RLX Technology Extends $500 Million Share Buyback Program Through 2027

RLX Technology Extends $500 Million Share Buyback Program

In a strategic move signaling confidence in its future, RLX Technology Inc. (NYSE: RLX), a prominent global player in the e-vapor industry, has announced the extension of its existing share repurchase program. This decision, made by the company’s board, allows for an additional 24 months to repurchase shares, now running through December 31, 2027.

Originally put in place in December 2021, the share repurchase program was designed to enhance shareholder value by buying back its ordinary shares represented by American Depositary Shares (ADSs) in the open market. In the earlier stages of this program, which got its first extension in December 2023, RLX had committed to a maximum investment of $500 million.

As of December 31, 2025, RLX reported that it had successfully repurchased approximately 170 million shares, totaling around $330 million, which leaves about $170 million yet to be utilized under the current program. The continuation of this initiative reflects RLX's commitment to maximizing shareholder wealth while demonstrating its solid cash position.

The repurchases will be executed based on market conditions and may include various methods such as open market purchases, block trades, or private negotiations. Furthermore, the board of directors of RLX will periodically assess the program’s parameters, allowing for possible adjustments as deemed necessary.

The specifics of the company’s financial health are reassuring. The extension of the buyback program provides a measure of flexibility as the company continues to navigate the e-vapor market, which has shown variable trends over recent years. The ability to carry out these repurchases will be funded through RLX's existing cash reserves, offering no risk to the company's operational viability.

The leadership team at RLX emphasizes the importance of remaining responsive to both market environments and shareholder expectations. By effectively managing its capital structure through share buybacks, RLX aims to foster greater financial stability and foster a dedicated investor base.

Beyond the immediate financial implications, this extension of the share repurchase program contained forward-looking statements that illustrate RLX's strategic priorities moving forward. The company seeks to adapt to ongoing changes in consumer preferences, evolving regulatory landscapes, and competitive dynamics in China’s e-vapor market. With ongoing advancements in e-vapor technology and a robust development pipeline, RLX possesses a forward-thinking approach anchored by its deep understanding of adult smokers' needs.

In summary, RLX Technology Inc.'s extension of its $500 million share repurchase program is not just a financial maneuver but an indication of the company’s growth trajectory and commitment to shareholder returns. It demonstrates a proactive stance in a fluctuating industry, ensuring that RLX remains competitive while simultaneously rewarding its investors.