Core Insights - RLX Technology Inc. reported strong financial performance in Q3 2025, with net revenues increasing by 49.3% year-over-year to RMB 1.13 billion (US$158.6 million) [3][4] - The company emphasized its international expansion and innovation strategies, which have contributed to growth in key markets, particularly in Asia-Pacific and Europe [3][4] - The financial results reflect a recovery in Mainland China due to enhanced customs enforcement, which has improved the competitive environment for compliant players [3][4] Financial Performance - Net revenues for Q3 2025 were RMB 1,129.3 million (US$158.6 million), up from RMB 756.3 million in Q3 2024, driven by international business growth and recovery in Mainland China [4][11] - Gross profit reached RMB 352.6 million (US$49.5 million) with a gross margin of 31.2%, compared to RMB 206.0 million and 27.2% in the same period last year [5][11] - Non-GAAP income from operations more than doubled to RMB 187.8 million (US$26.4 million) from RMB 84.0 million in Q3 2024 [10][11] Operating Expenses - Operating expenses increased to RMB 259.3 million (US$36.4 million) in Q3 2025 from RMB 216.6 million in Q3 2024, primarily due to higher salaries and shipping costs [6][11] - Selling expenses rose significantly to RMB 132.3 million (US$18.6 million) from RMB 69.0 million, reflecting increased investment in sales and marketing [7][11] - General and administrative expenses decreased to RMB 85.7 million (US$12.0 million) from RMB 123.2 million, mainly due to reduced share-based compensation [8][11] Shareholder Returns - The company announced a cash dividend of US$0.1 per ordinary share, with cumulative returns to shareholders exceeding US$500 million through repurchases and dividends [18][19] - As of September 30, 2025, the company had repurchased 170 million ordinary shares for an aggregate amount of US$330 million [19] Balance Sheet and Cash Flow - As of September 30, 2025, total assets were RMB 17,430.9 million (US$2,448.5 million), with cash and cash equivalents totaling RMB 15,351.1 million (US$2,156.4 million) [15][30] - Net cash generated from operating activities was RMB 357.5 million (US$50.2 million) in Q3 2025 [15][34]