RLX Technology Inc. ( 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 ( RLX ). 

“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.