思摩爾國際控股有限公司（「本公司」及其附屬公司「本集團」）董事（「董事」）會（「董事會」）兹 通告謹定於2025年8月20日（ 星期三 ）舉行本公司之董事會會議，以（ 其中包括 ）考慮及通過 本 集團 截 至 2025 年 6 月30 日止 的 六 個月 中 期業 績 ，及 派 發 中期 股 息（ 如有 ），以 及 處 理其 他 事項。 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的內容概不負責，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份內容而產生或因倚賴該等內容而引致的任何損 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） 董事會召開日期 承董事會命 思摩爾國際控股有限公司 陳志平先生 董事會主席 香港，2025年8月8日 於本公告日期，本公司執行董事為陳志平先生、熊少明先生、王貴升先生和王鑫女士；非執行董事為江敏女 士；獨立非執行董事為鍾山先生、閻小穎先生及王高博士。 ...

Summary of Smoore International Conference Call Company Overview - Smoore International primarily engages in the manufacturing of vaping products, serving major tobacco companies and domestic brands. The global market for vaping products is approximately $20 billion, with Smoore holding a significant position in this sector, including key clients like British American Tobacco [3][4]. Industry Challenges - Since 2021, Smoore has faced significant challenges, including: - The ban on fruit-flavored e-cigarettes in China since Q3 2022, leading to a drastic revenue decline from nearly 5 billion RMB [2][4]. - The illegal e-cigarette market in the U.S. capturing over 75% of market share, stalling growth for compliant products [4]. - The rise of disposable e-cigarettes in Europe, negatively impacting overall profit margins, with disposable e-cigarettes having a gross margin below 20% compared to over 50% for traditional products [5][7]. Current Development Logic - Smoore's current strategy focuses on: - Stabilizing its traditional vaping business by deepening ties with core clients and maintaining technological leadership [6]. - Actively expanding into the heated not burned (HNB) product category as a second growth avenue [2][6]. Market Dynamics - The U.S. market's compliance process is influenced by the regulation of illegal products. If fruit-flavored products are allowed, the compliant market demand could significantly expand [2][7]. - In Europe, the transition from disposable to refillable and open-system products is expected to enhance profitability, especially following bans on disposable e-cigarettes in the UK and France [10]. Key Factors for Market Expansion - The expansion of the compliant market hinges on the potential lifting of the fruit-flavored e-cigarette ban. Signals indicate that the FDA may relax restrictions, which could greatly boost demand [8][9]. HNB Market Potential - The global HNB market is valued at $38 billion, with rapid growth observed. North America has low penetration, but significant potential exists, especially with upcoming product launches from Philip Morris [11][12]. - Smoore's technological advantages in HNB products position it well for competition, with expectations of achieving a market share of around 30% in the mid-term [12]. Future Outlook - Smoore aims for a market capitalization target of 300 billion to 500 billion, driven primarily by HNB business growth and potential policy changes in the U.S. regarding vaping products [15]. - The company is also exploring new business avenues such as medical vaping, which holds considerable long-term potential [13][14]. Conclusion - Smoore International is navigating a challenging landscape with strategic focus areas in traditional vaping and HNB products. The company's future growth will depend on regulatory changes, market dynamics, and successful product launches.

Core Viewpoint - Smoore International (06969) saw a stock increase of over 5%, currently trading at 21.28 HKD with a transaction volume of 1.42 billion HKD, driven by positive outlooks on new tobacco products from British American Tobacco (BAT) [1] Group 1: Company Performance - In the first half of 2025, BAT reported revenue from new tobacco products at 1.651 billion GBP, reflecting a year-on-year growth of 2.4% [1] - Adjusted gross profit for BAT reached 1.006 billion GBP, up 6.8%, with an adjusted gross margin of 59.5%, an increase of 2.5 percentage points [1] - Profit contribution from product categories was 179 million GBP, marking a significant increase of 39% [1] Group 2: Market Outlook - BAT anticipates accelerated growth in its new tobacco business in the second half of 2025, projecting a mid-single-digit revenue growth for the entire year [1] - Smoore International is viewed positively as a core supplier, benefiting from BAT's substantial resource and marketing investments in GloHilo, which has received favorable feedback from trials in Japan and early deployments in several European countries [1] - The overall performance of Heat-Not-Burn (HNB) products is stable, supported by the launch of GloHilo, which has increased its market share by 1.5 percentage points in Sendai [1] - The global HNB industry is entering a new product lifecycle phase, with major brands actively engaging in market cultivation, suggesting potential for accelerated industry expansion [1]

| 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06969 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | USD | | 0.01 USD | | 100,000,000 | | 增加 / 減少 (-) | | | | 0 | | USD | | 0 | | 本月底結存 | | | 10,000,000,000 | USD | | 0.01 USD | | 100,000,000 | FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 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) 呈交日期: 2025年8月5日 I. 法定/註冊股 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Insights - The new tobacco products from British American Tobacco (BAT) contributed significantly to profits in the first half of 2025, with revenues of £1.651 billion, a year-on-year increase of 2.4%, and an adjusted gross profit of £1.006 billion, up 6.8% [1] - BAT expects accelerated growth in its new tobacco business in the second half of 2025, projecting a mid-single-digit revenue growth for the full year [1] - The Glo Hilo product received positive feedback from its trial in Sendai, Japan, and there are plans for further promotion in Europe [2] - The heated tobacco segment saw a slight revenue increase of 0.8% in the first half of 2025, although market share declined due to increased competition [2] - The vaping segment faced challenges, with Vuse sales down 12.9% and revenues down 15.3% due to the proliferation of illegal products [3] - The oral tobacco segment, particularly Velo, experienced significant growth, with sales up 42.2% and revenues up 38.1% in the first half of 2025 [4] - The company is optimistic about the future growth of Glo Hilo and the oral tobacco segment, while the vaping segment may recover due to regulatory actions against illegal products [5] Financial Summary - Projected revenues for the company from 2025 to 2027 are £13.161 billion, £15.590 billion, and £18.633 billion, representing year-on-year growth rates of 11.55%, 18.45%, and 19.52% respectively [5] - Projected net profits for the same period are £1.311 billion, £2.040 billion, and £2.763 billion, with growth rates of 0.57%, 55.68%, and 35.40% respectively [5] - The current market capitalization is approximately HK$131.19 billion [6]

Core Viewpoint - Smoore International (06969) experienced a significant stock decline, dropping over 9% at one point, and currently trading down 5.94% at HKD 19.94, with a trading volume of HKD 1.095 billion [1] Group 1: Company Performance - Core client British American Tobacco reported a 12.9% year-on-year decline in global sales of its vaping products (Vuse), with a 13.0% decrease in revenue when adjusted for constant currency [1] - The launch of the new HNB product, glo Hilo, in Japan's Miyagi Prefecture, was priced at JPY 3,980, with nationwide sales set to begin on September 1 [1]

Core Viewpoint - UBS has raised the target price for Smoore International (06969.HK) to HKD 14 while maintaining a "Sell" rating, citing a significant increase in revenue from ODM and HNB businesses, despite rising competition and associated costs [1] Financial Performance - The company reported a year-on-year revenue growth of 18% in the first half of the year, attributed to a recovery in the vape business and preemptive increases in shipment volumes ahead of U.S. tariffs [1] - UBS has updated its earnings forecasts for Smoore International for 2025 to 2027, with adjustments of -21%, +1%, and +21% respectively [1] Profit Outlook - The company is expected to see a year-on-year decline in net profit of 21% to 35% in the second half of the year, primarily due to high expenses related to stock options granted in the fourth quarter and S&D costs [1] Valuation - UBS maintains that Smoore International's valuation is rich and already reflects the growth potential from Vapes and HNB [1] - The target price has been increased from HKD 10.7 to HKD 14 [1]

Group 1 - The company forecasts a revenue of 6.013 billion yuan for H1 2025, representing an 18% year-on-year increase, while net profit is expected to be between 443 million and 541 million yuan, reflecting a decline of 21% to 35% year-on-year [1] - The decline in profit is attributed to increased non-cash expenses related to stock options and awards, higher distribution and sales expenses due to market expansion, and a significant rise in legal service costs [1] - Adjusted net profit, excluding non-cash stock-based payment expenses, is projected to be between 688 million and 787 million yuan, indicating a year-on-year change of -9% to +4% [1] Group 2 - The company's vaping business benefits from the global market's compliance development, with revenue growth driven by proprietary brand and enterprise customer business [1] - In the UK, a ban on disposable e-cigarettes has caused significant market disruption, leading to a shift in demand towards reusable e-cigarette products [1] - In the US, the FDA and CBP have intensified actions against illegal e-cigarettes, seizing over 135 million USD worth of products since 2023, which is expected to support the growth of the company's proprietary brand and enterprise customer business [1] Group 3 - British American Tobacco's Glo Hilo product, utilizing infrared quartz heating technology, is set for nationwide launch in Japan after successful trials, with a retail price of approximately 25 USD [2] - The company aims to revitalize market growth in Japan, which is a key strategic market for smoke-free products, as sales of smoke-free products have surpassed traditional cigarettes [2] - The HNB business is expected to contribute significantly to revenue growth starting in 2025, with projected net profits for 2025-2027 being 1.337 billion, 1.912 billion, and 2.760 billion yuan respectively, reflecting year-on-year growth rates of +2.57%, +43.01%, and +44.35% [2]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [5][14]. Core Viewpoints - The company is expected to benefit from the tightening global regulations on vaping products, particularly in the e-cigarette sector, and anticipates significant growth in its Heat-Not-Burn (HNB) business [2][4]. - The company reported a revenue of 6.013 billion yuan for the first half of 2025, representing an 18% year-on-year increase, driven by growth in its proprietary brand and enterprise client businesses [2][4]. - The decline in net profit, projected between 443 million to 541 million yuan, is attributed to increased non-cash expenses related to stock options and a rise in marketing and legal costs [1][4]. Summary by Sections Financial Performance - For the first half of 2025, the company expects revenue of 60.13 billion yuan, up 18% year-on-year, while net profit is projected to decline by 21% to 35% [1][2]. - Adjusted net profit, excluding non-cash stock-based payments, is estimated to be between 688 million to 787 million yuan, reflecting a year-on-year change of -9% to +4% [1]. Market Dynamics - The UK market is undergoing significant changes due to a ban on disposable e-cigarettes, which is expected to shift consumer demand towards reusable products [2]. - In the US, regulatory actions against illegal e-cigarettes have intensified, with over 135 million USD worth of illegal products seized since 2023, indicating a tightening market environment [2]. Growth Opportunities - The HNB business is anticipated to become a significant growth driver starting in 2026, contributing notably to revenue and profit [4]. - The company is enhancing its market presence, particularly in overseas markets, which is expected to sustain growth in its proprietary brand and enterprise client segments [2][4].

Core Viewpoint - The company forecasts a revenue of 6.013 billion yuan for H1 2025, representing an 18% year-over-year increase, while net profit is expected to decline by 21% to 35% year-over-year, primarily due to increased non-cash share payments and rising operational costs associated with brand expansion and legal services [1] Group 1: Business Performance - The company’s revenue growth in H1 2025 is attributed to strengthened enforcement and regulatory policies in the U.S. and parts of Europe, leading to good growth in both its proprietary brand and ToB businesses [1] - The adjusted net profit for H1 2025 is projected to be between 688 million and 787 million yuan, reflecting a year-over-year change of -9% to +4% [1] Group 2: Regulatory Environment - The U.S. FDA and state governments have intensified enforcement against non-compliant electronic vapor products, which has positively impacted the sales of compliant products [2] - In Europe, regulations on disposable e-cigarettes have tightened, with bans in the UK and New Zealand taking effect, which is expected to shift consumer demand towards compliant products [2] Group 3: New Business Development - The Glo Hilo product, launched in Japan, has shown improved performance compared to its Serbian counterpart, with enhanced heating efficiency and a wider variety of flavor options [3] - The product is set to be rolled out nationwide in Japan, which is anticipated to benefit the company as a product innovator and supply chain partner [3] Group 4: Financial Forecast and Valuation - The company maintains its profit forecast, expecting net profits of 1.323 billion, 2.140 billion, and 2.762 billion yuan for 2025-2027, with corresponding EPS of 0.21, 0.35, and 0.45 yuan [3] - A target price of 25.00 HKD is set, reflecting a valuation premium due to high competitive barriers in the HNB new business and the steady recovery of the vapor main business [3]