Smoore International (6969) H2 2025 earnings summary

Executive summary

• Achieved record-high revenue of RMB 14,256 million in FY2025, up 20.8% year-over-year, driven by growth in both ToB and self-branded businesses.

• ToB business contributed RMB 11,344 million (+21.7% YoY), with strong performance in Europe and international markets; self-branded business reached RMB 2,912 million (+17.6% YoY).

• HNB business commercialized, generating over RMB 1.2 billion in revenue and supporting strategic customer launches in key global markets.

• Adjusted net profit rose 1.3% to RMB 1,530 million, while reported net profit declined 18.5% to RMB 1,062 million, mainly due to higher share-based payment and compliance expenses.

• Dividend per share increased 300% to HK$0.40, with a payout ratio of 234.4%.

Financial highlights

• Gross profit increased 10.1% to RMB 4,857 million, but gross margin fell by 3.3 percentage points to 34.1% due to product mix.

• R&D expenses decreased 3.1% to RMB 1,523 million, representing 10.7% of revenue and reflecting improved efficiency.

• Administrative expenses rose 40.6% to RMB 1,286 million, mainly due to higher non-cash share-based payments and legal compliance costs.

• Cash and cash equivalents increased to RMB 7,323 million; net current assets at RMB 9,649 million.

• Net profit margin dropped from 11.0% to 7.4% year-over-year.

Outlook and guidance

• Continued focus on compliant product rollouts and expansion in Europe and emerging markets.

• R&D efforts prioritized for heat-not-burn (HNB) and inhalation therapy businesses.

• Plans to deepen execution in HNB, vaping, special purpose atomization, inhalation therapy, and beauty atomization in 2026.

• Global HNB and vaping markets expected to grow at CAGRs of 10% and 8% respectively through 2030.

• Focus on compliance, R&D efficiency, automation, and ESG initiatives to drive sustainable growth.