RLX Technology Inc. (RLX) declined in the pre-market after announcing its unaudited fourth quarter and fiscal 2021 results. RLX values at $2.03, losing more than 13.25% compared to yesterday’s closing price. The stock closed at $2.34 at the end of the last trading session. The stock volume traded in the previous trading session was around 6.96 million shares. The current market cap of the company is about $3.15 billion.
RLX: Q4 and Fiscal 2021 Key Financials
- RLX Technology Inc.’s revenue in Q4 2021 was RMB1,904.4 million. It is an increase of 17.7% compared to the revenue of RMB1,618.5 million in Q4 2020.
- Fiscal 2021 revenue was RMB8.5 billion, more than the revenue of RMB3.8 billion in fiscal 2020.
- The company’s net income in Q4 2021 was around RMB494 million, compared to the net loss of RMB236million in Q4 2020.
- RLX’s net income in fiscal 2021 was around $2.02 billion, and profitability increased massively compared to the net loss of $128 million in fiscal 2020.
- The company’s basic and diluted earnings per share in Q4 were RMB 0.367, compared to the net loss of RMB 0.165.
- RLX’s EPS in fiscal 2021 is RMB 1.445 compared to the loss per share of RMB 0.089 in fiscal 2020.
RLX CEO’s Remarks
CEO Ying (Kate) Wang of RLX Technology said in the fourth quarter of 2021. We delivered strong operational and financial results. Our focus throughout the year was on streamlining distribution and retail channels, investing in scientific research, new product development, and digitalization upgrades. Revenue increased by 123.1% in fiscal 2020, further solidifying our position as an adult smokers’ favorite e-vapor brand. With this in mind, we are confident in the Company’s ability to grow in 2022 and beyond.
The company sales increased due to the online distributors. RLX is focusing on revenue growth and market share, due to which they are not focusing on profitability. Profitability is the second phase of such a growth strategy.