RLX 2022 Result: Income Down by 80% After China's New Regulation

Market
Mar.10.2023
Net revenues were RMB340.0 million (US$49.3 million), compared with RMB1,904.4 million in the same period of 2021, down by 37.41%.

Article by Vincent Yi; Edited by Ellesmere Zhu - On March 10th, RLX Technology Inc. (NYSE: RLX), a top Chinese domestic vaping brand, announced its unaudited financial results for the full year ended December 31, 2022, and its financial results for the fourth quarter of 2022 on the NASDAQ official website. 

 

The comprehensive financial report shows that the company's net revenue for the full year of 2022 was RMB 5.333 billion, a decrease of 37.41% compared to RMB 8.521 billion in 2021. The net profit for 2022 was RMB 1.409 billion, while the net profit for 2021 was RMB 2.028 billion.

 

Here are the financial highlights for Q4 of 2022:

    ● Net revenue was RMB 340 million (USD 49.3 million), compared to RMB 1.9044 billion in the same period of 2021, a decrease of 80.47% year-on-year.

 

    ● Gross margin was 43.6%, compared to 40.2% in the same period of 2021.

 

    ● US GAAP net loss was RMB 225.1 million (USD 32.6 million), while the US GAAP net profit for the same period of 2021 was RMB 494.4 million (USD 79.5 million).

 

    ● Non-US GAAP net income was RMB 249.7 million (USD 36.2 million), compared to RMB 536.5 million (USD 86.28 million) in the same period of 2021.

 

Below are the financial highlights for the full year of 2022:

    ● Net revenue for the full year of 2022 was RMB 53.328 billion (USD 7.732 billion), compared to RMB 85.210 billion (USD 13.7 billion) in the previous year.

 

    ● Gross margin for the full year of 2022 was 43.2%, compared to 43.1% in the previous year.

 

    ● US GAAP net revenue for the full year of 2022 was RMB 1.4087 billion (USD 204.2 million), compared to RMB 2.0281 billion (USD 326.2 million) in the previous year.

 

    ● Non-US GAAP net revenue for the full year of 2022 was RMB 1.5749 billion (USD 228.3 million), compared to RMB 2.2515 billion (USD 362.1 million) in the previous year.

 

The net revenue for the fourth quarter of 2022 was RMB 340 million (USD 49.3 million), with an average daily sales of approximately RMB 3.78 million (USD 608K), and monthly sales of approximately RMB 113 million (USD 18.2 million).

 


 

The gross profit for the fourth quarter of 2022 was RMB 148.3 million (USD 21.5 million), down 80.58% from RMB 765.5 million (USD 123.1 million) in the same period last year.

 

RLX explained the revenue situation in the 2022 financial report as follows:

 

    ● The decline in net revenue in the fourth quarter was mainly due to the significant impact of the epidemic and the implementation of the new national standards.


    ● The decline in gross profit in the fourth quarter was mainly due to the electronic cigarette consumption tax that took effect on November 1, 2022.


The gross margin for the fourth quarter of 2022 was 43.6%, up 3.4% from 40.2% in the same period last year. The increase was mainly due to the adjustment of effective factory prices, the improvement of supply chain efficiency, and favorable changes in the supply chain.

 

Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board, and CEO of RLX Technology, expressed confidence in the long-term growth of the e-cigarette industry. She stated that RLX is capable of adapting to the ever-changing market, seizing opportunities, and further fulfilling social responsibilities.

 

Reference:

[1] RLX Technology Announces Unaudited Fourth Quarter and Fiscal Year 2022 Financial Results

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