On the evening of February 1, Smol International (06969.HK) issued a performance forecast. In 2022, the company’s total comprehensive income for the period will be 2.305 billion yuan to 2.817 billion yuan, compared with 5.287 billion yuan in the same period last year, a year-on-year decrease of 46.7% to 56.4 billion yuan. %; adjusted net profit was 2.385 billion yuan to 2.897 billion yuan, compared with 5.443 billion yuan in the same period last year, a year-on-year decrease of 46.8% to 56.2%.

Smol International’s stock price will fall by about 70% in 2022

Smol International is the world’s largest manufacturer of electronic atomization equipment. Its main business is OEM production for global electronic cigarette brands, providing atomization technology solutions, including electronic atomization equipment based on ODM manufacturing heat-not-burn products and Electronic atomization components. However, under the global tobacco control ban and the continuous strengthening of e-cigarette regulatory policies in various countries, the development prospects of e-cigarette companies are facing challenges.

Taking my country’s regulatory policy on the electronic cigarette industry as an example, since 2022, relevant policies and rules such as the “Administrative Measures for Electronic Cigarettes”, “Electronic Cigarette” Mandatory Regulations, and Electronic Cigarette Consumption Tax have been implemented one after another, and the electronic cigarette industry has entered a period of comprehensive supervision. new stage. For e-cigarette companies, they need to face business adjustment and transformation under regulatory policies.

Regarding the decline in performance, Smol International explained that first, the revenue from the Chinese market and the US market in the 2022 fiscal year will decline; The relatively low one-time atomization business has grown significantly, and its proportion in the overall business has increased; the third is the continuous increase in R&D investment, especially in the basic research of atomization technology, investment in medical and health fields, and the 2022 financial The annual R&D expenditure has increased significantly compared with the same period of the previous year.

Cynthia Chen
Email: Cynthia@intl2.aierbaita.com
Mobile/whatsapp/wechat: +8615751339879
Nannning Aierbaita company/ Shenzhen Aierbaita company