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.

 

 


RLX Technology (NYSE:RLX)
Historical Stock Chart
Von Nov 2024 bis Dez 2024 Click Here for more RLX Technology Charts.
RLX Technology (NYSE:RLX)
Historical Stock Chart
Von Dez 2023 bis Dez 2024 Click Here for more RLX Technology Charts.