RLX Technology Announces Unaudited First Quarter 2024 Financial Results
F irst Quarter 202 4 Financial Highlights
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Net revenues were
RMB551.6 million (US$76.4 million ) in the first quarter of 2024, compared withRMB188.9 million in the same period of 2023. - Gross margin was 25.9% in the first quarter of 2024, compared with 24.2% in the same period of 2023.
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U.S. GAAP net income wasRMB132 .6 million (US$18.4 million ) in the first quarter of 2024, compared withU.S. GAAP net loss ofRMB56 .3 million in the same period of 2023. -
Non-GAAP net income[1]was
RMB207.5 million (US$28.7 million ) in the first quarter of 2024, compared withRMB183 .6 million in the same period of 2023.
"We started 2024 with a steady first quarter," commented Ms.
Mr.
First Quarter 2024 Financial Results
Net revenues were
Gross profit was
Gross margin was 25.9 % in the first quarter of 2024, compared with 24.2% in the same period of 2023. This improvement was primarily driven by our supply chain efficiency enhancements, partially offset by an increase in inventory provision and an unfavorable shift in the revenue mix.
Operating expenses were
Selling expenses were
General and administrative expenses were RMB110.0 million (
Research and development expenses were
Loss from operations was
Income tax expense was
Non-GAAP
net income was
Non-GAAP basic and diluted net
income
per ADS[2] were
Balance Sheet and Cash Flow
As of
Conference Call
The Company's management will host an earnings conference call at 8:00 AM
Dial-in details for the earnings conference call are as follows:
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+1-888-317-6003 |
International: |
+1-412-317-6061 |
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+800-963-976 |
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+852-5808-1995 |
Mainland |
400-120-6115 |
Participant Code: |
5404850 |
Participants should dial in 10 minutes before the scheduled start time and ask to be connected to the call for "
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.relxtech.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until
|
+1-877-344-7529 |
International: |
+1-412-317-0088 |
Replay Access Code: |
5345683 |
About
For more information, please visit: http://ir.relxtech.com.
Non-GAAP Financial Measures
The Company uses non-GAAP net income and non-GAAP basic and diluted net income per ADS, each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. Non-GAAP net income represents net income excluding share-based compensation expenses. Non-GAAP basic and diluted net income per ADS is computed using non-GAAP net income attributable to
The Company presents these non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company believes that they help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in net income. The Company also believes that the use of the non-GAAP measures facilitates investors' assessment of its operating performance, as they could provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by the management in its financial and operational decision making.
The non-GAAP financial measures are not defined under
For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and non-GAAP Results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For more information, please contact:
In
Head of Capital Markets
Email: ir@relxtech.com
Tel: +86-10-6508-0677
Email: RLX@tpg-ir.com
In
Tel: +1-212-481-2050
Email: RLX@tpg-ir.com
[1] Non-GAAP net income is a non-GAAP financial measure. For more information on the Company's non-GAAP financial measures, please see the section "Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release. |
[2] Non-GAAP basic and diluted net income per ADS is a non-GAAP financial measure. For more information on the Company's non-GAAP financial measures, please see the section "Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(All amounts in thousands) |
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As of |
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2023 |
2024 |
2024 |
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RMB |
RMB |
US$ |
ASSETS |
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Current assets: |
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Cash and cash equivalents |
2,390,298 |
2,322,277 |
321,632 |
Restricted cash |
29,760 |
52,484 |
7,269 |
Short-term bank deposits, net |
2,631,256 |
2,320,529 |
321,390 |
Receivables from online payment platforms |
6,893 |
7,284 |
1,009 |
Short-term investments, net |
3,093,133 |
2,691,275 |
372,737 |
Accounts and notes receivable, net |
60,482 |
113,665 |
15,742 |
Inventories |
144,850 |
99,768 |
13,818 |
Amounts due from related parties |
118,736 |
179,645 |
24,881 |
Prepayments and other current assets, net |
508,435 |
620,771 |
85,976 |
Total current assets |
8,983,843 |
8,407,698 |
1,164,454 |
Non-current assets: |
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Property, equipment and leasehold improvement, net |
77,358 |
69,973 |
9,691 |
Intangible assets, net |
69,778 |
65,004 |
9,003 |
Long-term investments, net |
8,000 |
8,000 |
1,108 |
Deferred tax assets, net |
58,263 |
58,263 |
8,069 |
Right-of-use assets, net |
52,562 |
47,708 |
6,607 |
Long-term bank deposits, net |
1,757,804 |
1,624,802 |
225,032 |
Long-term investment securities, net |
5,236,109 |
5,669,997 |
785,286 |
|
66,506 |
64,136 |
8,883 |
Other non-current assets, net |
4,874 |
11,746 |
1,627 |
Total non-current assets |
7,331,254 |
7,619,629 |
1,055,306 |
Total assets |
16,315,097 |
16,027,327 |
2,219,760 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts and notes payable |
266,426 |
213,849 |
29,618 |
Contract liabilities |
49,586 |
15,058 |
2,086 |
Salary and welfare benefits payable |
39,256 |
50,620 |
7,011 |
Taxes payable |
77,164 |
106,658 |
14,772 |
Accrued expenses and other current liabilities |
103,996 |
118,805 |
16,454 |
Amounts due to related parties |
101,927 |
63,141 |
8,745 |
Dividend payable |
881 |
- |
- |
Lease liabilities - current portion |
29,435 |
31,093 |
4,306 |
Total current liabilities |
668,671 |
599,224 |
82,992 |
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Non-current liabilities: |
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Deferred tax liabilities |
23,591 |
22,584 |
3,128 |
Lease liabilities - non-current portion |
24,419 |
17,968 |
2,489 |
Total non-current liabilities |
48,010 |
40,552 |
5,617 |
Total liabilities |
716,681 |
639,776 |
88,609 |
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Shareholders' Equity: |
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15,609,393 |
15,397,603 |
2,132,543 |
Noncontrolling interests |
(10,977) |
(10,052) |
(1,392) |
Total shareholders' equity |
15,598,416 |
15,387,551 |
2,131,151 |
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Total liabilities and shareholders' equity |
16,315,097 |
16,027,327 |
2,219,760 |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
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(All amounts in thousands, except for number of shares and per share data, or otherwise noted) |
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For the three months ended |
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2023 ( As adjusted ) (a) |
2023 |
2024 |
2024 |
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RMB |
RMB |
RMB |
US$ |
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Net revenues |
188,877 |
520,468 |
551,623 |
76,399 |
Cost of revenues |
(78,693) |
(327,325) |
(327,610) |
(45,373) |
Excise tax on products |
(64,458) |
(69,730) |
(81,240) |
(11,252) |
Gross profit |
45,726 |
123,413 |
142,773 |
19,774 |
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Operating expenses: |
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Selling expenses |
(85,761) |
(37,985) |
(52,887) |
(7,325) |
General and administrative expenses |
(256,504) |
(204,030) |
(109,954) |
(15,228) |
Research and development expenses |
(76,682) |
(21,904) |
(31,540) |
(4,368) |
Total operating expenses |
(418,947) |
(263,919) |
(194,381) |
(26,921) |
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Loss from operations |
(373,221) |
(140,506) |
(51,608) |
(7,147) |
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Other income: |
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Interest income, net |
148,803 |
157,928 |
158,858 |
22,002 |
Investment income |
21,385 |
182,699 |
12,776 |
1,769 |
Others, net |
129,157 |
30,925 |
28,943 |
4,009 |
(Loss)/income before income tax |
(73,876) |
231,046 |
148,969 |
20,633 |
Income tax benefit/(expense) |
17,571 |
(15,078) |
(16,344) |
(2,264) |
Net (loss)/income |
(56,305) |
215,968 |
132,625 |
18,369 |
Less: net income attributable to noncontrolling interests |
661 |
2,491 |
717 |
99 |
Net (loss)/income attributable to |
(56,966) |
213,477 |
131,908 |
18,270 |
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Other comprehensive (loss)/income: |
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Foreign currency translation adjustments |
(148,096) |
(132,470) |
12,706 |
1,760 |
Unrealized income/(loss) on long-term investment securities |
2,873 |
(11,288) |
(13) |
(2) |
Total other comprehensive (loss)/income |
(145,223) |
(143,758) |
12,693 |
1,758 |
Total comprehensive (loss)/income |
(201,528) |
72,210 |
145,318 |
20,127 |
Less: total comprehensive income attributable to |
661 |
2,491 |
730 |
101 |
Total comprehensive (loss)/income attributable to RLX |
(202,189) |
69,719 |
144,588 |
20,026 |
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Net (loss)/income per ordinary share/ADS |
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- Basic |
(0.043) |
0.166 |
0.106 |
0.015 |
- Diluted |
(0.043) |
0.161 |
0.101 |
0.014 |
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Weighted average number of ordinary shares/ADSs |
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- Basic |
1,316,798,713 |
1,285,752,182 |
1,249,317,641 |
1,249,317,641 |
- Diluted |
1,316,798,713 |
1,324,466,240 |
1,301,431,007 |
1,301,431,007 |
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Note (
a): The Company
acquired various companies on |
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UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
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(All amounts in thousands, except for number of shares and per share data) |
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For the three months ended |
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2023 (As adjusted) (b) |
2023 |
2024 |
2024 |
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RMB |
RMB |
RMB |
US$ |
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Net (loss)/income |
(56,305) |
215,968 |
132,625 |
18,369 |
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Add: share-based compensation expenses |
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Selling expenses |
23,955 |
12,128 |
4,603 |
638 |
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General and administrative expenses |
201,343 |
194,153 |
66,414 |
9,198 |
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Research and development expenses |
14,654 |
10,335 |
3,881 |
538 |
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Non-GAAP net income |
183,647 |
432,584 |
207,523 |
28,743 |
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Net (loss)/income attributable to |
(56,966) |
213,477 |
131,908 |
18,270 |
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Add: share-based compensation expenses |
239,952 |
216,616 |
74,898 |
10,374 |
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Non-GAAP net income attributable to |
182,986 |
430,093 |
206,806 |
28,644 |
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Non-GAAP net income per ordinary share/ADS |
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- Basic |
0.139 |
0.335 |
0.166 |
0.023 |
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- Diluted |
0.136 |
0.325 |
0.159 |
0.022 |
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Weighted average number of ordinary shares/ADSs |
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- Basic |
1,316,798,713 |
1,285,752,182 |
1,249,317,641 |
1,249,317,641 |
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- Diluted |
1,345,828,279 |
1,324,466,240 |
1,301,431,007 |
1,301,431,007 |
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Note (
b): The Company
acquired various companies on |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
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(All amounts in thousands) |
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For the three months ended |
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2023 (As adjusted) (c) |
2023 |
2024 |
2024 |
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RMB |
RMB |
RMB |
US$ |
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Net cash (used in)/generated from operating activities |
(230,686) |
305,197 |
4,020 |
557 |
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Net cash generated from investing activities |
381,954 |
310,274 |
420,665 |
58,261 |
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Net cash generated from/(used in) financing activities |
4,346 |
(791,905) |
(472,885) |
(65,495) |
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Effect of foreign exchange rate changes on cash, cash equivalents and |
10,409 |
(18,544) |
2,903 |
404 |
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Net increase/(decrease) in cash and cash equivalents and restricted cash |
166,023 |
(194,978) |
(45,297) |
(6,273) |
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Cash, cash equivalents and restricted cash at the beginning of the period |
1,289,086 |
2,615,036 |
2,420,058 |
335,174 |
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Cash, cash equivalents and restricted cash at the end of the period |
1,455,109 |
2,420,058 |
2,374,761 |
328,901 |
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Note (c): The Company acquired various companies on |
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