Smoore Reported RMB 288 Million in Revenue and RMB 39.13 Million Net Profit in H1 2016

According to a report from Wabei, on September 20, Maikewei (stock code: 834742) recently announced its semi-annual report for 2016, showing a revenue of RMB 288 million during the reporting period, a year-on-year increase of 108.69%; the net profit attributable to shareholders of the listed company was RMB 39.1321 million, a year-on-year increase of 137.45%; basic earnings per share were RMB 0.62, a year-on-year decline of 62.42%.

As of June 30, 2016, Maikewei's total assets amounted to RMB 337 million, an increase of 37.43% compared to the beginning of the period; the asset-liability ratio was 44.42%, down 7.84 percentage points from the beginning of the period (52.26%). The net cash flow from operating activities during this period was RMB 47.6655 million, compared to -RMB 746.27 million in the same period last year.

During the reporting period, Maikewei's operating revenue of RMB 288 million represented a year-on-year increase of 108.69%, mainly due to the continuous growth in ODM orders from major clients in the first half of 2016; the launch of self-branded open electronic atomization devices also contributed to a certain proportion of revenue growth.

Maikewei's net profit for the first half of 2016 was RMB 39.1321 million, a year-on-year increase of 137.45%. The main reason for the profit growth was the high gross margin of self-branded open electronic atomization devices, which brought a certain proportion of profit increase after being launched in the market, and the revenue growth diluted fixed costs.

According to data from Wabei's New Third Board Research Institute, Maikewei is a technology innovation company specializing in the research, development, production, and sales of e-cigarettes and open electronic atomization devices (APV). Its current business includes two major segments: ODM and self-branded APV.