RLX Technology Inc. (NYSE:RLX) shares are trading higher in the premarket session on Friday.
The company reported fourth-quarter adjusted earnings per ADS of $0.046, beating the analyst consensus of $0.02.
Quarterly revenue of $73.31 million beats the street view of $66.52 million.
Gross margin was 23.7% in the fourth quarter of 2023, compared with 43.6% in the same period of 2022.
The decrease was primarily due to the imposition of a 36% excise tax, and an unfavorable change in revenue mix.
For the fourth quarter, net cash generated from operating activities was $43.0 million.
As of December 31, 2023, the company had cash and equivalents worth $2.132 billion.
"By acquiring and integrating resources across diverse markets, we can create powerful synergies and elevate operational efficiency, enhancing our global competitiveness," said Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and CEO of RLX Technology.
"For our domestic business in China, we remain committed to optimizing our product portfolios while combatting illegal products that still weigh on legitimate players' sales, advocating for a responsible and well-regulated e-vapor industry."
Price Action: RLX shares are trading higher by 7.22% premarket to $2.09 on the last check Friday.