RLX Technology's 2025 Q1: Unpacking Contradictions in Expansion, Regulation, and Product Strategy

Overseas expansion strategy, regulatory strategy and adaptation, product evolution and market trends, competitive landscape and product strategy, overseas expansion strategy and market entry are the key contradictions discussed in RLX Technology's latest 2025Q1 earnings call.



Regulatory and Market Trends Impacting Revenue:
- RLX Technology reported a 47% year-over-year increase in net revenues to RMB 808 million in Q1 2025, despite a challenging macro and regulatory environment.
- The growth was driven by regulatory shifts, such as bans on disposable e-vapor products or enhanced enforcement in certain countries, which prompted distributors to adopt more cautious approaches.

Big Puff Trend and Market Dynamics:
- The big puff trend, characterized by rechargeable cartridge-based or disposable e-vapor products with larger e-liquid volumes, has gained global popularity, attracting form