SMOORE INTL (06969) saw its shares decline by more than 4% during the afternoon trading session. As of the time of writing, the stock was down 4.36%, trading at HK$11.18, with a turnover of HK$172 million. On the news front, the Ministry of Finance and the State Taxation Administration recently issued an announcement stating that, effective April 1, 2026, the value-added tax (VAT) export tax rebate for e-cigarette products will be abolished. Some analysts have pointed out that the original 13% rebate rate was a key factor for companies to hedge costs and maintain their international pricing advantage. The elimination of the rebate means that companies will have to bear the full VAT cost, directly compressing their profit margins. Zheshang Securities recently released a research report stating that, judging from the rapid succession of policy document releases, the government is placing high importance on and plans to rectify various illegal activities in the domestic e-cigarette production, sales, and export sectors. The report suggests that the supply-side landscape of the industry is set to change, with small workshops that previously supplied illegal products likely to be phased out at an accelerated pace. As a compliant and publicly listed industry leader, SMOORE INTL is expected to benefit from this regulatory shift.