Friday, June 14, 2024

18,000 new e-cigarette-related companies established in China in 2020


According to the China Fund News, the tobacco stock sector in China, which has been silent for a long time, ushered in a collective rise last week. Due to the US stock listing of Wuxin Technology, the parent company of the China e-cigarette brand RELX brought a new wave of a surge in the vape field.

The Shenran Finance report pointed out that on the evening of January 22, the e-cigarette company RELX was officially listed on the New York Stock Exchange. This is China’s first listed e-cigarette brand. Prior to this, Smoore, known as the “first share of electronic cigarettes”, was listed on the Hong Kong Stock Exchange in July 2020, but Smoore is an e-cigarette manufacturer that provides OEM production for e-cigarette brands such as RELX. The successful listing of RELX means the birth of “China’s first electronic cigarette brand”.

According to the data of Tianyancha, a company database APP, there are currently 35,000 companies in China whose names or business scopes contain “electronic cigarettes, vaporizers”, and their status is e-cigarette-related companies that are active, existing, moving in, or moving out. In terms of business types, 52% of related companies are limited liability companies, and 46% of related companies are individual industrial and commercial households. In terms of registered capital, nearly 80% of e-cigarette-related companies have registered capital below 2 million.

China vape company registrations increased by 167% year-on-year in the first three quarters in 2020

From the perspective of industry distribution, nearly 90% of e-cigarette-related companies are distributed in wholesale and retail industries. In terms of geographical distribution, Guangdong has the largest number of e-cigarette-related companies, with more than 9,700, followed by Jiangsu with more than 4,000. Followed by Zhejiang and Shandong, there are more than 2,000 electronic cigarette related companies.

According to the data of Tianyancha, the annual registration of electronic cigarette-related enterprises in China increased sharply in 2020, and 18,000 related enterprises (all enterprise status) will be added throughout the year, a year-on-year increase of 270%. In terms of quarters, the fourth quarter increased the most, adding 10,000 e-cigarette-related companies.

The “China Electronic Cigarette Industry Value Insight Report 2020″ released by the Beijing News Think Tank pointed out that the emergence of electronic cigarette products promotes the rapid growth of enterprises related to the industry chain, and at the same time drives the expansion of the tobacco industry chain, which has a promoting effect on the tobacco industry to create a good industry ecology; And together with it to provide society with harm-reducing and safe electronic cigarette products. E-cigarette companies cut in from R&D, design, production, sales and other processes to reduce carbon dioxide and other gas emissions and energy consumption, which is of positive significance for China to achieve carbon neutrality goals and achieve ecologically sustainable development.

Notify of

Inline Feedbacks
View all comments

Read more

Search more

Latest News