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, 2024.
Fourth Quarter 2024Financial Highlights
— Net revenueswere RMB813.5million (US$111.4million) in the fourth quarter of 2024, compared withRMB520.5million in the same period of 2023.
— Gross marginwas 27.0% in the fourth quarter of 2024, compared with 23.7% in the same periodof 2023.
— U.S. GAAP netincomewas RMB127.4million (US$17.5million) in the fourthquarter of 2024, compared with RMB216.0million in the same period of 2023.
— Non-GAAP net income[1] was RMB251.5million (US$34.5million) in the fourth quarter of 2024, compared with RMB432.6million in the same period of 2023.
Fiscal Year 2024 Financial Highlights
— Net revenueswere RMB2,748.6million (US$376.6million) in fiscal year 2024, compared with RMB1,586.4million in the prior year.
— Gross marginwas 26.4% in fiscal year 2024, compared with 24.4% in the prior year.
— U.S. GAAP net incomewas RMB564.3 million (US$77.3 million) in fiscal year 2024, compared with RMB541.0million in the prior year.
— Non-GAAP net incomewas RMB934.0 million (US$128.0 million) in fiscal year 2024, compared with RMB903.9million in the prior year.
“2024 was a remarkable year for RLX, highlighted by tremendous progress in our global operations,” commented Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and Chief Executive Officer of RLX Technology. “We've holistically upgraded our organizational framework and refined our business models to address international markets' diverse and dynamic needs, driving significant growth and solidifying our market leadership in multiple regions. The innovative open-system and disposable e-vapor products we introduced in 2024 set new trends across the international markets, reaffirming our dedication to advancing harm-reduction solutions. Moving into 2025, we will prioritize innovation, compliance, and diversity in our product portfolio while navigating the industry dynamics to capture new opportunities and drive long-term success.”
Mr. Chao Lu, Chief Financial Officer of RLX Technology, added, “Our focus on global expansion throughout 2024 fueled an impressive year-over-year increase in full-year revenue to RMB 2.7 billion, up 73.3%. Notably, in the fourth quarter alone, we achieved a non-GAAP operating profit of RMB112.6 million, marking a sequential rise for the fourth consecutive quarter and culminating in a significant return to profitability for the full year 2024. Furthermore, we continued to return value to our shareholders through our share repurchase program and cash dividends. Looking ahead, we will continue to pursue sustainable, profitable growth and enhanced shareholder returns through ongoing innovation and strong strategic execution.”
Fourth Quarter 2024 Financial Results
Net revenueswere RMB813.5million (US$111.4million) in the fourth quarter of 2024, compared with RMB520.5million in the same period of 2023.The increase was primarily due to our international expansion.
Gross profitwas RMB219.9million (US$30.1 million) in the fourth quarter of 2024, compared with RMB123.4million in the same periodof 2023.
Gross marginwas 27.0% in the fourth quarter of 2024, compared with 23.7% in the same periodof 2023. The increase was primarily due to a favorable change in the revenue mixand cost optimization initiatives.
Operating expenseswere RMB231.5million (US$31.7million) in the fourth quarter of 2024, compared with RMB263.9million in the same periodof 2023. The decrease was primarily due to the fluctuation of share-based compensation expenses, offset by the increase in salaries and welfare 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 in line with the fluctuations in the Company's share price.
Selling expenses were RMB45.4million (US$6.2 million) in the fourth quarter of 2024, compared with RMB38.0million in the same periodof 2023, primarily due to an increase in salaries, welfare benefits and branding expenses.
General and administrative expenseswereRMB153.7million (US$21.1million) in the fourth quarter of 2024, compared with RMB204.0million in the same periodof 2023, primarily due toa decrease in share-based compensation expenses as well as in legal and other consulting fees, slightly offset by an increase in salaries and welfare expenses.
Research and development expenses were RMB32.4million (US$4.4 million) in the fourth quarter of 2024, compared with RMB21.9million in the same periodof 2023, primarily due toan increase in salaries and welfare expenses, slightly offset by a decrease in share-based compensation expenses.
Lossfrom operationswas RMB11.5million (US$1.6million) in the fourthquarter of 2024, compared with loss from operations of RMB140.5million in the same period of 2023.
Income tax expensewas RMB26.3million (US$3.6million) in the fourth quarter of 2024, compared with RMB15.1million in the same period of 2023.
U.S. GAAPnet incomewas RMB127.4million (US$17.5 million) in the fourth quarter of 2024, compared with RMB216.0million in the same period of 2023.
Non-GAAPnet incomewas RMB251.5million (US$34.5 million) in the fourth quarter of 2024, compared with RMB432.6million in the same period of 2023.
U.S. GAAP basic and diluted net income per American depositary share (“ADS”)were RMB0.100(US$0.014)and RMB0.094(US$0.013), respectively,in the fourth quarter of 2024, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.166and RMB0.161, respectively, in the same periodof 2023.
Non-GAAP basic and diluted net incomeper ADS[2]were RMB0.201(US$0.028)and RMB0.190(US$0.026), respectively, in the fourth quarter of 2024, compared with non-GAAP basic and diluted net income per ADS of RMB0.335and RMB0.325, respectively, in the same period of 2023.
BalanceSheet and Cash Flow
As of December31, 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 RMB15,870.8million (US$2,174.3million), compared with RMB15,361.7 million as of September 30, 2024.In the fourth quarter of 2024, net cash generated from operating activities was RMB497.0million (US$68.1million).
Fiscal Year 2024 Financial Results
Net revenues were RMB2,748.6 million (US$376.6 million) in fiscal year 2024, compared with RMB1,586.4 million in the prior year. The increase was primarily due to our international expansion.
Gross profit was RMB726.5 million (US$99.5 million) in fiscal year 2024, compared with RMB387.7 million in the prior year.
Gross marginincreased to 26.4% in fiscal year 2024 from 24.4% in the prior year, primarily due to a favorable change in the revenue mixand cost optimization initiatives.
Operating expenses were RMB833.7 million (US$114.2 million) in fiscal year 2024, representing a decrease of 5.7% from RMB884.4 million in the prior year. The decrease in operating expenses was primarily due to the decreasein salaries and welfare benefits.
Selling expenses increased by 7.4% to RMB229.5 million (US$31.4 million) in fiscal year 2024 from RMB 213.7 million in the prior year, mainly driven by the increase in branding expenses and share-based compensation expenses, offset by a decrease in salaries and welfare expenses.
General and administrative expenses increased by 3.6% to RMB515.9 million (US$70.7 million) in fiscal year 2024 from RMB498.0 million in the prior year, primarily attributable to the increase in share-based compensation expenses and software and technical service expenses, slightly offset by a decrease in legal and consulting expenses as well as in depreciation and amortization expenses.
Research and development expenses decreased by 48.9% to RMB88.3 million (US$12.1 million) in fiscal year 2024 from RMB172.7 million in the prior year, mainly driven by the decrease in share-based compensation expenses and salaries and welfare benefits.
Loss from operations was RMB107.1 million (US$14.7 million) in fiscal year 2024, compared with RMB 496.7 million in the prior year.
Income tax expense was RMB94.5 million (US$12.9 million) in fiscal year 2024, representing an increase of 86.1% from RMB50.8 million in the prior year.
U.S. GAAP net income was RMB564.3 million (US$77.3 million) in fiscal year 2024, compared with RMB541.0 million in the prior year.
Non-GAAP net income was RMB934.0 million (US$128.0 million) in fiscal year 2024, compared with RMB903.9 million in the prior year.
U.S. GAAP basic and diluted net income per ADSwere RMB0.448 (US$0.061) and RMB0.428 (US$0.059), respectively, in fiscal year 2024, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.407 and RMB0.399, respectively, in the prior year.
Non-GAAP basic and diluted net income per ADSwere RMB0.748 (US$0.102) and RMB0.715 (US$0.098), respectively, in fiscal year 2024, compared with non-GAAP basic and diluted net income per ADS of RMB0.684 and RMB0.669, respectively, in the prior year.
Share Repurchase Program and Dividend Payment
The Company repurchased approximately US$109.2million of its ordinary shares represented by ADSs during fiscal year 2024. As of December 31, 2024, the Company had cumulatively repurchased US$304.7 million of its ordinary shares represented by ADSs.
By repurchasing shares throughout 2024 and declaring cash dividends in November 2024, the Company returned approximately US$122.9million to its shareholders during fiscal year 2024.
Conference Call
The Company's management will host an earnings conference call at 8:00AM U.S. Eastern Time on March 14, 2025 (8:00 PM Beijing/Hong Kong Time on March 14,2025).
Dial-in details for the earnings conference call are as follows:
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 21, 2025, by dialing the following telephone numbers:
AboutRLX 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, non-GAAP operating profit 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 RMB7.2993 to US$1.00, the exchange rate on December31, 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 the 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
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