RLX Technology shares moved higher on Wednesday. The stock rose 3.5% after the company shared a new update.
The company said it is extending its share buyback plan. The program will now run for another 24 months. It will stay active until December 31, 2027.
RLX is a global e vapor brand. Its board of directors approved the extension. The buyback plan was first launched in December 2021. It was already extended once in December 2023.
Under the plan, RLX can buy back up to $500 million worth of shares. These shares are traded as American Depositary Shares in the U.S.
By the end of 2025, the company had already bought back a large portion. Around 170 million shares were repurchased. The total amount spent was about $330 million.
This means around $170 million is still available under the program. With the new extension, RLX can use this remaining amount over the next two years.
The company said it can buy shares in different ways. This includes buying from the open market. It can also use private deals or block trades. Other legal methods may be used as well.
The board will continue to review the plan. It may change the size or terms if needed.
RLX said it will use its existing cash to fund the buybacks.
