R.I.O. Technology's Q2 2024 financial report: Net profit increased by 147.1% year-on-year to RMB 210 million, with international expansion driving performance improvement

R.I.O. Technology's Q2 2024 financial report: Net profit increased by 147.1% year-on-year to RMB 210 million, with international expansion driving performance improvement

RLX Technology's net income for the second quarter of 2024 was RMB 627.2 million (US$86.3 million), a month-on-month increase of 13.7% and a year-on-year increase of 65.9%, mainly attributed to its international expansion; under non-U.S. GAAP, the adjusted net profit for the second quarter was RMB 210 million (US$29.32 million), a month-on-month increase of 2.7% and a year-on-year increase of 147.1%.

 

On August 16, RLX Technology Inc. (NYSE: RLX) announced its unaudited financial report for the second quarter of 2024 (Q2).

 

The financial report shows that RLX Technology's net income for the second quarter of 2024 was RMB 627.2 million (US$86.3 million), a month-on-month increase of 13.7% and a year-on-year increase of 65.9%, mainly attributed to its international expansion; under non-U.S. GAAP, the adjusted net profit for the second quarter was RMB 210 million (US$29.32 million), a month-on-month increase of 2.7% and a year-on-year increase of 147.1%.

 

The main financial highlights for the second quarter of 2024 are as follows:

Gross profit was RMB 157.9 million (US$21.7 million), compared with RMB 98.5 million in the same period of 2023;

Operating expenses were RMB 191.2 million (US$26.3 million), compared with RMB 47.2 million in the same period of 2023;

Selling expenses were RMB 62.2 million (US$8.6 million), compared with RMB 45.2 million in the same period of 2023, mainly due to increased equity incentive expenses;

Gross profit margin was 25.2%, compared with 26.1% in the same period of 2023. The decline was mainly due to unfavorable changes in the revenue structure;

U.S. GAAP net income was RMB 134.9 million (US$18.6 million), compared with RMB 204.7 million in the same period of 2023;

Non-GAAP net income was RMB 213.1 million (US$29.3 million), compared with RMB 86.2 million in the same period of 2023;

As of June 30, 2024, RELX Technology had cash and cash equivalents, restricted cash, short-term bank deposits, short-term investments, long-term bank deposits and long-term investment securities totaling RMB 14.93 billion (US$2.05 billion).

RELX Technology Q2 Financial Statement Source: RELX Technology Official Website

 

RELX Technology Founder, Chairman and CEO Wang Ying said,

 

"Our strong performance in the second quarter was mainly due to the continued expansion of international business. With deep insights into the global e-cigarette market and rich experience in regulatory compliance, we are able to formulate effective market entry strategies based on local conditions and maintain our leading position in the context of a rapidly changing global regulatory environment. We will continue to focus on product innovation, improve user experience and market share, and work closely with local partners to launch more attractive products. As a brand trusted by adult smokers, we are committed to providing high-quality, compliant products while seizing growth opportunities in diversified markets around the world."

RELX Technology CFO Lu Chao said,

 

"In the second quarter, we achieved net income of RMB 630 million, a year-on-year increase of 65.9%, which fully demonstrated our ability to seize growth opportunities in the international market. We have also successfully improved our operating profit margin under non-U.S. GAAP through strict cost control. We are always committed to creating long-term and stable value returns for shareholders. Looking forward to the future, we will continue to drive steady growth in international market revenue and continue to optimize operational efficiency to further improve business performance and profitability."