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 August 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: August 16, 2024

 

 

 

Exhibit 99.1

 

RLX Technology Announces Unaudited Second Quarter 2024 Financial Results

 

SHENZHEN, August 16, 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 second quarter ended June 30, 2024.

 

Second Quarter 2024 Financial Highlights

 

·

Net revenues were RMB627.2 million (US$86.3 million) in the second quarter of 2024, compared with RMB378.1 million in the same period of 2023.

·

Gross margin was 25.2% in the second quarter of 2024, compared with 26.1% in the same period of 2023.

·

U.S. GAAP net income was RMB134.9 million (US$18.6 million) in the second quarter of 2024, compared with RMB204.7 million in the same period of 2023.

·

Non-GAAP net income1 was RMB213.1 million (US$29.3 million) in the second quarter of 2024, compared with RMB86.2 million in the same period of 2023.

 

"We delivered a strong second quarter performance as revenue continued to increase sequentially, driven by our international business expansion," commented Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and Chief Executive Officer of RLX Technology. "Our deep exploration of overseas markets and regulations has provided us with valuable insights into the global e-vapor landscape, enabling us to create effective, targeted regional strategies. This year, global regulations are rapidly evolving, with more regulators recognizing e-vapor products as harm-reduction tools for adult smokers. Leveraging our broad expertise in regulatory compliance, we are well-prepared to navigate these changes and ensure a seamless transition for our users and partners. We remain dedicated to product innovation as a key driver of user engagement and market share and are collaborating closely with local partners to introduce compelling offerings. As a trusted e-vapor brand for adult smokers, we will continue to deliver high-quality, compliant products while capitalizing on diverse growth opportunities around the globe."

 

Mr. Chao Lu, Chief Financial Officer of RLX Technology, added, "In the second quarter, our net revenues reached RMB627.2 million, a 66% year-over-year increase that underscores our ability to capture growth opportunities in international markets. While our gross margin declined slightly due to an unfavorable shift in our revenue mix, disciplined cost management bolstered our non-GAAP operating profit margins. Looking ahead, we are confident of driving continued improvement in both our top and bottom lines, fueled by ongoing revenue growth from international markets and our relentless focus on operational efficiency. As always, our priority is to deliver sustainable and profitable returns to our shareholders."

 

Second Quarter 2024 Financial Results

 

Net revenues were RMB627.2 million (US$86.3 million) in the second quarter of 2024, compared with RMB378.1 million in the same period of 2023. The increase was primarily due to our international expansion.

 

Gross profit was RMB157.9 million (US$21.7 million) in the second quarter of 2024, compared with RMB98.5 million in the same period of 2023.

 

Gross margin was 25.2% in the second quarter of 2024, compared with 26.1% in the same period of 2023. The decrease was primarily due to an unfavorable change in the revenue mix.

 

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 RMB191.2 million (US$26.3 million) in the second quarter of 2024, compared with RMB47.2 million in the same period of 2023. The increase was primarily due to an increase in share-based compensation expenses, from positive RMB118.5 million in the second quarter of 2023 to RMB78.1 million (US$10.8 million) in the second 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 with the fluctuations of the Company's share price.

 

Selling expenses were RMB62.2 million (US$8.6 million) in the second quarter of 2024, compared with RMB45.2 million in the same period of 2023, primarily due to an increase in share-based compensation expenses.

 

General and administrative expenses were RMB129.0 million (US$17.8 million) in the second quarter of 2024, compared with positive RMB41.4 million in the same period of 2023, primarily due to an increase in share-based compensation expenses.

 

Research and development expenses were positive RMB0.04 million (US$0.005 million) in the second quarter of 2024, compared with RMB43.3 million in the same period of 2023, primarily due to a decrease in salaries, welfare benefits and share-based compensation expenses.

 

Loss from operations was RMB33.3 million (US$4.6 million) in the second quarter of 2024, compared with income from operations of RMB51.4 million in the same period of 2023.

 

Income tax expense was RMB21.4 million (US$2.9 million) in the second quarter of 2024, compared with RMB51.5 million in the same period of 2023.

 

U.S. GAAP net income was RMB134.9 million (US$18.6 million) in the second quarter of 2024, compared with RMB204.7 million in the same period of 2023.

 

Non-GAAP net income was RMB213.1 million (US$29.3 million) in the second quarter of 2024, compared with RMB86.2 million in the same period of 2023.

 

U.S. GAAP basic and diluted net income per American depositary share ("ADS") were RMB0.108 (US$0.015) and RMB0.103 (US$0.014), respectively, in the second quarter of 2024, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.154 and RMB0.150, respectively, in the same period of 2023.

 

Non-GAAP basic and diluted net income per ADS² were RMB0.171 (US$0.024) and RMB0.164 (US$0.023), respectively, in the second quarter of 2024, compared with non-GAAP basic and diluted net income per ADS of RMB0.064 and RMB0.062, respectively, in the same period of 2023.

 

Balance Sheet and Cash Flow

As of June 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 RMB14,930.8 million (US$2,054.5 million), compared with RMB14,681.4 million as of March 31, 2024. In the second quarter of 2024, net cash generated from operating activities was RMB196.8 million (US$27.1 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.

 

 

Conference Call

 

The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 16, 2024 (8:00 PM Beijing/Hong Kong Time on August 16, 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:	3613850

 

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 August 23, 2024, by dialing the following telephone numbers:

 

United States:	+1-877-344-7529
International:	+1-412-317-0088
Replay Access Code:	9416265

 

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 RMB 7.2672 to US$1.00, the exchange rate on June 28, 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,				June 30,				June 30,
		2023				2024				2024
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			2,390,298				3,076,781				423,379
Restricted cash			29,760				61,908				8,519
Short-term bank deposits, net			2,631,256				2,615,677				359,929
Receivables from online payment platforms			6,893				5,619				773
Short-term investments, net			3,093,133				2,604,414				358,379
Accounts and notes receivable, net			60,482				114,428				15,746
Inventories			144,850				84,306				11,601
Amounts due from related parties			118,736				196,791				27,079
Prepayments and other current assets, net			508,435				709,991				97,698
Total current assets			8,983,843				9,469,915				1,303,103
Non-current assets:
Property, equipment and leasehold improvement, net			77,358				63,192				8,696
Intangible assets, net			69,778				60,215				8,286
Long-term investments, net			8,000				8,000				1,101
Deferred tax assets, net			58,263				58,264				8,017
Right-of-use assets, net			52,562				39,604				5,450
Long-term bank deposits, net			1,757,804				876,340				120,588
Long-term investment securities, net			5,236,109				5,695,667				783,750
Goodwill			66,506				62,606				8,615
Other non-current assets, net			4,874				6,499				894
Total non-current assets			7,331,254				6,870,387				945,397
Total assets			16,315,097				16,340,302				2,248,500
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and notes payable			266,426				323,811				44,558
Contract liabilities			49,586				56,908				7,831
Salary and welfare benefits payable			39,256				60,048				8,263
Taxes payable			77,164				79,197				10,898
Accrued expenses and other current liabilities			103,996				99,440				13,683
Amounts due to related parties			101,927				10,984				1,511
Dividend payable			881				-				-
Lease liabilities - current portion			29,435				28,202				3,881
Total current liabilities			668,671				658,590				90,625
Non-current liabilities:
Deferred tax liabilities			23,591				21,790				2,998
Lease liabilities - non-current portion			24,419				13,124				1,808
Total non-current liabilities			48,010				34,914				4,806
Total liabilities			716,681				693,504				95,431
Shareholders' Equity:
Total RLX Technology Inc. shareholders' equity			15,609,393				15,654,233				2,154,092
Noncontrolling interests			(10,977	)			(7,435	)			(1,023	)
Total shareholders' equity			15,598,416				15,646,798				2,153,069
Total liabilities and shareholders' equity			16,315,097				16,340,302				2,248,500

 

 

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

 

		For the three months ended																For the six months ended
		June 30, 2023				March 31,				June 30,				June 30,				June 30, 2023				June 30,				June 30,
		(As adjusted) (a)				2024				2024				2024				(As adjusted) (a)				2024				2024
		RMB				RMB				RMB				US$				RMB				RMB				US$
Net revenues			378,123				551,623				627,176				86,302				567,000				1,178,799				162,208
Cost of revenues			(171,733	)			(327,610	)			(400,712	)			(55,140	)			(250,426	)			(728,322	)			(100,220	)
Excise tax on products			(107,853	)			(81,240	)			(68,602	)			(9,440	)			(172,311	)			(149,842	)			(20,619	)
Gross profit			98,537				142,773				157,862				21,722				144,263				300,635				41,369
Operating expenses:
Selling expenses			(45,226	)			(52,887	)			(62,235	)			(8,564	)			(130,987	)			(115,122	)			(15,841	)
General and administrative expenses			41,368				(109,954	)			(128,997	)			(17,751	)			(215,136	)			(238,951	)			(32,881	)
Research and development expenses			(43,317	)			(31,540	)			40				5				(119,999	)			(31,500	)			(4,335	)
Total operating expenses			(47,175	)			(194,381	)			(191,192	)			(26,310	)			(466,122	)			(385,573	)			(53,057	)
Income/(loss) from operations			51,362				(51,608	)			(33,330	)			(4,588	)			(321,859	)			(84,938	)			(11,688	)
Other income：
Interest income, net			162,888				158,858				154,207				21,220				311,691				313,065				43,079
Investment income			20,588				12,776				12,718				1,750				41,973				25,494				3,508
Others, net			21,380				28,943				22,739				3,129				150,537				51,682				7,112
Income before income tax			256,218				148,969				156,334				21,511				182,342				305,303				42,011
Income tax expense			(51,502	)			(16,344	)			(21,389	)			(2,943	)			(33,931	)			(37,733	)			(5,192	)
Net income			204,716				132,625				134,945				18,568				148,411				267,570				36,819
Less: net income attributable to noncontrolling interests			1,929				717				2,631				362				2,590				3,348				461
Net income attributable to RLX Technology Inc.			202,787				131,908				132,314				18,206				145,821				264,222				36,358
Other comprehensive income:
Foreign currency translation adjustments			563,078				12,706				44,174				6,078				414,982				56,880				7,827
Unrealized income/(loss) on long-term investment securities			5,539				(13	)			705				97				8,412				692				95
Total other comprehensive income			568,617				12,693				44,879				6,175				423,394				57,572				7,922
Total comprehensive income			773,333				145,318				179,824				24,743				571,805				325,142				44,741
Less: total comprehensive income attributable to noncontrolling interests			1,929				730				2,618				360				2,590				3,348				461
Total comprehensive income attributable to RLX Technology Inc.			771,404				144,588				177,206				24,383				569,215				321,794				44,280
Net income per ordinary share/ADS
Basic			0.154				0.106				0.108				0.015				0.111				0.213				0.029
Diluted			0.150				0.101				0.103				0.014				0.108				0.205				0.028
Weighted average number of ordinary shares/ADSs
Basic			1,318,628,588				1,249,317,641				1,228,869,526				1,228,869,526				1,317,718,705				1,239,093,583				1,239,093,583
Diluted			1,353,296,802				1,301,431,007				1,284,388,803				1,284,388,803				1,348,021,483				1,290,853,297				1,290,853,297

 

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 in the prior quarter.

 

 

RLX TECHNOLOGY INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

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

 

		For the three months ended																For the six months ended
		June 30, 2023				March 31,				June 30,				June 30,				June 30, 2023				June 30,				June 30,
		(As adjusted) (b)				2024				2024				2024				(As adjusted) (b)				2024				2024
		RMB				RMB				RMB				US$				RMB				RMB				US$
Net income			204,716				132,625				134,945				18,568				148,411				267,570				36,819
Add: share-based compensation expenses
Selling expenses			(15,338	)			4,603				9,172				1,262				8,617				13,775				1,895
General and administrative expenses			(90,923	)			66,414				93,026				12,801				110,420				159,440				21,940
Research and development expenses			(12,229	)			3,881				(24,074	)			(3,313	)			2,425				(20,193	)			(2,779	)
Non-GAAP net income			86,226				207,523				213,069				29,318				269,873				420,592				57,875
Net income attributable to RLX Technology Inc.			202,787				131,908				132,314				18,206				145,821				264,222				36,358
Add: share-based compensation expenses			(118,490	)			74,898				78,124				10,750				121,462				153,022				21,056
Non-GAAP net income attributable to RLX Technology Inc.			84,297				206,806				210,438				28,956				267,283				417,244				57,414
Non-GAAP net income per ordinary share/ADS
- Basic			0.064				0.166				0.171				0.024				0.203				0.337				0.046
- Diluted			0.062				0.159				0.164				0.023				0.198				0.323				0.044
Weighted average number of ordinary shares/ADSs
- Basic			1,318,628,588				1,249,317,641				1,228,869,526				1,228,869,526				1,317,718,705				1,239,093,583				1,239,093,583
- Diluted			1,353,296,802				1,301,431,007				1,284,388,803				1,284,388,803				1,348,021,483				1,290,853,297				1,290,853,297

 

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.

 

 

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands)

 

		For the three months ended																For the six months ended
		June 30, 2023				March 31,				June 30,				June 30,				June 30, 2023				June 30,				June 30,
		(As adjusted) (c)				2024				2024				2024				(As adjusted) (c)				2024				2024
		RMB				RMB				RMB				US$				RMB				RMB				US$
Net cash generated from/(used in) operating activities			41,339				4,020				196,764				27,076				(189,347	)			200,784				27,629
Net cash generated from investing activities			431,683				420,665				557,132				76,664				813,637				977,797				134,549
Net cash used in financing activities			(199,080	)			(472,885	)			-				-				(194,734	)			(472,885	)			(65,071	)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash			48,393				2,903				10,032				1,380				58,802				12,935				1,780
Net increase/(decrease) in cash and cash equivalents and restricted cash			322,335				(45,297	)			763,928				105,120				488,358				718,631				98,887
Cash, cash equivalents and restricted cash at the beginning of the period			1,455,109				2,420,058				2,374,761				326,778				1,289,086				2,420,058				333,011
Cash, cash equivalents and restricted cash at the end of the period			1,777,444				2,374,761				3,138,689				431,898				1,777,444				3,138,689				431,898

 

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.

 

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