Company dynamics

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  Currently, there are two main products on the Chinese market collectively known as e-cigarettes, one is a heated non-combustible product classified as a new type of tobacco, and the other is electronic atomized smoke.As China's new type of tobacco cool water pipes heating non-flammable tobacco products are restricted by the tobacco monopoly system, similar products such as iQOS cannot be sold in China.

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  What really belongs to electronic cigarette is electronic atomized cigarette, which USES nicotine smoke oil to make users smoke through atomization. The formulation and production process of tobacco oil also become the embodiment of the core competitiveness of electronic cigarette.

  China's capital markets have become increasingly popular with e-cigarettes in recent years.According to incomplete statistics from e-commerce e-cigarette world, there were more than 35 investment cases in the e-cigarette industry in the first half of 2019.According to the disclosed investment statistics, the total investment is at least 1 billion yuan.

  Many brand entrepreneurs cross borders.For example, RELX, the startup team of didi, Procter&Gamble, Huawei and others, was founded in 2018 and valued at $2.4bn.Earlier this year, two former Smartisan executives set up their own e-cigarette brand oil rigs, and lo's platform attracted attention.

  Fang hui, a partner and chief operating officer of e-cigarette brand platinum, told China business news that e-cigarettes can now be made for 5 million yuan and given to e-cigarette and other hardware manufacturers as long as they have a brand and money.One of the reasons that capital likes e-cigarettes is that they are easy to form a dependent and sticky commodity, and their users are relatively stable.

  At present, the electronic cigarette product blending and homogeneity of the important reasons is the lack of national standards, OEM and ODM model, most product belongs to the mid-range, many different brands of products may come from the same factories, or even the same production lines, including the atomization core design and manufacturing, oil smoke procurement from one or more purchasing manufacturers there.It also has to do with the maturity of the market.Fang hui said that the vast majority of brand enterprises do not grasp the core technology, also do not have research and development capabilities.

  In October 2017, the national technical committee for tobacco standardization (hereinafter referred to as the "committee for tobacco standardization") formulated, reported and implemented the national standard plan for "e-cigarettes", which is supervised by glass pipes the state tobacco monopoly administration.Shanghai new tobacco research institute, zhengzhou tobacco research institute of China national tobacco corporation, yunnan tobacco science research institute and other units participated in the drafting of the two-year plan.

  The project is now in the final approval process.A staff member of the tobacco standardization committee said the standard has now been reported to the standardization administration, which will decide when to approve, approve and distribute it, and progress should be announced in the near future.

  In fact, in June of this year, the content of the e-cigarette standard was already circulating in the industry.Fang said that as companies hope to release relevant standards as soon as possible, so that the development of industry norms more secure, consumer safety is also more secure.The implementation of national standards will increase production costs, and some small factories and enterprises may be affected.

  A person involved in drafting the standard told China business daily that it has standardized e-cigarette cases, liquid smoke and packaging.The concentration of salt and alkali in tobacco solution and additives is specified in detail.However, for the international standards of e-cigarettes, the content of various components in tobacco oil, such as glycerol, propylene glycol as solvents should not be measured whether there is a risk of inhalation.