On July 10th, FEELM’s parent company Smoore International Holdings Limited (Smoore for short) officially listed on HKEX (Hongkong Exchanges and Clearing Limited), stock code 6969.HK. Its initial IPO price was12.4HKD, while the closing price reached 31 HKD and market value 178 billion HKD.
As a global leader in offering vaping technology solutions, Smoore’s mission is to build the world’s leading vaping technology platform to bolster the innovation and development of vaping technology with a wide range of applications.
World’s Largest Electronic Atomization Device Manufacturer
Smoore is a global leader in manufacturing vaping devices and vaping components for HNB products on an ODM basis, with advanced R&D technology, strong manufacturing capacity, wide-spectrum product portfolio, and diverse customer base. According to Frost & Sullivan, Smoore was the world’s largest vaping device manufacturer in terms of revenue, accounting for 16.5% of the total market share, in 2019.
In recent years, thanks to high-quality products and continuous innovation, Smoore has been recognized by the global market. Data shows that from 2016 to 2019, its total revenues are 707 million yuan, 1.565 billion yuan, 3.434 billion yuan, and 7.611 billion yuan respectively, with a compound annual growth rate of 120.8%.
Most of Smoore's customers come from overseas markets, covering more than 50 overseas countries or regions. In 2019, the company's revenue from the United States, Hong Kong, and Japan markets accounted for 21.8%, 20.9%, and 7.9%, respectively.
According to Frost & Sullivan, the global vaping device market size grew rapidly from US$1,828.8 million in 2014 to US$6,701.9 million in 2019, representing a CAGR of 29.7%, and is expected to continue increasing in the future. With growing demands globally, the market size of the global vaping devices is expected to further reach US$22,716.9 million by 2024, representing a CAGR of 27.7% from 2019.
With Industry consolidation driven by regulatory requirements the introduction of regulations on vaping devices in many countries, especially the two largest markets, the U.S. and Europe, the regulatory norm is becoming clearer. Generally, certain requirements and restrictions are imposed on the production, sales, and marketing of vaping devices. Under such circumstances, companies with competitive edges will outstand those without them and will take over larger market shares, leading to further industry consolidation in the near future.
Over 1500+ Patents, Leading in R&D
As of the Latest Practicable Date, Smoore had advanced R&D resources of three research centers and 645 R&D personnel. The company emphasized its research on heating technology. In 2016, its first generation of heating technology was introduced. Later that year, the company further launched its second-generation FEELM. FEELM won the Golden Leaf Award at GTNF in 2018 and the iF Design Award 2020.
In October 2019, Smoore was awarded the China Patent Excellence Award by the National Intellectual Property Administration, PRC; In November 2019, the company also received the Laboratory Accreditation Certificate from the China National Accreditation Service for Conformity Assessment for the safety and quality of its laboratories. The company’s ability to build up its own technology brands also helps maintain its leading position in the vaping industry.
Smoore’s management team is comprised of industry pioneers and experts. Members of its management have been in the industry for an average of eight years.
In the next three to four years, SMOORE plans to invest more in improving production capacity and upgrading equipment, including setting up new manufacturing facilities and research institutes of group level as well as installing automated production lines and IT equipment.
Exploring New Applications, Healthcare being the New Potential
In 2020, the outbreak and spread of COVID-19 had a huge impact on the development of the global electronic atomization industry. Data shows that the growth rates of open system, closed pod system, and special-used electronic atomization have increased by 3.2%, 11.2%, and 12.1% respectively, far lower than the previous year’s 20.1%, 38.1%, and 36.8%.
As many countries have taken effective protective measures and actively arranged work-return. Frost & Sullivan believes that COVID-19's impact on the global electronic atomization industry is limited and temporary, the market is expected to recover from 2021. Besides, more than 90% of users from the US, UK, and China believe that COVID-19’s outbreak will not affect their purchase of electronic atomization products.
While providing electronic atomization products to global users, SMOORE has also begun to explore new applications of atomization technology. This April, Smoore, and AIM Immuno Tech (hereinafter referred to as "AIM") announced they have entered into a Material Transfer and Research Agreement (MTA). The purpose is to research in China the efficacy of Smoore's inhalation delivery device using Ampligen, AIM's flagship drug, which has been approved for ME/CFS in Argentina and experimental through phase 3 clinical trials in the U.S. AIM believes Ampligen has potential as a prophylactic/early-onset therapeutic against COVID-19. When a patient shows COVID-19 symptoms for the first time, the drug is delivered deep into the infected lung, which can cause the drug to trigger a therapeutic Toll-Like Receptor 3 (TLR3) throughout the upper and lower respiratory systems, thereby effectively preventing COVID-19 infection.
Globally, inhalation therapy using electronic atomization equipment has become an important and effective method for treating respiratory symptoms and diseases (such as cough, asthma, bronchitis, and other lung diseases), and more and more electronic atomization equipment suppliers have begun to strengthen researches and investments in this area. With increasing awareness of practitioners in the electronic atomization industry, medical applications may become an important part in the future.
Applying electronic atomization technology to the healthcare industry is one of the key points in Smoore's next phase of research, and is also a potential driver for its future development.
Currently, Smoore is developing core components for medical automation equipment. With its automated production technology, Smoore can simplify the existing medical automation equipment, accurately control the dosage and the size of the aerosol particles, so as to improve the atomization efficiency of health care essence.
Specifically, controlling the aerosol particle size can ensure that a higher ratio of drug aerosol enters the human body, and being effectively absorbed while controlling the dose can ensure that the patient takes the appropriate amount of medicine. In the precise calculation of medicines, SMOORE has made breakthroughs, contributing to treat asthma, chronic obstructive pulmonary disease, and other respiratory diseases, and relieve pains.