On April 11, the high-profile compulsory national standard for e-cigarettes (hereinafter referred to as the "national standard for e-cigarettes") was officially released. This also means that China's e-cigarette has ended the production stage without national standards and entered a new stage.
The new national standard for e-cigarettes announced that from October 1 this year, all e-cigarette products must be produced in accordance with the national standard and added in limited quantities in accordance with the 101 additives allowed by the national standard.
In addition, on April 1, the United States federal medical marijuana legalization Act (more act) was approved by the house of representatives for the second time, expanding the scope of marijuana legalization. At the same time, Chinese enterprises will benefit from the new layout of marijuana and electronic cigarettes.
deregulation of industry regulation and accelerated layout of consumption giants outside China
On April 1, the United States federal medical marijuana legalization Act (more act) was approved by the house of representatives for the second time, which includes the removal of marijuana from the list of some controlled items and the support of bank loans to marijuana enterprises, which also means that the international market has ushered in a broader space.
By the end of 2021, 19 states in the United States (including Washington, D.C.) had legalized adult marijuana and 39 states had legalized medical marijuana. Now, with the expansion of the legal market scope of marijuana, the enterprises in the layout of the track also ushered in greater market opportunities.
According to the data of new frontier data, the legal cannabis market in the United States was US $27 billion in 2021. With the continuous progress of legalization in various states, it is expected that the legal market in the United States will reach US $72 billion in 2030 and the CAGR will be 12% from 2022 to 2030. In addition, according to the data of global market insights, the global CBD market will be US $12.8 billion in 2021, and the CAGR is expected to reach 22% from 2022 to 2028.
Tianfeng Securities Co.Ltd(601162) believes that with the continuous improvement of the regulations and policies of industrial marijuana in the United States, the market is expected to expand rapidly, which will benefit the enterprises related to the industrial chain, especially the OEM and brand enterprises with large-scale production capacity, or will usher in rapid development opportunities.
In fact, before the United States deregulated marijuana, Chinese and foreign giants had already begun to seize market share.
On March 23, crescolabs, a large interstate medical marijuana operator in the United States, announced that it would acquire Columbia care headquartered in New York for $2 billion. After the merger, the company may become the head medical marijuana operator in the United States, covering 55% of the population in the United States.
At the beginning of this year, British American tobacco has launched a pilot electronic atomization equipment VuseCBDZone in Manchester, UK, becoming the first global atomization technology enterprise to launch CBD atomization products. Recently, British American Tobacco announced the acquisition of Organigram19., Canada's leading cannabis licensed manufacturer. 9% of the shares, becoming its largest shareholder and making efforts to develop CBD related products.
In addition, constellation group, Heineken beer, Colgate and other consumer goods companies also continued to promote the application of medical marijuana in their products and improve the layout of relevant products.
The promotion of legalization of marijuana use in the United States is a great benefit for the first share of industrial marijuana Shanghai Shunho New Materials Technology Co.Ltd(002565) in China Shanghai Shunho New Materials Technology Co.Ltd(002565) wholly owned subsidiary Yunnan Lvxin obtained the industrial marijuana planting license in January 2019 and the industrial marijuana processing license on October 22, 2021. In the future, it will carry out exploration and application in downstream fields such as food, health products, biopharmaceuticals and new tobacco in legal areas.
In fact, Shanghai Shunho New Materials Technology Co.Ltd(002565) set up a subsidiary Luxin hemp in the United States to provide forward-looking market information support for the development of the company's industrial marijuana business. At the same time, the subsidiary was approved to carry out industrial marijuana processing and manufacturing related businesses locally and obtained the legal qualification to carry out sales in the United States and other legal countries around the world.
At the beginning of 2022, e1011 labs, a wholly-owned subsidiary of Shanghai Shunho New Materials Technology Co.Ltd(002565) the United States, signed a letter of intent on the production of industrial hemp heating non combustion appliances and industrial hemp heating rods with taat global alternatives Inc., an international industrial hemp cigarette leader. The two sides will jointly develop an industrial hemp heating non combustion appliance and industrial hemp heating rods with three proprietary flavors (original, smooth and menthol) under the brand name of taat, The product does not contain tobacco and nicotine. Users can establish an invisible cannabinoid release and transmission system by heating and inhalation to maximize and efficiently promote the absorption of cannabinoids and beneficial terpenes such as CBD in the human body, alleviate the psychological problems such as anxiety and anxiety that are easy to occur in modern people, and help the human body relax.
It is worth noting that taat has a 25000 square foot processing plant in Las Vegas, and its healthy cannabinoid brand beyond tobacco has been legally and legally sold in more than 20 states in the United States and in the United Kingdom, Ireland and Australia. In the future, the two sides will expand their international market share in this product field through the advantages of their products and channels. In the future, Shanghai Shunho New Materials Technology Co.Ltd(002565) will strive to expand legal overseas markets such as the United States, Europe and Southeast Asia, continue to strengthen R & D investment, accumulate relevant patent technology reserves, and pay close attention to the international market demand for CBD and other industrial cannabis extracts and end products.
new regulations on electronic cigarette issued Shanghai Shunho New Materials Technology Co.Ltd(002565) second growth curve opened
According to the disclosure, the national standard for electronic cigarettes will be implemented from October 1, 2022. The standard stipulates that the concentration of nicotine in electronic smog shall not be higher than 20mg / g, and the total amount of nicotine shall not be higher than 200mg The limit requirements are set for the impurities of atomization and pollutants, such as heavy metals and arsenic. The allowable additives and maximum dosage in atomized materials are defined, and the electronic cigarette set is required to have the protection function of preventing children from starting and accidental starting.
For the release of the new regulations on e-cigarettes, on April 12, Shanghai Securities said in the research report that the new regulations on e-cigarettes continued to ferment and the long-term growth was still significant. "In the national standard of e-cigarette, the competent authorities encourage and support the e-cigarette industry, especially to improve the overall technical level of the e-cigarette industry and build a technological innovation system with e-cigarette enterprises as the main body, market orientation, industry university research and application coordination and the integrated development of upstream and downstream industries."
According to the global market report of e-cigarettes in 2022 released by reportlinker, the global e-cigarette market is expected to grow from US $18.15 billion in 2021 to US $21.63 billion in 2022, with a growth rate of 19.2%. The main reason for the growth is that e-cigarette companies resume operations and adapt to the new normal, recover from the impact of covid-19, and take restrictive measures under the previous epidemic, It has a certain impact on the operation of e-cigarette industry.
It is estimated that the global e-cigarette market will reach US $38.5 billion by 2026, with a CAGR of 15.5%.
Shanghai Shunho New Materials Technology Co.Ltd(002565) as the layout of the whole e-cigarette industry chain, it is expected to give priority to benefiting from it. The company not only has a full license layout in the e-cigarette industry, but also has the advantages of technical support, industrial norms and China tobacco industry chain company.
Shanghai Shunho New Materials Technology Co.Ltd(002565) , Yunnan Hi Tech Co., Ltd., which focuses on the field of heating and non combustion, is a joint venture established by Yunnan Heng Gang Technology Co., Ltd. and a new tobacco leading company, Shanghai Green Xin Electronic Technology Co., Ltd. ( Shanghai Shunho New Materials Technology Co.Ltd(002565) and Shantou Dongfeng Printing Co.Ltd(601515) subsidiary), which is dedicated to the research and development of tobacco flavor and fragrance. Its registered capital is 100 million yuan, and is the most professional R & D, production and capital of China's capital. Enterprises selling low-temperature heating non combustible products.
Since its inception in 2019, Xike has been recognized by capital with an annual compound growth rate far exceeding the 32% predicted by international authorities. At present, Xike's dealers in China are mainly located in the first and second tier cities in China. Consumers are all over the provinces, autonomous regions and municipalities directly under the central government, and the re purchase rate and praise rate of products are better than those of similar products.
In fact, except Xike, Shanghai Shunho New Materials Technology Co.Ltd(002565) has been deeply laid out in the new e-cigarette industry chain. Except that the upstream raw materials are not involved, the R & D and manufacturing, brand operation, sales and retail channels of new tobacco are laid out.
At the R & D, production and manufacturing end of new tobacco, Shanghai Shunho New Materials Technology Co.Ltd(002565) six companies at home and abroad, including Shenzhen Jiapin Jianyi Technology Co., Ltd., Xike, Hainan Baoxin Biotechnology Co., Ltd. and Heilongjiang Shunhao hemp Biotechnology Co., Ltd., are deeply involved. Among them, in the field of atomized electronic cigarette, three companies under Shanghai Shunho New Materials Technology Co.Ltd(002565) banner, including Shenzhen meizhonglian Technology Co., Ltd. and Shanxi shunwu Alte Technology Co., Ltd., have made in-depth layout. Under the new regulations and policies, the rational industrial layout of multiple provinces and cities is expected to increase more possibilities for the company to apply for licenses and future industrial end management.
It is worth noting that in the new standard of e-cigarette, mandatory national standards and a series of strict requirements have further standardized the development of the industry Shanghai Shunho New Materials Technology Co.Ltd(002565) as one of the suppliers of "China Tobacco series" of the national team, it has stronger reputation than some small brands in terms of qualification. With the advantages of production, R & D and one-step layout of the whole industrial chain of e-cigarette, Shanghai Shunho New Materials Technology Co.Ltd(002565) is expected to usher in the second growth curve after the introduction of the national standard of e-cigarette.
