By Timothy S. Donahue
Top Takeaways:
Unaudited warning: Smoore’s annual results are unaudited, which increases risks related to accuracy and possible revisions.
Revenue growth: 2025 revenue increased 20.8% to RMB 14.3 billion ($2.1 billion), driven by B2B demand.
Profit pressure: Net profit decreased by 18.5%, with margins shrinking and shares falling sharply.
Smoore International Holdings reported strong top-line growth in its 2025 annual results—but the figures come with a key caveat: the numbers are unaudited, raising concerns about their reliability and any future adjustments.
Unaudited results, while more timely, lack independent verification by external auditors and may carry a higher risk of errors or material revisions once final audited figures are released. It is also rare for year-end results to be released unaudited.
Against that backdrop, Smoore reported 2025 revenue of RMB 14.256 billion (US$2.1 billion), up 20.8% year over year, reflecting continued strength in its enterprise (B2B) segment.
Revenue from enterprise customers reached RMB 11.344 billion, making up nearly 80% of total sales, while the company’s own-brand business brought in RMB 2.912 billion, a 17.6% increase.
Gross profit rose to RMB 4.857 billion ($729 million), but gross margin dropped to 34.1% from 37.4% a year earlier, indicating increasing cost pressures.
Profitability declined despite revenue growth. Net profit for the year dropped 18.5% to RMB 1.062 billion ($159 million), down from RMB 1.303 billion in 2024. Profit before tax also decreased to RMB 1.476 billion.
Adjusted profit, however, edged up slightly to RMB 1.530 billion, indicating that underlying performance remained relatively stable when excluding certain items.
Regionally, Europe and other international markets remained Smoore’s largest revenue sources, generating RMB 10.548 billion, followed by the U.S. market at RMB 4.597 billion. China contributed a much smaller portion at RMB 257 million.
The company finished the year with RMB 7.323 billion ($1.1 billion) in cash and cash equivalents. Its board recommended a final dividend of HKD 0.20 per share ($0.026).
Investor reaction was volatile. On March 18, Smoore shares in Hong Kong dropped as much as 18% in early trading, before recovering to close slightly lower for the day. The stock remains down roughly 45% over the past six months.
The results highlight a common pattern in the global vaping supply chain: strong demand growth—especially from B2B customers—along with narrowing margins and rising investor scrutiny.
