EX-99.1 2 tm249439d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

RLX Technology Announces Unaudited Fourth Quarter and Fiscal Year 2023 Financial Results

 

SHENZHEN, March 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 fourth quarter and the fiscal year ended December 31, 2023.

 

Fourth Quarter 2023 Financial Highlights

 

·Net revenues were RMB520.5 million (US$73.3 million) in the fourth quarter of 2023, compared with RMB340.0 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 net income was RMB216.0 million (US$30.4 million) in the fourth quarter of 2023, compared with U.S. GAAP net loss of RMB225.1 million in the same period of 2022.

·Non-GAAP net income1 was RMB432.6 million (US$60.9 million) in the fourth quarter of 2023, compared with RMB249.7 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 with RMB5,332.8 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 was RMB541.0 million (US$76.2 million) in fiscal year 2023, compared with RMB1,408.7 million in the prior year.

·Non-GAAP net income was RMB903.9 million (US$127.3 million) in fiscal year 2023, compared with RMB1,574.9 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) Wang, Co-founder, Chairperson of the Board of Directors, and CEO of RLX Technology. “We embarked on our international expansion during the fourth quarter, focusing on markets and product categories with the highest growth potential. By acquiring and integrating resources across diverse markets, we can create powerful synergies and elevate operational efficiency, enhancing our global competitiveness. 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. Looking ahead, we will continue to expand our business to more markets and develop innovative and premium products to meet our users’ evolving needs.”

 

Mr. Chao Lu, Chief Financial Officer of RLX Technology, commented, “2023 was a pivotal year of progress for RLX’s domestic operations. We decisively refined our business structure to align with China’s new regulatory environment, driving steady improvements in our financial performance while building a firm foundation for our sustainable future. In the fourth quarter of 2023, we achieved a non-GAAP operating profit of RMB76.1 million, marking a significant turnaround from the previous quarters’ losses and reflecting our robust rebound and growth trajectory. Furthermore, we continued to return value to our shareholders through our share repurchase program and cash dividend, with approximately US$112 million in 2023. We also extended our share repurchase program for an additional 24-month period, demonstrating our confidence in the Company’s long-term prospects. Going forward, our financial strength and solid balance sheet will empower us to pursue development opportunities that create value for our stakeholders.”

 

 

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.

 

 

 

 

Fourth Quarter 2023 Financial Results

 

Net revenues were RMB520.5 million (US$73.3 million) in the fourth quarter of 2023, compared with RMB340.0 million in the same period of 2022. The increase was primarily due to our international expansion in Southeast and North Asia.

 

Gross profit was RMB123.4 million (US$17.4 million) in the fourth quarter of 2023, compared with RMB148.3 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. The decrease was primarily due to the imposition of a 36% excise tax, which came into effect on November 1, 2022, and an unfavorable change in revenue mix.

 

Operating expenses were RMB263.9 million (US$37.2 million) in the fourth quarter of 2023, compared with RMB620.4 million in the same period of 2022. The decrease was primarily due to a decrease in share-based compensation expenses, which were RMB216.6 million (US$30.5 million) in the fourth quarter of 2023, compared with RMB474.9 million in the same period of 2022. The changes in share-based compensation expenses consisted of (i) RMB12.1 million (US$1.7 million) recognized in selling expenses, (ii) RMB194.2 million (US$27.3 million) recognized in general and administrative expenses, and (iii) RMB10.3 million (US$1.5 million) recognized in research and development expenses. 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 with the fluctuations of the Company’s share price.

 

Selling expenses were RMB38.0 million (US$5.4 million) in the fourth quarter of 2023, compared with RMB96.7 million in the same period of 2022, primarily due to a decrease in share-based compensation expenses, salaries and welfare benefits.

 

General and administrative expenses were RMB204.0 million (US$28.7 million) in the fourth quarter of 2023, compared with RMB394.2 million in the same period of 2022, mainly driven by a decrease in share-based compensation expenses, salaries and welfare benefits.

 

Research and development expenses were RMB21.9 million (US$3.1 million) in the fourth quarter of 2023, compared with RMB129.6 million in the same period of 2022, mainly driven by a decrease in share-based compensation expenses, salaries and welfare benefits.

 

Loss from operations was RMB140.5 million (US$19.8 million) in the fourth quarter of 2023, compared with RMB472.2 million in the same period of 2022.

 

Income tax expense was RMB15.1 million (US$2.1 million) in the fourth quarter of 2023, compared with income tax benefit of RMB16.2 million in the same period of 2022.

 

U.S. GAAP net income was RMB216.0 million (US$30.4 million) in the fourth quarter of 2023, compared with U.S. GAAP net loss of RMB225.1 million in the same period of 2022.

 

Non-GAAP net income was RMB432.6 million (US$60.9 million) in the fourth quarter of 2023, compared with RMB249.7 million in the same period of 2022.

 

U.S. GAAP basic and diluted net income per American depositary share (“ADS”) were RMB0.166 (US$0.023) and RMB0.161 (US$0.023) in the fourth quarter of 2023, respectively, compared with U.S. GAAP basic and diluted net loss per ADS of RMB0.174 and RMB0.174, in the same period of 2022.

 

 

 

 

Non-GAAP basic and diluted net income per ADS2 were RMB0.335 (US$0.047) and RMB0.325 (US$0.046), respectively, in the fourth quarter of 2023, compared with non-GAAP basic and diluted net income per ADS of RMB0.188 and RMB0.186, respectively, in the same period of 2022.

 

Balance Sheet and Cash Flow

 

As of December 31, 2023, 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 RMB15,138.4 million (US$2,132.2 million), compared with RMB15,186.7 million as of September 30, 2023. For the fourth quarter ended December 31, 2023, net cash generated from operating activities was RMB305.2 million (US$43.0 million).

 

Fiscal Year 2023 Financial Results

 

Net revenues were RMB1,586.4 million (US$223.4 million) in fiscal year 2023, compared with RMB5,332.8 million in the prior year. The decrease was primarily due to the discontinuation of older products.

 

Gross profit was RMB387.7 million (US$54.6 million) in fiscal year 2023, compared with RMB2,305.1 million in the prior year.

 

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 November 1, 2022.

 

Operating expenses were RMB884.4 million (US$124.6 million) in fiscal year 2023, representing a decrease of 28.8% from RMB1,241.7 million in the prior year. The decrease in operating expenses was primarily due to the decrease in salaries and welfare benefits.

 

Selling expenses decreased by 38.5% to RMB213.7 million (US$30.1 million) in fiscal year 2023 from RMB347.8 million in the prior year, mainly driven by a decrease in salaries and welfare benefits.

 

General and administrative expenses decreased by 13.7% to RMB498.0 million (US$70.1 million) in fiscal year 2023 from RMB576.8 million in the prior year, primarily attributable to the decrease in salaries and welfare benefits and accrued liabilities to suppliers.

 

Research and development expenses decreased by 45.5% to RMB172.7 million (US$24.3 million) in fiscal year 2023 from RMB317.1 million in the prior year, mainly driven by a decrease in salaries and welfare benefits.

 

Loss from operations was RMB496.7 million (US$70.0 million) in fiscal year 2023, compared with an income from operations of RMB1,063.4 million in the prior year.

 

Income tax expense was RMB50.8 million (US$7.1 million) in fiscal year 2023, representing a decrease of 86.3% from RMB371.6 million in the prior year.

 

U.S. GAAP net income was RMB541.0 million (US$76.2 million) in fiscal year 2023, compared with RMB1,408.7 million in the prior year.

 

Non-GAAP net income was RMB903.9 million (US$127.3 million) in fiscal year 2023, compared with RMB1,574.9 million in the prior year.

 

U.S. GAAP basic and diluted net income per ADS were RMB0.407 (US$0.057) and RMB0.399 (US$0.056), respectively, in fiscal year 2023, compared with U.S. GAAP basic and diluted net income per ADS of RMB1.092 and RMB1.085, respectively, in the prior year.

 

 

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.

 

 

 

 

Non-GAAP basic and diluted net income per ADS were RMB0.684 (US$0.096) and RMB0.669 (US$0.094), respectively, in fiscal year 2023, compared with non-GAAP basic and diluted net income per ADS of RMB1.218 and RMB1.210, respectively, in the prior year.

 

Share Repurchase Program and Dividend Payment

 

The Company repurchased approximately US$98.5 million of its ordinary shares represented by ADSs during the fiscal year of 2023 and US$195.5 million of its ordinary shares represented by ADSs cumulatively, as of December 31, 2023. In December 2023, the Company’s board of directors authorized the extension of its existing share repurchase program established in December 2021 for an additional 24-month period through December 31, 2025.

 

In November 2023, 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 1, 2023 Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The cash dividend was paid in December 2023 to shareholders. The aggregate amount of the dividend is approximately US$13.0 million.

 

Conference Call

 

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on March 15, 2024 (8:00 PM Beijing/Hong Kong Time on March 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: 1473355

 

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

 

United States: +1-877-344-7529
International: +1-412-317-0088
Replay Access Code: 9792377

 

 

 

 

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 RMB7.0999 to US$1.00, the exchange rate on December 29, 2023, 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 China’s e-vapor market; changes in its revenues and certain cost or expense items; PRC governmental policies, laws and regulations 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,       
  

2022

(As adjusted) (a)

  

December 31,

2023

  

December 31,

2023

 
   RMB   RMB   US$ 
ASSETS               
Current assets:               
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:               
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 
Goodwill   -    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 
                
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities:               
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 
                
Non-current liabilities:               
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 
                
Shareholders' Equity:               
Total RLX Technology Inc. shareholders' equity   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 
         　    　 
Total liabilities and shareholders' equity   16,378,824    16,315,097    2,297,936 

 

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 consolidated balance sheets in prior year.

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME

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

                 

    For the three months ended     For the year ended  
    December 31,     September 30,                 December 31,              
    2022
(As adjusted) (b)		     2023
(As adjusted) (b)		     December 31,
2023		     December 31,
2023		     2022
(As adjusted) (b)		     December 31,
2023		     December 31,
2023		  
    RMB     RMB     RMB     US$     RMB     RMB     US$  
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  
                                                         
Operating expenses:                                                        
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 )
                                                         
(Loss)/income from operations     (472,167 )     (34,345 )     (140,506 )     (19,790 )     1,063,411       (496,710 )     (69,960 )
                                                         
Other income：                                                        
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 interests     3,355       1,579       2,491       351       (32,487 )     6,660       938  
Net (loss)/income attributable to RLX Technology Inc.     (228,480 )     175,030       213,477       30,068       1,441,219       534,328       75,258  
Other comprehensive (loss)/income:                     　       　               　       　  
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 noncontrolling interests     3,355       1,579       2,491       351       (32,487 )     6,660       938  
Total comprehensive (loss)/income attributable to RLX Technology Inc.     (449,151 )     94,560       69,719       9,820       2,373,222       733,494       103,310  
                                                         
Net (loss)/income per ordinary share/ADS                                                        
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  
                                                         
Weighted average number of ordinary shares/ADSs                                                        
Basic     1,310,229,331       1,316,452,743       1,285,752,182       1,285,752,182       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       1,328,144,092       1,340,445,653       1,340,445,653  

 

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 comparative consolidated statements of comprehensive (loss)/income in prior quarters/year.

 

 

 

 

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 year ended 
   December 31,   September 30,           December 31,         
   2022
(As adjusted) (c)		   2023
(As adjusted) (c)		   December 31,
2023		   December 31,
2023		   2022
(As adjusted) (c)		   December 31,
2023		   December 31,
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             　    　         　    　 
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    1,574,893    903,856    127,304 
              　    　         　    　 
Net (loss)/income attributable to RLX Technology Inc.   (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 Technology Inc.   246,371    199,820    430,093    60,578    1,607,380    897,196    126,366 
                                    
Non-GAAP net income per ordinary share/ADS                                   
- 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 shares/ADSs                                   
- Basic   1,310,229,331    1,316,452,743    1,285,752,182    1,285,752,182    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    1,328,144,092    1,340,445,653    1,340,445,653 

 

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 unaudited reconciliation of GAAP and Non-GAAP results in prior quarters/year.

 

 

 

 

 RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands)

 

   For the three months ended   For the year ended 
   December 31,   September 30,           December 31,         
   2022
(As adjusted) (d)		   2023
(As adjusted) (d)		   December 31,
2023		   December 31,
2023		   2022
(As adjusted) (d)		   December 31,
2023		   December 31,
2023		 
   RMB   RMB   RMB   US$   RMB   RMB   US$ 
Net cash (used in)/generated from operating activities   (248,866)   82,853    305,197    42,986    486,829    198,703    27,987 
Net cash generated from/(used in) investing activities   752,545    967,234    310,274    43,701    (4,133,040)   2,091,145    294,532 
Net cash used in financing activities   (150,647)   (206,577)   (791,905)   (111,537)   (477,270)   (1,193,216)   (168,061)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash   29,287    (5,918)   (18,544)   (2,612)   203,100    34,340    4,836 
Net increase/(decrease) in cash and cash equivalents and restricted cash   382,319    837,592    (194,978)   (27,462)   (3,920,381)   1,130,972    159,294 
Cash, cash equivalents and restricted cash at the beginning of the period   906,767    1,777,444    2,615,036    368,320    5,209,467    1,289,086    181,564 
Cash, cash equivalents and restricted cash at the end of the period   1,289,086    2,615,036    2,420,058    340,858    1,289,086    2,420,058    340,858 

 

Note (d): 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 consolidated statements of cash flows in prior quarters/year.