Financial Performance - Smoore reported a revenue of approximately 1.2 billion HKD for the fiscal year 2022, representing a year-over-year increase of 15%[2]. - The company achieved a net profit margin of 25%, with net profit reaching around 300 million HKD, up from 240 million HKD in the previous year[2]. - Total revenue for the year ended December 31, 2022, was RMB 12,144,980 thousand, a decrease of 11.7% compared to RMB 13,755,242 thousand in 2021[5]. - Gross profit for 2022 was RMB 5,259,632 thousand, resulting in a gross margin of 43.3%, down from 53.6% in 2021[5][7]. - Net profit for the year was RMB 2,510,316 thousand, a decline of 52.5% from RMB 5,286,967 thousand in 2021[5]. - Adjusted net profit for 2022 was RMB 2,575,122 thousand, reflecting a decrease of 52.7% compared to RMB 5,442,613 thousand in 2021[5][6]. - The adjusted net profit margin for 2022 was 21.2%, down from 39.6% in 2021[7]. - Total comprehensive income for the year was RMB 2,494,934 thousand, down 52.8% from RMB 5,286,991 thousand in 2021[77]. Market Expansion and Strategy - Smoore plans to expand its market presence in Europe and North America, targeting a 30% increase in market share by 2025[2]. - Future guidance estimates revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion[2]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of 200 million HKD allocated for this purpose[2]. - The company aims to reduce production costs by 5% through operational efficiencies and supply chain optimization[2]. - The company is focusing on expanding its product line in the special-purpose vaporization products sector to increase market share[17]. Research and Development - The company is investing 100 million HKD in R&D for new product development, focusing on innovative vaping technologies[2]. - The company increased R&D investment, achieving significant breakthroughs in core technologies, particularly in heated tobacco products and new heating element technologies[12]. - R&D expenditure totaled RMB 1,372,258 thousand, an increase of 104.6% year-on-year, representing 11.3% of revenue compared to 4.9% the previous year[45]. - The company expanded its R&D team by over 320 personnel, bringing the total to over 1,500, which is more than 40% of the total non-production staff[43]. - The company launched a new generation ceramic core technology platform, FEELM Max, which outperforms competitors in vaporization efficiency and user experience[44]. Regulatory Environment - The company is actively monitoring ongoing legal challenges related to MDOs issued by the FDA, with some being temporarily stayed by federal courts[20]. - The company is preparing for compliance with the new electronic cigarette management regulations that took effect on May 1, 2022[23]. - The company has obtained tobacco monopoly licenses and supported brand clients in submitting electronic vapor product technical reviews compliant with national standards as of March 11, 2022[23]. - The national standard for electronic cigarettes (GB 41700-2022) was officially released on April 8, 2022, and will be implemented starting October 1, 2022[25]. Corporate Governance - The company adhered to the corporate governance code and complied with all provisions, except for a deviation from the code's C.2.1[105]. - The board of directors is composed of a balanced mix of executive and independent non-executive directors, ensuring strong independence and effective judgment[106]. - The company has established an Environmental, Social, and Governance (ESG) committee as of December 28, 2022[114]. - The board has committed to holding at least four regular board meetings annually, approximately once per quarter[114]. Employee and Management - The group has over 14,787 employees in mainland China, 9 in Hong Kong, and 1,577 overseas as of December 31, 2022[87]. - The group established the "Simor Academy" for continuous professional and management training for employees, including a 6-month onboarding program for new graduates[88]. - The company has a strong management team with over 10 years of experience in the electronic vaporization industry, led by the CEO who has been instrumental in the company's strategic direction[194]. Shareholder Engagement and Dividends - The company plans to declare a final dividend of HKD 0.08 per ordinary share for the year ended December 31, 2022[6]. - The annual general meeting is scheduled for May 25, 2023, to approve the proposed dividend and other matters[153]. - The company’s board believes that the share buyback plan reflects confidence in the long-term strategy and growth of the company[155]. Financial Health and Assets - Total assets as of December 31, 2022, amounted to RMB 24,359,317 thousand, an increase from RMB 22,871,306 thousand in 2021[5]. - Current assets reached RMB 19,198,773 thousand, up from RMB 17,985,772 thousand in 2021, with a current ratio of 534.9%[5][7]. - The debt-to-asset ratio for 2022 was 16.3%, slightly up from 15.8% in 2021, indicating stable financial leverage[7]. Sales and Revenue Trends - Revenue from sales to overseas corporate clients increased by approximately 6.5%, while revenue from sales to overseas retail clients rose by 26.2% compared to the previous year[34]. - In the US market, sales revenue from electronic vapor products decreased by 22.7% year-over-year, accounting for 31.1% of total revenue, down from 35.5%[38]. - Revenue from disposable electronic vapor products reached RMB 1,931,028 thousand, a growth of 1,919.2% compared to RMB 95,634 thousand in 2021[41]. - Revenue from retail customer products grew by 26.2% year-over-year, totaling RMB 1,465,608 thousand, with the second half of the year showing a 28.3% increase[42].
思摩尔国际(06969) - 2022 - 年度财报