SHENZHEN, China--(BUSINESS WIRE)--SMOORE, a global leader in offering vaping technology solutions, has announced its financial results for the year ended 31 December 2021.
SMOORE reported 2021 annual revenue of RMB13.75 billion, representing a year-on-year increase of approximately 37.4%.
The company also pledged to achieve carbon neutrality in its direct and indirect production and operational activities by 2050, being the first atomization tech company to announce a roadmap to carbon neutrality.
In 2021, the global regulations on the electronic atomization industry have become more stringent, and many countries set higher safety standards for electronic atomization products while SMOORE has still maintained its position as the world’s largest manufacturer of vaping devices. According to Frost and Sullivan report, the company’s market share in the global vaping devices manufacturing field has increased to approximately 22.8% in 2021 from approximately 18.9% in 2020.
With its technological advantages in atomization, SMOORE has continued to empower its global corporate clients. The revenue of corporate client oriented sales firstly exceeded RMB10 billion and reached RMB12.59 billion, representing a strong growth of 37.4% year-on-year, with overseas revenue accounting for over 70% of its corporate client oriented sales in the last half of 2021. It is largely attributed to the company’s flagship closed system vaping tech brand FEELM, which has been widely recognized by leading vaping brands around the world. To date, vaping devices loaded with FEELM atomizer have been exported to 50 countries in Europe, America, East Asia, Africa, and Oceania.
“The driving force of the atomization industry is technological innovation, which brings fundamental breakthroughs in product safety and flavor reproduction,” said Chen Zhiping, Chairman of the Board of SMOORE.
In 2021, SMOORE continued to strengthen its R&D investment. The total research and development expenses was over RMB670 million, representing an increase of approximately 59.7% over the previous year.
SMOORE has developed a comprehensive safety assessment system, so as to help its clients comply with standards of different markets. For example, SMOORE has built up China’s first corporate one-stop risk assessment laboratory for the European Union TPD (Tobacco Products Directive) compliance, to help clients meet EU vaping market entry requirements. It can generate test reports within 5 working days.
Furthermore, SMOORE has built up and put into operation 7 fundamental research centers in China and the U.S. As of 31 December 2021, SMOORE has a total of 1254 R&D experts, and 101 of them have doctoral degrees or above. The number of the company’s accumulative patent applications is 3408, involving temperature control, heating element, leakage-proof technology and e-liquid storage; and the number of new patent applications in 2021 was 1,187 globally.
During the Review Period, SMOORE also introduced the latest generation of production line, realizing the fully automated production of assembly, e-liquid injection, and packaging. Now, the single-line production efficiency has reached 7,200 standard vaporizers per hour, maintaining the industry’s leading position in manufacturing. The fully automated production line has been used by FEELM’s clients on a large scale.
According to the Frost and Sullivan Report, the global market size of vaping devices is expected to grow at a compound growth rate of approximately 25.3% at ex-factory price from 2022 to 2026. Global consumers are expecting products with improved safety, more authentic flavor reproduction and powerful functions, to satisfy their diversified needs.
Therefore, FEELM introduced the world’s first ceramic coil disposable pod solution in 2021. FEELM will launch more disposable vaping products in overseas markets in 2022 to further strengthen its product portfolio.
Moreover, in January 2022, FEELM has showcased the world’s thinnest ceramic coil vape pod solution, FEELM Air in London. Widely recognized by FEELM’s strategic partners, FEELM Air features 7 major breakthroughs in vaping experience, including harm reduction, flavor reproduction and leakage-proof performance. “FEELM Air is going to be firstly launched in overseas markets,” said Frank Han, President of FEELM and Vice President of SMOORE. “Currently, FEELM is working with global clients on the regional deployment and promotion of FEELM Air.”
At SMOORE 2021 Annual Performance Conference, Qiu Lingyun, Vice President of SMOORE said that the U.S and China have successively implemented flavor ban on e-cigarettes, and SMOORE has already prepared technical solutions for tobacco flavors in accordance with the U.S regulations for about a year, prior to the exposure draft of Chinese national standards of e-cigarettes coming into force. So, SMOORE is confident to support its clients in getting through the transitional period of regulations.
Moreover, disposable vapes have shown strong growth momentum in recent years. According to Qiu Lingyun, SMOORE has developed integrated solutions to the heating element, e-liquid and temperature zone of disposable vapes, in a bid to diversify its product portfolio. Thus, SMOORE has been ready to launch successful disposable products in international markets soon.
In 2022, SMOORE and its flagship tech brand FEELM are expected to partner with more tobacco companies and leading vaping brands, and adopt latest vaping solutions, such as FEELM Air and disposable pods, to existing clients.