Jinjia's Response to Investor Concerns on E-cigarette Development

In recent days, Jinjia Group has responded to investors' concerns on the investor platform regarding the company's production layout in the e-cigarette industry, the development of new types of tobacco, and the opening up of key markets. Jinjia Group indicated that it is actively promoting market expansion and systematically exploring regional markets in Southeast Asia, the Middle East, Russian-speaking countries, and Japan.

A concerned individual inquired about the tariff policy on e-cigarettes and asked Jinjia Corporation if the tariffs would be the same if e-cigarettes were produced in Indonesia and exported to the United States or the European Union.

In response, Jinjia Corporation explained that Jinjia's new tobacco business is located on Batam Island, Indonesia, which is a free trade zone that benefits from exemptions on import and export duties, as well as consumption taxes. Jinjia's main activities in Indonesia involve the research and development, as well as the production, of HNB pods.

Another questioner wants to know the advantages and gaps of Jinjia Corporation's e-cigarette products compared to top-tier brands like REXL and Sikary in terms of quality, taste, e-liquid technology, production costs, and brand development.

Jinjia Co., Ltd. emphasizes its deep involvement in the emerging tobacco industry, specifically in areas such as ODM/OED manufacturing, e-liquid production, branding, and supply chain management. The company focuses on vape manufacturing as its core business, supported by e-liquid and supply chain services. It employs biologically targeted technology and target application systems to utilize environmentally friendly extraction and separation techniques, enriching aromatic ingredients. It is dedicated to the research and production of diverse, highly authentic, comfortable, long-lasting, and stable products.

Another issue involves Jinjia Holdings' subsidiary in Indonesia, which plans to commence production and sales of e-cigarettes in the second half of 2023. The inquirer is interested in the marketing performance of the company during this period.

Jinjia Group responds that trial production of its new Indonesian Jiangxia tobacco has begun, with a focus on expanding into the Southeast Asian, Middle Eastern, Russian-speaking, and Japanese regions. Market expansion efforts are proceeding in an orderly manner.