智通财经APP获悉，大和发布研究报告称，重申思摩尔国际(06969)“跑赢大市”评级，认为最坏情况已过去。将今明两年盈利预测上调1%至2%，以反映较高的收入增长预测，目标价由6港元上调至8港元。 管理层表示，经过两年收入倒退后，预期今年收入有双位数增长，至于盈利增幅则较慢，主要因为新产品的研发投资持续，并估计产品及收入组合将更多元化。此外还指出，美国及中国市场的收入增长前景，仍然很大程度取决于监管规则，该行估计两个市场在去年的低基数下，今年将一步复苏。 ...

Investment Rating - The investment rating for the company is "Buy" [2][6]. Core Views - The company's Q4 performance met expectations, and a recovery is anticipated in 2024 due to market environment changes and product structure adjustments [6]. - The forecast for net profit attributable to the parent company for 2024-2026 has been revised down to 1.94 billion, 2.28 billion, and 2.61 billion RMB respectively, with the latest closing price corresponding to PE ratios of 19, 16, and 14 times [6]. - The manufacturing business is steadily recovering, and the proprietary brand APV products continue to show high growth [6]. Summary by Sections Financial Performance - In 2023, the company's revenue was 11.177 billion RMB, down 8% year-on-year, with a projected revenue of 13.2407 billion RMB for 2024, representing an 18% increase [7]. - The net profit for 2023 was 1.645 billion RMB, a decrease of 34% year-on-year, with an expected recovery to 1.942 billion RMB in 2024, an 18% increase [7]. - The gross profit margin and management expense ratio improved, with a net profit margin of 15.3% in H2 2023, up 1.3 percentage points from the previous period [6]. Market Dynamics - The U.S. revenue for H2 2023 was 2.02 billion RMB, down 6.3% year-on-year, while the European revenue was 2.72 billion RMB, also down 6.3% year-on-year but up 15.8% quarter-on-quarter [6]. - Domestic sales revenue in H2 2023 was 0.1 billion RMB, down 81.6% year-on-year but up 62.5% quarter-on-quarter, indicating a recovery as non-compliant products impact diminishes [6]. - The company is expected to benefit from market improvements due to regulatory actions against non-compliant products in both domestic and international markets [6].

业绩简评 3月 18 日，公司发布2023 年业绩公告，2023 年收入/净利润分别 同比-8.0%/-34.5%至 111.7/16.5 亿元，H2 收入/净利润分别同比 -6.9%/-17.6%，整体业绩基本符合预期。 经营分析 中国市场承压，一次性烟+APV推动欧美市场延续增长：分业务来 看，公司 ODM/APV 收入分别同比-12.7%/+26.0%至 93.2/18.5 亿 元。ODM 业务方面，1）中国市场全年收入同比-92.7%至 1.6 亿元 （已剔除出口转运影响），H1/H2 收入分别同比-96.3%/-81.7%，由 于非法产品扰动H2 环比恢复幅度有限；2）美国市场、欧洲及其他 市场全年收入分别同比+8.2%/8.9%至 40.8/50.7 亿元，其中一次 性烟全年收入同比+74.5%至 33.7 亿元，是欧洲市场增长重要驱动 力。美国、欧洲及其他市场H2 收入分别同比-6.3%/-5.4%，预计主 因换弹式产品销售相对承压。APV 业务方面，美国、欧洲及其他市 主 要财务指标 场全年收入分别同比+8.8%/+31.3%至 3.7/14.8 亿元，H2 收入分别 项目 2022A 202 ...

思摩尔国际（6969.HK）2023年年报点评 海外收入稳健增长，自有品牌持续发力 2024年03月20日 [T able_Author] 分析师：徐皓亮 执业证号：S0100522110001 邮箱：xuhaoliang@mszq.com ➢ 事件。思摩尔国际发布2023年度业绩公告，2023年全年实现收入/净利润 推荐 维持评级 111.68/15.66亿元(-8.04%/-37.21%)，23Q4实现收入/净利润31.66 /3.72亿 当前价格： 7.02港元 元(-3.52%/-8.43%)。 ➢ 本地化运营叠加监管加强执法力度，美国地区实现收入增长。全年收入 11 相关研究 1.68 亿元（-8.04%)，全球市占率下降至 12.41% (-5.7pcts)，下半年公司收入 1.思摩尔国际（6969.HK）2023 年三季报点 60.46 亿元，同比-6.87%。分客户：全年企业客户/零售客户收入同比变动-12. 评：收入&利润环比改善，利空逐步落地静待 7%/+26.0%至93.21/18.47亿元，收入占比83.5%/16.5%。分区域：2023年 业绩拐点-2023/10/17 海外/国内销 ...

证券研究报告 | 年报点评报告 2024年03月19日 思摩尔国际（06969.HK） APV 表现靓丽，多元产品矩阵逐步成型 公司发布2023年财务数据：2023全年实现收入111.68亿元（同比-8.0%），归母 买入（维持） 净利润为15.66亿元（同比-37.2%）；单Q4实现收入31.66亿元（同比-3.5%）， 归母净利润为3.72亿元（同比-11.0%）。收入表现平稳，表观盈利能力下滑主要系 股票信息 一次性小烟占比提高，且加大研发投入。 行业 消费电子产品 自主品牌表现靓丽，ODM略承压。分业务来看，2023年APV实现收入18.47亿元 （同比+26.0%），其中欧洲及其他地区/美国分别实现收入 14.75 亿元（同比 前次评级 买入 +31.3%）/3.72亿元（同比+8.8%），表现靓丽主要系公司坚持本土化运营，推出 3月18日收盘价(港元) 6.56 COSS、ARMOUR等差异化产品系列（具备创新性自动注液、自动充电、更长寿命等 总市值(百万港元) 40,263.30 特性）。2023年代工业务实现收入93.21亿元（同比-12.7%），分地区来看： 总股本(百万股) 6,137.7 ...

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was RMB 11,168,422 thousand, a decrease of 8.0% compared to RMB 12,144,980 thousand in 2022[4] - Gross profit for the same period was RMB 4,334,446 thousand, resulting in a gross margin of 38.8%, down from 43.3% in 2022[4] - The company reported a net profit of RMB 1,645,090 thousand, a decline of 34.4% from RMB 2,510,316 thousand in the previous year[4] - The total comprehensive income for the review period was approximately RMB 1,566,470 thousand, down about 37.2% from RMB 2,494,934 thousand in 2022[41] - Basic earnings per share for 2023 were RMB 27.01, down from RMB 41.66 in 2022, reflecting a decrease of 35.4%[85] - The company reported a significant increase in inventory provision costs, which rose to RMB 61,176 thousand in 2023 from RMB 8,791 thousand in 2022[129] Market Performance - The company maintained a market share of approximately 13.7% in the global electronic vaporizer equipment market, down from 18.1% in 2022[11] - Revenue from the mainland China market was approximately RMB 163,008 thousand, a significant decline of about 92.7%, accounting for approximately 1.5% of total revenue[19] - Revenue from overseas markets increased by approximately 11.2% to RMB 11,005,414 thousand, rising to approximately 98.5% of total revenue[16] - In the U.S. market, revenue from enterprise customers reached approximately RMB 4,083,779 thousand, an increase of about 8.2%, representing approximately 36.6% of total revenue[17] - Revenue from Europe and other regions increased by approximately 17.9% to RMB 5,065,271 thousand, representing about 45.4% of total revenue[46] Research and Development - The company continues to focus on research and development in electronic vaporization products, enhancing its R&D management system to improve efficiency[7] - The total R&D expenditure amounted to approximately RMB 1,482,846 thousand, representing an increase of about 8.1% compared to the previous year, with the percentage of revenue rising from approximately 11.3% to about 13.3%[28] - The company has over 1,400 R&D personnel and significantly higher R&D investment compared to peers, ensuring long-term growth and innovation[23] - The company has filed a total of 2,033 new patent applications globally during the review period, including 1,172 invention patents, bringing the cumulative total to 7,695 patents, of which 3,867 are invention patents[28] - The introduction of a digital management system for new product development has significantly improved the efficiency and effectiveness of R&D resource allocation[28] Cost Management - The company has implemented cost reduction strategies, resulting in a significant decrease in administrative expenses during the review period[9] - Distribution and sales expenses increased from approximately RMB 387,671 thousand to about RMB 526,238 thousand, a growth of approximately 35.7%, accounting for about 4.7% of revenue[53] - Administrative expenses decreased from approximately RMB 1,147,916 thousand to about RMB 867,154 thousand, a decline of approximately 24.5%, accounting for about 7.8% of revenue[54] - Total employee costs accounted for approximately 23.0% of the group's revenue in 2023, down from 25.0% in 2022, due to improved operational efficiency[78] Corporate Governance - The board of directors consists of eight members, including three independent non-executive directors, exceeding the one-third requirement set by listing rules[148] - The board has recommended a final dividend of HKD 0.05 per ordinary share for the year ending December 31, 2023, pending approval at the upcoming annual general meeting[158] - The company has adopted a dividend policy that considers its financial condition and other relevant factors before declaring dividends[158] - The audit committee has been established in accordance with the listing rules, consisting of three independent non-executive directors, with Mr. Zhong Shan as the chairman[171] - The board is committed to maintaining high standards of corporate governance and has reviewed the effectiveness of its governance structure[150] Future Outlook - The global electronic vaporization product market is projected to reach approximately $19.86 billion by 2028, with a compound annual growth rate (CAGR) of about 11.5% from 2023 to 2028[32] - The company plans to launch a new oil cartridge-based closed product in the European market in 2024, which has successfully obtained TPD compliance certification[33] - The company aims to enhance production management levels in 2024 to reduce manufacturing costs and improve product competitiveness[38] - The company will continue to invest in R&D across electronic vaporization, heated tobacco, and medical vaporization products to maintain its leading position in these sectors[37] - The company is committed to optimizing supply chains and production processes to shorten order delivery cycles and improve delivery efficiency[38]

Financial Performance - The group's revenue and profit experienced a decline during the first half of 2023 due to a rapidly changing market and external environment[12]. - The company's revenue for the first half of 2023 was RMB 5,122,862 thousand, a decrease of 9.4% compared to RMB 5,653,321 thousand in 2022[27]. - Gross profit for the same period was RMB 1,855,370 thousand, reflecting a decline of 31.4% from RMB 2,705,607 thousand in the previous year[27]. - The pre-tax profit dropped by 52.5% to RMB 796,170 thousand from RMB 1,675,965 thousand in 2022[27]. - The net profit for the period was RMB 717,342 thousand, down 48.2% from RMB 1,384,690 thousand in the prior year[27]. - The adjusted net profit margin decreased to 14.8%, down 10.6 percentage points from 25.4% in 2022[27]. - Total comprehensive income for the period decreased by 46.9% from RMB 1,384,101 thousand to RMB 734,356 thousand[90]. - Basic earnings per share decreased to RMB 11.81 from RMB 23.08, reflecting a drop of 48.9% year-on-year[173]. Market and Product Development - The company launched the upgraded FEELM Max ceramic atomization core technology platform, achieving significant shipment volumes while meeting compliance requirements[14]. - The company is focusing on four strategic areas: electronic atomization products, heat-not-burn products, special-purpose atomization products, and atomization in healthcare[14]. - The company plans to introduce more differentiated disposable innovative products to overseas markets in the second half of 2023, aiming to drive revenue growth[18]. - The company is committed to expanding the application of atomization technology in healthcare, collaborating with leading companies in the respiratory drug field[14]. - The company aims to diversify its revenue across different countries and regions while expanding its product portfolio and applications of aerosol technology in healthcare[40]. - The company plans to launch more innovative products in the special-purpose aerosol market to enhance competitiveness[19]. Research and Development - The company's R&D expenditure totaled RMB 614.724 million, representing a 1.8% increase compared to the same period last year[41]. - Research and development in the aerosol medical field is progressing steadily, with plans to continue development of pharmaceutical projects in the second half of 2023[19]. - The company aims to leverage its R&D capabilities and management improvements to navigate industry changes and deliver greater returns to shareholders[19]. - The R&D spending for electronic nicotine delivery systems (including electronic vapor products and heated non-combustible products) accounted for approximately 68.1% of total R&D expenditure, down from 82.4% year-on-year[47]. - The company has filed a total of 1,154 new patent applications globally during the review period, including 684 invention patents, bringing the cumulative total to 6,816 patents, with 3,379 being invention patents[44]. Regulatory Environment - The introduction of the "E-cigarette Management Measures" in mainland China has led to a prohibition on the sale of flavored e-cigarettes, impacting short-term sales[33]. - The FDA has issued marketing denial orders (MDO) for over 100,000 non-tobacco and non-menthol flavored ENDS products, affecting market dynamics in the US[35]. - The revised Import and Export (Amendment) Ordinance in Hong Kong allows for the transit of alternative smoking products, which may influence market operations[37]. - The company continues to monitor global regulatory developments to ensure compliance and adapt its R&D and production activities accordingly[40]. Operational Efficiency - Management expenses decreased during the review period as part of cost reduction and efficiency improvement initiatives[17]. - The company is optimizing its supply chain management and strengthening local warehousing to improve customer service experience[15]. - The company has adopted agile modular production to meet the rapidly changing market demand for disposable electronic vapor products, significantly improving production efficiency and delivery capabilities[51]. - The company aims to enhance production operations management to improve customer service responsiveness and supply chain management to strengthen cost control capabilities[67]. Market Trends - The company believes that the electronic atomization product market is in a phase of low penetration and steady growth, with opportunities arising from clearer regulatory policies[18]. - In the US market, the market share of disposable e-cigarettes increased from 24.7% in January 2020 to 51.8% in December 2022, according to the CDC[33]. - The global electronic vaporization equipment market is projected to reach approximately USD 23,413.9 million by 2027, with a compound annual growth rate (CAGR) of 18.5% from 2022 to 2027[62]. - The global heated tobacco product market is expected to reach approximately USD 16,600 million by 2027, also with a CAGR of 18.5% during the same period[63]. - The global market for pulmonary drugs and drug delivery devices is estimated to reach approximately USD 56 billion in 2022, with expectations to grow to about USD 93.3 billion by 2030[66]. Shareholder and Corporate Governance - The board of directors consists of eight members, including three independent non-executive directors, ensuring sufficient checks and balances[109]. - The audit committee, led by independent non-executive director Zhong Shan, reviews the group's financial and accounting practices, risk management, and internal controls[112]. - The company has established an internal audit mechanism to independently assess the effectiveness of its risk management and internal control systems[116]. - The company has committed to ongoing professional training for all directors to enhance their knowledge and skills in corporate governance[120]. - The remuneration committee is responsible for recommending overall remuneration policies for directors and senior management, ensuring competitiveness and fairness[113]. Cash Flow and Liquidity - Cash and cash equivalents increased by 29.1% to RMB 12,605,378 thousand from RMB 9,762,933 thousand[31]. - The current ratio improved to 639.3% from 534.9% as of December 31, 2022[91]. - The company reported a significant increase in cash inflow from short-term deposits, with RMB 7,052,638 thousand withdrawn during the six months ended June 30, 2023, compared to RMB 3,048,345 thousand in the previous year[181]. - The company’s financing activities resulted in a net cash outflow of RMB 537,990 thousand for the six months ended June 30, 2023, compared to a net cash inflow of RMB 460,937 thousand in the same period of 2022[181]. Employee Compensation and Stock Options - Employee compensation and benefits rose by 54.7% from RMB 70,117 thousand to RMB 108,439 thousand, representing 2.1% of revenue, up from 1.2%[83]. - The company has a significant number of stock options, with 3,520,000 options granted to non-director employees[140]. - The total number of stock options exercised during the six months ended June 30, 2023, was 2,917,000[140]. - The company continues to manage its stock option plan actively, reflecting its commitment to employee incentives and retention strategies[140].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 Smoore International Holdings Limited 思 摩 爾 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6969） 截至2023年6月30日止 6個月中期業績公告 思摩爾國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其附屬 公司（統稱「本集團」）截至2023年6月30日止6個月（「回顧期」）的未經審核綜合業績。本公司 獨立核數師德勤‧關黃陳方會計師行（執業會計師）已根據香港會計師公會頒佈的香港審閱 委聘準則第2410號「由實體之獨立核數師審閱中期財務資料」審閱本集團截至2023年 6月30日止6個月的未經審核簡明綜合中期財務資料。此外，該等中期業績亦由本公司審核 委員會（「審核委員會」）審閱。 ...

Financial Performance - Smoore reported a revenue of approximately 1.2 billion HKD for the fiscal year 2022, representing a year-over-year increase of 15%[2]. - The company achieved a net profit margin of 25%, with net profit reaching around 300 million HKD, up from 240 million HKD in the previous year[2]. - Total revenue for the year ended December 31, 2022, was RMB 12,144,980 thousand, a decrease of 11.7% compared to RMB 13,755,242 thousand in 2021[5]. - Gross profit for 2022 was RMB 5,259,632 thousand, resulting in a gross margin of 43.3%, down from 53.6% in 2021[5][7]. - Net profit for the year was RMB 2,510,316 thousand, a decline of 52.5% from RMB 5,286,967 thousand in 2021[5]. - Adjusted net profit for 2022 was RMB 2,575,122 thousand, reflecting a decrease of 52.7% compared to RMB 5,442,613 thousand in 2021[5][6]. - The adjusted net profit margin for 2022 was 21.2%, down from 39.6% in 2021[7]. - Total comprehensive income for the year was RMB 2,494,934 thousand, down 52.8% from RMB 5,286,991 thousand in 2021[77]. Market Expansion and Strategy - Smoore plans to expand its market presence in Europe and North America, targeting a 30% increase in market share by 2025[2]. - Future guidance estimates revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion[2]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of 200 million HKD allocated for this purpose[2]. - The company aims to reduce production costs by 5% through operational efficiencies and supply chain optimization[2]. - The company is focusing on expanding its product line in the special-purpose vaporization products sector to increase market share[17]. Research and Development - The company is investing 100 million HKD in R&D for new product development, focusing on innovative vaping technologies[2]. - The company increased R&D investment, achieving significant breakthroughs in core technologies, particularly in heated tobacco products and new heating element technologies[12]. - R&D expenditure totaled RMB 1,372,258 thousand, an increase of 104.6% year-on-year, representing 11.3% of revenue compared to 4.9% the previous year[45]. - The company expanded its R&D team by over 320 personnel, bringing the total to over 1,500, which is more than 40% of the total non-production staff[43]. - The company launched a new generation ceramic core technology platform, FEELM Max, which outperforms competitors in vaporization efficiency and user experience[44]. Regulatory Environment - The company is actively monitoring ongoing legal challenges related to MDOs issued by the FDA, with some being temporarily stayed by federal courts[20]. - The company is preparing for compliance with the new electronic cigarette management regulations that took effect on May 1, 2022[23]. - The company has obtained tobacco monopoly licenses and supported brand clients in submitting electronic vapor product technical reviews compliant with national standards as of March 11, 2022[23]. - The national standard for electronic cigarettes (GB 41700-2022) was officially released on April 8, 2022, and will be implemented starting October 1, 2022[25]. Corporate Governance - The company adhered to the corporate governance code and complied with all provisions, except for a deviation from the code's C.2.1[105]. - The board of directors is composed of a balanced mix of executive and independent non-executive directors, ensuring strong independence and effective judgment[106]. - The company has established an Environmental, Social, and Governance (ESG) committee as of December 28, 2022[114]. - The board has committed to holding at least four regular board meetings annually, approximately once per quarter[114]. Employee and Management - The group has over 14,787 employees in mainland China, 9 in Hong Kong, and 1,577 overseas as of December 31, 2022[87]. - The group established the "Simor Academy" for continuous professional and management training for employees, including a 6-month onboarding program for new graduates[88]. - The company has a strong management team with over 10 years of experience in the electronic vaporization industry, led by the CEO who has been instrumental in the company's strategic direction[194]. Shareholder Engagement and Dividends - The company plans to declare a final dividend of HKD 0.08 per ordinary share for the year ended December 31, 2022[6]. - The annual general meeting is scheduled for May 25, 2023, to approve the proposed dividend and other matters[153]. - The company’s board believes that the share buyback plan reflects confidence in the long-term strategy and growth of the company[155]. Financial Health and Assets - Total assets as of December 31, 2022, amounted to RMB 24,359,317 thousand, an increase from RMB 22,871,306 thousand in 2021[5]. - Current assets reached RMB 19,198,773 thousand, up from RMB 17,985,772 thousand in 2021, with a current ratio of 534.9%[5][7]. - The debt-to-asset ratio for 2022 was 16.3%, slightly up from 15.8% in 2021, indicating stable financial leverage[7]. Sales and Revenue Trends - Revenue from sales to overseas corporate clients increased by approximately 6.5%, while revenue from sales to overseas retail clients rose by 26.2% compared to the previous year[34]. - In the US market, sales revenue from electronic vapor products decreased by 22.7% year-over-year, accounting for 31.1% of total revenue, down from 35.5%[38]. - Revenue from disposable electronic vapor products reached RMB 1,931,028 thousand, a growth of 1,919.2% compared to RMB 95,634 thousand in 2021[41]. - Revenue from retail customer products grew by 26.2% year-over-year, totaling RMB 1,465,608 thousand, with the second half of the year showing a 28.3% increase[42].

Financial Performance - For the year ended December 31, 2022, the total revenue was RMB 12,144,980, a decrease of 11.7% compared to RMB 13,755,242 in 2021[2] - The adjusted net profit for 2022 was RMB 2,575,122, reflecting a decline from RMB 5,442,613 in 2021[3] - The gross profit margin for 2022 was 43.3%, down from 53.6% in 2021[2] - The total revenue for the group was RMB 12,144,980 thousand, a decrease of 11.7% compared to RMB 13,755,242 thousand in 2021[22] - Gross profit for the period was RMB 5,259,632 thousand, down 28.7% from RMB 7,377,039 thousand in 2021, resulting in a gross margin of 43.3%[22] - Adjusted net profit decreased by 52.7% to RMB 2,575,122 thousand from RMB 5,442,613 thousand in 2021, primarily due to a decline in sales revenue from enterprise customers and increased expenses[22] - The net profit for the year was RMB 2,510,316 thousand, a decline of 52.5% from RMB 5,286,967 thousand in 2021[58] Revenue Breakdown - Export revenue accounted for 81.5% of total revenue, significantly increasing from 66.0% in 2021, with a notable rise in the second half of the year[8] - Sales revenue in the U.S. market decreased by 22.7%, with its share of total revenue dropping from 35.5% to 31.1%[9] - In the European market, sales revenue increased by 53.4%, rising from 22.1% of total revenue to 38.3%[10] - Revenue from enterprise customers decreased to RMB 10,679,372 thousand, a decline of 15.2% compared to RMB 12,593,523 thousand in 2021, primarily due to regulatory impacts in the US and China[24] - Revenue from retail customers increased to RMB 1,465,608 thousand, representing a growth of approximately 26.2% from RMB 1,161,719 thousand in 2021, driven by strong R&D capabilities and successful new product launches[25] Research and Development - The total R&D expenditure amounted to RMB 1,372,258 thousand, representing a 104.6% increase year-on-year, and accounting for 11.3% of revenue, up from 4.9% the previous year[13] - The group added over 320 R&D personnel during the review period, bringing the total to over 1,500, which is more than 40% of the total non-production staff[12] - The group established 7 new research institutes focusing on new materials, medical research, and health and beauty applications of atomization technology[12] - The group has applied for a total of 5,662 patents globally, including 2,695 invention patents, with 2,254 new patent applications filed during the review period[14] - Research and development expenses increased significantly to RMB 1,372,258 thousand in 2022, compared to RMB 670,629 thousand in 2021, reflecting a rise of 104.5%[58] Market and Product Development - The company is focusing on long-term competitiveness through increased investment in core technology R&D and talent development[5] - The company aims to expand its product line in the special-purpose atomization products sector to increase market share[5] - The company launched disposable electronic vaporization products, achieving revenue of RMB 1,931,028 thousand, a growth of 1,919.2% compared to RMB 95,634 thousand in 2021[11] - The company aims to expand its market share in specialized atomization products by entering more niche markets with new product launches[13] - The company plans to invest in R&D, including the establishment of a group-level research institute in Shenzhen and the development of new heating technologies[105] Operational Efficiency - The company successfully implemented an SAP system to enhance management capabilities, laying a solid foundation for long-term development[6] - The group has introduced advanced product development management processes to enhance manufacturability and automation feasibility in product design[16] - The group successfully implemented an SAP system to improve operational efficiency across procurement, production, sales, and financial management[15] - The company is upgrading its group-level ERP system and existing factories to enhance operational efficiency[105] Challenges and Risks - The company faced challenges from the ongoing COVID-19 pandemic, impacting production, logistics, and supply chains[5] - The cost of raw materials accounted for 73.3% of total sales costs, up from 70.0% in the previous year, primarily due to increased sales of low-margin disposable products[30] - Distribution and selling expenses rose to RMB 387,671 thousand, an increase of 101.0% from RMB 192,916 thousand in 2021, representing 3.2% of total revenue[31] Shareholder Communication and Governance - The company has maintained compliance with corporate governance principles, adhering to all code provisions except for the separation of the roles of Chairman and CEO[89] - The board consists of eight directors, including three independent non-executive directors, ensuring adequate checks and balances[89] - The company established various communication channels with shareholders, including printed and electronic reports, annual meetings, and dedicated investor relations teams[94] - The board expressed confidence in the company's long-term strategy and growth potential, as evidenced by recent share purchases by directors totaling HKD 201,410,020[100] Dividends and Share Buybacks - The company plans to distribute a final dividend of HKD 0.08 per ordinary share for the year ended December 31, 2022[4] - The company declared a mid-year dividend of HKD 0.10 per share for 2022, down from HKD 0.21 per share in 2021[80] - The total dividend paid for the year was approximately RMB 1,448,103 thousand, a decrease of 38.8% compared to RMB 2,369,905 thousand in 2021[80] - The company aims to enhance shareholder value through its share buyback program, reflecting confidence in its business outlook[98] Future Outlook - The global electronic vaporization equipment market is projected to grow at a compound annual growth rate (CAGR) of approximately 18.5% from 2022 to 2027[7] - The global heated tobacco products market is expected to grow at a CAGR of about 18.5%, with a projected market size of approximately USD 16,600 million by 2027[19] - The global special purpose vaporization equipment market is anticipated to grow at a CAGR of around 18.4%, reaching approximately USD 2,784.6 million by 2027[19] - The company aims to apply for additional resources from PMTA to launch more products in the medical and pharmaceutical sectors[105]