Smoore Business Update: Revenue Down 9.7% and Net Profit Down 43.2% in First Nine Months

According to the announcement, as of September 30, 2023, the group achieved a revenue of 8 billion RMB (same currency hereafter), a year-on-year decrease of 9.7%; the pre-tax profit was 1.323 billion RMB, a year-on-year decrease of 47.1%; and the adjusted net profit was 1.225 billion RMB, a year-on-year decrease of 43.2%.

Smoore International (06969.HK) released a financial update announcement, stating that as of September 30, 2023, the group achieved a revenue of 8 billion RMB (same currency hereafter), a year-on-year decrease of 9.7%; the pre-tax profit was 1.323 billion RMB, a year-on-year decrease of 47.1%; and the adjusted net profit was 1.225 billion RMB, a year-on-year decrease of 43.2%. 

For the three months ending September 30, 2023 (this period), the group achieved a revenue of 2.879 billion RMB, a quarter-on-quarter increase of 10.9%, and a year-on-year decrease of 10.3%; the pre-tax profit was 526 million RMB, a quarter-on-quarter increase of 10.4%, and a year-on-year decrease of 36.3%; the adjusted net profit was 467 million RMB, a quarter-on-quarter increase of 3.1%, and a year-on-year decrease of 35.2%.  

Smoore International stated that the pre-tax profit for this period decreased by approximately 36.3% compared to the same period last year, primarily due to a year-on-year decrease of approximately 10.3% in revenue, mainly due to an 85.6% year-on-year decline in revenue from the mainland China market; the group's selling expenses, administrative expenses, R&D expenses, other income and expenses, and other gains and losses increased by approximately 30.1% compared to the same period last year.  

The group's pre-tax profit increased by approximately 10.4% compared to the second quarter of 2023, primarily due to a quarter-on-quarter increase of approximately 10.9% in revenue; the group's selling expenses, administrative expenses, R&D expenses, other income and expenses, and other gains and losses increased by approximately 47.6% compared to the second quarter of 2023, with the main increase coming from the rise in R&D expenses, which partially offset the profit growth.