[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Key Financial Highlights](index=2&type=section&id=Key%20Financial%20Highlights) Smoore International reported RMB 6.013 billion revenue, up 18.3%, with gross profit increasing 16.6% to RMB 2.244 billion, while profit for the period decreased 28.0% to RMB 492 million due to higher expenses Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 6,013,290 | 5,083,554 | 18.3 | - | | Gross Profit | 2,243,850 | 1,923,951 | 16.6 | - | | Gross Margin | 37.3% | 37.8% | - | (0.5) | | Profit Before Tax | 698,735 | 811,555 | (13.9) | - | | Profit for the Period | 492,154 | 683,198 | (28.0) | - | | Total Comprehensive Income for the Period | 501,166 | 724,597 | (30.8) | - | | Adjusted Profit for the Period | 737,410 | 752,851 | (2.1) | - | | Adjusted Net Profit Margin | 12.3% | 14.8% | - | (2.5) | - Profit for the period decreased by **28.0%**, primarily due to significant increases in share-based payment expenses, market development costs, and legal and compliance service fees, which were not fully offset by revenue and gross profit growth[34](index=34&type=chunk) - Adjusted profit for the period excludes non-cash share-based payment expenses, which management believes provides a clearer reflection of operating performance[5](index=5&type=chunk)[6](index=6&type=chunk) [Key Financial Ratios](index=3&type=section&id=Key%20Financial%20Ratios) As of June 30, 2025, total assets slightly decreased, but total equity grew by 2.5%, with improved debt-to-asset and current ratios indicating a robust financial structure Key Financial Ratios as of June 30, 2025 | Metric | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | Change (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 27,331,803 | 27,654,378 | (1.2) | - | | Total Equity | 22,445,554 | 21,904,711 | 2.5 | - | | Cash and Cash Equivalents | 5,211,753 | 5,170,700 | 0.8 | - | | Debt-to-Asset Ratio | 17.9% | 20.8% | - | (2.9) | | Current Ratio | 336.7% | 320.3% | - | 16.4 | | Trade Receivables and Bills Turnover Days | 61.4天 | 61.5天 | (0.2) | - | | Inventory Turnover Days | 45.7天 | 41.8天 | 9.3 | - | | Trade Payables and Bills Turnover Days | 62.4天 | 65.2天 | (4.3) | - | [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Principal Business](index=4&type=section&id=Principal%20Business) Smoore International, a global leader in atomization technology, operates ToB and self-owned brand businesses, offering R&D, design, manufacturing, and technical services for diverse atomization products - The Group primarily operates through two major segments, ToB business and self-owned brand business, offering diversified atomization technology solutions[8](index=8&type=chunk) - The ToB business covers R&D, design, manufacturing, and technical services for atomization products, Heat-Not-Burn (HNB) products, special-purpose atomization products, and atomization medical products[8](index=8&type=chunk) - The self-owned brand business primarily includes R&D, design, manufacturing, and sales of self-owned brand e-vapor products and atomization beauty products[8](index=8&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) Stricter global e-vapor regulations in H1 2025 drove the Group's revenue up 18.3%, fueled by ToB and self-owned brand business recovery and strategic focus on compliant, innovative products - Global e-vapor product regulations are tightening, with the US FDA increasing enforcement and several European countries implementing bans on disposable atomization products, creating growth opportunities for compliant market participants[8](index=8&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) Revenue by Business Segment for H1 2025 | Business Segment | H1 2025 Revenue (RMB 100 million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | ToB Business | 47.39 | 19.5 | | Self-owned Brand Business | 12.74 | 14.1 | | **Total Revenue** | **60.13** | **18.3** | - The Group drove sales growth by rapidly launching innovative and compliant new products and deepening cooperation with clients, offering marketing, branding, and channel operation services[9](index=9&type=chunk)[10](index=10&type=chunk) [Sales and Marketing](index=6&type=section&id=Sales%20and%20Marketing) Amid strict global regulations, the Group's sales and marketing focused on compliant products, with VAPORESSO strong in Europe and "Lanzhi" growing significantly in China, while ToB business faced mixed regional performance - The US FDA intensified enforcement against non-compliant e-vapor products, seizing nearly **2 million** unauthorized items, with multiple states passing or considering e-vapor registration bills[12](index=12&type=chunk) - The UK implemented a ban on disposable e-vapor product sales, creating significant market opportunities for compliant products[13](index=13&type=chunk) Revenue by Business Segment and Region for H1 2025 | Business Segment | Region | H1 2025 Revenue (RMB 100 million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Self-owned Brand | Europe and Other | 10.69 | 15.1 | | Self-owned Brand | US | 1.74 | (6.7) | | Self-owned Brand | China (Atomization Beauty) | 0.31 | 2,595.2 | | ToB | Europe and Other | 27.34 | 38.0 | | ToB | US | 18.88 | 1.5 | | ToB | China | 1.17 | (6.1) | - Self-owned brand atomization beauty product "Lanzhi" saw revenue in mainland China increase by **2,595.2%** year-on-year, obtained Class II medical device certification, and has been adopted by multiple beauty institutions and public hospitals[15](index=15&type=chunk) [Research and Development](index=8&type=section&id=Research%20and%20Development) R&D expenses decreased 4.9% to RMB 723 million in H1 2025, shifting focus to HNB and atomization medical, with breakthroughs in HNB and new patent applications totaling 10,092 globally - R&D expenses decreased by **4.9%** year-on-year to **RMB 723 million**, with its proportion of revenue falling from **15.0%** to **12.0%**, primarily due to reduced investment in e-vapor products and the capitalization of eligible development costs[11](index=11&type=chunk)[19](index=19&type=chunk)[24](index=24&type=chunk)[46](index=46&type=chunk) - The R&D strategy focused on HNB products and atomization medical, successfully supporting a strategic client's launch of a high-end HNB product series in Japan, with plans to expand to more markets in H2 2025[19](index=19&type=chunk)[20](index=20&type=chunk)[27](index=27&type=chunk) - Atomization medical subsidiary Transpring established an inhaled product R&D center in Miami, Florida, and collaborated with CDMOs to build drug-device combination product manufacturing capabilities in the US[20](index=20&type=chunk)[21](index=21&type=chunk) R&D Expense Classification for H1 2025 | R&D Area | 2025 (RMB '000) | Proportion (%) | 2024 (RMB '000) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Electronic Nicotine Delivery Systems | 478,591 | 66.2 | 481,988 | 63.4 | (0.7) | | Atomization Medical and Atomization Beauty | 179,241 | 24.8 | 185,471 | 24.4 | (3.4) | | Special-Purpose Atomization Products and Solutions | 64,732 | 9.0 | 92,653 | 12.2 | (30.1) | | **Total** | **722,564** | **100.0** | **760,112** | **100.0** | **(4.9)** | - As of June 30, 2025, the Group had accumulated **10,092** patent applications globally, including **5,224** invention patents, with **839** new patent applications (including **464** invention patents) during the review period[23](index=23&type=chunk) [Production Operations](index=10&type=section&id=Production%20Operations) The Group's production system achieved excellent agility and improved capacity utilization through flexible operations, KPI implementation, and successful support for key HNB product launches - The production system continuously improved overall capacity utilization through flexible operational adjustments and strategic optimization of production layout, ensuring rapid market response and customer delivery[25](index=25&type=chunk) - A Key Performance Indicators (KPIs) system and an operational knowledge base were established to promote cross-factory knowledge sharing and experience integration, continuously improving operational efficiency[25](index=25&type=chunk) - The HNB business achieved breakthroughs, with the operations team effectively supporting the launch and delivery of key clients' HNB products and establishing a stringent product quality control system[25](index=25&type=chunk) [Future Prospects and Strategies](index=11&type=section&id=Future%20Prospects%20and%20Strategies) The Group will focus on "atomization technology," deepening its presence in e-vapor, HNB, and medical atomization, accelerating technology commercialization, and enhancing operations for sustainable growth and shareholder returns - The Group will continue to adhere to "atomization technology" as its core, deepening its presence in key areas such as e-vapor, HNB, special-purpose atomization products, atomization medical, and atomization beauty products[26](index=26&type=chunk) Market Size Forecast for Various Atomization Products (2024-2029) | Market | 2029 Market Size (USD) | 2024-2029 CAGR (%) | | :--- | :--- | :--- | | HNB Products | 66.86 billion | 10.1 | | E-vapor Products | 91.42 billion | 7.4 | | Special-Purpose Atomization Products | 3.44 billion | 17.2 | - The atomization medical market is projected to reach approximately **USD 93.28 billion** by 2030, with Transpring dedicated to developing generic drugs for asthma and COPD products and advancing drug-device combination product development[30](index=30&type=chunk) - China's beauty device retail market is expected to significantly expand to **RMB 25.1 billion to RMB 37.4 billion** by 2025, and the skincare market is projected to reach **RMB 701.1 billion** by 2028[31](index=31&type=chunk) - Future strategies include accelerating technology platform commercialization, prioritizing R&D for HNB and atomization medical solutions, launching competitive new products in the e-vapor sector, and deepening comprehensive one-stop cooperation with clients[31](index=31&type=chunk)[32](index=32&type=chunk) - Production and operations management will be strengthened, increasing automation, streamlining workflows, and promoting a "prevention-first" quality assurance approach, while committing to corporate social responsibility and sustainable development[33](index=33&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) [Overall Financial Performance](index=14&type=section&id=Overall%20Financial%20Performance) In H1 2025, revenue grew 18.3% to RMB 6.013 billion, gross profit increased 16.6% to RMB 2.244 billion, but profit for the period fell 28.0% to RMB 492 million due to higher expenses Overall Financial Performance for H1 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | | Total Revenue | 6,013,290 | 5,083,554 | 18.3 | | Gross Profit | 2,243,850 | 1,923,951 | 16.6 | | Gross Margin | 37.3% | 37.8% | (0.5 percentage points) | | Profit for the Period | 492,154 | 683,198 | (28.0) | | Adjusted Profit for the Period | 737,410 | 752,851 | (2.1) | - The primary reasons for the decrease in profit for the period include: (i) a significant increase in share-based payment expenses; (ii) a substantial increase in market development costs for self-owned brand products; and (iii) a significant increase in legal and compliance service-related fees[34](index=34&type=chunk) [Revenue by Business Type](index=14&type=section&id=Revenue%20by%20Business%20Type) Total revenue grew 18.3% in H1 2025, with ToB business contributing 78.8% (up 19.5%) and self-owned brands 21.2% (up 14.1%), notably driven by strong ToB growth in Europe and atomization beauty in China Revenue by Business Type for H1 2025 | Business Type | 2025 (RMB '000) | Proportion (%) | 2024 (RMB '000) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Self-owned Brand Business | 1,274,306 | 21.2 | 1,116,743 | 22.0 | 14.1 | | ToB Business | 4,738,984 | 78.8 | 3,966,811 | 78.0 | 19.5 | | **Total** | **6,013,290** | **100.0** | **5,083,554** | **100.0** | **18.3** | Detailed Revenue by Business Segment and Region for H1 2025 | Business Segment | Region | 2025 (RMB '000) | Proportion of Total Revenue (%) | 2024 (RMB '000) | Proportion of Total Revenue (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Self-owned Brand | Europe and Other (E-vapor) | 1,069,339 | 17.8 | 928,687 | 18.3 | 15.1 | | Self-owned Brand | US (E-vapor) | 174,349 | 2.9 | 186,920 | 3.7 | (6.7) | | Self-owned Brand | China (Atomization Beauty) | 30,618 | 0.5 | 1,136 | 0.0 | 2,595.2 | | ToB | Europe and Other (E-vapor, HNB, Technical Services) | 2,733,787 | 45.4 | 1,981,193 | 39.0 | 38.0 | | ToB | US (E-vapor, Special-Purpose Atomization, Technical Services) | 1,887,768 | 31.4 | 1,860,614 | 36.6 | 1.5 | | ToB | China (E-vapor, Technical Services) | 117,429 | 2.0 | 125,004 | 2.4 | (6.1) | | **Total** | | **6,013,290** | **100.0** | **5,083,554** | **100.0** | **18.3** | [Gross Profit and Cost of Revenue](index=17&type=section&id=Gross%20Profit%20and%20Cost%20of%20Revenue) Gross profit increased 16.6% to RMB 2.244 billion in H1 2025, but gross margin slightly declined to 37.3%, with cost of revenue rising 19.3% due to increased labor and indirect costs - Gross profit increased by **16.6%** to **RMB 2,243,850 thousand**, with gross margin slightly decreasing by **0.5 percentage points** to **37.3%**[41](index=41&type=chunk) Cost of Revenue Composition for H1 2025 | Cost Item | 2025 (RMB '000) | Proportion of Revenue (%) | 2024 (RMB '000) | Proportion of Revenue (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Raw Material Costs | 2,845,798 | 47.3 | 2,428,773 | 47.8 | 17.2 | | Labor Costs | 433,682 | 7.2 | 341,758 | 6.7 | 26.9 | | Indirect Costs | 454,955 | 7.6 | 354,390 | 7.0 | 28.4 | | Taxes and Surcharges | 35,005 | 0.6 | 34,682 | 0.7 | 0.9 | | **Total** | **3,769,440** | **62.7** | **3,159,603** | **62.2** | **19.3** | - The proportion of raw material costs to revenue slightly decreased, primarily benefiting from the Group's continuous efforts to reduce product costs and enhance efficiency[42](index=42&type=chunk) [Selling and Distribution Expenses](index=18&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses rose 31.2% to RMB 491 million in H1 2025, increasing to 8.2% of revenue, mainly due to higher marketing investment in self-owned brands - Selling and distribution expenses increased by **31.2%** to **RMB 491,229 thousand**, with its proportion of revenue growing from **7.4%** to **8.2%**[43](index=43&type=chunk) - Staff salaries and benefits increased by **24.9%** to **RMB 185,664 thousand**, primarily due to increased remuneration for marketing personnel[43](index=43&type=chunk) - Market development costs increased by **123.2%** to **RMB 133,965 thousand**, primarily due to intensified promotion of e-vapor products and atomization beauty products[43](index=43&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses) Administrative expenses surged 79.7% to RMB 610 million in H1 2025, reaching 10.1% of revenue, driven by increased share-based payment and legal compliance costs - Administrative expenses increased by **79.7%** to **RMB 609,548 thousand**, with its proportion of revenue growing from **6.7%** to **10.1%**[44](index=44&type=chunk) - Staff salaries and benefits increased by **76.2%** to **RMB 357,378 thousand**, primarily due to increased share-based payment expenses[45](index=45&type=chunk) - Professional fees increased by **819.6%** to **RMB 139,687 thousand**, primarily due to increased legal and compliance service-related fees[45](index=45&type=chunk) [Research and Development Expenses](index=20&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased 4.9% to RMB 723 million in H1 2025, falling to 12.0% of revenue, mainly due to reduced e-vapor product investment and capitalized development costs - R&D expenses decreased by **4.9%** to **RMB 722,564 thousand**, with its proportion of revenue falling from **15.0%** to **12.0%**[46](index=46&type=chunk) - R&D expenses for Electronic Nicotine Delivery Systems decreased by **0.7%**, for atomization medical and atomization beauty products by **3.4%**, and for special-purpose atomization products and solutions by **30.1%**[46](index=46&type=chunk) - The primary reasons for the decrease in R&D expenses were reduced investment in e-vapor products and the capitalization of eligible development costs[46](index=46&type=chunk) [Other Income and Expenses](index=21&type=section&id=Other%20Income%20and%20Expenses) Total other income decreased 9.3% to RMB 350 million in H1 2025, mainly due to lower bank interest and government grants, despite increased investment note interest Other Income and Expenses for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | | Interest income from bank deposits | 235,658 | 322,425 | (26.9) | | Interest income from investment notes measured at amortized cost | 87,130 | — | Not applicable | | Government grants | 19,192 | 57,955 | (66.9) | | Other | 7,711 | 5,255 | 46.7 | | **Total** | **349,691** | **385,635** | **(9.3)** | [Other Gains and Losses](index=21&type=section&id=Other%20Gains%20and%20Losses) Total other losses surged 811.9% to RMB 55.177 million in H1 2025, primarily due to net foreign exchange losses and increased losses from asset disposals Other Gains and Losses for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | | Net foreign exchange (loss) gain | (37,238) | 8,134 | Not applicable | | Loss arising from forward foreign exchange contracts/swap contracts | (482) | — | Not applicable | | Gain arising from short-term floating rate bank deposits | 5,524 | 1,118 | 394.1 | | Gain arising from debt instruments | 2,498 | — | Not applicable | | Gain on early termination of leases | 258 | 396 | (34.8) | | Loss on disposal/write-off of property, plant and equipment | (25,737) | (22,935) | 12.2 | | Other | — | 7,236 | Not applicable | | **Total** | **(55,177)** | **(6,051)** | **811.9** | [Finance Costs](index=22&type=section&id=Finance%20Costs) Finance costs decreased 26.4% to RMB 13.619 million in H1 2025, mainly due to lower interest expenses from lease liabilities and discounted bills receivable - Finance costs decreased by **26.4%** year-on-year to **RMB 13,619 thousand**[49](index=49&type=chunk) - Primarily from interest expenses on lease liabilities and interest expenses arising from discounted bills receivable[49](index=49&type=chunk) [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) Income tax expense increased 60.9% to RMB 207 million in H1 2025, driven by higher tax provisions for international expansion and first-time recognition of Pillar Two related taxes - Income tax expense increased by **60.9%** year-on-year to **RMB 206,581 thousand**[50](index=50&type=chunk) - The primary reason for the increase in income tax was increased tax provisions related to the Group's international business expansion[50](index=50&type=chunk) - First-time recognition of current income tax expenses of **RMB 76,218 thousand** related to Pillar Two rules[86](index=86&type=chunk) [Profit for the Period and Total Comprehensive Income](index=22&type=section&id=Profit%20for%20the%20Period%20and%20Total%20Comprehensive%20Income) Profit for the period decreased 28.0% to RMB 492 million, and total comprehensive income fell 30.8% to RMB 501 million in H1 2025, as expense growth outpaced revenue and gross profit - Profit for the period decreased by **28.0%** year-on-year to **RMB 492,154 thousand**[51](index=51&type=chunk) - Total comprehensive income for the period decreased by **30.8%** year-on-year to **RMB 501,166 thousand**[51](index=51&type=chunk) - The primary reason for the decline was insufficient growth in revenue and gross profit to offset the increase in expenses[51](index=51&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group maintained strong liquidity with RMB 10.20 billion net current assets and a 336.7% current ratio, boasting a robust financial position with no borrowings or pledged assets - Net current assets were approximately **RMB 10,198,578 thousand**, and cash and cash equivalents were approximately **RMB 5,211,753 thousand**[52](index=52&type=chunk) - The current ratio was **336.7%**, an improvement from **320.3%** at the end of 2024[52](index=52&type=chunk) - The Group had no borrowings from banks or other financial institutions, its debt-to-asset ratio decreased to **21.8%**, and no assets were pledged, indicating a robust financial position[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=Foreign%20Exchange%20Risk) With 70% of revenue in USD and 80% of expenses in RMB, the Group faces foreign exchange risk from USD-denominated assets, managed via settlements and forward contracts, with a 10% USD/RMB fluctuation impacting comprehensive income by RMB 1.146 billion - Approximately **70%** of the Group's revenue is settled in USD, and about **30%** in RMB; approximately **80%** of expenses are settled in RMB[57](index=57&type=chunk) - The primary foreign exchange risk arises from USD-denominated monetary assets and the net amount of trade receivables less trade payables[57](index=57&type=chunk) - If the USD to RMB exchange rate increases/decreases by **10%**, the Group's total comprehensive income will increase/decrease by approximately **RMB 1,145,717 thousand**[58](index=58&type=chunk) [Employment, Training and Development](index=24&type=section&id=Employment%2C%20Training%20and%20Development) As of June 30, 2025, the Group employed 23,183 individuals globally, offering comprehensive benefits and development programs, with total staff costs rising to 28.5% of revenue due to increased share-based payments - As of June 30, 2025, the Group had **20,978** employees in China and **2,205** in other countries and regions, totaling **23,183** employees[59](index=59&type=chunk) - The company offers comprehensive remuneration and benefits, and share incentive schemes, and has developed "Hongyi Program," "Zhenyu Program," and a "1 – 3 – 5 – 7 – 10" ten-year development path for fresh graduates[59](index=59&type=chunk)[60](index=60&type=chunk) - Total staff costs accounted for approximately **28.5%** of revenue, an increase from **25.6%** in the prior period, primarily due to a year-on-year increase in share-based payment expenses[60](index=60&type=chunk) [Capital Expenditure and Commitments](index=24&type=section&id=Capital%20Expenditure%20and%20Commitments) Total investment surged to RMB 785 million in H1 2025, mainly for headquarters, equipment, and capitalized R&D, while capital commitments decreased to RMB 474 million by June 30, 2025 - For the six months ended June 30, 2025, total investment in property, plant and equipment, and intangible assets was approximately **RMB 784,581 thousand**, a significant increase from **RMB 282,315 thousand** in the prior period[61](index=61&type=chunk) - The increase in capital expenditure was primarily due to the recognition of capital expenditure related to the headquarters building, equipment, and capitalized R&D expenditures[61](index=61&type=chunk) - As of June 30, 2025, capital commitments for contracted purchases of property, plant and equipment were approximately **RMB 474,461 thousand**, a decrease from **RMB 707,750 thousand** at the end of 2024[62](index=62&type=chunk) [Other Financial Disclosures](index=25&type=section&id=Other%20Financial%20Disclosures) The Group made no significant acquisitions, disposals, investments, or contingent liabilities during the review period, with future plans referencing past disclosures - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[63](index=63&type=chunk) - The Group had no significant investments or significant contingent liabilities[64](index=64&type=chunk)[65](index=65&type=chunk) - Future plans regarding significant investments or capital expenditures will refer to disclosures in the 2020 prospectus, 2021 placing announcement, and 2021 annual report[66](index=66&type=chunk) [Condensed Consolidated Financial Statements](index=26&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's unaudited profit or loss and other comprehensive income for H1 2025, detailing revenue, gross profit, expenses, profit before tax, and earnings per share Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 6,013,290 | 5,083,554 | | Gross Profit | 2,243,850 | 1,923,951 | | Profit Before Tax | 698,735 | 811,555 | | Profit for the Period | 492,154 | 683,198 | | Total Comprehensive Income for the Period | 501,166 | 724,597 | | Basic Earnings Per Share (RMB cents) | 8.08 | 11.20 | | Diluted Earnings Per Share (RMB cents) | 7.96 | 11.11 | [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's unaudited financial position as of June 30, 2025, showing a slight decrease in total assets but an increase in total equity and high net current assets Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current Assets | 12,824,214 | 10,807,950 | | Current Assets | 14,507,589 | 16,846,428 | | Current Liabilities | 4,309,011 | 5,259,365 | | Net Current Assets | 10,198,578 | 11,587,063 | | Total Assets Less Current Liabilities | 23,022,792 | 22,395,013 | | Non-current Liabilities | 577,238 | 490,302 | | Net Assets | 22,445,554 | 21,904,711 | | Total Equity | 22,445,554 | 21,904,711 | [Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's unaudited cash flows for H1 2025, detailing net cash from operating, investing, and financing activities, and the period-end cash and cash equivalents Summary of Condensed Consolidated Statement of Cash Flows | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 813,755 | 602,829 | | Net Cash from Investing Activities | 539,974 | 267,909 | | Net Cash (Used in) from Financing Activities | (1,298,904) | 332,125 | | Net Increase in Cash and Cash Equivalents | 54,825 | 1,202,863 | | Cash and Cash Equivalents at End of Period | 5,211,753 | 6,534,871 | [Notes to Condensed Consolidated Financial Statements](index=30&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [General Information](index=30&type=section&id=General%20Information) Smoore International, incorporated in the Cayman Islands and listed on HKEX, primarily operates ToB and self-owned brand businesses, with financial statements presented in RMB - The Company was incorporated in the Cayman Islands on July 22, 2019, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 10, 2020[73](index=73&type=chunk) - The Group's principal activities are ToB business (R&D, design, manufacturing, and technical services for atomization products, HNB products, special-purpose atomization products, and atomization medical products) and self-owned brand business (R&D, design, manufacturing, and sales of self-owned brand e-vapor products and atomization beauty products)[73](index=73&type=chunk) - The Group's condensed consolidated financial statements are presented in RMB[74](index=74&type=chunk) [Basis of Preparation and Significant Accounting Policies](index=30&type=section&id=Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules, using historical cost, with new HKFRS revisions having no significant impact on financial position or performance - The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[75](index=75&type=chunk) - The financial statements are prepared on the historical cost basis, except for certain financial instruments which are measured at fair value[76](index=76&type=chunk) - The revisions to Hong Kong Financial Reporting Standards adopted for the first time in this interim period had no significant impact on the Group's financial position and performance[77](index=77&type=chunk) [Revenue and Segment Information](index=31&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily from ToB and self-owned brand businesses is mostly recognized at a point in time, with Hong Kong, UK, and US as key revenue sources Disaggregation of Revenue from Contracts with Customers for H1 2025 | Business Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | ToB Business | 4,738,984 | 3,966,811 | | Self-owned Brand Business | 1,274,306 | 1,116,743 | | **Total Revenue** | **6,013,290** | **5,083,554** | | Timing of Revenue Recognition | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | At a point in time | 5,847,159 | 5,037,242 | | Over time | 166,131 | 46,312 | | **Total Revenue** | **6,013,290** | **5,083,554** | - Revenue from the sale of goods is recognized when control of the goods is transferred (i.e., upon delivery), while revenue from technical services is recognized over time[79](index=79&type=chunk)[80](index=80&type=chunk) Revenue Disaggregated by Customer Location for H1 2025 | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Hong Kong, China | 2,128,271 | 1,858,625 | | United Kingdom | 1,501,465 | 1,149,981 | | United States | 648,850 | 567,266 | | Mainland China | 417,262 | 364,777 | | Republic of Croatia | 222,905 | 92,588 | | France | 161,195 | 160,310 | | Malaysia | 124,464 | 2,023 | | Japan | 118,811 | 114,880 | | Canada | 101,353 | 81,652 | | Other | 588,714 | 691,452 | | **Total** | **6,013,290** | **5,083,554** | [Other Gains and Losses (Note)](index=33&type=section&id=Other%20Gains%20and%20Losses%20(Note)) This note details H1 2025 other gains and losses, totaling a RMB 55.177 million loss, significantly higher due to foreign exchange and asset disposal losses Details of Other Gains and Losses for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net foreign exchange (loss) gain | (37,238) | 8,134 | | Loss arising from forward foreign exchange contracts/swap contracts | (482) | — | | Gain arising from short-term floating rate bank deposits | 5,524 | 1,118 | | Gain arising from debt instruments | 2,498 | — | | Gain on early termination of leases | 258 | 396 | | Loss on disposal/write-off of property, plant and equipment | (25,737) | (22,935) | | Other | — | 7,236 | | **Total** | **(55,177)** | **(6,051)** | [Income Tax Expense (Note)](index=34&type=section&id=Income%20Tax%20Expense%20(Note)) This note details H1 2025 income tax expense, totaling RMB 207 million (up 60.9%), driven by increased taxes across regions and the first-time recognition of Pillar Two related current income tax Details of Income Tax Expense for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mainland China corporate income tax | 78,729 | 87,985 | | Hong Kong profits tax | 34,729 | 11,882 | | Other countries and regions | 94,963 | 1,588 | | Deferred tax | (1,840) | 26,902 | | **Total** | **206,581** | **128,357** | - Certain mainland China subsidiaries, as high-tech enterprises, enjoy a preferential corporate income tax rate of **15%**[85](index=85&type=chunk) - Current income tax expenses of **RMB 76,218 thousand** related to Pillar Two rules were recognized in this interim period, leading to an expected effective income tax rate higher than **15%**[86](index=86&type=chunk) [Profit for the Period (Note)](index=35&type=section&id=Profit%20for%20the%20Period%20(Note)) This note details expenses deducted for profit calculation, including depreciation, amortization, and inventory provisions, and specifies amounts capitalized as inventory, PPE, and intangible assets Items Deducted in Profit for the Period for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation of right-of-use assets for buildings and land use rights | 87,229 | 88,819 | | Depreciation of property, plant and equipment other than right-of-use assets | 232,603 | 258,614 | | Amortization of intangible assets | 14,175 | 16,875 | | **Total** | **334,007** | **364,308** | | Less: Amounts capitalized as manufacturing costs of inventories and property, plant and equipment | (187,605) | (221,122) | | Amounts capitalized as intangible assets | (11,228) | — | | Inventory provision charged to cost of revenue | 3,466 | 17,993 | | Government grants | 19,192 | 57,955 | [Dividends (Note)](index=35&type=section&id=Dividends%20(Note)) This note discloses RMB 279 million in dividends for H1 2025, with the Board declaring an interim dividend of HKD 20 cents per share, a significant increase from the prior period - Dividends recognized as distributions for the period amounted to **RMB 279,308 thousand**[88](index=88&type=chunk)[89](index=89&type=chunk) - The Board resolved to pay an interim dividend of **HKD 20 cents** per share (H1 2024: **HKD 5 cents**), totaling approximately **HKD 1,238,220 thousand** to shareholders[89](index=89&type=chunk) [Earnings Per Share (Note)](index=36&type=section&id=Earnings%20Per%20Share%20(Note)) This note provides basic and diluted earnings per share calculations, with basic EPS at RMB 8.08 cents and diluted EPS at RMB 7.96 cents as of June 30, 2025 Earnings Per Share Calculation Data for H1 2025 | Metric | 2025 (RMB '000 / '000 shares) | 2024 (RMB '000 / '000 shares) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share | 492,154 | 683,198 | | Weighted average number of ordinary shares for the purpose of calculating earnings per share | 6,091,740 | 6,101,812 | | Effect of dilutive potential ordinary shares: share options/award shares | 93,359 | 50,173 | | **Basic Earnings Per Share (RMB cents)** | **8.08** | **11.20** | | **Diluted Earnings Per Share (RMB cents)** | **7.96** | **11.11** | [Trade and Other Receivables (Note)](index=36&type=section&id=Trade%20and%20Other%20Receivables%20(Note)) This note details trade and other receivables totaling RMB 2.015 billion as of June 30, 2025, with credit terms of 0-105 days and an aging analysis provided Trade and Other Receivables for H1 2025 | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 2,053,186 | 2,103,221 | | Less: Provision for credit losses | (37,863) | (36,314) | | Bills receivable | — | 17,918 | | **Total** | **2,015,323** | **2,084,825** | - The Group grants credit periods of **0 to 105 days** to trade customers[91](index=91&type=chunk) Aging Analysis of Trade Receivables for H1 2025 | Aging | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 492,339 | 764,436 | | 31 to 60 days | 637,280 | 550,894 | | 61 to 90 days | 479,201 | 477,720 | | Over 90 days | 406,503 | 273,857 | | **Total** | **2,015,323** | **2,066,907** | [Trade and Other Payables (Note)](index=37&type=section&id=Trade%20and%20Other%20Payables%20(Note)) This note details trade and other payables totaling RMB 1.242 billion as of June 30, 2025, with typical credit terms of 30-90 days and an aging analysis provided Trade and Other Payables for H1 2025 | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 1,136,290 | 1,209,152 | | Bills payable | 105,567 | 160,424 | | **Total** | **1,241,857** | **1,369,576** | - The Group is typically granted credit periods of **30 to 90 days**[93](index=93&type=chunk) Aging Analysis of Trade Payables for H1 2025 | Aging | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 389,907 | 730,256 | | 31 to 60 days | 500,169 | 284,727 | | 61 to 90 days | 182,233 | 158,228 | | Over 90 days | 63,981 | 35,941 | | **Total** | **1,136,290** | **1,209,152** | [Other Information](index=38&type=section&id=Other%20Information) [Corporate Governance](index=38&type=section&id=Corporate%20Governance) The Company adheres to good corporate governance, complying with Listing Rules, and despite the combined Chairman/CEO role, the Board believes existing checks and balances protect shareholder interests - The Company has complied with all code provisions and recommended best practices of the Corporate Governance Code in Appendix C1 of the Listing Rules (except for the roles of Board Chairman and Chief Executive Officer being held by Mr. Chen Zhiping)[95](index=95&type=chunk) - The Board believes that the current arrangement, where the roles of Chairman and Chief Executive Officer are held by the same person, is most appropriate for the overall interests of shareholders, as there are sufficient checks and balances within the Board, and directors have committed to fulfilling their fiduciary duties[95](index=95&type=chunk)[96](index=96&type=chunk) [Audit Committee](index=39&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Zhong Shan and composed of three independent non-executive directors, reviews the Group's financial practices, risk management, and internal controls - The Audit Committee comprises three independent non-executive directors, with Mr. Zhong Shan serving as Chairman, possessing expertise in accounting, auditing, and finance[97](index=97&type=chunk) - The Audit Committee's primary responsibilities include reviewing the Group's financial and accounting practices, risk management, and internal controls, and it has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[97](index=97&type=chunk) [Standard Code for Securities Transactions by Directors](index=39&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Listing Rules' Standard Code for Directors' Securities Transactions, with all directors confirming strict compliance during the review period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[98](index=98&type=chunk) - All directors have confirmed strict compliance with the requirements of the Standard Code for Securities Transactions for the six months ended June 30, 2025[98](index=98&type=chunk) [Interim Dividend and Closure of Register of Members](index=39&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board declared an interim dividend of HKD 20 cents per share for H1 2025, a significant increase, with share transfer registration suspended from September 9-11, 2025, to determine eligible shareholders - The Board resolved to declare an interim dividend of **HKD 20 cents** per share for the six months ended June 30, 2025 (H1 2024: **HKD 5 cents**)[99](index=99&type=chunk) - The interim dividend will be paid to shareholders whose names appear on the register of members on September 11, 2025, with payment expected on September 25, 2025[99](index=99&type=chunk) - The Company will suspend share transfer registration from September 9, 2025, to September 11, 2025, to determine shareholders entitled to the interim dividend[100](index=100&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor issued equity or sold treasury shares for cash during the review period - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including treasury shares)[101](index=101&type=chunk) - The Group did not issue any equity securities or sell treasury shares for cash during the review period (except for equity securities issued under share option schemes compliant with Chapter 17 of the Listing Rules)[101](index=101&type=chunk) [Review of Accounts](index=40&type=section&id=Review%20of%20Accounts) Deloitte Touche Tohmatsu, the independent auditor, reviewed the unaudited condensed consolidated interim financial information for H1 2025, adhering to HKSRE 2410 - The Company's independent auditor, Deloitte Touche Tohmatsu, has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[102](index=102&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[102](index=102&type=chunk) [Events After the Reporting Period](index=40&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events requiring disclosure occurred after June 30, 2025 - There were no significant events after June 30, 2025, requiring disclosure by the Company[103](index=103&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=40&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on HKEX and the Company's website, with the full interim report to follow, containing all Listing Rules disclosures - This interim results announcement has been published on the HKEX website www.hkexnews.hk and the Company's website www.smooreholdings.com[104](index=104&type=chunk) - The interim report for the six months ended June 30, 2025, containing all information required to be disclosed by the Listing Rules, will be published on the HKEX and the Company's website in due course[104](index=104&type=chunk)

Group 1 - The core point of the article highlights the significant stock performance of Smoore International, which saw an increase of 8.64% on August 20, reaching a price of 22.12 HKD per share with a trading volume of 8.82 billion HKD [1] - Smoore International is recognized as a leading provider of atomization technology solutions globally, employing nearly 20,000 people and operating 9 research institutes worldwide with a research and development team exceeding 1,000 [1] - As of June 30, 2021, the company has filed a total of 2,612 patents and 566 trademarks globally, with 1,272 patents and 360 trademarks granted, alongside various national and international certifications and honors [1] Group 2 - For the fiscal year ending 2024, Smoore International reported total revenue of 11.799 billion CNY and a net profit of 1.303 billion CNY [2] - On August 20, Smoore International disclosed its mid-year report for the fiscal year 2025 [3]

Group 1 - The core viewpoint of the news highlights the recent performance of SMOORE International, noting a significant increase in its stock price and a comparison of its financial metrics against industry averages [1] - As of August 20, the Hang Seng Index rose by 0.17%, while SMOORE International's stock price increased by 8.45%, with a trading volume of 42.14 million shares and a turnover of 894 million HKD [1] - Over the past month, SMOORE International has experienced a cumulative decline of 7.87%, but it has achieved a year-to-date increase of 53.48%, outperforming the Hang Seng Index by 25.24% [1] Group 2 - Financial data for SMOORE International shows total revenue of 11.799 billion CNY for the year ending December 31, 2024, representing a year-on-year growth of 5.31%, while net profit attributable to shareholders decreased by 20.78% to 1.303 billion CNY [1] - The company's gross profit margin stands at 37.39%, and its debt-to-asset ratio is 20.79% [1] - Currently, there are no investment rating recommendations from institutions for SMOORE International [1] Group 3 - The household appliances and goods industry has an average price-to-earnings (P/E) ratio of 13.31 times, with a median of 2.97 times, while SMOORE International's P/E ratio is significantly higher at 89.56 times, ranking 43rd in the industry [1] - Comparatively, other companies in the industry have much lower P/E ratios, such as Lian International at 1.58 times and Kai Fu Shan Group at 2.3 times [1] Group 4 - SMOORE International, established in 2009, is a global leader in providing atomization technology solutions, with its own brand VAPORESSO and three technology brands: FEELM, CCELL, and METEX [2] - The company is headquartered in Bao'an District, Shenzhen, and employs nearly 20,000 people [2] - SMOORE places a strong emphasis on technological innovation and research and development, with nine research institutes globally and a research team comprising over 1,000 personnel [2]

Group 1 - The stock of Smoore International (06969) increased by over 6%, currently up 6.29% at HKD 21.64, with a trading volume of HKD 501 million [1] - Smoore International is holding a board meeting today to consider and approve the interim results for the six months ending June 30, 2025, and to declare an interim dividend if applicable [1] - The company anticipates revenue of RMB 6.013 billion for the first half of 2025, representing an 18% year-on-year growth; however, it expects a pre-tax profit of approximately RMB 629 million to RMB 769 million, a decrease of 5% to 23% year-on-year [1] Group 2 - The decline in profit is primarily attributed to an increase of RMB 176 million in non-cash share-based payment expenses, as well as significant growth in distribution, sales expenses, and legal service costs [1] - UBS noted that the preliminary results indicate an 18% year-on-year revenue growth for the first half, driven by a recovery in the vape business, with increased shipments ahead of U.S. tariffs [1] - The company expects a year-on-year decline in net profit of 21% to 35% in the second half, mainly due to high expenses related to stock options granted in the fourth quarter and S&D [1] Group 3 - Zheshang Securities believes that British American Tobacco is heavily investing in resources and marketing for Glo Hilo, with positive trial feedback in Japan and early deployments in some European countries, indicating a favorable outlook for future volume growth [1] - Additionally, the growth of oral tobacco remains strong, and the regulation of illegal vaping products is expected to lead to a recovery, maintaining a positive outlook for core supplier Smoore International [1]

Core Viewpoint - Smoore International (06969) shares rose over 6%, currently at HKD 21.64, with a trading volume of HKD 501 million, as the company prepares to discuss its mid-term performance and potential dividend distribution [1] Financial Performance - Smoore International anticipates a revenue of RMB 6.013 billion for the first half of 2025, representing an 18% year-on-year increase [1] - The company expects a pre-tax profit of approximately RMB 629 million to RMB 769 million, reflecting a decrease of 5% to 23% year-on-year, primarily due to increased non-cash share-based payment expenses of RMB 176 million, along with higher distribution, sales expenses, and legal service costs [1] Market Insights - UBS noted that the preliminary performance indicates an 18% year-on-year revenue growth, attributed to the recovery of the vape business, with increased shipments ahead of U.S. tariffs [1] - The company projects a 21% to 35% year-on-year decline in net profit for the second half, mainly due to high expenditures related to stock options and S&D in Q4 [1] - Zheshang Securities highlighted that British American Tobacco is heavily investing in resources and marketing for Glo Hilo, with positive trial feedback in Japan and early deployments in some European countries, maintaining a positive outlook for Smoore International as a core supplier [1]

Core Viewpoint - The article highlights the accelerating growth of upgraded consumption, particularly in high-end sectors, with a focus on the rising demand for tobacco and alcohol products, especially electronic cigarettes [1] Group 1: Market Trends - The electronic cigarette sector has shown a continuous upward trend since mid-April, with leading company Smoore International's stock price increasing by 100% since the beginning of the year [1] - British American Tobacco (BAT) reported a 2.4% year-on-year increase in revenue from new tobacco products, reaching £1.651 billion, with adjusted gross profit rising by 6.8% to £1.006 billion [2] - The HNB (Heated Not Burned) segment of BAT achieved revenue of £440 million, a 0.8% increase, with sales volume growing by 1.6% to 10.1 billion units [2] Group 2: Company Performance - Smoore International's revenue for the first half of the year was 6.013 billion yuan, an 18% year-on-year increase, while pre-tax profit is expected to be between 629 million and 769 million yuan, reflecting a decrease of 5% to 23% [3] - The company has seen significant growth in its proprietary brand and enterprise client business, contributing to an increase in gross profit [3] - Smoore has established a METEX division to enhance its strategic layout in the HNB field, showcasing its technological capabilities and patent portfolio [4] Group 3: Future Outlook - The global HNB market is expected to continue growing, with significant potential in the U.S. market as regulations tighten on non-compliant products [6][7] - Smoore's ongoing investment in R&D, particularly in HNB and medical aerosol products, reached 390 million yuan, a 41.3% increase, indicating a strong commitment to this sector [6] - The collaboration with BAT on the Glo Hilo series is anticipated to enhance Smoore's position in the value chain, transitioning from a component supplier to a core technology partner [4][5]

Core Viewpoint - The article highlights the accelerating growth of upgraded consumption, particularly in high-end sectors, with a focus on the rising demand for tobacco and alcohol products, especially electronic cigarettes [1] Group 1: Market Trends - The electronic cigarette sector has shown a continuous upward trend since mid-April, with leading company Smoore International's stock price increasing by 100% since the beginning of the year [1] - British American Tobacco (BAT) reported a 2.4% year-on-year increase in revenue from new tobacco products, reaching £1.651 billion, with adjusted gross profit rising by 6.8% to £1.006 billion [2] - The HNB (Heated Not Burned) segment of BAT generated £440 million in revenue, reflecting a 0.8% year-on-year growth, with sales volume increasing by 1.6% to 10.1 billion units [2] Group 2: Company Performance - Smoore International's revenue for the first half of the year was 6.013 billion yuan, an 18% increase year-on-year, while pre-tax profit is expected to decrease by 5%-23% [3] - The company has established a strategic partnership with BAT, becoming a core supplier for the Glo Hilo product line, which has enhanced its market position [4] - Smoore has invested significantly in R&D, with a 6% year-on-year increase in R&D spending, and a notable 41.3% increase in investment for medical and beauty aerosol products [6] Group 3: Future Outlook - The global HNB market is expected to continue growing, with significant potential in the U.S. market as regulations tighten on non-compliant products [7] - Smoore's strategic focus on HNB technology and its partnerships with major clients like BAT position it well for future growth, despite short-term profit pressures [5][7] - The anticipated global rollout of innovative products like Glo Hilo is expected to further solidify Smoore's leading position in the new tobacco industry [7]

格隆汇8月8日丨思摩尔国际(06969.HK)宣布，公司将于2025年8月20日举行董事会会议，藉以（其中包 括）批准公司及其附属公司截至2025年6月30日止六个月的中期业绩和有关公告，以及考虑派发中期股 息（如有）。 ...

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.