RLX Technology Inc. announced unaudited financial results for the first quarter ended March 31, 2025, reporting net revenues of RMB808.3 million (US$111.4 million). This represents a 46.5% year-over-year increase from RMB551.6 million in the same period of 2024, primarily due to continued international expansion. The company's gross margin improved to 28.6% in Q1 2025, up 2.7 percentage points year-over-year from 25.9% in Q1 2024, driven by a favorable revenue mix and cost optimization.
RLX achieved its sixth consecutive quarter of positive non-GAAP operating profit, reaching RMB105.8 million (US$14.6 million) in the first quarter of 2025, a significant increase from RMB23.3 million in Q1 2024. This improvement was largely due to incremental contributions from its international business and operating leverage. Net cash generated from operating activities was RMB207.2 million (US$28.5 million).
The company noted that 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. RLX has responded to the 'Big Puff' trend by launching new products with 14 to 20 milliliters of e-liquid, significantly more than traditional 2-milliliter products. As of March 31, 2025, total financial assets stood at RMB16,159.6 million (US$2,226.9 million).
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