RLX Technology Reports Record First Quarter Net Revenues and Achieves Fifth Consecutive Quarter of Sequential Growth

RLX Technology reported a significant increase in net revenues for the first quarter of 2024, reaching RMB551.6 million ($76.4 million) compared to RMB188.9 million in the same period of 2023. The gross margin also improved to 25.9% from 24.2% in 2023. The company’s U.S. GAAP net income reached RMB132.6 million, an improvement from the U.S. GAAP net loss of RMB56.3 million in the first quarter of 2023.

Ying (Kate) Wang, co-founder, chairperson, and CEO of RLX Technology, emphasized the steady progress made in the first quarter of 2024, highlighting the positive development of the international business and the challenges faced due to regulatory changes in different regions.

Wang acknowledged that there is still progress to be made in China’s domestic market due to its regulatory crackdown on illegal products but expressed confidence that RLX Technology will continue to work with regulators to create a well-regulated and healthy e-vapor industry.

Chief Financial Officer Chao Lu attributed RLX Technology’s fifth consecutive quarter of sequential revenue growth to its resilient business model, effective regional strategies, and strong execution.

Lu expressed confidence that this growth trajectory will continue and that sustainable value will be delivered to stakeholders.

In the first quarter of 2024, non-GAAP basic and diluted net income per ADS were RMB0.166 (US$0.023) and RMB0.159 (US$0.022), respectively, an improvement from the same period in 2023 when the figures were RMB0.139 and RMB0