RELX Technology Q3 Earnings: Net Profit Up 129% Quarter on Quarter to RMB 200 Million, Down 39.9% Ye

RLX Technology's net revenue for the third quarter of 2023 was RMB 430 million (US$58.67 million), up 13.2% quarter on quarter and down 59.0% year on year. On a non-GAAP basis, adjusted net profit for the third quarter was RMB 200 million (US$27.07 million), up 129.0% quarter on quarter and down 39.9% year on year.

News Flash, November 13: RLX Technology Inc. (NYSE: RLX) announced its unaudited financial results for the third quarter of 2023.
 

The financial report shows that RLX Technology's net revenue for the third quarter of 2023 was RMB 430 million (US$58.67 million), up 13.2% quarter on quarter and down 59.0% year on year. On a non-GAAP basis, adjusted net profit for the third quarter was RMB 200 million (US$27.07 million), up 129.0% quarter on quarter and down 39.9% year on year.

Summary of financial results for the third quarter of 2023:

• Net revenue for the third quarter of 2023 was RMB 428.1 million (US$58.7 million), compared with RMB 1,044.4 million in the same period of 2022;

• Gross margin for the third quarter of 2023 was 24.7%, compared with 50.0% in the same period of 2022;

• GAAP net profit for the third quarter of 2023 was RMB 172.7 million, compared with RMB 505.2 million in the same period of 2022;

• Non-GAAP net profit for the third quarter of 2023 was RMB 197.5 million (equivalent to US$27.1 million), compared with RMB 328.6 million in the same period of 2022.

RLX Technology founder, Chairperson, and CEO Wang Ying said: "One year after the implementation of China's national standards for vaping devices, we have continued to optimize our product portfolio in line with regulatory requirements and remain committed to providing adult smokers with high-quality compliant products. However, due to the existence of a gray-market supply chain for illegal flavored products and consumers' limited understanding of compliant products, users have been switching to standard-compliant products more slowly than expected. We believe these challenges are short-term. As awareness of the harm caused by illegal products increases and regulatory enforcement continues to strengthen, the industry is expected to develop in a healthier and more orderly way, more users will place their trust in compliant products, and the transition will gradually be completed."

RLX Technology CFO Lu Chao said that the company's operating cash flow has remained positive for two consecutive quarters, demonstrating the resilience of its business under the new regulatory environment.