Tag: Smoore

  • Smoore Reports Half-Year Results

    Smoore Reports Half-Year Results

    Photo:TacoTuinstra

    Smoore International Holdings reported revenue of RMB5.04 billion ($705.4 million) for the six months that ended June 30, down 1.7 percent from the comparable 2023 period. Gross profit rose 3.2 percent to RMB1.91 billion while pretax profit was up by 1.9 percent to RMB811.56 million.

    The group’s branded business grew by 71.9 percent to RMB1.12 billion in the first half of 2024, boosted by the company’s digital marketing operations, which enabled the company to respond rapidly to consumer preferences. The group’s Vaporesso brand continued to increase its market share in the open system product segment and has become the leading brand in this category.

    Smoore’s corporate client sales, meanwhile, declined by 12.3 percent to RMB3.92 billion in the first six months of 2024, reflecting different sales performances in different markets around the world.

    In the U.S., Smoore faced competition from noncompliant vaping products. However, the company said it was encouraged by clarifications of the regulatory framework and the strengthening of enforcement in that market, pointing to creation of a federal multi-agency task force to combat the illicit market, among other developments.

    Increasing regulation of the vaping market in Europe, meanwhile, has impacted demand for traditional disposable products, causing the group’s revenue from single-use vapes to decline by approximately 18.9 percent year-on-year to approximately RMB1.22 billion.

    Smoore said it has successfully launched a number of new closed system products in the international market in the first half of the year, and it is confident that this will translate into stronger orders in the second half of the year.

    In China, where the group’s corporate client-oriented business centers on closed system electronic vaping products, Smoore reported sales revenue of RMB87.78 million, representing an increase of approximately 41.4 percent as compared to the same period last year.

  • FEELM Guides Vape Industry Toward Sustainability

    FEELM Guides Vape Industry Toward Sustainability

    FEELM, a major global atomization company, presented its solutions for achieving sustainable development in the industry during the Global Vape Forum, held during the World Vape Show Dubai 2024 industry event.

    Rex Zhang, strategy director at Smoore and assistant president at FEELM, told attendees that increasingly stringent global regulations and compliance, youth protection, and environmental protection have become the three major challenges hindering the vaping industry’s sustainable development. He said the challenges are even greater in countries like the UK and France, which are planning to introduce disposable vaping product bans.

    Zhang said that stricter global regulations are beneficial for the industry’s development. However, while regulations clarify rules, strict enforcement is crucial to block the circulation of “illegal” products.

    “At the same time, focusing on youth protection and environmental protection, vape companies need to create more compliant and legal products through technological innovation and upgraded vaping experiences,” said Zhang. “Collaboration among brands, retailers, and regulators is essential to achieve sustainable development in the industry.”

    Building compliance capability is a long-term project. As a publicly traded company, Smoore consistently adheres to legal and regulatory standards and continually enhances its compliance capabilities through increased R&D investment, helping more clients succeed in global markets, according to Zhang. In 2023 alone, he said Smoore invested $1.48 billion in R&D, accounting for 13.3 percent of its annual revenue.

    Smoore also has committed to helping its clients’ products obtain to obtain marketing authorization from the U.S. Food and MDrug Administration. Smoore has been instrumental in nearly every vaping product currently authorized by the FDA. Additionally, adhering to the “customer first” business philosophy, Zhang said that FEELM has introduced a series of solutions tailored for several different global markets.

    Rex Zhang

    “[We] believe that consumers in the global market are becoming increasingly sophisticated, and the demand in different markets is more diverse. To respond to the urgent demand for environmentally friendly products in the European market, FEELM has launched the next-generation vape pod solution, FEELM PRO [which complies with TPD regulations and] is environmentally friendly,” said Zhang. “This effectively addresses the current issue of disposable ‘use and discard’ products. It is also simpler to assemble than similar products; it bursts power at an instant start and significantly enhances the flavor experience, offering a smooth and rich taste.”

    Through technological innovation and the use of eco-friendly materials, FEELM has rapidly improved atomization efficiency and battery efficiency, significantly enhancing the vaping experience while greatly reducing the raw materials required for production, according to Zhang. FEELM has also developed a series of new solutions for non-TPD markets, including the world’s first  30,000 puffs disposable with a four-sided surround screen.

    Zhang said FEELM has developed more than eight different child lock solutions to combat youth usage, each meeting the regulatory needs of different markets. “The continuous launch of new solutions results from our long-term investment in technological R&D,” said Zhang. “This is just the beginning.

    “We are confident in focusing on innovation in atomization technology and continually introducing sustainable and compliant vape solutions to meet consumers’ ever-evolving demands for excellence and environmental sustainability.”

  • Smoore Quarterly Pretax Profit Up a Quarter

    Smoore Quarterly Pretax Profit Up a Quarter

    Photo: Taco Tuinstra

    Smoore International Holdings reported an unaudited pretax profit of RMB399.7 million ($55.23 million) for the three months that ended March 31, up 25 percent over its pretax profit in the comparable 2023 quarter. After-tax profit was up 12.8 percent to RMB339.5 in the quarter.

    “Total comprehensive income” was RMB209.8 million in the quarter, compared with RMB293.3 million in the comparable 2023 period.

  • FEELM Turbo Promises ‘Explosion’ of Flavor

    FEELM Turbo Promises ‘Explosion’ of Flavor

    FEELM, a leading vape solution provider, has launched the world’s first “burst power ceramic coil” vape solution. The FEELM Turbo solution leverages “cutting-edge” ceramic coil technology to deliver an explosion of flavor for consumers, according to an emailed press release.

    “Like none others, it can deliver intense flavors, powerful vapor in the shortest time, and enduringly long product life. Compared to other high-powered vapes, products equipped with FEELM Turbo have smaller sizes yet deliver even higher bursts of vapor,” FEELM states. “This technology is also perfectly adapted to the two major vape categories, the disposables, and the pod-system, suitable for customers to create differentiated products to seize the market.”

    Despite its small size, the Turbo can deliver a 200 percent improvement in taste intensity. It efficiently atomizes large molecules while enhancing e-liquid aroma recovery, resulting in a richer and more satisfying hit, according to the release. “With a burst time of just 0.5 seconds, it outperforms mainstream products on the market by strides. Tests show that just one burst power ceramic coil performs more than on par with dual MESH coils,” FEELM states.

    At this year’s TPE exhibition, FEELM showcased an ultra-thin burst power disposable product the 2024 TPE trade show held in Las Vegas at the end of January. With a body thickness of only 14mm, the product “impressed consumers with its elegant thinness, excellent feel, and powerful first puff. It truly lives up to its name: ‘thin yet powerful!’”

    The FEELM Turbo solution delivers significantly more vapor at a lower power setting. Compared to dual Mesh products on the market, FEELM Turbo sees an 80 percent increase in performance, offering a richer flavor experience. The Turbo also boasts constant power engine technology, which ensures consistent flavor and vapor volume throughout the product’s lifespan.

    “Users can enjoy the same satisfying taste with every puff, unlike mainstream products where flavor often fades to bland. Compared to the competitors, FEELM Turbo products demonstrate a 35 percent improvement in flavor consistency and a remarkable 95 percent consistency in the vapor volume,” the release states.

  • XJOY Partners with Smoore to release 1000 puffs in 2mL

    XJOY Partners with Smoore to release 1000 puffs in 2mL

    XJOY has partnered with Smoore to release a single-use vape that offers more than 1,000 puffs in 2mL.

    “I am very fortunate for the opportunity to showcase our latest fully automated production line, all housed in the secure dust free production rooms.” said Thalia Cheng, U.K. business director at SMOORE. “As you can see, we are working in full capacity to bring it to the U.K. to get the first taste of XJOY. We send this first batch of our newest innovation in collaboration with XJOY as our dedicated contribution to support U.K.’s smokers in their smoke-free journey.”

    XJOY Bar 1000 is planned to be stocked by the first 1000 participating stores around the U.K. by February.

    “Our retail partners are all very excited to take on our XJOY Bar 1000, because it provides them with a significant advantage over the other vapes. For one, it is the best and only legal single-use vape that can achieve 1,000 puffs, lasting longer, which is a big deal for our consumers especially now given the rising living costs.” explained an XJOY spokesperson.

    “Consumers will appreciate that our products are competitively priced compared to other 600 puffs vapes available on the market.”

  • Smoore Drops ‘Youth-Friendly’ Brands

    Smoore Drops ‘Youth-Friendly’ Brands

    Photo: Smoore

    Smoore will no longer partner with brands that use flavor names, packaging or product designs that are attractive to youth, the company wrote in a statement.

    The announcement comes ahead of the Dec. 6 closure of the U.K. government’s consultation on e-cigarettes.

    Smoore says it wants to help end the use of flavor names such as Cotton Candy, Gummy Bear, Watermelon Bubblegum and Blueberry Popsicle. Additionally, the company would like to see an end to the manufacturing and sales of “stealth products,” which are vaping products designed to mimic school supplies, toys, soft drinks or cartoon characters.

    Smoore has created a list of flavors that it considers youth-friendly and is also creating a vapor flavor detection squad to monitor the market for new flavors that could be considered appealing to youth.

    There is absolutely no place for any vaping product to look like a child’s toy, be shaped like a much-loved cartoon character or iconic children’s game or be filled with liquid called ‘Gummy Bear, Cotton Candy, Strawberry Milkshake or Starry Violet.

    Rex Zhang, strategy director, Smoore

    “The vape industry represents the best chance the world has ever seen to eradicate deadly cigarettes, and we cannot allow this opportunity to be squandered,” Rex Zhang, Smoore’s strategy director, said. “Vaping was invented for this very purpose, and we need to ensure that it is focused on the adult smoking market.

    “There is absolutely no place for any vaping product to look like a child’s toy, be shaped like a much-loved cartoon character or iconic children’s game or be filled with liquid called ‘Gummy Bear, Cotton Candy, Strawberry Milkshake or Starry Violet.’”

    Every company under Smoore’s umbrella has been ordered to undertake a root and branch review to ensure that none of its products or customers on the OEM and ODM side of its business could be seen as producing youth-appealing products.

    The list of flavors so far includes Skittles, Rainbow, Cotton Candy, Donut, Gummy Bear, Bubblegum, Slushy, Starburst, Pink Pop, Ice Cream, Milkshake, Popsicle, Starry Violet, Reindeer, Snow, Christmas, Fruit Smash, Dr. Reptile, Sour Patch, Oreo and Jolly.

    If the company finds brand owners with products that Smoore deems to be child-friendly, Smoore will work with the company to take immediate corrective action; however, if no action is taken, Smoore could ultimately discontinue all cooperation with the brand.

    Smoore also suggests creating a “no-fly list” to be used by retail and distribution companies around the globe that lists the manufacturers of child-friendly products to prevent their products from being sold.

    Smoore is also urging more standardization of product sizes and shapes. The company believes standardization will help create faster “disassembly at waste treatment sites, helping to increase recycling rates of vapes.”

    The company is calling for every batch of disposable vapes and pre-filled pods to be randomly sampled for product compliance, with whole batches being rejected if any number of noncompliant products are identified.

  • FEELM 2.0 Boosts Puff Count

    FEELM 2.0 Boosts Puff Count

    Smoore International revealed its FEELM 2.0, the first disposable vape to offer more than 1,000 puffs in 2 mL.

    “There is an evident demand for increased puff counts and consistency in taste, especially at a time when the rising cost of living is a constant concern,” said Smoore’s U.K. business director, Thalia Cheng, in a statement. “FEELM 2.0 is our disposable vape solution with the call sign ‘Double the puff, double the joy.’ Based on Consumer Intelligence data, we estimate it can save consumers around £900 [$1.12 billion] annually compared to using standard disposables.”

    According to Smoore, the FEELM 2.0 also heightens the actual vaping experience through enhanced vaping consistency and improved e-liquid utilization.

    Inter Scientific confirmed that FEELM 2.0 shows marked improvements in both e-liquid utilization and vapor consistency when compared to industry standards. The enhanced e-liquid utilization effectively increases the number of puffs while the reduced vapor variation ensures a more consistent experience, minimizing differences with each puff.

    “Smoore’s FEELM 2.0 technology provides consistent uniformity of e-liquid aerosolization over the device life and complies with TRPR 2016 requirements of a tank volume limit of 2 mL,” said David Lawson, CEO of Inter Scientific.

  • Peace of Mind

    Peace of Mind

    Photos: Smoore Technology Indonesia

    With its first overseas production facility, Smoore has boosted the resilience of its operations.

    By Taco Tuinstra

    The site that houses Smoore Technology Indonesia in Malang used to be a tobacco factory, but there is little to remind the visitor of its illustrious past. The rattling conveyors have fallen silent, the leaf scraps have been swept away and the sweet scent of clove tobacco has long dissipated, giving way to a serene, almost sterile environment.

    Instead of the rumbling of cigarette-making machines, there is the hum of high-tech equipment. Sixteen automated production lines assemble, fill and pack e-liquid pods for the U.S. market, requiring only a minimum of human intervention. According to Smoore, the Indonesian facility is one of the most sophisticated and highly automated in the world.

    Though Indonesian plant manufactures nicotine products like its predecessor, the new establishment looks more like a pharmaceutical lab than a factory, with medical-grade standards of hygiene. Entering the production floor requires hairnets and shoe coverings along with a mechanical “wind shower” to remove any contaminants from visitors’ clothing. In addition to a wastewater treatment facility, the compound has its own power generator; in case of a network failure, production can continue for at least 24 hours.

    Considerate of the local culture—Indonesia is the world’s most populous Muslim-majority country—the Chinese firm has built multiple prayer rooms throughout the facility as well as a covered parking deck that can accommodate hundreds of motorcycles. Despite its high level of automation, the Indonesian affiliate employs thousands of local people, and two-wheelers remain by a large margin the most affordable and efficient vehicles for commuters to navigate the country’s bustling roads.

    Ensuring Business Continuity

    Clayton Shen

    Touring the 60,000-square-meter facility (30,000 of which are covered), as Tobacco Reporter did in early October, it is hard to believe that a mere eight months passed between the time that Smoore’s head office in Shenzhen authorized the project and when the first product shipment left the factory in May 2022.

    According to Clayton Shen, president director of Smoore Technology Indonesia, the new factory—Smoore’s first outside of its home country—is part of the company’s business continuity strategy, designed to strengthen the resilience of its global operations and guarantee customers uninterrupted supply regardless of geopolitics or other eventualities.

    As the world’s leading atomization company with a global market share of almost 20 percent, according to Frost and Sullivan, Smoore already has a formidable manufacturing footprint in China, featuring multiple highly automated production lines. In light of recent global developments, however, the company considered it prudent to expand globally and supplement its Chinese base with an additional site.

    While Smoore weathered the Covid-19 pandemic remarkably well, the crisis also exposed the risk of supplying customers worldwide from just one country. Travel restrictions disrupted global supply chains, causing shipping rates to skyrocket and containers to pile up in the wrong locations. China also locked down longer and more severely than many other countries, forcing suppliers to temporarily halt operations and leaving customers scrambling for their products.

    Meanwhile, rising political tensions between China—the world’s largest supplier of vaping liquids and hardware—and the United States—the leading destination for such products—resulted in new trade barriers, with Beijing and Washington slapping each other with tit-for-tat tariffs. E-cigarettes and many other Chinese-made imports are now subject to a 25 percent duty in the U.S., saddling buyers with considerable nonvalue-added expenses.

    Then, in April 2022, the State Tobacco Monopoly Administration, which had recently asserted jurisdiction over China’s rapidly growing vapor business, published new rules for e-cigarette manufacturing. While Smoore successfully applied for many of the newly required licenses, this development also gave pause to others planning to enter the industry.

    Selecting a Site

    The facility in Malang is conveniently located to one of Smoore’s key customers; BAT manufactures tobacco products at its Bentoel facility on the other side of the road.

    In July 2020, the company took its business public, raising more than US$1 billion on the Hong Kong Stock Exchange. The cash provided it with the confidence and financial flexibility to explore the possibility of strengthening its Chinese manufacturing base with a facility abroad.

    The immediate question was: where? The United States and Europe are Smoore’s biggest markets, but those places are also far from China, where many of Smoore’s suppliers remain based. And their regulatory environments can be intimidating for players unfamiliar with the local laws.

    Smoore decided to look closer to home, in Southeast Asia, which like China has a long tradition of manufacturing for exports. Industrial prowess was not the only criterion, however; Smoore also needed a location that was friendly to e-cigarettes. Thailand and Malaysia quickly disqualified as candidates because of their restrictions on vaping. Vietnam, by comparison, is a tolerant country for the nicotine business. It has a large domestic tobacco industry and a famously industrious workforce. However, the state requires foreign investors to not only team up with a local company but also give their Vietnamese partner a 51 percent stake in the business—an unappealing condition for Smoore.

    So the choice fell on Indonesia. According to Shen, the country offers multiple advantages. For starters, it is amiable to the nicotine business—a rarity at a time when hostility is the norm in many countries. Indonesia is a major producer and consumer of tobacco products. In 2022, the country’s tobacco growers harvested 225.58 million kg of leaf, and its cigarette companies produced more than 330 billion sticks, according to the Ministry of Agriculture and the association of white cigarette producers in Indonesia, Gaprindo. The tobacco industry and its supporting sectors employ almost 6 million workers and contribute nearly 11 percent of the country’s total tax take. E-cigarettes and tobacco-heating products (THPs) have been making steady inroads in Indonesia, too, lately, especially in urban areas.

    On top of that, Indonesia offers a conducive industrial environment for the e-cigarette business. The country is endowed with abundant natural resources, including nickel and copper, which are key materials in battery production. Keen to move beyond mineral extraction, the government has been pushing domestic production of power cells for electric vehicles and other applications.

    The economic significance of tobacco to Indonesia means not only that the country welcomes new initiatives in the sector but also that it has a workforce accustomed to handling nicotine products. What’s more, Indonesia offers good logistics and a favorable investment climate. According to Shen, the latter factors are important because Smoore is keen to localize its supply chain as much as possible. Encouragingly, Indonesia’s business-friendly environment is expected to endure regardless of who wins next year’s presidential elections, as none of the candidates running for office appear inclined to reverse the policies that have allowed Indonesia to become one of the world’s fastest-growing economies.

    Perhaps the only hesitation was the uncertainty of how Smoore, as a Chinese company, might be received in Indonesia, where throughout history there have been episodes of tensions between the Indonesian people and the country’s ethnic Chinese community. Smoore’s subsequent experience, however, demonstrated that people, regardless of their background, will generally treat you as well as you threat them: The company’s sincere effort to understand the local culture and respect local customs was reciprocated with fierce loyalty from a dedicated workforce. Local authorities, meanwhile, went out of their way to accommodate the investment. When Smoore inaugurated its facility in June 2022, Indonesia’s minister of investment attended as a guest of honor.

    Remarkably, labor cost did not feature prominently in Smoore’s decision to set up shop in Indonesia. While an affordable payroll is a nice side benefit, according to Shen, the company’s focus on automation made the price of labor a less important consideration than it might have been for a less advanced player.

    Smoore continues to enjoy a significant lead in this area, having set up its automation division in 2014, when manual production still prevailed in the sector. According to Shen, two developments accelerated automation—the debut of ceramic heating in 2016 and the U.S. premarket tobacco product application process. The first replaced the easily deformed wick with a more solid structure, which is easier to work with from a design perspective. The second made it cost-prohibitive to keep changing products for the all-important American market, resulting in a more predictable form factor.

    Smoore’s factory in Indonesia is one of the most sophisticated and highly automated in the world.

    The Yunnan of Indonesia

    Having decided on Indonesia, Smoore had to pick a city. Should it be Jakarta, Indonesia’s administrative and financial capital, or perhaps Surabaya, with its large industrial base and busy port? In any event, Smoore chose Malang, the capital of the larger Malang regency in the province of East Java. Though smaller than Jakarta or Surabaya, Malang is strategically located with good connections to the port of Surabaya and other key cities. In addition to reputable universities, the town has a strong tobacco heritage, with leading players such as Sampoerna, Djarum and Bentoel operating in the region. “Malang is the Yunnan of Indonesia,” says Shen, referring to China’s leading tobacco-producing province.

    The other consideration that made Malang an appealing choice was the fact that BAT had a piece of land available along with empty buildings that used to house a tobacco factory. This provided Smoore not only with suitable facilities but also placed it in proximity to a prominent customer. BAT’s Bentoel subsidiary continues to manufacture tobacco products on the other side of the road.

    The first team from China, which included the project leadership, construction specialists and human resource recruiters, arrived in Malang in November 2021, around the time that the Omicron Covid variant started doing the rounds. While Indonesian pandemic restrictions were less severe than those in China, employees among the first group still had to quarantine in Jakarta for up to 10 days. Shen was luckier. By the time he arrived as part of the second group, Indonesia had relaxed its isolation requirements.

    Nurturing Talent

    Initially, recruitment appeared to be a challenge. Although Indonesia has a large, well-educated workforce and plenty of experience with tobacco products, Smoore was the first e-cigarette company in the country, and there was no readily available workforce for that segment.

    “We found that the people here had good experience in other industries but no idea about e-cigarettes,” says Shen. In addition, getting people to relocate for work proved a harder sell in Indonesia than it is in China. “In China, it’s easy to convince people to leave other cities for job opportunities in Shenzhen,” says Shen. “Pursuading candidates to move from Jakarta or Surabaya to Malang turned out to be more challenging.”

    So Smoore decided to set up its own training programs. “We went to the local universities and recruited students who were about to graduate,” says Shen. Then we trained them not just in one department but allowed them to rotate based on their university major and their personal interests and capabilities. After one year of training, we sent them to the appropriate position, whether that be in engineering, quality control or in another department.”

    This approach not only creates well-rounded employees but also nurtures a pool of future leaders—an important benefit for a rapidly growing company like Smoore. “For many of our people, Smoore is their first employer; they will be heavily impacted by our culture, and they will grow up very fast,” says Shen. “We believe that, within three [years] to five years, many of them will move into key positions—an opportunity that is not always available in established companies where all the leadership functions have already been filled.”

    The investments in people appear to be paying off. When a delegation of senior Smoore officials from Shenzhen visited the Indonesia facility, they asked employees from various departments for honest feedback. According to Shen, 95 percent of respondents indicated that they felt proud and comfortable working for Smoore.

    Growing the Pie

    Such levels of employee satisfaction bode well as Smoore expands. While the facility across the road from Bentoel currently supplies BAT, the company is keen to serve other customers from Indonesia as well. For that purpose, it has been building a second factory at a different location, which at the time of writing was nearing completion.

    By spreading its geographical footprint, Smoore has boosted the resilience of it business. With manufacturing capabilities in both China and Indonesia, the company not only offers security of supply but also allows U.S. customers to avoid costly import duties. Other Chinese e-cigarette companies have taken note, and some have also started exploring the option of setting up shop in Indonesia. For the time being, however, most of Smoore’s competitors are limiting their activities to Bantam, a special economic zone just south of Singapore.

    Shen is unconcerned about such actions. “We never worry about competitors because we want to make the industry bigger,” he says. More e-cigarette manufacturing in Indonesia also makes it more interesting for suppliers to establish operations there, which in turn will benefit Smoore. In a testimony to the company’s strategic relationships, three of its Chinese suppliers also came to Indonesia when Smoore set up shop there—but there’s always room for more. “Ultimately, our goal is to grow the pie,” says Shen.

    Taco Tuinstra is Tobacco Reporter’s editorial director.Based in Raleigh, North Carolina, USA, he coordinates the work of staff writers and contributors.On his watch, Tobacco Reporter has won several awards for editorial excellence.Since joining the magazine in 1997, Taco has visited more than 75 countries to meet industry representatives in their markets and to report tobacco news firsthand.
  • Smoore Demonstrates its Commitment at GTNF

    Smoore Demonstrates its Commitment at GTNF

    Eve Wang (middle) receiving the Golden Leaf Award for Innovation for VAPORESSO COSS (Photos: Smoore)

    A Golden Leaf Award and keynote presentation highlight the company’s investments in cutting-edge vaping technology.  

    At the recent Global Tobacco & Nicotine Forum in Seoul, Smoore earned a Golden Leaf Award and proposed a framework to help the industry “innovate through challenges.”

    The atomization company was recognized for its Vaporesso COSS, which stands for “Convenient Operating and Smart Supplying,” according to Smoore.

    “One of the major pain points for vapers is the trade-off between e-liquid or battery endurance and convenience,” explained Smoore Vice President Eve Wang upon receiving the award. “Typically, the longer it lasts, the less convenient it becomes. That is why COSS was introduced. It keeps you powered up and well-supplied with its smart supplying system. Additionally, thanks to its coil-e-liquid separation design, it’s also leak-resistant, ensuring a fresh puff every time.”

    In thanking the GLA judges, Wang promised Smoore would keep pushing forward and innovating.

    The company’s commitment to innovation was also demonstrated in Wang’s keynote speech at GTNF.

    She started by giving an overview of development of vapor products over the past 20 years and summarizing the biggest current challenges—preventing underage vaping and minimizing the environmental impact of vaping products.

    According to Wang, vaping efficiency is a combination of atomization efficiency and power efficiency. “For atomization efficiency, there are several key factors to be considered, such as e-liquid supply, the physical and chemical process atomization, as well as the technology for aerosol generation and distribution,” she explained.

    “We have seen some promising results in these areas,” she said. “If we translate it into consumer benefits, atomization efficiency is fully utilizing e-liquid for good taste, more puffs and improvement in cost effectiveness. Power efficiency translates into increased energy density; therefore we are able to reduce the battery size as small as possible. It means less impact to the environment and a longer life cycle.”

    Wang then shared the contributions to vaping efficiency made by Smoore’s Feelm Max, Feelm Air and Power Alpha products.

    She concluded her speech by encouraging stakeholders to keep innovating and evolving the technology to improve harm reduction, cost-effectiveness and sustainability, along with providing a better user experience. Wang urged her audience to harness collaborations in innovation and social responsibility to achieve a balanced solution between regulation and user experience. Following her speech, Wang moderated a panel titled “Innovating Products for the Future.”

    Eve Wang (left) as moderator

    Later that day, Smoore Senior Strategy Director Rex Zhang joined a group of panelists to provide an update on research and innovation relating to next-generation products.

    Zhang detailed Smoore’s advancements in sustainability and vaping efficiency. The company, he said, had reduced the amount of lithium materials in its vaporizers and increased the lifespan of its products, thus reducing the environmental impact of disposables.

    Demonstrating Smoore’s commitment to preventing underage vaping, Zhang highlighted the Feelm Max’s smart child lock. Once an adult user puts down the vape and doesn’t use it for a while, the atomizer will automatically lock, he explained. If a child subsequently attempts to use it, the device will not produce vapor. To reactivate the device, an adult user must suck on the mouthpiece three times within two seconds.

    Zhang also spoke about the importance of regulatory compliance and the user experience. He expressed confidence that science would demonstrate the potential of electronic nicotine devices as tobacco harm reduction tools.

    Going forward, Smoore innovation efforts will focus heavily on vaping efficiency, Zhang explained. “It is our internal thinking—the engine driving us forward to achieve more,” he said. “Smoore’s mission ‘Atomization Makes Life Better,’ aligns very well with this objective to continue to work on the R&D; improving it for bettering people’s life.”

    Rex Zhang (third from right) as panelist
  • Executive Experience

    Executive Experience

    Photo: Smoore

    Eve Wang, vice president of the world’s largest atomization company, shares her vision for vaping.

    By Timothy S. Donahue

    The largest atomization technology company in the world is Shenzhen Smoore Technology Co. Based in Shenzhen, China, the company has maintained its position as the global leader in the atomization technology market since the beginning years of the vaping industry.

    Smoore has seen significant growth since its establishment in 2009 and operates three atomization businesses: nicotine delivery (including vaping and heat-not-burn), medicinal applications and healthcare.

    Within the nicotine-delivery business, Smoore’s technology brand, FEELM, holds a prominent position as one of the industry’s leading closed-system vaping solution providers. This diverse business structure allows Smoore to deliver innovative solutions across multiple industries to meet several varied consumer needs.

    Earlier this year, the international ESG rating agency Sustainalytics awarded Smoore International Holdings, parent to the FEELM and Vaporesso brands, the top position among global electronic atomization companies. Smoore consistently ranks first among global electronic atomization companies in the ESG ratings published by MSCI, the world’s largest index company.

    Tobacco Reporter invited Eve Wang, vice president of Smoore, to share her vision for the vaping industry and her insights into how Smoore will move forward as atomization technology continues to improve and develop into various marketplaces beyond the vaping industry.

    Tobacco Reporter: As an atomization technology solution provider, how important are Smoore’s investments in R&D?

    Eve Wang: Centered on Smoore’s mission of atomization makes life better, we have a long-term approach to everything we do and believe that continuous technological innovation is the only approach to develop the atomization industry. Last year, Smoore invested £160 million ($199.5 million) in R&D, which accounted for 11.3 percent of the total revenue in 2022. This investment has resulted in 2,254 new patent applications worldwide, including 1,125 invention patents.

    Our commitment to continuous technological advancement is best shown by the fact that we employ 1,500 R&D personnel, which accounts for more than 40 percent of our entire nonproduction workforce.

    As a young and developing industry, constant R&D in both technology and manufacturing is vital to drive growth and ensure the highest quality standards. Our professional testing facilities feature more than 700 different types of testing equipment, valued at over £23 million, and we have many partnerships with leading research institutes and analysis laboratories to complement our already comprehensive testing capabilities. We have developed the world’s first fully automation pods production line, and our ceramic coil disposable automation line is not only the world’s fastest but also allows our products manufactured by FEELM to achieve a first pass yield of over 99.5 percent.

    Looking toward the future, Smoore is exploring how to apply vape atomization technology within the healthcare sector, and our dedication to cutting-edge research and development, regulatory compliance and superior consumer experience supports our commitment to the longevity and sustainable growth of our business.

    Is Smoore seeking to invest beyond the vaping industry?

    We keep exploring the boundaries of innovation and the application of atomization technology in new application scenarios, such as medicinal and healthcare sectors. For example, last year in China we registered a ventilator in combination with an atomization drug delivery device and successfully obtained the production license for this technology.

    We have also set up a team in the United States which has developed two drug delivery devices targeting asthma and chronic obstructive pulmonary disease and started the development of relevant medicinal preparations.

    How do you see the vapor industry developing, and what will be the biggest growth areas in terms of technology and geography?

    According to a report by Frost and Sullivan, the global retail market for e-vaporization is expected to reach $122.2 billion by 2027. It is expected that in the long run, companies that prioritize regulatory compliance and harm reduction while also focusing on consumer experience will emerge as the ultimate winners.

    However, as an emerging industry aimed at assisting smokers toward a smoke-free society, e-cigarettes are still in their infancy and face a range of challenges which makes it crucial for all stakeholders in the industry to collectively provide the best possible harm reduction solutions for current adult smokers.

    Therefore, we have developed and launched a new 2 mL e-liquid compliant disposable solution to provide 800 puffs with the innovative technology FEELM Max, where conventional products typically provide around 600 puffs.

    How is the FEELM Max technology different from that used in conventional products?

    As the world’s first ceramic coil disposable solution, FEELM Max benefits from a cotton-free design that, with a compliant e-liquid volume of 2 mL, can provide 800 puffs whilst current solutions offer 600 puffs. This is a significant step toward setting a new industry compliant benchmark for 2 mL.

    In addition to more puffs, this innovative heating technology is designed to bring cleanness and silkiness, ensuring a satisfying experience for consumers. Our constant power technology provides a vapor and taste consistency, and together with a transparent e-liquid tank design offers an enhanced consumer experience.

    The ceramic coil is like an electric car, symbolizing a more advanced technology. Several major brands have already adopted our new technology, recognizing that differentiation is key in a competitive market. We are committed to providing superior vaping experiences that meet the evolving needs of consumers around the world.

    What is the largest market for Smoore and its subsidiary’s products?

    In 2022, Smoore’s global enterprise customer business revenue was £1.22 billion, with the U.S. market ranking first, accounting for 35.4 percent. The revenue share of Europe and other markets increased from 24.1 percent in 2021 to 43.6 percent in 2022, up by 19.5 percentage points. Smoore will continue to provide technology solutions and products worldwide, all tailored to fully comply with all local regulations.

    What are Smoore’s concerns about the growth of noncompliant products in the marketplace?

    We believe that effective regulation is vital for sustainable growth and that proportionate regulation can support the industry’s evolution.

    However, the presence of noncompliant or counterfeit products entering the U.K. market is a significant concern for us. These products not only pose potential health risks to consumers but also bring negative effects on the long-term development of the vaping industry. These illicit products can discourage innovation and deter potential investments in research and development, hindering the industry’s ability to evolve and improve.

    Like any industry, there are always those who operate illicitly. However, it is vital that the responsible majority within our sector, together with government, regulators, enforcement bodies, trade associations and partners, collaborate on initiatives and share intelligence to eradicate illegal and noncompliant vapes. This collective effort is necessary to ensure that the sector’s reputation is not only maintained but also improved.

    We believe in maintaining the very highest product standards whilst also being fully compliant in all local markets in which we operate. That’s why we have developed and launched the 800-puff compliant disposable vape: FEELM Max. FEELM Max represents a commitment to both technological innovation and regulatory compliance, moving the vaping industry forward in a responsible and sustainable way.

    Many vapor products that have been authorized for marketing in the U.S. were developed by Smoore. What is the secret behind Smoore’s high share of Food and Drug Administration marketing orders?

    Smoore is always committed to full regulatory compliance and product quality. In 2022, out of over 6.7 million e-cigarette product listing applications, the FDA only approved eight from JTI, nine from R.J. Reynolds Tobacco and six from Njoy. Smoore, as the atomization technology manufacturer, has aided the most clients in the ENDS [electronic nicotine-delivery system] category to pass the PMTA [premarket tobacco product application] process.

    Last September, Smoore had the distinction of being invited to an industry meeting convened by the commissioner and director of the Center for Tobacco Products. We actively engaged in explorations and discussions regarding the future of a more compliant and sustainable vaping industry.

    Smoore’s achievements stem from the long-term focus on the improvement of atomization technology and the commitment to innovation, compliance and product safety; we always deliver user-centric and user-friendly technologies and products to clients, consumers and industry.

    As the FDA commented when approving one of the closed-system pod vaping products: “It met the standard because, in several key considerations, chemical testing is sufficient to determine that the levels of harmful and potentially harmful constituents in the aerosol of these products are lower than those in the smoke from combusted cigarettes.”

    What is Smoore/FEELM’s strategy for the disposable market?

    The disposable vape has been a widely accepted product in the e-cigarette market. Even as far back as 2018, when closed-system vapes dominated the industry with a 72 percent market share, it was predicted that disposables would account for more than 70 percent of the closed-system market over the next five years.

    However, such rapid growth inevitably leads to challenges, and the market has seen a proliferation of noncompliant products and counterfeits, coupled with problems such as the illegal overfilling of e-liquids and the quality issues from the black market, as reported by the BBC. These issues have sounded alarm bells across society, calling for superior, compliant and healthier solutions.

    How will Smoore confront the challenges associated with disposable products, such as environmental concerns?

    As the first Chinese e-cigarette company to be included in the Dow Jones Sustainability Index, Smoore aims to minimize any environmental impact from our operations and products as much as possible.

    In May 2022, we officially launched our carbon neutrality plan, setting a net-zero target by 2050. We will continue to increase the use of renewable energy in our operations, aiming for 50 percent energy consumption from renewable sources by 2030.

    Whenever I come across a discarded disposable vape on the ground, I will pick it up and bring it back to the company, where my colleagues can professionally process and recycle it. But more needs to be done to encourage active participation by consumers in recycling their vapes. Therefore, we have launched the industry’s first end-to-end whole-chain recycling scheme, including manufacturers, brands, retailers, the Royal Mail and waste management specialists, Waste Experts.

    Working closely with our clients, we have created a household collection service whereby consumers who return 10 or more old disposable vapes for recycling will receive a free disposable product incorporating our latest technology as a reward.

    What do you consider to be Smoore’s greatest industry innovations?

    The cotton coil is widely adopted within the vaping industry, and there are many challenges that affect the consumer experience.

    Smoore drew inspiration from traditional Chinese ceramic making to develop the ceramic technology. We discovered that, compared to the cotton coil, the ceramic coil has advantages such as high thermal efficiency, leakage prevention and the ability for planned automated production as well as delivering strong taste consistency.

    Therefore, in 2014, Smoore initiated research into ceramic heating technology, and in 2016, Smoore’s ceramic coil technology brand FEELM was officially launched in the market, aiming to “feel the moment of vaping” and representing our long-term commitment to vaping sensory and technology. Today, FEELM has already become a very well-recognized tech brand by the industry, especially for ceramic coil technology. Since 2018, we have shipped over 3.5 billion pod products worldwide, and we cover more than 50 different countries and regions.

    We remain devoted to our mission of improving public health through the advancement of atomization technology.

    What are the greatest challenges facing the global e-cigarette industry, and how is Smoore helping solve those challenges?

    Smoore recently commissioned a survey, which was conducted by One Poll, among 2,000 adult smokers. The results revealed that 42 percent of respondents had little or no trust in e-cigarettes. Meanwhile, nearly two-thirds (62 percent) believed that e-cigarettes were more harmful or at least as harmful as traditional cigarettes whereas evidence from the Office for Health Improvement and Disparities highlights that e-cigarettes are at least 95 percent less harmful than smoking.

    That’s why we have established an independent panel of experts in science, smoking cessation and compliance to look at creating a new rating system that will allow adult smokers and vapers to make informed decisions about their choice of vapes based on their harm reduction profile.

    We are committed to innovating alternatives to traditional smoking, to reducing harm and to benefit public health. We strongly believe in the potential of e-cigarettes to provide a viable and less harmful alternative for smokers who struggle to quit.

    Smoore hopes to fulfill our mission: Atomization makes life better—better for our clients and consumers. We aim to achieve this by providing better technological solutions and products in the future in novel tobacco, medicinal and healthcare fields.