Benzinga | Aug 20, 2021 09:16AM EDT

RLX Technology Q2 Revenue Tops Estimate

* RLX Technology Inc (NYSE:RLX) reported second-quarter FY21 sales growth of 6% quarter-on-quarter, to RMB2.54 billion ($393.6 million), beating the analyst consensus of $367.8 million.

* RLX said the slowdown in sequential revenue growth was primarily due to external factors, including the negative publicity on the e-vapor industry in the latter half of Q2.

* Gross profit increased by 3.8% Q/Q to RMB1.146 billion ($177.6 million), with the margin contracting 90 basis points Q/Q to 45.1%.

* The operating margin was 38.5%, and operating income for the quarter was RMB979.3 million, versus RMB (111.9) million loss in Q1.

* The company held RMB6.53 billion ($1 billion) in cash and equivalents as of June 30, 2021.

* Non-GAAP net income per ADS was RMB 0.467 ($0.072).

* "In the second quarter of 2021, our business continued to develop as we increased our efforts to further improve underage protection and product safety," said CEO Ying (Kate) Wang.

* Price Action: RLX shares are trading higher by 1.89% at $4.3099 in premarket on the last check Friday.