Smoore Annual Report: US market Sales Declined and Increased 50% in the European market

Article written by Leona Zhu, edited by Mandy Wong, On March 20, Smoore International released its 2022 performance report. According to the financial report, the operating income of Smoore in 2022 is 12.145 billion yuan, a decrease of 11.7 %; the annual net profit in 2022 was 2.575 billion yuan, a decrease of 52.7 %.

Over 80% of Overseas Revenue - The US market declined, and the Europe market rose. 

According to the financial report, Smoore 's annual revenue in 2022 was 121.45 billion yuan, with export revenue of 98.98 billion yuan, accounting for 81.5 % of total revenue, an increase of 15.5 %; domestic sales revenue was 2.246 billion yuan, accounting for 18.5 % of total revenue, a decrease of 15.5 %.

By region, sales revenue in the US market decreased by 22.7 % ( for corporate customers ) in 2022. Non-compliant products squeeze the US e-cigarette market to support some customers, increase market share, and lower some product prices. 

However, with the continuous strengthening of FDA's law enforcement, Smoore is confident in the future competitiveness of the group's products and the long-term growth of the US market. 

Smoore's 2022 sales revenue increased by 53.4 % year-on-year in Europe and other markets. Smoore said it helped its main customers become the largest e-cigarette brand in many European countries. 

Domestically, Smoore's sales revenue fell 51.9 % ( for corporate customers ). It said that this had a significant negative impact on the total revenue of Smoore.

Disposable E-cigarette Products Revenue Increased over 19 times (1.9 billion yuan)

The financial report shows that Smoore has launched a new one-time e-cigarette product in the European market, and sales have rapidly grown. In 2022, disposable product sales revenue was 1.93 billion yuan, which increased 19 % from 0.95 billion yuan in 2021. The second half of sales revenue was 1.611 billion yuan, an increase of 17.61 %. 

In addition, in the second half of 2022, Smoore upgraded its e-cigarette product LUXE X, further increasing its market share. 

According to the financial report, the sales revenue of Smoore 's products for retail customers in 2022 was 1.465 billion yuan, an increase of 26.2 %.

Double Investment to Enhance Core Brand Competitiveness 

According to the financial report, the annual research and development expense of Smoore in 2022 was 1.372 billion yuan. Among them, the cost of an electronic nicotine transmission system ( including electronic atomization and heating non-combustion products ) accounted for 74 %; the cost of atomization products for particular purposes was 13.9 %; the cost of atomizing medical and cosmetic products was 12.1 %.

According to the financial report, 2254 patents were added in 2022, including 1125 invention patents.  

Regarding brand building, Smoore said it would continue to build FEELM as a closed atomization product technology brand, METEX as a technology brand of heating non-combustion products, and VAPORESSO as the opened atomization product brand.

In the future, Smoore plans to launch differentiated new products in e-cigarette equipment, special-purpose atomization products, atomization medical treatment, and expand the application fields of atomization technology.

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思摩爾國際控股有限公司截至2022年12月31日年度業績公告