Smol Released Its 2022 Financial Report: Revenue Of 12.1 Billion, Doubled R&D Investment And Layout Of Four Major Tracks

Smol released its 2022 financial report: revenue of 12.1 billion, doubled R&D investment and layout of four major tracks

 

Chen Zhiping, chairman of the board of directors of Smol International, said that the company will be in a rapidly changing and challenging external environment in 2022. The regulatory policies for new electronic atomization products in the countries where the main markets are located are gradually becoming clear, but the formulation and implementation of policies in the short term requires a process , have a certain impact on the company's business. In the future, the company will combine worry and quick action, commit to practicing compliance in the electronic atomization industry, seize new growth opportunities, and actively fulfill social responsibilities.

 

Overseas revenue accounted for more than 80%, and the annual net profit was 2.575 billion

The financial report shows that Smol's operating income in 2022 will be 12.145 billion yuan, a year-on-year decrease of 11.7%. After adjustment, the net profit for the whole year of 2022 will be 2.575 billion yuan, and it will continue to maintain its market share in the global electronic atomization market.

 

Behind the stable revenue is Smol’s active layout in the electronic atomization market and the diversification of revenue distribution. In 2022, Smoore's retail customer business (APV) will be 1.466 billion yuan, and the enterprise customer business (ODM) revenue will be 10.679 billion yuan. Among them, the US market will remain stable, accounting for 35.4% of the revenue. to 21%.

 

Last year, the new markets and new products that Simore actively deployed achieved rapid growth. The revenue share of Europe and other markets increased from 24.1% in 2021 to 43.6% in 2022, an increase of 19.5 percentage points. This is mainly due to the rapid mass shipment of disposable products, helping customers quickly occupy the European market.

 

In the U.S. market, with its leading advantages in technology and manufacturing, Smoore has become the atomization technology manufacturer that has helped the most customers in the ENDS category to pass PMTA, and has helped major customers continue to increase their market share and become the number one through flexible business policies. In terms of the Chinese market, Smol adheres to compliance operations, and all six subsidiaries have been issued production licenses.

 

The doubling of R&D investment has brought about a technological revolution, and the revenue of one-off products has increased by 19 times

 

The financial report shows that in 2022, Smol adheres to long-termism and continues to increase investment to improve research and development capabilities. The annual research and development expenses are 1.372 billion, a year-on-year increase of 104% from 671 million in 2021. Among them, more than 70% of research and development invested in electronic nicotine delivery systems (including electronic atomization and heat-not-burn products), 12% were used in atomized medical and atomized beauty products, and nearly 14% were used in special-purpose atomized products and related technologies.

 

According to relevant reports by Sullivan, it is estimated that by 2027, the electronic atomization retail market will reach US$122.2 billion, the heat-not-burn market will be US$65.4 billion, and the medical atomization market will be US$44.4 billion. The scientific research results brought about by Smol's huge R&D investment are being transformed into new technologies, new platforms and new applications, helping to lay out the four major tracks.

 

In recent years, closed disposables have become the fastest-growing category in the electronic atomization industry. Last year, Smol launched the world's first ceramic core disposable solution FEELM Max. With the "more mouths, better taste, Higher Consistency" has been recognized by many customers around the world. The financial report shows that in 2022, the revenue of Smol's closed disposable products will be 1.93 billion, a year-on-year increase of 1919.2%.

 

In response to the strong call for compliant products in the global disposable market this year, Smol will also actively launch a new and upgraded disposable solution for ceramic cores. Through the innovation of heating element technology, it will bring a more secure and compliant whole to the global disposable market. solutions, and bring more extreme disposable product experience to global users.

 

Exports earned 9.88 billion yuan last year, and the first medical atomization drug delivery device will be launched within this year

 

The financial report shows that medical atomization is expected to become the next growth curve of Smol. The company formally established the American Institute of Medicine and established a world-class research and development team for inhalation medicines. The institute is dedicated to the research and development of new inhalation medicines, through inhalation and drug administration, to achieve targeted treatment of lung and lung problems. disease. The research institute is developing corresponding products for the European and American markets. The company has started relevant experiments in the United States and Europe, and has been granted the first orphan drug qualification by the US FDA. Domestically, the first medical nebulization drug delivery device developed and manufactured by Smol has obtained a production license and is expected to be launched this year.

 

As a "dream catcher with love", Smoore continues to respond to public expectations with practical actions and practice corporate social responsibility. In terms of environmental governance, Smol actively develops degradable and recyclable environmental protection technology solutions, and is committed to realizing the goal of a "zero-carbon enterprise" in an all-round way. On April 25 last year, Smoore was the first in the industry to announce the launch of a carbon neutral plan, to achieve carbon neutrality in operational emissions by 2050, and to achieve 30% of energy consumption from renewable energy by 2030. The global ESG rating has long been at the forefront of the industry.

 

In addition, Smoore earned 9.88 billion yuan in foreign exchange by exporting to overseas markets last year, actively participated in "stabilizing employment", continuously optimized the structure of grassroots talents in manufacturing, and increased the recruitment demand for skilled talents in technology, quality, and production management; actively participated in Various social welfare activities, donated 3 million Hong Kong dollars in March 2022 to support Hong Kong's fight against the epidemic, and donated 1 million Hong Kong dollars in September to assist Luding in earthquake relief.