RLX Technology reported net revenue of RMB 551.6 million ($76.4 million) for the first quarter of 2024, up from RMB 188.9 million in the same period of 2023. Gross margin increased to 25.9 percent compared to 24.2 percent in the first quarter of 2023. The US GAAP net profit amounted to RMB 132.6 million, while the US GAAP net loss for the same period of 2023 was RMB 56.3 million.
“2024 started with a strong first quarter,” Ying (Kate) Wang, co-founder, chairman and CEO of RLX Technology, said in a statement. “Our international business is developing well as we refine our regional strategy. Despite the challenges posed by regulatory changes in various regions, we continue to identify opportunities and build on our core strengths. Tap into potential markets with caution.
“Domestically, we are encouraged by the positive impact of China's recent regulatory crackdown on illegal products, but there is still much progress to be made. As the trusted e-vapor brand for adult smokers, we are committed to championing a healthy, regulated e-vapor industry. We are dedicated to optimizing our product portfolio with innovative products.
According to Chief Financial Officer Qiao Lu, the first quarter marked RLX Technology's fifth consecutive quarter of sales growth. “We are confident that our resilient business model, effective regional strategy and consistent strong execution will enable us to maintain this growth trajectory and deliver sustainable value to our stakeholders,” he said. .
ADS[2] Net profit for the first quarter of 2024 was RMB 0.166 (US$ 0.023) and RMB 0.159 (US$ 0.022), respectively. In contrast, non-GAAP net income per ADS was RMB0.139 and diluted net income was RMB0.136. Same period in 2023.
