On May 17th, RLX Technology (NYSE: RLX) released its financial report for the first quarter of 2023, which ended on March 31st. The report revealed that the company's net revenue for the first quarter was CNY 188.9 million (approximately USD 27.5 million), representing an 89% year-on-year decrease from CNY 1.7145 billion in the same period last year. The company also reported a net loss of CNY 56.3 million (approximately USD 8.2 million), compared to a net profit of CNY 687.1 million in the same period last year.
Wuxin Technology's Co-Founder, Chairman, and CEO, Wang Ying, stated that their main focus in the first quarter of 2023 is to optimize product supply under the new regulatory framework. While they are developing a diverse range of approved products to meet customers' needs, the prevalence of illegal products presents a short-term challenge and disrupts the industry's recovery pace. The intensified measures of regulatory authorities to crack down on illegal products are encouraging, and they hope that these actions can effectively support the creation of a fair and orderly market environment, encouraging law-abiding companies, such as Wuxin Technology, to return to sustainable growth. If illegal products can be eliminated, they believe adult users will gradually adapt to products that meet national standards. As a trusted e-cigarette brand for adult smokers, they will continue to strive to provide high-quality and customer-oriented products and explore growth opportunities in the constantly developing industry.
According to CFO Lu Chao of Fogcore Technology, "We faced incredible challenges in the first quarter as illegal seasoning products caused users to slowly transition to products that meet national standards, resulting in our total revenue decreasing to 188.9 million yuan. We are pleased to see improvement in the market conditions since regulatory agencies took strict measures to crack down on illegal products since March 2023, which led to signs of recovery in our sales. Looking ahead, we will continue to improve operational efficiency, and believe that our profitability will gradually recover. Our flexible business model and strong cash position will support us in navigating market dynamics, enabling us to provide sustainable value to our stakeholders as we regain momentum in the industry.
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RLX Technology has released its unaudited financial results for the first quarter of 2023.
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