Myst Labs Press Conference & Media Interview
Time: 9:00 AM on April 8, 2020
Location: Shenzhen, China—Silicon Valley, USA Online synchronization
Table of Contents:
1. Chen Min, CEO of Myst Labs
2. Xing Chenyue, Chief Scientist of Myst Labs
3. Myst Labs COO Liu Yu speech
4. Speech by Mou Hongshuai, Vice President of Sales of Myst Labs
V. Media interview
NOTE: The following details are roughly translated due to its lengthy content, so errors and omissions are inevitable. Contact VAPE.HK or the Myst Labs brand for more accurate data.
1. Chen Min, CEO of Myst Labs
Chen Min: Technology is breaking dawn, Myst Labs is in the spring. My name is Chen Min, CEO of Myst Labs. Myst Labs is the flagship brand of Myst. Thank you very much for coming to the online conference of our nicotine X new technology and S1 series of new products. Today, there are partners and media friends from all over the country who are standing on this special stage at this special time. I have mixed feelings. On the one hand, the new crown virus is raging around the world. China has experienced two and a half months of national isolation After the pain of economic stagnation, the epidemic has just stabilized, and the whole society is ushering in the dawn of recovery. Here, allow me to bow in particular to my partners in Hubei and Wuhan. Thank you for your efforts and sacrifices. I have won time and shared experience for the national epidemic prevention and control and even the world’s epidemic prevention and control. On the other hand, for the e-cigarette industry we are in, the past year has also experienced ups and downs, and today we are at a historic new starting point. This industry needs to break through, but as the enterprise itself, we hold the mentality of organizing the board and hope to use continuous innovation technology and products to work with all partners to jointly advance this industry.
Today’s press conference brought four parts of the report by myself, our chief scientist Dr. Xing Chenyue, our COO Mr. Liu Yu, and Mr. Mou Hongshuai, vice president of sales. I mainly introduce the following four parts, namely: the development of the industry, the growth of Myst Labs, the technical layout and product planning, and our development vision.
First look at the overall situation of the entire industry. Since the birth of the e-cigarette industry, it has caused a lot of discussions with different views. Different people have different positions and naturally different views. But if we return to observing the essence of an industry, we look more at the model and the data. Let’s first look at the comparison between the US and Chinese markets. The reason why the US is used as a model is that the US is currently the world’s largest e-cigarette market. What inspiration will its development give us? The latest statistics on the number of smokers in the United States is 34 million, which is less than one-tenth of China’s 350 million smokers. The penetration rate of e-cigarettes is close to 30% in the United States and less than 1% in China. In other words, the use of e-cigarettes in China has just started, and this huge population of smokers will provide a huge market growth space. Let’s take a look at the growth of the global electronic atomized cigarette market in the past three years. Here, heating and non-combustion products are not included. The global electronic atomized cigarette market scale exceeded 10 billion in 2017, reaching 16 billion in 2018, and 2019 relative to 2018 The annual growth rate is more than 100%, reaching more than 30 billion US dollars. Obviously, this is an accelerated exponential growth trend. Looking back at China’s market size, from the figures, it was about 4 billion yuan in 2017 and 5.15 billion yuan in 2018, but in 2019 it also increased by more than 100% to 11 billion yuan. This growth trend is basically synchronized with the global market, and the growth rate in 2019 is even higher than the global market.
These market data can see the growth of this market intuitively and easily, but for Myst Labs, we see more of the positive significance of the harm reduction of electronic cigarettes behind the numbers, which is also the birth of Myst Labs The source is also from the original intention of a scientist.
The well-known Nobel Prize founder, the Swedish scientist Alfred Nobel, said that the progress of scientific research and its expanding field will evoke our hope. How to apply the achievements in the field of chemistry to e-cigarettes to improve the acceptance of smokers and reduce the harm to the smokers’ body at the same time, this is exactly the research philosophy of Dr. Xing Chenyue’s beginning and end, which has been running through the invention that she was invented Nicotine salt brings the entire research process of Nicotine X to Myst Labs today. Everyone knows that the invention of nicotine salt once brought revolutionary changes to the entire e-cigarette industry. The latest nicotine products have pushed the e-cigarette industry that has been ten years old to a new height, and also helped JuuL quickly The e-cigarette industry has become a leader, and from the user level, the conversion rate of American smokers using e-cigarettes has increased by 5 times. Because of this background, when Dr. Xing Chenyue founded the Myst Labs brand last year, it attracted the attention of major domestic and foreign media. Among them, Bloomberg also interviewed Xing Chenyue specifically, the title is “The female scientist who invented the Juul electronic cigarette is looking at China”. Therefore, we believe that the nicotine X technology brought by Dr. Xing today will also have a profound impact on the e-cigarette industry.
The growth of Myst Labs
Myst Labs was born in March last year. I was very happy to attract a group of elites from all walks of life to work together. Among them were successful multinational investors, blackberry traders in China, P & G sales champions, and some The design master who won the Red Dot Award, as well as the product manager from Google and the marketing expert from Tencent, each of them brought unique experience and ability to the company, but more importantly, they chose to believe in doing this This event can bring positive influence and positive change to the majority of smokers.
In the past year, Myst Labs has been playing steadily, following the laws of the market, and laying a solid foundation. In July 2019, we took the lead in launching the first push-pull concealed cigarette changer product P1 and the disposable product G1 in the Chinese market. Both products have established a good reputation for their novel design and solid quality. In November 2019, our first Myst Labs brand store in China opened in Wuhan, so we improved the franchise + distribution channel structure. At the same time, we also invested a lot of resources to maintain and support the channel. Even during the outbreak, we also For the franchised stores, we have proposed a rent-sharing plan. We also provide masks and other protective products to all channel partners for free. Also in November last year, we participated in the Birmingham e-cigarette exhibition for the first time. With this as a symbol, we began to enter the international market. From the first day of the company’s establishment, we have firmly grasped the main line of technology and products, and spared no effort in technological research and development and product innovation. The new products of nicotine X and S1 released today are the staged result of our continuous investment and efforts.
Myst Labs is based on integrating the advanced technology of Silicon Valley in the United States with China’s powerful supply chain resources to serve the global market. At present, our headquarters and core technology laboratory are located in Silicon Valley, the global operation center and the Chinese sales headquarters are located in Shenzhen, and we have also established regional business centers in London and Singapore, mainly radiating the local markets of Europe and Southeast Asia. Today our products have been sold in China, Britain, Canada and other markets, and we will soon enter Southeast Asia, Russia, New Zealand and other markets.
Technical layout and product planning
As I mentioned in the previous article, technology and products are the main line of development of Myst Labs and the genes of our growth. We hope that products can be plugged into the wings of technological innovation, with innovation as the core and technology as the means to reach users with products.
Today, with an in-depth understanding of e-cigarettes, we have placed the foothold of technology in three areas. The first is the core nicotine technology of e-cigarettes. At the current stage of technological development, it is still nicotine to solve the problem of smokers’ addiction. Of course, with the advancement of technology and the deepening of research, we do not rule out the possibility that other material ingredients will play a role in detoxification Sex. The development direction of nicotine technology is to improve the absorption efficiency of nicotine, thereby reducing the concentration of nicotine in e-liquid, and more scientifically combine the flavor of natural tobacco, focusing on smokers to reduce harm, rather than becoming a new source of addiction. Later, Dr. Xing will elaborate more on this.
Our second foothold is atomization technology. If the generation mechanism of e-cigarette smoke is likened to cooking, after preparing the e-liquid material, atomization is the way to cook. Whether we use steaming or cooking or frying, not only should we cook the food, but also It has a good taste, which involves the selection of the material of the atomizer, the control of the heating temperature and so on. Of course, there is a more important point to reduce the probability of e-liquid leakage. Since the electronic cigarette is a carry-on item, different users have different temperature usage environments in different regions, and at the same time, its transportation and storage will also face the challenge of changes in air pressure. So this puts high requirements on the atomizer and atomization technology.
The third foothold is the sensor. It is the strawberry on the cake. You can eat the cake without it, but with it, the cake will be delicious. The sensor itself is the perception of the user’s behavior. We hope that the machine can breathe with people, so as to provide users with a more delicate feeling. Our goal is not just to make a qualified product, but to make an excellent product.
In addition to the layout of the core technology, Myst Labs has also planned two categories of products for different user groups and consumption scenarios. One type is a bomb-changing product, and the other is a disposable product. Among the bomb-changing products, we launched the first wide P1 in July last year, with an original push-pull hidden cigarette holder function, which can maintain the hygiene of the cigarette holder, which is especially important during the epidemic. At the same time, the body of this product also uses the top stainless steel material, the texture is more prominent, mainly facing the high-end business people. Today we will launch the second bomb-replacement product of the S1 series. This product uses a more intimate intelligent pneumatic sensor to make your every breath more comfortable. In addition, we also adopted the design of FPC flexible circuit board, which can pile up a large number of precision components in a narrow and limited space, which is more reliable and has better heat dissipation. The industrial design of this product also has its own unique features. Later, Mr. Liu’s report will introduce this product in more detail. For disposable products, Myst Labs product P1, which we have listed on the market, is one of the most well-designed and manufactured disposable products on the market. The entire shell of the product uses food-grade materials. The shape design can make people think of different associations such as cut fruit, chocolate, lipstick and so on. At present, we are continuing to polish the second disposable product. I believe that when it comes out, both the design and the cost performance will make the market shine.
Myst Labs’ development vision
Let me talk about the vision of Myst Labs as an enterprise. In fact, e-cigarettes are a young industry. The development process of each industry is actually intertwined with positive and negative voices. Although the recognition is inspiring, but questioning why it is not a driving force? It will drive our practitioners to continuously improve technology and products, and dispel the doubters’ concerns. Many people describe the end of 2019 as the darkest moment in the e-cigarette industry. Here I may give two examples to judge how the e-cigarette industry as a industry is back.
Last year ’s news report on unidentified pneumonia caused by e-cigarettes in the United States actually caused a great blow to the confidence of e-cigarette users and practitioners around the world. When the cause is not determined, it is widely recommended that the public not use e-cigarettes. Why withdraw this recommendation? It was found through investigation that e-smog disease mainly came from those cannabis THC aerosolized products sold on the illegal market, and further investigation also found that it was caused by the vitamin E added to these products. But nicotine e-liquid has been cooking for months.
As another example, on February 20, the American Heart Association ’s Academic Weekly, the American Heart Association magazine retracted a paper on electronic cigarettes that had been published. Why should the withdrawal process be done as well? This paper mainly talks about the connection between the use of electronic cigarettes and heart disease, as well as the harm to the heart of using electronic cigarettes and cigarettes at the same time. The conclusion of heart disease, but the same paper has been circulating for nearly a year, and it has caused many people to seriously misunderstand e-cigarettes.
Fortunately, the truth may be late, but never absent. We do this because we believe in the significance of this matter. We will stick to Myst Labs’ vision and provide low-hazard products that replace combustible cigarettes for billions of smokers worldwide. In fact, when we first started to do this, many people around us, including friends and loved ones, didn’t know whether we should be encouraged, because they didn’t understand. But after doing it for a while, we gradually found that they began to support us in various ways. Friends of smokers will start using e-cigarette products and provide us with real and objective feedback. They will recommend their friends and relatives to use e-cigarette products, I think this may be the reason why we can always maintain the original intention.
The epidemic actually caused a big impact on the entire e-cigarette industry. Myst Labs is also a young company. We are also experiencing the baptism of the market. But we think that those companies that are still standing after the big waves will have a greater chance to occupy a place in the future market. We chose to release new technologies and new products at this time today, and we also hope to inject confidence into the industry and inject confidence into all our partners. This is our small goal for three years, and we will do everything we can to achieve this goal step by step. We have an industry heavyweight like Mr. Xing. We have a team that is not very young but full of passion. We have mature insights into this industry. We have the ability to introduce new technologies and products. In fact, my own mind thinks that our Ability is beyond this goal.
The Lunar New Year has passed, but the industry’s spring has just recovered. Myst Labs will uphold the concept of technology supremacy, adhere to the original intention of product drive, and look forward to a bright future with all partners, because our journey is the sea of stars. thank you all!
Chen Min: Because it is during the epidemic, I am sorry that Dr. Xing Chenyue cannot come to Shenzhen personally, but she will bring us today’s heavyweight in Silicon Valley of the United States, which is our nicotine X technology professional and detailed explanation. Thank you.
2. Xing Chenyue, Chief Scientist of Myst Labs
Xing Chenyue: Hello everyone, I am one of the co-founders of Myst Labs, Xing Chenyue, and also the chief scientist of Myst Labs. Today I am very grateful and welcome everyone to participate in the Myst Labs online new product and new technology release conference. In the past year, the R & D team of Myst Labs and I have invested a lot of time-based R & D budget in the Myst Labs E-liquid Laboratory in Silicon Valley in the United States. I am finally happy to be able to launch our Myst to everyone online and the new tobacco industry today. Labs latest research results, nicotine X technology.
Although the unexpected development of the global epidemic has caused our R & D team in the United States to temporarily work from home, and therefore unable to reach the Shenzhen venue to participate in this conference with colleagues from other departments of the company, this is a bit regretful. But I am very grateful for the development of Internet technology. I am honored that I can represent the entire R & D department of Myst Labs through video connection to unveil the nicotine X for the first time. We believe that Nicotine X is a technological breakthrough that can open a new era of electronically atomized e-liquid.
Let me give you a brief introduction to nicotine X.
Nicotine X, named X, because X in mathematics symbolizes the unknown and represents variables. Unknown represents infinite possibilities and represents the future; variables depend on how everyone reasoned and answered, and what kind of answers can be drawn. This time, Myst Labs brought you the answer to the three most obvious technical advantages of nicotine X: first, it is a high anti-addiction, low addiction; second, it reflects the true taste of smoke; finally, it also stunningly restores Chinese style Tobacco flavor.
Relative to the mainstream products on the market today, what progress has Nicotine X made in every detail?
Nicotine E-liquid Technology Development History
Since the advent of the first e-cigarette in 2004, in terms of e-liquid technology, it has mainly gone through two major stages:
During the first decade, nicotine free base was commonly used in e-liquid. This is because the scientists who devoted themselves to the research and development of electronic cigarettes in the early years studied which nicotine is the main component of cigarettes to provide smokers with satisfaction. But because of the basicity of nicotine free base, they added the free base directly to the atomizable e-liquid. However, because the conversion rate from e-liquid to mist is very low, and the absorption rate used by smokers is also low, so smokers do not get the expected upper feeling and satisfaction. Some teams believe that as long as the content of free alkali in e-liquid is increased, it can always provide a sense of supremacy and satisfaction to smokers, but in fact the result is contrary to expectations, smokers are trying high nicotine free alkali e-liquid After the product, because of the irritation caused by the alkalinity of nicotine free base, it caused a serious choking cough, and the feeling of use was very low, but they did not get the higher sense of satisfaction and satisfaction they expected. Generally speaking, the acceptance of those early electronic e-liquid products is very low.
Although this low sense of satisfaction and satisfaction leads to a relatively low addiction rate for e-cigarettes, the conversion rate of smokers from cigarettes to e-cigarettes is also very low, so the early years of e-cigarette products did not The original inventor’s original goal, which is to provide smokers with new options for quitting smoking, cannot be achieved. In the case where they can still use nicotine products, so that they can minimize the intake of poisonous and harmful smoking products. In addition to this, the taste of tobacco flavored e-liquid in the early years is also far away from real smoke, which has a strong artificial flavor. This is one of the main reasons why many smokers are not able to accept e-cigarettes.
In 2015, I worked with my team at that time to successfully develop nicotine salt formula e-liquid. This e-liquid was accepted and loved by the majority of smokers within a few months after it was officially asked to market, and became the current market. Mainstream products. The nicotine salt formula was produced because our team then proposed a hypothetical theory after studying the main chemical differences between the early years of e-liquid formula and natural tobacco ingredients. This theory believes that nicotine provides a sense of smokers. In fact, it is actually a balance with other acidic components in tobacco. Nicotine is present in the fog in the form of protonation instead of free alkali, in order to provide smokers with a sufficient sense of superiority. Based on this theory, we have developed a series of nicotine salt formula e-liquids, and finally selected nicotine benzoate e-liquid, which is now dominant in the market. Its excellent detoxification degree has successfully transformed many mature smokers into electronic smokers. But it is precisely because the upper sense it provides comes from high nicotine concentration of more than 3%, so its addiction is often criticized by many anti-electronic cigarette fighters. Although it is said that high-score tobacco-flavored e-liquid has not appeared in the market in recent years, with the chaotic development of the electronic cigarette industry, many company brands have launched many different fruity and sweet-flavored e-liquid. Temporary flavors, combined with high satisfaction and high concentration of e-liquid, are also often blamed as the source of addiction to minors or some new smokers.
Because of these controversies, the global e-cigarette industry and policy makers are now developing a major trend. It is hoped that the e-liquid will develop towards the low nicotine X and de-flavoring trend. This is actually the focus of Myst Labs since its establishment. Our Myst Labs R & D team has been addressing the pain points of mature smokers, and strives to find a breakthrough formula that can continue to meet the demand of mature smokers under the premise of low nicotine content, so that they can reduce their hope of returning to real smoke. The desire to experience the unique flavor of natural tobacco. Especially for Chinese smokers, the compound aroma of Chinese flue-cured tobacco is the most lacking in the global electronic cigarette taste.
The nicotine X e-liquid launched to everyone today, first of all, in the case of detoxification, when the nicotine content is reduced to 1.7%, it is still considered by the reviewers to be comparable to the performance of the 3% concentration of nicotine salt e-liquid, and has been widely Recognition of the degree of detoxification. At the same time, it has been optimized for the throat sensation, so the throat sensation and upper sense have also reached a higher level. This allows smokers to smoke this e-cigarette product more lubriciously when they get a certain sense of throat blow. In addition, many Chinese smokers gave us very high satisfaction with the latest fine-tuned Chinese flue-cured tobacco tastes in the evaluation. We believe very confidently that it is closer to real smoke than all the current tobacco flavors on the market, and perfectly restores the flavor of real smoke. At the same time, because we use a low concentration of 1.7%, it also greatly reduces the possibility that new smokers will become addicted because of electronic e-liquid. In general, nicotine X e-liquid will be a new product capable of hitting all five stars.
Core technology: the first LEGO formula
What kind of technology has created this product? The first thing to mention is the core technology of nicotine X, which is the Lego formula pioneered by Myst Labs. It is not a simple process of adding compounds. I believe you must be familiar with Lego, a building block that is popular all over the world. Nicotine X and also adopted a concept very similar to it: First of all, it selected from dozens of ingredients of natural tobacco more than ten major ingredients that scientists believe are closely related to detoxification, taste and aroma. Then by accurately calculating the acid-base ratio balance between these components and nicotine, the range of demand for each component is determined. Finally, it is the most critical, these ingredients are composed of different formula basic modules. And because the organic molecular structure is not planar like Lego bricks, it also has a three-dimensional structure, so the reactions and interactions between them are closely related to the effective overlap of the three-dimensional structure. Therefore, when we set up the basic modules, we also accurately introduced the consideration of the three-dimensional space between the molecules, and these modules will be fine-tuned when they are modulated with different e-liquid flavors.
In general, it is precisely because of the three keywords of selection, precision, and precision that this product can achieve the perfect balance of upper sense and throat sensation. Nothing in Nicotine X is superfluous and useless.
Original technology, amazingly restore the flavor of Chinese flue-cured tobacco
When the nicotine X formula first came out, Myst Labs decided to give priority to using the original spice process to restore the unique flavor of Chinese flue-cured tobacco No. 3 mellow flavor combined with nicotine X to the market, so that Chinese smokers became the first to have close contact with nicotine X user.
When preparing the No. 3 mellow flavor, we first selected the finest quality flue-cured tobacco shreds as raw materials, and after refining the Chinese-based flue-cured tobacco base flavor type, we recruited tobacco flavor testers with an average flavor test experience of more than ten years The team repeatedly tested and compared the top-grade Chinese cigarettes as a reference, fine-tuned according to the fragrance of the three segments of the front, middle and back of the cigarette when it was burning, combined with the atomization mechanism and power of the Myst Labs cigarette rod, to appropriately enhance or reduce the smoke mist The fruit, fragrance and sweetness in each segment, and the optimization of the base e-liquid ratio, such refining and fine-tuning, make our new No. 3 mellow Chinese flue-cured tobacco e-liquid rich in volume, mellow and not greasy.
After having a breakthrough in formula and taste, and considering that what is really delivered to the smokers is actually the end product, Myst Labs has never compromised on technology, design and product quality. Therefore, in order to produce and deliver a superior quality product, we have used an independent overseas R & D, production and quality assurance system, which is the strong backing of the superior quality of Nicotine X 3 alcohol e-liquid.
Superior quality, independent overseas R & D production and quality assurance
We always say that Myst Labs is scientific fog making, the most core research and development. We always insist on taking the end as the beginning, that is, starting from the first step of the design, focusing on the biggest needs of smokers. After several candidate samples screened out through the preliminary selection of the formula, we first conducted a stability test of the formula to ensure that what the end customer bought was what was obtained, and also gave a peace of mind to all the links in the supply chain. Ensure that various environmental factors, temperature factors and humidity factors will not cause irreversible negative effects on products in various links such as transportation and shelfing, and also ensure that our partners are protected.
As mentioned above, Myst Labs has recruited a highly experienced team of perfumers specializing in tobacco products to conduct multiple rounds of group blind testing. Considering that our products are facing the global market, the team of perfumers includes different groups of smokers at home and abroad The final evaluation results are also used for fragrance fine-tuning, and different scoring tools are used to ensure the complete expression of the results. In this debugging process, we have kept a stable standard sample, which is used as a reference standard for subsequent experiments. It can also ensure that each batch of products will have the same fragrance experience in the future.
The final selection of e-liquid formula is finally mass-produced on overseas GMP-qualified production lines and quality inspection lines. Due to the modular formula and production process, it is required that after each stage of the intermediate product is completed, a segmented sample must be sampled for approval by the perfumer. Make sure that the fragrance does not change. Each batch of the final product is approved for the concentration of main ingredients to ensure consistency between batches. Myst Labs products will eventually be submitted to FDA certified third-party agencies for flue gas testing.
Intellectual property protection and R & D prospects
Myst Labs As a startup with technology research and development as its core, we have always insisted on investing in research and development projects as much as possible within limited resources. In order to better serve our current and future partners, the current user community and the entire smoker group, continuous development and protection of our core technology and the establishment of technical barriers have always been the key to the operation of our company.
Nicotine X formula is composed of different core modules, so we adopt the model of trade secret plus global patent application to protect the modules separately. Although we just released the latest R & D results of nicotine X today, our follow-up R & D projects have been carried out at multiple points, and we have applied for a number of patents for new formulas and cartridges around the world, and preliminary experiments related to these new patents and R & D It has also been launched.
Therefore, although our team is very confident in nicotine X and believes that it performs well in all aspects, we believe that in the new tobacco industry as a new field, in many aspects, whether it is the formula or the design of the cartridge and the rod, there is no It is better to have better.
In order to ensure our technological leadership in the industry, we have never stopped brainstorming and pre-experimental research and development projects in all aspects. Nicotine X e-liquid is one of the new products released by Myst Labs today. It is combined with our brand-new cigarette cartridge design and atomization technology to synthesize Myst Labs new product S1. S1 will be the latest anti-addiction option that the smokers have long awaited.
Thank you very much for accompanying me to re-read the whole concept of the development process of nicotine X, and its advantages over the existing products. Thank you for your support and interest in the core technology of nicotine X. Thank you all for your follow-up questions and answers. Everyone is welcome to ask questions if you are curious or have any questions. We will try our best to answer them. Thank you.
3. Myst Labs COO Liu Yu speech
Liu Yu: Good friends of Myst Labs. Good morning, my name is Liu Yu, COO of Myst Labs. This is the theme of my speech today, “A revolution in electronic cigarette replacement smoke.” Today is a very special day. On April 8th, although I ca n’t meet you face to face, but we use this video and online method, I hope to let you know about our 30 to 40 minutes Products, learn about our latest technology. Generally, we don’t use the word “revolution”, but when we use it, it means that our products are really unusual, and there are really revolutionary breakthroughs.
My last press conference was at the Olympic Sports Center in Beijing. I remember very clearly. At that time, I was releasing the first mobile phone black berry released by BlackBerry in the Chinese market. I was very nervous and my hands were sweaty. Both hands are sweat. But I am not nervous, I am very excited, very excited. Dr. Xing and her research team spent nearly 14 months in the United States researching a new generation of nicotine technology, and our team on the Chinese side has developed a new generation of smoking sets. Today everyone is welcome to start this journey with me— -The collision of artificial intelligence AI and nicotine X technology. Let’s call it AIX.
Third generation semiconductor
MEMS single chip differential pressure sensor
In April 2020, we launched the most revolutionary combination, AIX, artificial intelligence and nicotine X. Dr. Xing has introduced nicotine technology in detail, so let me introduce this device equipped with the latest nicotine technology. When it comes to this product, we have to mention the third generation semiconductor technology, which is MEMS. The MEMS chip is much thinner than an iron coin of 1 yuan, and the volume and size of the MEMS chip are smaller than the surface of the little finger. MEMS is used in aerospace and military radar, including cars used in daily life, well-known tire pressure detection, vehicle head-up display and so on. Even the antennas used in future 5G mobile phones are all MEMS. Why do we have to spend so much power and cost to put the third-generation semiconductor in our electronic smoking sets? It is because we see the opportunity to solve the pain points of users. We have the opportunity to make the smoking set more intelligently feedback the user’s perception. We actually need to detect the pressure difference when the user smokes to work. Many electronic cigarette products on the market basically use microphones, which will cause delays and will not produce different amounts of smoke due to changes in your suction.
We have three very critical numbers here, 0.025 mA, which is the standby time of our chip. If we use a battery of 350 mAh, our differential pressure chip can be credited for 14,000 hours, which is 583 days. There is also a 10000PA, our differential pressure sensor chip can detect from 0 to 10000PA, which is 10000PA, why do we have such a wide range of airflow sensor? Because 10000PA is the limit of human beings. Let me give an example. We use a U-shaped pipe to add a water level of 1 meter. The person at the limit can blow this water level up with his mouth. That is equivalent to a strong man pulling a plane. This is the limit of humanity. 100 milliseconds, in fact, we can’t perceive this delay, I did not put 0 delay, because I have done research and development for nearly 20 years, if I write 0 delay, I am not a technical release, I am a line The nature of carrying goods. So 100 milliseconds is the real data we measured. Human perception is imperceptible. Writing 0 means bragging.
Different suction performance, different atomization performance
I just said that traditional e-cigarettes only have 0 and 1. Digital logic switches can be associated with lights on at home. 1 means turn on the light, and 0 means turn off the light. As you can see, the traditional airflow sensor can only provide such a function. Smart chip detection, we also give an example of the lamp, now children’s smart desk lamp, we can slide on the touchpad to make the brightness of the lamp change at any time. Then our differential pressure chip can detect the power output corresponding to the different suction power of the user, bringing completely different smoke output and bringing a completely different smoking experience.
Nicotine X combined with a new flavor
Dr. Xing has talked a lot about nicotine X. What specific e-liquid products will we bring based on nicotine X? Except mellow No.3. Nicotine X I believe is a core technology. We want to combine it with different flavors to bring different feelings and experiences to different types of users. This is our tobacco flavor. Our No. 3 mellow is originally produced in the United States, using the complete Lego formula, while our Chinese classic, part of the core components of Lego are assembled in China. In addition to the tobacco and beverage series, we have caramel ice latte, lemon oolong tea and hazelnut red bean ice. Note that red beans are not green beans. We also have fruit series, we have watermelon ice, blueberries, we have berry lemons, and we also have California mango oranges. In addition to the Arctic ice we already have, we have plans to launch menthol, which will give you a completely different taste from ordinary mint. All e-liquids will use the core nicotine X formula. The nicotine content of all e-liquids is 1.7%, our entire range does not have 2%, and our entire range does not have 3%. Technology, 1.7%, it meets the highest European standards, it has exceeded 3% or even 5% to give traditional smokers a sensation of throat and upper sense.
The perfect combination of engineering and aesthetics
After talking about e-liquid, what kind of equipment is equipped with such nicotine X technology? The perfect combination of engineering and aesthetics. I personally think that pure aesthetics is illusory and beyond our reach. A master once told me that many Western women like oriental women, and we all feel that they are “slow-selling” here. In fact, it ’s not right, because she has n’t been so beautiful. Engineering is even more tedious, with countless formulas and countless calculations. Then we combine it and call it “practical aesthetics” for the time being. The four words of practical aesthetics are my personal patents.
Dr. Xing introduced that we have made significant innovations in cigarette bombs. For the first time, we introduced two key technologies into the design of electronic cigarette cartridges. Double ORING, which is actually a technology widely used in deep waterproof products, such as IP68 mobile phones, The standard representative of IP68 is soaked in 1 meter of water for 3 hours, and you can still talk normally. After the production of the cartridge is completed, due to the difference in the workmanship of some cloth products, there may be air tightness problems on the side and bottom of the cartridge, so we will inject liquid food silicone after the whole assembly, and it is a single head injection In this way, the flow of gasoline inside the e-liquid cup can be completely blocked, and only the heating element is guaranteed, which is a passage between the heating element and the mouthpiece.
Where did our entire design inspiration come from? This was a great engineer Bezier in the 1960s. Later we named it Bezier Curve. He was a French engineer. Later, Bezier curves were widely used in the design of automobiles, and this time we used the two-body Bezier curve to give birth to the world’s first leaning tower design. Our cigarette holder has the perfect fit with your lips. After the quadratic curve, our entire body will be a perfect leaning tower type, and our cigarette holders fit your mouth shape 100%. From P1 and G1, we have a family grid design, and our S1 enriches the details of the grid and enhances the anti-slip properties, allowing you to have a more comfortable grip and fit your skin more closely.
What exactly is our S1? What does it look like? I hope everyone is looking forward to welcoming our new generation of S1, please watch the video.
Are you excited? I first disclose a poster of our design. The main reason why I chose this poster is because of this model, but I prefer this sentence: “I accompany you to get along with yourself, wake up the sunrise with fog, when you are The crowd walked in, there was no taste, the most taste. ” This is a blue and another red I chose. This is our poster. After we are officially listed, you can see our many different design posters in our specialty stores and in major media. These are the 4 colors we released. Compared with our P1, it is closer to the public, and compared with our P1, it is more fashionable. Then I believe that my friends here at Myst Labs are very concerned about its price. Whenever the price is revealed, it is actually the most exciting place for me. This is the packaging of our single cigarette rods. Our cigarette rods are now packed without cigarette bags, because we want to give users more choices to choose your favorite flavors. The retail price of my cigarette rod standard packaging market is RMB 169. In addition to the conventional flavor of No. 3 mellow, other flavors of cigarette cartridges equipped with nicotine X core formula, the retail price of two packs is 49.9 yuan, and the No. 3 mellow is 69.9 yuan. This is the whole content of my speech today, thank you all!
4. Speech by Mou Hongshuai, Vice President of Sales of Myst Labs
Mou Hongshuai: Dear partners, media friends and friends who care about Myst Labs, who are watching the live conference online at the moment, good morning! My name is Mu Hongshuai, Vice President of Sales of Myst Labs. Just now, through the sharing of our COO and President Chen, we know that Myst Labs is a startup company that adheres to its original intention, scientific research, global layout and long-term operation. Through Dr. Xing’s sharing, we learned about the latest nicotine X technology and the world’s first mellow flavored cartridge 3 equipped with nicotine X technology, which brought us industry-leading technology and taste. Through our COO Liu Yu’s sharing, we learned about our new S1 product that combines technology and aesthetics. Next, let me introduce you to Myst Labs’ next marketing plan.
Thank you for your trust and support from distributors and retail partners
First of all, I would like to thank all distributors, retailers and consumers of Myst Labs for their trust and support for Myst Labs. We know that starting from September 2019, the entire e-cigarette industry has entered a cold winter, and our products were officially put into mass production on the market at the end of August 2019. So the growth of Myst Labs is very tortuous. In such a very difficult market environment, you are all distributors, retailers, and all partners. You have chosen Myst Labs, trusting Myst Labs, and supporting Myst Labs, so that we have achieved a little success. In the past year, we have cooperated with 41 distributors nationwide, we have opened 45 brand stores, we have settled in more than 3,000 high-quality chain convenience stores, and we have laid more than 10,000 channel terminals. This is our The little progress made in the past year is inseparable from the trust and support of each of our partners. Thank you all!
Customer first, pragmatic development, long-term win-win
Many people say that the e-cigarette industry is an outlet, but Myst Labs believes that it is not an outlet, but a real marathon business. Therefore, customers have always been first, pragmatic development, and long-term win-win are the principles and concepts we have always upheld. We know that since the fourth quarter of last year, the entire industry has been chaotic with the ban on online sales. Many brands have appeared in the market with chaotic prices, serial goods, and channel disorder. This has seriously damaged the interests of dealer partners. But for Myst Labs, from the beginning to the end, even in our most difficult situation, we have not sold goods to the market at a low price, and have not developed a micro-business. . Do not suppress the goods, all the distributors of Myst Labs cooperation adhere to the principle of benign development, to ensure that our dealers have a benign inventory turnover. No arrears, all Myst Labs partners, each of our policies and activities, as long as you can order and enjoy in advance, all purchases are directly discounted. Anything involving post-event write-offs will be written off for customers immediately to ensure Customers have a benign capital turnover.
President Chen also mentioned just now that the epidemic was rampant in China last year. We also tried our best to raise a number of masks from all over the world and distribute it to employees, dealers, retailers and users. We are still very small. We are not yet capable of making a greater contribution to society, but taking care of our employees, taking care of our customers, and taking care of our consumers is our unshirkable responsibility. With the spread of the epidemic, all of our stores are facing tough operational challenges. We also implemented the epidemic subsidy policy for the stores in the first time, and shared its operating costs with our partners. All we do, we know that it is not enough, but please believe that customer first, pragmatic development, and long-term win-win may be a slogan in other companies, but for Myst Labs, it has been the principle of our history. And philosophy, it will be reflected in each of our market investment, every operation investment and every action detail.
2020 Comprehensive improvement Comprehensive empowerment
Adhering to this concept, in 2020, with the support of benchmarking new technologies and benchmarking new products, we will fully enhance and fully empower. We mainly revolve around four strategies.
First of all, we will fully improve the product power. We know that the basis of business is good products. Only good products can have the future of long-term business. We will do three things well:
1 Comprehensive improvement of product power
First of all, we will improve the product line. As we all know, in the past we only had P1 series and G1 series, so the product line was relatively single, especially our P1 series positioning is high-end, business, relatively speaking, the customer’s age will be a bit older, mainly for matures aged 30 to 40 Smokers. With the launch of the revolutionary S1 product, it perfectly complements the entire product line to meet the needs and preferences of consumers of different ages for the product
Second, we optimized the value chain. First, we redesigned the price system for P1 products to ensure that our products are more competitive, and to ensure that our channel partners have better competitive profit margins. At the same time, we also launched With the ultimate cost-effective S1 product, such a product equipped with MEMS semiconductor single-chip pressure sensor catering to technology is only 169 yuan, which is the ultimate cost-effective product. Two cigarette bombs bring a new taste experience, the retail price is only 49.9, No. 3 mellow 69.9, so the entire S1 product line brings users the ultimate cost performance, and on the basis of such extreme cost performance, we are still a distributor 1. Channel partners provide one of the most competitive channel profit systems.
The third thing, everyone knows that taste has always been Myst Labs ‘housekeeping ability, but in the past our consumers will talk about the taste of Myst Labs’ e-liquid taste, but there are few choices. Today we recognize such a problem, we have enriched the flavor line, and this year we will expand to 12 flavors, and we will develop more flavors that consumers like, especially the world’s first tobacco refined from the original Nicotine X technology’s No. 3 alcohol cigarette bomb, it can be said that it has re-established the benchmark of the industry’s cigarette bomb taste.
2 Build industry-leading member operation capabilities
The second major strategy, we will build industry-leading member operation capabilities. We know that the essence of the e-cigarette business is repurchase and fission. How to operate our users better, so that they have a better retention rate, a higher repurchase rate and consumption frequency, which in turn generates more fission. This is a business whether for brands or distributors. In terms of retailers, it is the core differentiated competitiveness. We recognize the essence of this business, so we will do our best to build the industry’s leading member operation capability this year, and for this we will do three things:
First of all, at the headquarters level of the company, we will build an infrastructure, that is, our DMP data center, through the front-end stores, retail outlets to obtain consumer consumption data, all big data will be centralized after the headquarters will be carried out Data analysis can do a lot of things. We can do retail management to greatly improve the efficiency of the entire retail. We can do precision marketing. Based on the purchase frequency and preferences of different consumers, we will tag him for accurate membership ratings. For multi-level precision marketing, we can do multi-dimensional precision marketing according to regions, consumer preferences, age groups, product tastes, and time periods. How to talk about the specific scene? For example, when we find that some consumers in our store have not repurchased for a long time, we can do membership activation and wake-up. The main thing for consumers with high loyalty and high repurchase rate is fission. Therefore, such precision marketing can maximize the product repurchase rate, increase the frequency of consumption, and enhance the product’s fission ability. The third thing is that it can also be connected with the entire public account, as a member points mall, to further enhance the sense of belonging and loyalty of members.
At the same time, with such a large amount of accurate data, we can optimize the operation and further improve the operation efficiency. When we know the precise consumption data of consumers, we can do precise production and sales coordination to ensure that our stores, company brands, brand parties, our dealers and our retailers have the most reasonable inventory structure and the most Benign inventory turnover. At the same time, based on these data, we can do reverse product development and innovation, so that our products can better meet the needs of consumers and meet the needs of our customers’ business development. At the same time, based on these big data, we can do online accurate brand promotion and offline accurate brand promotion. This is the first thing. We will build an infrastructure, which is the DMP data center.
The second thing, SCRM, we will do SCRM at the headquarters and customer level. What exactly do we do? At the headquarters level, we will focus on doing seven things well. We will do the integration platform, precision marketing, festival promotion, brand promotion, IP peripherals and gift development, unified and standardized high-quality material output, and media delivery. This is the headquarters. Level. At the regional level, we will fully launch the private domain traffic 2.0 solution to all specialty store regional partners. We have deeply customized the operation management tool based on the needs of e-cigarettes and Myst Labs with the best suppliers in the industry to help Our customers do well in the operation of private domain traffic. In the past, we were the most basic and obvious way to operate private domain traffic, that is, through the membership group, through one-to-one question and answer. But this will cause a problem. First, what we output is not necessarily standardized and high quality. Second, different stores and different customers have different operating capabilities. Some people may do 30 points, and some people Do 60 points, some people do 90 points. But today based on the DMP platform of the headquarters, when we have the SCRM system, we can allow all dealers and all specialty stores to achieve a 75-point level to ensure that all content reached by consumers is standard and high quality. Yes, all delivery and all marketing are accurate, so that we can really operate private domain traffic, take care of our customers, and truly liberate the productivity of all dealers and specialty stores, so that they can focus on doing well One-to-one service, focusing on the execution of headquarters activities and strategies.
The third thing is full link marketing. We know that this industry has some sensitivities, so we have no way to do big media and big marketing. But we will in turn put our marketing resources into the entire user operation link, we will do multiple scenarios, in addition to new media, digital media, some vertical websites, etc., we will be based on the specialty store where Shopping malls and commercial districts, based on SCRM, are widely deployed to more accurately acquire customers for channels. We will also do multi-mode drainage. We know that the perfect diary in the past two years has been very hot. One of the best national makeup brands, through its beauty eggs, can be used to transform and drain users. We have borrowed from many leading diversion transformation models such as Perfect Diary, Xicha, etc. We will use our G1 products, peripheral products and gifts we have developed, and will use our applets, mini-games, sweepstakes, etc. Means to divert our retailers and increase conversion rates. At the same time, based on DMP and SCRM systems, accurate member operations are performed, which truly enhances repurchase and conversion and fission. For all loyal users, a lot of resources will be invested in the old and new fission, DMP data center, two-level SCRM private domain operation system and full link marketing. By doing these three things well, you can build a leading industry Membership operation model.
3 The most competitive market investment support
The third strategy is that we will continue to do the most competitive market investment support. We know that the e-cigarette industry is still in the early stages of development, especially in the Chinese market. From the consumer side, the consumer penetration rate is not high. From the channel side, the channel still needs to be developed and expanded, so a strong and effective investment from the brand side is essential. We know this very well, so we will continue to provide you with the most competitive market support investment as always.
First of all, in 2020, we will build 300 high-quality specialty stores nationwide. We provide the most intimate, most powerful and comprehensive support for specialty stores. We will provide a full decoration subsidy, will provide free all exhibition material counters, we will provide the most advanced operation management system, and will put the flagship store 2.0 image, we asked Uber founder Yu Yong designer to help us design. At the same time, we will provide full link marketing support, including support for promotional activities. In other words, as long as you believe in Myst Labs and choose Myst Labs, we can give you everything you need. Even if you need to find a location to open a store, we can help you get it.
In 2020, it will enter 10,000 high-quality convenience store systems. We will provide support for entry fees, display expenses, promotion activities, display materials, and even marketing support and entry negotiation support. So as long as you have passenger resources, as long as you choose Myst Labs, we will help you get everything done.
At the same time, we will expand 2,000 e-cigarette collection stores this year. We know that collection stores control the earliest e-cigarette user groups. We will provide the most competitive profit space and price system for this channel. We will provide the most Support for flexible cooperation terms. At the same time, there will be support for promotional activities, a full set of exhibition materials, and marketing support.
Fourth, we will do lean distribution in multiple scenarios. What is multi-scene lean distribution? What we consider is under what consumption scenarios consumers will choose e-cigarette products, will have the opportunity to experience e-cigarette products, and will have a higher conversion. What is lean distribution? That is to say, we will not do a lot of invalid market laying work in order to expand our network like many brands. We will choose real productive and dynamic sales scenarios and sales channels for comprehensive laying, and this work Will be led by the sales team of Myst Labs, we will also provide a full set of support. This includes, for example, 3C digital stores, boutique supermarkets, convenience stores and so on. So whether it is a specialty store or 10,000 convenience stores, or 2,000 e-cigarette collection stores, or lean distribution in more scenarios, in 2020, we will provide the most powerful support on the channel side.
Tell everyone that we have prepared a channel budget of 70 million to ensure that our investment is the most competitive. And all our expansion, all channels, all give priority to dealer supply, and truly practice our customer first, pragmatic development, and long-term win-win concept.
4 Build Myst Labs Iron Army
The last strategy is to build the Iron Army of Myst Labs. We know that no matter how good the product, how good the technology is, how big and powerful the market support cannot be without execution, the rest are all 0, only the execution is the previous 1. So we have to build a sales team with the most execution. At the beginning of the establishment of Alibaba 20 years ago, there was no Internet concept in China at that time, and ordinary consumers did not have any knowledge. At that time, Alibaba faced the challenge of survival. It is Alibaba’s Chinese supplier direct sales team who believes and dies, and finally achieves a breakthrough, which in turn has made the great Alibaba Empire today. Alibaba’s sales iron army is our benchmark. Today we solemnly shout this slogan. We will learn from the Alibaba CCP iron army and build the sales iron army of Myst Labs to create a truly simple, pure, trusting, persistent and dead sales team. When such a team walks into your office, it is not about how to place an order and remittance, but about how to plan the market and develop business. Such a team will go to the front of the market in more time and go to the office To be a fan, to open up new frontiers, to achieve customers, to achieve Myst Labs, to deliver our products to a wider range of consumers, and then to achieve their own. So I think the most important strategy is also the most important. We will do our best to build the sales force of Myst Labs.
This is my introduction. First of all, we will always adhere to the principles and principles of perseverance, customer first, pragmatic development and long-term win-win. On this basis, we will do four major strategies. First, we will comprehensively improve product power. We have a breakthrough in nicotine X e-liquid technology. We have S1 products that are equipped with MEMS soft technology and aesthetics to cater to technology. We have more abundant Taste selection, comprehensive product enhancement. Second, we will build an industry-leading member operation system, based on DMP data center, based on two-level operation SCRM system, and based on full-link marketing, to truly empower customers and create the industry’s most advanced private domain traffic operation. Third, we will continue to protect the budget of 70 million channels, ensure the most competitive market investment, and work with customers to jointly develop the market and harvest together. In the end, we will build Myst Labs to sell the iron army to match the Ali army in the same year. I believe that doing these four things well will eventually lead Myst Labs and everyone to achieve a truly long-term industry leading brand. The above is the content of my report. The technology is breaking dawn. Myst Labs Lichun. Our link for the on-site report at the press conference ends here. Next, all media friends are invited to move to the interview live room of the Tencent conference. People and friends who care about Myst Labs, you can go offline. Thank you again for your continuous trust and support for Myst Labs. Thank you. I wish you all good health, happiness and safety.
Moderator: Dear friends of the media, I saw that many friends have come in and told everyone that there is good news. Dr. Xing is also in the group. Wait a minute, you can ask Dr. Xing hard. Today’s interview officially started. Everyone is an old friend. If you are convenient, please ask the teachers to put on headphones. Thank you for your support. I am Wang Fang, Marketing Director of Myst Labs. , First of all, Chen Min, CEO of Myst Labs, to say hello to everyone.
Chen Min: Hello everyone.
Moderator: The second one is COO Liu Yu of Myst Labs, that is Liu Fat, who has just live broadcasted the goods.
Liu Yu: Hello everyone, this is Liu Fat.
Moderator: There is good news that the chief scientist Dr. Xing is in Silicon Valley in the United States, also online, Dr. Xing greets everyone.
Xing Chenyue: Hello, everyone, and media teachers.
Moderator: In order to keep the interview environment quiet, we have set a mute for all the staff. Which teacher wants to ask a question, please click Unmute at the bottom left of the square. We will see in the background that you can ask questions after unmute. Before asking a question, please ask each teacher to report to your door, otherwise I will read your WeChat nickname directly, and start asking questions below. If you have any questions, please click on the bottom left of the screen. Teacher Chen Zhong in Landong can start asking questions.
Chen Zhong: The three teachers are good. I listened to them. They are still very professional. I have a few questions and ask the three teachers separately. The first question is to ask Mr. Dainel, what do you think of the current electronic cigarette market? Is Myst Labs ammunition enough? Or what kind of ammunition was prepared?
Chen Min: Actually, our report just mentioned that the current situation may be more focused on the pressure of some public opinion environment at the end of last year, and the pressure of epidemic situation that we are currently facing. Let ’s actually look at it now. First of all, in terms of preparations, one is about our products and technologies. This is why today we are launching a new product of nicotine X technology and S1. At this point in time, because we feel that this point in time It may be the key point in the recovery of the entire market. Because the current national epidemic situation has gradually stabilized, what we see is that e-cigarettes are mainly sold through offline channels. The offline channels have indeed been greatly impacted in the past two and a half months, but we have started from the end of March It is seen that the gradual offline sales outlets have been resumed.
Another one, from the perspective of the supply chain, in fact, the resumption of factories is now a thing that all local governments are vigorously promoting, so we see that the resumption of work has gradually caught up with the progress of the supply chain, so we are at this time. With the release of new products and technologies, we believe that we can quickly seize this opportunity for market recovery. This is one aspect.
On the other hand, from the investment of the entire channel and the market investment mentioned by Aaron just now, this piece is sure that we also need to make sufficient preparations to cooperate with the launch of new products, and implement some of the work to be done in the channel just mentioned. Including our data center, including the ability of some members of the entire channel terminal to operate, we are all ready to build these things, and can quickly put our products in the next two months Shop on the market. So I think in terms of preparation work, of course, many things are what we have to do now, and we must do it in a hurry. So in terms of personnel reserves, in fact, we did not do any layoffs during this epidemic, because we feel that the opportunity for market recovery will come soon, and we even expanded the staff size so that at this time Ability to have sufficient personnel reserves to do what we want to do in the shortest time.
Chen Zhong: There is another question. Have you done some financing in terms of funds? Because I just heard that Mr. Mou said that there will be a channel budget of about 70 million, which is still a relatively large order of magnitude. Does it mean that Myst Labs has done some new actions in financing? The second is whether this thing of X will become a barrier to electronic cigarette competition? Will PMTA apply? Since the Ph.D. is in the United States, it may be more sensitive to the local market. If the PMTA application may also represent a symbol of strength. The last question is the S1 released today, because I talked to you before, it is a relatively cold design style, today I saw pink, and it changed. What kind of change does this represent?
Chen Min: Let me answer the question you mentioned just now is financing. In fact, Myst Labs has experienced several rounds of financing from its establishment to the present, but we basically do n’t talk about financing. Because we do n’t feel the need to use financing to endorse our business, we still focus on the essence of the business. What I can say may be that we did raise funds before the Spring Festival. The rhythm of this financing is still based on the planning of our business and the progress of the entire marketing, but I do n’t think we need to be here for the specific financing scale. said.
Host: Please answer Dr. Xing’s second question, you need to ask another question.
Chen Zhong: Will X technology become an important barrier for the first electronic cigarette competition? The other is whether Myst Labs will test the product to a certain stage, because some friends may not have technical research and development capabilities, will they do some open authorization? Thank you.
Chenyue Xing: Teacher Chen, Nicotine X. From a formulation point of view, we protect it through several different aspects, including patents and trade secrets. This barrier we believe is not only a right for a startup based on technology and R & D. Our own company’s intellectual property rights and operations also include the operations of all partners and distributors. Having this technical barrier is a strong backing for ourselves and all our partners. Second, you mentioned earlier about the US PMTA. As a company with a branch in Silicon Valley, we have been planning. I believe that you have been in this industry for many years and are familiar with PMTA. It itself It is a very long-term preparation process. So far, except for the heating and non-combustion products of droplets, although two companies have submitted applications for e-cigarettes, their specific audit process and results have not yet been taken by any company. Been there. Of course, unfortunately now because of the US epidemic, many activities that are not required are also in a state of stagnation. I want to give you the boldness that we do have this plan, and we will do a lot of preparations in the early stage, but there is no way to be more specific. timeline.
Moderator: The third problem of Mr. Chen is that the previous products are indifferent in style. The S1 product released this time has a red color, which involves product positioning. COO Liu Yu will tell you about it .
Liu Yu: Actually, red cannot be said to be Sao, we are still rich in SMART, and of course SEXY, you can use sexiness, sexiness may be more representative than Sao. The four colors launched today, Mr. Chen, you can also see that our four colors are younger, and our P1 is actually quite right. It is business-oriented and stable, but Myst Labs is a category. We can have different product lines. In fact, we also want to take this opportunity today. In fact, we will launch the A series, a cheaper and more integrated series. So after the S series, we will have the A series, and the one-time G series, there will be four main lines paved to different markets.
Moderator: Okay, leave the opportunity to ask questions to other teachers. There is a Koi Ru below. I will unmute you now and I can start asking questions.
Koi Ru: Hello, teachers, I am Yu Huiru who has been watching. I will start now. My problem is basically related to this epidemic. In the live broadcast just now, President Chen said that this epidemic has brought a lot of impact to companies in the electronic cigarette industry. Impact on the company? I remember interviewing Mr. Chen before. At that time, I remember that our company ’s sales model is mainly offline channels. The offline channels include the fast-moving consumer model and the specialty store model. From these two models, this impact is specific. Where are they? Second, last year we said that the plan for 2020 is to open a store with an offline target of 300. In this year, how will this plan change or adjust? Third, regarding some of the impacts or impacts you may have mentioned just now, our company will have other measures? On these three issues.
Chen Min: At this point in time, everyone may indeed be more concerned about the topic of the epidemic. I think no one can really be alone in this environment. We can all see the impact of the epidemic most intuitively. For example, I asked everyone a question. After the New Year, did you go to the mall to eat, have you been to the mall to play, have you ever been to the mall to watch a movie. Because the offline channels of e-cigarettes are not the main ones, but all of our channels, all our sales are offline. In this way, these retail terminals are our final product exports, but in the past two months or even two and a half months, the retail terminals have basically been stagnant. I believe that no one in the national retail industry has said that they are not affected.
But why did I just say that at this time we think it is time to inject new momentum and confidence into the market? It is also after we see that the epidemic situation has stabilized, first of all, from the government level, we have encouraged full-scale resumption of work, not only industrial manufacturing and production enterprises, but also all retail industries are actually encouraged to resume work. At this time, there may be a retaliatory increase in consumer demand and social demand accumulated in the past two months. We can also see that the passenger flow in the mall has gradually recovered since this month. So it will definitely be affected, especially in the past two months, especially during the Spring Festival. But then we think we should seize the opportunity that this market may have a retaliatory growth.
What have we done to deal with the impact of the epidemic? During the epidemic period, the company has already been equivalent to half-recovery for a long time. All employees are working online. During this period, we have more summed up the experience of the past year, and some of our future plans, including our The budget is reviewed and adjusted again. At the same time, I also said that instead, the staffing and scale have been increased to ensure sufficient staff and team for the next few actions. There is another one mentioned earlier, the preparation of funds, and our planning for the next product listing, these are actually the work we have already started during the epidemic. In addition, we have also experienced the impact of retail terminals during the epidemic, and the impact of our partners, channels, and customers. Therefore, we have also proposed a rental sharing plan for franchised stores, and we hope to share it with you. Difficulties, ushered in the recovery and spring of the entire industry.
I think at this point in time, if we just look at ourselves, there may be some limitations, so we hope that more from the entire industry and the entire cooperation ecosystem, what can be done can give us What kind of help does the customer have, when the market recovers, what new products and new user operation systems can we quickly import, can help him recover his business faster. I think these are the things we are doing everyday.
Koi Ru: Last year, we should have plans by the end of the year, this year’s 300 stores.
Chen Min: store opening plan. In fact, this number has also been included in Mu Hongshuai ’s report. Our goal has not been changed. We are just saying that we may need to speed up the rhythm in the next step. In our original plan, some compression may be necessary Because the progress of the store opening in the past two months has definitely been affected, so we have not made any adjustments to this plan yet, or in accordance with this goal.
Koi Ru: Can I ask a question? For example, the impact you just mentioned is definitely inevitable. Can you disclose some figures? For example, sales in the past two months?
Chen Min: The sales in the past two months may be more dependent on the terminal sales. I think at least 80% has dropped. This terminal sales in two months we hope to make up as much as possible in the next period, and let the retail Terminal and channel customers continue to do business.
Moderator: The teacher in charge has finished asking questions. Are there any other media friends who want to ask questions? Next, please ask Lin from the interface to ask questions.
Lin Teng: A few bosses are good. When we see the executives of the company, we are all called bosses. I really want to know how Myst Labs survived the epidemic and the e-cigarette industry is not a very good market cycle. Because we see that including Luo Yonghao and Zhu Xiaomu, we all know that he is a live broadcast e-commerce, and many rumors say that their e-cigarette may have been stagnant. Our Myst Labs is still releasing new products, and it is also planning to expand on a larger scale. I want to know whether Myst Labs survived at this stage because of good cash flow control or customer operation? Is it because of something else? Because we saw that last year, including online advertising, could not do so much negative information, can you predict that the e-cigarette industry can be “formally positive” like the blockchain industry of the year? Recognized by the whole country or made in the form of taking pictures? One is the reason why Myst Labs survived, and the second is whether it is possible to get right.
Chen Min: The first question is actually mentioned throughout our report. How do we survive? I think that first of all, we have been relatively stable and respectful of market laws in the past year, because we do n’t think e-cigarettes are an outlet, we still think it is a long-term industry trend, and it is a long-term career for us. In these market operations and actions we have done, it may be relatively more robust. First, it is more rhythmic and stepwise to develop the market. The other one lays a good foundation for our products and customers. So in this respect, on the one hand, from the enterprise operation, the ability to avoid risks is stronger, on the other hand, from the client side, your channels and customers may be more confident in you, and they will also I hope to go down with you for a long time, I think this is very important. Of course, I also said in the report that we are actually a young company. We are also experiencing the baptism of this market, but relatively speaking, we are going to be stable, not necessarily so fast. But I think we may have a better chance to go further. This is our approach and some foundations laid in the past year, which can help us to release new products at this time and have the ability to cooperate with all of us. Partners continue to walk in this industry together, I think this is some of my ideas.
The second question is whether it will be like blockchain or other industries. This involves some possible policy reasons. In fact, we did not spend too much energy on this. In fact, this is still a good thing for our company. We take good care of customers and users under the current legal compliance and do our products well. I think this has already spent a lot of energy on us. These matters in terms of policy are beyond our control, and we are not in a position to make too many comments. But after going from online to offline, you just mentioned that it is a negative thing to the e-cigarette industry. We do n’t think so, because in fact, after all the offline, we feel that this industry is actually more regulated. . This industry is going offline, and there are basically just a few businessmen we encounter, but if you used to sell hundreds or thousands of various brands online, we feel that the industry is concentrated. The degree becomes higher and the entire industry is more regulated, which may actually be more conducive to the long-term development of the industry.
Moderator: Does any of the teachers ask questions below? Mr. Lu from First Financial.
First Finance and Economics Lu Qian: Hello, everyone. I have two questions to ask. The first question wants to ask me in detail about specific figures. For example, in the first 4 months of this year, we originally expected the expected sales. But what is the actual amount now affected by the epidemic? The second question is about the perspective of the entire industry. I would like to ask whether the policy or the epidemic situation has changed. What has happened to the changes in the entire industry and your perception of the industry? For example, maybe the industry was in a fierce competition last year. Now do you feel that the participants of the original bubble competition are dying, and now the main competition is in the head. If so, what are the main reasons? For example, are we reducing costs, or are we financing, advance cash reserves, etc.? Thank you for these two questions.
Chen Min: The first question is about sales figures. Because we still have some agreements with investors, it may be inconvenient to publish too specific figures. But in terms of proportion, the shipment of retail terminals I just mentioned basically dropped by 80%. But we are generally fortunate that at this point in time, it is just in time for the Chinese New Year. In terms of traditional Chinese retail channels, China ’s Lunar New Year may have been shipped from manufacturers and brands at the end of December and early January. However, during the Spring Festival and even a month after the Spring Festival, everyone is in a state of vacation and has not fully entered the state of resumption of work. This time for our brand side, this is also our off-season. So the impact on us is definitely there, but in the past three months, I think the impact may not be as great as the terminal is affected, down 80%. But then our key work must be to use new products and market investment as soon as possible to help the channel digest the Spring Festival inventory as soon as possible. I think these are all things that every industry and every merchant is doing now. We believe this is a short-term thing, and believe that the recovery after the epidemic will restore the entire business to a healthy state.
The second problem is the entire offline competitive situation. As I mentioned just now, because each company ’s capabilities may be different, some companies may be better at online operations and online operations, so these companies can continue to do when there is no online sales ban. But after going offline, the required capabilities are completely different, so some companies may naturally withdraw from this industry. Coupled with the impact of the epidemic, some companies may indeed encounter very great difficulties. But I also said just now, because during the epidemic we were doing more things to cultivate internal strength, as well as better discussions on our future planned actions. After the whole market recovers, I think we will still follow this Plan to go down. The competitive head brands you mentioned earlier, I think this is also a feature of the offline channel. In the industries of FMCG and retail, we will actually see that each industry has several relative head brands. , Everyone is doing at the same time. However, the particularity of our industry is that it is still a fledgling industry in China, so the entire market growth space is very large. Under such circumstances, although we have a lot of friends and businessmen working together, but I think the new market share is actually enough to generate several large industry brands in China.
Lu Qian: Can you elaborate on specific capital control? For example, is there a reserve in cost reduction or capital reserves?
Chen Min: Just now, I just raised a round of funds before the Spring Festival. In terms of business operations, in fact, not only during the epidemic, but also from the establishment of the company to the present, we have always used a relatively stable operation method, the control of cash flow will be very important, and the quality of funds and the quality of operations will always be seen Relatively heavy, it is possible that our relative ability to withstand sudden market shocks or epidemic conditions will be slightly stronger.
Lv Qian: The last one you would like to ask, you also mentioned that the future space of this industry is very large. Assuming that in the future, policies may be across the board, how will we respond?
Chen Min: I think this assumption is meaningless, because in fact it is difficult to talk about any industry. According to this assumption, I may not enter the industry from the first day. Therefore, practitioners in this industry are doing in a legally compliant manner, and making our products meet the needs of consumers, I think it is worth our company to go down in this industry. We just talked more about the domestic market just now, but we actually started to lay out the international market since we participated in the British Electronic Cigarette Exhibition in November last year. We have also set up regional business centers in London and Singapore to radiate the local market. In the UK, we have signed cooperation agreements with the three most important and largest channel providers, and we will enter the UK market. Therefore, overseas expansion will also be a focus of this year.
Moderator: There is already the next media to ask questions. Mr. He, the e-cigarette home, will now unmute you.
He Wen: Hello, everyone. I am He Wen of the Electronic Cigarette Home. First of all, I congratulate Myst Labs on the successful completion of the press conference. My question is about nicotine X technology. I want to ask Dr. Xing, because we just talked in the group that Mr. Chen knows all the words, but I do n’t even know what they are talking about. Can the doctor introduce the nicotine X technology in one or a few simple words, which allows consumers, as a new term, to understand the meaning of a sentence or two when he sees it? Sentence words?
Xing Chenyue: Thank you, Teacher He, nicotine X is indeed a little more complicated than the nicotine salt I said before. Understand, Nicotine X can still maintain the original superior taste of nicotine salt e-liquid, and we can use this technology to reduce the content of nicotine, but when we reduce the content, we can also provide a taste and flavor closer to real smoke . It may have been mentioned in the previous press conference that Nicotine X is a Lego-style formula. We take this analogy and hope to explain the characteristics of this technology to users and the media more directly. If users who previously understood nicotine salt thought it was in nicotine e-liquid, because nicotine is a base, adding a certain acid, the acid-base reaction becomes nicotine salt. Nicotine X is not such a simple formula of acid and base equaling salt. Among them, we applied more formula ingredients in tobacco, and calculated and combined those formula parts that contributed to the overall taste, top taste and taste of real smoke. The reference is to consider the form similar to Lego, The molecules are all three-dimensional, so considering how to match their own structure, it can best and most effectively combine more than two formulas, and accurately adjust the proportion of each formula. In this case, it not only calculates and considers the acid-base balance, but also considers the intermolecular forces. Because it is more accurate, it can reduce each formula ingredient to one compared to the original. With just the right amount of content, it can also provide a sufficient sense of overhead and throat.
Second, there are some ingredients in Nicotine X which are also refined several key elements of the original flavors in natural tobacco. They have been specially processed and processed, and they are directly compared with Chinese flue-cured tobacco blindly, so it is another item. The breakthrough is to be able to more perfectly restore the aroma experience of Chinese flue-cured tobacco.
Moderator: As a practitioner, I would like to ask if nicotine X will be released like nicotine salt, and then copied by other brands?
Chenyue Xing: We also considered before, from my experience at Juul at that time, including the development of the entire global e-cigarette industry based on the breakthrough of nicotine salt, because nicotine X itself is a good technical barrier for us, But at the same time, it is also a relatively complex formula. There are several large Lego-style modules that make up the final e-liquid formula. Therefore, from the perspective of establishing technical barriers and protecting us and our partners, we will adopt a two-pronged approach of trade secrets and patent protection, separate the modules in Nicotine X, and use different intellectual property protection methods to protect our technical barriers. .
Moderator: I see Teacher Zhang has a problem, I will unmute you now.
Zhang Shengpo: Thank you, this is Zhang Shengpo, a reporter from the Beijing News. Two questions would like to consult with President Chen. The first is that in December 2019, there was already a voice saying that the e-cigarette industry will introduce the national standard, but so far it has not come out. What reasons do you think may delay the introduction of the e-cigarette national standard ? In the process of formulating the national standard, how do you think the regulator should treat the opinions of enterprises in the industry, as the enterprise, do you think the voice transmission channel in the industry is smooth? Or what are the problems? The latter question will be discussed later, thank you Mr. Chen.
Chen Min: In fact, everyone will ask about the national standard. I have the same question as you, so I would also like to say that your media should be more informed and can you tell us about it. I really have no way to speculate or comment on this matter, because all of us are waiting for the news, just like the epidemic. We feel that we should still listen to the voice of the authority, and we do n’t have to listen to too much gossip. Another one is that you mentioned the issue of voice in the industry. We are now the governing unit of the China Electronic Industry Association Electronic Cigarette Chamber of Commerce. Our industry association is still very active in communicating with enterprises and communicating with government departments. Therefore, all our companies will actually express our opinions fully in the association, and the industry associations have become the channels for conveying opinions. I think that the association ’s work is actually very good. They will all actively make such vocal actions on behalf of the enterprise. Or the channel of information communication, I think there is no problem.
Zhang Shengpo: I understand that as an industry association, I must stand with the enterprise, and I will try my best to communicate with the enterprise and summarize your opinions. But I heard the leaders of the industry association mentioned that the association is willing to become a communication channel and intermediary, but it seems that it is not easy to pass the voice.
Chen Min: I have never heard such information, because in fact, in December, the association also has a relatively large annual conference event, and also invited many experts in this industry and representatives of various enterprises to participate, as well as some news media. Report. So I think this kind of information is quite smooth.
Zhang Shengpo: What are your expectations for the introduction of the national standard? What are the predictions about its impact on the industry in the future?
Chen Min: Can’t say expectations, we must be in accordance with all standards. Once new standards are introduced, we must make our products and markets according to the new standards. I don’t think there are any authoritative departments or professional departments. For any information on this standard, we are now sure to do so in accordance with the current compliance and legal standards. Of course, if there is a new standard, we must do it according to the new standard.
Zhang Shengpo: For example, you may refer to the EU industry standards now. Do you think that within the existing technical capabilities and technical scope, if the national standard is stricter than those existing standards that everyone abides and refers to, is it realistic for the industry?
Chen Min: First of all, you refer to the standards of the European Union, but now there is no standard itself, it is difficult to compare with the standards of the European Union. The EU is often mentioned. It may be more that it has a long history of supervising the e-cigarette industry. Some of its standards are more clear, and the entire regulatory system is more clear. You may think so in this regard. But in fact, each country has its own definition of this standard, and there is no global unified standard. So I think it’s hard for you to say which one is the strictest or which is more reasonable. It may still be necessary to set standards according to each country’s own situation.
Moderator: Is there any other media reporter who has questions? Please click the request on the screen to unmute. Teacher Li of Tencent Deep Web.
Li Yue: Hello, I have a question for Dr. Xing. How long did it take to develop a new generation of Nicotine X technology?
Xing Chenyue: Hello, we have conducted a long time of knowledge accumulation and research before the formal development of Nicotine X. Because our main goal has always been to restore the taste of real cigarettes to smokers as much as possible, because our customers are always smokers, not users of pure new tobacco products. Therefore, a lot of pre-accumulation has been done during the preparation of the company before, but the formal entry into the formal research and development project should be more than a year from the establishment of the company to the present. It is difficult to give a very clear time. However, we believe that any science and technology innovation is a process of accumulation and coherence, just like we just released Nicotine X today, but there have been many research and development projects on the formula that have started.
Li Yue: What do we expect from the new technology? Is there a plan for how to promote such a new technology to the market? Is there a plan?
Xing Chenyue: Is this the more appropriate answer for President Chen?
Chen Min: I think any technology still needs to be tested by the market in the end, so why do we say not only to launch a new nicotine technology, but also to launch a new product equipped with this technology, so as to truly reach users and let users Feel the advantages of this technology. So I think that the next step is definitely to follow the rhythm of the whole new product launch, we will apply the technology to the full range of products, let more users contact and enjoy the results of this technological progress, and produce a whole industry and market. Greater motivation. So I think what we do next is actually to better convey our entire new product promotion and some technical concepts to users. This is what we have to do.
Moderator: Next, Mr. Wang and Mr. Mu Mu, Chinese entrepreneurs, are preparing questions. Mr. Wang, you can ask questions.
Wang Leisheng: Yes, you just mentioned that from March 5 last year to now, it is exactly the same as a year. There are thousands of previous reshuffles and several head companies have competed. Can you share with us? What are the changes in the market shuffling process and which players have been shuffled? What are the characteristics of the players left now? The second question is, when such a product is launched at the beginning of this year, what are your expectations for this year’s sales and market?
Chen Min: If you look back on the past year, in fact, a media teacher just mentioned that maybe the whole industry tends to be more rational and the industry is more regulated. In fact, each industry will experience this stage when it develops. Perhaps many companies at that time felt that This is an industry that is gaining ground and making quick money. But after entering, there may not be enough product support and technical capabilities and market operation capabilities, and it will inevitably be eliminated by the market. I think this is a normal thing. Not only in the e-cigarette industry, we will see similar situations in other industries. Specifically, which companies have withdrawn from the industry now, I feel more like an industry squeezing bubbles, may still be relatively weak for some companies, or the time or motivation of entry is not too in line with the industry market development laws, May withdraw from this industry. It does not necessarily mean that the industry is going to eliminate some companies, and some companies may voluntarily quit, because each company may have its own strategic choices.
The second question you said is the outlook for our entire business this year. In the introduction of Mou Hongshuai just now, we have talked about the general market and channel expansion plan. We have just said that, for example, the store expansion plan, basically there are still no major adjustments. We still think that we have the opportunity to achieve such a goal. We are also working hard for this goal. It may be affected by the epidemic before this year. The recovery and recovery of the entire market will take some time. Certainly in this case, there is no way to plan according to the original normal situation of the entire market, but each startup will actually touch at different times. In this and other difficulties, there is no one-size-fits-all plan, and you always have to maintain a very flexible attitude to face different risks. Of course, it is more important to seize different opportunities. So I think that the whole market is dynamic. When people are relatively pessimistic, we are not so pessimistic. We maintain a relatively optimistic attitude towards the entire industry, because we feel that this market has just started, and the market space is very large. It is not a mature industry or a relatively saturated industry. Maybe everyone has a small growth, so everyone can only squeeze each other. But in a relatively fast-growing market, I think there are still many opportunities.
Moderator: Due to time constraints, the last two problems, Mr. Mumu has been waiting for a long time.
Mumu: Hello, everyone. I am Li Huilin, a reporter for the 21st Century Business Review. I have a question. I remember when you participated in the Myst Labs press conference last year, you mentioned that you made the product look very commercial. Very few fruit flavors are designed to reduce the appeal to minors. The new products are younger in appearance, taste, and price, and more attractive to minors. Does this mean that you have done enough measures to prevent minors from buying?
Moderator: The first thing to emphasize is that whether it ’s the nicotine X or the latest taste No. 3 mellow released by Myst Labs today is based on the infinitely close taste that smokers really like, so our No. 3 mellow taste is imitated Of Chinese flue-cured tobacco, you can see that we are from the real needs of smokers, not what you just said. COO Liu, please answer in detail below.
Liu Yu: We have made very comprehensive measures to release this product. First, all sales channels are now mainly in specialty stores. We need to verify the age of consumers when buying products in specialty stores. Second, the new technology of nicotine X is actually a technology that evolves nicotine salt to be closer to the absorption of real smoke. As Dr. Xing introduced, we actually added a lot of tobacco original fragrance technology. Third, we have added a pressure differential MEMS semiconductor chip to make the user of the product feel closer to smoking real smoke, rather than treating it as a toy. We can think of our idea as a tool to make the new nicotine X perfectly combined. You can see all the flavors we released this year. We strictly control the content of nicotine to 1.7%. In fact, this is the lowest content product you can see on the market. So whether we are from the evolution of technology, the sales scene and the contact of Nicotine X with consumers, we are mainly based on mature smokers and adults. I hope my answer will satisfy you.
Moderator: The 4 colors of our new S1 product launched today, I will send it to you later, and they are all relatively mature and low-key colors. They are not the colors that young people will like. Sexually cold wind. This is the end of today ’s interview. Thank you for your support. If you have any additional questions, please contact our staff. After the meeting, we will give you shorthand text and pictures, thank you.