RELX Reports Q1 2021 Net Profit of 610 Million Yuan
On June 2, RELX parent company RLX Technology Inc. (NYSE: RLX) announced its Q1 2021 financial results. Net revenue was RMB 2.4 billion (US$370 million), up 48.2% from RMB 1.62 billion in Q4 2020. Under non-GAAP, adjusted...
On June 2, YOOZ's parent company, RLX Technology Inc. (NYSE: RLX), announced its financial report for the first quarter of 2021.<\/span><\/div>
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The report shows that RLX Technology's net revenue for the first quarter of 2021 was 2.4 billion yuan (370 million USD), an increase of 48.2% compared to 1.62 billion yuan in the fourth quarter of 2020.<\/span><\/div>
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Adjusted net profit under non-GAAP was 610 million yuan (93.2 million USD), up 45.6% from 420 million yuan in the fourth quarter of 2020.<\/span><\/div>
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Additionally, RLX Technology also provided management expectations for the second quarter of 2021, forecasting net revenue to exceed 2.85 billion yuan, with adjusted net profit under non-GAAP expected to exceed 720 million yuan.<\/span><\/div>
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RLX Technology's founder, chairman, and CEO Wang Ying stated that at the beginning of 2021, the company's key performance indicators continued to grow. YOOZ will continue to invest in areas such as protecting minors, scientific research, technology and product development, supply chain and production capacity, distribution networks, and retail outlets. He believes that RLX Technology has sufficient capability to seize the growth potential of China's e-cigarette industry.<\/span><\/div>
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In the first quarter of 2021, RLX Technology established and put into use a quality laboratory to further enhance its product quality control capabilities. At the same time, it is constructing the second and third dedicated factories to increase production capacity.<\/span><\/div>
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RLX Technology has also implemented several measures to enhance its ability to protect minors, ensuring that business partners actively fulfill their responsibilities and strictly comply with relevant laws prohibiting the sale of RELX products to minors.<\/span><\/div>
CFO Lu Chao stated: The performance in the first quarter of 2021 exceeded previously announced management expectations, proving our strong capability to meet user demand for reliable, innovative, and trustworthy products. With rapid revenue growth and ongoing efforts to improve operational leverage, our gross margin and adjusted net profit margin under non-GAAP remained stable in the first quarter. We will continue to refine and optimize the RELX product portfolio and strengthen RELX's brand leadership in the market, further creating value for users.<\/span><\/div>
CFO Lu Chao stated: The performance in the first quarter of 2021 exceeded previously announced management expectations, proving our strong capability to meet user demand for reliable, innovative, and trustworthy products. With rapid revenue growth and ongoing efforts to improve operational leverage, our gross margin and adjusted net profit margin under non-GAAP remained stable in the first quarter. We will continue to refine and optimize the RELX product portfolio and strengthen RELX's brand leadership in the market, further creating value for users.<\/span><\/div>
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First Quarter Financial Summary:<\/span><\/div>
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Net revenue for the first quarter of 2021 increased by 48.2% to 2.4 billion yuan (370 million USD) compared to 1.62 billion yuan in the fourth quarter of 2020. The revenue growth was mainly due to the expansion of the distribution and retail network. <\/span><\/div>
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Gross profit for the first quarter of 2021 increased by 59.1% to 1.1 billion yuan (170 million USD) compared to 690 million yuan in the fourth quarter of 2020. <\/span><\/div>
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Sales expenses for the first quarter of 2021 increased by 48.2% to 290 million yuan (44.5 million USD) compared to 200 million yuan in the fourth quarter of 2020. This increase was mainly due to (i) increased employee salaries and benefits, (ii) increased brand material expenses, and (iii) increased transportation costs.<\/span><\/div>
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Management expenses for the first quarter of 2021 increased by 59.5% to 710 million yuan (110 million USD) compared to 450 million yuan in the fourth quarter of 2020. This increase was mainly due to (i) increased employee salaries and benefits, and (ii) increased share-based compensation expenses, partially offset by a decrease in legal and other consulting fees.<\/span><\/div>
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Research and development expenses for the first quarter of 2021 were 212 million yuan (32.3 million USD).<\/span><\/div>
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Under non-GAAP, adjusted net profit for the first quarter of 2021 was 610 million yuan (93.2 million USD).<\/span><\/div>
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Balance Sheet:<\/span><\/div>
As of March 31, 2021, RLX Technology had cash and cash equivalents, restricted cash, short-term bank deposits, short-term investments, and long-term bank deposits totaling 14.44 billion yuan (2.2 billion USD), compared to 3.42 billion yuan as of December 31, 2020. This increase was mainly due to the net funds raised from the company's initial public offering in January 2021.<\/span><\/div>
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