RLX Technology Registers 34% Sequential Revenue Decline In Q3 Hit By Volatile Market Conditions

RLX Technology Inc (NYSE:RLX) reported a third-quarter FY21 sales decline of 34% Q/Q, to RMB1.67 billion ($260.2 million). Sales rose 49.6% Y/Y.
The company attributed the revenue decrease to volatile market conditions, including the negative publicity on the e-vapor industry and evolving COVID-19 restrictions in response to outbreaks in China.
Non-GAAP EPS net income per ADS was RMB0.332 ($0.051).
The gross profit margin contracted 600 basis points Q/Q to 39.1%, and the gross profit decreased 42.8% Q/Q to RMB656.0 million ($101.8) million.
The operating margin was 53.5%, and operating income for the quarter was RMB897.3 million ($139.3 million).
The company held RMB14.72 billion ($2.28 billion) in cash and equivalents as of September 3, 2021. Net cash used in operating activities totaled RMB142.9 million ($22.2 million).
Price Action: RLX shares are trading lower by 9.03% at $4.03 in premarket on the last check Friday.