SMOORE Total Revenue in 2024 Reached 11.799 Billion Yuan, with Strong Growth in Its Own Brand Business

Recently, SMOORE (06969.HK), a leading enterprise in the e - cigarette industry, released its 2024 financial report. This report shows the company's operating conditions in the past year and also reveals its development trend in a complex market environment. Now, let's interpret the key information in Smoore International's 2024 financial report together.

In 2024, SMOORE  achieved total revenue of 11.799 billion yuan, a year - on - year increase of 5.31%. Against the backdrop of fierce industry competition and stricter regulation, this growth reflects the company's market resilience.
The company's net profit was 1.303 billion yuan, a year - on - year decrease of approximately 20%. The decline in profits is mainly due to the growth of sales and R & D expenses exceeding the growth of other income, gains, and gross profit.
R & D investment is to maintain technological leadership and expand new businesses, and the increase in sales expenses is used for brand promotion and market expansion. Although these investments affect profits in the short term, they will help enhance the core competitiveness in the long run.

The company's own brand business was a highlight in 2024, with revenue reaching 2.475 billion yuan, accounting for 21% of the total revenue, a year - on - year increase of 34%. This benefit from precise market strategies. Through localization strategies, channel management, and consumer insights, popular products were launched.
In the field of e - vaping products, the company's own brand VAPORESSO continued to perform well. In the first half of the year, the iterative versions XROS 4 and XROS 4 Mini of the mouth - to - lung product XROS were launched and received good reviews. During the review period, iterative versions of the direct - to - lung products GEN and ARMOUR were launched, improving the product matrix.
In the international market, the revenue of the company's own brand e - vaping business grew significantly. The revenue in Europe and other markets was approximately 2.024 billion yuan, a year - on - year increase of 37.2%; the revenue in the US market was approximately 424 million yuan, a year - on - year increase of 14.0%. In addition, the atomizing beauty product "Lanzhi" established its brand image in mainland China through online - offline integrated marketing.

The revenue of the business with enterprise customers was 9.324 billion yuan, accounting for 79%, a year - on - year decrease of 0.3%. The performance of this business varied in different regions.
US Market: It was greatly affected by the FDA's law enforcement against non - compliant products. The sales of e - vaping products were initially impacted. In the second half of the year, with the strengthening of law enforcement and the normalization of the FDA's review of compliant products, sales recovered. The revenue was approximately 3.988 billion yuan, a decrease of approximately 2.4% compared to the previous year. The business of components for special - purpose atomizing products was still under adjustment, and its revenue decreased.
Europe and Other Markets: The business mainly sold closed - type e - vaping products. The overall revenue was approximately 5.097 billion yuan, a slight increase of 0.3% compared to the previous year. However, due to the strengthened regulation of disposable e - vaping products in Europe, the orders for disposable products decreased by approximately 9.5%, and the revenue was approximately 3.050 billion yuan. Nevertheless, the company's support for strategic customers in launching new - generation closed - type e - vaping products performed well, helping the closed - type refillable products to grow significantly in the second half of the year.
China Market: It showed growth, with revenue of approximately 239 million yuan, a year - on - year increase of approximately 25.1%. The company upgraded its customer service, providing value - added services such as market insights and brand promotion for e - vaping product enterprise customers, enhancing customer stickiness.

As a high - tech manufacturing enterprise, SMOORE attaches great importance to R & D. In 2024, the company's R & D expenses were 1.57 billion yuan, a year - on - year increase of 6%, accounting for 13.3% of the revenue. R & D investment was mainly concentrated in the fields of atomizing medical and heated - tobacco products.
E - vaping Field: Based on market insights, the company upgraded and iterated successful product platforms, improving atomization efficiency. The number of puffs of new products increased by approximately 30%. It also explored new technology platforms, such as launching the world's first high - impact flavor solution FEELM TURBO and its upgraded version, the BLAST solution.
Heated - Tobacco Products Field: The products launched by the company's customers received positive feedback. The products innovated in heating technology, materials, and structural design, enhancing the user experience.
Atomizing Medical Field: The company has an inhalation drug R & D and production center near Miami, with capabilities in R & D, production, and quality control. During the review period, it completed the development and layout of several drug - device combination products for asthma and chronic obstructive pulmonary disease. The key indicators met the requirements of European and American regulatory agency guidelines, laying a foundation for registration and application.
In addition, in the atomizing beauty field, the company launched the "Lanzhi" brand and the first - generation atomizing beauty product solution, which is the industry's first beauty product that can atomize high - viscosity skin care essence, improving the absorption efficiency.
During the R & D process, the company improved R & D management efficiency, clarified R & D priorities, implemented hierarchical and classified project management, and strengthened budget management to accelerate the commercialization of technological achievements. In 2024, 1,558 new patent applications were filed globally, including 893 invention patents. As of December 31, 2024, a total of 9,253 patents had been applied for, including 4,760 invention patents, building an intellectual property protection system.

Looking ahead, SMOORE is confident in the long - term growth of the global atomization market. In the e - vaping field, although there are non - compliant products in major global markets, strengthened regulation is conducive to the company expanding its market share with its technology and brand. The company will strengthen market insights, accelerate product innovation, and upgrade its cooperation model with customers.
The heated - tobacco business is an important second growth curve, and 2025 is a crucial implementation stage. The global heated - tobacco market is expected to grow at a compound annual growth rate of 10.1% from 2024 to 2029. The company will support customers in launching products in more markets, pay attention to user feedback, and continue to conduct R & D and seek cooperation.
The field of components for special - purpose atomizing products has great growth potential. The company will launch innovative products, improve product categories, and through local operations, enhance market insights, optimize business models, and improve operational efficiency.
The atomizing medical and atomizing beauty fields have broad prospects. In the atomizing medical field, the company will promote the clinical development, experiments, and registration applications of drug - device combination products for respiratory diseases and expand cooperation. In the atomizing beauty field, it will strengthen the promotion of the "Lanzhi" brand, optimize the "ToB + ToC dual - engine" business model, and achieve coordinated development.
Smoore International's 2024 financial report shows its adaptability and development potential. Although facing challenges such as profit decline, through business structure optimization, continuous R & D innovation, and active market expansion, it still has broad development space in the future.