Two months ago in the U.S. shares listed on the head of the electronic cigarette brand – Yue Qiao parent company fog core technology, the share price plunged from $ 19.46 the day before to $ 10.15, a drop of 47.84%. Its market value evaporated $14.4 billion (about RMB 94 billion) overnight.
In early trading on March 23, A-share e-cigarette concept stocks generally plunged. Yueh-Cheng distributor AISD opened directly down, and SiMore International’s major shareholder, Yewei Lithium, plunged 15.41%.
Hong Kong stocks of electronic cigarette-related sectors also fell in response. E-cigarette manufacturer Seymour International, down more than 30% shortly after the opening, the market value once evaporated nearly 100 billion Hong Kong dollars, its current market value of less than 300 billion Hong Kong dollars. China Bolton plunged 20.72%.
As one of the representatives of the traditional tobacco industry, China National Tobacco Company’s China Tobacco Hong Kong shares opened up nearly 15%.
Although it is still in the “consultation” stage, but the country’s determination to control electronic cigarettes has been very obvious. The industry, which has created a myth of riches, will also usher in a new round of reshuffling.
In the note on the implementation of the Tobacco Monopoly Law to amend the regulations, the Ministry of Industry and Information Technology has elaborated the main considerations behind: First, in order to promote the rule of law in the regulation of electronic cigarettes.
First, to promote the rule of law in the regulation of electronic cigarettes.
Second, in line with the characteristics of electronic cigarette products and the current international regulatory practices.
Third, to enhance the effectiveness of electronic cigarette regulation.
Previously, it has repeatedly issued relevant regulations to gradually upgrade the control of e-cigarettes.
In late 2019, China’s State Administration of Market Supervision and the State Tobacco Monopoly Administration jointly issued a “Notice on Further Protection of Minors from Electronic Cigarettes”, announcing a ban on the sale of e-cigarettes on the Internet. The move instantly cooled the e-cigarette industry, which was then selling hot online, and e-cigarette brands rushed offline.
In October 2020, the newly revised “Protection of Minors Law” was passed, which for the first Time explicitly prohibits the sale of e-cigarettes to minors, and the regulations will come into effect on June 1 this year.
Compared to previous initiatives, this direct reference to “the relevant provisions of the traditional cigarette” to manage, obviously a larger area, but also stronger.
According to the Tobacco Monopoly Law, the current regulations governing traditional cigarettes require special licenses for the production, distribution and retail sale of traditional cigarettes, corresponding to a tobacco monopoly manufacturer’s license, a tobacco monopoly wholesale enterprise license and a tobacco monopoly retail license.
If implemented, what changes will be brought to the R&D, production and sales of e-cigarettes?
Shanghai Zhengze Law Firm lawyer Dong Yizhi told the media that the most obvious impact will be the sales chain, now some brands have tens of thousands of outlets, “these stores are likely to be washed away this wave. As for the production chain also has a certain impact, “If it is a monopoly, the entire production chain must also be related to the license.”
In 2003, a Chinese named Han Li applied for and received a patent for the invention of “a non-combustible electronic atomized cigarette”, which is today’s electronic cigarette, he is also known as the “father of the electronic cigarette”.
Han Li opened the floodgates for the global commercialization of e-cigarettes. His “Nu Cigarettes” were once a hit and were later acquired by Imperial Tobacco based in the UK. Although “such as smoke” is short-lived, but attracted countless believers, wave after wave of investors and entrepreneurs to Gold e-cigarettes. Shenzhen also produced more than 90% of the world’s e-cigarettes, becoming the “capital of electronic cigarettes.
The Ministry of Industry and Information Technology said that new tobacco products such as e-cigarettes and traditional cigarettes are not different in nature, especially in the core components, product features, consumption patterns and other aspects of homogeneity.
The survey found that e-cigarettes are very profitable. The electronic cigarette kit of 299 yuan of Yueh-Cheng, the cost of only 70 yuan.
On January 22 this year, the electronic cigarette brand Yueh-Cheng parent company fog core technology was established three years ago landed in the U.S. stock market, the day the market value reached 45.8 billion U.S. dollars. Last July, the world’s largest e-cigarette manufacturing company SiMore International listed in Hong Kong stocks, the market value was once more than 500 billion Hong Kong dollars.
Electronic cigarette industry head manufacturers and brands sitting on hundreds of billions of market value, agents also earn a lot of money. The head brand Yueh-Cheng relies on agents, laying out 100,000 stores and outlets offline and selling more than 100 million cigarettes last year.
Because of the low industry threshold, profit space, a large number of gold diggers into the electronic cigarette, the market was once out of control. In addition to offline, many people do electronic cigarette micro-business business, in the circle of friends widely offered cigarette advertising.
Many experts pointed out that electronic cigarettes contain nicotine, addictive and harmful. The current consumers are mostly young people or new smokers, many of them are minors.
Due to the lack of relevant laws, the reality of management also encountered a lot of embarrassment. For example, the campus stationery store selling electronic cigarettes in violation of the case, the market supervision and management staff said these products belong to electronic cigarettes, they can only cooperate with the Tobacco Board to deal with, while the Tobacco Board staff said “the preliminary judgment is not cigarettes, not a product under our jurisdiction, we have a cigarette retail license, we do not have this we will manage together with the industry and commerce “.
Recent Comments