Investment Rating - The investment rating for the company is "Buy" with a target price set for the next six months [6][14]. Core Insights - The company achieved a record high revenue of 41.97 billion yuan in Q3 2025, marking a 27.5% increase quarter-on-quarter and a 27.2% increase year-on-year. However, net profit for the same quarter was 3.17 billion yuan, reflecting a 16.4% year-on-year decline [1][2]. - The HNB (Heated Not Burned) business saw a significant increase in shipment volumes, contributing to the overall revenue growth. The company is also expanding its self-owned brand business and enhancing localized marketing efforts [2][5]. - The medical aerosol business has made a breakthrough with the submission of an ANDA application for Breo® Ellipta®, which, if approved, could provide a 180-day market exclusivity in the U.S. This product is expected to generate significant sales in the future [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported revenues of 102.10 billion yuan, a year-on-year increase of 21.8%. Adjusted net profit was 11.82 billion yuan, a slight increase of 0.1% year-on-year [1]. - In Q3 2025, the company achieved revenues of 41.97 billion yuan, with an adjusted net profit of 4.44 billion yuan, reflecting a 4.0% year-on-year increase [1][2]. Business Growth - The company’s HNB and electronic vaporization businesses both experienced growth, with strategic clients successfully launching new products in major global markets [2]. - The GloHilo product line is being introduced in Italy, Poland, and Serbia, aiming to reach 50 million adult consumers of smoke-free products by 2030 [3]. Future Outlook - The company is expected to see significant contributions from the HNB business starting in 2026, with adjusted net profit forecasts for 2025-2027 revised to 13.92 billion, 20.23 billion, and 27.59 billion yuan respectively [5].

Core Insights - The company reported a revenue of approximately RMB 4.197 billion for the quarter ending September 30, 2025, representing a year-on-year growth of 27.2% and a quarter-on-quarter growth of 27.5% [1] Business Segments - In the enterprise customer segment, both the heated non-combustion and electronic vaporization businesses achieved growth both year-on-year and quarter-on-quarter. The heated non-combustion business benefited from strategic clients launching new products in major global markets, leading to a significant increase in shipment volume. The electronic vaporization business saw growth due to strengthened regulation on non-compliant products, with the company supporting clients in launching new compliant products [1] - In the proprietary brand segment, the successful iteration of flagship series new products in the first half of the year expanded the consumer base. Increased localization operations and marketing investments contributed to healthy revenue growth [1] Financial Performance - The adjusted profit for the quarter was approximately RMB 444 million, reflecting a year-on-year increase of 4.0% and a quarter-on-quarter increase of 4.8%. The growth was attributed to increases in revenue and gross profit, a lower growth rate of operating expenses compared to revenue growth, and an increase in other income and gains [1]

Core Insights - Smoore International (06969) reported a record high revenue of approximately RMB 4.197 billion for the three months ending September 30, 2025, representing a year-on-year growth of about 27.2% and a quarter-on-quarter growth of approximately 27.5% [1] Group 1: Revenue Growth - The revenue growth was driven by satisfactory increases in both enterprise client business and self-owned brand business [1] - The heated non-combustible and electronic vaporization businesses recorded healthy growth both year-on-year and quarter-on-quarter [1] Group 2: Enterprise Client Business - The heated non-combustible business saw significant revenue growth due to the successful launch of new products in major global markets [1] - The electronic vaporization business maintained revenue growth as the company supported clients in launching new compliant products amid increasing regulatory scrutiny [1] Group 3: Self-Owned Brand Business - The flagship series of new products launched in the first half of the year successfully expanded the consumer base [1] - The company enhanced localized operations and increased marketing investments in key markets, leading to a healthy year-on-year revenue growth in the self-owned brand business [1] Group 4: Profitability - The adjusted profit for the period was approximately RMB 444 million, reflecting a year-on-year increase of about 4.0% and a quarter-on-quarter increase of approximately 4.8% [2] - The profit growth was attributed to revenue and gross profit increases, with the growth rates of distribution, sales, administrative, and R&D expenses being lower than revenue growth [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 （ 於開曼群島註冊成立的有限公司） （股份代號：6969） 財務更新 截至2025年9月30日止期間 本公告乃思摩爾國際控股有限公司（「本公司」）董事會（「董事會」））根據香港聯合交易所有限 公司證券上市規則第13.09條及香港法例第571章證券及期貨條例第XIVA部項下內幕消息條 文作出，依據於本公司及其附屬公司（ 統稱「本集團」）截至2025年9月30日止三個月（「本期 間」）未經審核的綜合管理賬目。 Smoore International Holdings Limited 思 摩 爾 國 際 控 股 有 限 公 司 惠 州 億 緯 鋰 能 股 份 有 限 公 司（「 億 緯 鋰 能 」）， 本 公 司 在 深 圳 證 券 交 易 所 上 市 的 控 股 股 東 之 一，根據深圳證券交易所創業板股票上市規則要求需披露季度財務報告。億緯鋰能的季度 財務報告中包含特定財務信息，這些財務信息被視為對本集 ...

Industry Overview - The tobacco industry is a unique consumer goods sector with a supply chain that spans agriculture, manufacturing, commerce, and retail [1] - The supply chain begins with the cultivation of tobacco leaves, which are primarily grown by farmers in specific regions under suitable climatic conditions [1] - The midstream segment involves the production of tobacco products such as cigarettes, cigars, and e-cigarettes, requiring high craftsmanship and quality control [1] - The downstream segment includes wholesale, logistics, and retail sales, with a highly concentrated distribution network in China [1] Market Dynamics - The tobacco industry is significantly influenced by policies, including production quotas, tax adjustments, and advertising restrictions, which can have profound effects on all segments of the supply chain [2] - The global trend towards smoking cessation and public health initiatives is prompting companies to accelerate their transformation efforts, exploring harm-reduction products and diversification strategies [2] - Despite the relatively stable demand due to the inelastic nature of tobacco consumption, long-term growth potential is constrained by smoking control policies and increasing health awareness [1][2] Investment Considerations - Investors should consider the policy environment, industry barriers, changes in consumer demand, and companies' innovation capabilities when evaluating the tobacco sector [2] - A comprehensive understanding of the entire supply chain is essential for rationally assessing the long-term value and potential risks of related assets [2]

Summary of Key Points from Conference Call Records Industry Overview - The conference call discusses the **vaping industry in the United States** and its regulatory environment, particularly focusing on the impact of flavor bans and compliance issues on market dynamics [1][4][5]. Core Insights and Arguments - Following the ban on fruit-flavored vaping products in the U.S., the market experienced a temporary decline, but disposable e-cigarettes have since dominated the market due to regulatory loopholes, capturing **80% of the market share** [1][4]. - The **illegal vaping market** grew from **$12.9 billion** in 2021 to **$21 billion** in 2024, marking a **63% increase**, while the compliant market shrank by **14%** to **$5.87 billion** [1][4][5]. - The U.S. government has been criticized for insufficient regulation of disposable e-cigarettes, which has led to a significant squeeze on compliant brands like British American Tobacco and G O, with Views experiencing a **5% decline** in 2024 [1][5]. - Starting in 2024, U.S. Customs has tightened regulations on e-cigarette imports, increasing costs and limiting the influx of illegal products, which is expected to improve the operating environment for compliant products [1][6]. - The FDA approved four menthol-flavored e-cigarettes in June 2024 and 20 ZYN nicotine pouches in January 2025, indicating a potential easing of restrictions on certain flavors, which could benefit compliant product sales [1][9]. Additional Important Content - China's exports of e-cigarettes to the U.S. totaled **$812 million** in May 2025, reflecting a **7.38%** month-over-month decline and a **19.52%** year-over-year decline [1][7]. - The European market has begun tightening regulations on disposable e-cigarettes and certain flavors since 2024, which primarily affects domestic white-label companies while benefiting international brands [1][10]. - The global new tobacco industry is transitioning into a healthier development phase after experiencing regulatory restrictions, with heated tobacco and nicotine pouch products expected to see significant growth in the coming years [2][12]. - The domestic market in China has stabilized since the implementation of the e-cigarette law in 2022, allowing only traditional flavor sales, with a focus on heated tobacco and nicotine products as key growth areas [2][13].

Summary of China Tobacco Hong Kong Conference Call Company Overview - **Company**: China Tobacco Hong Kong - **Industry**: Tobacco Key Financial Highlights - **2024 Revenue**: HKD 13 billion, a 10% year-on-year increase [2][3] - **Gross Profit**: Increased by 26.6% to nearly HKD 1.4 billion [2][3] - **Earnings Per Share (EPS)**: Grew by 42% [2][3] - **Dividend**: Planned increase in dividend to HKD 0.46 per share, with an increase in mid-term dividend frequency [2][4][8] Business Performance and Strategy - **Post-Pandemic Export Performance**: Strong recovery in cigarette exports, particularly in Thailand, Singapore, Hong Kong, Macau, and duty-free shops in mainland China [2][5] - **Duty-Free Market Expansion**: Ongoing efforts to expand the duty-free cigar market and increase the self-operated export ratio, currently at approximately 0.5% [2][5] - **Core Business Segments**: - Bulk tobacco products (import and export) - Cigarette exports (traditional Chinese brands) - New tobacco products (limited to heated non-combustible products) [3] Regional Operations - **Brazil Operations**: Managed by China Tobacco Brazil, covering the entire supply chain from planting to sales, with 111,000 tons of tobacco imported into China in 2024, including Brazilian imports [2][6] - **Impact of US-China Tariff Policies**: Limited impact on the company, with only the tobacco import business affected; plans to import approximately 20,000 tons of tobacco from the US [2][9] Supply Chain and Quality Assurance - **Cigar Leaf Procurement**: Primarily sourced from the Dominican Republic and Zambia, with a focus on ensuring quality stability for the existing 20,000 tons of cigar leaves [2][10][11] - **Quality Control**: Current suppliers have not met quality expectations, leading to no increase in procurement volume [2][10] Market Outlook - **Tobacco Industry Growth**: Expected compound annual growth rate (CAGR) of approximately 6% over the next 3-5 years, driven by domestic demand and international market expansion [3][27] - **Long-term Growth Logic**: Based on domestic cigarette formulation needs and the cost-effectiveness of foreign tobacco [28] Challenges and Risks - **Geopolitical Factors**: Uncertainties in US tobacco exports due to geopolitical issues, with over 10,000 tons of planned exports still under internal discussion [25][26] - **Market Volatility**: Tobacco prices subject to cyclical fluctuations and climate impacts, with a stable growth expectation despite potential short-term disruptions [24] Future Developments - **Expansion Plans**: Continued focus on expanding overseas customer base and enhancing supply chain resilience [7][13] - **Innovation in Products**: Development of proprietary technologies for heated non-combustible products, with positive feedback on domestic innovations [13][15] Conclusion China Tobacco Hong Kong is positioned for steady growth with a strong financial performance and strategic expansion plans, while navigating challenges in the geopolitical landscape and ensuring quality in its supply chain.

Summary of the Conference Call on the Tobacco Industry and Philip Morris International Industry Overview - The traditional tobacco industry has experienced significant changes, particularly in the U.S. market, where per capita smoking volume grew at a compound annual growth rate (CAGR) of 8% from 1900 to 1960, but saw a 20% decline from 1975 to 1994 due to anti-smoking campaigns [1][5] - The global tobacco industry is shifting from traditional cigarettes to new tobacco products, with Philip Morris International (PMI) leading this transition [2][16] Key Points on Philip Morris International - PMI has become the largest tobacco company globally through globalization and has actively transitioned to new tobacco products, especially heated tobacco products (HTPs) [1][5] - As of 2024, PMI's smoke-free products cover nearly 40 million users, with IQOS users reaching 32 million and a user conversion rate of 72% [6][7] - PMI's market share for IQOS in the global market stands at 77%, indicating a dominant position [6][7] - PMI forecasts a 12%-14% growth in smoke-free product sales for 2025, with HTPs expected to grow by 10%-12% and nicotine replacement products by 38%-45% [7] Competitors and Market Dynamics - British American Tobacco (BAT) and Japan Tobacco are also increasing their focus on new tobacco products, aiming for 50% of their sales to come from these products by 2035. As of the end of 2024, their new product shares are 13% and 3%, respectively, compared to PMI's over 40% [8] - The heated tobacco category is seen as having explosive growth potential, with only three companies currently selling four products, led by PMI [11] Chinese Market Potential - China accounts for nearly 40% of global cigarette sales, presenting a significant growth opportunity for new tobacco products [9] - Although the domestic heated tobacco market has room for improvement compared to international leaders, the recent introduction of HTPs in the U.S. suggests potential changes in China [9][15] Emerging Trends and Future Outlook - The new tobacco industry is expected to be a long-term trend, with substantial opportunities arising from the global tobacco revolution over the next 5 to 10 years [16] - The development of nicotine pouches is growing, but they are unlikely to become mainstream due to their limited appeal [12] - Companies like Smoore International and China Tobacco Hong Kong are highlighted as key players in the new tobacco landscape, with Smoore being the most engaged in the heated tobacco sector [13][14] Conclusion - The tobacco industry is undergoing a significant transformation, with PMI at the forefront of this shift towards new tobacco products. The competitive landscape is evolving, with both established players and emerging companies vying for market share in a rapidly changing environment. The Chinese market, in particular, holds vast potential for growth in new tobacco products, making it a focal point for future developments in the industry [9][15][16]

Summary of Key Points from Conference Call Records Industry or Company Involved - Focus on the **Chinese economy**, **gold and jewelry industry**, **new consumption sectors**, **traditional consumption sectors**, **technology sector**, and **pharmaceutical industry**. Core Insights and Arguments 1. **Economic Environment**: The U.S. tariff policy remains unresolved, leading to increased pressure on Chinese exports and weakened production, investment, and consumption willingness among enterprises. Employment data shows negative growth, further impacting liquidity [1][2][4]. 2. **Industrial Profit Decline**: Domestic industrial profits are at their lowest since 2020, with PMI data hitting new lows, indicating persistent deflationary pressures. Actual financing costs for enterprises have risen, leading to decreased production willingness [1][4]. 3. **Investment Strategy**: A defensive investment strategy is recommended, focusing on trading U.S. recession through gold and gold stocks for certain returns, and increasing positions in growth dividends and innovative pharmaceuticals as domestic fiscal policies strengthen [1][5]. 4. **New Consumption Opportunities**: New consumption sectors such as the silver economy, tourism, pet economy, smart home, animation, and personal care are gaining traction, supported by fiscal stimulus and less correlation with economic cycles [1][6]. 5. **Traditional Consumption Stability**: Traditional sectors like education, dairy, maternal and infant consumption, hospitality, tourism, and medical beauty show stable cash flows and increasing ROE, with dividends expected to rise [1][8]. 6. **Technology Sector Focus**: Key areas in the technology sector include optical chips, smart speakers, new display materials, AI wearable devices, autonomous driving technology, GPUs, and radar. Companies with rising volume and price, along with high valuation tolerance, are of particular interest [3][9]. 7. **Gold and Jewelry Market Outlook**: The gold and jewelry industry is expected to perform well in 2025, with high gold prices increasing consumer acceptance. Companies like Chao Hong Ji are expanding overseas and innovating product lines to enhance consumer demand [15][16]. 8. **Pharmaceutical Sector Insights**: Innovative pharmaceutical companies are highlighted as key investment targets, with a focus on large pharmaceutical firms that are currently undervalued. Companies like Huadong Medicine and Sanofi are noted for their strong growth potential [12][14]. 9. **Gold Supply and Demand Dynamics**: The gold supply is expected to decline in 2025 due to reduced copper-associated gold mining, while demand remains strong, particularly from gold ETFs and central bank purchases [20]. 10. **Small Metals Market Performance**: The small metals market, especially rare earths and antimony, is performing well due to improved pricing and inventory replenishment driven by export controls [21]. Other Important but Possibly Overlooked Content 1. **Market Sentiment**: The uncertainty surrounding trade negotiations is significantly impacting market sentiment and fundamentals, particularly as U.S.-China relations remain tense [2]. 2. **Long-term Growth Potential**: Despite short-term volatility, companies with solid fundamentals, such as those in the insurance and banking sectors, are expected to show strong long-term growth potential [27][28]. 3. **Investment Timing**: Investors are advised to consider buying during short-term adjustments in new consumption sectors to capture long-term value [7][11]. This summary encapsulates the critical insights and recommendations from the conference call records, providing a comprehensive overview of the current market landscape and investment opportunities across various sectors.

Core Viewpoint - The electronic cigarette sector has regained market attention, with stocks like Smoore International experiencing significant price increases, indicating a potential recovery in the industry [1][9]. Industry Overview - The global tobacco market remains dominated by traditional cigarettes, which account for over 80% of the market, while new tobacco products, including heated not burned (HNB) and electronic cigarettes, represent a growing segment valued at $76.9 billion, approximately 8% of the market [1]. - The number of smokers aged 15 and above globally is around 1.25 billion, with a penetration rate of about 15.6%, indicating substantial room for growth in new tobacco product adoption [1]. Market Segmentation - Electronic cigarettes and HNB products are the two main categories of new tobacco, with global market shares of 28% and 45%, respectively [2]. - The global market for e-vapour products is valued at $21.2 billion, with a compound annual growth rate (CAGR) of 6.6% from 2018 to 2023, while HNB products have a market size of $34.5 billion and a CAGR of 23.3% during the same period [2][3]. Company Performance - Smoore International has shown rapid revenue growth from 2016 to 2021, increasing from 710 million to 13.76 billion yuan, with a CAGR of 81%. However, the company faced challenges in 2022 due to regulatory pressures in China and the U.S. [5]. - The company is expected to achieve a revenue of 11.799 billion yuan in 2024, reflecting a year-on-year growth of 5.56% [5]. Strategic Initiatives - Smoore has been proactive in developing HNB products since 2010 and has established a dedicated division for HNB, acquiring multiple patents and technological capabilities [6]. - The collaboration with British American Tobacco to launch the Glo Hilo series is anticipated to enhance Smoore's HNB business and overall market position [7]. Future Outlook - The Glo Hilo product is set to launch in Japan and expand into European markets, with expectations of significant profit growth starting in 2025 [8]. - The regulatory environment for electronic cigarettes is stabilizing, which may benefit compliant companies like Smoore, enhancing their market share [8][9].