Why RLX Technology Stock Sank on Wednesday

Shares of RLX Technology (NYSE: RLX) sank by as much as 10% today after the company reported first-quarter earnings. As of 11:30 a.m. EDT, the stock was still down 8%.

Revenue in the first quarter increased 48% to $366.1 million, which resulted in adjusted net income of $93.2 million, or $0.06 per American depositary share (ADS). The Chinese consumer discretionary company, which sells vaping products in China, attributed the growth to higher sales to offline distributors. Gross margin expanded to 42.9%, and RLX Technology finished the quarter with $2.2 billion in cash on its balance sheet. Most of that cash was raised in RLX's IPO in January.

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Source Fool.com