港股消费ETF（159735）跟踪中证港股通消费主题指数，该指数选取港股通范围内流动性较好、市值较 大的50只消费主题相关股票组成指数样本，采用自由流通市值加权，以反映港股通内消费类股票的整体 表现。 财信证券指出，整体而言，今年"五一"假期旅游市场呈现全面复苏态势，我们认为主要受益于三大核心 驱动因素：一是"请4休11"拼假模式有效激活长线旅游需求；二是免签及离境退税等出入境便利化政策 持续释放红利；三是多元化文旅消费场景创新显著提升市场吸引力。在此带动下，居民出行半径显著扩 大，消费意愿持续提升。展望后市，随着扩内需政策持续加码，叠加消费信心逐步修复，旅游行业有望 延续复苏态势。 5月14日早盘，港股集体上涨，截至发稿，中证港股通消费主题指数涨1.08%。 相关ETF方面，截至发稿，港股消费ETF（159735）涨0.73%，换手率超1.88%。成分股中，思摩尔国 际涨超5%，零跑汽车涨超4%，万洲国际、波司登、美团-W等多股跟涨。 消息面来看，据经济参考报，多个部门近期强调促进商旅文体健多业态消费融合、各地拿出真金白银促 进融合新业态发展、企业商圈计划引入更多文化体育要素。记者关注到，多元业态融合创新正 ...

Group 1 - The stock of Smoore International (06969.HK) surged in the afternoon, currently up by 9.7% [1]

Group 1 - The core point of the article is that Smoore International experienced a significant short-term price increase, rising nearly 12% to HKD 15.9 [1]

Core Viewpoint - The strong performance of Philip Morris International's (PMI) Q1 2025 results indicates significant growth potential for the heated tobacco product (HNB) market, which is relevant for Smoore International as a key supplier in this sector [1][2] Group 1: Company Performance - Smoore International's stock rose over 3%, currently trading at 13 HKD with a transaction volume of 73.1681 million HKD [1] - PMI's Smoke-Free Products (SFP) revenue increased by 20.4% year-on-year, with gross profit rising by 33.1% and a gross margin exceeding 70%, up by 6.7 percentage points [1] - The shipment volume for PMI's products grew by 14.4% year-on-year, with HNB, oral tobacco, and e-cigarettes increasing by 12%, 27%, and 107% respectively [1] Group 2: Market Insights - The international tobacco giants are advancing their smoke-free strategies, with PMI's Q1 performance aligning with expectations for HNB growth, particularly in the U.S. market [2] - The HNB market has substantial growth potential, with regulatory advantages over vaping products, including lower appeal to youth and easier harm reduction validation [2] - The competitive landscape for HNB is favorable due to fewer participating manufacturers, and British American Tobacco's new Glo Hilo product shows significant improvements in performance and user experience compared to both leading products and previous generations [2]

Financial Performance - Total revenue for 2024 was RMB 11,798.662 million, representing a 5.3% increase from RMB 11,203.250 million in 2023[10] - Gross profit for 2024 was RMB 4,411.969 million, with a gross margin of 37.4%, down from 38.7% in 2023[10] - Net profit for 2024 decreased to RMB 1,303.255 million, reflecting a net profit margin of 11.0%, compared to 14.7% in 2023[10] - The company achieved revenue of approximately RMB 11,798.66 million in the review period, representing a year-on-year growth of about 5.3%[27] - The group's total revenue for the year ended December 31, 2024, was approximately RMB 11,798,662 thousand, representing a 5.3% increase from RMB 11,203,250 thousand in 2023[72] - The gross profit for the review period was approximately RMB 4,411,969 thousand, a 1.6% increase from RMB 4,340,911 thousand in 2023, with a gross margin decrease from 38.7% to 37.4%[73] Asset Management - The company reported a significant increase in non-current assets, reaching RMB 10,807.950 million in 2024, up from RMB 5,937.532 million in 2023[10] - Current assets decreased to RMB 16,846.428 million in 2024 from RMB 19,570.752 million in 2023, while current liabilities increased to RMB 5,259.365 million[10] - The asset-liability ratio increased to 20.8% in 2024 from 16.1% in 2023, indicating a higher proportion of liabilities relative to total assets[12] - As of December 31, 2024, the group's current assets net value was approximately RMB 11,587,063 thousand, down from RMB 16,004,419 thousand in 2023[86] - The group's current ratio as of December 31, 2024, was approximately 320.3%, a decrease from 548.8% in 2023[87] - The asset-liability ratio as of December 31, 2024, was approximately 26.2%, compared to 19.1% in 2023[90] Dividend and Shareholder Information - The company plans to declare a final dividend of HKD 0.05 per ordinary share for the year ended December 31, 2024[11] - The board has proposed a final dividend of HKD 0.05 per ordinary share for the year ending December 31, 2024, subject to approval at the upcoming annual general meeting[166] - The company's distributable reserves as of December 31, 2024, amount to RMB 7,047.7 million[161] Business Segments and Growth - The electronic vaporization segment showed positive growth due to increased regulatory enforcement against non-compliant products, leading to a shift in consumer demand towards compliant products[14] - The company successfully launched new business lines in heated non-combustible products and aerosol medical and beauty products, contributing to overall business diversification[14] - In the heating non-combustion product sector, the company plans to support strategic clients in launching products in more markets, focusing on user feedback for continuous product iteration[20] - The company successfully launched the "Lan Zhi" brand in the aerosol beauty business, which has gained recognition through online promotions and offline channels, achieving impressive sales during major marketing events[16] - The company anticipates that 2025 will be a critical year for the second growth curve, with plans to expand into harm reduction products and strengthen its competitive edge in core businesses[21] - The group launched multiple new product series in overseas markets across various segments, including electronic vaporization and medical vaporization, enhancing R&D efficiency through scientific classification management[29] Research and Development - The company is committed to increasing R&D investment, particularly in aerosol medical and heating non-combustible products, which have shown satisfactory breakthroughs during the review period[16] - Research and development expenditure for the period was approximately RMB 1,572,313 thousand, an increase of 6.0% year-on-year, accounting for about 13.3% of total revenue[48] - R&D expenditure for electronic nicotine delivery systems was RMB 1,034,668 thousand, accounting for 65.8% of total R&D spending, with a slight increase of 0.1% year-on-year[52] - R&D expenditure for medical and beauty aerosol products increased by 41.3% year-on-year to RMB 392,180 thousand, accounting for 24.9% of total R&D spending[52] - The company filed a total of 1,558 new patent applications globally during the period, including 893 invention patents, bringing the cumulative total to 9,253 patents[51] Market and Regulatory Environment - The group achieved a revenue contribution of approximately 37.4% from the U.S. market during the review period, with significant legal and regulatory developments impacting the electronic nicotine delivery systems (ENDS) products[33] - The FDA has taken action on over 99% of PMTA submissions, with ongoing legal challenges affecting several ENDS products[33] - The UK has not introduced any significant laws or regulations related to electronic cigarettes and vaping devices as of December 31, 2024, contributing 25.5% to revenue[34] - In the EU, countries with flavor restrictions include Finland, Estonia, Hungary, and others, with a revenue contribution of 7.9%[34] - Hong Kong has proposed a complete ban on alternative smoking products, which is expected to impact 32.8% of revenue by December 31, 2024[36] - The mainland China market's revenue contribution is approximately 2.2%, with new regulations being implemented in July-August 2024[36] Corporate Governance - The board consists of eight directors, including three independent non-executive directors, ensuring sufficient checks and balances within the board[109] - The company has adopted the corporate governance code and complied with all provisions except for the separation of the roles of chairman and CEO, which are held by the same individual[108] - The independent non-executive directors reviewed and confirmed that the related party transactions were conducted on fair and reasonable terms[105] - The company has established a clear process for the appointment and re-election of directors, with terms set at three years[115] - The company has implemented an anti-corruption policy to prevent bribery and corruption within its operations[130] Employee and Gender Diversity - Overall employee gender ratio is 48.14% female (8,939) and 51.86% male (9,631) across the company[124] - The company has appointed one female executive director and one female non-executive director as of December 31, 2024[122] - The board consists of 25% female members (2 out of 8) and 75% male members (6 out of 8) as of December 31, 2024[124] - The company emphasizes gender diversity in recruitment and selection processes at all levels[122] Risk Management - The company’s risk management and internal control systems aim to manage operational efficiency and ensure compliance with relevant laws and regulations[142] - The Board has confirmed the effectiveness of the risk management and internal control systems as of December 31, 2024[144] - The company's overall risk management process is integrated into daily operations, with management responsible for identifying and responding to risks[144] Stock Options and Incentives - The company has granted a total of 129,524,700 stock options, with 98,158,700 options currently exercisable[193] - The share incentive plan aims to recognize and reward contributions from eligible participants to the group's growth and development, while also attracting suitable personnel[195] - The maximum number of shares that can be held under the plan at any time is capped at 2% of the total issued shares (excluding treasury shares)[198] - The total number of shares issued to each eligible participant under the plan within any 12-month period cannot exceed 1% of the total issued shares (excluding treasury shares)[200]

Summary of Smoore International Conference Call Company Overview - **Company**: Smoore International - **Fiscal Year**: 2024 - **Revenue**: 11.8 billion CNY, a year-on-year increase of 5.3% [3] - **Gross Margin**: 37.4%, down from 38.7% in 2023 [3] Key Points Financial Performance - **Gross Margin Decline**: Slight decrease attributed to rapid growth in low-margin ODM business, while self-branded business share is expected to support future margin growth [2][3] - **Sales Expenses**: Increased significantly to 919 million CNY, primarily for overseas channels and beauty business expansion in China [2][3] - **Net Profit**: Pre-tax profit decreased by 14.5% to 1.65 billion CNY due to increased sales and tax expenses [3] Market Dynamics - **European Market**: Ban on disposable e-cigarettes in several countries is expected to drive the development of refillable products [4] - **US Market**: Stable performance of closed products, but a 2.4% year-on-year decline due to customer payment capacity issues [4] - **Chinese Market**: Low base but a 25% year-on-year growth, with limited short-term expectations [4] Business Developments - **Collaboration in Medical Field**: Progress in nebulized medical devices for pulmonary hypertension treatment, with self-developed drug combination products expected to launch by late 2020 or early 2021 [5] - **ECS Business Growth**: Anticipated significant development phase in ECS (Electronic Cigarette Supply Chain) by 2025, with increasing revenue and profit contributions [6] Regulatory Environment - **US FDA Regulations**: Strict regulations impacting HNB (Heated Not Burned) market; first-generation products approved, while others require PMTA approval [12] - **Compliance Opportunities**: Stricter enforcement against non-compliant products in the US provides opportunities for compliant customers [19] Strategic Responses - **Differentiation Strategy**: To counteract profit pressure from the trend towards larger pod products, Smoore is launching innovative products in the US and Europe and empowering local distributors [8] - **Investment in Low-Risk Assets**: Growth in non-current assets due to increased fixed assets and adjustments in financial product allocations [10] Future Outlook - **2025 Revenue Growth**: Expected high single-digit growth driven by HNB products entering more markets and continued growth in self-branded and ODM businesses [23][24] - **Profitability Expectations**: Anticipated stable profit margins despite increased R&D investments and long-term incentive plan amortization [26] Additional Insights - **Market Share Gains**: Smoore's self-branded products have outpaced industry growth due to increased market share and technological advantages [9] - **Impact of Tariffs**: The 35% tariff on Chinese products has a minimal impact due to preemptive establishment of Southeast Asian production bases [30] This summary encapsulates the key insights from the conference call, highlighting Smoore International's financial performance, market dynamics, strategic initiatives, and future outlook.

Financial Data and Key Metrics Changes - In 2024, revenue was RMB 13.4 billion, up 5.3% year on year, with a better growth rate in the second half of the year compared to the first half [32] - Gross margin decreased to 37.4% from 38.7% in 2023, attributed to lower gross margin in ODM yield growth [33] - Profit before tax was RMB 1.655 billion, down 14.5%, while after-tax profit decreased by 4.8% [36] - Comprehensive income for the year was RMB 1.416 billion, with earnings per share at RMB 21.42 and a final dividend of RMB 5, resulting in a payout ratio of 40.2% [38] Business Line Data and Key Metrics Changes - Self-branded business revenue was RMB 2.48 billion, increasing its share of total revenue from 16.5% in 2023 to 21% in 2024 [39] - ODM business revenue was RMB 9.32 billion, accounting for 70% of total revenue, with a slight decline of 0.3% year on year [40] - The self-branded business saw a 30% growth in the first half of the year but only 13.3% in the second half due to a higher base [41] Market Data and Key Metrics Changes - In the U.S. market, revenue was RMB 402 million, with significant contributions from Europe and other overseas markets [42] - The China market generated RMB 30 million in revenue, primarily from beauty atomization products launched in the first half of the year [43] - ODM business in Europe saw a slight increase of 0.3%, while the U.S. market experienced a small decline of 2.4% due to cash flow pressures faced by some customers [46] Company Strategy and Development Direction - The company aims to solidify its position in the atomization industry, focusing on e-cigarettes, H&B, beauty, inhalation therapy, and special purpose atomization [20][22] - The management emphasizes the importance of R&D and technology as the main engine for development, with a commitment to innovation and long-term operation [24][25] - The company is optimistic about the future, expecting growth in various segments, particularly in H&B and beauty optimization products [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about growth amidst stability in the e-cigarette market, with expectations for a turning point in 2025 [18][21] - The company is focused on enhancing management quality and productivity to prepare for future high-speed growth [30] - The management highlighted the importance of compliance and adapting to regulatory changes in key markets like the U.S. and Europe [67][116] Other Important Information - The company has invested significantly in R&D, with expenses increasing from RMB 1.48 billion to RMB 1.57 billion in 2024 [35] - The beauty atomization product, Moyo, launched in 2024, has received positive feedback and is expected to perform better in 2025 [75] - The company is exploring new markets and product categories, including inhalation therapy and beauty atomization, to diversify its offerings [54][75] Q&A Session Summary Question: What are the considerations behind the stock incentive plan linked to market cap? - The management emphasized the alignment of the incentive plan with shareholder interests and the confidence in achieving the set market cap goals [81][83] Question: How is customer feedback on new HMB products and their global launch progress? - The management reported positive feedback from trial sales, highlighting improvements in convenience and flavor, with plans for a proactive global rollout [92][95][96] Question: How is the company adapting to changes in consumer behavior and regulations in Europe? - The management noted a shift towards pod-based and open system products, with a focus on compliance and product innovation to meet market demands [99][103] Question: What is the expected timeline for H&B product development and market launch? - The management indicated that the R&D process for H&B products took ten years, and they are now focused on empowering customers to expedite market entry [106][108] Question: What is the impact of new regulations on product pricing and profits in Europe? - The management expressed optimism about stable growth in Europe, driven by compliance and product iteration, which is expected to enhance revenue and profits [116]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 11,798,662 thousand, representing a year-on-year growth of approximately 5.3%[6] - The gross profit for the same period was RMB 4,411,969 thousand, with a gross margin of 37.4%[4] - The company’s net profit for the fiscal year was RMB 1,303,255 thousand, a decrease from RMB 1,645,090 thousand in the previous year[4] - The comprehensive income for the year was approximately RMB 1,416,913 thousand, a decrease of about 9.5% from RMB 1,566,470 thousand in 2023, primarily due to increased sales and R&D expenses[49] - The group reported a segment profit of RMB 1,640,180 thousand for 2024, down from RMB 1,949,597 thousand in 2023, reflecting a decrease of about 15.9%[113] - Basic earnings per share for 2024 were RMB 21.42, down from RMB 27.01 in 2023[95] Revenue Breakdown - Revenue from the proprietary brand business is approximately RMB 2,475,033 thousand, a year-on-year increase of about 34.0%, accounting for about 21.0% of total revenue[16] - Revenue from the enterprise customer business is approximately RMB 9,323,629 thousand, a slight decline of about 0.3%, accounting for about 79.0% of total revenue[16] - In the U.S. market, revenue from enterprise customers is approximately RMB 3,988,170 thousand, a decline of about 2.4%, accounting for about 33.8% of total revenue[21] - Revenue from the Chinese market was approximately RMB 238,751 thousand, representing a year-on-year growth of about 25.1%[24] - The group’s revenue from major customer A was RMB 4,732,568 thousand in 2024, up from RMB 4,582,362 thousand in 2023, contributing over 10% to total revenue[116] Market Position and Share - The company maintained a market share of approximately 13.1% in the global electronic vaporization equipment market for 2024, down from 13.7% in 2023[11] - The company’s proprietary brand "VAPORESSO" has further increased its market share in the open product segment, becoming a leading brand in major global markets[17] - The proprietary brand business in the U.S. market achieved revenue of approximately RMB 424,289 thousand, a year-on-year increase of about 14.0%[17] Research and Development - Research and development expenditure for the review period was approximately RMB 1,572,313 thousand, an increase of about 6.0% from the previous year, accounting for approximately 13.3% of revenue[25] - The company achieved significant breakthroughs in research and development for its heating-not-burning and medical vaporization businesses during the review period[8] - The company plans to enhance its R&D focus on heated tobacco products and aerosol medical products as key directions for 2025[44] Operational Efficiency - The company achieved significant progress in production operations, enhancing manufacturing competitiveness through collaboration across teams and optimizing production processes[35] - The group aims to enhance manufacturing competitiveness and optimize production processes, with a focus on resource integration and cost reduction[47] Expenses and Costs - Distribution and selling expenses increased by approximately 74.7% to about RMB 919,552 thousand, representing about 7.8% of revenue, driven by increased marketing investments in global operations and new product launches in the Chinese market[60] - Administrative expenses rose by approximately 5.4% to about RMB 914,109 thousand, maintaining a stable percentage of about 7.7% of revenue[63] - R&D expenses grew by approximately 6.0% to about RMB 1,572,313 thousand, accounting for about 13.3% of revenue, with significant investments in the fields of atomization medical and heated non-combustible products[66] Future Outlook - The global electronic vaporization product market is projected to reach approximately $91.42 billion by 2029, with a compound annual growth rate (CAGR) of about 7.4% from 2024 to 2029[37] - The global heated tobacco market is expected to reach around $66.86 billion by 2029, with a CAGR of approximately 10.1% from 2024 to 2029[39] - The company is committed to building a leading global vapor technology platform, focusing on electronic vaporization, heated non-combustible products, and medical vaporization solutions[36] Corporate Governance - The company maintained a governance structure that complies with the Hong Kong Stock Exchange's corporate governance code, with a board comprising eight directors, including three independent non-executive directors[143] - The board of directors is committed to ensuring transparency and accountability to all shareholders, with regular reviews of governance effectiveness[145] Shareholder Communication - The company has established a shareholder communication policy to ensure effective communication with shareholders[152] - The company encourages shareholders to express their opinions and suggestions during the annual general meeting[150]

Key Points Company Overview - **Company Name**: SMOORE - **Established**: 2009 - **Industry**: Physical Vaporization Technology Solutions - **Revenue**: 5 billion CNY (50 billion RMB) in H1 2024, down 1.7% - **Net Profit**: 680 million CNY (6.8 billion RMB) in H1 2024, down 4.8% [1] Business Segments - **2B Business**: 78% of revenue, providing components and design & manufacturing services for international tobacco companies like British American Tobacco, Japan Tobacco, and Philip Morris International [2] - **2C Business**: 22% of revenue, selling open system vaporizers, special purpose vaporizers, and free brand products [2] Industry and Market Dynamics - **Policy Changes**: The industry has been affected by policy changes in the past few years, but policy uncertainty has decreased [2] - **Domestic vs. International Revenue**: Domestic revenue has decreased to a small percentage, with the majority of revenue coming from the US and Europe [2] - **Product Categories**: Four main categories: disposable e-cigarettes, reusable e-cigarettes, open system vaporizers, and heat not burn (HNB) products [2] Regulatory Environment - **China**: Policy is currently aimed at driving out non-compliant companies and products, focusing on market compliance [3] - **Global Enforcement**: Many countries are increasingly cracking down on non-compliant products [3] - **US PMTA**: The process is lengthy, strict, and costly [3] - **EU GDP**: Easier process after providing specific content reports [3] Market Trends - **Shift to Disposable Products**: The shift to disposable products has led to increased regulation and potential bans in some regions [4] - **Profit Margins**: Disposable products have a lower profit margin (18%), while reusable products have a higher margin (40%) [4] - **Japanese HNB Market**: Expected to grow in 2025 due to patent settlement [5] - **Market Share**: Flyco International's iQOO holds a 70% market share in the HNB market [5] Technology and Innovation - **Patents**: Over 3,800 patents applied for in 2023, with significant R&D investment [6] - **Ceramic Core Technology**: Leading in the market, providing a deep technical barrier [6] - **Product Innovation**: Continuous innovation in open system vaporizers and HNB products [6] Financial Projections - **Revenue Projections**: 14 billion, 17 billion, and 24 billion RMB for 2024, 2025, and 2026 respectively [7] Risks - **Regulatory Risks**: Industry policy and regulatory changes [7] - **Competition**: Risk of technological breakthroughs by competitors [7] - **Product Approval**: Risk of product authorization failure [7] - **Exchange Rate**: Currency risk [7] - **Product Replacement**: Risk of product substitution [7] - **New Business**: Risk of new business development not meeting expectations [7]

Key Points Company and Industry Overview 1. **Company Overview**: The company in focus is engaged in the traditional tobacco industry, with a significant presence in the H&B (Heat Not Burn) segment. The company also has a growing interest in the H&B market and has been actively developing new products in this area. 2. **Industry Overview**: The industry is currently experiencing regulatory changes, particularly in the H&B segment, with a trend towards increased regulation and compliance. The H&B market is expected to grow significantly due to its potential as a substitute for traditional cigarettes. Key Points on Company's Strategy and Performance 3. **Board Chairman's Equity Incentive**: The board chairman has been granted a 61 million share equity incentive with a performance target of achieving an average market capitalization of HKD 30 billion, 40 billion, and 50 billion over a 25 to 30-year period, corresponding to 30%, 60%, and 100% of the equity incentive, respectively. This demonstrates the management's confidence in the company's future prospects. 4. **Valuation**: The company is currently undervalued, with a market capitalization of around HKD 60 billion and net cash of approximately HKD 10-15 billion. The company has also been actively repurchasing shares. 5. **Market Trends**: The H&B segment has faced regulatory challenges in both China and overseas markets, leading to a significant decline in revenue and profit expectations. However, the company expects a recovery in this segment as regulatory trends become clearer and compliance becomes more important. 6. **H&B Market**: The H&B market is expected to grow significantly, with a global market size of approximately USD 40 billion and a historical growth rate of double-digit percentages. The company has a strong position in this market, with a 15% share and a strong competitive advantage due to its early entry and technological barriers. Key Points on H&B Segment 7. **H&B Market Size and Growth**: The global H&B market is expected to grow significantly, with a market size of approximately USD 40 billion and a historical growth rate of double-digit percentages. The company has a strong position in this market, with a 15% share and a strong competitive advantage due to its early entry and technological barriers. 8. **H&B Product Advantages**: The company's H&B products have several advantages, including faster charging speed, higher heating efficiency, and a more portable and refined design compared to competitors. 9. **Regulatory Changes**: Regulatory changes in the H&B market are expected to become clearer and compliance will become more important. The company expects a recovery in the H&B segment as regulatory trends become clearer and compliance becomes more important. Key Points on Future Growth 10. **New Growth Drivers**: The company is exploring new growth drivers, including medical and beauty H&B products, as well as free brand APV. These areas are expected to contribute significantly to the company's future growth. 11. **Research and Development**: The company has been investing heavily in research and development, with a focus on traditional tobacco products and H&B products. This investment is expected to contribute to the company's long-term competitiveness and growth.