He Kao's first thought upon receiving the Scenic Smoke was actually of Lan Jiwan.
Now that Lan Jiwan has broken through to Tier Four Cultivation, according to the traditions of the Magic Sect, she should be granted a suitable magical treasure by her master.
The Hidden Moth Gauze was only lent to her temporarily, He Kao still needed it himself, and there are other things that seemed shady. The only magical treasure He Kao could offer was the Xue Guanghan, and he initially planned to give her one.
But the Xue Guanghan is merely a supportive magical artifact and wouldn't be much use in magical combat. Would it make sense to use the beads like Flying Locust Stones to hit someone? Moreover, He Kao didn't have many Xue Guanghan left, having given one to Gao Xue'e and another to Lin Qingshuang.
