Smoore International Reports Q1 Revenue of RMB 2.527 Billion, Net Profit Down 44.8% Year on Year

Zhitong Finance APP reports that Smoore International (06969) has released its unaudited results for the three months ended March 31, 2023. During the period, the group recorded revenue of RMB 2.527 billion, up 11.9% year on year; profit before tax was RMB 319 million, down 49.3% year on year; and adjusted net profit was RMB 306 million, down 44.8% year on year.

The announcement stated that the main reasons for the decline in profit before tax were as follows: lower revenue from the mainland China market led to reduced profit contribution from that market. Revenue from mainland China showed a steady growth trend during the first three months of 2023, but revenue from mainland China in the first quarter of 2023 was approximately RMB 15.5 million, down about 97.7% year on year. Revenue from overseas markets in the first quarter of 2023 was approximately RMB 2.512 billion, up about 58.2% year on year, mainly driven by growth in lower-margin disposable products and overseas pod-based products. However, the profit growth from overseas markets was still insufficient to offset the impact of reduced profit from the mainland China market. Selling expenses, administrative expenses, R&D expenses, other income and expenses, and other gains and losses increased overall by about RMB 172 million compared with the same period last year.