Smoore International Holdings Limited: history, ownership, mission, how it works & makes money

A Brief History of Smoore International Holdings Limited

Smoore International Holdings Limited, founded in 2009, is a leading manufacturer of vaping devices and electronic cigarettes based in China. The company is well-known for its advanced technologies and significant market share in the global vaping industry. As of 2022, Smoore accounted for approximately 19.1% of the global market share in the vaporizer segment.

The company went public on the Hong Kong Stock Exchange on July 10, 2020, under the ticker symbol 6969.HK. The initial public offering (IPO) raised about USD 1.0 billion, making it one of the largest IPOs in Hong Kong for that year. The stock opened at HKD 100 per share and significantly rose in the years following its debut.

Smoore operates in multiple countries, including the United States and several European nations, with manufacturing facilities primarily located in Shenzhen, China. The company has established partnerships with numerous iconic brands in the vaping sector and focuses heavily on research and development, spending approximately 11.2% of its annual revenue on R&D activities.

For the financial year ending December 31, 2022, Smoore reported revenue of approximately CNY 25.73 billion (USD 3.66 billion), representing a year-over-year increase of 19.6%. The company's net profit for the same period was about CNY 4.76 billion (USD 680 million), which resulted in a profit margin of approximately 18.5%.

As of 2023, Smoore continues to expand its footprint in the global market, with plans to leverage technological advancements and increase its production capacity. The company aims to enhance its product offerings, maintain compliance with international regulations, and solidify its leadership position in the industry.

In addition to its manufacturing capabilities, Smoore has sought to innovate through collaborations with various start-ups focused on e-liquid formulations and device technologies. The company’s commitment to sustainability has been notable, with initiatives to reduce environmental impact in manufacturing processes and product lifecycle.

Looking at the stock performance, Smoore's shares experienced fluctuations in 2022, with a peak price of HKD 130 in August 2022 and a low of HKD 78 in late 2022. The stock's performance has been subject to broader market trends and regulatory changes impacting the vaping industry.

As of now, Smoore International Holdings Limited is positioned as a key player in the vaping industry, with a robust growth trajectory, driven by innovation, strategic partnerships, and significant investment in research and development. The company's vision centers around creating high-quality vaping products that cater to an increasingly health-conscious consumer base.

A Who Owns Smoore International Holdings Limited

Smoore International Holdings Limited is a leading manufacturer and supplier of vaping products, known for its advanced technology and innovation in the sector. The company is publicly traded on the Hong Kong Stock Exchange under the stock code 6969.HK.

As of the latest financial disclosures, Smoore International Holdings Limited has a diversified ownership structure that primarily includes institutional investors, retail investors, and the founding members of the company.

• Founders and Key Executives: Approximately 38% ownership
• Institutional Investors: Roughly 55% ownership
• Retail Investors: Around 7% ownership

The founders, including Mr. Chen Li, who serves as the Chairman, are significant shareholders. Their combined ownership reflects confidence in the company's long-term growth strategy. Institutional investors play a crucial role, showing a strong interest in Smoore due to its market position and growth prospects.

In recent years, Smoore's share price has shown significant volatility, typical of companies within the vaping industry. As of October 2023, the share price stands at approximately HKD 55, reflecting a 12% year-to-date increase, amidst fluctuating market demand for vaping products.

The company's market capitalization is estimated at around HKD 99 billion, positioning it among the top players in the vaping sector. Smoore reported revenue of approximately HKD 14.5 billion for the fiscal year ending December 2022, with a net profit margin of 20%.

Key factors influencing Smoore's ownership include the overall industry growth, regulatory changes, and competition. Understanding this ownership landscape provides insight into Smoore's governance and strategic direction.

As the vaping market continues to evolve, Smoore International Holdings Limited's ownership dynamics will likely shift, influenced by both internal strategies and external market conditions.

Smoore International Holdings Limited Mission Statement

The mission statement of Smoore International Holdings Limited emphasizes its commitment to innovation, quality, and leadership in the vaping industry. Specifically, Smoore aims to provide high-quality vaping devices and solutions that enhance the user experience while promoting a smoke-free lifestyle.

Founded in 2009, Smoore has positioned itself as a leading manufacturer of vaping products. The company's mission encapsulates its strategic focus on research and development (R&D), ensuring it remains at the forefront of technology in the industry.

In terms of financial performance, Smoore reported a revenue of approximately RMB 9.43 billion (around USD 1.47 billion) for the fiscal year 2022, reflecting a year-over-year increase of 51.2% compared to 2021. The company's net profit for the same period stood at RMB 2.21 billion (approximately USD 345 million), which marked an increase of 56.3%.

Key Elements of the Mission Statement

• Innovation: Smoore continuously invests in R&D, dedicating over 10% of its annual revenue to innovation strategies.
• Quality Assurance: The company adheres to strict quality control processes, achieving an ISO 9001 certification, which ensures high standards in manufacturing.
• Customer Satisfaction: Smoore aims to meet customer preferences by offering tailor-made solutions, highlighted by customer satisfaction ratings above 90%.

Financial Overview

Smoore International Holdings Limited is publicly traded on the Hong Kong Stock Exchange under the stock code 6969.HK. As of October 2023, the company's market capitalization is approximately HKD 60 billion (around USD 7.68 billion).

The following table outlines Smoore's financial performance metrics for the past three years:

As illustrated, Smoore's revenue and net profit have been on a consistent upward trajectory, underscoring the effectiveness of its mission-driven approach. The company’s investments in innovation and quality assurance have significantly contributed to its robust financial health and market positioning.

Further enhancing its mission, Smoore has also expanded its global footprint, exporting products to over 50 countries. This strategic expansion aligns with the company's vision of leading the shift toward alternative smoking solutions.

Through its mission and operational excellence, Smoore International Holdings Limited continues to solidify its status as a frontrunner in the evolving vaping industry.

How Smoore International Holdings Limited Works

Smoore International Holdings Limited operates primarily in the electronic smoking device industry, focusing on the design, manufacture, and sale of vapor products. The company was founded in 2009 and has since established itself as a major player in the global vaping market.

Business Model

Smoore’s business model centers around two main segments: Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM). Their OEM operations involve producing devices for third-party brands, while the ODM segment entails designing and manufacturing products under Smoore's own brands. This dual approach allows Smoore to diversify its revenue streams and mitigate risks associated with reliance on a single market segment.

Market Presence

The company has a significant global reach, with operations in over 70 countries. In 2022, Smoore reported revenues of approximately RMB 27.83 billion (roughly $4.2 billion), marking a year-over-year increase of 8.6%. A considerable portion of its revenue, about 64%, comes from international markets, particularly North America and Europe.

Product Portfolio

Smoore's product lineup includes a variety of vaping devices, e-liquids, and accessories. Their flagship brand, "FEELM," offers a range of products known for innovative technology such as ceramic heating elements, which enhance user experience by delivering consistent flavor profiles. In 2023, Smoore expanded its product offerings by launching 15 new device models, targeting different consumer preferences.

Financial Performance

As of the most recent fiscal year (2022), Smoore reported a net profit margin of 14.3% and a return on equity (ROE) of 18.5%. Their total assets were valued at approximately RMB 24.2 billion (about $3.7 billion), while total liabilities stood at RMB 6.9 billion (around $1.07 billion).

Research and Development

Smoore invests significantly in research and development (R&D), allocating about 8% of its annual revenue to innovate and improve its product offerings. In 2022 alone, R&D expenditures reached approximately RMB 2.23 billion (around $340 million). This commitment to R&D has led to over 300 patents being filed worldwide, positioning Smoore as a technology leader in the vaping space.

Environmental Commitments

The company is also focused on sustainability practices, with initiatives aimed at reducing carbon emissions and promoting recycling. Smoore has established goals to achieve a 30% reduction in carbon footprint by 2025, aligning its operations with global sustainability trends.

Stock Performance

As of the latest data in October 2023, Smoore International trades on the Hong Kong Stock Exchange under the ticker 6969.HK. The stock price has seen fluctuations throughout the year, with a high of HKD 80 per share in January and a low of HKD 45 in July. The current annualized dividend yield stands at 2.5%.

In 2023, Smoore's market capitalization is approximately HKD 60 billion (around $7.7 billion), reflecting investor confidence and strong market positioning in the competitive vaping industry.

How Smoore International Holdings Limited Makes Money

Smoore International Holdings Limited, a prominent player in the vaping industry, primarily generates revenue through the design, manufacturing, and sale of vaping devices. The company has positioned itself as a leader in the market, leveraging its innovative technology and strong research and development capabilities.

In 2022, Smoore's total revenue reached approximately RMB 9.47 billion (around $1.48 billion), reflecting a year-on-year increase of 17.3%. The growth can be attributed to both domestic and international market expansions, primarily in Europe and North America.

Revenue Segmentation

The company's revenue is segmented into three primary categories:

• Vaping devices
• Components
• OEM/ODM services

For the fiscal year 2022, the revenue contributions from these segments are as follows:

Smoore's flagship products, the vaping devices, include brands like "VAPORESSO" and "JOMO," which have gained significant market traction. The company invests heavily in R&D, with over 10% of its annual revenue allocated to this area, resulting in over 300 patented technologies as of 2023.

Moreover, Smoore's strategic partnerships with global tobacco companies have further solidified its market position. The launch of new product lines, such as the INFINITI series, accounted for a substantial portion of the revenue growth, with sales increasing by 25% post-launch in early 2022.

Geographical Revenue Distribution

Geographically, Smoore's revenue is diversified. The distribution for 2022 is outlined below:

The strong performance in Asia Pacific is largely due to the rising adoption of vaping products, with a market size projected to reach $2.5 billion by 2025. In Europe, regulatory developments have opened avenues for growth, while North America, despite stricter regulations, has shown resilience with a market size of approximately $4.4 billion in 2023.

Cost Structure

Smoore's cost structure is another critical aspect of its profitability. Major cost components include:

• Raw materials
• Labor
• Research and development
• Marketing and distribution

For the fiscal year 2022, Smoore reported a gross profit margin of 40.5%, which is indicative of its operational efficiency. The breakdown of costs as a percentage of total revenue is as follows:

In conclusion, Smoore International Holdings Limited has established a robust financial model characterized by diverse revenue streams, efficient cost management, and strategic market positioning, allowing it to capitalize on the growing demand in the vaping sector.