Regulatory Environment - The company operates in China through PRC subsidiaries and the consolidated VIE, which is subject to foreign investment restrictions[30]. - The company faces risks related to the enforcement of its contractual arrangements, which may not be as effective as direct ownership[34]. - The Holding Foreign Companies Accountable Act (HFCAA) poses a risk of trading prohibition if the company's auditor is not subject to PCAOB inspections for two consecutive years[36]. - The PCAOB previously determined it could not inspect auditors in mainland China and Hong Kong, impacting the company's compliance status under the HFCAA[36]. - The company is subject to evolving PRC laws and regulations, which could materially affect its operations and financial performance[35]. - Future changes in PRC regulations regarding foreign investment could lead to severe penalties or operational changes for the company[35]. - The company may face sanctions if it fails to obtain necessary approvals for future offshore offerings, which could adversely affect its operations and financial condition[38]. - The regulatory environment for e-vapor products in China has significantly changed, including prohibitions on sales to minors and online sales, impacting revenue generation from certain distribution channels[82]. - The company has adapted its product design and specifications to comply with the National Standards for E-Cigarettes, effective October 1, 2022[91]. - The E-Cigarettes Administrative Measures impose a flavor ban on e-cigarettes, significantly affecting product offerings and potentially reducing revenues and competitiveness[94]. - The company may require CSRC approval for future capital raising activities, which could delay or complicate offshore offerings[150]. - The 2024 Negative List requires domestic companies in prohibited businesses to obtain governmental approval for overseas offerings, affecting their operational and financial conditions[158]. Financial Performance - The consolidated variable interest entity (VIE) accounted for all total revenues in 2022, and a significant portion of total revenues for 2023 and 2024[30]. - For the years ended December 31, 2022, 2023, and 2024, RLX Technology Inc. provided loans of RMB4,313.9 million, RMB3,226.1 million, and RMB4,357.1 million (US$596.9 million) respectively[40]. - A cash dividend of US$0.01 per ordinary share was approved on November 15, 2024, payable in December 2024[41]. - Future cash dividends will depend on the board's discretion and various financial conditions[42]. - Total third-party revenues for the year ended December 31, 2024, reached RMB 2,748,576 thousand, a significant increase from RMB 1,586,397 thousand in 2023, representing a growth of approximately 73%[50]. - Net income attributable to RLX Technology Inc. for 2024 was RMB 551,837 thousand, compared to RMB 534,328 thousand in 2023, indicating a slight increase of about 3.5%[50]. - The company reported total assets of RMB 16,871,049 thousand as of December 31, 2024, up from RMB 16,871,049 thousand in 2023, reflecting stable asset management[54]. - Cash and cash equivalents amounted to RMB 5,593,492 thousand as of December 31, 2024, compared to RMB 5,332,779 thousand in 2023, showing an increase of approximately 4.9%[54]. - The company incurred third-party operating expenses of RMB 833,662 thousand in 2024, which is a decrease from RMB 884,424 thousand in 2023, representing a reduction of about 5.8%[50]. - The company reported other income of RMB 671,489 thousand for 2024, compared to RMB 1,037,698 thousand in 2023, reflecting a decrease of approximately 35.3%[50]. - The company reported a total comprehensive income of RMB 740,154 for 2023, down from RMB 2,340,735 in 2022[64]. - Net revenues for 2023 were RMB 1,586,397, a decrease of 70.3% compared to RMB 5,332,779 in 2022[64]. - Net income for the years ended December 31, 2022, 2023, and 2024 was RMB 1,408.7 million, RMB 541.0 million, and RMB 564.3 million (US$77.3 million), respectively[75]. Operational Challenges - The company faces risks related to the evolving regulatory landscape, which may affect its ability to maintain profitability and operational efficiency[76]. - The approved manufacturing capacity under the Tobacco Monopoly Licenses may limit the quantity of e-cigarette products that can be produced, impacting market supply[88]. - The company may experience challenges in obtaining timely renewals of licenses and maintaining compliance with regulatory requirements, which could adversely affect operations[85]. - The company is required to sell e-cigarettes through qualified distributors with wholesale licenses via the National Transaction Platform, which may impact product availability and distribution[129]. - There is uncertainty regarding the ability of retailers to obtain sufficient products from qualified distributors, which could affect the supply of e-vapor products to users in China[131]. - The company faces potential product liability claims and user complaints that could adversely impact its reputation and financial performance[117]. - Negative publicity related to product quality or regulatory compliance may discourage users from purchasing the company's products[127]. - The company has undertaken initiatives to combat underage usage and counterfeiting, but success is not guaranteed[123]. - The company has limited product liability insurance, which may not be adequate to cover potential claims[119]. - The overall regulatory landscape for e-vapor products remains uncertain, which could materially impact market development and growth prospects[115]. - The company faces risks associated with logistics and supply chain disruptions, including customs delays and rising freight costs, which could materially impact operations[195]. - The company is vulnerable to natural disasters and public health crises, which could disrupt operations and affect financial conditions[169]. Market Expansion - The company successfully expanded into three additional markets in the Asia-Pacific region in 2024, enhancing its international growth strategy[39]. - The company plans to continue its international expansion despite facing various risks associated with regulatory changes and market conditions[70]. - The company plans to expand internationally, having entered three new markets in the Asia Pacific region in 2024 after acquiring SS North Asia Holding Limited[104]. - The international expansion strategy includes collaboration with established partners, acquiring brands, and setting up joint ventures[104]. - A significant portion of the company's revenue in 2024 was generated from supplying e-vapor products to Relx Inc., which operates in overseas markets[109]. - The e-vapor market in China and globally is still in its early stages, with low penetration among adult smokers and uncertainties regarding regulatory developments and market acceptance[114]. Supply Chain and Production - The company relies on a limited number of suppliers and manufacturers, with a significant portion of products produced at an exclusive plant in China, which could adversely affect operations if disruptions occur[174]. - By December 31, 2024, all suppliers and manufacturers are required to obtain licenses under the E-Cigarettes Administrative Measures, which may impact production capabilities if not maintained[176]. - The implementation of the E-Cigarettes Administrative Measures may limit the quantity of e-vapor products produced, potentially leading to supply shortages against market demand[178]. - The exclusive production plant is located on leased properties of over 23,575 square meters, and failure to renew leases could disrupt production activities[186]. - Labor shortages in China could affect production at the e-liquid plant, potentially increasing costs and impacting profitability if not managed[190]. - The company faces risks related to warehousing and logistics, including potential disruptions from natural disasters or regulatory challenges to leased properties[191]. - Third-party logistics service providers are essential for product delivery, and any disruptions in their operations could hinder timely delivery to distributors[192]. - Any failure of suppliers or manufacturers to meet quality and production standards could materially impact the company's business and financial results[183]. Intellectual Property and Cybersecurity - The company relies on a combination of trademark, patent, copyright, and trade secret protections to safeguard its intellectual property rights[220]. - The company faces challenges in effectively protecting its intellectual property rights due to potential breaches of confidentiality agreements[222]. - The company may be subject to intellectual property infringement claims from third parties, which could disrupt operations and incur significant expenses[223]. - The company has not experienced any material breach of its cybersecurity system as of the date of the annual report[215]. - The company is subject to routine inspections by PRC governmental authorities regarding privacy protection and data security[215]. - The company has obtained user consent for data usage and has implemented technical measures for data security[219]. - Compliance with evolving PRC laws on personal information protection may incur additional costs and liabilities for the company[218]. Competition and Market Dynamics - Competition in the e-vapor industry is intense, with competitors potentially having greater resources and market advantages, which may affect market share and profitability[202]. - The company has adapted its business strategies in response to new regulations effective from October 1, 2022, but faces uncertainties regarding user acceptance of new products[206]. - Misconduct by employees or partners could harm the company's brand and reputation, leading to potential liability and negative publicity[211]. - Advertising restrictions imposed by PRC laws limit the company's ability to promote its products, potentially reducing brand awareness and revenue[213]. - The company is exploring new initiatives and strategies for international market expansion, which may require significant investment and could affect profitability if unsuccessful[207].

Group 1 - The Schall Law Firm is investigating claims on behalf of investors of RLX Technology Inc. for potential violations of securities laws [1] - The investigation is centered on whether RLX issued false or misleading statements and failed to disclose important information to investors [2] - RLX experienced a downgrade from buy to neutral by Citi on March 17, 2025, due to overseas regulatory challenges and a negative shift in product mix, leading to a 13.27% drop in ADRs on the same day [2]

Group 1 - RLX Technology is identified as both a growth and recovery story stock that is heavily mispriced in the market [1] - The company is perceived by the market primarily as a domestic recovery story, despite facing strict crackdowns by the Chinese government [1] - There is a belief that RLX Technology offers a good investment opportunity beyond its current market perception [1]

NEW YORK, March 26, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether RLX and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On March 17, 2025, Citi ...

Financial Data and Key Metrics Changes - For the full year 2024, the company's revenues reached RMB 2.7 billion, representing a 73.3% year-over-year growth, driven by international expansion [19] - In Q4 2024, revenues were RMB 813.5 million, a 56.3% increase year-over-year, positively impacted by seasonal sales during the Christmas holiday [19] - The full-year gross profit margin improved to 26.4%, a two percentage point increase, while Q4 gross profit margin rose by 3.3 percentage points to 27.2% [21] - The company recorded an operating loss of RMB 107 million for 2024, but achieved a non-GAAP operating income of RMB 262.5 million for the year [22] - Operating cash inflow for Q4 2024 was RMB 497 million, up from RMB 305 million in the same quarter of the previous year [24] - Total financial assets as of December 31, 2024, stood at RMB 15.9 billion [25] Business Line Data and Key Metrics Changes - The company launched two new open system e-vapor product series, RLX Prime and Spin Mini, in Southeast Asia, which received positive feedback [12] - The operational strategy involved tailoring product portfolios and business strategies to local markets, enhancing distribution efficiency [13] Market Data and Key Metrics Changes - The company noted a slight slowdown in product innovation as the industry matures, with a shift from blockbuster products to refined operations and product optimization [15][16] - Regulatory shifts across multiple markets were acknowledged, with the company viewing these changes as opportunities to strengthen its competitive position [14] Company Strategy and Development Direction - The company focused on enhancing its organizational structure and business models to support international growth while maintaining stability in the China market [8] - Investment in team upgrades and expertise in FMCG, product development, and regulatory compliance was emphasized as crucial for long-term success [11] - The company aims to return a significant portion of non-GAAP net profits to shareholders through share repurchase and cash dividends [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive amid evolving regulations and market conditions, emphasizing agility in adapting strategies [14][48] - The company anticipates meaningful market share growth in sales volume and moderate revenue growth, with expectations for improved non-GAAP operating margins [16][45] Other Important Information - The company received a double A rating from MSCI in 2024, the highest ESG rating in the global tobacco industry, reflecting its commitment to social responsibility [17] Q&A Session Summary Question: What new initiatives will be implemented to drive market share gains in overseas markets in 2025? - The company plans to tailor product portfolios and business strategies to local market characteristics, focusing on high-potential sales channels and collaborating with knowledgeable distribution partners [32][34] Question: Any updates regarding shareholder return from 2025 onwards? - The company intends to continue returning a significant portion of non-GAAP net profits to shareholders, having returned $332 million cumulatively, including $305 million for share repurchases [37] Question: Could you share your detailed expansion plan for this year and any growth targets? - The company plans to expand to more countries in 2025, with several countries in Asia Pacific and Europe under consideration, while making informed decisions based on macroeconomic and regulatory developments [42] Question: What are your views on potential regulatory changes and how will you address these challenges? - The company is proactively evaluating its product portfolio and adjusting strategies to ensure compliance with evolving regulations, which vary by region [46][48] Question: Will open system e-cigarettes benefit from the ban on disposable e-cigarettes in Europe? - The company believes open system products will see stable demand growth in price-sensitive markets, focusing on user experience and affordability [52] Question: Do you plan to enter the HNB market? - The company currently has no plans to enter the HNB market, prioritizing e-vapor products where it holds a competitive advantage [55]

RLX Technology Inc. (NYSE:RLX) Q4 2024 Earnings Conference Call March 14, 2025 8:00 AM ET Company Participants Sam Tsang - Head of Capital Markets Chao Lu - CFO Conference Call Participants Christine Peng - UBS Lydia Ling - Citi Operator Hello, ladies and gentlemen. Thank you for standing by for the RLX Technology Inc. Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. To ...

Exhibit 99.1 RLX Technology Announces Unaudited Fourth Quarter and Fiscal Year 2024 Financial Results SHENZHEN, March 14, 2025 /PRNEWSWIRE/ - 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 fourth quarter and the fiscal year ended December 31, 2024. Fourth Quarter 2024 Financial Highlights Fiscal Year 2024 Financial Highlights "2024 was a remarkable year for RLX, highlighted by tremendous p ...

Core Viewpoint - RLX Technology Inc. reported significant growth in its financial results for the fourth quarter and fiscal year 2024, driven by international expansion and innovative product offerings, while focusing on sustainable growth and shareholder returns moving forward [2][13]. Financial Highlights - Fourth quarter net revenues reached RMB 813.5 million (US$ 111.4 million), a 56.3% increase from RMB 520.5 million in Q4 2023 [3][14]. - Full-year revenue for 2024 was RMB 2.7 billion (US$ 376.6 million), representing a 73.3% increase from RMB 1.6 billion in 2023 [13][19]. - Gross profit for Q4 2024 was RMB 219.9 million (US$ 30.1 million), up from RMB 123.4 million in Q4 2023 [3][14]. - The gross margin improved to 27.0% in Q4 2024 from 23.7% in the same period of 2023 [4][14]. Operating Expenses - Operating expenses in Q4 2024 were RMB 231.5 million (US$ 31.7 million), down from RMB 263.9 million in Q4 2023, primarily due to fluctuations in share-based compensation expenses [5][14]. - Selling expenses increased to RMB 45.4 million (US$ 6.2 million) in Q4 2024, compared to RMB 38.0 million in Q4 2023, driven by higher salaries and branding expenses [6][14]. - General and administrative expenses decreased to RMB 153.7 million (US$ 21.1 million) in Q4 2024 from RMB 204.0 million in Q4 2023 [7][14]. Profitability - The company achieved a non-GAAP operating profit of RMB 112.6 million (US$ 15.4 million) in Q4 2024, marking a return to profitability for the full year [2][14]. - U.S. GAAP net income for Q4 2024 was RMB 127.4 million (US$ 17.5 million), down from RMB 216.0 million in Q4 2023 [9][14]. - Non-GAAP net income for Q4 2024 was RMB 251.5 million (US$ 34.5 million), compared to RMB 432.6 million in the same period of 2023 [11][14]. Cash Flow and Balance Sheet - As of December 31, 2024, the company had cash and cash equivalents totaling RMB 15,870.8 million (US$ 2,174.3 million), an increase from RMB 15,361.7 million as of September 30, 2024 [12][14]. - Net cash generated from operating activities in Q4 2024 was RMB 497.0 million (US$ 68.1 million) [12][14]. Shareholder Returns - The company repurchased approximately US$ 109.2 million of its ordinary shares during fiscal year 2024 and returned approximately US$ 122.9 million to shareholders through share repurchases and cash dividends [21][14].

Core Viewpoint - RLX Technology Inc. is set to report its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, on March 14, 2025, before U.S. markets open [1] Group 1 - The earnings conference call will take place at 8:00 AM U.S. Eastern Time on March 14, 2025, which corresponds to 8:00 PM Beijing/Hong Kong Time on the same day [2] - Dial-in details for the earnings conference call have been provided for participants in the United States, International, Hong Kong, and Mainland China [2] - Participants are advised to connect to the call 10 minutes prior to the scheduled start time using the provided Participant Code [2] Group 2 - A live and archived webcast of the conference call will be available on the Company's investor relations website [3] - A replay of the conference call will be accessible approximately two hours after the call concludes until March 21, 2025, with specific telephone numbers provided for access [3] - RLX Technology Inc. is recognized as a leading global branded e-vapor company, utilizing strong in-house technology and product development capabilities to meet adult smokers' needs [3]