Smoore International (6969) H1 2026 earnings summary

Executive summary

• Achieved record-high revenue of RMB 7,209 million in H1 2026, up 19.9% year-over-year, driven by strong growth in ToB, especially HNB and electronic vaping products.

• HNB business revenue surged 322.1% year-over-year to RMB 962 million, reflecting large-scale shipments and expansion into nine markets.

• Inhalation therapy business grew 24.8% year-over-year, with Transpire Bio achieving key milestones and progressing external equity financing.

• Self-branded business revenue increased 1.9% year-over-year, with notable growth in the U.S. market despite challenges in Europe and the Middle East.

• Net profit increased 16.2% to RMB 572 million; adjusted profit for the period rose 2.6% to RMB 757 million.

Financial highlights

• Gross profit grew 3.5% to RMB 2,322 million, but gross margin declined by 5.1pp to 32.2%.

• Adjusted profit excluding inhalation therapy reached RMB 889 million (+7.1% YoY).

• R&D expenses rose 16.9% to RMB 845 million, focusing on HNB and efficiency improvements.

• Cash and cash equivalents: RMB 3,956 million (down 46% from Dec 2025); total assets: RMB 25,797.3 million (down 9.6%).

• Interim dividend per share maintained at HK$0.20; dividend payout ratio surged to 397.3%.

Outlook and guidance

• Plans to enhance compliance capabilities and support clients in launching regulation-aligned products, especially in the U.S.

• Focus on expanding self-branded business in key and emerging markets.

• HNB business to pursue multi-product and multi-client strategies for sustained growth.

• Continued investment in inhalation therapy and R&D to reinforce technological leadership.

• External equity financing for inhalation therapy subsidiary is being advanced to unlock value and mitigate profit/cash flow impact.