SMOORE INTL (06969) saw its shares plummet by 5.21% during the intraday trading session on Tuesday. The sharp decline reflects investor concerns over recent policy changes affecting the e-cigarette industry.

The Ministry of Finance and the State Taxation Administration announced that the value-added tax (VAT) export tax rebate for e-cigarette products will be abolished effective April 1, 2026. The 13% rebate was a critical factor for companies like SMOORE INTL to hedge costs and maintain competitive international pricing. Its elimination will force companies to bear the full VAT cost, directly squeezing profit margins.

Analysts note that the rapid succession of policy releases signals the government's intent to tighten regulations on the e-cigarette sector. While this may phase out smaller, non-compliant players, SMOORE INTL, as a compliant industry leader, is positioned to benefit from the long-term regulatory shift despite short-term headwinds.