
On the evening of August 28, Hong Kong Stock Exchange-listed company China Botton issued an announcement stating that it achieved a revenue of 805 million yuan for the six months ending on June 30, 2023, a year-on-year decrease of 23.7%. The net profit attributable to shareholders of the company was 65.355 million yuan, a year-on-year decrease of 32.1%. The revenue from e-cigarette products was approximately 326 million yuan, a year-on-year decrease of 41.2%.
According to the announcement, the revenue from the sale of e-cigarettes (including disposable e-cigarettes and rechargeable e-cigarettes) and their accessories is approximately RMB 326,500,000, a decrease of 41.2% compared to RMB 555,700,000 in the same period last year. This is mainly due to the new policies and tax rates implemented for different e-cigarette products in China. Additionally, the group has allocated a significant amount of manpower and resources to fully comply with the Chinese government's regulations, which has increased costs and expenses.
During the reporting period, the e-cigarette division underwent a corporate restructuring, resulting in the sale of several companies, including two Korean subsidiaries, MonsCo., Ltd. and Boton Medical Co., Ltd. Additionally, the group will enter into several related agreements pertaining to these sales, which will make the group the exclusive manufacturer and supplier of several electronic cigarette products. The sale generated significant revenue and improved the group's liquidity. The group will continue to allocate sufficient resources to strengthen this division and restore its growth momentum.
Announcement mentioned that as of June 30, 2023, over the past six months, a series of licenses related to e-liquid, in-house brand e-cigarettes production (including OEM for customer e-cigarettes), and e-cigarette brand ownership business have been obtained from the National Tobacco Monopoly Bureau. As of June 30, 2023, the Group has fully complied with the revised Regulations on the Implementation of the Tobacco Monopoly Law of the People's Republic of China and will allocate sufficient resources to develop the e-cigarette product division next year.
The announcement mentioned that China's new policies and tax rates on e-cigarette products have also raised direct and indirect costs and expenses. As a result, the net profit of the group has significantly declined during the reporting period. The net profit margin for the reporting period decreased to approximately 10.3% (2022: 11.9%).
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.










