RLX Technology Announces Unaudited Fourth Quarter and Fiscal Year 2024 Financial Results

Core Viewpoint - RLX Technology Inc. reported significant growth in its financial results for the fourth quarter and fiscal year 2024, driven by international expansion and innovative product offerings, while focusing on sustainable growth and shareholder returns moving forward [2][13]. Financial Highlights - Fourth quarter net revenues reached RMB 813.5 million (US$ 111.4 million), a 56.3% increase from RMB 520.5 million in Q4 2023 [3][14]. - Full-year revenue for 2024 was RMB 2.7 billion (US$ 376.6 million), representing a 73.3% increase from RMB 1.6 billion in 2023 [13][19]. - Gross profit for Q4 2024 was RMB 219.9 million (US$ 30.1 million), up from RMB 123.4 million in Q4 2023 [3][14]. - The gross margin improved to 27.0% in Q4 2024 from 23.7% in the same period of 2023 [4][14]. Operating Expenses - Operating expenses in Q4 2024 were RMB 231.5 million (US$ 31.7 million), down from RMB 263.9 million in Q4 2023, primarily due to fluctuations in share-based compensation expenses [5][14]. - Selling expenses increased to RMB 45.4 million (US$ 6.2 million) in Q4 2024, compared to RMB 38.0 million in Q4 2023, driven by higher salaries and branding expenses [6][14]. - General and administrative expenses decreased to RMB 153.7 million (US$ 21.1 million) in Q4 2024 from RMB 204.0 million in Q4 2023 [7][14]. Profitability - The company achieved a non-GAAP operating profit of RMB 112.6 million (US$ 15.4 million) in Q4 2024, marking a return to profitability for the full year [2][14]. - U.S. GAAP net income for Q4 2024 was RMB 127.4 million (US$ 17.5 million), down from RMB 216.0 million in Q4 2023 [9][14]. - Non-GAAP net income for Q4 2024 was RMB 251.5 million (US$ 34.5 million), compared to RMB 432.6 million in the same period of 2023 [11][14]. Cash Flow and Balance Sheet - As of December 31, 2024, the company had cash and cash equivalents totaling RMB 15,870.8 million (US$ 2,174.3 million), an increase from RMB 15,361.7 million as of September 30, 2024 [12][14]. - Net cash generated from operating activities in Q4 2024 was RMB 497.0 million (US$ 68.1 million) [12][14]. Shareholder Returns - The company repurchased approximately US$ 109.2 million of its ordinary shares during fiscal year 2024 and returned approximately US$ 122.9 million to shareholders through share repurchases and cash dividends [21][14].