RLX Technology Reports Drop in Q4 Earnings Amid Revenue Growth

RLX Technology Inc. reported disappointing fourth quarter earnings, with net revenues falling to RMB 121.96 million, down from RMB 213.48 million a year prior. Despite a significant increase in revenue for the full fiscal year 2024, reaching RMB 2.7 billion—a 73.3% rise—the company missed expectations in the fourth quarter, resulting in a sharp decline in earnings per share. The gross margin improved to 26.4% for the fiscal year, up from 24.4% the previous year. CEO Ying (Kate) Wang highlighted the need for innovation and compliance in navigating dynamic market conditions. The company has seen strong institutional interest, with several hedge funds increasing their holdings significantly. Overall, RLX is focusing on sustainable growth and shareholder value through its strategic initiatives moving into 2025.