RLX Technology(RLX) - 2023 Q4 - Annual Report

Revenue Contribution - For the year ended December 31, 2023, Shenzhen Yihaoji Technology Limited contributed 0% to the company's net revenues, down from 16.9% in 2022 and 22.7% in 2021[823]. Purchases and Accounts Payable - Purchases from Shenzhen Smoore Technology Limited accounted for 58% of total purchases in 2023, down from 80% in 2022 and 75% in 2021, with accounts payable to this manufacturer representing 74% of total accounts payable as of December 31, 2023[823]. Investor Relations and IPO Expenses - The company received US$9.4 million from the depositary for expenses related to investor relationship programs in 2023[833]. - The total expenses incurred for the company's initial public offering from January 21, 2021, to December 31, 2023, were approximately US$55.0 million, including US$52.3 million in underwriting discounts and commissions[837]. - The net proceeds from the initial public offering and exercise of the over-allotment option amounted to approximately US$1,553.0 million[837]. - Approximately US$12.9 million of the net proceeds from the initial public offering were used for dividend payments from the closing of the offering to December 31, 2023[838]. Financial Risk Management - The company does not hold any trading instruments and most financial assets are in demand deposits or highly liquid investment products, minimizing market risks[817]. - The company has not used any derivative financial instruments to hedge foreign exchange risks, as revenues and expenses are generally denominated in RMB[818]. - Credit risk is considered immaterial as cash and cash equivalents are placed in reputable financial institutions with high credit ratings[821]. - The company performs credit evaluations and ongoing monitoring processes to mitigate risks associated with accounts and notes receivable[822].