On October 10, the new varieties of industrial hemp seed – Zhonghan No. 2 and Zhonghan No.3, by Yunnan Hemp Soul Biological Technology Co., Ltd. (HMI) were rolled out.
This series of new varieties have strong stability, good consistency, and strong drought and disease resistance. It can provide powerful germplasm resources for the development of the industrial hemp industry, improve the basic level of industrial hemp extraction and processing, broaden the context of China’s industrial hemp industry market, and create more space for utilization.
The expert group particularly emphasized that the new varieties of industrial hemp by HMI that passed the identification this time have reached the average level of industrial hemp varieties grown in North America. They are a new breakthrough in the breeding of industrial hemp for medicinal use and will greatly satisfy the application of industrial hemp in the biomedical field. The basic needs of China’s industrial hemp industry will gain strong technical competitiveness in the global market.
At present, many top CBD products including the famous SWISS FX CBD oil are from Europe.
On June 8, 2020, the e-cigarette brand CISOO, a subsidiary of the Hanma Group, announced that its starter kit product Scream series, competing for the e-cigarette starter kit market, and will open a summer two billion yuan subsidy activity.
At the same time, CISOO is also the third brand to launch a starter kit this year, which also indicates that the competition for e-cigarettes this year has started from starter kit pod systems.
Previously, the first disposable e-cigarette Fireflies and the multi-function prefilled pod system was K1 launched by CISOO’s first in Shenzhen and once made a sensation. The new digital channel system introduced also contributed to the realization of high repurchase of pods and the rapid development of agents and partners. At present, the monthly sales of CISOO pods have exceeded one million.
On April 17, 2020, Geyser Brands Inc. (TSX code: GYSR) has reached a strategic investment agreement with China ’s largest hemp company, Hanma Investment Group (hereinafter referred to as “HMI”), becoming a strategic partner.
HMI is China’s largest comprehensive industrial cannabis investment group, and is also an industry leader and innovator in China and the world. HMI is one of the world’s largest producers of industrial hemp CBD extraction, has industry-leading patented technology, and has established a strong influence in many downstream markets of the cannabis industry.
“This agreement is an opportunity to consolidate our relationship with a leading global hemp company. For Geyser, this is a huge opportunity to work with top companies to jointly open the world’s largest consumer market for our products. Through HMI as a strategic partner, we can establish a complete supply chain and distribution channels to build our pet platform into a leading brand to the global market. “said CEO of Geyser Brands, Andreas Thatcher.
HMI will become a strategic shareholder of Geyser Management Inc. (hereinafter referred to as “GMI”), which holds 35% of its outstanding shares. 0957102 B.C. Ltd., a wholly-owned subsidiary of GMI, is one of the few Canadian full-license cannabis companies approved by Health Canada.
GMI will combine Apawthecary Pets, a cannabis pet health brand of another subsidiary of Solace Management Group, with legal cannabis and related product development capabilities to create a unique cannabis-based pet product platform in the world. Deliver high-quality cannabis pet-related products to the legal cannabis market worldwide.
“The agreement is based on the mutual promotion of business in Greater China and Canada, including the expansion of the distribution channels of Apawthecary Pets pet products in the Greater China market and the import of hemp group CBD extracts in Canada.” Said Mr. Tan Xin, President of HMI.
“Our global platform is focused on building a complete industrial chain from breeding, planting, processing, R & D, production to distribution. At present, the cannabis industry has gradually evolved from competition for license resources to competition in subdivided application fields. We believe that pet health care, pet medical and pet breeding market will be an ideal development direction. Taking China as an example, the number of pets in China has exceeded 130 million in 2019, ranking second in the world after the United States, but the number of pets per capita is only 0.09 / People, this shows the huge potential of the pet market. We are very happy to take advantage of the growing advantages of the Chinese market and our foundation in the field of biopharmaceuticals to cooperate with Geyser to create a global platform for GMI and to show our passion and love for small animals turning into a great opportunity ”
According to the terms of the agreement, the HMI appointed Geyser as its exclusive agent for cannabinoid raw materials in Canada, directly or indirectly acquiring, purchasing or exporting various cannabis, industrial cannabis and any extracts including cannabinoids from Canada. As part of the transaction, the HMI will also provide Geyser with the cannabinoid raw materials needed for the end product, Cannabidiol (CBD) worth 2 million Canadian dollars, including CBD crystals, full-spectrum CBD oil, water-soluble CBD and other designated Cannabinoids.
We’ll introduce the largest CBD factory in China, Hanma Investment Group Co., Ltd. (HMI) in this article.
HMI is the only legal industrial hemp investment group in China. It’s based on the layout of the entire industrial hemp industry chain and oriented toward biopharmaceuticals. Moreover, it carries out hemp breeding, planting, extraction, R & D, production and sales on a global scale. Meanwhile, its business covers many fields such as biopharmaceuticals, food, health products, beauty cosmetics, medical devices, textiles and new materials.
As to Yunnan HEMPSOUL(Hansu) Biological Technology Co., Ltd. (Hanma CBD extraction and preparation factory; GMP standard), it’s a subsidiary of HMI.
HEMPSOUL(Hansu) has 3 major honors:
One of the largest single CBD extraction plants in the world
The only plant in the world that can extract geranyl flavonoid A
Benchmark enterprise in the industry of hemp extraction
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① Please contact HMI Cara below for other specifications of hemp essential oil. ② Please contact HMI Cara below for CBDV hypocannabidiol, geranyl flavonoid A
On November 11, CISOO, a subsidiary of hemp group, held a “Go your own way – CISOO 2019 new product launch” in Shenzhen, releasing the disposable electronic cigarette “Firefly” and multi-functional pod vape K1. The design process of the two products has its own features, taste experience and pricing with great originality and sincerity. At the same time, relying on the layout of health industry and the R & D strength of biotechnology of HMI hemp group, “hard core player” CISOO technology also released a new species of “Vapor Drink”, and the digital new sales channel system also officially appeared, bringing the latest new play way for the electronic cigarette industry.
Hundreds of agents, media and partners from all over the country and overseas participated in this new product conference of CISOO, and witnessed the appearance of CISOO brand and other new products. Among them, the number and scale of offline channel partners have broken the record of the e-cigarette industry’s new product press conferences.
Tan Xin, chairman of HMI and chairman of CISOO technology, attended the conference and delivered a speech, describing the whole industrial layout of HMI from plant planting, CBD extraction and processing, research and development of large health products to global sales, and looking forward to analyzing the huge potential of electronic cigarette + CBD industries into compliance development. Looking forward to the future, HMI covers more than 1000 kinds of industrial hemp + products in 14 industries, and will cooperate with the new digital sales channel system and partners of CISOO Technology to develop hand in hand.
Yang Wanzi, CEO of CISOO Technology, then came to the stage, explaining the brand story of CISOO and the brand concept of “Go your own way”. CISOO advocates that “be independent, dare to be yourself, and have your own persistence and accomplishment”, which is consistent with the value proposition of new youth in the new era.
Two new products of vapes were released at the conference. The first one was the disposable vape pen “Firefly“. The product is just like its name, and the biggest highlight is the cool design of night light like “Firefly” at the bottom, which is eye-catching. The rare two-color injection molding process in the industry is crystal clear and even more attractive at first sight.
Small stature also has large energy, “Firefly” is small and exquisite, open and enjoy, one can suck 300 times, with glacier mint, White Peach Oolong, taro ice cream, polar mung bean, snow mountain watermelon five selected fine flavor, to meet all kinds of picky requirements.
Another new product brought by CISOO is multi-functional CISOO K1, which advocates a new idea of “taste, outstanding play and brilliance”. With the innovative feature of “play, smoke and multi-functional”, CISOO has made comprehensive efforts to the three pain points of the industry, namely appearance, e-liquid leakage and taste, with a “real delicious price” of 99 yuan.
In view of the uniform appearance of products on the market, K1 adopts the integrated all-metal shell of flagship mobile phone technology, with dozens of processes carefully polished, comfortable to watch and hold.
The product appearance and process design of CISOO pod system K1 is highly inspired and creative, which brings the patented magnetic suction removable top cover, matching with contrast colors and free DIY, which is the most brilliant finishing touch.
In order to comprehensively solve the problem of e-liquid leakage of traditional products, K1 is innovated in many aspects from the inside out: first, a novel round cartridge and cross protection structure are used to ensure that the air is evenly stressed and strictly prevent e-liquid leakage; in addition, vape juice locking + ceramic double-layer osmotic atomizer is used with an inverted funnel structure to further improve the protection.
CISOO K1 is designed with constant power output throughout the whole process, with strong atomization power and consistent taste, meeting the demanding requirements of high-level players. Equipped with a new generation of micron-level ceramic atomizing core, thousands of honeycomb micropores atomize vape juice in 360 degrees carefully to ensure every puff is fine, soft and pure. K1 also adopts non-direct air flow triggering channel, which is carefully designed to protect the main device and ensure safety at all times.
In terms of taste, K1 selects six popular flavors, including snow mountain watermelon, taro ice cream, polar mung bean, glacier mint, White Peach Oolong and nut tobacco, which are elaborately blended and experienced to the best degree.
CISOO K1 starter kit is sold at 99 yuan, each kit includes 4 pods, in addition to six flavors, there are mixed flavors. At the same time, the “colorful top cover” accessory was released, 29 yuan. Users can create their own e-cigarettes according to their own preferences.
CISOO Technology, is not only e-cigarettes. It is committed to bringing a healthier and cool lifestyle to young people around the world. In addition to two new e-cigarettes with distinctive personalities, CISOO also brings a new species of integration of biotechnology and atomization technology – Vapor Drink, which includes taste type and function type. The former can bring cocktails, coffee and various dark tastes (such as crawfish , mustard, etc.), the latter has the functions of refreshing, relieving fatigue, relieving nasal congestion, helping sleep, etc., greatly expanding the imagination space of atomizers.
As a subsidiary of HMI hemp group, CISOO Technology focuses on atomization technology, digital technology and new sales channel ecology. It will firmly support the new policy of e-cigarette regulation, reconstruct offline sales channels with the digital new sales channel system, and strive to be the leader of offline channels.
In the past year, e-cigarette has become the hottest topic. In addition to attracting a large number of entrepreneurs, e-cigarette is also an industry favored by capital. Behind “barbaric growth,” regulation and standards may be late but never absent. With the coming out of “national standard” and the gradual implementation and improvement of various relevant regulations, electronic cigarettes will inevitably usher in a round of industry reshuffle.
In this regard, some people in the e-cigarette industry said, “on the one hand, the e-cigarette industry is becoming more standardized, on the other hand, there are many entrants in the domestic e-cigarette market, but from the perspective of independent innovation and technical strength, e-cigarette still lacks a hard core player.
“We plan to launch our own brand CISOO to enter the e-cigarette market through Xiwu technology, a subsidiary of our company.” recently, an insider from HMI group revealed that it will enter the e-cigarette market. Many people in the electronic cigarette industry are optimistic about this, saying that the entry of HMI group not only has a pulling effect on the industrial chain, but also has a positive role in promoting the healthy and orderly development of the electronic cigarette industry.
It is understood that Xiwu technology is the flagship enterprise of HMI group, which carries consumer business. It is mainly committed to the research and development of atomization technology products and the construction of new sales channel ecology. The founding team comes from the head Internet enterprises and large-scale consumer electronics brands, such as Tencent, Alibaba, Huawei, Jinli, Coolpad, etc., and has achieved success in product research and development, brand operation, sales channel, etc. It merits experience and resource advantage.
According to its official website, HMI group is the only legal domestic investment group based on the layout of the whole industrial chain of industrial hemp, with the direction of biopharmaceutics. It carries out the business of breeding, planting, extracting, R & D, production and sales of industrial cannabis around the world, and is committed to promoting the industrial revolution of biomass alternative minerals, and becoming the world leader in the comprehensive application of hemp industry. As the world’s leading and domestic leader in the industrial cannabis industry, HMI group holds the full license of industrial cannabis, and its enterprises mainly include Hanzheng technology, Yunnan hansu, Soul Hemp biology and Hanyi biology, most of which have become the “favorite” of listed companies.
In the exploration stage of some e-cigarette enterprises trying to build patent barriers to win the next round of competition, HMI group, as a “hard core player”, has carried out a comprehensive planning and layout of the global intellectual property rights of the cannabis industry, and applied for more than 90 domestic and international invention patents in the field of biopharmaceuticals and mass health.
In addition, HMI group, as the leader of the comprehensive application of cannabis, actively participated in the construction of the industry in addition to its own development, invested to build a life science research institute, and cooperated with Yang Baofeng, President of Harbin Medical University, to establish a academician workstation. The group has established in-depth cooperative relations with well-known scientific and technological institutions at home and abroad, such as the general post military equipment research institute, Harbin Medical University, NCIA, EIHA, and focuses on the research and development of industrial cannabis, large health products, and vape juice.
In addition to the first development of the industrial cannabis industry chain, HMI group also has many exclusive technologies in the field of biomedicine and other fields, and with the substantial advantages of these cutting-edge “biotechnology”, it will also become the entry point of its electronic cigarette industry.
According to the 2018 World Tobacco development report, in 2018, the global sales of new tobacco products reached US $24.7 billion, a year-on-year increase of 45.8%. Among them, the sales of e-cigarettes reached US $14.52 billion, a year-on-year increase of 27%. The development space of e-cigarettes is still very broad.
In other words, after the “barbaric growth” in the early stage, and then gradually returning to rationality, the electronic cigarette industry finally ushered in the era of 2.0 after the chaos of 1.0. What kind of help will the HMI group bring to the healthy and orderly development of the electronic cigarette industry? Let’s wait and see.
Hanma Investment Group Co., Ltd. (HMI Group) Subsidiary Jianma(Hainan) Boitechnology Co.,Ltd. (Jianma Biotech) held new product release meeting in 798 Art District on May,20th ,2019. We together witnessed the birth of the world’s first mirror e-cigarette. Jianma Biotech published two brands smoke oil iLAX & iOil as the first domestic pure natural PD pod vape juice.
HMI Group subsidiary Jianma Biotech developed iLAX with more than 400 days’ efforts. HMI Group is the only legal investment company in China focusing on the whole industrial chain of industrial hemp and the direction of biopharmaceutical. HMI Group focuses on the whole industrial chain investment of industrial hemp, from breeding, planting, extraction, R&D to production and sales worldwide, covering areas of biopharmaceutical, food, health food, beauty and cosmetics, medical devices, textiles, new materials, etc. Peter Tan (Chairman of HMI Group) gave the answer at the meeting about the relationship of industrial hemp & E-cigarette.
iLAX is not related to industrial hemp ingredients, which is safe and reliable matching the people’s pursuit of health. There are about 360 million smokers in China with big demanding for smoke replacement products. It’s the reason why I determined to invest in the vape industry. I wished iLAX would become the vape industry leader racing with Juul.
iLAX selected advanced materials & process which can make perfect smoking feeling to the users. iOil is the brand of smoke oil and it is the 1st independent brand of domestic E-cigarette enterprises. iOil adopted natural PD base solution replacing of common e juice containing VG and PG. iOil flavor no longer stayed at the stage of physical mixing of flavoring as ordinary e-liquid, which aimed to achieve a breath experience of one-mouthful smoking and multi-level presentation through the extraction and synthesis of flavoring molecules. ILAX innovates the use of 3D hot bending forming flowing glass and hot pressing casting zinc alloy as shell material, abandoning the commonly used aluminum alloy pipe drawing technology in the industry. And iLAX uses streamer glass to present aurora, deep sea, ice sheet and jadeite color inspiration to achieve this. It is also the first attempt of streamer glass material and technology applied to mobile phone backplane in electronic cigarette products through 3D thermal bending technology. In addition, the iLAX frame is made of zinc alloy, a mainstream metal material commonly used in laptops, which ensures high stability while adding layers of metallic texture to the mirror body shell.
At present, the market of E-cigarette industry is still in the stage that players frequently come in and go out. The homogenization competition in the Chinese market is extremely fierce for the ranking and public recognization. At the same time, users are growing and becoming picky. More healthy products will stand out as the birth of iLax which will lead the new consumption of innovative E-cigarette products. HMI Group will continue to strengthen its scientific research strength in key industries & technologies to create world-class innovates and promote the development of industrial hemp in the field of health boosting in the future.
Whoopi Goldberg has a product line of body balm that’s derived from it. Gwyneth Paltrow’s wellness platform Goop has also added its stamp of approval having partnered since last June with MedMen, a California-based marijuana dispensary chain. Welcome to the boom in cannabis-related health products.
Known as CBD, short for cannabidiol, the substance that is generally extracted from hemp or marijuana is expected to create a market estimated to be worth $16 billion by 2025, an eight-times leap from now. CBD is non-psychoactive and its proven therapeutic benefits have legitimised its entry into a wide array of consumer products.
For China, home to half of the globe’s cropland for legal cannabis, CBD’s growing popularity offers a lot of upside. Following the legalisation of hemp in the US last December, the Chinese government has accelerated corporate licencing for cannabis cultivation, with Jilin province in the northeastern rustbelt being mulled as the third crucible for industrial hemp production after Yunnan and Heilongjiang.
The policy changes mean A-share investors have been getting high on so-called ‘marijuana concept stocks’. Many placed their bets on partners of Hanma Investment Group because no other company can match its reach over China’s CBD sector. Supported by 12 units, none of them listed, Hanma’s business lines cover the entire production chain, from cannabis plantation and CBD extraction to applications for its use including biopharmaceuticals.
A-share firms that have announced partnerships with Hanma such as Chengzhi, Dezhan Health and Shanghai Shunho all saw their shares surge strongly in the year to date. Meilleure Health, which has a 20% stake in Hanma’s flagship unit Hansu Biotechnology, likewise saw its Hong Kong-listed stock trade up 279% in the same period.
Hanma was established in 2013 by Hunan native Tan Xin. Son of a diplomat, Tan started his career in the military at 16 and after he was discharged he worked briefly for the Ministry of Foreign Affairs. After finishing his Master’s in Business Administration at the University of South Florida, Tan returned to China and worked at two firms associated with the People’s Liberation Army, including one that produced the hemp fibre used in the PLA uniform, the People.cn reports.
Today, Hanma works closely with various defence units through its subsidiary Hanyi Biotechnology to develop drugs for the military. Hanyi also launched SUTIWA, a hemp-infused drink, and cosmetic brand Cannaclear in 2016 and 2017 respectively.
Market leadership hasn’t guaranteed success for Hanma, though. “The business for industrial hemp is going to be tough for Chinese players in the next few years,” Tan told National Business Daily, noting that the company’s profit margins had peaked at 50% in 2017. For the fall off, he blames rising labour costs but also Hanma’s relatively weak technological capabilities compared to its peers in developed countries.
“[Internationally] our product lacks competitive advantage. The CBD content in our cannabis strain is only 1.2% on average, compared to 3% in the US, or even 10% for those grown outdoors,” said Tan, who believes Hanma’s efficiency can only improve through acquiring higher quality hemp seeds.
Last year the company’s hemp extraction unit, Hansu Biotechnology, partnered with Kings Royal Biotech to construct a $40 million processing facility in Kentucky following an acquisition of a 35% stake in the US cannabidiol supplier. It is also building another extraction plant in Las Vegas, due to open in June. Hansu is expected to book Rmb78 million ($11 million) in net profit this year, according to a filing by Shenzhen-listed Galaxy Biomed, which has a 5.6% stake in Hansu.
Hanma’s business straddles 14 sectors. Its next big thing: an e-cigarette, as indicated by a deal struck in February with cigarette label manufacturer Shantou Dongfeng Printing and vaporiser producer Shanghai Shunho
Mr. Tan Wei, the founder of HMI Group, is interviewed by the Chinese vape trend culture magazine Dr. V and published forward-looking opinions on the concept of industrial marijuana, and views on the present and future of the cannabis industry and the trend of the combination of vapes and marijuana.
“CBD is synonymous with health. The wave of global legalization of cannabis is due to the strong effects of cannabis on human health, especially for neurological diseases. Medical marijuana fully reflects people’s pursuit of physical health. This is something that no organization or government can block.”
Background: Selling recreation use cannabis to people in China is very likely to be sentenced to death
The following is the original interview:
Dr. V: “You have done a very large legal cannabis business in China. So what is the legalization of industrial marijuana?”
Tan Xin: “In traditional education, we began to hate drugs because of the opium war against the Chinese people. The attitude towards drugs is actually the same in the world. But everyone seems to have overlooked a problem, that is, the use and dosage, if properly controlled, many so-called poison ingredients can also become a good medicine.
For example, arsenic trioxide, also known as ‘arsenic’, has special effects in the treatment of certain leukemias. This shows that in a reasonable place, mineral poisoning can also be very good medicine.
The same is true for morphine, which is a form of opioid, but patients with advanced cancer use morphine to relieve pain. When morphine is used as a medicine, it gains world recognition. Morphine drugs are also known as opioids in the United States. In the recent ‘Fentanini Incident’, Trump has said that opioid products are poisoning Americans (such drugs are mostly produced in Chinese factories) because the drugs are addictive. But at the same time, the stock price of the companies involved in the production and sales of cannabisdiol (CBD) has risen sharply. This shows that in the future, cannabidiol will replace traditional morphine pain killer drugs.
The third example is Yunnan Baiyao, which is familiar to all of us. There is a Chinese medicine called Yunnan Uygur in the formula of Yunnan Baiyao. It is the ‘breaking grass’ mentioned in our martial arts novels and is toxic. Yunnan Baiyao was removed from Hong Kong in the past few years. Europeans and Americans have never agreed with this ingredient. However, the Chinese believe that the legal preparation process and legal use will bring benefits to the human body. Just like in ancient China, people have used poison to kill the poison.
We can say that marijuana is a useful ingredient as long as it is established as a starting point for the sake of health after talking about the above three cases. And it’s beneficial when using at a proper dose.”
Dr. V: What is your understanding of medical marijuana? What is the prospect of HMI in this regard?
Tan Xin: Pharmaceutical is the most healthy and ideal direction. Cannabis has more toxins than other plants. For example, poppies are difficult to make fast-consuming products and beverages, because a little use will immediately activate the human spirit, so it can only drugs can be used. Because of its complex composition, marijuana has more than one hundred ingredients that are not found in other plants. Many substances extracted from hemp is isolated from toxins can be used as food health products. Therefore, we cannot use the term “marijuana” to cover all the characteristics of marijuana.
Dr. V: What are the specific differences between recreational marijuana and industrialized marijuana? Does it mean that entertaining marijuana is cannabis that retains some toxins? Is medical marijuana that removes toxins and only retains health-care substances?
Tan Xin: It can’t be fully understood like this. Because the “toxin” component of cannabis, a “toxin” component, also has medicinal value, it is also a raw material for pharmaceuticals in biopharmaceuticals. However, if this ingredient is not used in medicine, it can become a major component of entertainment cannabis in the market.
CBD with Infinite Potential
Dr. V: As far as you know, what is the competitive advantage of the CBD in the legalization of cannabis worldwide?
Tan Xin: Cannabidiol is not legally available worldwide. Some countries are still relatively in the gray area. The latest news is that the regular session of the sixty-second session of the UN Commission on Narcotic Drugs will be held in Vienna from March 18 to 22, 2019. The cannabis industry is looking forward to the resolutions of the conference, as this meeting received and considered the following recommendations from WHO: Pure cannabinol (CBD) should not be included in the international drug control conventions, it is legal worldwide since this day. The application of CBD is quite extensive. I have seen reports that 7 out of 100 people in the United States will use related products, and the usage rate is very high, far exceeding THC. In the electronic cigarette industry, THC cigarettes have a market advantage in the early days of opening, but in reality, the potential of THC is limited. In the United States or Canada, people who smoke marijuana usually have a party, and some people may only smoke it one or two times in their lifetime. It is not a standing fast-consumer product. The CBD e-cigarette can be turned into a product that can be vaped at any time. It can relieve stress and so on, and it will be more competitive in the future.
Dr. V: How do you think about the legalization of CBD in China?
Tan Xin: There’s a future from the beginning. Everything has a breakthrough. Now that China has a breakthrough in “industrial use” of cannabis, we will develop it in a formal and state-prescribed form and gradually expand its influence. Whether through the way of atomization or eating, people should be able to enjoy the benefits of CBD.
Dr. V: We already know that many domestic enterprises have obtained industrial marijuana licenses. What do you think is the core of CBD in the future?
Tan Xin: I think these companies belong to those who see the potential of the future in the capital market, but can these new companies stick to it? First of all, we need to know what licenses are. Planting licenses are totally different from industrial hemp mosaic processing licenses. Planting licenses without subsequent extraction and processing capabilities are not of great value, so many planting enterprises must rely on extraction and separation enterprises to develop, and it is difficult for them to have core competitiveness in the industrial hemp industry.
Dr. V: As a listed company with permission to grow cannabis, what do you know about Shunhao Co., Ltd?
Tan Xin: Shunhao is one of the partners of Hanma Investment Group. The electronic cigarette company jointly owned by Shun Hao and Dongfeng is called Lvxin. A joint venture company was established with Hanma Group’s Hansu Biology, an extraction plant with the Industrial Hemp Mosaic Processing License, to explore the application of industrial hemp substrates in HNB vape products.
Dr. V: PAX, JUUL, PMI and other enterprises are involved in the CBD industry. What are your views on the global CBD industry future prospect?
Tan Xin: I don’t think the industry data of this industry is real enough. Every time an industry report comes out, it will be overturned by other industry reports in a month or two, and the number of reports is extremely large. I can not use a single data to summarize the future CBD market usage, but I can give an example of Hanma Group. We produce a drug for epilepsy, 300 mg per person per day, then 10,000 people will use one ton per year. In the future, if 5% of China’s 9 million epilepsy patients use our medicine, it will be 45 tons of CBD. China currently has 300 million smokers, so it would be a gigantic number for CBD usage.
CBD and Electronic Cigarette
Dr. V: At present, CBD has been integrated with electronic cigarette industry in North America, and electronic cigarette has become a derivative of cannabis. What do you think of this problem?
Tan Xin: If CBD is used in electronic cigarettes, it really changes the traditional entertainment scenario and use of electronic cigarettes. Therefore, making CBD electronic cigarettes needs later market education. In fact, electronic cigarette does not belong to cagarette in my opinion, but is an aerosol route of drug administration. We know that many asthmatic patients use aerosol route because of faster absorption. CBD electronic cigarettes are easy to understand if we change our concept into an atomized route of administration. But it can’t be the form of cigarette, which is also the idea I advocate with many electronic cigarette companies. Atomization platform is the concept of health, just like your magazine’s original intention is to focus on big health. In fact, the same thing can be said differently, and it will be more accurate for people. Therefore, the combination of electronic cigarette and marijuana cannot leave the word “health”, so that the application of industrial marijuana will have a stronger vitality.
Dr. V: Do you think that the combination of CBD and electronic cigarette equipment will become the best way of CBD intake and the industry trend?
Tan Xin: Some people have said that cannabis products will be the world’s largest consumer goods. In combination with marijuana, we can adjust the vapes to allow people to vape until there is a fantastic feeling. More marijuana consumers do not actually want to enjoy the overwhelming pleasure, just like many people drink but not to get drunk, they enjoy a slightly drunk feeling. Electronic cigarettes have the ability to make you little drunk, it can be controlled, so that the market space will be very large. From the perspective of investment of Altria and Anglo-American tobacco, the CBD industry is very promising.
Dr. V: How does a small electronic cigarette device realize the medical effect of CBD through atomization?
Tan Xin: If the electronic cigarette itself is added to the CBD, no matter what oil is used as the carrier, there is a problem of solubility, so it does not work well. Most electronic atomization device is also a conceptual product. For example, a 1-2 mg CBD does not have much impact on the human body. In the biopharmaceutical field, the CBD needs to achieve a certain amount of efficacy. The development of higher-end devices capable of heating pure CBD will have market space in the future. Our group is also doing this work, it will be more targeted at people with diseases that need treatment, not just a concept.
Dr. V: In the export of the vape industry, CBD has become one of the main raw materials of vape juice containing nicotine. Do you think China is likely to become an exporter of raw materials in the future?
Tan Xin: China’s not going to be the biggest exporter. Because with 40 years of development, China has no production advantage now. Our labor costs are very high. Countries like Vietnam and Myanmar have greater advantages. We need to make our own market now.
HMI, Present and Future of Industrial Cannabis in China
Dr. V: What are the main businesses of Hanma Investment Group at present?
Tan Xin: Hanma Group is the only enterprise with the whole cannabis industrial chain in China. From seed planting, extraction, processing, R&D, intellectual property rights, to products and markets, we have formed an industrial closed-loop. Hanma Group has done so many things from beginning to end, which is not my wish, because China’s law is not sound at the beginning, no company can cooperate with us, to make the industrial chain is also a special case of the times. From the first day of participating in the industry of cannabis, we have positioned the investment group in the direction of biopharmaceuticals, and its strategic direction is very clear.
For some non-pharmaceutical patents and research results, we will also slowly release to integrate with the fast-food industry. At present, ALD, who has worked as our partner, has the main direction of marijuana oil vape product. Some large domestic electronic cigarette companies are also buying products from us to do research. A listed company providing flavor for China tobacco is also developing and heat not burn cigarettes with our raw materials.
In addition to the tobacco fast consumer industry, we have also made some cooperation with some food brands to make cannabis food, of course, in accordance with Chinese law. We have plans to do research and development with some big cosmetics companies. Cannabis catechol is the raw material of some skin care products in Europe and America. It has good effects on anti-aging, whitening, acne removal and cell regeneration.
Hanma Investment Group concentrates on one thing. We are more focused on the research and development of upstream, midstream and application technology of industrial hemp. It is not the advantage of Hanma Group to push a variety of fast consumables to the terminal retail market. We will find some companies that are able to and willing to differentiate and upgrade, and use the channel advantages of their traditional industries to develop together.
In China, marijuana in the form of entertainment is problematic and prohibited. As a Chinese enterprise, Hanma Group opposes the legalization of all forms of entertainment marijuana. We only pursue its industrial and medicinal uses. We will also widely promote the use of fast-consuming products. We will never touch entertainment marijuana.
Dr. V: What is the global industrial prospect of Hanma Investment Group now? What kind of plan will HMI carry out in the future?
Tan Xin: We don’t invest in recreational marijuana. There’s no capital market for recreational marijuana. It belongs to some special countries and regions, and industrial marijuana belongs to the whole world. We have set up a factory in Nevada and obtained a full license for industrial marijuana. We plan to start production in the second half of this year. Hanma Group will also get a license in Canada this year to improve the development in North America. Relying on Canadian federal cannabis law, American federal industrial cannabis law, and Chinese industrial cannabis law, Hanma Group accounts for almost one-third of the world’s most cannabis consumable market, with a population of about 17.8 billion, which is our first step in the plan.
The second step is in Europe. For example, in Germany and Britain, the grow of vapes is also very fast, so our strategic direction will be developing there and promote products.
Dr. V: We noticed that you also used iQOS’s heat not burn product. Do you have any feelings or suggestions about this product after using it?
Tan Xin: I’m also designing a product that specializes in hemp heat not burn. Heating cannabis without burning is also the preferred direction of tobacco giants in the world. Now we can see how much tar is on the packages of cigarettes. Our products are made from cannabis leaves. It can also clearly indicate the content of CBD and THC, or only contain CBD. This requires classification and superb technology. Industrializing agricultural products like marijuana can complete what I said. Firstly, all the ingredients of hemp should be separated and then reassembled to make this kind of tobacco. This is much more complicated than the ordinary vapes, but the experience will be more than the ordinary vapes. Large international tobacco companies have visited our factories and are hopeful to cooperate with Hanma Investment Group, because only we have the technology and ability to separate and restructure agricultural products. This product will be more competitive in the future market.
At the end of the interview, Tan Xin told Dr. V’s readers: “I hope the development of the cannabis industry, the application of cannabis bisphenol, in the field of electronic cigarettes, is not only a process for us to enjoy entertainment, but also to enjoy health.” This is the hope for every vapor, and also a good vision for the combination of vapes with the CBD industry.