RLX RLX Technology Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November, 2024

 

 

Commission File Number: 001-39902

 

 

RLX Technology Inc.

 

35/F, Pearl International Financial Center

No. 9 Jian’an First Road, Financial Street

Third District, Bao’an District

Shenzhen, Guangdong Province 518101

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F   x         Form 40-F   ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Press Release

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	RLX Technology Inc.
	By	:	/s/ Chao Lu
	Name:	:	Chao Lu
	Title:	:	Chief Financial Officer

 

Date: November 15, 2024

 

 

 

Exhibit 99.1

 

RLX Technology Announces Unaudited Third Quarter 2024 Financial Results

 

SHENZHEN, November 15, 2024 /PRNEWSWIRE/ - RLX Technology Inc. ("RLX Technology" or the "Company") (NYSE: RLX), a leading global branded e-vapor company, today announced its unaudited financial results for the third quarter ended September 30, 2024.

 

Third Quarter 2024 Financial Highlights

 

·

Net revenues were RMB756.3 million (US$107.8 million) in the third quarter of 2024, compared with RMB498.9 million in the same period of 2023.

 

·

Gross margin was 27.2% in the third quarter of 2024, compared with 24.1% in the same period of 2023.

 

·

U.S. GAAP net income was RMB169.4 million (US$24.1 million) in the third quarter of 2024, compared with RMB176.6 million in the same period of 2023.

 

·

Non-GAAP net income1 was RMB261.9 million (US$37.3 million) in the third quarter of 2024, compared with RMB201.4 million in the same period of 2023.

 

"We delivered another strong performance in the third quarter of 2024, showcasing our ability to consistently excel in diverse markets despite rapidly evolving trends and regulations," commented Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and Chief Executive Officer of RLX Technology. "Our efficient, adaptable localization strategies have empowered us to establish market leadership in multiple countries by cultivating strong product-market alignment and building solid relationships with local distributors and retailers. Furthermore, our broad offering of premium, reliable cartridge-based products and growing selection of disposables and open-system products have earned the loyalty of adult smokers worldwide. As a trusted e-vapor brand for adult smokers, we remain committed to creating innovative, high-quality products in line with shifting trends and regulations, meeting users' needs while driving RLX’s long-term growth."

 

Mr. Chao Lu, Chief Financial Officer of RLX Technology, added, "Our robust third quarter results were led by a 51.6% year-over-year increase in net revenues to RMB756.3 million, underscoring the success of our internationalization efforts. Our gross margin also improved year over year, expanding 3.1 percentage points to 27.2%, thanks to a favorable shift in our revenue mix and our effective cost optimization initiatives. Notably, we maintained stable non-GAAP operating expenses while rapidly growing revenue, highlighting our operational leverage. We are also excited to continue returning value to our shareholders with our second cash dividend since our IPO while also executing our share repurchase program. Going forward, we will remain dedicated to pursuing development opportunities that deliver sustainable, growing profits and enhance returns for our shareholders."

 

Third Quarter 2024 Financial Results

 

Net revenues were RMB756.3 million (US$107.8 million) in the third quarter of 2024, compared with RMB498.9 million in the same period of 2023. The increase was primarily due to our international expansion.

 

Gross profit was RMB206.0 million (US$29.4 million) in the third quarter of 2024, compared with RMB120.0 million in the same period of 2023.

 

Gross margin was 27.2% in the third quarter of 2024, compared with 24.1% in the same period of 2023. The increase was primarily due to a favorable change in the revenue mix and the cost optimization efforts.

 

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.

 

 

Operating expenses were RMB216.6 million (US$30.9 million) in the third quarter of 2024, compared with RMB154.4 million in the same period of 2023. The increase was primarily due to the fluctuation of share-based compensation expenses, from RMB24.8 million in the third quarter of 2023 to RMB92.5 million (US$13.2 million) in the third quarter of 2024. The changes in share-based compensation expenses were primarily due to the changes in the fair value of the share incentive awards that the Company granted to its employees in line with the fluctuations in the Company's share price.

 

Selling expenses were RMB69.0 million (US$9.8 million) in the third quarter of 2024, compared with RMB44.8 million in the same period of 2023, primarily due to an increase in share-based compensation expenses and branding expenses.

 

General and administrative expenses were RMB123.2 million (US$17.6 million) in the third quarter of 2024, compared with RMB78.8 million in the same period of 2023, primarily due to an increase in share-based compensation expenses.

 

Research and development expenses were RMB24.4 million (US$3.5 million) in the third quarter of 2024, compared with RMB30.8 million in the same period of 2023, primarily due to a decrease in salaries, welfare benefits and depreciation and amortization expenses, slightly offset by an increase in share-based compensation expenses.

 

Loss from operations was RMB10.7 million (US$1.5 million) in the third quarter of 2024, compared with RMB34.3 million in the same period of 2023.

 

Income tax expense was RMB30.4 million (US$4.3 million) in the third quarter of 2024, compared with RMB1.7 million in the same period of 2023.

 

U.S. GAAP net income was RMB169.4 million (US$24.1 million) in the third quarter of 2024, compared with RMB176.6 million in the same period of 2023.

 

Non-GAAP net income was RMB261.9 million (US$37.3 million) in the third quarter of 2024, compared with RMB201.4 million in the same period of 2023.

 

U.S. GAAP basic and diluted net income per American depositary share ("ADS") were RMB0.135 (US$0.019) and RMB0.129 (US$0.018), respectively, in the third quarter of 2024, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.133 and RMB0.130, respectively, in the same period of 2023.

 

Non-GAAP basic and diluted net income per ADS² were RMB0.211 (US$0.030) and RMB0.200 (US$0.029), respectively, in the third quarter of 2024, compared with non-GAAP basic and diluted net income per ADS of RMB0.152 and RMB0.149, respectively, in the same period of 2023.

 

Balance Sheet and Cash Flow

 

As of September 30, 2024, the Company had cash and cash equivalents, restricted cash, short-term bank deposits, net, short-term investments, net, long-term bank deposits, net and long-term investment securities, net of RMB15,361.7 million (US$2,189.0 million), compared with RMB14,930.8 million as of June 30, 2024. In the third quarter of 2024, net cash generated from operating activities was RMB156.6 million (US$22.3 million).

 

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.

 

 

Dividend Payment

 

The Company announced that its Board of Directors approved a cash dividend of US$0.01 per ordinary share, or US$0.01 per ADS, to holders of ordinary shares and holders of ADSs, respectively, as of the close of business on December 6, 2024 Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The payment date is expected to be on or around December 13, 2024 and on or around December 20, 2024 for holders of ordinary shares and holders of ADSs, respectively.

 

Conference Call

 

The Company's management will host an earnings conference call at 7:00 AM U.S. Eastern Time on November 15, 2024 (8:00 PM Beijing/Hong Kong Time on November 15, 2024).

 

Dial-in details for the earnings conference call are as follows:

 

United States (toll-free):	+1-888-317-6003
International:	+1-412-317-6061
Hong Kong, China (toll-free):	+800-963-976
Hong Kong, China:	+852-5808-1995
Mainland China:	400-120-6115
Participant Code:	6222824

 

Participants should dial in 10 minutes before the scheduled start time and ask to be connected to the call for "RLX Technology Inc." with the Participant Code as set forth above.

 

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 November 22, 2024, by dialing the following telephone numbers:

 

United States:	+1-877-344-7529
International:	+1-412-317-0088
Replay Access Code:	7489030

 

About RLX Technology Inc.

 

RLX Technology Inc. (NYSE: RLX) is a leading global branded e-vapor company. The Company leverages its strong in-house technology, product development capabilities and in-depth insights into adult smokers' needs to develop superior e-vapor products.

 

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 RLX Technology Inc. and the same number of ADSs used in U.S. GAAP basic and diluted net income per ADS calculation.

 

 

 

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 U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. They should not be considered in isolation or construed as an alternative to net income, basic and diluted net income per ADS or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review its historical non-GAAP financial measures to the most directly comparable U.S. GAAP measures. The non-GAAP financial measures here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure.

 

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 U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" and similar statements. Among other things, quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's growth strategies; its future business development, results of operations and financial condition; trends and competition in global e-vapor market; changes in its revenues and certain cost or expense items; governmental policies, laws and regulations across various jurisdictions relating to the Company's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is current as of the date of this press release, and the Company does not undertake any obligation to update such information, except as required under applicable law.

 

 

For more information, please contact:

 

In China:

 

RLX Technology Inc.
Head of Capital Markets
Sam Tsang

Email: ir@relxtech.com

 

Piacente Financial Communications

Jenny Cai

Tel: +86-10-6508-0677

Email: RLX@tpg-ir.com

 

In the United States:

 

Piacente Financial Communications

Brandi Piacente

Tel: +1-212-481-2050

Email: RLX@tpg-ir.com

 

 

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands)

 

		As of
		December 31, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			2,390,298				3,255,500				463,905
Restricted cash			29,760				58,265				8,303
Short-term bank deposits, net			2,631,256				2,602,887				370,908
Receivables from online payment platforms			6,893				5,357				763
Short-term investments			3,093,133				2,199,658				313,449
Accounts and notes receivable, net			60,482				121,939				17,376
Inventories			144,850				81,432				11,604
Amounts due from related parties			118,736				248,762				35,448
Prepayments and other current assets, net			508,435				299,409				42,666
Total current assets			8,983,843				8,873,209				1,264,422
Non-current assets:
Property, equipment and leasehold improvement, net			77,358				56,998				8,122
Intangible assets, net			69,778				59,156				8,430
Long-term investments, net			8,000				8,000				1,140
Deferred tax assets, net			58,263				58,262				8,302
Right-of-use assets, net			52,562				31,304				4,461
Long-term bank deposits, net			1,757,804				1,022,279				145,674
Long-term investment securities, net			5,236,109				6,223,159				886,791
Goodwill			66,506				64,528				9,195
Other non-current assets, net			4,874				5,632				803
Total non-current assets			7,331,254				7,529,318				1,072,918
Total assets			16,315,097				16,402,527				2,337,340
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and notes payable			266,426				352,403				50,217
Contract liabilities			49,586				24,508				3,492
Salary and welfare benefits payable			39,256				75,047				10,694
Taxes payable			77,164				127,526				18,172
Accrued expenses and other current liabilities			103,996				107,771				15,357
Amounts due to related parties			101,927				10,380				1,479
Dividend payable			881				-				-
Lease liabilities - current portion			29,435				16,710				2,381
Total current liabilities			668,671				714,345				101,792
Non-current liabilities:
Deferred tax liabilities			23,591				21,757				3,100
Lease liabilities - non-current portion			24,419				7,136				1,017
Total non-current liabilities			48,010				28,893				4,117
Total liabilities			716,681				743,238				105,909
Shareholders' Equity:
Total RLX Technology Inc. shareholders' equity			15,609,393				15,662,993				2,231,959
Noncontrolling interests			(10,977	)			(3,704	)			(528	)
Total shareholders' equity			15,598,416				15,659,289				2,231,431
Total liabilities and shareholders' equity			16,315,097				16,402,527				2,337,340

 

 

RLX TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(All amounts in thousands, except for share and per share data)

 

		For the three months ended																For the nine months ended
		September 30,																September 30,
		2023 (As adjusted) (a)				June 30, 2024				September 30, 2024				September 30, 2024				2023 (As adjusted) (a)				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				US$				RMB				RMB				US$
Net revenues			498,929				627,176				756,288				107,770				1,065,929				1,935,087				275,748
Cost of revenues			(278,578	)			(400,712	)			(473,379	)			(67,456	)			(529,004	)			(1,201,701	)			(171,241	)
Excise tax on products			(100,313	)			(68,602	)			(76,933	)			(10,963	)			(272,624	)			(226,775	)			(32,315	)
Gross profit			120,038				157,862				205,976				29,351				264,301				506,611				72,192
Operating expenses:
Selling expenses			(44,751	)			(62,235	)			(68,975	)			(9,829	)			(175,738	)			(184,097	)			(26,234	)
General and administrative expenses			(78,849	)			(128,997	)			(123,226	)			(17,560	)			(293,985	)			(362,177	)			(51,610	)
Research and development expenses			(30,783	)			40				(24,435	)			(3,482	)			(150,782	)			(55,935	)			(7,971	)
Total operating expenses			(154,383	)			(191,192	)			(216,636	)			(30,871	)			(620,505	)			(602,209	)			(85,815	)
Loss from operations			(34,345	)			(33,330	)			(10,660	)			(1,520	)			(356,204	)			(95,598	)			(13,623	)
Other income：
Interest income, net			158,260				154,207				156,659				22,324				469,951				469,724				66,935
Investment income			21,028				12,718				13,070				1,862				63,001				38,564				5,495
Others, net			33,412				22,739				40,745				5,806				183,949				92,427				13,171
Income before income tax			178,355				156,334				199,814				28,472				360,697				505,117				71,978
Income tax expense			(1,746	)			(21,389	)			(30,423	)			(4,335	)			(35,677	)			(68,156	)			(9,712	)
Net income			176,609				134,945				169,391				24,137				325,020				436,961				62,266
Less: net income attributable to noncontrolling interests			1,579				2,631				3,737				532				4,169				7,085				1,010
Net income attributable to RLX Technology Inc.			175,030				132,314				165,654				23,605				320,851				429,876				61,256
Other comprehensive (loss)/income:
Foreign currency translation adjustments			(83,978	)			44,174				(181,148	)			(25,813	)			331,004				(124,268	)			(17,708	)
Unrealized income on long-term investment securities			3,508				705				5,292				754				11,920				5,984				853
Total other comprehensive (loss)/income			(80,470	)			44,879				(175,856	)			(25,059	)			342,924				(118,284	)			(16,855	)
Total comprehensive income/(loss)			96,139				179,824				(6,465	)			(922	)			667,944				318,677				45,411
Less: total comprehensive income attributable to noncontrolling interests			1,579				2,618				3,730				531				4,169				7,078				1,010
Total comprehensive income/(loss) attributable to RLX Technology Inc.			94,560				177,206				(10,195	)			(1,453	)			663,775				311,599				44,401
Net income per ordinary share/ADS
Basic			0.133				0.108				0.135				0.019				0.244				0.348				0.050
Diluted			0.130				0.103				0.129				0.018				0.239				0.333				0.047
Weighted average number of ordinary shares/ADSs
Basic			1,316,452,743				1,228,869,526				1,225,417,517				1,225,417,517				1,317,292,081				1,234,501,619				1,234,501,619
Diluted			1,344,359,144				1,284,388,803				1,287,927,444				1,287,927,444				1,344,018,578				1,289,831,349				1,289,831,349

 

Note (a): The Company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction in accordance with ASC 805-50. The Company retrospectively adjusted the above comparative unaudited condensed consolidated statements of comprehensive income/(loss) in the prior quarter and prior nine months period.

 

 

 

RLX TECHNOLOGY INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share and per share data, or otherwise noted)

 

		For the three months ended																For the nine months ended
		September 30, 2023 (As adjusted) (b)				June 30, 2024				September 30, 2024				September 30, 2024				September 30, 2023 (As adjusted) (b)				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				US$				RMB				RMB				US$
Net income			176,609				134,945				169,391				24,137				325,020				436,961				62,266
Add: share-based compensation expenses
Selling expenses			(4,045	)			9,172				5,768				822				4,571				19,543				2,785
General and administrative expenses			29,771				93,026				85,295				12,154				140,190				244,735				34,874
Research and development expenses			(936	)			(24,074	)			1,446				206				1,490				(18,747	)			(2,671	)
Non-GAAP net income			201,399				213,069				261,900				37,319				471,271				682,492				97,254
Net income attributable to RLX Technology Inc.			175,030				132,314				165,654				23,605				320,851				429,876				61,256
Add: share-based compensation expenses			24,790				78,124				92,509				13,182				146,251				245,531				34,988
Non-GAAP net income attributable to RLX Technology Inc.			199,820				210,438				258,163				36,787				467,102				675,407				96,244
Non-GAAP net income per ordinary share/ADS
- Basic			0.152				0.171				0.211				0.030				0.355				0.547				0.078
- Diluted			0.149				0.164				0.200				0.029				0.348				0.524				0.075
Weighted average number of ordinary shares/ADSs
- Basic			1,316,452,743				1,228,869,526				1,225,417,517				1,225,417,517				1,317,292,081				1,234,501,619				1,234,501,619
- Diluted			1,344,359,144				1,284,388,803				1,287,927,444				1,287,927,444				1,344,018,578				1,289,831,349				1,289,831,349

 

Note (b): The Company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction in accordance with ASC 805-50. The Company retrospectively adjusted the above unaudited reconciliation of GAAP and Non-GAAP results in the prior quarter and prior nine months period.

 

 

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands)

 

		For the three months ended																For the nine months ended
		September 30, 2023 (As adjusted) (c)				June 30, 2024				September 30, 2024				September 30, 2024				September 30, 2023 (As adjusted) (c)				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				US$				RMB				RMB				US$
Net cash generated from/(used in) operating activities			82,853				196,764				156,554				22,309				(106,494	)			357,338				50,920
Net cash generated from investing activities			967,234				557,132				139,120				19,824				1,780,871				1,116,917				159,159
Net cash used in financing activities			(206,577	)			-				(74,780	)			(10,656	)			(401,311	)			(547,665	)			(78,042	)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash			(5,918	)			10,032				(45,818	)			(6,529	)			52,884				(32,883	)			(4,685	)
Net increase in cash and cash equivalents and restricted cash			837,592				763,928				175,076				24,948				1,325,950				893,707				127,352
Cash, cash equivalents and restricted cash at the beginning of the period			1,777,444				2,374,761				3,138,689				447,260				1,289,086				2,420,058				344,856
Cash, cash equivalents and restricted cash at the end of the period			2,615,036				3,138,689				3,313,765				472,208				2,615,036				3,313,765				472,208

 

Note (c): The Company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction in accordance with ASC 805-50. The Company retrospectively adjusted the above comparative unaudited condensed consolidated statements of cash flows in the prior quarter and prior nine months period.

 

 

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