RELX Tech Q2 Report: Net Profit Soars 147.1% to 210 Million Yuan, International Expansion Bolsters Performance

Business by 2FIRSTS
Aug.16.2024
RELX Tech Q2 Report: Net Profit Soars 147.1% to 210 Million Yuan, International Expansion Bolsters Performance
RELX Technology reports a strong Q2 performance, with net income reaching 6.272 billion yuan, driven by international expansion.

On August 16th, RELX Technology (RLX Technology Inc.) (NYSE: RLX) released its unaudited financial report for the second quarter of 2024 (Q2).

 

The financial report shows that RELX Technology's net revenue for the second quarter of 2024 was 627.2 million Chinese yuan (86.3 million US dollars), a 13.7% increase compared to the previous quarter and a 65.9% increase compared to the same period last year, mainly due to its international expansion. In terms of non-US GAAP, the adjusted net profit for the second quarter was 210 million Chinese yuan (29.32 million US dollars), a 2.7% increase quarter-on-quarter and a 147.1% increase year-on-year.

 

  • In the second quarter of 2024, the main financial highlights are as follows: revenue was 1.579 billion RMB (217 million USD), compared to 98.5 million RMB in the same period in 2023; 
  • Operating expenses were 1.912 billion RMB (263 million USD), down from 472 million RMB in 2023; 
  • Sales expenses were 62.2 million RMB (8.6 million USD), up from 45.2 million RMB in 2023 mainly due to increased stock incentive expenses; 
  • Gross profit margin was 25.2%, down from 26.1% in 2023 primarily due to unfavorable changes in revenue structure; 
  • US GAAP net income was 1.349 billion RMB (186 million USD), compared to 2.047 billion RMB in 2023; 
  • Non-GAAP net income was 2.131 billion RMB (293 million USD), up from 86.2 million RMB in 2023; 
  • As of June 30, 2024, RELX Technology had total cash, restricted cash, short-term bank deposits, short-term investments, long-term bank deposits, and long-term investment securities totaling 149.3 billion RMB (20.5 billion USD).

 

RELX Tech Q2 Report: Net Profit Soars 147.1% to 210 Million Yuan, International Expansion Bolsters Performance
RELX Technology Q2 financial report | Source: RELX Technology official website

 

RELX Technology Founder, Chairman, and CEO Kate Wang stated,

 

Our strong performance in the second quarter was mainly due to the continued expansion of our international business. With deep insights into the global e-cigarette market and extensive experience in regulatory compliance, we are able to tailor effective market entry strategies, maintaining a leading position amid rapidly changing global regulatory environments. We will continue to focus on product innovation, enhancing user experience, and increasing market share, while closely collaborating with local partners to launch more attractive products. As a trusted brand among adult smokers, we are committed to providing high-quality, compliant products and seizing growth opportunities in diverse global markets.

 

RELX Technology's CFO, Lu Chao, stated,

 

In the second quarter, we achieved a net income of 630 million yuan, an increase of 65.9% year-on-year, demonstrating our ability to seize growth opportunities in the international market. Through strict cost control, we have successfully improved the operating profit margin under non-US GAAP. We are committed to creating long-term stable value returns for shareholders. Looking ahead, we will continue to drive steady growth in international market revenue and continuously optimize operational efficiency to further enhance business performance and profitability.

 

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