Smoore reports revenue growth despite profit dip in first half

Smoore International Holdings Limited reported an 18.3% year-on-year increase in revenue for the six months ended June 30, 2025, reaching RMB6.01 billion. Gross profit rose by 16.6% to RMB2.24 billion, though the gross profit margin slightly decreased to 37.3%. Profit for the period, however, decreased by 28.0% to RMB492.15 million, primarily due to increased share-based payment expenses, market development investment in self-branded products, and legal/compliance service costs. Excluding share-based payments, adjusted profit for the period was RMB737.41 million, a 2.1% decrease year-on-year.

The company's ToB Business saw revenue climb 19.5% to RMB4.74 billion, while the Self-Branded Business grew 14.1% to RMB1.27 billion, driven by its VAPORESSO brand. R&D expenses decreased 4.9% to RMB722.56 million as the Group focused on strategic areas like HNB and inhalation therapy, capitalizing qualifying development costs. Capital expenditures for property, plant, and equipment significantly increased to RMB784.58 million.

Smoore declared an interim dividend of HK20 cents per share, up from HK5 cents in 2024, to be paid on September 25, 2025. The company projects continued growth across its segments, with a focus on compliant products, localized operations, and new market opportunities.