On April 12, the State Administration of market supervision and administration and the National Standardization Administration approved the mandatory national standard of electronic cigarette, which will be implemented from October 1, 2022.
Insiders said that this will fill the gap in the industry and end the production stage without national standards in China's e-cigarette industry for a long time, which is of great significance to the healthy development of the industry. Affected by the news, the U.S. stocks of e-cigarette giant fog core technology rose sharply by more than 14% and closed down to 1.6%.
it took five years for the national standard of electronic cigarette to be approved and implemented
It is understood that the national standard formulation plan of e-cigarette was issued in October 2017. The project progress has been officially released after several stages of online publicity, drafting, soliciting opinions, review, approval and release. It is basically consistent with the second exposure draft of e-cigarettes released in March this year. The production and circulation of e-cigarettes in China will be implemented in accordance with the requirements of national standards.
According to the disclosure, the national standard of e-cigarettes released this time has made detailed standard provisions on the taste, use safety and minor protection of e-cigarettes, additives in the production process and so on. For example, the design of atomization should not induce minors, and should not make the characteristic flavor of the product show other flavors except tobacco; The electronic cigarette set and cigarette cartridge of electronic cigarette liquid shall have a closed structure to prevent artificial filling; Electronic cigarette sets and cartridges using electronic cigarette liquid shall have good sealing and shall not leak liquid; The electronic cigarette set shall have the function of preventing children from starting and preventing accidental starting; The white list of additives is reduced from 122 to 101. The concentration of nicotine in atomized materials shall not be higher than 20mg / g and the total amount of nicotine shall not be higher than 200mg.
At the same time, the compulsory national standard of e-cigarette strictly stipulates the release amount of formaldehyde, acetaldehyde, acrolein and other substances in e-cigarette emissions.
This also means that the e-cigarette industry will have standards to rely on. From October 1, e-cigarette products must be produced in accordance with the national standards and enter the national transaction management platform for sales and circulation.
On March 11 this year, the State Tobacco Monopoly Administration issued the measures for the administration of e-cigarettes, proposing that the sale of flavored e-cigarettes other than tobacco flavor and e-cigarettes that can add atomization by themselves will be completely prohibited from May 1. This news is regarded as that the e-cigarette will officially "take off the sugar coating", and the flavored e-cigarette is about to withdraw from the market, which has also triggered hot terminal sales. Recently, a reporter from China Securities Journal visited a number of e-cigarette brand stores and found that at present, some popular flavor cigarette cartridges offline have been sold out, and many e-cigarette sales stores have run out of popular flavor cigarette cartridges.
e-cigarette giant shares rebound
Affected by the news of the introduction of the national standard, on April 12 Beijing time, fog core technology, the parent company of China's electronic cigarette brand Yueke, rose more than 30% before the US market. As of the close, the increase narrowed to 1.6%.
Analysts believe that the concentration of e-cigarette industry is expected to increase again, and leading enterprises will usher in development opportunities.
Fog core technology was founded in 2018. Shortly after its establishment, it received a total investment of 38 million yuan from source capital, IDG capital and Sequoia China. Fog core technology, which obtained capital support, was successfully listed on the New York Stock Exchange in only three years. According to the data, the share price of fog core technology rose sharply on the first day of listing, closing at US $29.51/share, with a market value of US $45.8 billion, equivalent to 300 billion yuan.
According to the financial data previously disclosed by fogcore technology, in 2021, the company achieved an operating revenue of 8.52 billion yuan (US $1.34 billion), a year-on-year increase of 123.1%; Under non US GAAP, the adjusted net profit for the whole year was 2.25 billion yuan (US $350 million), a year-on-year turnaround, an increase of 181.1%; The gross profit margin of the company was 43.1%, compared with 40% in the same period last year.
However, in the face of stricter industry supervision, the market value of fog core technology has fallen all the way. As of April 12, the market value of fog core technology has fallen by more than 90% compared with the beginning of listing.
e-cigarette bid farewell to "savage growth"
Previously, China's e-cigarette industry experienced four years of brutal growth. Insiders said that the introduction of the national standard will officially open the industry reshuffle and standardize the development of the whole industry.
In 2019, with the popularity of capital, a number of brands such as Yueke, Xuejia, Ono and grapefruit emerged. 2019 is also known as the first year of the development of China's electronic atomizer. After that, the electronic cigarette industry began to grow savagely and expand rapidly.
According to the 2021 e-cigarette industry blue book, there are nearly 190000 e-cigarette retail stores in China, including 138000 authorized stores, 47000 specialty stores and 5 Jiangnan Mould & Plastic Technology Co.Ltd(000700) 0 collection stores.
According to the "2021 e-cigarette industry blue book" released by the e-cigarette Industry Committee of China Electronic Chamber of Commerce last December, the Chinese market scale (retail) of e-cigarettes in 2021 is estimated to be 19.7 billion yuan, a year-on-year increase of 36%; The global market size (retail) is estimated to be US $80 billion, with a year-on-year increase of 120% and a three-year compound growth rate of 35%. In 2021, China's total export of e-cigarettes reached 138.3 billion yuan, a year-on-year increase of 180%.
