Smoore Releases H1 2023 Financial Report: Overseas Revenue Exceeds 90% of Total, Revenue Up Year on

On August 21, Smoore International released its financial report for the first half of 2023. The report shows that Smoore's operating revenue for the first half of 2023 was 5.123 billion yuan, a decrease of 9.4% compared to last year. However, the adjusted net profit was 758 million yuan, demonstrating the company's robust operational strength. Among them, revenue from overseas markets reached 5.061 billion yuan, a year-on-year increase of 28%, showcasing a promising growth outlook.

Smoore's Executive Director, Chairman of the Board, and CEO Chen Zhiping stated: “In the first half of 2023, our operations were impacted by rapidly changing market conditions and external environments, leading to a certain degree of decline in revenue and profits. During the review period, we continued to enhance management efficiency, build marketing capabilities, and strengthen R&D capabilities, maintaining optimism about the company's future operations and confidence in the bright prospects of the vaping business.”

Overseas revenue accounts for over 90%, with disposable products increasing threefold year-on-year

Smoore is actively laying out the electronic vaping market, achieving diversification in revenue distribution. Revenue from enterprise customer business (ODM) was 4.474 billion yuan, accounting for 87.3% of total revenue. Revenue from overseas markets steadily increased, with a year-on-year growth of 30%. The group achieved breakthroughs in the U.S. market by improving production intelligence levels and optimizing cost structures, with revenue accounting for 40.2%, a year-on-year increase of 27.7%.

Additionally, Smoore has also experienced rapid development in Europe and other markets, with a year-on-year growth of 32%. Notably, disposable products have rapidly achieved large-scale shipments, with year-on-year revenue growth reaching 369%. Thanks to high technical barriers, the group successfully launched the ceramic core disposable vaping solution FEELM Max, achieving a 30% increase in the number of puffs, extreme purity and smoothness, and consistency in every puff. At the same time, the group introduced the globally leading battery technology TOPOWER, providing consumers with a long-lasting experience without the need for recharging.

Meanwhile, the group has also achieved further growth in retail customer (APV) business, benefiting from product upgrades and channel penetration, with revenue reaching 649 million yuan in the first half of 2023, a year-on-year increase of 15.8%.

Enhancing R&D efficiency, actively laying out four major vaping tracks

In the field of R&D, Smoore's investment reached 615 million yuan, a year-on-year increase of 1.8%, with R&D accounting for 12% of total revenue. Additionally, the group has significantly strengthened the protection of intellectual property, with 1,154 new patent applications.

In the enterprise customer (ODM) business, Smoore has fully upgraded the world's first ceramic core disposable solution FEELM Max, providing direction for the next stage of industry development, redefining the industry standard for 2ML puff count with compliant 800 puffs. At the same time, breakthroughs have been made in the large puff count field, with TOPOWER technology solving the endurance issue, allowing large puff count products to truly achieve "disposable, no charging".

In the retail customer (APV) business, the group has launched iterative products LUXE XR MAX and XROS 3 NANO based on the existing popular LUXE X and XROS series, further enhancing the group's market share in the open product market. Meanwhile, the newly launched products VAPORESSO COSS and VAPORESSO ECO NANO feature automatic liquid filling, automatic charging, and strong endurance, further enhancing the group's overall strength.

Smoore, leveraging its expertise in product R&D, marketing, and compliance management, has successfully responded to rapid market changes and external challenges, continuously creating value for customers and consumers.

At the same time, the group will continue to lay out four major tracks: electronic vaping, heated tobacco products, special-purpose vaping products, and vaping for medical use, aiming to build a globally leading vaping technology platform.

Among them, the electronic vaping market still has significant growth potential, as it is in a stage of low market penetration, rapid product iteration, and continuous market expansion. Smoore will gradually introduce more differentiated innovative disposable products to overseas markets to drive revenue growth.

In the field of special-purpose vaping products, the group will systematically develop and launch more innovative products to further enhance its competitive strength in this area. Meanwhile, in the field of vaping for medical use, the group is committed to changing the administration methods to provide more precise, efficient, and economical vaping administration solutions for patients with respiratory-related diseases. Additionally, the group's R&D in the field of vaping for medical use is steadily progressing, and various pharmaceutical R&D projects will continue as planned in the second half of the year.

The company will also continue to uphold the mission of "vaping makes life better," focusing on building a globally leading vaping technology platform; with the strategy of "leading technology manufacturing, diversified core, and brand technology," continuously enhancing technological levels and expanding application fields.