RLX Technology Inc (NYSE: RLX) shares are plunging Friday after the company reported fourth-quarter financial results.
RLX said fourth-quarter revenue grew 17% year-over-year to RMB1,904.4 million ($298.8 million). 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.
Gross margin was 40.2%, which was down from 42.9% margins in the fourth quarter of 2020.
"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 Ying Wang, co-founder and CEO of RLX Technology.
The company is engaged in the manufacturing of e-vapor products.
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RLX Price Action: RLX Technology shares are making new 52-week lows Friday.
The stock was down 37.8% at $1.36 at publication time.
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