Shares of RLX Technology (NYSE: RLX) were up 14.6% as of 3:45 p.m. EDT Monday after the China-based e-vapor company announced better-than-expected quarterly earnings.

That's not to say RLX's headline numbers looked good at first glance; third-quarter revenue declined 59% year over year to 428.1 million Chinese yuan, also known as renminbi, or RMB ($58.7 million), translating to adjusted (non-GAAP) net income of RMB$197.5 million ($23.7 million), or RMM0.146 per American depositary share ($0.02). But most analysts were only expecting adjusted earnings of $0.01 per share on a slightly more modest 54% revenue decline.

RLX co-founder, Chairperson, and CEO Ying Wang noted the third quarter marked one year since the Chinese government implemented a series of new rules and regulations -- notably including flavor restrictions and the need to obtain state-sanctioned manufacturing licenses -- to strengthen oversight of e-cigarette products in the country.

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Source Fool.com