One side of the story: founder Chen Zhiping earns close to RMB 10 million a year, far ahead of peers in the vaping industry.
The other side: Smoore has poured nearly RMB 7 billion into R&D over six years.
At first glance, these numbers seem disconnected. In reality, they point to a clear and deliberate strategy: pay top dollar for decision-making talent, and invest heavily to secure long-term technological leadership.
More strikingly, Chen has tied his own upside to an ambitious market cap target—pushing Smoore to HKD 500 billion by 2030. That’s not just compensation; it’s a high-stakes bet on the company’s future.
Two Numbers That Define Smoore
1. Executive Compensation
In 2025, Chen Zhiping—Founder, Chairman, and CEO—earned RMB 9.855 million.
Other key executives:
- CFO Wang Guisheng: RMB 6.451 million
- Executive Director Xiong Shaoming: RMB 3.366 million
Compared to other listed vaping companies, Smoore’s executive pay stands out:
| Company | Top Executive | Annual Salary (RMB) |
|---|---|---|
| Smoore International | Chen Zhiping | 9.86M |
| China Boton | Wang Mingfan | 1.96M |
| JIAYAO Holdings | Yang Yong’an | 0.55M |
| RLX Technology | Wang Ying | 0 (cash) |
Even against broader Hong Kong tech firms, Smoore sits at the top tier.
2. R&D Investment
From 2020 to 2025, Smoore’s R&D spending reached approximately RMB 6.93 billion:
- 2020: 420M
- 2021: 670M
- 2022: 1.372B (+104%)
- 2023: ~1.5B
- 2024: 1.572B
- 2025: 1.523B
Extend the timeline to 2016, and total R&D spending approaches RMB 8 billion.
This isn’t random spending. It’s targeted, sustained investment in future growth engines.
Why Smoore Pays Its Founder So Much
The logic is simple: align incentives with long-term value.
A High-Stakes Equity Bet
In December 2024, Smoore granted Chen 61 million stock options at HKD 11.26 per share—but with strict conditions tied to market capitalization:
| Milestone | Market Cap Target | Unlock Ratio |
|---|---|---|
| Phase 1 | HKD 300B | 30% |
| Phase 2 | HKD 400B | 60% |
| Phase 3 | HKD 500B | 100% |
- Assessment period: 2025–2030
- If targets are not met by 2030, all options expire
To put this in perspective:
- At HKD 300B valuation → share price ~HKD 48.5
- At HKD 500B valuation → ~HKD 80.9
Before the plan was announced, Smoore’s market cap was only HKD 69.6B. That means a >300% increase just to reach the first threshold.
If successful, Chen’s options could be worth nearly HKD 5 billion.
This structure does two things:
- Aligns founder incentives with shareholders
- Forces long-term strategic discipline
It also sets a demanding target: roughly 28% annual compounded growth over six years.
Where the RMB 6.9 Billion in R&D Is Going
Smoore’s R&D isn’t spread thin—it’s focused on three core areas.
1. HNB (Heat-Not-Burn): A Decade in the Making
After ten years of investment, HNB is finally scaling:
- First large-scale commercial rollout in 2025
- Revenue exceeded RMB 1.2 billion
- Partnered with major global tobacco companies
The global HNB market is expanding rapidly:
- 2025: 204.1 billion sticks
- 2030: 351.7 billion sticks
- CAGR: ~11.5%
This is a long-cycle bet that’s starting to pay off.
2. Inhalation Drug Delivery: A Second Growth Curve
Smoore is also moving into medical technology:
- Established an inhalation drug R&D center in Florida
- Passed FDA pre-approval inspection (PAI) with EIR report
- Meets cGMP standards
The global pulmonary drug delivery market is expected to reach $93.3 billion by 2030.
If successful, this could redefine Smoore beyond vaping.
3. Improving R&D Efficiency
There are early signs of transition from “spending” to “earning”:
- 2025 R&D spending slightly down (-3.1%)
- R&D as % of revenue dropped from 13.3% to 10.7%
- Capitalized R&D rose to RMB 309M (vs 129M in 2024)
That shift suggests more projects are reaching commercialization.
Patent Moat: The Hidden Asset
By the end of 2025:
- Total patent applications: 11,309
- Invention patents: 6,066
- New filings in 2025: 2,056
This intellectual property portfolio forms a critical barrier to entry.
The “Human + Technology” Flywheel
Smoore’s strategy isn’t just about spending—it’s about creating a reinforcing loop:
| Engine | Input | Output |
|---|---|---|
| Decision Engine | High compensation + equity incentives | Long-term strategic alignment |
| Technology Engine | Heavy R&D investment | Breakthrough products (HNB, medical) |
| Valuation Engine | Commercialization | Revenue growth → market cap expansion |
Put simply:
Leadership drives R&D → R&D drives products → products drive valuation → valuation rewards leadership
Insider Buying: Confidence in Action
In 2025:
- Chen Zhiping increased holdings by over HKD 100 million
- Other executives followed
This isn’t symbolic—it’s real capital backing their own strategy.
Can This Model Sustain?
Three variables will determine whether Smoore’s strategy holds:
1. Speed of Commercialization
HNB is already contributing revenue. If medical applications scale, growth could accelerate significantly.
2. Profit Recovery
- Net profit fell 18.5% in 2025
- Gross margin dropped from 37.4% to 34.1%
Short-term pressure is real. But the key question is whether R&D continues to produce high-impact products.
3. Path to HKD 500B Valuation
As of April 2026:
- Share price is down over 90% from its 2021 peak
- Market cap has lost more than HKD 460B
That makes the target both daunting and meaningful.
Final Take
Smoore’s approach is unusually clear:
- High executive pay is about securing decision-making power
- Heavy R&D spending is about building long-term dominance
This isn’t a contradiction—it’s a coordinated strategy.
Chen Zhiping’s earlier career included failed bets. This time, the wager is different: it’s backed by a decade of technology accumulation in HNB and inhalation medicine.
Whether Smoore can reach HKD 500 billion by 2030 remains uncertain. But one thing is clear—the company isn’t playing for short-term gains.
It’s building for scale, defensibility, and long-term control of its industry.