HK Stock Market Move | SMOORE INTL(06969) dropped nearly 7% in midday trading, the export tax rebate on electronic cigarettes will be canceled, related companies' profits may face pressure.

SMOORE INTL (06969) fell nearly 7% during trading, and as of the time of writing, it has dropped 3.31% to 11.4 Hong Kong dollars, with a trading volume of 1.32 billion Hong Kong dollars. On the news front, the Chinese Ministry of Finance and the State Administration of Taxation have issued the latest export tax refund adjustment announcement, explicitly stating that non-combustible nicotine-containing inhalation products will no longer be eligible for tax refunds. The relevant policy will be implemented starting from April 1, 2026. Some analysts point out that the original 13% tax refund rate was crucial for companies to hedge costs and maintain international pricing advantages. Zero tax refund means that companies will have to bear the full cost of value-added tax, directly squeezing profit margins. Huafu Securities released a research report stating that with the entry of international tobacco leader HNB products into mainstream markets, the company's related new tobacco products are expected to contribute incremental sales in new regions; the UK and other European regions are expected to switch to more profitable cartridge and open systems; global, especially in the US, the enforcement of electronic cigarette laws has significantly increased, creating room for compliant product market share recovery. It is recommended to pay attention to SMOORE INTL.