The one belt, one road initiative one belt, one road, was signed by Kennede Electronics Mfg.Co.Ltd(002723) in January 7th. The company has authorized the sale of “Boulder platinum” brand products to Kennede Electronics Mfg.Co.Ltd(002723) , and agreed that Kennede Electronics Mfg.Co.Ltd(002723) will sell exclusively the “Boulder platinum” brand electronic cigarette products in the “one belt and one road” country to Kennede Electronics Mfg.Co.Ltd(002723) . The cooperation between the company and Baide continues to deepen, and actively cut into the high-profile growth track of e-cigarette, which is expected to create new performance growth points.
equity participation in Shenzhen Baide cut into e-cigarette
Kennede Electronics Mfg.Co.Ltd(002723) announced on November 19, 2021 that Yunhai venture, a wholly-owned subsidiary, invested 30 million yuan in Baide group, accounting for about 2.5840% of the equity of Shenzhen Baide, and officially entered the e-cigarette industry. Shenzhen Baide is a head e-cigarette brand company engaged in the R & D, production and sales of electronic atomized cigarette sets and cigarette oil. Its e-cigarette brand ranks firmly in the top of China’s e-cigarette brand list. The company said that one belt, one road, was signed with Shenzhen, and the two sides signed a cooperation agreement to reach a strategic partnership. The two sides should give full play to their respective resource advantages, help to promote the company’s product structural upgrading, build differentiated competitive advantages, and tap the market potential of “one belt and one road” to enhance market competitiveness.
AI media consulting predicts that the market sales of the global e-cigarette industry will reach US $42.4 billion in 2020, with a year-on-year increase of 15.6%. It is expected that the sales scale will reach US $52.2 billion in 2021 and US $82 billion in 2023. The market development potential of the e-cigarette industry is huge. With the further deepening of cooperation with Baide, Kennede Electronics Mfg.Co.Ltd(002723) is expected to give full play to its advantages in electronic product R & D, manufacturing and sales channels, and build e-cigarettes into the third pole of the company’s growth. One belt, one road initiative will be built on the two sides to carry out in-depth cooperation in order to achieve the win-win goal of cooperation and innovation and brand launch.
join hands with platinum to explore overseas markets
According to public information, as an enterprise with Chinese background, Baide group was founded in 2013. It is headquartered in Nanshan District, Shenzhen and has a self built tobacco and oil factory. Platinum’s main revenue comes from the U.S. market and China market. At present, it has more than 30000 outlets in the United States, mainly in gas stations and convenience stores in the eastern and Midwest of the United States. There are thousands of exclusive stores in China, and the comprehensive strength continues to be in the top three in the industry. Baide company now has two laboratories in New Jersey and Shenzhen, and has a variety of independently developed products. Its amber series enjoys the reputation of “king of repurchase rate” in the whole industry.
In January 2021, Baide successfully passed the preliminary review of tobacco oil PMTA by FDA (US Food and Drug Administration), and the product officially entered the stage of substantive scientific review. At present, it is the only Chinese brand that has passed the preliminary review of tobacco oil PMTA. In April 2021, Baide cooperated with Huayu technology, a wholly-owned subsidiary of Yunyan international, to jointly launch the new electronic cigarette “little yellow croaker”, which has been listed and sold overseas.
On November 26, 2021, the State Council issued a decision to amend the regulations for the implementation of the tobacco monopoly law of the people’s Republic of China, which made it clear that e-cigarettes will be implemented with reference to the relevant provisions of cigarettes and will come into force today. On December 2, 2021, the State Tobacco Monopoly Administration publicly solicited opinions on the administrative measures for electronic cigarettes (Draft for comments). China International Capital Corporation Limited(601995) believes that the entry threshold of e-cigarette increases with the implementation of supervision, the industry has entered the shuffle stage of survival of the fittest, and the leading manufacturer of e-cigarette with core technical advantages is expected to benefit. Another market point of view pointed out that since the export business is not expected to be affected, it may be obviously beneficial to Baide, which takes the overseas market as the main position.
For Kennede Electronics Mfg.Co.Ltd(002723) who has been deeply involved in the overseas small household appliance market for many years, the cooperation with Baide is expected to give further play to the company’s overseas channel advantages and seize the industry opportunities. The company said that it cooperated with Shenzhen Baide in product R & D, production and manufacturing, business development and other aspects, and had synergy in business. On the one hand, Kennede Electronics Mfg.Co.Ltd(002723) intelligent can increase the diversification of the company’s products in the production of electronic cigarette products; One belt, one road, is that Kennede Electronics Mfg.Co.Ltd(002723) Shenzhen authorized the Boulder intelligence to sell exclusively “electronic cigarette” in the “one belt and one road” country, which can increase the company’s revenue and benefit the company’s long-term development and the interests of all shareholders.
(source: Securities Daily)
