[Interview] Zuo Quan talks about the development of ALD Group: Taking compliance as the cornerstone, sticking to the innovative development strategy

MarketInnovation
Jun.23.2022
[Interview] Zuo Quan talks about the development of ALD Group: Taking compliance as the cornerstone, sticking to the innovative development strategy
2FIRSTS was able to interview Zuo Quan and he described the company's initial start: "Before the company was founded, it had already accumulated a lot of experience in the field of electronic cigarettes, and also some customer resources at home and abroad. The establishment of the company can be regarded as a natural process driven by the market."

On June 15, 2022, the "2022 6th E-Cigarette Industry Standard and Compliance Conference and the E-Cigarette Export Trade Development Conference" hosted by the ECCC was held in Shenzhen Baoan, JW Marriott Hotel. During the conference, 2FIRSTS was able to interview Zuo Quan and he described the company's initial start: "Before the company was founded, it had already accumulated a lot of experience in the field of electronic cigarettes, and also some customer resources at home and abroad. The establishment of the company can be regarded as a natural process driven by the market."

 

A foundation in experience and customer resources, market-driven, and natural path- these keywords may be difficult to think of as the reason for the establishment of a business. The director and co-founder of ALD Group proudly terms them "Versailles".

 

On June 15, 2022, the "2022 6th E-Cigarette Industry Standard and Compliance Conference and the E-Cigarette Export Trade Development Conference" hosted by the ECCC was held in Shenzhen Baoan, JW Marriott Hotel. During the conference, 2FIRSTS was able to interview Zuo Quan and he described the company's initial start: "Before the company was founded, it had already accumulated a lot of experience in the field of electronic cigarettes, and also some customer resources at home and abroad. The establishment of the company can be regarded as a natural process driven by the market."

 

Technology is the Primary Productive Forces

 

ALD Group is located in Bao'an District, Shenzhen. It is a vaporization technology company specializing in the manufacturing of electronic products. Since the establishment of the company in 2009, it has been more than 12 years since the company entered the trade. The company has always adhered to the development principle of "technology is the primary productive force". During the interview, we learned that in order to improve the production level and R&D capability of the company, ALD has established a close R&D cooperation relationship with domestic universities. They include the establishment of a research center with the School of Chemical Engineering of Sun Yat-Sen University

 

Zuo Quan said: "The company currently has a strong R&D and business development team. We also have deep accumulation in advanced intelligence and automation manufacturing capabilities. The R&D cooperation with various domestic universities is mainly in safety compliance, environmental protection materials, and user experience. These aspects are important to help the healthy development of the company. It also helps the strategic development direction of the entire company.”

 

Facing the Challenge Head on, Compliance is the Cornerstone

 

Although the development of ALD Group is "successful", it was not "smooth". As an emerging industry, in the process of internationalization facing some regions with unclear regulations, the product export still faces huge policy barriers.

 

With the vigorous development of the e-cigarette industry in recent years, many newcomers have been pouring in, bringing new vitality to the market, but also causing negative phenomenon such as infringement of intellectual property rights and price wars. "This is very harmful to enterprises as well as the entire industry. Due to the relatively short development time of the industry, the market also has large fluctuations." Zuo Quan said.

 

At this conference, Zuo Quan, emphasized in an exclusive interview with reporters that no matter how much the market fluctuates, ALD Group will face difficulties with a positive attitude. Talking about the core point of future development, he affirmed: "The company has always stuck to the focus of innovation in face of future development. Before that, compliance is of course the foundation of everything."

China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan Industrial Co., Ltd. has filed a patent application for a cellulose-free scaffold material for nicotine pouches, proposing a combination of bioceramic material, polydextrose and sugar alcohols to replace conventional microcrystalline cellulose and cellulose derivatives. The filing aims to address issues including powdery mouthfeel, residue and limited release control, while also reducing reliance on existing cellulose-based patent portfolios. In patent examples, one fast-release formulation reached a nicotine release rate of 50% at 10 minutes and more than 90% at 20 minutes.
Sep.02
Kuwait Tightens Tobacco and Nicotine Rules, Bans Under-21 Sales and Extends Public Smoking Restrictions to Vapes and Heated Tobacco
Kuwait Tightens Tobacco and Nicotine Rules, Bans Under-21 Sales and Extends Public Smoking Restrictions to Vapes and Heated Tobacco
Kuwait has issued a comprehensive new regulatory framework covering tobacco, e-cigarettes, heated tobacco and other nicotine products. Ministerial Decision No. 237 of 2026, signed by Health Minister Ahmad Al-Awadhi, will take effect on January 1, 2027. The rules prohibit sales to people under 21 and ban sales through websites, apps, social media and delivery services. E-cigarettes and heated tobacco products will also be treated as smoking in public and enclosed places where smoking is prohibited. Nicotine pouches and other oral nicotine products not registered as medicines are banned.
Regulations
Aug.17 by 2Firsts Perspectives
EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
The Irish presidency of the Council of the European Union is using bilateral talks to push the bloc’s Tobacco Taxation Directive toward a political agreement in November. According to Law360, citing an EU official, Sweden is unwilling to accept a minimum excise threshold above €20 per kilogram for nicotine pouches. Council negotiations have already lowered the European Commission’s original proposal, but a May 2026 presidency compromise still set the minimum at 10% of the tax-inclusive retail price or €30 per kilogram in 2028-29, with higher levels later.
Market
Sep.17 by 2Firsts Perspectives
Philippines Customs Seizes PHP11.68 Billion($200 Million) in Illegal Tobacco and Vapes in First Seven Months of 2026
Philippines Customs Seizes PHP11.68 Billion($200 Million) in Illegal Tobacco and Vapes in First Seven Months of 2026
Philippines Customs data showed that illegal cigarettes and vape products seized during the first seven months of 2026 were valued at about PHP11.68 billion, exceeding the PHP2.516 billion recorded for the full year of 2025. The figures were disclosed by a Bureau of Customs official during a House Committee on Ways and Means hearing on tobacco excise tax reforms. Vape-related seizures were valued at about PHP1.65 billion, with most cases recorded at the Manila International Container Port. Customs officials said enforcement against illicit tobacco trade would continue.
Aug.26
China Tobacco Supply-Chain Leader Huabao’s Three-Way Transformation Takes Hold as Overseas Revenue Jumps 216%, Non-Flavor Businesses Reach 42.2% and the Company Expands Into Global Next-Generation Tobacco Supply Chains
China Tobacco Supply-Chain Leader Huabao’s Three-Way Transformation Takes Hold as Overseas Revenue Jumps 216%, Non-Flavor Businesses Reach 42.2% and the Company Expands Into Global Next-Generation Tobacco Supply Chains
Huabao’s H1 2026 results show the company advancing across three connected fronts: international expansion, entry into next-generation tobacco supply chains and diversification beyond its traditional tobacco-related base. Overseas revenue rose 216.08% to CNY 96.02 million, while non-flavor businesses reached 42.2% of total revenue. Huabao also said it had entered the supply chains of leading global tobacco customers, as its nutrition, food ingredient, fragrance and personal-care businesses gained ground in Europe, Southeast Asia, Australia and New Zealand. However, adjusted net profit increased only 2.78%, and next-generation tobacco revenue was not separately disclosed, showing that the transformation is reshaping revenue and customer exposure but has yet to translate fully into underlying earnings.
Aug.28
As FDA Reshapes PMTA Reviews and ENDS Enforcement Priorities, CTP Acting Director Bret Koplow to Keynote NATO Event for a Retail Network of 66,000-Plus Stores
As FDA Reshapes PMTA Reviews and ENDS Enforcement Priorities, CTP Acting Director Bret Koplow to Keynote NATO Event for a Retail Network of 66,000-Plus Stores
Bret Koplow, acting director of the U.S. Food and Drug Administration's Center for Tobacco Products, will deliver a keynote and participate in a fireside chat at the National Association of Tobacco Outlets' Sept. 29-30 conference in Washington. His appearance comes months after the FDA moved to accelerate PMTA reviews and introduced a more differentiated enforcement policy for certain unauthorized ENDS and oral nicotine pouch products. The agency also plans a public list identifying manufacturers and products it does not currently intend to prioritize for enforcement under the May guidance. NATO says its membership includes more than 66,000 retail stores, making product-status transparency and enforcement boundaries directly relevant to the retail sector.
Aug.14