On August 29th, Jinlong Electromechanical released its 2023 semi-annual report, stating that the company achieved a revenue of 1.643 billion yuan in the first half of the year, a year-on-year increase of 4.32%. The net profit attributable to shareholders reached 22.9052 million yuan, with a year-on-year increase of 73.74%.
Xingke Electronics, a wholly-owned subsidiary, received the Tobacco Monopoly Administration's (TMA) e-cigarette processing enterprise license on August 15, 2023. The license has been extended and is now valid until July 31, 2025.
According to the report, the current penetration rate of the e-cigarette industry remains relatively low, indicating considerable room for growth. Consequently, this industry continues to attract companies, prompting them to expand and accelerate their entry into the market.
Xingke Electronics primarily targets the overseas market with its e-cigarette products. Since the implementation of domestic e-cigarette regulations last year, some domestic e-cigarette manufacturers and brand companies have shifted their focus towards overseas customers or intensified efforts to develop and supply products to overseas clients. This has led to an increasing level of competition among e-cigarette export manufacturers, resulting in further compression of profit margins. In the future, the industry is expected to face risks such as intensified competition, overcapacity, and further reduction in profit margins.
Jinlong Machinery and Electronics Co. announced that it will intensify its efforts to develop the market, actively explore new customers, strive to enter the supply chain of other well-known e-cigarette brands, expand its customer base, increase the proportion of business revenue from other customers, reduce customer concentration, and enhance the company's ability to withstand risks in the business.
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