Technology

Weibo Announces Second Quarter 2024 Unaudited Financial Results

Published

3 months ago

August 22, 2024

BEIJING, Aug. 22, 2024 /PRNewswire/ — Weibo Corporation (“Weibo” or the “Company”) (Nasdaq: WB and HKEX: 9898), a leading social media in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.

“Our user engagement and operating efficiency have further improved this quarter,” said Gaofei Wang, CEO of Weibo. “On the user front, we emphasized on the acquisition and engagement of high quality users and saw improved user engagement this quarter. On the content front, we further optimized our content ecosystem through reinforcement of our core strength and solid execution of our vertical content strategy. On the monetization front, we are encouraged to see Weibo’s strength in hot trends and vertical content ecosystem has become the key driver of topline recovery. Underpinned by our stabilized overall business and consistent disciplined spending, our operating efficiency has improved this quarter.”

Second Quarter 2024 Highlights

Net revenues were US$437.9 million, a decrease of 1% year-over-year or an increase of 1% year-over-year on a constant currency basis [1].Advertising and marketing revenues were US$375.3 million, a decrease of 3% year-over-year or a decrease of 1% year-over-year on a constant currency basis [1].Value-added services (“VAS”) revenues were US$62.6 million, an increase of 15% year-over-year or an increase of 18% year-over-year on a constant currency basis [1].Income from operations was US$135.4 million, representing an operating margin of 31%.Net income attributable to Weibo’s shareholders was US$111.9 million and diluted net income per share was US$0.43.Non-GAAP income from operations was US$157.6 million, representing a non-GAAP operating margin of 36%.Non-GAAP net income attributable to Weibo’s shareholders was US$126.3 million and non-GAAP diluted net income per share was US$0.48.Monthly active users (“MAUs”) were 583 million in June 2024.Average daily active users (“DAUs”) were 256 million in June 2024.

[1] We define constant currency (non-GAAP) by assuming that the average exchange rate in the second quarter of 2024 had been the same as it was in the second quarter of 2023, or RMB7.03=US$1.00.

Second Quarter 2024 Financial Results

For the second quarter of 2024, Weibo’s total net revenues were US$437.9 million, a decrease of 1% compared to US$440.2 million for the same period last year.

Advertising and marketing revenues for the second quarter of 2024 were US$375.3 million, a decrease of 3% compared to US$385.7 million for the same period last year. Advertising and marketing revenues excluding advertising revenues from Alibaba were US$342.9 million, a decrease of 4% compared to US$358.9 million for the same period last year.

VAS revenues for the second quarter of 2024 were US$62.6 million, an increase of 15% year-over-year compared to US$54.6 million for the same period last year, primarily driven by the growth of revenues from membership services.

Costs and expenses for the second quarter of 2024 totaled US$302.5 million, a decrease of 5% compared to US$316.8 million for the same period last year. In addition to the foreign exchange impact, the decrease mainly resulted from lower personnel related costs.

Income from operations for the second quarter of 2024 was US$135.4 million, compared to US$123.5 million for the same period last year. Operating margin was 31%, compared to 28% last year. Non-GAAP income from operations was US$157.6 million, compared to US$153.8 million for the same period last year. Non-GAAP operating margin was 36%, compared to 35% last year.

Non-operating income for the second quarter of 2024 was US$11.4 million, compared to non-operating loss of US$13.8 million for the same period last year. Non-operating income for the second quarter of 2024 mainly included (i) net interest and other income of US$11.2 million; (ii) gain from fair value change of investments of US$9.3 million, which was excluded under non-GAAP measures; and (iii) impairment in equity investment of US$9.0 million, which was excluded under non-GAAP measures.

Income tax expenses for the second quarter of 2024 were US$33.3 million, compared to US$25.5 million for the same period last year. The increase was primarily due to withholding tax accrued related to earnings to be remitted to Weibo Hong Kong Limited from its wholly-owned subsidiary in China.

Net income attributable to Weibo’s shareholders for the second quarter of 2024 was US$111.9 million, compared to US$81.4 million for the same period last year. Diluted net income per share attributable to Weibo’s shareholders for the second quarter of 2024 was US$0.43, compared to US$0.34 for the same period last year. Non-GAAP net income attributable to Weibo’s shareholders for the second quarter of 2024 was US$126.3 million, compared to US$126.4 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo’s shareholders for the second quarter of 2024 was US$0.48, compared to US$0.53 for the same period last year.

As of June 30, 2024, Weibo’s cash, cash equivalents and short-term investments totaled US$2.8 billion. For the second quarter of 2024, cash provided by operating activities was US$132.1 million, capital expenditures totaled US$10.3 million, and depreciation and amortization expenses amounted to US$14.5 million.

Conference Call

Weibo’s management team will host a conference call from 7:00 AM to 8:00 AM Eastern Time on August 22, 2024 (or 7:00 PM to 8:00 PM Beijing Time on August 22, 2024) to present an overview of the Company’s financial performance and business operations.

Participants who wish to dial in to the teleconference must register through the below public participant link. Dial in and instruction will be in the confirmation email upon registering.

Participants Registration Link:
https://register.vevent.com/register/BI8263b36dae6d4ec0b241bfee48aa09d0

Additionally, a live and archived webcast of this conference call will available at http://ir.weibo.com.

Non-GAAP Financial Measures

This release contains the following non-GAAP financial measures: non-GAAP income from operations, non-GAAP net income attributable to Weibo’s shareholders, non-GAAP diluted net income per share attributable to Weibo’s shareholders and adjusted EBITDA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company’s financial performance prepared in accordance with U.S. GAAP.

The Company’s non-GAAP financial measures exclude stock-based compensation, amortization of intangible assets resulting from business acquisitions, net results of impairment and provision on investments, gain/loss on sale of investments and fair value change of investments, non-GAAP to GAAP reconciling items on the share of equity method investments, non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests, income tax expense related to the amortization of intangible assets resulting from business acquisitions and fair value change of investments (other non-GAAP to GAAP reconciling items have no tax effect), and amortization of issuance cost of convertible senior notes, unsecured senior notes and long-term loans. Adjusted EBITDA represents non-GAAP net income attributable to Weibo’s shareholders before interest income/expense, net, income tax expenses/benefits, and depreciation expenses.

The Company’s management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company’s ongoing operating performance in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company’s current financial results with the Company’s past financial results in a consistent manner, and (ii) in understanding and evaluating the Company’s current operating performance and future prospects in the same manner as management does. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company’s non-GAAP financial measures do not include all income and expense items that affect the Company’s operations. They may not be comparable to non-GAAP financial measures used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures. Reconciliations of the Company’s non-GAAP financial measures to the nearest comparable GAAP measures are set forth in the section below titled “Unaudited Reconciliation of Non-GAAP to GAAP Results.”

About Weibo

Weibo is a leading social media for people to create, share and discover content online. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction, content aggregation and content distribution. Any user can create and post a feed and attach multi-media and long-form content. User relationships on Weibo may be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple, asymmetric and distributed nature of Weibo allows an original feed to become a live viral conversation stream.

Weibo enables its advertising and marketing customers to promote their brands, products and services to users. Weibo offers a wide range of advertising and marketing solutions to companies of all sizes. Weibo generates a substantial majority of its revenues from the sale of advertising and marketing services, including the sale of social display advertisement and promoted marketing offerings. Weibo displays content in a simple information feed format and offers native advertisement that conform to the information feed on our platform. We are continuously refining our social interest graph recommendation engine, which enables our customers to perform people marketing and target audiences based on user demographics, social relationships, interests and behaviors, to achieve greater relevance, engagement and marketing effectiveness.

Safe Harbor Statement

This press release 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 “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “confidence,” “estimates” and similar statements. Among other things, Weibo’s expected financial performance and strategic and operational plans, as described, without limitation, in quotations from management in this press release, contain forward-looking statements. Weibo may also make written or oral forward-looking statements in the Company’s periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), 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 statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Weibo’s limited operating history in certain new businesses; failure to sustain or grow active user base and the level of user engagement; the uncertain regulatory landscape in China; fluctuations in the Company’s quarterly operating results; the Company’s reliance on advertising and marketing sales for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products; failure to compete effectively for advertising and marketing spending; failure to successfully integrate acquired businesses; risks associated with the Company’s investments, including equity pick-up and impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economic environment, including the depreciation of the Renminbi; and adverse changes in economic and political policies of the PRC government and its impact on the Chinese economy. Further information regarding these and other risks is included in Weibo’s annual reports on Form 20-F and other filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is current as of the date hereof, and Weibo assumes no obligation to update such information, except as required under applicable law.

Contact:
Investor Relations
Weibo Corporation
Phone: +86 10 5898-3336
Email: ir@staff.weibo.com

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except per share data)

Three months ended

Six months ended

June 30,

March 31,

June 30,

2023

2024

2023

2024

Net revenues:

Advertising and marketing

$ 385,674

$ 338,951

$ 375,277

$ 740,974

$ 714,228

Value-added services

54,566

56,546

62,596

113,044

119,142

Net revenues

440,240

395,497

437,873

854,018

833,370

Costs and expenses:

Cost of revenues (1)

94,272

86,821

89,790

180,125

176,611

Sales and marketing (1)

105,425

103,627

114,232

211,919

217,859

Product development (1)

92,945

80,726

71,689

183,621

152,415

General and administrative (1)

24,145

24,586

26,777

58,410

51,363

Total costs and expenses

316,787

295,760

302,488

634,075

598,248

Income from operations

123,453

99,737

135,385

219,943

235,122

Non-operating income (loss):

Investment related income (loss), net

(25,190)

(4,970)

245

1,965

(4,725)

Interest and other income (loss), net

11,357

(18,611)

11,182

14,039

(7,429)

(13,833)

(23,581)

11,427

16,004

(12,154)

Income before income tax expenses

109,620

76,156

146,812

235,947

222,968

Less: Income tax expenses

25,450

25,044

33,275

47,302

58,319

Net income

84,170

51,112

113,537

188,645

164,649

Less: Net income attributable to non-controlling interests

257

548

471

813

1,019

Accretion to redeemable non-controlling interests

2,526

1,126

1,135

5,953

2,261

Net income attributable to Weibo’s shareholders

$ 81,387

$ 49,438

$ 111,931

$ 181,879

$ 161,369

Basic net income per share attributable to Weibo’s shareholders

$ 0.35

$ 0.21

$ 0.47

$ 0.77

$ 0.68

Diluted net income per share attributable to Weibo’s shareholders

$ 0.34

$ 0.19

$ 0.43

$ 0.77

$ 0.63

Shares used in computing basic net income per share attributable

to Weibo’s shareholders

235,361

236,694

237,124

235,035

236,909

Shares used in computing diluted net income per share attributable

to Weibo’s shareholders

237,886

263,644

265,086

237,393

264,365

(1) Stock-based compensation in each category:

Cost of revenues

$ 2,238

$ 1,773

$ 1,527

$ 4,774

$ 3,300

Sales and marketing

4,113

3,823

3,211

8,726

7,034

Product development

13,256

10,438

8,293

27,056

18,731

General and administrative

6,460

4,978

4,176

13,136

9,154

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

As of

December 31,

June 30,

2023

2024

Assets

Current assets:

Cash and cash equivalents

$ 2,584,635

$ 1,922,371

Short-term investments

641,035

915,637

Accounts receivable, net

440,768

371,291

Prepaid expenses and other current assets

359,881

348,135

Amount due from SINA(1)

486,397

466,915

Current assets subtotal

4,512,716

4,024,349

Property and equipment, net

220,663

212,451

Goodwill and intangible assets, net

300,565

283,646

Long-term investments

1,320,386

1,281,402

Other non-current assets

926,028

1,300,437

Total assets

$ 7,280,358

$ 7,102,285

Liabilities, Redeemable Non-controlling Interests and Shareholders’ Equity

Liabilities:

Current liabilities:

Accounts payable

$ 161,493

$ 150,456

Accrued expenses and other current liabilities

666,833

625,542

Income tax payable

94,507

54,688

Deferred revenues

75,187

88,596

Unsecured senior notes

799,325

799,993

Current liabilities subtotal

1,797,345

1,719,275

Long-term liabilities:

Convertible senior notes

317,625

319,232

Unsecured senior notes

743,695

744,179

Long-term loans

791,647

793,479

Other long-term liabilities

112,430

112,553

Total liabilities

3,762,742

3,688,718

Redeemable non-controlling interests

68,728

38,217

Shareholders’ equity :

Weibo shareholders’ equity

3,398,735

3,325,636

Non-controlling interests

50,153

49,714

Total shareholders’ equity

3,448,888

3,375,350

Total liabilities, redeemable non-controlling interests and
shareholders’ equity

$ 7,280,358

$ 7,102,285

(1) Included short-term loans to and interest receivable from SINA of
US$445.2 million as of December 31, 2023 and US$430.1 million as of June 30, 2024.

WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands of U.S. dollars, except per share data)

Three months ended

Six months ended

June 30,

March 31,

June 30,

2023

2024

2023

2024

Income from operations

123,453

99,737

135,385

219,943

235,122

Add:

Stock-based compensation

26,067

21,012

17,207

53,692

38,219

Amortization of intangible assets resulting from business acquisitions

4,271

5,059

5,011

8,710

10,070

Non-GAAP income from operations

153,791

125,808

157,603

282,345

283,411

Net income attributable to Weibo’s shareholders

81,387

49,438

111,931

181,879

161,369

Add:

Stock-based compensation

26,067

21,012

17,207

53,692

38,219

Amortization of intangible assets resulting from business
acquisitions

4,271

5,059

5,011

8,710

10,070

Investment related gain/loss, net (1)

25,190

4,970

(245)

(1,965)

4,725

Non-GAAP to GAAP reconciling items on the share of equity
method investments

(11,262)

25,358

(8,412)

(7,079)

16,946

Non-GAAP to GAAP reconciling items for the income/loss
attributable to non-controlling interests

(156)

(436)

(435)

(313)

(871)

Tax effects on non-GAAP adjustments (2)

(727)

(1,103)

(1,082)

(531)

(2,185)

Amortization of issuance cost of convertible senior notes, unsecured
senior notes and long-term loans

1,606

2,314

2,277

3,212

4,591

Non-GAAP net income attributable to Weibo’s shareholders

126,376

106,612

126,252

237,605

232,864

Non-GAAP diluted net income per share attributable to Weibo’s
shareholders

0.53

0.41

0.48

1.00

0.89

Shares used in computing GAAP diluted net income per share attributable
to Weibo’s shareholders

237,886

263,644

265,086

237,393

264,365

Shares used in computing non-GAAP diluted net income per share
attributable to Weibo’s shareholders

237,886

263,644

265,086

237,393

264,365

Adjusted EBITDA:

Net income attributable to Weibo’s shareholders

81,387

49,438

111,931

181,879

161,369

Non-GAAP adjustments

44,989

57,174

14,321

55,726

71,495

Non-GAAP net income attributable to Weibo’s shareholders

126,376

106,612

126,252

237,605

232,864

Interest (income) expense, net

1,366

(9,151)

(9,410)

(8,377)

(18,561)

Income tax expenses

26,177

26,147

34,357

47,834

60,504

Depreciation expenses

9,962

9,417

9,169

20,563

18,586

Adjusted EBITDA

163,881

133,025

160,368

297,625

293,393

Net revenues

440,240

395,497

437,873

854,018

833,370

Non-GAAP operating margin

35 %

32 %

36 %

33 %

34 %

(1)

To adjust impairment and provision on investments, gain/loss on sale of investments and fair value change of investments.

(2)

To adjust the income tax effects of non-GAAP adjustments, which primarily related to amortization of intangible assets resulting from business acquisitions and fair value
change of investments. Other non-GAAP adjustment items have no tax effect, because (i) they were recorded in entities established in tax free jurisdictions, or (ii) full
valuation allowances were provided for related deferred tax assets as it is more-likely-than-not they will not be realized.

Net income attributable to Weibo’s shareholders is adjusted for interest expense of convertible senior notes for calculating diluted EPS.

WEIBO CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(In thousands of U.S. dollars)

Three months ended

Six months ended

June 30,

March 31,

June 30,

2023

2024

2023

2024

Net revenues

Advertising and marketing

Non-Ali advertisers

$ 358,894

$ 316,400

$ 342,868

$ 695,925

$ 659,268

Alibaba – as an advertiser

26,780

22,551

32,409

45,049

54,960

Subtotal

385,674

338,951

375,277

740,974

714,228

Value-added services

54,566

56,546

62,596

113,044

119,142

$ 440,240

$ 395,497

$ 437,873

$ 854,018

$ 833,370

View original content:https://www.prnewswire.com/news-releases/weibo-announces-second-quarter-2024-unaudited-financial-results-302228379.html

SOURCE Weibo Corporation

Technology

RLX Technology Announces Unaudited Third Quarter 2024 Financial Results

Published

6 minutes ago

November 15, 2024

SHENZHEN, China, Nov. 15, 2024 /PRNEWSWIRE/ – 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 third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

Net revenues were RMB756.3 million (US$107.8 million) in the third quarter of 2024, compared with RMB498.9 million in the same period of 2023.Gross margin was 27.2% in the third quarter of 2024, compared with 24.1% in the same period of 2023.U.S. GAAP net income was RMB169.4 million (US$24.1 million) in the third quarter of 2024, compared with RMB176.6 million in the same period of 2023.Non-GAAP net income[1] was RMB261.9 million (US$37.3 million) in the third quarter of 2024, compared with RMB201.4 million in the same period of 2023.

“We delivered another strong performance in the third quarter of 2024, showcasing our ability to consistently excel in diverse markets despite rapidly evolving trends and regulations,” commented Ms. Ying (Kate) Wang, Co-founder, Chairperson of the Board of Directors, and Chief Executive Officer of RLX Technology. “Our efficient, adaptable localization strategies have empowered us to establish market leadership in multiple countries by cultivating strong product-market alignment and building solid relationships with local distributors and retailers. Furthermore, our broad offering of premium, reliable cartridge-based products and growing selection of disposables and open-system products have earned the loyalty of adult smokers worldwide. As a trusted e-vapor brand for adult smokers, we remain committed to creating innovative, high-quality products in line with shifting trends and regulations, meeting users’ needs while driving RLX’s long-term growth.”

Mr. Chao Lu, Chief Financial Officer of RLX Technology, added, “Our robust third quarter results were led by a 51.6% year-over-year increase in net revenues to RMB756.3 million, underscoring the success of our internationalization efforts. Our gross margin also improved year over year, expanding 3.1 percentage points to 27.2%, thanks to a favorable shift in our revenue mix and our effective cost optimization initiatives. Notably, we maintained stable non-GAAP operating expenses while rapidly growing revenue, highlighting our operational leverage. We are also excited to continue returning value to our shareholders with our second cash dividend since our IPO while also executing our share repurchase program. Going forward, we will remain dedicated to pursuing development opportunities that deliver sustainable, growing profits and enhance returns for our shareholders.”

Third Quarter 2024 Financial Results

Net revenues were RMB756.3 million (US$107.8 million) in the third quarter of 2024, compared with RMB498.9 million in the same period of 2023. The increase was primarily due to our international expansion.

Gross profit was RMB206.0 million (US$29.4 million) in the third quarter of 2024, compared with RMB120.0 million in the same period of 2023.

Gross margin was 27.2% in the third quarter of 2024, compared with 24.1% in the same period of 2023. The increase was primarily due to a favorable change in the revenue mix and the cost optimization efforts.

Operating expenses were RMB216.6 million (US$30.9 million) in the third quarter of 2024, compared with RMB154.4 million in the same period of 2023. The increase was primarily due to the fluctuation of share-based compensation expenses, from RMB24.8 million in the third quarter of 2023 to RMB92.5 million (US$13.2 million) in the third quarter of 2024. 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 RMB69.0 million (US$9.8 million) in the third quarter of 2024, compared with RMB44.8 million in the same period of 2023, primarily due to an increase in share-based compensation expenses and branding expenses.

General and administrative expenses were RMB123.2 million (US$17.6 million) in the third quarter of 2024, compared with RMB78.8 million in the same period of 2023, primarily due to an increase in share-based compensation expenses.

Research and development expenses were RMB24.4 million (US$3.5 million) in the third quarter of 2024, compared with RMB30.8 million in the same period of 2023, primarily due to a decrease in salaries, welfare benefits and depreciation and amortization expenses, slightly offset by an increase in share-based compensation expenses.

Loss from operations was RMB10.7 million (US$1.5 million) in the third quarter of 2024, compared with RMB34.3 million in the same period of 2023.

Income tax expense was RMB30.4 million (US$4.3 million) in the third quarter of 2024, compared with RMB1.7 million in the same period of 2023.

U.S. GAAP net income was RMB169.4 million (US$24.1 million) in the third quarter of 2024, compared with RMB176.6 million in the same period of 2023.

Non-GAAP net income was RMB261.9 million (US$37.3 million) in the third quarter of 2024, compared with RMB201.4 million in the same period of 2023.

U.S. GAAP basic and diluted net income per American depositary share (“ADS”) were RMB0.135 (US$0.019) and RMB0.129 (US$0.018), respectively, in the third quarter of 2024, compared with U.S. GAAP basic and diluted net income per ADS of RMB0.133 and RMB0.130, respectively, in the same period of 2023.

Non-GAAP basic and diluted net income per ADS[2] were RMB0.211 (US$0.030) and RMB0.200 (US$0.029), respectively, in the third quarter of 2024, compared with non-GAAP basic and diluted net income per ADS of RMB0.152 and RMB0.149, respectively, in the same period of 2023.

Balance Sheet and Cash Flow

As of September 30, 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 RMB15,361.7 million (US$2,189.0 million), compared with RMB14,930.8 million as of June 30, 2024. In the third quarter of 2024, net cash generated from operating activities was RMB156.6 million (US$22.3 million).

Dividend Payment

The Company announced that its Board of Directors approved a cash dividend of US$0.01 per ordinary share, or US$0.01 per ADS, to holders of ordinary shares and holders of ADSs, respectively, as of the close of business on December 6, 2024 Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The payment date is expected to be on or around December 13, 2024 and on or around December 20, 2024 for holders of ordinary shares and holders of ADSs, respectively.

Conference Call

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on November 15, 2024 (8:00 PM Beijing/Hong Kong Time on November 15, 2024).

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:

6222824

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 November 22, 2024, by dialing the following telephone numbers:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:

7489030

[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.

[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.

About RLX 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 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 RMB7.0176 to US$1.00, the exchange rate on September 30, 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 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

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands)

As of

December 31,

September 30,

2023

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

2,390,298

3,255,500

463,905

Restricted cash

29,760

58,265

8,303

Short-term bank deposits, net

2,631,256

2,602,887

370,908

Receivables from online payment platforms

6,893

5,357

763

Short-term investments

3,093,133

2,199,658

313,449

Accounts and notes receivable, net

60,482

121,939

17,376

Inventories

144,850

81,432

11,604

Amounts due from related parties

118,736

248,762

35,448

Prepayments and other current assets, net

508,435

299,409

42,666

Total current assets

8,983,843

8,873,209

1,264,422

Non-current assets:

Property, equipment and leasehold improvement, net

77,358

56,998

8,122

Intangible assets, net

69,778

59,156

8,430

Long-term investments, net

8,000

1,140

Deferred tax assets, net

58,263

58,262

8,302

Right-of-use assets, net

52,562

31,304

4,461

Long-term bank deposits, net

1,757,804

1,022,279

145,674

Long-term investment securities, net

5,236,109

6,223,159

886,791

Goodwill

66,506

64,528

9,195

Other non-current assets, net

4,874

5,632

803

Total non-current assets

7,331,254

7,529,318

1,072,918

Total assets

16,315,097

16,402,527

2,337,340

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts and notes payable

266,426

352,403

50,217

Contract liabilities

49,586

24,508

3,492

Salary and welfare benefits payable

39,256

75,047

10,694

Taxes payable

77,164

127,526

18,172

Accrued expenses and other current liabilities

103,996

107,771

15,357

Amounts due to related parties

101,927

10,380

1,479

Dividend payable

881

–

Lease liabilities – current portion

29,435

16,710

2,381

Total current liabilities

668,671

714,345

101,792

Non-current liabilities:

Deferred tax liabilities

23,591

21,757

3,100

Lease liabilities – non-current portion

24,419

7,136

1,017

Total non-current liabilities

48,010

28,893

4,117

Total liabilities

716,681

743,238

105,909

Shareholders’ Equity:

Total RLX Technology Inc. shareholders’ equity

15,609,393

15,662,993

2,231,959

Noncontrolling interests

(10,977)

(3,704)

(528)

Total shareholders’ equity

15,598,416

15,659,289

2,231,431

Total liabilities and shareholders’ equity

16,315,097

16,402,527

2,337,340

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(All amounts in thousands, except for share and per share data)

For the three months ended

For the nine months ended

September 30,

June 30,

September 30,

2023

(As adjusted) (a)

2024

2023

(As adjusted) (a)

2024

RMB

US$

RMB

US$

Net revenues

498,929

627,176

756,288

107,770

1,065,929

1,935,087

275,748

Cost of revenues

(278,578)

(400,712)

(473,379)

(67,456)

(529,004)

(1,201,701)

(171,241)

Excise tax on products

(100,313)

(68,602)

(76,933)

(10,963)

(272,624)

(226,775)

(32,315)

Gross profit

120,038

157,862

205,976

29,351

264,301

506,611

72,192

Operating expenses:

Selling expenses

(44,751)

(62,235)

(68,975)

(9,829)

(175,738)

(184,097)

(26,234)

General and administrative expenses

(78,849)

(128,997)

(123,226)

(17,560)

(293,985)

(362,177)

(51,610)

Research and development expenses

(30,783)

(24,435)

(3,482)

(150,782)

(55,935)

(7,971)

Total operating expenses

(154,383)

(191,192)

(216,636)

(30,871)

(620,505)

(602,209)

(85,815)

Loss from operations

(34,345)

(33,330)

(10,660)

(1,520)

(356,204)

(95,598)

(13,623)

Other income：

Interest income, net

158,260

154,207

156,659

22,324

469,951

469,724

66,935

Investment income

21,028

12,718

13,070

1,862

63,001

38,564

5,495

Others, net

33,412

22,739

40,745

5,806

183,949

92,427

13,171

Income before income tax

178,355

156,334

199,814

28,472

360,697

505,117

71,978

Income tax expense

(1,746)

(21,389)

(30,423)

(4,335)

(35,677)

(68,156)

(9,712)

Net income

176,609

134,945

169,391

24,137

325,020

436,961

62,266

Less: net income attributable to noncontrolling interests

1,579

2,631

3,737

532

4,169

7,085

1,010

Net income attributable to RLX Technology Inc.

175,030

132,314

165,654

23,605

320,851

429,876

61,256

Other comprehensive (loss)/income:

Foreign currency translation adjustments

(83,978)

44,174

(181,148)

(25,813)

331,004

(124,268)

(17,708)

Unrealized income on long-term investment securities

3,508

705

5,292

754

11,920

5,984

853

Total other comprehensive (loss)/income

(80,470)

44,879

(175,856)

(25,059)

342,924

(118,284)

(16,855)

Total comprehensive income/(loss)

96,139

179,824

(6,465)

(922)

667,944

318,677

45,411

Less: total comprehensive income attributable to noncontrolling
interests

1,579

2,618

3,730

531

4,169

7,078

1,010

Total comprehensive income/(loss) attributable to RLX
Technology Inc.

94,560

177,206

(10,195)

(1,453)

663,775

311,599

44,401

Net income per ordinary share/ADS

Basic

0.133

0.108

0.135

0.019

0.244

0.348

0.050

Diluted

0.130

0.103

0.129

0.018

0.239

0.333

0.047

Weighted average number of ordinary shares/ADSs

Basic

1,316,452,743

1,228,869,526

1,225,417,517

1,317,292,081

1,234,501,619

Diluted

1,344,359,144

1,284,388,803

1,287,927,444

1,344,018,578

1,289,831,349

Note (a): The Company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction in accordance with ASC 805-50. The Company retrospectively adjusted the above comparative unaudited condensed consolidated statements of comprehensive income/(loss) in the prior quarter and prior nine months period.

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 nine months ended

September 30,

June 30,

September 30,

2023

(As adjusted) (b)

2024

2023

(As adjusted) (b)

2024

RMB

US$

RMB

US$

Net income

176,609

134,945

169,391

24,137

325,020

436,961

62,266

Add: share-based compensation expenses

Selling expenses

(4,045)

9,172

5,768

822

4,571

19,543

2,785

General and administrative expenses

29,771

93,026

85,295

12,154

140,190

244,735

34,874

Research and development expenses

(936)

(24,074)

1,446

206

1,490

(18,747)

(2,671)

Non-GAAP net income

201,399

213,069

261,900

37,319

471,271

682,492

97,254

Net income attributable to RLX Technology Inc.

175,030

132,314

165,654

23,605

320,851

429,876

61,256

Add: share-based compensation expenses

24,790

78,124

92,509

13,182

146,251

245,531

34,988

Non-GAAP net income attributable to RLX Technology Inc.

199,820

210,438

258,163

36,787

467,102

675,407

96,244

Non-GAAP net income per ordinary share/ADS

– Basic

0.152

0.171

0.211

0.030

0.355

0.547

0.078

– Diluted

0.149

0.164

0.200

0.029

0.348

0.524

0.075

Weighted average number of ordinary shares/ADSs

– Basic

1,316,452,743

1,228,869,526

1,225,417,517

1,317,292,081

1,234,501,619

– Diluted

1,344,359,144

1,284,388,803

1,287,927,444

1,344,018,578

1,289,831,349

Note (b): The Company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction in accordance with ASC 805-50. The Company retrospectively adjusted the above unaudited reconciliation of GAAP and Non-GAAP results in the prior quarter and prior nine months period.

RLX TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands)

For the three months ended

For the nine months ended

September 30,

June 30,

September 30,

2023

(As adjusted) (c)

2024

2023

(As adjusted) (c)

2024

RMB

US$

RMB

US$

Net cash generated from/(used in) operating
activities

82,853

196,764

156,554

22,309

(106,494)

357,338

50,920

Net cash generated from investing activities

967,234

557,132

139,120

19,824

1,780,871

1,116,917

159,159

Net cash used in financing activities

(206,577)

–

(74,780)

(10,656)

(401,311)

(547,665)

(78,042)

Effect of foreign exchange rate changes on cash,
cash equivalents and restricted cash

(5,918)

10,032

(45,818)

(6,529)

52,884

(32,883)

(4,685)

Net increase in cash and cash equivalents and
restricted cash

837,592

763,928

175,076

24,948

1,325,950

893,707

127,352

Cash, cash equivalents and restricted cash at
the beginning of the period

1,777,444

2,374,761

3,138,689

447,260

1,289,086

2,420,058

344,856

Cash, cash equivalents and restricted cash at
the end of the period

2,615,036

3,138,689

3,313,765

472,208

2,615,036

3,313,765

472,208

Note (c): The Company acquired various companies on December 13, 2023, which was accounted for as an under common control transaction in accordance with ASC 805-50. The Company retrospectively adjusted the above comparative unaudited condensed consolidated statements of cash flows in the prior quarter and prior nine months period.

View original content:https://www.prnewswire.com/news-releases/rlx-technology-announces-unaudited-third-quarter-2024-financial-results-302305299.html

SOURCE RLX Technology Inc.

Technology

ACKO Drive Launches Seamless End-to-End Digital Car Buying Experience with Financing Options

Published

6 minutes ago

November 15, 2024

NEW DELHI, Nov. 15, 2024 /PRNewswire/ — ACKO Drive is changing how people buy cars in India by introducing a fully digital, end-to-end car buying experience. This latest development by ACKO Drive allows customers to finance and purchase their next vehicle online without needing to step into a dealership.

The new digital platform, ACKO Drive, caters to modern buyers seeking convenience, speed, and security. As online shopping becomes increasingly popular across sectors, ACKO Drive brings the same simplicity to the automotive industry, making the car-buying journey effortless and transparent for today’s consumers.

An Online Platform Tailored for Hassle-Free Car Shopping

ACKO Drive offers customers a one-stop shop to browse a wide selection of cars like Maruti Suzuki Baleno, access detailed specifications, and even get expert guidance on the right choice. The platform’s user-friendly interface allows buyers to make well-informed decisions from the comfort of their homes. No longer are buyers tied to traditional dealership visits; ACKO Drive’s virtual experience simplifies the car-buying process, providing instant access to essential information and support at every step.

According to Nitin Chadha (Senior Vice President – ACKO Drive), the platform addresses pain points faced by car buyers in India, including cumbersome financing options. “Our mission with ACKO Drive is to make the car-buying process as seamless as possible. We understand the value of time for today’s customers, and our platform ensures that they don’t have to compromise on convenience or quality,” Nitin Chadha said.

Simplified Financing Options with Transparent Terms

One of the standout features of ACKO Drive is its integrated financing options, allowing buyers to apply for a loan and receive approval without the lengthy paperwork or extended wait times often associated with car loans. Through partnerships with some of India’s leading banks and financial institutions, ACKO Drive offers a variety of financing solutions tailored to different budget levels and preferences. Customers can access competitive interest rates, flexible repayment terms, and, in some cases, pre-approved loan offers based on their profiles.

The process is designed to be quick and stress-free, with online loan applications enabling potential buyers to check their eligibility and secure financing within minutes. First-time buyers who may feel overwhelmed by the financial aspects of purchasing a car can also benefit from ACKO Drive’s personalised financing recommendations. These recommendations help streamline the car-buying journey and provide customers with clear, transparent choices that best suit their needs.

Setting a New Standard in Digital Car Buying

ACKO Drive sets a new standard for car purchases in India, bridging the gap between traditional dealership experiences and the modern buyer’s preference for digital solutions. The platform’s fully online setup, with financing and expert assistance at every turn, has redefined car buying, making it accessible and efficient.

In addition to its core services, ACKO Drive’s platform includes valuable add-ons like test drives, vehicle trade-ins, and expert automotive advice, ensuring the buying experience remains complete and user-centric. This holistic approach aims to meet the varied needs of car buyers, from browsing to financing to post-purchase support.

About ACKO Drive

ACKO Drive is a digital platform dedicated to transforming the car-buying experience in India. Committed to transparency, convenience, and customer satisfaction, ACKO Drive offers a comprehensive range of vehicles, fast delivery services, and after-sales support. The platform’s unique features, such as transparent pricing and a wide selection of cars, make it the ideal choice for anyone purchasing their next vehicle.

For more information, please visit ACKO Drive’s official website – https://ackodrive.com/

View original content:https://www.prnewswire.com/in/news-releases/acko-drive-launches-seamless-end-to-end-digital-car-buying-experience-with-financing-options-302306922.html

Technology

HKUST Welcomes Four Nobel Laureates at the Molecular Frontiers Symposium

Published

6 minutes ago

November 15, 2024

Sparking Passion for Science and Innovation Among Young Minds

HONG KONG, Nov. 15, 2024 /PRNewswire/ — The Hong Kong University of Science and Technology (HKUST) is excited to kick off a prestigious three-day “Molecular Frontiers Symposium” at Shaw Auditorium on campus today. The high-level event showcases a lineup of internationally renowned scientists including four Nobel laureates, serving as a dynamic thought-leadership platform for exchanging ideas among brilliant and young minds.

Around 40 leading molecular scientists, including Nobel laureates Prof. Stefan HELL, Sir Tim HUNT, Prof. K. Barry SHARPLESS, and Sir Gregory WINTER, will share their knowledge and insights spanning the latest development in genome editing, fluorescence microscopy and protein engineering in this inaugural symposium in Greater China entitled “Frontiers of New Knowledge in Science”.

Over 1,500 participants have signed up for the Symposium. Hundreds of students from Hong Kong and other cities in the Greater Bay Area (GBA) as well as scholars and industrial representatives from the biotech and biomed fields, seized this invaluable opportunity to engage with top global scientists. In a vibrant exchange during the forum, students actively posed questions to the prestigious speakers about the challenges and rewards they have encountered throughout their career, while the scholars shared heartfelt advice and valuable insights for those considering a path in science and innovation.

Prof. Bengt NORDEN, Founding Chairman of the event’s organizer Molecular Frontiers Foundation, said, “The Molecular Frontiers Symposium is designed to inspire the next generation’s passion for science, promote innovative research in molecular science, and foster meaningful interactions between leading scientists and the general public. We are thrilled to host this prestigious event in Hong Kong for the first time—a vibrant international hub for education that is home to five universities ranked among the world’s top 100. By bringing together distinguished scholars at HKUST – a university committed to innovation and research, we look forward to stimulating fruitful discussions and fostering cross-regional collaborations that can help shape the future of molecular science.”

Prof. Nancy IP, HKUST President and world-renowned neuroscientist, said that HKUST is deeply grateful for the opportunity to co-host the prestigious event. “Given Hong Kong’s status as an international hub for higher education and knowledge sharing, hosting this Symposium represents a significant milestone for both HKUST and the local science community. It is also heartening to see the remarkable interest and enthusiasm from high school and university students in Hong Kong and the GBA. Our youth are the innovators and leaders of tomorrow; by nurturing their curiosity and providing them with the right tools and opportunities, we can empower them to unlock their full potential. I hope this symposium ignites their imagination and deepens their interest in science and technology, inspiring them to pursue further studies in these fields. Over the next three days, we anticipate a wealth of stimulating dialogues, enlightening presentations, and unparalleled networking opportunities.”

Today, Sir Winter of the University of Cambridge and a 2018 Nobel laureate in Chemistry, gave a speech on “The Thrill of Antibodies and Their Applications”, while Prof. Hell of the Max Planck Institute and a 2014 Nobel laureate in Chemistry, gave a lecture on “Molecular Resolution and Dynamics in Fluorescence Microscopy”.

Tomorrow, Sir Hunt of the Royal Society and a 2001 Nobel laureate in Physiology or Medicine, will speak on the topic “Lessons from a Life in Science”, while Prof. Sharpless, of the Scripps Research Institute and a 2001 Nobel laureate in Chemistry, will speak on “The Click Chemistry”. Prof. Sharpless is also an honorary Doctor of Science of HKUST.

Other speakers include top scientists from renowned universities and research institutions worldwide such as the Brown University, the Chinese Academy of Sciences, KTH Royal Institute of Technology, Massachusetts Institute of Technology, the Royal Swedish Academy of Sciences, the Scripps Research Institute, and the University of Cambridge.

Traditionally held in Europe, North America, and certain Asian countries including Japan, Singapore, and South Korea, the symposium is organized by the Molecular Frontiers Foundation – established by the Royal Swedish Academy of Sciences – and sponsored by Ausvic Capital. Recognized as one of the most influential scientific organizations in the world, the Foundation plays a pivotal role in advancing scientific dialogues and collaboration.

Download photos here: https://geco.ust.hk/download/press_release/1115%20Molecular/

View original content:https://www.prnewswire.com/apac/news-releases/hkust-welcomes-four-nobel-laureates-at-the-molecular-frontiers-symposium-302306934.html

SOURCE Hong Kong University of Science and Technology