SMOORE INTL (06969) saw its shares drop nearly 7% during the trading session. By the time of writing, the decline moderated to 3.31%, with the stock trading at HK$11.4 and a turnover of HK$132 million. The movement follows an announcement from China's Ministry of Finance and the State Taxation Administration regarding adjustments to export tax rebates, which explicitly includes non-combustible nicotine-containing products in the scope of cancelled rebates. This relevant policy is scheduled to take effect on April 1, 2026. Analysis suggests that the previous 13% rebate rate was crucial for companies to hedge costs and maintain a competitive international pricing advantage. The reduction of the rebate to zero implies that companies will need to bear the full value-added tax cost, directly compressing their profit margins. A research report from Huafu Securities noted that as international tobacco giants' HNB (Heat-not-Burn) products enter mainstream markets, the company's related new tobacco product sales in new regions are expected to contribute incremental growth. Markets in Europe, such as the UK, are anticipated to shift towards more profitable pod-based and open-system products. Globally, particularly in the United States, e-cigarette enforcement has significantly intensified, creating substantial room for the recovery of compliant product market share. The report recommends keeping an eye on SMOORE INTL.