Kennede Electronics MFG Co.,Ltd. 2025 Half-Year Report: E-cigarette Business Revenue Falls 54.57% to 26.21 million yuan, accounting for less than 5% of total revenue

Key Points:

·Revenue and Gross Margin: In the first half of 2025, Kennede Electronics MFG Co.,Ltd. achieved e-cigarette business revenue of 26.2068 million yuan, a year-on-year decrease of 54.57%.

·Market Impact: The business has been affected by stricter industry regulation, intensified market competition, and policy changes in major markets, resulting in reduced orders and declining revenue.

·Response Measures: The company is optimizing product design, enhancing quality, and expanding into new markets to address current challenges.

On September 1, 2025, Kennede Electronics MFG Co.,Ltd. (stock code: 002723) released its 2025 interim report, including data on its e-cigarette business.

In the first half of 2025, Kennede Electronics Mfg Co., Ltd.'s e-cigarette business achieved operating revenue of 26.2068 million yuan, a year-on-year decrease of 54.57% compared to the same period last year, when it was 57.6881 million yuan. The revenue proportion was 4.65% of the total operating income, lower than the 7.26% in the same period last year.

Detailed Information on the e-cigarette Industry

Business Overview:

Kennede Electronics Mfg Co., Ltd.'s e-cigarette business is part of the company's diversified business portfolio, focusing primarily on both domestic and international markets.

During the reporting period, the e-cigarette business saw a decrease in product orders and a decline in revenue due to changes in industry policies, intensified market competition, and factors such as the economic, political, and climate conditions in customer countries.

Market environment:

In the first half of 2025, the e-cigarette industry faces challenges from stricter regulations and changes in the trading environment. Due to tariffs and compliance issues, the traditional e-cigarette consumption giant, the United States, has seen a decrease in its export volume to China, dropping by nearly 50% compared to the previous period.

Kennede Electronics Mfg Co., Ltd. has stated that their market share in Southeast Asia and the Middle East e-cigarette markets has increased, indicating a certain degree of regional structural adjustment. However, this growth has not fully offset the impact of the decline in their main markets.

Future prospects:

Kennede Electronics Mfg Co., Ltd. stated that despite facing challenges in the e-cigarette business during the reporting period, the company will continue to optimize product design, improve product quality, expand market share, and respond to the current market situation.