Fog Core Technology (RLX.US)'s net revenue for Q2 2026 increased 14.8% year-on-year, and diversified product portfolio expanded at an accelerated pace

Zhitong Finance App learned that on August 14, Wuxin Technology (RLX.US) announced unaudited financial results for the second quarter of 2026. According to financial reports, Fuxin Technology's net revenue for the second quarter of 2026 was RMB 1,010.5 million (US$148.9 million), up 14.8% year on year. Under non-US GAAP, net profit for the second quarter was RMB 238.8 million (US$35.19 million), compared to RMB 291.2 million for the same period last year.

Wang Ying, founder, chairman and CEO of Fog Core Technology, said that in the second quarter of 2026, the company maintained steady performance and continued to advance its global business layout. As the industry matures, competitive advantage is extending from single product innovation to retail execution capabilities, channel coverage, and shelf share. Based on this trend, we continue to optimize our global channel strategy, deepen terminal operations in Asia, promote a “dual engine” strategy in Europe, actively seek strategic investment opportunities while strengthening endogenous growth, and continuously improve channel autonomy and market coverage capabilities. At the same time, we will further focus on overseas compliance markets, develop a broader portfolio of smoke-free products, promote large-scale expansion of new categories such as oral products, and actively explore other new smoke-free categories. In the future, we are confident that we will continue to be guided by user needs and promote long-term sustainable growth of the company through enhanced channel capabilities and multi-category innovation.

Lu Chao, CFO of Fuxin Technology, said that in the second quarter of 2026, the company achieved net revenue of RMB 1.01 billion, up 14.8% year on year, and gross profit increased 47.8% year on year to RMB 360 million. As previously anticipated and disclosed, net revenue and gross profit for the second quarter declined from the first quarter, mainly due to one-off growth factors brought about by export policy adjustments in the first quarter. Despite this, the company's gross margin increased further to 35.4% in the second quarter, up 7.9 percentage points year over year and 3.6 percentage points month on month, and profitability continued to improve. In July 2026, we completed the acquisition of 51% of the shares of a leading distributor of smoke-free products and FMCG products in Western Europe. The company has an extensive offline distribution network and its own B2B digital platform covering tens of thousands of retailers, which will further enhance our channel coverage and terminal reach capabilities in the European market. Next, we will continue to adhere to prudent capital allocation, and while actively promoting strategic investments, we will continue to generate returns for shareholders and achieve long-term value growth.

Financial highlights for the second quarter of 2026

Foxin Technology's net revenue for the second quarter of 2026 was RMB 1,010.5 billion (US$148.9 million), up 14.8% year over year, mainly due to the company's international expansion and contributions from European entities invested in May 2025.

Gross profit for the second quarter of 2026 was RMB 357.8 million (US$52.74 million), and gross margin was 35.4%, an increase of 7.9 percentage points over the previous year. Operating profit for the second quarter of 2026 was RMB149.6 million (US$22.05 million), up 28.8% year-on-year under non-GAAP; net profit was RMB238.8 million (US$35.19 million).

As of June 30, 2026, Fuxin Technology's total holdings of cash and cash equivalents, restricted cash, short-term bank deposits, short-term investments, long-term bank deposits and long-term investment securities amounted to RMB 13.883.4 billion (US$2,046.2 billion).