Key Takeaways:
- RLX Technology reported its revenue fell 12% in the second quarter as it sold down inventory that will become obsolete after new vaping regulations take effect next week
- The company said it’s off to a ‘slow start’ for its new product line that complies with China’s new vaping regulations
By Doug Young
RLX Technology Inc. RLX, China’s leading maker of vaping devices, cartridges and liquids, is very much a company in transition.
That theme comes through repeatedly in its latest earnings report, which was headlined by a second consecutive revenue decline in the three months to June. Those declines look set to accelerate sharply in the last two quarters of this year, as China rolls out a new regulatory regime that includes new administrative measures that took effect in May and new national standards for the sector that will take effect Oct. 1.
The most…
