According to the unaudited comprehensive results of Smoore International (06969) FOR THE SIX MONTHS ENDED 30 JUNE 2022, in the first half of 2022, the adjusted net profit was 1.436 billion yuan, down 51.7% year-on-year. Basic earnings per share were RMB 23.08 cents, down 52.4% year-on-year. An interim dividend of 10 cents per share.
Revenue in the first half of the year was RMB 5.653 billion, down 18.7% year on year. Gross profit was 2.706 billion yuan, down 29.2%. The gross profit margin was 47.9%, down 7 percentage points year-on-year, mainly due to the structural changes of products with different gross profit margins, the increase in the proportion of fixed costs due to the decline in revenue, and the price adjustment of some products in order to support customers to increase market share. Total comprehensive income for the period was RMB 1.384 billion, down 51.9% year-on-year.
Among which the revenue from corporate client oriented sales decreased by 21.6%, the proportion of total revenue decreased from 93.4% in the same period of last year to 90.1% in the Review Period; the revenue from retail client oriented sales increased by 22.9%, the proportion of total revenue increased from 6.6% in the same period of last year to 9.9% in the Review Period.
Gross profit margin fell 7 percentage points year-on-year
Product sales in the first half of the year, the sales revenue to corporate customers in the United States was 1.613 billion yuan, down 33% year-on-year, and the sales revenue to corporate customers in mainland China was 1.698 billion yuan, down 40.1%. And sales to corporate customers in other countries and regions, the revenue was 1.782 billion yuan, up 42.1%.
During the Review Period, the Group’s disposable products realized revenue of RMB319,939,000, representing an increase of 234.5% as compared to RMB95,634,000 for the full year of 2021. With the gradual improvement of the Group’s ability in disposable vaping products delivery, we expect the
revenue for the second half of the year to increase significantly as compared to the first half of the
The management said that in the first half of the year, the epidemic had a particular impact on the Group’s production, supply chain, and logistics. The gradual introduction, refinement, and implementation of major market regulatory policies and regulations will have a specific impact on demand in the short term. In the first quarter of this year, some areas of Shenzhen adopted stricter epidemic control measures, which had a greater impact on the production and operation of some of the Group’s factories, negatively affecting the Group’s production and shipping plans in the first quarter. In the first half of the year, the Group’s revenue and profit declined year on year. However, an atomized drug delivery device developed by the Group has been approved by the relevant Chinese government approval agency and entered the special approval process for innovative medical devices. If it is finally approved, it is expected to be commercialized in the near future.
In terms of future prospects, the management said that the group would complete the registration and listing approval of the first-generation medical nebulizer products as soon as possible in the near future, and bring them to the market. Recently, the Group has entered into an agreement with one of the world’s largest pharmaceutical manufacturing companies to develop nebulized drugs for the treatment of asthma and chronic obstructive pulmonary disease.