How are energy investors positioned?
Investing.com -- RLX Technology Inc (NYSE:RLX). reported second-quarter earnings that exceeded analyst expectations, driving shares up 8% premarket on Friday following the announcement.
The company posted non-GAAP earnings per share of RMB 0.234 for the second quarter of 2025, surpassing the consensus estimate of RMB 0.18. Revenue reached RMB 880.0 million (US$122.8 million), considerably higher than the analyst consensus of RMB 725 million and representing a 40.3% increase YoY from RMB 627.2 million in the same period of 2024.
The strong performance was primarily driven by the company’s international expansion efforts. Gross margin improved to 27.5% in the second quarter, up from 25.2% in the same period last year, which the company attributed to a favorable change in revenue mix and margin improvement in selected Asian countries.
"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," said Ms. Ying (Kate) Wang, Co-founder, Chairperson and CEO of RLX Technology.
Non-GAAP income from operations surged 147.6% YoY to RMB 116.2 million (US$16.2 million), compared with RMB 46.9 million in the same period of 2024. The company also announced a cash dividend of US$0.01 per ADS.
RLX maintained a strong balance sheet with cash and cash equivalents, along with various investments, totaling RMB 15,524.3 million (US$2,167.1 million) as of June 30, 2025.
Mr. Chao Lu, Chief Financial Officer, noted that the company’s "disciplined cost control and optimized product mix" contributed to the impressive growth in operating income, positioning RLX to "continue driving sustainable, profitable development."