RLX Technology Q1 Revenue Nearly Doubles to RMB1.59 Billion with 31.8% Margin
RLX•RLX Technology reported Q1 net revenue of RMB1.59 billion, up 96.2% year-over-year and 38.9% sequentially, with gross margin expanding to 31.8% from 28.6% and non-GAAP net income rising 41.4% to RMB357.3 million. International sales surpassed 70% of revenues, and the Nexus smart manufacturing facility is fully operational, boosting efficiency.
1. Q1 2026 Financial Results
In the first quarter, RLX Technology achieved net revenue of RMB1.59 billion, marking a 96.2% year-over-year increase and a 38.9% rise from the prior quarter. Gross margin expanded to 31.8% from 28.6% last year, non-GAAP operating margin reached 19.6% versus 13.3%, non-GAAP income from operations jumped 187.9% to RMB310.3 million, and non-GAAP net income climbed 41.4% to RMB357.3 million.
2. Global Expansion and Manufacturing Efficiency
Over 70% of net revenues came from international markets, underscoring the company’s global reach. The fully operational Nexus integrated smart manufacturing facility has enhanced production efficiency, optimized supply chain processes and contributed to margin expansion.
3. Balance Sheet Highlights
As of March 31, total financial assets stood at RMB14.53 billion (approximately USD2.1 billion), down from RMB15.73 billion in the previous quarter due to dividend distributions. Accounts receivable turnover days were 15, inventory turnover days were 32, and payable turnover days were 49, reflecting efficient working capital management.
4. Challenges and Strategic Outlook
The cancellation of the export tax rebate may marginally raise production costs, though long‐term effects are expected to be limited. Regulatory uncertainty in the US constrains entry plans, while European M&A remains cautious. Large-scale investment in the HMB heated tobacco category is deferred until market conditions improve.
