in a competitive landscape.

Overall, with a solid balance sheet and a forward-looking approach, RLX Technology is well-positioned for future expansion and success.