HK Stock Market Move | SMOORE INTL (06969) fell more than 4% in the afternoon, and the export tax rebate on electronic cigarettes will be cancelled.

SMOORE INTL(06969) fell more than 4% in the afternoon, dropping 4.36% to HK$11.18 as of the press time, with a turnover of HK$172 million. On the news front, the Ministry of Finance and the State Taxation Administration recently announced that starting from April 1, 2026, the export tax rebate for electronic cigarette products will be cancelled. Some analysts pointed out that the original 13% rebate rate was key for companies to hedge costs and maintain international pricing advantages. Zero rebate means companies will have to bear the full cost of value-added tax, directly squeezing profit margins. Zheshang recently released a research report stating that from the intensive release of policy documents, the country attaches great importance to and plans to rectify various illegal activities in the domestic production/sale/export of electronic cigarettes. We believe the industry supply side structure will undergo changes, with small workshops that previously provided illegal products possibly being forced out more quickly, while SMOORE INTL, as a compliantly operated listed leader, is expected to benefit.