RLX Technology Announces Unaudited Fourth Quarter and Fiscal Year 2023 Financial Results
Fourth Quarter 2023 Financial Highlights
-
Net revenues were
RMB520.5 million (US$73.3 million ) in the fourth quarter of 2023, compared withRMB340.0 million in the same period of 2022. - Gross margin was 23.7% in the fourth quarter of 2023, compared with 43.6% in the same period of 2022.
-
U.S. GAAP n et income wasRMB216.0 million (US$30.4 million ) in the fourth quarter of 2023, compared withU.S. GAAP net loss ofRMB225.1 million in the same period of 2022. -
Non-GAAP net income[1]was
RMB432.6 million (US$60.9 million ) in the fourth quarter of 2023, compared withRMB249.7 million in the same period of 2022.
Fiscal Year 2023 Financial Highlights
-
Net revenues were
RMB1,586.4 million (US$223.4 million ) in fiscal year 2023, compared withRMB5,332.8 million in the prior year. - Gross margin was 24.4% in fiscal year 2023, compared with 43.2% in the prior year.
-
U.S. GAAP net income wasRMB541.0 million (US$76.2 million ) in fiscal year 2023, compared withRMB1,408.7 million in the prior year. -
Non-GAAP net income was
RMB903.9 million (US$127.3 million ) in fiscal year 2023, compared withRMB1,574.9 million in the prior year.
"Despite external challenges, we achieved an impressive recovery throughout 2023 through strong strategic execution, setting the stage for new ventures," said Ms. Ying (Kate)
Mr.
Fourth Quarter 2023 Financial Results
Net revenues were
Gross profit was
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, which came into effect on
Operating expenses were
Selling expenses were
General and administrative expenses were RMB204.0 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
Fiscal Year 2023 Financial Results
Net revenues were
Gross profit was
Gross margin decreased to 24.4% in fiscal year 2023 from 43.2% in the prior year, primarily due to the imposition of a 36% excise tax, which came into effect on
Operating expenses were
Selling expenses decreased by 38.5% to
General and administrative expenses decreased by 13.7% to
Research and development expenses decreased by 45.5% to
Loss from operations was
Income tax expense was
Non-GAAP net income was
Non-GAAP basic and diluted net income per ADS were
Share Repurchase Program and Dividend Payment
The Company repurchased approximately
In
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: |
1473355 |
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: |
9792377 |
About RLX Technology Inc.
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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2022 ( As adjusted ) (a) |
2023 |
2023 |
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RMB |
RMB |
US$ |
ASSETS |
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Current assets: |
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Cash and cash equivalents |
1,268,512 |
2,390,298 |
336,666 |
Restricted cash |
20,574 |
29,760 |
4,192 |
Short-term bank deposits, net |
7,084,879 |
2,631,256 |
370,605 |
Receivables from online payment platforms |
3,000 |
6,893 |
971 |
Short-term investments, net |
2,434,864 |
3,093,133 |
435,659 |
Accounts and notes receivable, net |
51,381 |
60,482 |
8,519 |
Inventories |
130,901 |
144,850 |
20,402 |
Amounts due from related parties |
5,112 |
118,736 |
16,724 |
Prepayments and other current assets, net |
198,932 |
508,435 |
71,612 |
Total current assets |
11,198,155 |
8,983,843 |
1,265,350 |
Non-current assets: |
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Property, equipment and leasehold improvement, net |
87,871 |
77,358 |
10,896 |
Intangible assets, net |
7,552 |
69,778 |
9,828 |
Long-term investments, net |
8,000 |
8,000 |
1,127 |
Deferred tax assets, net |
63,894 |
58,263 |
8,206 |
Right-of-use assets, net |
75,008 |
52,562 |
7,403 |
Long-term bank deposits, net |
1,515,428 |
1,757,804 |
247,582 |
Long-term investment securities, net |
3,409,458 |
5,236,109 |
737,491 |
|
- |
66,506 |
9,367 |
Other non-current assets, net |
13,458 |
4,874 |
686 |
Total non-current assets |
5,180,669 |
7,331,254 |
1,032,586 |
Total assets |
16,378,824 |
16,315,097 |
2,297,936 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts and notes payable |
269,346 |
266,426 |
37,525 |
Contract liabilities |
75,226 |
49,586 |
6,984 |
Salary and welfare benefits payable |
127,749 |
39,256 |
5,529 |
Taxes payable |
109,676 |
77,164 |
10,868 |
Amounts due to related parties |
423 |
101,927 |
14,356 |
Dividend payable |
- |
881 |
124 |
Accrued expenses and other current liabilities |
161,455 |
103,996 |
14,648 |
Lease liabilities - current portion |
45,955 |
29,435 |
4,146 |
Total current liabilities |
789,830 |
668,671 |
94,180 |
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Non-current liabilities: |
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Deferred tax liabilities |
8,653 |
23,591 |
3,323 |
Lease liabilities - non-current portion |
39,968 |
24,419 |
3,439 |
Total non-current liabilities |
48,621 |
48,010 |
6,762 |
Total liabilities |
838,451 |
716,681 |
100,942 |
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Shareholders' Equity: |
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|
15,569,060 |
15,609,393 |
2,198,540 |
Noncontrolling interests |
(28,687) |
(10,977) |
(1,546) |
Total shareholders' equity |
15,540,373 |
15,598,416 |
2,196,994 |
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Total liabilities and shareholders' equity |
16,378,824 |
16,315,097 |
2,297,936 |
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Note (a): The Company acquired various companies on |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
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(All amounts in thousands, except for share and per share data) |
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For the three months ended |
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For the year ended |
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2022 ( As adjusted ) (b) |
2023 ( As adjusted ) (b) |
2023 |
2023 |
|
2022 ( As adjusted ) (b) |
2023 |
2023 |
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RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
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Net revenues |
340,012 |
498,929 |
520,468 |
73,306 |
|
5,332,779 |
1,586,397 |
223,439 |
Cost of revenues |
(139,073) |
(278,578) |
(327,325) |
(46,103) |
|
(2,974,981) |
(856,329) |
(120,611) |
Excise tax on products |
(52,668) |
(100,313) |
(69,730) |
(9,821) |
|
(52,668) |
(342,354) |
(48,220) |
Gross profit |
148,271 |
120,038 |
123,413 |
17,382 |
|
2,305,130 |
387,714 |
54,608 |
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Operating expenses: |
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Selling expenses |
(96,673) |
(44,751) |
(37,985) |
(5,350) |
|
(347,798) |
(213,723) |
(30,102) |
General and administrative expenses |
(394,207) |
(78,849) |
(204,030) |
(28,737) |
|
(576,811) |
(498,015) |
(70,144) |
Research and development expenses |
(129,558) |
(30,783) |
(21,904) |
(3,085) |
|
(317,110) |
(172,686) |
(24,322) |
Total operating expenses |
(620,438) |
(154,383) |
(263,919) |
(37,172) |
|
(1,241,719) |
(884,424) |
(124,568) |
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(Loss)/income from operations |
(472,167) |
(34,345) |
(140,506) |
(19,790) |
|
1,063,411 |
(496,710) |
(69,960) |
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Other income : |
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Interest income, net |
54,617 |
158,260 |
157,928 |
22,244 |
|
180,729 |
627,879 |
88,435 |
Investment income |
25,557 |
21,028 |
182,699 |
25,733 |
|
136,531 |
245,700 |
34,606 |
Others, net |
150,625 |
33,412 |
30,925 |
4,356 |
|
399,641 |
214,874 |
30,264 |
(Loss)/income before income tax |
(241,368) |
178,355 |
231,046 |
32,543 |
|
1,780,312 |
591,743 |
83,345 |
Income tax benefit/(expense) |
16,243 |
(1,746) |
(15,078) |
(2,124) |
|
(371,580) |
(50,755) |
(7,149) |
Net (loss)/income |
(225,125) |
176,609 |
215,968 |
30,419 |
|
1,408,732 |
540,988 |
76,196 |
Less: net income/(loss) attributable to noncontrolling |
3,355 |
1,579 |
2,491 |
351 |
|
(32,487) |
6,660 |
938 |
Net (loss)/income attributable to |
(228,480) |
175,030 |
213,477 |
30,068 |
|
1,441,219 |
534,328 |
75,258 |
Other comprehensive (loss)/income: |
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Foreign currency translation adjustments |
(215,246) |
(83,978) |
(132,470) |
(18,658) |
|
937,428 |
198,534 |
27,963 |
Unrealized (loss)/income on long-term investment securities |
(5,425) |
3,508 |
(11,288) |
(1,590) |
|
(5,425) |
632 |
89 |
Total other comprehensive (loss)/income |
(220,671) |
(80,470) |
(143,758) |
(20,248) |
|
932,003 |
199,166 |
28,052 |
Total comprehensive (loss)/income |
(445,796) |
96,139 |
72,210 |
10,171 |
|
2,340,735 |
740,154 |
104,248 |
Less: total comprehensive income/(loss) attributable to |
3,355 |
1,579 |
2,491 |
351 |
|
(32,487) |
6,660 |
938 |
Total comprehensive (loss)/income attributable to RLX |
(449,151) |
94,560 |
69,719 |
9,820 |
|
2,373,222 |
733,494 |
103,310 |
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Net (loss)/income per ordinary share/ADS |
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Basic |
(0.174) |
0.133 |
0.166 |
0.023 |
|
1.092 |
0.407 |
0.057 |
Diluted |
(0.174) |
0.130 |
0.161 |
0.023 |
|
1.085 |
0.399 |
0.056 |
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Weighted average number of ordinary shares/ADSs |
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Basic |
1,310,229,331 |
1,316,452,743 |
1,285,752,182 |
1,285,752,182 |
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1,319,732,802 |
1,311,401,901 |
1,311,401,901 |
Diluted |
1,310,229,331 |
1,344,359,144 |
1,324,466,240 |
1,324,466,240 |
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1,328,144,092 |
1,340,445,653 |
1,340,445,653 |
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Note (
b): The Company
acquired various companies on comparative consolidated statements of comprehensive (loss)/income in prior quarters/year. |
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UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
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(All amounts in thousands, except for share and per share data, or otherwise noted) |
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For the three months ended |
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For the year ended |
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2022 ( As adjusted ) ( c ) |
2023 ( As adjusted ) (c) |
2023 |
2023 |
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2022 ( As adjusted ) (c) |
2023 |
2023 |
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net (loss)/income |
(225,125) |
176,609 |
215,968 |
30,419 |
|
1,408,732 |
540,988 |
76,196 |
Add: share-based compensation expenses |
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Selling expenses |
41,239 |
(4,045) |
12,128 |
1,708 |
|
(6,993) |
16,700 |
2,352 |
General and administrative expenses |
369,447 |
29,771 |
194,153 |
27,346 |
|
162,229 |
334,344 |
47,091 |
Research and development expenses |
64,165 |
(936) |
10,335 |
1,456 |
|
10,925 |
11,824 |
1,665 |
Non-GAAP net income |
249,726 |
201,399 |
432,584 |
60,929 |
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1,574,893 |
903,856 |
127,304 |
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Net (loss)/income attributable to RLX |
(228,480) |
175,030 |
213,477 |
30,068 |
|
1,441,219 |
534,328 |
75,258 |
Add: share-based compensation expenses |
474,851 |
24,790 |
216,616 |
30,510 |
|
166,161 |
362,868 |
51,108 |
Non-GAAP net income attributable to RLX |
246,371 |
199,820 |
430,093 |
60,578 |
|
1,607,380 |
897,196 |
126,366 |
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Non-GAAP net income per ordinary share/ADS |
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- Basic |
0.188 |
0.152 |
0.335 |
0.047 |
|
1.218 |
0.684 |
0.096 |
- Diluted |
0.186 |
0.149 |
0.325 |
0.046 |
|
1.210 |
0.669 |
0.094 |
Weighted average number of ordinary |
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- Basic |
1,310,229,331 |
1,316,452,743 |
1,285,752,182 |
1,285,752,182 |
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1,319,732,802 |
1,311,401,901 |
1,311,401,901 |
- Diluted |
1,324,475,455 |
1,344,359,144 |
1,324,466,240 |
1,324,466,240 |
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1,328,144,092 |
1,340,445,653 |
1,340,445,653 |
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Note (c): The Company acquired various companies on |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(All amounts in thousands) |
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For the three months ended |
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For the year ended |
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2022 ( As adjusted ) ( d ) |
2023 ( As adjusted ) (d) |
2023 |
2023 |
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2022 ( As adjusted ) (d) |
2023 |
2023 |
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RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
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Net cash (used in)/generated from operating activities |
(248,866) |
82,853 |
305,197 |
42,986 |
|
486,829 |
198,703 |
27,987 |
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Net cash generated from/(used in) investing activities |
752,545 |
967,234 |
310,274 |
43,701 |
|
(4,133,040) |
2,091,145 |
294,532 |
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Net cash used in financing activities |
(150,647) |
(206,577) |
(791,905) |
(111,537) |
|
(477,270) |
(1,193,216) |
(168,061) |
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Effect of foreign exchange rate changes on cash, cash |
29,287 |
(5,918) |
(18,544) |
(2,612) |
|
203,100 |
34,340 |
4,836 |
|
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Net increase/(decrease) in cash and cash equivalents |
382,319 |
837,592 |
(194,978) |
(27,462) |
|
(3,920,381) |
1,130,972 |
159,294 |
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Cash, cash equivalents and restricted cash at the |
906,767 |
1,777,444 |
2,615,036 |
368,320 |
|
5,209,467 |
1,289,086 |
181,564 |
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Cash, cash equivalents and restricted cash at the |
1,289,086 |
2,615,036 |
2,420,058 |
340,858 |
|
1,289,086 |
2,420,058 |
340,858 |
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Note (d): The Company acquired various companies on |
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