RLX Technology Shares Tumbled 40% in Morning Trading
Tiger Newspress2022-03-11
RLX Technology shares tumbled 40% in morning trading. RLX reported fourth-quarter FY21 sales growth of 17.7% year-on-year, to $298.8 million (RMB1.9 billion), missing the consensus of $367.8 million.
The company attributed the revenue growth to higher sales to offline distributors, reflecting the distribution and retail network expansion.
Gross profit increased by 10.3% Y/Y to RMB765.5 million ($120.1 million), with the margin contracting 270 basis points Y/Y to 40.2%.
The operating margin was 28%, and operating income for the quarter was RMB534 million ($83.8 million), versus RMB(158.5) million loss last year.
The company held $2.33 billion in cash and equivalents as of December 31, 2021.
Non-GAAP net income per ADS was RMB 0.398 ($0.062).
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