RLX 2023 ESG Report: Research, Economy, and Society Trends

In recent years, RELX (RELX Technology, NYSE: RLX), a well-known company focused on the electronic vaporizer field, has experienced significant development and change. Recently, RELX released its 2023 Environmental, Social, and Governance (ESG) report (referred to as "Report 2023"), and 2Firsts compared it to the 2022 ESG report (referred to as "Report 2022"). The comparison revealed that RELX has seen varying degrees of growth or reduction in areas related to scientific research, economy, and social responsibility over the past two years.

Research: R&D Investment is Stagnating with Increase in Global Patent Numbers

In the rapidly changing e-cigarette market, research capability has become a key driving force for companies' continued development. By comparing the changes in research indicators shown in the "2022 Report" and "2023 Report" of RELX, 2FIRSTS clearly sees the trends in R&D investment, external collaborative research projects, and the number of global patent applications.

Specifically, as of the end of April 2023, RELX's cumulative research and development investment remains consistent with the numbers shown in the "Report 2022", both at 800 million yuan; furthermore, the number of external scientific research projects conducted by RELX has increased from 13 in 2021 to 17 by April 2023; the number of global patent applications has also increased from 610 in June 2022 to 900 by April 2023.

Economy: Retail Sector Shrinks, Industry Ecosystem Cleansed

With the continuous tightening of domestic and foreign regulatory policies, increasingly fierce market competition, and significant improvement in consumer health awareness, RELX's economic environment faces transformation. By comparing the economic indicators shown in "Report 2022" and "Report 2023" by RELX, it is evident that there has been a reduction in market size and the detection of counterfeit and shoddy products.

Firstly, as of the end of April 2023, the number of national stores carrying RELX products has decreased from 24,000 at the end of 2021 to 20,000, resulting in a 16.7% reduction in retail market size. The company is facing the impact of multiple factors such as policy changes, intensified competition, and market adjustments.

In addition, RELX in the "Golden Shield Action" - assisting the police in handling counterfeit product cases, the number of counterfeit and copycat products seized by the company decreased from 797,891 in 2021 to 54,600 in 2022, a decrease of 93.1% year-on-year, showing significant results. It can be seen that with the strengthening of special law enforcement efforts, the promotion of corporate compliance operations, and the improvement of consumer awareness, the number of counterfeit and copycat e-cigarette products in the market has significantly decreased, and the domestic e-cigarette industry ecosystem has been purified.

Social: Employment Opportunities Reduced, Expansion of Environment Protection Projects

When it comes to driving industry chain development and social responsibility, a comparison of the social indicators in the "Report 2022" and "Report 2023" shows that RELX both needs reflection and improvement, while also making significant progress in some areas.

Firstly, as of the end of April 2023, RELX effectively drove approximately 120,000 job opportunities in the upstream and downstream of the industry chain. Compared to its industry performance at the end of 2021, where it drove 370,000 job opportunities, the number of positions has been significantly reduced by 67.7%.

In addition, the "Empty Pod, New Life" environmental recycling program launched by RELX is an important environmental initiative aimed at reducing the environmental pollution caused by e-cigarette pods, while promoting the recycling of resources. As of April 2023, the "Empty Pod, New Life" environmental recycling program has been implemented in 297 cities nationwide, compared to 188 cities in June 2022, showing an expansion of approximately 58% for the project.