Group 1 - The core point of the article is that Smoore International (06969) experienced a decline of over 4% in its stock price due to the announcement by the Ministry of Finance and the State Taxation Administration to cancel the export tax rebate for e-cigarette products starting from April 1, 2026, which will significantly impact profit margins [1] - The previous 13% tax rebate was crucial for companies to hedge costs and maintain international pricing advantages, and its removal means companies will have to bear the full VAT cost [1] - Zheshang Securities recently published a report indicating that the government is intensifying efforts to regulate illegal activities in the domestic e-cigarette production, sales, and export sectors, suggesting that the supply-side landscape of the industry will change [1] Group 2 - The report suggests that smaller illegal producers may be accelerated out of the market, which could benefit compliant companies like Smoore International, positioning it as a leading player in the industry [1]

Group 1 - The core point of the article highlights that Smoore International (06969) experienced a decline of over 4%, trading at HKD 11.18 with a transaction volume of HKD 172 million [1] - The Ministry of Finance and the State Taxation Administration announced that starting from April 1, 2026, the export tax rebate for electronic cigarette products will be canceled, which previously had a rebate rate of 13% [1] - The removal of the tax rebate means that companies will have to bear the full VAT cost, which will directly compress profit margins [1] Group 2 - Zheshang Securities (601878) released a report indicating that the government is intensifying efforts to regulate illegal activities in the domestic electronic cigarette production, sales, and export sectors [1] - The industry supply-side structure is expected to change, with illegal small workshops likely to be accelerated in their exit from the market [1] - As a compliant listed leader, Smoore International is expected to benefit from these regulatory changes [1]