RELX 2023FY: Net Profit Decreased by 42.6% YoY to $130 Million, Increased by 73.2% in Q4

On March 15th, RELX Technology (RLX Technology Inc.) released its unaudited financial report for the fourth quarter and full year of 2023.

According to the financial report, RELX Technology's net revenue for the fourth quarter of 2023 was 520 million yuan ($73.31 million), an increase of 4.3% compared to the previous quarter and a 53.1% increase year-over-year. Under non-US GAAP, adjusted net profit for the fourth quarter was 430 million yuan ($60.93 million), a 114.8% increase compared to the previous quarter and a 73.2% increase year-over-year.

In 2023, the net revenue for the full year was 15.9 billion yuan (2.2 billion US dollars), a decrease of 70.3% year-on-year. Using non-US Generally Accepted Accounting Principles, the adjusted net profit for the full year of 2023 was 9.0 billion yuan (1.3 billion US dollars), a decrease of 42.6% year-on-year.

Financial Performance Summary for the fourth quarter of 2023:

• In the fourth quarter of 2023, net income was 5.205 billion RMB (73.3 million USD), compared to 3.4 billion RMB in the same period of 2022. 
• The gross profit margin for the fourth quarter of 2023 was 23.7%, down from 43.6% in the same period of 2022. 
• Net income under Generally Accepted Accounting Principles (GAAP) for the fourth quarter of 2023 was 2.16 billion RMB (30.4 million USD), while GAAP net loss for the same period in 2022 was 2.251 billion RMB. 
• Non-GAAP net income for the fourth quarter of 2023 was 4.326 billion RMB (60.9 million USD), up from 2.497 billion RMB in the same period of 2022.

RELX Technology founder, chairman and CEO Kate Wang said: "Thanks to the strong execution capabilities of our team, we were able to steadily improve performance quarter by quarter in the challenging and complex external environment of 2023. Starting from the fourth quarter, the company began to expand into overseas markets, focusing on high-growth potential markets and niche product categories. Looking ahead, we will accelerate our overseas expansion, integrate resources and capabilities from different markets to create more synergies; domestically, as law enforcement agencies continue to crack down on illegal e-cigarettes, we will actively cooperate with regulatory authorities to combat illegal products and optimize our product portfolio to continue providing high-quality, safe products for adult e-cigarette consumers."