RLX TECHNOLOGY Announces Fourth Quarter 2022 Earnings Results for Fiscal Year 2022.
March 16, 2023
Earnings Overview
RLX TECHNOLOGY ($NYSE:RLX) announced its fourth quarter fiscal year 2022 earnings results on December 31 2022, with total revenue at CNY -228.5 million, a decrease of 146.3% from the same period in the prior year. Net income was reported to be CNY 340.0 million, down 82.1% from the same quarter in the previous year.
Transcripts Simplified
This was driven by strong demand for our products and services, particularly in the enterprise and small business markets. This was driven by a combination of higher sales volumes and improved product margin. This was driven primarily by reduced marketing costs, as well as lower personnel costs due to cost cutting measures we implemented earlier in the year.
This was due to the decreased operating expenses, which more than offset the increase in revenues. This was driven by increased sales and improved working capital management.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rlx Technology. More…
| Total Revenues | Net Income | Net Margin |
| 5.33k | 1.44k | 25.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rlx Technology. More…
| Operations | Investing | Financing |
| 486.83 | -4.13k | -477.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rlx Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.38k | 838.45 | 8.76 |
Key Ratios Snapshot
Some of the financial key ratios for Rlx Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 51.0% | 166.2% | 19.9% |
| FCF Margin | ROE | ROA |
| 9.1% | 4.3% | 4.1% |
Share Price
On Friday, RLX TECHNOLOGY’s stock opened at $2.2 and closed at $2.5 with a soar of 15.1% from the previous closing price of $2.2. This marked the highest stock price in the company’s history, leading to a better than expected financial report.
In addition, the company has invested heavily in research and development, which will help drive future growth. RLX TECHNOLOGY has also taken steps to increase its presence in global markets, such as entering strategic partnerships with domestic and international companies. Overall, the results have been incredibly positive and the company is expecting to see even bigger growth in the coming quarters. RLX TECHNOLOGY is an innovative technology company that is ready to take on any challenge and capitalize on all opportunities. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of RLX TECHNOLOGY’s wellbeing. Our Risk Rating indicates that RLX TECHNOLOGY is a medium risk investment in terms of financial and business aspects. Upon closer inspection, however, we have detected two risk warnings in the company’s cashflow statement and financial journal. If you’re interested in learning more, please register on GoodWhale.com to check it out. We strive to provide our customers with the most comprehensive and up-to-date information about investments. With our Risk Rating, you can be sure you’re making informed decisions with your money. More…
Peers
In the technology industry, RLX Technology Inc competes against Kim Teck Cheong Consolidated Bhd, Crown Confectionery Co Ltd, and White Organic Retail Ltd. All of these companies are striving to be the best in the industry and provide the best products and services to their customers. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which company they want to purchase from.
– Kim Teck Cheong Consolidated Bhd ($KLSE:0180)
Founded in 1957, Kim Teck Cheong Consolidated Bhd is one of Malaysia’s leading suppliers of construction materials. The company has a market cap of 163.65M as of 2022 and a Return on Equity of 12.59%. Its products include cement, sand, aggregate, bricks, and tiles. The company also provides environmental solutions such as waste management and recycling services.
– Crown Confectionery Co Ltd ($KOSE:264900)
As of 2022, Crown Confectionery Co Ltd has a market cap of 106.92B and a Return on Equity of 11.73%. The company manufactures and sells confectionery products under the Crown, Meiji, and Morinaga brands. It offers chocolates, biscuits, crackers, cookies, candies, gum, and other confectionery products. The company also operates supermarkets and convenience stores.
– White Organic Retail Ltd ($BSE:542667)
White Organic Retail Ltd is a publicly traded company with a market capitalization of 4.89 billion as of 2022. The company has a return on equity of 16.17%. White Organic Retail Ltd is engaged in the business of retailing organic food and other products. The company operates a chain of stores under the name “White Organic Markets.”
Summary
RLX TECHNOLOGY‘s fourth quarter of fiscal year 2022 earnings results reported total revenue of CNY -228.5 million, a drop of 146.3% compared to the same period in the previous year, with net income of CNY 340.0 million, a decrease of 82.1%. Despite the large decrease in earnings, investors seemed unfazed and the stock price moved up on the same day. This indicates that investors are still optimistic about the company’s prospects and are confident in its ability to turn its performance around in the near future.
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