RLX Technology Inc. (RLX) stock continues to rise pre-market reaching $5.32 at a volume of 2.2 million. The RLX stock gained 18.49% from its last close at $4.49 (+2.05%) on November 11, 2021. Early morning news appeared in the market claiming the Chinese government to hold a meeting on the national standards of e-cigarettes. Given the current increase in the stock, the news seems to have been taken positively by the investors.
According to the reports, the meeting involved the whitelist of additives allowed, the maximum limit of nicotine, and the atomisation temperature for e-cigarettes. The meeting also identified the herbal cartridges as solid electronic cigarettes.
RLX Technology Inc. (RLX)
Founded in 2018, the China based company RLX is engaged in the manufacturing of e-vapor products for adult smokers. RLX develops superior e-vapor products based on its strong in-house technology, product development capabilities, and deep insight into smokers’ needs. The company does the sale of its products through an integrated offline distribution and “branded store plus” retail model base on the e-vapor market in China.
RLX in Numbers
RLX Technology Inc. published its financial results for the quarter ended June 30, 2021, on August 20 of this year. According to the financial results, RLX generated a revenue of $393.57 million, showing an increase of 6.32% from $370.18 million in the previous quarter.
The non-GAAP net income for the second quarter was $100.9 million with an increase of 6.8% from $95.7 million in the first quarter of the same year.
The earnings per basic and diluted share were $0.09 for the second quarter of 2021, as compared to -$0.03 in the first quarter of the same year. The earnings per basic and diluted share showed an increase of 440.15% from the previous quarter.
RLX Technology Inc. is expected to announce its third-quarter 2021, financial results on November 19, 2021.
The Future
The vaping market is a debatable place with all kinds of reviews. While the vaping advocates consider vaping and e-cigarettes as the lesser evil against traditional cigarette smoking, others are still against it. China has been placing various kinds of restrictions on the producers in the market including strict age limit, contents and additives allowed. While these restrictions can be taken as a negative hit, RLX corporate social responsibility efforts are paving a positive path for it.
On September 22, RLX released its annual SCR report highlighting its efforts in minor protection, pods recycling, and sustainable manufacturing along with wildlife protection.
