RLX stock plummeted 8.89% in the pre-market trading session at the price of $5.23 despite no update from the company. RLX Technology Inc. is a leading branded e-vapor company in China. It develops e-vapor products to leverage in-house technology, product development capabilities, and in-depth insights into adult smokers’ needs.
Vaping Company RLX Technology Made Cement from Used Pods
On 9th September 2021, RLX published that its Pods Recycling project had invested 20 million yuan to recycle the used e-liquid pods in China. These used e-liquid pods turned into cement in its recent event on 2nd September 2021. RLX together with China Siyuan Foundation for Poverty Alleviation will donate the cement to China’s rural areas to build infrastructures. The Pods Recycling project will officially launch in September starting from Beijing. It will gradually cover 10 Chinese cities by next February. The project aims to cover all RELX-branded stores in China by the end of 2022. Guo Guangdong, Head of Public Relations and External Affairs of RLX, remarked that their goal was crystal clear the very first time they started the project. They wanted a solution that efficiently recycles the materials and creates more value.
Announcement of Unaudited Second Quarter 2021 Financial Results
On 20th August 2021, RLX announced its unaudited financial results for the second quarter ended 30th June 2021. CEO Ms. Ying Wang remarked that their business continued to develop further as they improved underage protection and product safety. They strive to turn the company into a trusted brand with state-of-the-art products, industry-leading technologies, and scientific advances. RLX has enhanced investments in scientific research to strengthen their distribution and retail network. They have also improved supply chain and production capabilities to create value for users and shareholders, he added.
Second Quarter 2021 Financial Highlights
RLX reported an increase in net revenues by 6.0% to RMB2,541.4 million (US$393.6 million) in the second quarter of 2021. Total revenues were RMB2,398.5 million in the first quarter of 2021. This rise resulted due to higher net revenues from sales to offline distributors. Gross profit increased by 3.8% to RMB1,146.5 million (US$177.6 million) in the second quarter of 2021. The gross profit was RMB1,104.1 million in the first quarter of 2021.
RLX stock reported an increase in gross margin by 45.1% in the second quarter of 2021, compared to 46.0% in the first quarter of 2021. GAAP net income was RMB824.3 million (US$127.7 million) in the second quarter of 2021. The GAAP net loss was RMB267.0 million in the first quarter of 2021. Basic and diluted net income per share (ADS) were RMB0.595 (US$0.092) and RMB0.591 (US$0.092) in the second quarter of 2021. In the first quarter of 2021, GAAP basic and diluted net loss per ADS were RMB0.174.