6-K
RLX Technology Inc. (RLX)
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 March 2023
Commission File Number: 001-39902
RLX Technology Inc.
19/F, Building 1, Junhao Central Park Plaza
No. 10 South Chaoyang Park Avenue
Chaoyang District, Beijing 100026
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: March 10, 2023
Exhibit 99.1
RLX Technology Announces Unaudited Fourth Quarterand Fiscal Year 2022 Financial Results
BEIJING, March 10, 2023 /PRNEWSWIRE/ - RLX Technology Inc. ("RLX Technology" or the "Company") (NYSE: RLX), a leading branded e-vapor company in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights
| · | Net revenues were RMB340.0 million (US$49.3 million), compared with RMB1,904.4 million in the same<br>period of 2021. |
|---|---|
| · | Gross margin was 43.6%, compared with 40.2% in the same period of 2021. |
| · | U.S. GAAP net loss was RMB225.1 million (US$32.6 million), compared with U.S. GAAP net income of<br>RMB494.4 million in the same period of 2021. |
| · | Non-GAAP net income^1^<br>was RMB249.7 million (US$36.2 million), compared with RMB536.5 million in the same period of 2021. |
Fiscal Year 2022 Financial Highlights
| · | Net revenues were RMB5,332.8 million (US$773.2<br>million) in fiscal year 2022, compared with RMB8,521.0 million in the prior year. |
|---|---|
| · | Gross margin was 43.2% in fiscal year 2022, compared with 43.1% in<br>the prior year. |
| · | U.S. GAAP net income was RMB1,408.7 million<br>(US$204.2 million) in fiscal year 2022, compared with RMB2,028.1 million in the prior year. |
| · | Non-GAAP net income was RMB1,574.9 million<br>(US$228.3 million) in fiscal year 2022, compared with RMB2,251.5 million in the prior year. |
"2022 was a year full of unprecedented challenges. A combination of COVID-related disruptions and the introduction of a substantial package of industry regulations and policy updates throughout the year impacted the e-vapor sector and our operations. We retained our core strategy in this volatile operating environment while proactively adapting our business to the new regulations. In the fourth quarter, we continued to invest in R&D and product innovation and development, offering superior products to adult smokers. We believe our core competencies will enable us to attract continued support from users," said Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and CEO of RLX Technology. "Looking ahead, given the benefits of the clearer regulatory framework and China's reopening, we remain confident in the long-term growth of our industry. We are well-positioned to adapt to these shifting market forces and capture new opportunities while further deepening our commitment to honoring our social responsibilities."
"We concluded 2022 with a challenging fourth quarter, delivering net revenues of RMB340.0 million. The sequential decrease in sales was largely due to the major impact of COVID-19 and the implementation of the new national standards. Specifically, lockdowns and the vast wave of infections toward the end of the fourth quarter disrupted our operations. Furthermore, our gross margin in the fourth quarter decreased sequentially as a result of the imposition of a 36% excise tax on e-cigarette products, which took effect on November 1, 2022," said Mr. Chao Lu, Chief Financial Officer of RLX Technology. "Despite the headwinds, we strove to improve operational efficiency to mitigate the adverse impact on our business. As a result, we maintained a healthy level of profitability during 2022. We believe our Company's resilience will enable us to overcome near-term obstacles, and we remain dedicated to creating long-term sustainable 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 2022 Financial Results
Netrevenues were RMB340.0 million (US$49.3 million) in the fourth quarter of 2022, compared with RMB1,904.4 million in the same period of 2021. The decrease was primarily due to the impact of regulatory changes, which were fully implemented in this quarter, and COVID-19, as numerous regions in China were in partial lockdown during the fourth quarter of 2022.
Grossprofit was RMB148.3 million (US$21.5 million) in the fourth quarter of 2022, compared with RMB765.5 million in the same period of 2021.
Grossmargin was 43.6% in the fourth quarter of 2022, compared with 40.2% in the same period of 2021. The increase was primarily due to the adjustment of effective ex-factory prices, the improvement of supply chain efficiency, and a favorable change in product mix, partially offset by the imposition of a 36% excise tax which came into effect on November 1, 2022.
Operatingexpenses were RMB620.4 million (US$90.0 million) in the fourth quarter of 2022, compared with RMB231.5 million in the same period of 2021. The increase was primarily due to the change in share-based compensation expenses, which were RMB474.9 million (US$68.8 million) in the fourth quarter of 2022 compared with RMB42.1 million in the same period of 2021. These consisted of share-based compensation expenses of (i) RMB41.2 million (US$6.0 million) recognized in selling expenses, (ii) RMB369.4 million (US$53.6 million) recognized in general and administrative expenses, and (iii) RMB64.2 million (US$9.3 million) recognized in research and development expenses. The change in share-based compensation expenses was primarily due to the changes in the fair value of the share incentive awards that the Company granted to its employees as affected by the fluctuations of the Company's share price.
Sellingexpenses were RMB96.7 million (US$14.0 million) in the fourth quarter of 2022, compared with RMB46.6 million in the same period of 2021, primarily due to the fluctuation of share-based compensation expenses.
Generaland administrative expenses were RMB394.2 million (US$57.2 million) in the fourth quarter of 2022, compared with RMB167.1 million in the same period of 2021, mainly driven by the fluctuation of share-based compensation expenses.
Researchand development expenses were RMB129.6 million (US$18.8 million) in the fourth quarter of 2022, compared with RMB17.8 million in the same period of 2021, mainly driven by the fluctuation of share-based compensation expenses.
Lossfrom operations was RMB472.2 million (US$68.5 million) in the fourth quarter of 2022, compared with an income from operations of RMB534.0 million in the same period of 2021.
Incometax benefit was RMB16.2 million (US$2.4 million) in the fourth quarter of 2022, compared with income tax expense of RMB129.5 million in the same period of 2021.
U.S.GAAP net loss was RMB225.1 million (US$32.6 million) in the fourth quarter of 2022, compared with U.S. GAAP net income of RMB494.4 million in the same period of 2021.
Non-GAAP****net income was RMB249.7 million (US$36.2 million) in the fourth quarter of 2022, compared with RMB536.5 million in the same period of 2021.
U.S.GAAP basic and diluted net loss per American depositary share ("ADS") were RMB0.174 (US$0.025) and RMB0.174 (US$0.025), respectively, in the fourth quarter of 2022, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.367 and RMB0.363, respectively, in the same period of 2021.
Non-GAAPbasic and diluted net income per ADS^2^ were RMB0.188 (US$0.027) and RMB0.186 (US$0.027), respectively, in the fourth quarter of 2022, compared with non-GAAP basic and diluted net income per ADS of RMB0.398 and RMB0.394, respectively, in the same period of 2021.
Balance****Sheet and Cash Flow
As of December 31, 2022, the Company had cash and cash equivalents, restricted cash, short-term bank deposits, net, short-term investments, long-term bank deposits, net and long-term investment securities of RMB15,733.7 million (US$2,281.2 million), compared with RMB14,857.8 million as of December 31, 2021. For the fourth quarter ended December 31, 2022, net cash used in operating activities was RMB248.9 million (US$36.1 million).
Fiscal Year 2022 Financial Results
Netrevenues were RMB5,332.8 million (US$773.2 million) in fiscal year 2022, compared with RMB8,521.0 million in the prior year. The decrease was primarily due to the suspension of store expansion, the discontinuation of older products during the transition to the new national standards, and COVID-19.
Gross profitwas RMB2,305.1 million (US$334.2 million) in fiscal year 2022, compared with RMB3,672.1 million in the prior year.
Grossmargin increased to 43.2% in fiscal year 2022 from 43.1% in the prior year, primarily due to the improvement of supply chain efficiency and the adjustment of effective ex-factory prices, partially offset by the increase in inventory provision and the imposition of a 36% excise tax which came into effect on November 1, 2022.
Operatingexpenses were RMB1,241.7 million (US$180.0 million) in fiscal year 2022, representing a decrease of 9.6% from RMB1,373.4 million in the prior year. The decrease in operating expenses was primarily due to the change in share-based compensation expenses, which decreased by 25.6% to RMB166.2 million (US$24.1 million) in fiscal year 2022 from RMB223.3 million in the prior year. The decrease in share-based compensation expenses was primarily due to the changes in the fair value of the share incentive awards that the Company granted to its employees as affected by the fluctuations of the Company's share price.
Selling expensesdecreased by 33.2% to RMB347.8 million (US$50.4 million) in fiscal year 2022 from RMB520.7 million in the prior year, mainly driven by the decrease in (i) branding material expenses and (ii) shipping expenses.
Generaland administrative expenses decreased by 14.3% to RMB576.8 million (US$83.6 million) in fiscal year 2022 from RMB672.7 million in the prior year, primarily attributable to the decrease in share-based compensation expenses.
Research anddevelopment expenses increased by 76.3% to RMB317.1 million (US$46.0 million) in fiscal year 2022 from RMB179.9 million in the prior year, mainly driven by the increase in (i) share-based compensation expenses and (ii) salaries and welfare benefits.
^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.
Income from operationswas RMB1,063.4 million (US$154.2 million) in fiscal year 2022, compared with RMB2,298.7 million in the prior year.
Income tax expensewas RMB371.6 million (US$53.9 million) in fiscal year 2022, representing a decrease of 41.2% from RMB631.4 million in the prior year.
U.S. GAAP netincome was RMB1,408.7 million (US$204.2 million) in fiscal year 2022, compared with RMB2,028.1 million in the prior year.
Non-GAAP netincome was RMB1,574.9 million (US$228.3 million) in fiscal year 2022, compared with RMB2,251.5 million in the prior year.
U.S.GAAP basic and diluted net income per ADS were RMB1.092 (US$0.158) and RMB1.085 (US$0.157), respectively, in fiscal year 2022, compared with U.S. GAAP basic and diluted net income per ADS of RMB1.445 and RMB1.436 respectively, in the prior year.
Non-GAAPbasic and diluted net income per ADS were RMB1.218 (US$0.177) and RMB1.210 (US$0.175), respectively, in fiscal year 2022, compared with non-GAAP basic and diluted net income per ADS of RMB1.604 and RMB1.595 respectively, in the prior year.
Conference Call
The Company's management will host an earnings conference call at 7:00 A.M. U.S. Eastern Time on March 10, 2023 (8:00 P.M. Beijing/Hong Kong Time on March 10, 2023).
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: | 9162095 |
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 17, 2023, by dialing the following telephone numbers:
| United States: | +1-877-344-7529 |
|---|---|
| International: | +1-412-317-0088 |
| Replay Access Code: | 4638951 |
About RLX Technology Inc.
RLX Technology Inc. (NYSE: RLX) is a leading branded e-vapor company in China. 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 RMB6.8972 to US$1.00, the exchange rate on December 30, 2022, 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 Investor Relations
Sam Tsang
Email: ir@relxtech.com
The Piacente Group, Inc.
Jenny Cai
Tel: +86-10-6508-0677
Email: RLX@tpg-ir.com
In the United States:
The Piacente Group, Inc.
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, | December 31, | December 31, | |||||
| 2021 | 2022 | 2022 | |||||
| RMB | RMB | US | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | 5,208,967 | 1,268,512 | |||||
| Restricted cash | 500 | 20,574 | |||||
| Short-term bank deposits, net | 4,022,119 | 7,084,879 | |||||
| Receivables from online payment platforms | 10,006 | 3,000 | |||||
| Short-term investments | 3,621,637 | 2,434,864 | |||||
| Accounts and notes receivable, net | 14,024 | 51,381 | |||||
| Inventories, net | 589,088 | 130,901 | |||||
| Amounts due from related parties | 1,936 | 5,112 | |||||
| Prepayments and other current assets, net | 482,659 | 198,932 | |||||
| Total current assets | 13,950,936 | 11,198,155 | |||||
| Non-current assets: | |||||||
| Property, equipment and leasehold improvement, net | 143,155 | 87,871 | |||||
| Intangible assets, net | 8,366 | 7,552 | |||||
| Long-term investments, net | 12,000 | 8,000 | |||||
| Deferred tax assets, net | 20,856 | 63,894 | |||||
| Right-of-use assets, net | 176,258 | 75,008 | |||||
| Long-term bank deposits, net | 2,004,593 | 1,515,428 | |||||
| Long-term investment securities, net | - | 3,409,458 | |||||
| Other non-current assets | 48,961 | 13,458 | |||||
| Total non-current assets | 2,414,189 | 5,180,669 | |||||
| Total assets | 16,365,125 | 16,378,824 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts and notes payable | 1,288,845 | 269,346 | |||||
| Contract liabilities | 286,651 | 75,226 | |||||
| Salary and welfare benefits payable | 170,393 | 127,749 | |||||
| Taxes payable | 597,761 | 109,676 | |||||
| Amounts due to related parties | - | 423 | |||||
| Accrued expenses and other current liabilities | 313,396 | 161,455 | |||||
| Lease liabilities - current portion | 80,582 | 45,955 | |||||
| Total current liabilities | 2,737,628 | 789,830 | |||||
| Non-current liabilities: | |||||||
| Deferred tax liabilities | 4,513 | 8,653 | |||||
| Lease liabilities - non-current portion | 104,232 | 39,968 | |||||
| Total non-current liabilities | 108,745 | 48,621 | |||||
| Total liabilities | 2,846,373 | 838,451 | |||||
| Shareholders' Equity: | |||||||
| Total RLX Technology Inc. shareholders' equity | 13,514,952 | 15,569,060 | |||||
| Noncontrolling interests | 3,800 | (28,687 | ) | ) | |||
| Total shareholders' equity | 13,518,752 | 15,540,373 | |||||
| Total liabilities and shareholders' equity | 16,365,125 | 16,378,824 |
All values are in US Dollars.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Allamounts in thousands, except for share and per share data, or otherwise noted)
| For<br> the three months ended | For<br> the year ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2022 | 2022 | 2022 | 2021 | 2022 | 2022 | |||||||||||||
| RMB | RMB | RMB | US | RMB | RMB | US | |||||||||||||
| Net<br> revenues | 1,904,355 | 1,044,424 | 340,012 | 8,520,978 | 5,332,779 | ||||||||||||||
| Cost<br> of revenues | (1,138,826 | ) | (522,451 | ) | (139,073 | ) | ) | (4,848,918 | ) | (2,974,981 | ) | ) | |||||||
| Excise<br> tax on products | - | - | (52,668 | ) | ) | - | (52,668 | ) | ) | ||||||||||
| Gross<br> profit | 765,529 | 521,973 | 148,271 | 3,672,060 | 2,305,130 | ||||||||||||||
| Operating<br> expenses: | |||||||||||||||||||
| Selling<br> expenses | (46,628 | ) | (52,544 | ) | (96,673 | ) | ) | (520,694 | ) | (347,798 | ) | ) | |||||||
| General<br> and administrative expenses | (167,108 | ) | 41,746 | (394,207 | ) | ) | (672,748 | ) | (576,811 | ) | ) | ||||||||
| Research<br> and development expenses | (17,797 | ) | (45,978 | ) | (129,558 | ) | ) | (179,913 | ) | (317,110 | ) | ) | |||||||
| Total<br> operating expenses | (231,533 | ) | (56,776 | ) | (620,438 | ) | ) | (1,373,355 | ) | (1,241,719 | ) | ) | |||||||
| Income/(loss)<br> from operations | 533,996 | 465,197 | (472,167 | ) | ) | 2,298,705 | 1,063,411 | ||||||||||||
| Other<br> income: | |||||||||||||||||||
| Interest<br> income, net | 24,297 | 56,237 | 54,617 | 72,414 | 180,729 | ||||||||||||||
| Investment<br> income | 27,964 | 38,104 | 25,557 | 94,222 | 136,531 | ||||||||||||||
| Others,<br> net | 37,694 | 16,573 | 150,625 | 194,209 | 399,641 | ||||||||||||||
| Income/(loss)<br> before income tax | 623,951 | 576,111 | (241,368 | ) | ) | 2,659,550 | 1,780,312 | ||||||||||||
| Income<br> tax (expense)/benefit | (129,536 | ) | (70,871 | ) | 16,243 | (631,426 | ) | (371,580 | ) | ) | |||||||||
| Net<br> income/(loss) | 494,415 | 505,240 | (225,125 | ) | ) | 2,028,124 | 1,408,732 | ||||||||||||
| Less:<br> net income/(loss) attributable to noncontrolling interests | 891 | 1,883 | 3,355 | 3,411 | (32,487 | ) | ) | ||||||||||||
| Net<br> income/(loss) attributable to RLX Technology Inc. | 493,524 | 503,357 | (228,480 | ) | ) | 2,024,713 | 1,441,219 | ||||||||||||
| Other<br> comprehensive(loss)/income: | |||||||||||||||||||
| Foreign<br> currency translation adjustments | (181,851 | ) | 618,060 | (215,246 | ) | ) | (149,188 | ) | 937,428 | ||||||||||
| Unrealized<br> loss on long-term investment securities | - | - | (5,425 | ) | ) | - | (5,425 | ) | ) | ||||||||||
| Total<br> other comprehensive (loss)/income | (181,851 | ) | 618,060 | (220,671 | ) | ) | (149,188 | ) | 932,003 | ||||||||||
| Total<br> comprehensive income/(loss) | 312,564 | 1,123,300 | (445,796 | ) | ) | 1,878,936 | 2,340,735 | ||||||||||||
| Less:<br> total comprehensive income/(loss) attributable to noncontrolling interests | 891 | 1,883 | 3,355 | 3,411 | (32,487 | ) | ) | ||||||||||||
| Total<br> comprehensive income/(loss) attributable to RLX Technology Inc. | 311,673 | 1,121,417 | (449,151 | ) | ) | 1,875,525 | 2,373,222 | ||||||||||||
| Net<br> income/(loss) per ordinary share/ADS | |||||||||||||||||||
| Basic | 0.367 | 0.381 | (0.174 | ) | ) | 1.445 | 1.092 | ||||||||||||
| Diluted | 0.363 | 0.379 | (0.174 | ) | ) | 1.436 | 1.085 | ||||||||||||
| Weighted<br> average number of ordinary shares/ADSs | |||||||||||||||||||
| Basic | 1,346,184,770 | 1,322,824,853 | 1,310,229,331 | 1,401,371,494 | 1,319,732,802 | ||||||||||||||
| Diluted | 1,358,494,650 | 1,329,164,753 | 1,310,229,331 | 1,409,690,879 | 1,328,144,092 |
All values are in US Dollars.
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, | December 31, | December 31, | December 31, | December 31, | ||||||
| 2021 | 2022 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||
| RMB | RMB | RMB | US | RMB | RMB | US | ||||||
| Net income/(loss) | 494,415 | 505,240 | (225,125 | ) | (32,640 | 2,028,124 | 1,408,732 | 204,245 | ||||
| Add: share-based compensation expenses | ||||||||||||
| Selling expenses | 1,885 | (24,189 | ) | 41,239 | 5,979 | (19,653 | ) | (6,993 | ) | (1,014 | ||
| General and administrative expenses | 45,107 | (128,200 | ) | 369,447 | 53,565 | 302,070 | 162,229 | 23,521 | ||||
| Research and development expenses | (4,872 | ) | (24,242 | ) | 64,165 | 9,303 | (59,072 | ) | 10,925 | 1,584 | ||
| Non-GAAP net income | 536,535 | 328,609 | 249,726 | 36,207 | 2,251,469 | 1,574,893 | 228,336 | |||||
| Net income/(loss) attributable to RLX Technology Inc. | 493,524 | 503,357 | (228,480 | ) | (33,126 | 2,024,713 | 1,441,219 | 208,955 | ||||
| Add: share-based compensation expenses | 42,120 | (176,631 | ) | 474,851 | 68,847 | 223,345 | 166,161 | 24,091 | ||||
| Non-GAAP net income attributable to RLX Technology Inc. | 535,644 | 326,726 | 246,371 | 35,721 | 2,248,058 | 1,607,380 | 233,046 | |||||
| Non-GAAP net income per ordinary share/ADS | ||||||||||||
| - Basic | 0.398 | 0.247 | 0.188 | 0.027 | 1.604 | 1.218 | 0.177 | |||||
| - Diluted | 0.394 | 0.246 | 0.186 | 0.027 | 1.595 | 1.210 | 0.175 | |||||
| Weighted average number of ordinary shares/ADSs | ||||||||||||
| - Basic | 1,346,184,770 | 1,322,824,853 | 1,310,229,331 | 1,310,229,331 | 1,401,371,494 | 1,319,732,802 | 1,319,732,802 | |||||
| - Diluted | 1,358,494,650 | 1,329,164,753 | 1,324,475,455 | 1,324,475,455 | 1,409,690,879 | 1,328,144,092 | 1,328,144,092 |
All values are in US Dollars.
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, | December 31, | December 31, | December 31, | December 31, | ||||||
| 2021 | 2022 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||
| RMB | RMB | RMB | US | RMB | RMB | US | ||||||
| Net cash generated from/(used in) operating activities | 465,738 | (1,016,862 | ) | (248,866 | ) | (36,082 | 1,799,892 | 486,829 | 70,584 | |||
| Net cash (used in)/generated from investing activities | (1,397,519 | ) | 211,064 | 752,545 | 109,109 | (7,870,660 | ) | (4,133,040 | ) | (599,234 | ||
| Net cash (used in)/generated from financing activities | (127,516 | ) | (19,822 | ) | (150,647 | ) | (21,842 | 9,904,121 | (477,270 | ) | (69,198 | |
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (99,770 | ) | 22,772 | 29,287 | 4,246 | (78,687 | ) | 203,100 | 29,446 | |||
| Net (decrease)/increase in cash and cash equivalents and restricted cash | (1,159,067 | ) | (802,848 | ) | 382,319 | 55,431 | 3,754,666 | (3,920,381 | ) | (568,402 | ||
| Cash, cash equivalents and restricted cash at the beginning of the period | 6,368,534 | 1,709,615 | 906,767 | 131,469 | 1,454,801 | 5,209,467 | 755,302 | |||||
| Cash, cash equivalents and restricted cash at the end of the period | 5,209,467 | 906,767 | 1,289,086 | 186,900 | 5,209,467 | 1,289,086 | 186,900 |
All values are in US Dollars.