Tag: China

  • Smoore Reports Half-Year Revenue of $705.4 Million

    Smoore Reports Half-Year Revenue of $705.4 Million

    Photo:TacoTuinstra

    Smoore International Holdings reported revenue of RMB5.04 billion ($705,4 million) for the six months that ended June 30, down 1.7 percent from the comparable 2023 period. Gross profit rose 3.2 percent to RMB1.91 billion while pretax profit was up by 1.9 percent to RMB811.56 million.

    The group’s branded business grew by 71.9 percent to RMB1.12 billion in the first half of 2024, boosted by the company’s digital marketing operations, which enabled the company to respond rapidly to consumer preferences. The group’s Vaporesso brand continued to increase its market share in the open system product segment and has become the leading brand in this category.

    Smoore’s corporate client sales meanwhile, declined by 12.3 percent to RMB3.92 billion in the first six months of 2024, reflecting  different sales performances in different markets around the world.

    In the U.S., Smoore faced competition from noncompliant vaping products. However, the company said it was encouraged by clarifications of the regulatory framework and the strengthening of enforcement in that market, pointing to creation of a federal multi-agency task force to combat the illicit market, among other developments.

    Increasing regulation of the vaping market in Europe, meanwhile, has impacted demand for traditional disposable products, causing the group’s revenue from single-use vapes to decline by approximately 18.9 percent year-on-year to approximately RMB1.22 billion.

    Smoore said it has successfully launched a number of new closed system products in the international market in the first half of the year, and it is confident that this will translate into stronger orders in the second half of the year.

    In China, where the group’s corporate client oriented business centers on closed system electronic vaping products, Smoore reported sales revenue of RMB87.78 million, representing an increase of approximately 41.4 percent  as compared to the same period last year.

  • RLX Revenue Jumps 66 Percent to $86.3 Million

    RLX Revenue Jumps 66 Percent to $86.3 Million

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB627.2 million ($86.3 million) in the second quarter of 2024, up 66 percent from the comparable 2023 quarter. U.S. GAAP net income was RMB134.9 million, down from RMB204.7 million in the same period of 2023. Non-GAAP soared to RMB213.1 million from RMB86.2 million. Gross profit was RMB157.9 million, compared with RMB98.5 million in the comparable 2023 period.

    “We delivered a strong second quarter performance as revenue continued to increase sequentially, driven by our international business expansion,” said RLX Chairperson and CEO Ying (Kate) Wang in a statement.  

    “Our deep exploration of overseas markets and regulations has provided us with valuable insights into the global e-vapor landscape, enabling us to create effective, targeted regional strategies. This year, global regulations are rapidly evolving, with more regulators recognizing e-vapor products as harm-reduction tools for adult smokers. Leveraging our broad expertise in regulatory compliance, we are well-prepared to navigate these changes and ensure a seamless transition for our users and partners.”

    Chief Financial Officer Chao Lu said the considerable year-on-year increase in net revenues reflected the company’s ability to capture growth opportunities in international markets. “While our gross margin declined slightly due to an unfavorable shift in our revenue mix, disciplined cost management bolstered our non-GAAP operating profit margins,” he said.

    “Looking ahead, we are confident of driving continued improvement in both our top and bottom lines, fueled by ongoing revenue growth from international markets and our relentless focus on operational efficiency. As always, our priority is to deliver sustainable and profitable returns to our shareholders.”

  • US Customs Seizes 53,700 Illegal Flavored Vape Pens

    US Customs Seizes 53,700 Illegal Flavored Vape Pens

    U.S. Customs and Border Protection (CBP) officers in Chicago recently seized 53,700 electronic nicotine delivery systems (ENDS) for violating the U.S. Food and Drug Administration’s Federal Food, Drug, and Cosmetic Act (FD&C Act).

    The shipment, originating from China, was destined for a wholesaler in Mississippi, according to a CBP release.

    The vaping pens were inspected by CBP and the FDA, and it was determined that the shipment violated the FD&C Act as it consisted of adulterated consumer goods being imported by an unauthorized agent. On June 10, the FDA announced the establishment of a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes.

    “Our officers are dedicated to identifying and intercepting these types of shipments that could potentially harm the health and wellbeing of people within our communities,” said LaFonda Sutton-Burke, Direction Field Operations, Chicago Field Officer. “Customs and Border Protection’s trade enforcement mission places a significant emphasis on intercepting illicit products that could harm American consumers, and we will continue to work with our consumer product safety partners to identify and seize unsafe and illicit goods.”

    The 179 boxes were mislabeled as electronic atomizers, a common practice used to smuggle unapproved goods into the U.S. CBP presumes the products were being sent to a wholesaler for wider distribution throughout the country. CBP continues to work diligently to stop non-legitimate products from entering the U.S. The ENDs had a combined Manufacturer’s Suggest Retail Price of over $1.08 million.

  • Smoore Quarterly Pretax Profits Up a Quarter

    Smoore Quarterly Pretax Profits Up a Quarter

    Photo: Taco Tuinstra

    Smoore International Holdings reported an unaudited pretax profit of RMB399.7 million ($55.23 million) for the three months that ended March 31, up 25 percent over its pretax profit in the comparable 2023 quarter. After-tax profit was up 12.8 percent to RMB339.5 in the quarter.

    “Total comprehensive income” was RMB209.8 million in the quarter, compared with RMB293.3 million in the comparable 2023 period.

  • Innokin Eco-Friendly ‘Trine’ Device Coming in March

    Innokin Eco-Friendly ‘Trine’ Device Coming in March

    To help lessen the environmental impact of disposable vapes, vaping manufacturer Innokin is stepping up its efforts to ensure a more sustainable future in vaping. With the introduction of its Trine innovation, Innokin is at the forefront of aligning with initiatives in European regions to tackle the environmental challenges posed by disposable vapes.

    Innokin’s new Trine vaping device represents a revolutionary approach with its unique 3-in-1 structure, according to an emailed press release. It moves away from the traditional disposable model and incorporates innovative features that enhance sustainability. The new design focuses on easy recycling and longer device life cycles.

    First, the Trine’s design includes a removable battery, facilitating easy recycling and reducing electronic waste. This feature allows the battery to be easily replaced or recycled, much like regular external batteries, thus minimizing the device’s environmental footprint.

    The battery endurance of the Trine solution also leads to an enhanced lifespan. Each battery supports over 300 full charge cycles while maintaining more than 80 percent of its original capacity. This translates to a lifespan of up to two years under normal usage conditions, in stark contrast to disposable alternatives that contribute to the rapid accumulation of electronic waste, according to Innokin.

    Additionally, the Trine solution incorporates Innokin’s new EcoDrain technology, an eco-safe battery recycling solution. This technology actively addresses the challenges of handling discarded batteries, ensuring their safe and efficient discharge before recycling.

    “Innokin’s forward-thinking approach also aligns with the upcoming EU battery regulation, which mandates that all battery-powered devices, including e-cigarettes, must feature batteries that are removable and replaceable by the end user,” the release states.

    Innokin plans to launch a new product that uses the Trine solution in March. “This eagerly awaited release represents a significant milestone in their commitment to sustainability and innovation, promising consumers a greener and more eco-friendly vaping experience,” the release states.

    For more information about Innokin’s Trine solution and its approach to sustainability, visit https://innokin.com.

  • RLX Releases Corporate Sustainability Report

    RLX Releases Corporate Sustainability Report

    RLX Technology presented its “Corporate Social Responsibility Report.” The report outlines the firm’s annual progress in fulfilling various corporate social responsibilities, including rural revitalization, product-related responsibility, corporate governance, environmental responsibility and employee responsibility.

    According to the report, as of 2023, RLX has invested a total of CNY44.3 million ($6.2 million) in areas such as biodiversity conservation and rural revitalization. By the end of April 2023, RLX had effectively generated approximately 120,000 employment opportunities along the supply chain and accumulated research and development investments totaling CNY800 million.

    Navigating the delicate balance between compliance and innovation is the most crucial challenge for RLX, according to a company press release. In pursuit of a first-class user experience, the company says it not only strictly adheres to regulatory requirements by developing products in line with national standards to ensure quality and safety but is also comprehensively upgrading its research and development system. This involves establishing eight major laboratory matrices and rigorous factory quality control to enhance product innovation. The report reveals that as of April 2023, RLX has applied for nearly 900 patents globally.

    From child-proof locks to anti-dry burn functions, each of the eight laboratories plays a specific role in developing products that meet both regulatory requirements and user-experience expectations. The Innovation Lab, for example, focuses on material purification and flavor perception, significantly reducing the risk of alterations to product taste and flavor. The Quality and Safety Lab conducts tests such as drop and negative pressure tests to ensure product stability in extreme environments. This lab has received accreditation from China National Accreditation Service for Conformity Assessment.

    Since outlining its “1+4” scientific research path in 2020, RLX has initiated nearly 50 research projects to fill the gaps in the field of vape science. The report highlights several breakthrough achievements from the past year. In November 2022, the first domestic clinical study on electronic cigarettes initiated by RLX was published in the medical SCI journal Nicotine and Tobacco Research. By the end of April 2023, RLX had conducted 17 collaborative research projects, publishing 11 research papers in authoritative journals.

    “From 2022 to 2023, whether in the Chinese e-cigarette industry or at RLX Technology, it has been an extremely important period. We wholeheartedly respond to policies and actively address various changes, not only fulfilling strict compliance and providing reassuring products as ‘required actions’ but also contributing our modest efforts in ‘voluntary actions’ such as wildlife protection and rural revitalization to enhance social well-being,” said Kate Wang, founder and CEO of RLX.

  • Innokin Launches New ‘Trine’ Vaping System

    Innokin Launches New ‘Trine’ Vaping System

    Innokin launched Trine, a redefinition of the structure of pod systems, namely atomizer, control and battery (removable), according to a press release.

    The new 3-in-1 solution improves the reusability of the battery, according to the press release. 

    Trine features removable batteries for pod systems, extending the life cycle of devices far beyond that of an individual battery while enabling safe recycling, according to Innokin.

    Trine ensures safe battery disposal by integrating EcoDrain, a battery discharge technology setting a new industry standard as an eco-safe solution for battery disposal. It addresses the challenges associated with handling discarded batteries, ensuring safe battery discharge before recycling.

    The technology minimizes fire hazards and actively reduces the detrimental environmental impact caused by battery waste, according to the company.

  • U.S. Lawmakers Seek Action Against Elf Bar Sales

    U.S. Lawmakers Seek Action Against Elf Bar Sales

    U.S. House lawmakers are demanding information from federal officials on what they are doing to stop the recent influx of kid-appealing electronic cigarettes from China.

    Members of a new congressional committee on U.S.-China relations sent the request last week to U.S. Justice Department and Food and Drug Administration leaders, calling attention to “the extreme proliferation of illicit vaping products.”

    The letter cites the Associated Press reporting on how thousands of new disposable e-cigarettes have hit the market in recent years, mostly manufactured in China and sold in flavors like watermelon and gummy bear.

    In May, the agency called on customs officials to block imports of Elf Bar, a small, colorful vaping device that is the No. 1 choice among teenagers.

    The media has reported that the company behind Elf Bar has been able to evade the ban by simply renaming its products, which remain widely available in convenience stores and vape shops.

    “We ask you to work with the Customs and Border Protection to address this urgent problem with all due speed,” states the bipartisan letter from 12 members of the committee, including Chairman Rep. Mike Gallagher, and Rep. Raja Krishnamoorthi.

    The special committee was established early this year to counter Chinese policies that can damage the U.S. economy. Tensions between the two countries have been rising for years, with both China and the U.S. enacting retaliatory measures on imports.

  • Ispire Technology Sees Jump in Revenue and Profits

    Ispire Technology Sees Jump in Revenue and Profits

    Photo: Freedomz

    Ispire Technology reported revenue of $42.9 million and gross profit of $6.9 million in the quarter that ended Sept. 30, reflecting growth of 59.1 percent and 43.7 percent, respectively, over the comparable 2022 quarter.

    Revenue from cannabis vaping products jumped 116.8 percent to $17.3 million, and revenue from tobacco vaping products was up 34.8 percent to $25.5 million.

    Ispire co-CEO Michael Wang attributed the growth to the company’s expansion in the United States and the reception there of its most recent product, Ispire One. “Our business strategy has clearly manifested as we continue to redefine the vaping experience, consistently delivering high-quality and groundbreaking products that align with customer preferences,” he said.

    “We remain confident in our ability to maintain our position as the leading premier precision dosing technology company as we’ve not only secured our position in existing markets but have also made inroads into new geographies, adapting swiftly to increased market demands. The establishment of a new manufacturing facility in Malaysia marks a strategic step into the Southeast Asian market, signaling our readiness for scalable operations.”

  • RLX Technology Report Shows Revenue ‘Challenges’

    RLX Technology Report Shows Revenue ‘Challenges’

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB428.1 million ($58.7 million) in the third quarter of 2023, compared with RMB1.04 billion in the same period of 2022. Gross margin was 24.7 percent in the third quarter of 2023, compared with 50 percent in the comparable 2022 quarter. GAAP net income was RMB172.7 million, down from RMB505.2 million in the prior-year period.

    “The end of the third quarter of 2023 marked one year since the new regulatory framework for the e-vapor industry came into effect,” said Ying (Kate) Wang, co-founder, chairperson and CEO of RLX Technology, in a statement.

    “As a legitimate industry participant, we have remained dedicated to developing our product portfolio to provide adult smokers with compliant, superior-quality products. While we have made some progress with our recovery, we are still facing external challenges, especially the impact of illegal products. We recognize that many users are still unaware of these new regulations, such as flavor restrictions, which has slowed their adoption of the new national standard products.

    “To address these near-term obstacles, we will forge ahead with our core strategy: providing a wide variety of quality, compliant products across an extensive range of price points to meet users’ various needs. Meanwhile, we are making efforts to enhance users’ understanding of the new regulations and collaborating with regulators to combat illegal products and create a healthy and orderly market. As a trusted e-vapor brand for adult smokers, we believe that more users will gradually switch to our products as increased awareness of the new regulations and the dangers of substandard, illegal products rises.”

    “In the third quarter of 2023, we continued to face significant headwinds due to competition from illegal products,” added RLX Technology Chief Financial Officer Chao Lu. “Against this challenging backdrop, we resolutely executed our strategy and focused on improving profitability, which continues to be our top priority.

    “Our strategic cost optimization initiatives have begun to demonstrate positive outcomes, including a consistent reduction in our non-GAAP operating loss and signs of recovery in our non-GAAP net profit margin. Notably, we achieved a second consecutive quarter of positive operating cash flow this quarter, underscoring our business’ resilience in the post-regulatory era. Looking forward, we will remain committed to enhancing our financial performance and delivering sustainable value to our shareholders.”