RLX Technology experienced a significant surge in its net revenues during the second quarter of 2026, driven primarily by its expanding international presence and successful integration of a prior acquisition. The company's strategic focus has shifted towards bolstering its global market share through a combination of targeted mergers and acquisitions, along with organic growth initiatives in burgeoning product segments such as modern oral nicotine pouches. This growth trajectory is supported by a robust financial strategy and a proactive approach to navigating regulatory complexities in various markets.
During the second quarter of 2026, RLX Technology reported net revenues of RMB 1.01 billion, marking a substantial 14.8% increase compared to the same period in the previous year. This impressive growth was largely attributed to the company's international expansion efforts and the positive impact of an acquisition completed in May 2025. International markets emerged as the primary growth engine, contributing approximately 70% to the total net revenues. Despite a sequential moderation in revenues from the first quarter, which was influenced by a one-time policy adjustment, the underlying demand in key international markets remained robust. The company's gross profit saw a significant rise of 47.8% year-over-year, reaching RMB 357.8 million, with the gross margin expanding to 35.4%. This improvement was a result of optimized supply chain management, enhanced manufacturing efficiency, and a favorable shift in product and geographic revenue mix. RLX Technology also achieved its eleventh consecutive quarter of positive non-GAAP operating profit, reflecting strong top-line growth, a beneficial product mix, and stringent cost controls.
A key strategic move in July 2026 involved a controlling investment in a leading Western European distributor of next-generation smoke-free products. This acquisition is expected to provide RLX Technology with an extensive offline network, serving over 30,000 retail points, and a proprietary B2B digital commerce platform connecting over 20,000 independent merchants. This move aims to generate significant operational and supply chain synergies, enhancing the company's route-to-market and digital commerce capabilities. Furthermore, RLX Technology is actively diversifying its product portfolio beyond e-vapor to include modern oral nicotine pouches, with specialized production lines being established in a new manufacturing hub in Southeast Asia. This facility is designed to improve supply chain resilience, optimize logistics, and support multi-category product expansion, ensuring cost efficiency and scalability. The company is also maintaining a cautious yet opportunistic stance regarding the U.S. market, awaiting clear regulatory pathways before committing to large-scale commercial rollouts.
In Mainland China, the company anticipates broadly flat sales for the full year, adopting a prudent approach in response to tightening domestic regulatory enforcement. This regulatory environment is viewed as a long-term positive, as it helps eliminate illicit trade and redirect consumer demand towards compliant brands. RLX Technology emphasizes its commitment to corporate sustainability and long-term value creation, highlighted by its 2025 ESG report, which details advancements in governance, product quality, youth access prevention, and ethical supply chain practices. With a robust balance sheet, comprising RMB 13.9 billion in total capital resources as of June 30, 2026, the company is well-positioned for future growth through financially disciplined capital allocation, focusing on organic growth initiatives, accretive M&A, and direct shareholder returns.
The company's financial results for the second quarter of 2026 underscore its solid operational performance and strategic foresight. The impressive revenue growth, coupled with expanding gross margins and consistent operating profitability, demonstrates RLX Technology's ability to execute its global expansion strategy effectively. By prioritizing international market penetration, diversifying its product offerings, and making strategic investments in distribution channels, the company is establishing a resilient and sustainable platform for long-term growth in the evolving smoke-free product industry.
