By Timothy S. Donahue

Top Takeaways:

• Sales climb: First-half revenue rose 19.9%.
• HnB surges: Revenue jumped more than fourfold.
• U.S. shifts: B2B vaping sales fell 15.6%.

Heated tobacco is reshaping Smoore’s business.

Smoore International reported a 19.9% increase in first-half revenue, as its heated tobacco business more than quadrupled, offsetting weaker U.S. business-to-business vaping sales.

Revenue totaled RMB 7.21 billion ($1.08 billion) for the six months ended June 30, up from RMB 6.01 billion a year earlier. Profit rose 16.2% to RMB 571.9 million, while pretax profit increased 24.9% to RMB 872.5 million.

The biggest change came from heated tobacco products.

Smoore generated RMB 961.6 million from heat-not-burn (HNB) products and related technical services, up 322.1% from RMB 227.8 million a year earlier. The business accounted for 13.4% of total revenue, compared with 3.8% in the first half of 2025.

The company attributed the surge to large-scale shipments of HNB products to a core customer beginning in the second half of 2025.

Smoore said it continued to support that customer’s global expansion of premium HNB products. By the end of June, the new products had been introduced in nine markets, and end-market data showed increases in sales and market share in major markets, particularly in the premium segment.

The company is now working with the customer on next-generation products and a longer-term HNB development roadmap, while also seeking additional customers to reduce its reliance on a single partner.

Smoore’s broader business-to-business operations also expanded. Revenue from enterprise customers rose 24.7% to RMB 5.91 billion. The traditional vaping picture, however, varied considerably across regions.

B2B revenue from vaping and special-purpose atomization products and related technical services increased 9.3% to RMB 4.80 billion. Revenue from Europe and other markets rose 29.7% to RMB 3.25 billion, while U.S. revenue declined 15.6% to RMB 1.49 billion. China revenue fell 50.3% to RMB 58.2 million.

Smoore’s own-brand U.S. vaping business moved in the opposite direction. U.S. revenue in that segment increased by 19.9% to RMB 209 million. European and other market revenue was essentially flat at RMB 1.07 billion.

The results leave Smoore increasingly diversified beyond the electronic nicotine delivery system (ENDS) hardware business on which it built its global position.

Its atomized medical business generated RMB 147.5 million, up 24.8%. Smoore said a joint development project with a leading U.S. biopharmaceutical company was ahead of its original milestones. In May, the FDA accepted a third abbreviated new drug application from Smoore’s subsidiary Transpring.

Profitability did not rise as quickly as sales. Gross profit increased by 3.5% to RMB 2.32 billion, while gross margin declined by 5.1 percentage points to 32.2%.

Smoore maintained its interim dividend at HK$0.20 per share. As of June 30, the company had no borrowings from banks or other financial institutions, and its gearing ratio declined to 22.3% from 30.5% at the end of 2025.