On August 21, Smoore International (06969.HK) released its performance report for the first half of 2023. According to the financial report, Sinopec's operating revenue for the first half of 2023 was RMB 5.123 billion, which represents a 9.4% decrease compared to the previous year. However, the adjusted net profit was RMB 758 million, demonstrating the company's solid operational strength. The revenue from overseas markets was RMB 5.061 billion, showing a 28% year-on-year growth and indicating promising growth prospects.
Mr. Chen Zhiping, Executive Director, Chairman of the Board, and Chief Executive Officer of Smoore, said, "In the first half of 2023, our operations were temporarily impacted by rapidly changing market conditions and external factors, resulting in a certain degree of decline in revenue and profits. However, during this period, we have consistently improved management efficiency, built marketing capabilities, and strengthened research and development capabilities. Therefore, we remain optimistic about the future operations of the company and have confidence in the bright prospects of the atomization business.
More than 90% of the company's revenue comes from overseas, with disposable income increasing threefold year-on-year. Simoer is actively expanding its presence in the electronic vaporizer market to achieve a diversified revenue distribution. The revenue from enterprise customer business (ODM) reached 4.474 billion yuan, accounting for 87.3% of the total revenue. The revenue from overseas markets has steadily increased, with a year-on-year growth of 30%. Among them, the group has achieved further breakthroughs in the US market by enhancing production intelligence level and optimizing cost structure, with a revenue share of 40.2% and a year-on-year growth of 27.7%.
In addition, Smoore has experienced rapid growth in Europe and other markets, with a YoY increase of 32%. Particularly, their disposable products have seen a massive surge in shipments, with revenues increasing by 369% compared to the previous year. Thanks to their high technological barriers, the company has successfully launched the FEELM Max, a ceramic-core disposable atomization solution, which boasts a "30% or more boost in puffs, ultimate purity and smoothness, and consistent performance for every puff." Additionally, they have also introduced TOPOWER, a globally leading battery technology that offers consumers a non-rechargeable, long-lasting usage experience.
In addition, the group achieved further growth in its retail customer (APV) business, benefiting from a dual boost of product upgrades and channel expansion. In the first half of 2023, the revenue reached RMB 649 million, representing a year-on-year growth of 15.8%.
Semoer, the company, has actively expanded its research and development (R&D) efforts and made significant investments in four major fogging tracks, with R&D spending reaching a remarkable 615 million yuan, representing a year-on-year increase of 1.8%. Moreover, the proportion of R&D expenditure in total revenue has risen to 12%. In addition to this, the company has also made strong efforts to enhance the protection of its intellectual property, resulting in a substantial increase in patent applications, totaling 1,154.
In terms of enterprise clients (ODM), Smoore has comprehensively upgraded the global first ceramic-core disposable solution, FEELM Max, providing direction for the next stage of industry development. With the standardized 800 puff count, FEELM has redefined industry standards for 2ml cartridges. At the same time, it has achieved a breakthrough in high-capacity cartridges, as FEELM's TOPOWER technology solves the problem of battery life, allowing high-capacity products to truly be "disposable, no charging required.
In the retail customer (APV) business, the group has released iterative products LUXE XR MAX and XROS 3 NANO, building upon the success of their previous bestsellers LUXE X and XROS series, which have further increased the group's market share in the open-ended product market. Additionally, the group's newly launched products, VAPORESSO COSS and VAPORESSO ECO NANO, feature functions such as automatic liquid injection, automatic charging, and exceptional battery life, further enhancing the group's overall strength.
Simore has successfully managed to navigate the rapidly changing market and external challenges, thanks to their professional expertise in product research and development, marketing, and compliance management. They have consistently delivered value to both clients and consumers.
Additionally, the group will continue to expand its presence in four major sectors: electronic vaporization, heated non-combustible products, specialized vaporization products, and medical vaporization. The objective is to establish a leading global platform for vaporization technology.
Meanwhile, the market in the field of electronic atomization still has significant potential for growth. The industry is still in the development stage of low market penetration, fast product iteration, and continuous expansion of market space. Simoer will gradually launch more innovative disposable products with differentiated advantages in overseas markets to drive revenue growth.
In the field of specialized nebulized products, the group plans to develop and launch more innovative products systematically, in order to enhance its competitiveness in this area. Simultaneously, the group is dedicated to changing the drug administration methods in the field of nebulized medicine, aiming to provide more precise, efficient, and cost-effective nebulized drug delivery solutions for patients with respiratory system disorders. Additionally, the group's research and development in the field of nebulized medicine is progressing steadily, with plans to continue conducting research on various pharmaceutical development projects in the second half of the year, as per schedule.
The company will also continue its mission of "enhancing life through atomization" and focus on building a globally leading atomization technology platform. With a strategic focus on "leading technology manufacturing, diversified core technologies, and branded technological innovations," the company will continuously improve its technological capabilities and expand its application areas.
Source: Smoore
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