Simo International (06969.HK) has continued to have a setback on high growth. The performance of the company in the fourth quarter of last year has declined, and the company's stock price has recently responded to this information. The Misto Core technology listed on US stocks has also been implicated, and the performance of poor performance in the fourth quarter of last year is becoming increasingly clear.

Recently released the performance trailer released by Simo International shows that the total revenue achieved in 2022 was 2.305 billion yuan -2817 billion yuan, a year-on-year decrease of 46.7%-56.4%; the adjustment of the adjustment was 2.385 billion yuan -2897 billion yuan, a year-on-year decrease of 46.8--66.8--66.8--66.8--66.8--66.8- 56.2%.

The net profit of the year fell half, of which the fourth quarter decreased more year -on -year. From January to September 2022, the company's adjustment of net profit was 2.157 billion yuan, a decrease of 48.9%over the same period last year. In the fourth quarter of Simo International, the scale of net profit was between 228 million yuan and 740 million yuan, and the same period last year exceeded 1.2 billion yuan.

Simo International explained that the main reason for the decline in performance was the decline in revenue from the Chinese market and the US market in the 2022 fiscal year.

These two markets are the main markets of Simo International. Among them, the rear growth rate of Simo International in Mainland China in 2016-2021 is as high as 115.1%, and its growth is rapid. It is an important support for the growth of Simo International's performance.

Last year was the year of densely released the policy of China's electronic cigarette industry. Electronic cigarettes were included in the management of the State Tobacco Monopoly Bureau. In the fourth quarter of 2022, they entered the era of new national standard products. The market can only sell tobacco flavors. More obvious.

At present, the domestic regular market is left out, and the black markets that can sell various flavors are rampant. The one -time electronic cigarette that is more convenient for saving trouble is popular from abroad to domestic and sneaked in the black market.

This also directly affects the performance of Wuxin Technology. Wuscin Technology is the core customer of Simo, deeply cultivating the domestic market, and promoting domestic electronic cigarette popularity. Simo International said that domestic business revenue has declined, which means that the order of fog core technology decreases, and the decline in the revenue of fog core technology may be relatively large.

Simo's international gross profit margin decreased year -on -year. The company said that the price of individual customers was mainly due to 2022.

This should also occur mainly in the fourth quarter of last year. The government will levy consumption tax. According to the Securities Times · E Company reporter, the proportion of taxes and fees in the sales price of e -cigarettes was 40%. For the collection of circulation, it is not directly targeted at Simo International. Simo International has announced that the company has accepted electronic cigarette brands commissioned by electronic cigarette brands in mainland China.

However, after the collection of electronic cigarette consumption taxes, most of the electronic cigarette brands have raised product prices, digested taxes, and compressed their own profit margins. In particular, when the sales volume declines, the industrial chain needs to be losses averaged, brand owners have forced manufacturers to reduce prices, and the entire industry has risen costs.

In addition, the one -time atomization business with a low international gross profit margin of Simoore has increased significantly, and the proportion of overall business has increased. This Moore International has explained in previous announcements. However, the company's one -time electronic cigarette is popular, and the company has to follow up.

All signs show that the high -grim price system established by Simo International by ceramic atomization core has been impacted. The gross profit margins of Simo International and Wuscin Technology in 2021 reached 53.6%and 43.1%, respectively. Such high gross profit was difficult to maintain.

It is reported that electronic cigarette companies such as Wuscin Technology will be reduced in April, and the price reduction range ranges from 12%-15%. This may be due to the continuous decline in market sales and the need to reduce prices. On the other hand, the company has room for price reduction after the upstream price reduction of the industrial chain.