RLX Technology Clocks 29% Revenue Decline In Q1

• RLX Technology Inc (NYSE:RLX) reported a first-quarter FY22 sales decline of 28.5% year-on-year to $270.4 million.
• The revenue decrease is primarily due to the impact of COVID-19 on the production plant in Shenzhen, which adversely affected production and shipment volume.
• The gross margin for the quarter contracted 770 basis points to 38.3%, and the gross profit decreased 40.5% to $103.6 million.
• The operating expenses for the quarter fell 97.2% to $5.3 million. The operating margin was 36.4%, and operating income for the quarter was $98.3 million.
• The company held $2.4 billion in cash and equivalents as of March 31, 2022.
• Non-GAAP EPS for the quarter was RMB 0.281 ($0.044) versus RMB 0.398 last year.
• Price Action: RLX shares are trading higher by 3.54% at $2.05 in premarket on the last check Friday.