SMOORE INTL (06969) announced its financial results for 2025. The company reported revenue of approximately 14.256 billion yuan, representing a year-on-year increase of about 20.8%. Gross profit reached approximately 4.857 billion yuan, up by about 10.1% compared to the previous year. However, profit for the year was approximately 1.062 billion yuan, marking a decrease of about 18.5% year-on-year. Basic earnings per share were 17.44 cents, and the board proposed a final dividend of 20 Hong Kong cents per ordinary share.

The ToB business segment contributed revenue of approximately 11.344 billion yuan, an increase of about 21.7% year-on-year. This segment primarily includes sales of vaporization products, HNB products, and special-purpose vaporization products. The company's vaporization business experienced growth during the review period, benefiting from strengthened external enforcement against non-compliant products and enhanced internal ODM capabilities that helped clients quickly adapt to market changes. The second growth driver, the HNB business, also began to show results, with revenue surpassing 1.2 billion yuan. The group supported a strategic client in launching premium HNB products in several major global markets, marking the company's first large-scale shipment of HNB products and the successful commercialization of its decade-long investment in HNB technology.

The proprietary brand business generated revenue of approximately 2.912 billion yuan, an increase of about 17.6% year-on-year, primarily driven by the proprietary vaporization brand. During the review period, the company's proprietary vaporization brand, VAPORESSO, achieved growth again, benefiting from flagship product iterations, expanded channel coverage, and continuous market share growth.

The announcement stated that the decrease in annual profit was mainly because the growth in revenue and gross profit was insufficient to offset the increase in expenses. This was primarily attributable to: (i) a significant increase in share-based payment expenses compared to the previous year; (ii) a substantial rise in legal and compliance service-related fees compared to the prior year; and (iii) increased market development efforts for the group's proprietary brand products during the review period.