SMOORE INTL reported first-half 2026 revenue of RMB 7.21 billion, a 19.90 % rise year on year and the highest interim level in the company’s history. The expansion was powered by a 24.70 % jump in Corporate Client Oriented (ToB) sales to RMB 5.91 billion, equivalent to 82 % of group turnover.

Gross profit increased 3.50 % to RMB 2.32 billion, while gross margin narrowed to 32.2 % from 37.3 % due to a product-mix shift toward lower-margin items. Profit for the period advanced 16.20 % to RMB 571.92 million. After adding back non-cash share-based expenses, adjusted profit reached RMB 756.61 million, up 2.60 %.

Segment detail showed electronic vaping and special-purpose atomization revenue up 9.30 % to RMB 4.80 billion. Heat-not-burn (HNB) product sales surged 322.10 % to RMB 962 million following large-scale shipments to a key customer. Inhalation therapy technical services contributed RMB 147 million, an increase of 24.80 %. Self-branded sales edged 1.90 % higher to RMB 1.30 billion, representing 18 % of group revenue.

Operating expenses reflected continued investment: R&D spending rose 16.90 % to RMB 844.50 million, equivalent to 11.7 % of revenue, with a focus on HNB technology platforms. Distribution and selling expenses fell 21.00 % to RMB 388.08 million, while administrative costs were broadly stable at RMB 620.49 million.

Net cash generated from operations totaled RMB 742.56 million; however, heavy investment outflows and dividend payments reduced cash and cash equivalents to RMB 3.96 billion, a 46.0 % decline from end-2025. The group remains debt-free, held a current ratio of 359.7 % and an asset-liability ratio of 18.3 % at 30 June 2026.

Capital expenditure reached RMB 495.63 million, mainly for production upgrades and R&D facilities. Contracted but unprovided capex commitments stood at RMB 812.98 million.

The board declared an unchanged interim dividend of HK 20 cents per share, payable on 25 September 2026 to shareholders on record as of 10 September 2026.

Management highlighted ongoing benefits from tighter U.S. enforcement that favors compliant suppliers, accelerating HNB commercialisation through a multi-customer approach, and continued investment in Transpire Bio’s inhalation therapy pipeline. Priorities for the second half include strengthening R&D, enhancing operational efficiency and reinforcing compliance to sustain long-term growth.