Smoore International Holdings Ltd. (06969) saw its shares plummet 5.04% during Wednesday's intraday trading session. The significant drop comes after the company released its full-year financial results for 2025.

The company reported that while revenue increased by 20.8% to RMB14.26 billion, profit for the year declined by 18.5% to RMB1.06 billion. Smoore attributed the profit decrease primarily to higher share-based payment expenses, increased legal and compliance service fees, and greater market development spending for its self-branded products. Additionally, the company's gross margin fell to 34.1% from 37.4% in the previous year due to product mix shifts and higher costs.

Despite the profit decline, Smoore's adjusted profit (excluding share-based payment expenses) showed a modest increase of 1.3% to RMB1.53 billion. The board also proposed a final dividend of HK$0.20 per ordinary share. The company noted growth in both its corporate client-oriented business and self-branded segments, with heat-not-burn products generating over RMB1.2 billion in revenue.