Core Viewpoint - Smoore International (06969.HK) experienced a significant stock price drop of 9.95%, closing at HKD 17.92 per share, with a market capitalization of HKD 110.9 billion and a trading volume of HKD 1.28 billion on the same day [2] Group 1: Shareholder Actions - EVE Lithium Energy (300014) plans to reduce its stake in Smoore International by up to 3.5% within a year through block trades and centralized bidding, involving approximately 216 million shares [4] - EVE Lithium currently holds 30.73% of Smoore's total share capital, and after the reduction, it will no longer be the controlling shareholder [4] - The market value of EVE Lithium's stake in Smoore International is approximately HKD 34.08 billion, with the planned reduction valued at HKD 3.882 billion [4] Group 2: Historical Performance and Financials - EVE Lithium has invested in Smoore International for over ten years, acquiring 50.1% of its predecessor in 2014 for HKD 439 million [5] - Smoore International went public in July 2020 at an issue price of HKD 12.4 per share and has since distributed nine cash dividends, yielding EVE Lithium nearly HKD 2 billion [5] - Smoore's revenue has declined from HKD 137.55 billion in 2021 to an estimated HKD 117.99 billion in 2024, with net profits dropping from HKD 52.87 billion to HKD 13.03 billion over the same period [5] Group 3: Market Opportunities and Challenges - Smoore International has struggled to capitalize on the disposable e-cigarette market but may benefit from recent bans on disposable e-cigarettes in major sales countries [5] - The company has seen improvements in its ODM business for vaping products, with its own brand revenue increasing to 21% [6] - Smoore is collaborating with British American Tobacco on HNB products, with plans for a new product launch in mid-2025 [6] - The company is investing in the medical nebulization sector, with a 41.3% increase in R&D spending in this area, although current revenue from medical nebulization remains low at HKD 27 million [6]