Net revenues of RLX Technology increased by 123.1 percent to RMB8.52 billion ($1.34 billion) in fiscal year 2021. The increase was primarily due to an increase in net revenues from sales to offline distributors, which was mainly attributable to the expansion of the company’s distribution and retail network (China banned internet sales of vapor products in October 2019).
Gross profit increased by 140.4 percent to RMB3.67 billion while gross margin increased to 43.1 percent from 40 percent in the prior year.
For the fourth quarter of 2021, RLX Technology reported net revenues of RMB1.9 billion, up 17.7 percent from the comparable 2020 quarter. Gross margin was 40.2 percent, compared with 42.9 percent in the same period of 2020.
“We are pleased with our operational and financial performance in the fourth quarter, ending 2021 on a strong note. Despite the evolving industry regulatory framework and challenging backdrop of recurrent Covid-19 outbreaks, we remained focused throughout the year on optimizing our distribution and retail channels, investing in scientific research, new product development, and digitalization upgrades,” said Ms. Ying (Kate) Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement.
“The 2021 fiscal year was defined by year-over-year revenue growth of 123.1 percent, further cementing our leadership as a trusted e-vapor brand for adult smokers. Looking ahead, we are confident that the company is well-positioned to further explore the enormous potential of this vast yet growing industry and achieve future growth in 2022 and beyond.”