RLX Technology reported a remarkable increase in net revenues for the first quarter of 2024, totaling RMB551.6 million ($76.4 million), a significant leap from RMB188.9 million in the same period of 2023. The company’s gross margin also saw improvement, reaching 25.9 percent compared to 24.2 percent in the previous year. Impressively, RLX Technology shifted from a net loss to a net income, recording RMB132.6 million this quarter, in stark contrast to the U.S. GAAP net loss of RMB56.3 million last year.
Ying (Kate) Wang, the co-founder, chairperson, and CEO of RLX Technology, expressed optimism about the start of the year. “We kicked off 2024 with robust first-quarter results,” Wang stated in a recent announcement. She highlighted the company’s successful adaptation to the international market dynamics and their strategic regional adjustments. Despite facing regulatory challenges, RLX Technology is poised to continue its growth by tapping into emerging markets with prudence and a clear strategy.
On the domestic front, Wang noted the positive effects of China’s stringent regulatory measures against illegal vaping products, though she acknowledged that the journey towards a fully regulated market is ongoing. RLX Technology remains dedicated to working with regulatory bodies to foster a healthier e-vapor environment. As a leader in the e-vapor industry, the company is committed to enhancing its product offerings with high-quality, compliant, and innovative solutions designed to meet adult smokers’ preferences and contribute to the sector’s evolution.
Chao Lu, the Chief Financial Officer, emphasized the company’s financial resilience, marking RLX Technology’s fifth consecutive quarter of sequential revenue growth. “Thanks to our resilient business model and the effectiveness of our regional strategies, we are confident in our ability to maintain this positive trajectory and deliver sustained value to our stakeholders,” Lu commented.
In terms of earnings per ADS (American Depositary Share), the figures were impressive: RMB0.166 (US$0.023) and RMB0.159 (US$0.022) in the first quarter of 2024, up from non-GAAP basic and diluted net income per ADS of RMB0.139 and RMB0.136, respectively, during the same period in 2023.
Final Thoughts: A Bright Future Ahead for Vaping Innovation
RLX Technology’s first-quarter performance for 2024 illustrates the potential for innovation and growth within the vaping industry. As regulations continue to evolve, the commitment of companies like RLX to compliance and quality sets a benchmark for the sector. For those interested in the latest vaping technologies and trends, keeping an eye on RLX Technology’s developments might provide valuable insights into the future of vaping.
