Vaping technology company Smoore International Holdings Ltd (6969.HK) said on Wednesday its revenue rose 18.3% year-on-year to 6 billion yuan ($836 million) in the first half of the year, but its net profit fell 28% to 492 million yuan.
Smoore attributed the falling profit to a substantial year-on-year increase in stock-based employee compensation costs, coupled with intensified marketing pushes for its proprietary labels. Spending linked to its legal and compliance advisory resources also rose sharply.
Shares of Smoore opened up 0.6% at HK$22.22 on Thursday. The stock is up 67% since the beginning this year.
By Lau Chi Hang
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