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• Full Year Revenue: RMB2.7 billion, a 73.3% year-over-year increase.

• Fourth Quarter Revenue: RMB813.5 million, a 56.3% year-over-year increase.

• Full Year Gross Profit Margin: 26.4%, a 2-percentage-point increase.

• Fourth Quarter Gross Profit Margin: 27.2%, a 3.3-percentage-point year-over-year increase.

• Full Year Operating Loss: RMB107.1 million.

• Full Year Non-GAAP Operating Income: RMB262.5 million.

• Fourth Quarter Non-GAAP Operating Profit: RMB112.6 million.

• Fourth Quarter Operating Cash Inflow: RMB497 million, up from RMB305 million in the previous year.

• Inventory Turnover Days: 25 days in the fourth quarter of 2024.

• Total Financial Assets as of December 31, 2024: RMB15.9 billion.

• Shareholder Returns in 2024: Approximately USD122.9 million, including USD109 million through share repurchase and USD14 million through cash dividends.

• Warning! GuruFocus has detected 5 Warning Signs with RLX.

Release Date: March 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• RLX Technology Inc (NYSE:RLX) achieved its seventh consecutive quarter of sequential revenue growth, demonstrating resilience and effective global expansion strategies.

• The company reported a 73.3% year-over-year revenue growth for 2024, driven by successful international market expansion.

• RLX Technology Inc (NYSE:RLX) improved its full-year gross profit margin to 26.4% in 2024, marking a 2-percentage-point increase.

• The company received an AA rating from MSCI, the highest ESG rating in the global tobacco industry, highlighting its commitment to social responsibility.

• RLX Technology Inc (NYSE:RLX) returned approximately USD122.9 million to shareholders in 2024 through share repurchase programs and cash dividends, reflecting strong shareholder value commitment.

Negative Points

• RLX Technology Inc (NYSE:RLX) recorded an operating loss of RMB 107.1 million for 2024, indicating challenges in achieving profitability.

• The company faces regulatory shifts across multiple international markets, which present challenges and uncertainties.

• There is a slight slowdown in product innovation as the industry enters a more mature stage, potentially impacting future growth.

• The macroeconomic environment, political stability, and regulatory landscapes remain unpredictable, affecting expansion plans.

• Inventory turnover days increased to 25 days in Q4 2024, up from 16 days in Q3 2024, indicating potential inefficiencies in inventory management.

Q & A Highlights

Q: What are the new initiatives RLX Technology plans to implement in 2025 to drive market share gains in the overseas market? A: Sam Tsang, Head of Investor Relations, explained that RLX will align its product portfolio and business strategies with the unique characteristics of each market. This includes developing tailored flavor portfolios and product formats based on local preferences. The company will also adopt dynamic route-to-market strategies, focusing on high-potential sales channels and collaborating with distribution partners who have deep local knowledge. Data-driven insights will guide decision-making to ensure products align with local preferences and purchasing habits.