Provide nicotine?Pharmaceutical companies are improving the electronic cigarette market

On June 14, Rundu announced that the company's wholly -owned subsidiary received the tobacco monopoly license to be issued by the State Tobacco Monopoly Agency for administrative license decision. Pharmaceutical companies are entering the e -cigarette market through raw materials. The night before, Jincheng Pharmaceutical stated that through the licenses of tobacco monopoly manufacturers, the corresponding nicotine can be provided to the downstream market of electronic cigarettes. According to the previous statement on the interactive platform, its nicotine project has entered the trial production stage. Insiders believe that under the advancement of pharmaceutical policies such as the consistency evaluation of generic drugs and the procurement of volume, the entire pharmaceutical industry is facing changes. By providing nicotine for the downstream market, pharmaceutical companies can enter the electronic cigarette market to find new increases.

The electronic cigarette industry ushered in a new era of traceability supervision

On June 14, according to the announcement disclosed by Rundu, the company's wholly -owned subsidiary Rundu Jingmen Company received the tobacco monopoly license to be issued by the National Tobacco Monopoly Agency to the administrative license decision. The application for the (new office) tobacco monopoly production enterprise license is applied for review by the State Tobacco Monopoly Bureau according to law. It is believed that Runjing Jingmen Company meets legal conditions and decides to be allowed to be approved (new).

Similarly, on the evening of June 13, Jincheng Pharmaceutical announced that the company received a license to be approved by the National Tobacco Monopoly Agency. This is the first company in China to announce the permission of electronic cigarette monopoly production licenses, which is of great significance.

According to the decision, the (new office) (new) tobacco monopoly production enterprise license applied for the (new office) tobacco monopoly bureau applied for by the State Tobacco Monopoly Agency in accordance with the law. It is believed that it meets the legal conditions and decides to be allowed to be approved (new). The company has not received a license to a tobacco monopoly manufacturer issued by the State Tobacco Monopoly Administration. Detailed information such as permit capacity will perform the information disclosure obligation in a timely manner after receiving the license document.

Recently, the State Tobacco Monopoly Administration revealed that the administrative department will recently approve and issue a batch of tobacco -related manufacturers who meet the requirements of administrative licenses. Essence

According to the "Administrative Measures for Electronic Cigarettes" issued in March 2022, the establishment of electronic cigarette manufacturers (including product production, agency processing, brand holding enterprises, etc.), atomized production enterprises, and electronic cigarette nicotine production enterprises, etc. Tobacco monopoly manufacturers must be obtained.

On June 2nd, the National Tobacco Monopoly released the "Answers to Electronic Tobacco Administrative Licensing and Product Technology Reviews" on its official website. Essence

Among them, Article 6 of the "Answers to Electronic Cigarette Administrative Licensing and Product Technology Review" states that the main function of the national unified e -cigarette transaction management platform has been completed, and pilot methods have been used to complete the verification in some regions and enterprises. On June 15, 2022, the platform will be officially operated as scheduled. At that time, various types of electronic cigarette markets should gradually be traded and settled on the platform.

According to the relevant provisions of the "Administrative Measures for Electronic Cigarettes", no production license electronic cigarette manufacturers shall not be traded through the electronic cigarette trading platform. After the transition period, electronic cigarette production enterprises will be investigated and punished according to law through the sales of electronic cigarette products, nicotin, and alkali of electronic cigarette products through the electronic cigarette transaction management platform.

It is understood that on the production side, electronic cigarettes implement "one thing, one yard", and the traceability code appears in the three links of electronic cigarette products, entry wholesale enterprises, and exports from wholesale enterprises to achieve the entire industry chain information traceability chain.

When the retail terminal implements a "one store and one certificate". When the chain enterprise applies for electronic cigarette retail permits, each branch shall submit an application to the delegation administrative department where the operating venue is located. Therefore, the sales online store in the store may not obtain a sales license. The main business has nothing to do with the e -cigarette retail business and cannot apply for a retail license.

Analysts pointed out that channel management and product traceability are important methods of new generation of electronic cigarette supervision. With the establishment of electronic cigarette trading platforms, the industry will usher in a new era of traceability supervision of "one cigarette and one identity".

Caitong Securities believes that the domestic electronic cigarette regulatory rules have gradually landed, and my country's electronic cigarette industry has officially entered a new era of standardized development. In the short term, the policy window period helps to transition in all aspects of the industry; in the long run, unqualified products and production capacity will be clear, which will promote market share concentration and facilitate the advantages of various aspects such as production and brands.

However, at present, the two companies have not received a license to a tobacco monopoly manufacturer issued by the State Tobacco Monopoly Agency. Relevant persons from the Jincheng Pharmaceutical Securities Department told the Beijing Business Daily that the company only received an administrative license decision and was basically determined to obtain a certificate, but it is still in the certification. "This certificate has not been obtained. After the subsequent obtaining it, the company will announce the specific information inside again." Said the relevant person in Jincheng Pharmaceutical Securities Department.

A person in charge of an electronic cigarette industry told the Beijing Business Daily that the company's receipt of this certificate means that the business owner can continue to engage in business within the scope of license after the end of the transition period (September 30). "At present, the State Tobacco Administration has accepted the existing enterprises with related businesses before November 10, 2021. These enterprises need to be carried out before this date, and now they can apply for this license. Business companies can only apply on the website of the National Bureau after September 30. "

According to the above -mentioned person in charge, there are three major categories of production enterprise permits, namely the production of electronic smoke products, electronic smoke, and alkali cigarettes. These three categories cannot be taken into account, and relevant licenses need to be applied for separately. At present, Rundu and Jincheng Pharmaceutical's application or e -cigarette cigarette licenses are mainly targeted at nicotine production enterprises for electronic cigarettes. Jincheng Pharmaceutical's Secretary has also publicly stated that at present, Jincheng Pharmaceutical only produces e -cigarette raw materials, and does not directly produce e -cigarette terminal products. Rundu also publicly stated that the company's nicotine project has entered the trial production stage.

In response to the relevant situation, a reporter from Beijing Commercial Daily contacted Rundu, but as of the press time, no reply was received.

Market extension and create new growth points

Rundu and Jincheng Pharmaceutical's performance fluctuated in the past two years, and extension to the e -cigarette market has also been regarded as a measure to create new growth points.

Jincheng Pharmaceutical started with cephalosporin medicine. Affected by the "Restriction Order", at the beginning of the listing of 2011 to 2012, Jincheng pharmaceutical business performance fell significantly. After listing and financing, Jincheng Pharmaceuticals extended to the upstream and downstream of the industrial chain of the pharmaceutical chemical intermediate and the biopharmaceutical field. At present, the company has formed four major four major four major four major four major four major, terminal preparation products, biopharmaceuticals and specialty materials, and other pharmaceutical chemical products. Business segments. However, from 2018 to 2019, the net profit of Jincheng's medicine increased negatively, with a growth rate of -7.84%and -22.96%, respectively. By 2020, Jincheng Pharmaceuticals had a huge loss of 489 million yuan. Despite the growth of performance in 2021, the gross profit margin of the three major sectors of medical cephalosporin products, preparation products and other pharmaceutical chemical products in Jincheng has a negative growth trend.

The main business of Rundu includes chemicals, chemicals and drugs, and the development, production and sales of pharmaceutical intermediates. From 2020 to 2021, Rundu's revenue fell 7.89%and 5.01%year-on-year. In the financial report, Rundu mentioned that around the collection of collection and consistency evaluation policies, the company will strengthen potential customer development, improve product quality, provide differentiated product services, and provide motivation for the company's performance growth.

Compared with the country's major environmental environment such as squeezing drugs and high "moisture" and large investment in innovative drugs, the electronic cigarette market has a certain development prospect. Jiang Han, a senior researcher at Pangu Think Tank, told Beijing Business Daily that the demand for the overall electronic cigarettes is objective. The entire Chinese electronic cigarette actually shows a trend of stable demand growth. In this context, the layout of pharmaceutical companies has its rationality. Essence At present, the possible situation of the electronic cigarette market is that some of the original electronic cigarette companies are restricted, but traditional tobacco companies may further deploy electronic cigarettes, so the market still has a certain development prospect.

The relevant person in charge of the above -mentioned electronic cigarette industry said that since last year, the state has been strengthening the supervision of the electronic cigarette market and promoting the electronic cigarette industry from a brutal growth state to a standardized development state. At present, each electronic cigarette brand holding enterprises, manufacturers, and retail store owners are actively applying for corresponding licenses, and the licenses of each place are also being issued in an orderly manner. At present, the order of approval is a process from top -down. Only upstream compliance is legal, can downstream companies have compliance. As the first product production factory, the product production factory has a more market development advantage than other post -obtain certificates.

It is reported that Jincheng Pharmaceutical is mainly synthetic nicotine, and domestic extract must be used in China. Relevant sources of Jincheng Pharmaceutical Securities Department said that the company currently has two technologies: synthetic nicotine and extract -type nicotine. After the license is obtained, it can provide domestic extract -type nicotine. He also said that the above -mentioned business accounts for a small proportion of the company's overall performance.

Heading companies will benefit

After the release of electronic cigarettes, the concept of A -share electronic cigarette concepts rose sharply, Shunzheng's daily limit, Dongfeng, Jinsheng Pharmaceutical, Yinghe Technology, etc. rose more than 5%. Hong Kong stocks listed on the fabricic electronic cigarettes leading Simo International rose nearly 5%, and US stock fog core technology rose more than 6%before, but it turned green shortly after the opening.

The National Tobacco Monopoly Agency in accordance with the principles of laws and regulations, smooth order, overall planning, and classification guidance in accordance with laws and regulations, in accordance with the law, ordering, overall planning, and classification guidance. The enterprise does not permit. Tianfeng Securities believes that this measure will help the healthy and sustainable development of supply chain companies that have reached standards for domestic brands, production compliance, technology and environmental protection.

Compared with traditional tobacco products, new tobacco (atomized electronic cigarettes and HNB) have the characteristics of not combining, providing nicotine, and basically non -caramel. It is estimated that by 2023, the global new type of tobacco will reach $ 86.7 billion, of which atomized electronic cigarettes will be US $ 46.82 billion and HNB is US $ 39.88 billion. According to Frost Sanlv, the global electronic smoke penetration rate will reach 9.3%in 2024.

It is understood that the electronic cigarette industry chain mainly includes upstream raw materials and accessories, midstream manufacturing and brands, and downstream channel sales. The upstream raw materials mainly include smoke bombs and smoke rods. The flavors in the smoke bomb are represented by China Polton, Huabao International, Eapau, etc. The batteries in the cigarette rod are represented by 100 million weir lithium energy, BYD electronics and other companies. The main electronic cigarette chip manufacturers include EVOLV and Yhai Electronics.

The middle reaches of manufacturing companies are represented by Simo International, Hengyuan Group, and Zhuoli. Domestic brand companies include Yue Ke, Magic Flutes, Grapefruit, etc. Foreign brands include VUSE, JUUL, NJOY and so on.The downstream channel sales include brand stores represented by Joy and Ono, and other retail channels represented by Aichide.

Source | Beijing Commercial Daily, Securities Times

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