BRIEF: Smoore’s profit slides on rising costs, despite strong revenue growth

Vaping device manufacturer Smoore International Holdings Ltd. (6969.HK) saidon Tuesday that its revenue rose 20.8% in 2025 to 14.26 billion yuan ($2.07 billion). But rising expenses dragged down its profitability, with its net profit for the year falling 18.4% to 1.06 billion yuan. Its gross margin also declined to 34.1% from 37.4% in 2024.

By business segment, the company’s business-to-business (2B) operations remained its main revenue driver, generating 11.34 billion yuan, up 21.7% from the previous year and accounting for about 80% of total revenue. Revenue from its own-brand business reached 2.91 billion yuan, up 17.6% year-on-year.

Among its regions, Europe and other overseas markets delivered the strongest growth, with overseas 2B revenue surging 38.5%. The company also continued commercializing its heat-not-burn (HNB) products, which generated more than 1.2 billion yuan in revenue during the year.

Smoore blamed its profit decline on cost increases that outpaced revenue and gross profit growth, including a sharp rise in share-based compensation expenses, higher legal and compliance costs, and increased marketing spending on its own-brand products. Excluding share-based payments, its adjusted profit grew 1.3% year-on-year to 1.53 billion yuan.

The company’s shares opened higher on Wednesday but later gave up gains, closing down 15.38% at HK$10.07 by the midday break. The stock is down 45% over the past six months.

By Lee Shih Ta

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