RLX Technology Announces Unaudited Second Quarter 2025 Financial Results

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 June30, 2025.

Second Quarter 2025Financial Highlights

— Net revenueswere RMB880.0 million (US$122.8 million) in the second quarter of 2025, compared withRMB627.2 million in the same period of 2024.

— Gross marginwas 27.5% in the second quarter of 2025, compared with 25.2% in the same periodof 2024.

— Non-GAAP income from operations[1]was RMB116.2 million (US$16.2 million) in the secondquarter of 2025, compared with RMB46.9 million in the same period of 2024.

— U.S. GAAP netincomewas RMB218.5 million (US$30.5 million) in the secondquarter of 2025, compared with RMB134.9 million in the same period of 2024.

— Non-GAAP net income1was RMB291.2 million (US$40.6million) in the second quarter of 2025, compared with RMB214.8million 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 revenueswere RMB880.0million (US$122.8 million) in the second quarter of 2025, compared with RMB627.2million in the same period of 2024.The increase was mainly driven by our expansion into international markets.

Gross profitwas RMB242.1million (US$33.8 million) in the secondquarter of 2025, compared with RMB157.9million in the same period of 2024.

Gross marginwas 27.5% in the secondquarter 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 expenseswere RMB203.1million (US$28.4million) in the secondquarter 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 decreasein share-based compensation expenses.

Selling expenses were RMB84.6million (US$11.8 million) in the secondquarter of 2025, compared with RMB62.2million in the same period of 2024, primarily due to an increase in salaries and welfare, and branding expenses.

General and administrative expenseswereRMB88.4million (US$12.3million) in the secondquarter of 2025, compared with RMB129.0million in the same period of 2024,primarily due toadecrease 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 incomefrom operationswas RMB39.0 million (US$5.4million) in the second quarter of 2025, compared with U.S. GAAP loss from operations of RMB33.3million in the same period of 2024.

Non-GAAP income from operationswas RMB116.2 million (US$16.2 million) in the secondquarter of 2025, compared with RMB46.9 million in the same period of 2024.

Income tax expensewas RMB28.5million (US$4.0million) in the second quarter of 2025, compared with RMB21.4million in the same period of 2024.

U.S. GAAPnet incomewas RMB218.5million (US$30.5 million) in the second quarter of 2025, compared with RMB134.9million in the same period of 2024.

Non-GAAPnet incomewas RMB291.2million (US$40.6 million) in the second quarter of 2025, compared with RMB214.8million 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 secondquarter of 2025, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.108and 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 RMB0.173and RMB0.165,respectively, in the same period of 2024.

BalanceSheet and Cash Flow

As of June30, 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 RMB15,524.3million (US$2,167.1million), compared with RMB16,159.6 million as of March 31, 2025.In the second quarter of 2025, net cash generated from operating activities was RMB229.6million (US$32.1 million).

Dividend Payment

The Company announced that its Board of Directors approved a cash dividend ofUS$0.01per ordinary share, orUS$0.01per ADS, to holders of ordinary shares and holders of ADSs, respectively, as of the close of business onSeptember 12, 2025Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The payment date is expected to be on or aroundSeptember 19, 2025and on or aroundSeptember 26, 2025for holders of ordinary shares and holders of ADSs, respectively.

Conference Call

The Company's management will host an earnings conference call at 8:00AM 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): +1-888-317-6003International: +1-412-317-6061Hong Kong, China (toll-free): +800-963-976Hong Kong, China: +852-5808-1995Mainland China: 400-120-6115Participant 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: +1-877-344-7529International: +1-412-317-0088Replay 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 expensesandamortization 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 June30, 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, June 30, 2024 2025 2025 RMB RMB US$ASSETSCurrent assets:Cash and cash equivalents 5,593,492 3,858,010 538,557Restricted cash 50,867 101,346 14,147Short-term bank deposits, net 2,179,886 2,148,125 299,867Receivables from online payment platforms 4,722 8,826 1,232Short-term investments 719,755 1,407,025 196,413Accounts and notes receivable, net 78,484 236,247 32,979Inventories 142,552 227,857 31,808Amounts due from related parties 346,132 161,966 22,610Prepayments and other current assets, net 185,091 216,011 30,154Total current assets 9,300,981 8,365,413 1,167,767Non-current assets:Property, equipment and leasehold improvement, net 50,787 171,954 24,004Intangible assets, net 52,796 244,731 34,163Long-term investments, net 8,000 8,330 1,163Deferred tax assets, net 38,067 41,588 5,805Right-of-use assets, net 24,110 56,634 7,906Long-term bank deposits, net 727,448 620,388 86,603Long-term investment securities, net 6,599,365 7,389,444 1,031,527Goodwill 59,581 572,041 79,854Other non-current assets, net 9,914 15,724 2,195Total non-current assets 7,570,068 9,120,834 1,273,220Total assets 16,871,049 17,486,247 2,440,987LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts and notes payable 458,538 357,038 49,841Contract liabilities 10,610 94,075 13,132Salary and welfare benefits payable 73,740 52,178 7,284Taxes payable 126,154 191,073 26,673Short-term loan 40,000 104,114 14,534Accrued expenses and other current liabilities 108,816 150,527 21,012Amounts due to related parties 27,401 30,045 4,194Dividend payable 1,144 – -Lease liabilities – current portion 11,447 22,647 3,161Total current liabilities 857,850 1,001,697 139,831Non-current liabilities:Deferred tax liabilities 16,196 123,092 17,183Lease liabilities – non-current portion 7,050 31,289 4,368Other non-current liability – 90,759 12,670Total non-current liabilities 23,246 245,140 34,221Total liabilities 881,096 1,246,837 174,052Shareholders' Equity:Total RLX Technology Inc. shareholders' equity 15,988,216 16,151,718 2,254,692Noncontrolling interests 1,737 87,692 12,243Total shareholders' equity 15,989,953 16,239,410 2,266,935Total liabilities and shareholders' equity 16,871,049 17,486,247 2,440,987RLX TECHNOLOGY INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE 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 1,688,252 235,671Cost 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 66,033Operating 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 16,249Other income:Interest income, net 154,207 135,953 142,851 19,941 313,065 278,804 38,920Investment income 12,718 8,386 24,832 3,466 25,494 33,218 4,637Others, net 22,739 29,143 40,324 5,629 51,682 69,467 9,697Income before income tax 156,334 250,921 246,965 34,474 305,303 497,886 69,503Income 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 61,595Less: net income attributable to noncontrolling interests 2,631 700 1,378 192 3,348 2,078 290Net income attributable to RLX Technology Inc. 132,314 222,040 217,117 30,308 264,222 439,157 61,305Other 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 386Total 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 56,093Less: total comprehensive income/(loss) attributable to 2,618 636 632 88 3,348 1,268 177noncontrolling interestsTotal comprehensive income attributable to RLX Technology Inc. 177,206 208,500 192,051 26,808 321,794 400,551 55,916Net incomeper ordinary share/ADSBasic 0.108 0.181 0.178 0.025 0.213 0.359 0.050Diluted 0.103 0.170 0.166 0.023 0.205 0.335 0.047Weighted average number of ordinary shares/ADSsBasic 1,228,869,526 1,226,330,482 1,221,705,674 1,221,705,674 1,239,093,583 1,224,005,302 1,224,005,302Diluted 1,284,388,803 1,308,811,866 1,309,486,924 1,309,486,924 1,290,853,297 1,309,617,920 1,309,617,920RLX 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 16,249Add: share-based compensation expensesSelling expenses 9,172 3,310 13,262 1,851 13,775 16,572 2,313General and administrative expenses 93,026 24,271 38,368 5,356 159,440 62,639 8,744Research and development expenses (24,074) 745 7,188 1,003 (20,193) 7,933 1,107Amortization and depreciation of assets arising from fair value stepup in business acquisitionsCost of revenues – – 13,347 1,863 – 13,347 1,863Selling expenses 2,103 2,003 4,881 681 4,263 6,884 961General and administrative expenses 30 28 167 23 60 195 27Non-GAAP income from operations 46,927 107,796 116,171 16,215 72,407 223,967 31,264Net income 134,945 222,740 218,495 30,500 267,570 441,235 61,595Add: share-based compensation expenses 78,124 28,326 58,818 8,210 153,022 87,144 12,164Amortization and depreciation of assets arising from fair value step 2,133 2,031 18,395 2,567 4,323 20,426 2,851up in business acquisitionsTax 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 75,921Net income attributable to RLX Technology Inc. 132,314 222,040 217,117 30,308 264,222 439,157 61,305Add: share-based compensation expenses 78,124 28,326 58,818 8,210 153,022 87,144 12,164Amortization and depreciation of assets arising from fair value step 2,133 2,031 13,002 1,815 4,323 15,033 2,099up in business acquisitions(b)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 75,067Non-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 0.057Weighted 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 1,309,617,920Note (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 anddepreciation 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 retrospectivelyadjusted 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 evaluatethe 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-GAAPresults.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 60,972Net cash generated/(used in) from investing 557,132 (987,166) (816,501) (113,979) 977,797 (1,803,667) (251,782)activitiesNet cash generated/(used in) from financing – 14,435 (326,948) (45,640) (472,885) (312,513) (43,625)activitiesEffect of foreign exchange rate changes on cash, 10,032 (8,040) 2,436 339 12,935 (5,604) (783)cash equivalents and restricted cashNet increase in cash and cash equivalents and 763,928 (773,606) (911,397) (127,227) 718,631 (1,685,003) (235,218)restricted cashCash, cash equivalents and restricted cash at 2,374,761 5,644,359 4,870,753 679,931 2,420,058 5,644,359 787,922the beginning of the periodCash, cash equivalents and restricted cash at 3,138,689 4,870,753 3,959,356 552,704 3,138,689 3,959,356 552,704the end of the period

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