SMOORE INTL(06969) first quarter revenue of 3.856 billion yuan, a year-on-year increase of 41.7%

SMOORE INTL (06969) announced that for the three months ended March 31, 2026, the group achieved a revenue of RMB 3.856 billion (all in the same unit), representing a year-on-year increase of 41.7%; pre-tax profit was RMB 364 million, up 42.8% year-on-year; adjusted net profit was RMB 347 million, up 10.7% year-on-year. The announcement stated that the steady growth in revenue was mainly attributed to the growth in business to business (ToB business) and proprietary brand business. During this period, revenue from ToB business was approximately RMB 3.267 billion, a significant increase of 48.6% year-on-year. This growth was mainly driven by the continuous growth in electronic vaporization business and heat-not-burn (HNB) business. During this period, revenue from electronic vaporization products and related technology services and special purpose vaporization products was approximately RMB 2.524 billion, a steady increase of 21.8% year-on-year. With strong policy foresight, market insight, and excellent manufacturing capabilities, the group further supported its original design manufacturing (ODM) customers in various key markets to achieve growth. During this period, revenue from HNB products and technology services was approximately RMB 664 million, a significant increase of 1324.9% year-on-year. The main reason for the significant increase in revenue was the group's support to its strategic customers in launching high-end HNB products in the second half of 2025. Revenue from the group's vaporization medical business during this period was approximately RMB 79.30 million, a slight decrease of 1.7% year-on-year. The revenue from vaporization medical business mainly comes from providing technical services to business customers. The vaporization medical business progressed as planned during this period. Revenue from the group's proprietary brand business during this period was approximately RMB 588.6 million, an increase of 12.6% year-on-year. This growth was driven by the group's proprietary brand electronic vaporization business, which continued to increase its market share in emerging markets during this period. During this period, net profit was approximately RMB 262.5 million, an increase of 36.6% year-on-year, mainly driven by revenue and gross profit growth; distribution and sales expenses decreased. Excluding equity-based payment expenses, adjusted net profit was approximately RMB 347 million, up 10.7% year-on-year. During this period, the group continued to invest in Transpire Bio Inc., focusing on improving Transpire Bio's internal technology platform and pipeline products to support its long-term business development. Excluding the loss from this business, adjusted net profit was approximately RMB 467 million, up 25.7% year-on-year.