According to the news on July 24th, Smoore, a well-known domestic e-cigarette supply chain manufacturer, had recently completed a new round of financing with a valuation of nearly 20 billion yuan, including Coatue and Vision Knight Capital, a world-renowned hedge fund.
Hedge funds are involed, valued at nearly 20 billion yuan
Smoore originally belonged to the new third board listed company. On June 5 this year, Smoore officially delisted from the new third board, ready to switch to other stock exchanges, with a market value of 8 billion yuan before delisting.
Before the 20 billion yuan valuation, Smoore’s last valuation was about 12 billion yuan, just over a month ago, and the current valuation has approached 20 billion yuan. It is not clear whether the two investments entered at a valuation of $12 billion or $20 billion.
Coatue is a major investor in the high-tech, media and telecommunications industries, with an asset management scale of about $10 billion. The main investment projects in China are VIPKID, Voice Network, Far to Go, Mei Tuan, Youxinpai, Anhoneycomb, OFO, Homework Party, BitContinental and other companies.
Founded in 2011 by former Alibaba CEO Wei Zhe, Jiayu Fund is an investment fund focusing on the Internet, new channels and consumer brands, with a total management assets of more than 10 billion RMB. Major investment projects include Gordon Education, Blued, Jingdong Finance, Wheels, Housing, etc.
According to sources, Coatue is the lead investor in this round.
Smoore’s net profit in 2018 was 785 million yuan
Smoore was founded in 2006, and was changed into a limited company in 2015. At present, the actual controller is Chen Zhiping, who holds 39.17% of the shares and is a controlling shareholder. A-share listed company Yiwei Lithium Holdings 38.51%. Another co-founder is Xiong Shaoming, which owns 5.97% of the company. At present, the company has about 7000 employees.
Smoore is mainly engaged in the research, development, production and sales of electronic atomizer and open electronic atomizer APV. Its business model is the dual-engine driving mode of ODM+APV.
ODM business model is the traditional sector, which produces electronic atomization products for main overseas large tobacco companies.
The self-owned brand business model is mainly based on the distribution model of overseas APV atomization device exclusive stores, while the Vaporesso series products are mainly sold in overseas markets.
Smoore’s well-known product in China is FEELM atomizing core, including RELX and other electronic cigarette brands are by Smoore OEM.
Smoore’s revenue in 2018 was 3.434 billion yuan, an increase of 119% year-on-year, and net profit of 785 million yuan, an increase of 257% year-on-year.
According to the annual report of 2018, Smoore applied for 255 patents in the current period, 838 patents at the end of the reporting period, 175 patents at the current period and 456 patents at the end of the reporting period. Among them, there were 78 applications for invention patents in the current period, 360 applications for invention patents at the end of the reporting period, 51 authorizations at the current period and 121 authorizations at the end of the reporting period.