Core Viewpoint - Smoore International, known as the "first stock of electronic cigarettes," is facing significant challenges, including a declining stock price and market value, attributed to regulatory pressures, stagnant profits despite revenue growth, and changing market sentiment [1][6][25] Financial Performance - In Q3 2025, Smoore's revenue reached 10.21 billion RMB, a year-on-year increase of 21.8%, with Q3 revenue hitting a record high of 4.197 billion RMB, growing over 27% year-on-year and quarter-on-quarter [4] - However, net profit for the first three quarters of 2025 was 809 million RMB, down 23.8% year-on-year, with a Q3 net profit of 317 million RMB, a decrease of 16.4% [4] - The company's net profit margin has plummeted from 38.44% in 2021 to 7.92% in the first three quarters of 2025 [4] Market Challenges - Smoore's revenue from mainland China dropped by 92.7% in 2023 due to stringent regulations, with its revenue share falling from approximately 18.5% to about 1.5% [6] - Increased sales and distribution expenses, which rose by 31.2% to 491 million RMB in the first half of 2025, have further pressured profitability [6] - The company's gross margin has decreased from 53.6% in 2021 to 37.3% in the first half of 2025, indicating a decline in the quality of revenue growth [7] Strategic Shift - Smoore is attempting to diversify its business by launching the "Lanzhi" beauty brand, which utilizes TPS (Transdermal Permeation System) technology, aiming to create a "second growth curve" [1][13] - The Lanzhi brand generated sales of 30.61 million RMB in the first half of 2025, but its contribution to overall revenue remains minimal [12][23] - The beauty market is seen as a high-margin opportunity, with Smoore hoping to replicate its electronic cigarette success in this new sector [13] Competitive Landscape - The beauty device market is highly competitive, with established international brands dominating the high-end segment and local brands capturing the mid-to-low end [16] - Lanzhi faces challenges such as low brand recognition, insufficient distribution channels, and competition from other beauty companies [16][24] - The effectiveness and safety of the TPS technology remain under scrutiny, with concerns about its ability to deliver active ingredients effectively and safely [18][19] Regulatory Environment - The regulatory landscape for beauty aerosol products is still evolving, with uncertainties regarding specific regulations for aerosol beauty technology [21] - Smoore's transition into the beauty sector may not provide immediate relief from its current profitability issues, as the Lanzhi brand's profitability may take up to two years to materialize [23][25]
思摩尔国际的电子烟“熄火”后，岚至的“美容故事”行不行？