Branded e-vapor company RLX Technology Inc (NYSE:RLX), which is one of the leaders in its industry in China, has seen its stock go through a torrid period in the past week.
Trading Data
On Monday, RLX stock ended flat at $1.87 with 4.73 million shares, compared to a volume of 16.63 million shares. The stock moved within a range of $1.7900 – 1.9000 after opening trade at $1.84.
Earnings Recap
During that period, the RLX stock declined by as much as 11%. In this context, it is important to point out that back on May 20, the company had been in the news after it announced its financial results for the first fiscal quarter that had ended on March 31, 2022. In this situation, it could be a good idea for investors to consider taking a look at some of the highlights of the results.
In that quarter, the company managed to bring in net revenues to the tune of RMB 1714.5 million and that was markedly lower than the net revenues of RMB2398.5 million in the prior-year period. On the other hand, the gross margin also declined to 38%.
In the prior-year period, the company had a gross margin of 46%. The net income in the period as per GAAP came in at RMB6871 million. In the prior-year period, the GAAP net income came in at a net loss of RMB267 million.
Key Quote
“During the first quarter of 2022, we continued to focus on our core strategy and maintain our leading position in the industry while preparing for the anticipated regulatory changes. As the new regulatory framework has come into effect and detailed implementation measures have been released, we are proactively adapting our business to the new market environment by applying for the relevant licenses and developing qualified products that meet the requirements of the most recent national standards. We believe that, by leveraging our leading research and development abilities, we are able to launch market-leading products that conform to the national standards and satisfy our users’ needs,” said Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors and CEO of RLX Technology.
Technical Data
RLX stock is trading below the 20-Day and 50-Day Moving averages of $1.92 and $1.93 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.68.
