Itsuwa 2023: Decline in Revenue and Profit, Controllers Voluntarily Waiving $690,000 Bonuses

Business by 2FIRSTS, edited by Sophia
Apr.28.2024
Itsuwa 2023: Decline in Revenue and Profit, Controllers Voluntarily Waiving $690,000 Bonuses
Itsuwa's 2023 annual report reveals a significant decline in revenue and profit due to domestic and overseas market challenges.

On April 26th, Itsuwa released its 2023 annual report. During 2023, the company's operating income was 327 million yuan, a decrease of 49.85% compared to the previous year. Net profit attributable to the listed company's shareholders was 22.1272 million yuan, a decrease of 72.75% year-on-year.

 

Itsuwa 2023: Decline in Revenue and Profit, Controllers Voluntarily Waiving $690,000 Bonuses
2023 Annual Report | Image source: Itsuwa

 

The Itsuwa report shows that the company primarily employs an "ODM/OEM production and designated sales" business and sales model, supplying e-cigarettes and their related products to overseas e-cigarette brands for revenue, profit, and cash flow.

 

According to the Itsuwa report, the main reasons for the decline in income are: the impact of e-cigarette policies, the domestic ban on the sale of flavored e-cigarettes other than tobacco flavor, leading to increased competition in overseas markets.

 

The company's main operating gross profit margins in 2021, 2022, and 2023 were 26.20%, 28.56%, and 36.08% respectively. The gross profit margin in 2023 increased, primarily due to the appreciation of the US dollar exchange rate, an increase in the selling price converted to Renminbi compared to the same period last year, and a decrease in prices of key upstream raw materials such as batteries and microphones.

 

It is worth noting that the report highlights that their research and development products include disposable e-cigarettes, pod-system e-cigarettes, with a focus on environmental protection, modularity, and multiple pods.

 

  • The company has developed a biodegradable disposable e-cigarette product in compliance with environmental regulations. The product features a biodegradable shell and a modular design, allowing consumers to return it to designated dealers after use. Dealers can then disassemble the product into biodegradable shells and rechargeable batteries, which can be processed back into disposable e-cigarette products. This product is easy to assemble, has a biodegradable shell, and allows for the reuse of batteries, making it environmentally friendly.
  •  
  • In order to improve the user experience, the company has developed a line of multi-pod products. These pods can be easily interchanged with different flavors and feature a unique rotating structure for convenient and quick switching.

 

Since 2017, the company has actively promoted its own brands of e-cigarettes, such as VAPESOUL and VOOM, targeting different consumer groups with each brand. The sales of own-brand products account for 23.39% of total sales in this period. In 2024, the company plans to continue promoting the sales of its own brand e-cigarettes.

 

Itsuwa mentioned that the two actual controllers of the company, due to the difficulties in business operations in 2023 compared to the previous year (sub-company Shenzhen Wudian Technology Co., Ltd. did not obtain a tobacco monopoly license, resulting in the cessation of e-cigarette business operations, reducing the overall e-cigarette production capacity of the company, and the short-term benefits of its business transformation could not be achieved), have voluntarily waived their personal bonuses for the 2022 fiscal year amounting to 4,999,110.00 yuan in order to alleviate the company's financial pressure.

 

Itsuwa stated that, based on the industry's current situation, regulations are becoming stricter, competition is intensifying, and companies are facing increasing challenges.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Exclusive Analysis | Smoore H1 Revenue Rises 19.9% Amid Growth Concentration, Profit Pressure and Slowing Momentum
Exclusive Analysis | Smoore H1 Revenue Rises 19.9% Amid Growth Concentration, Profit Pressure and Slowing Momentum
Smoore’s first-half 2026 revenue rose 19.9%, but the results revealed growing structural risks beneath the headline growth. Heat-not-burn contributed about 61% of incremental revenue and remains driven largely by one core customer, while traditional vaping markets diverged, own-brand growth slowed and China enterprise revenue declined further. Gross profit and adjusted profit lagged revenue growth, while second-quarter revenue growth slowed to about 1.9%, putting greater focus on the quality, concentration and sustainability of Smoore’s expansion.
Capital Markets
Aug.20
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
The UK government has announced that HM Revenue & Customs (HMRC) will carry out more than 30,000 interventions targeting businesses and retail premises during the 2026-2027 financial year. The actions will focus on tax fraud, illegal goods sales and businesses involved in unlawful activities through retail channels. The government said illegal tobacco and illegal vape sales remain areas of concern. The move shows that UK enforcement against illegal nicotine products is expanding from import and supply channels toward retail-level oversight, alongside the upcoming introduction of the Vaping Products Duty.
Jul.24
Product | SnowPlus Launches Nicotine-Free DASH in South Korea, Localising an Established Disposable Platform
Product | SnowPlus Launches Nicotine-Free DASH in South Korea, Localising an Established Disposable Platform
SnowPlus has introduced a nicotine-free version of DASH in South Korea, adapting an existing overseas disposable platform for the local market. The Korean version retains the series’ flat duckbill-style mouthpiece, ceramic heating architecture and disposable form factor while reducing nicotine content to 0%. By comparison, the overseas DASH 4000 platform typically features 7.5ml of prefilled e-liquid, up to 4,000 puffs and a 530mAh rechargeable battery, with nicotine-containing variants available in some markets. The product update centers on formulation localisation rather than a new hardware generation.
Aug.31
2Firsts Hosts U.S. Market Mid-Year Briefing: Companies Need to Reassess Product and Market-Access Strategies
2Firsts Hosts U.S. Market Mid-Year Briefing: Companies Need to Reassess Product and Market-Access Strategies
2Firsts held its 2026 U.S. Market Compliance and Development Mid-Year Briefing in Shenzhen, China, on July 28. The discussion examined how state-level requirements, proposed foreign-establishment registration rules and expanding supply-chain responsibilities are changing product and investment decisions in the U.S. tobacco and nicotine market.
Jul.29
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australia’s Coalition has unveiled a national illicit-tobacco policy that would cut tobacco excise by 80% and create legal, regulated and taxed adult markets for vaping products and nicotine pouches if it wins government. The plan proposes an excise of A$0.50 per millilitre of e-liquid and A$0.025 per milligram of nicotine in pouches, alongside A$200 million in additional enforcement and a A$60 million three-year public-awareness campaign. The Coalition says the package would narrow the price advantage of illicit products and undermine organised crime, while Labor and public-health groups warn that dramatically cheaper cigarettes could reverse long-term declines in smoking.
Sep.03
Australia’s Daily Smoking Rate Falls to Record Low of 5.8% as Nicotine Use Patterns Shift
Australia’s Daily Smoking Rate Falls to Record Low of 5.8% as Nicotine Use Patterns Shift
According to the Australian Institute of Health and Welfare’s National Drug Strategy Household Survey, daily smoking among Australians aged 18 and over fell to a record low of 5.8% in 2025. Health Minister Mark Butler said Australia now has around 500,000 fewer daily smokers than three years ago and credited the government’s vaping reforms as part of broader progress. Among people aged 14 and over, daily smoking declined from 8.3% in 2022-23 to 5.6% in 2025. Daily vaping rates stabilised at 3.6%, while the government also moved to further restrict access to nicotine pouches through unapproved therapeutic import pathways.
Jul.21