SMOORE INTL's stock soared 5.72% during the morning trading session, reflecting a significant positive market reaction to recent regulatory developments.

The surge follows an announcement from the Ministry of Finance and the State Taxation Administration clarifying that the value-added tax (VAT) export tax rebate for several product categories, including e-cigarettes, will be canceled effective April 1, 2026. Analyst reports suggest this policy adjustment is viewed as a catalyst that will speed up industry consolidation, ultimately benefiting large, compliant enterprises with scale and technological advantages over the long term.

While SMOORE, which has deep ties with leading brands, may experience short-term earnings pressure from the policy shift, its market position is expected to strengthen further in the long run. The phase-out of the tax rebate incentive is also seen as beneficial for helping the industry gradually escape the quagmire of price wars.