Smoore International (06969) Announces 2025 Performance Achieving an approximate profit of 1.062 billion yuan, a decrease of about 18.5% year-on-year

Smoore International (06969) announced its 2025 performance, with revenue of approximately 14.256 billion yuan, a year-on-year increase of approximately 20.8%. Gross profit was about 4.857 billion yuan, up approximately 10.1% year-on-year. Net profit for the year was around 1.062 billion yuan, a year-on-year decrease of approximately 18.5%. Basic earnings per share were 17.44 cents, and a final dividend of 20 Hong Kong cents per ordinary share is proposed.

Among them, the ToB business contributed revenue of approximately 11.344 billion yuan, a year-on-year increase of approximately 21.7%. The ToB business mainly includes sales of vaping products, HNB products, and special-purpose vaping products. Benefiting from the increased enforcement against non-compliant products externally and enhanced ODM capabilities internally, which helped clients quickly respond to market changes, the company’s vaping business achieved growth during the review period. The second growth curve—HNB business—also showed initial results, with revenue exceeding 1.2 billion yuan. The group supported a strategic customer in launching high-end HNB products in multiple major markets globally, marking the company’s first achievement of large-scale shipments of HNB products and successfully commercializing a decade-long investment in HNB technology. The proprietary brand business generated revenue of approximately 2.912 billion yuan, a year-on-year increase of about 17.6%, mainly driven by the proprietary brand vaping business. During the review period, benefiting from flagship product iterations, expanded channel coverage, and continuous market share growth, the company’s proprietary vaping brand VAPORRESSO achieved growth again.

The announcement stated that the main reason for the decrease in net profit for the year was that the growth in revenue and gross profit was insufficient to offset the increase in expenses, mainly due to: (i) the group’s share-based payment expenses significantly increased compared to last year during the review period; (ii) legal and compliance service-related costs of the group significantly increased compared to last year; and (iii) the group intensified its market development efforts for proprietary brand products during the review period.

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