RLX Technology(RLX) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenues for Q3 2024 were RMB756.3 million (US $107.8 million), a 51.6% increase from RMB498.9 million in Q3 2023[5] - U.S. GAAP net income was RMB169.4 million (US$ 24.1 million) in Q3 2024, compared to RMB176.6 million in Q3 2023[7] - Non-GAAP net income increased to RMB261.9 million (US $37.3 million) in Q3 2024, up from RMB201.4 million in Q3 2023[11] - Total net revenues for Q3 2023 were RMB 498,929,000, a decrease of 20.4% from RMB 627,176,000 in Q2 2023[31] - Net income attributable to RLX Technology Inc. for Q3 2023 was RMB 175,030,000, compared to RMB 132,314,000 in Q2 2023, an increase of 32.2%[31] - For the three months ended September 30, 2023, net income was RMB 176,609,000, a decrease of 1.8% compared to RMB 169,391,000 for the same period in 2022[33] - Non-GAAP net income for the three months ended September 30, 2023, was RMB 201,399,000, representing a 12.5% increase from RMB 178,800,000 in the previous year[33] - Non-GAAP net income attributable to RLX Technology Inc. for the three months ended September 30, 2023, was RMB 199,820,000, a 5.5% increase from RMB 189,000,000 in the previous year[33] Cost and Expenses - Gross margin improved to 27.2% in Q3 2024, up from 24.1% in Q3 2023, driven by a favorable revenue mix and cost optimization[6] - Operating expenses rose to RMB216.6 million (US$ 30.9 million) in Q3 2024, primarily due to increased share-based compensation expenses[8] - Research and development expenses decreased to RMB24.4 million (US $3.5 million) in Q3 2024, down from RMB30.8 million in Q3 2023[10] - Research and development expenses for Q3 2023 were RMB 30,783,000, compared to RMB 24,435,000 in Q2 2023, indicating increased investment in innovation[31] - The company incurred general and administrative expenses of RMB 29,771,000 for the three months ended September 30, 2023, a decrease of 68.5% from RMB 93,026,000 in the previous quarter[33] - Research and development expenses for the three months ended September 30, 2023, were RMB (936,000), indicating a significant recovery from RMB (24,074,000) in the previous quarter[33] Cash and Assets - Cash and cash equivalents totaled RMB15,361.7 million (US$ 2,189.0 million) as of September 30, 2024, an increase from RMB14,930.8 million as of June 30, 2024[14] - Cash and cash equivalents as of December 31, 2023, were RMB 2,390,298,000, down from RMB 3,255,500,000 as of September 30, 2023[30] - Total current assets as of December 31, 2023, were RMB 8,983,843,000, slightly up from RMB 8,873,209,000 as of September 30, 2023[30] - Total assets as of December 31, 2023, were RMB 16,315,097,000, a slight decrease from RMB 16,402,527,000 as of September 30, 2023[30] Dividends and Shareholder Returns - The company announced a cash dividend of US$0.01 per ordinary share, payable on or around December 13, 2024[16] Strategic Focus - The company maintained stable non-GAAP operating expenses while achieving significant revenue growth, indicating strong operational leverage[4] - The management emphasized commitment to innovative product development and market expansion to drive long-term growth[4] Acquisitions - The company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction[32] - The company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction[33]