Kosen Technology to Launch Heat-not-burn E-cigarettes in Vietnam

Jun.05.2023
Kosen Technology to Launch Heat-not-burn E-cigarettes in Vietnam
Kosen Technology's e-cigarette project is registered and will be based in Vietnam, with the first production project being a non-combustible e-cigarette.

Recently, listed company Kosen Technology disclosed the minutes of its investor survey on the Shanghai Stock Exchange. Kosen Technology stated that its electronic cigarette project has completed registration and will be launched in Vietnam.


Kosen Technology has announced the completion of registration procedures for the establishment of its company in Vietnam. The first mass-production project at the Vietnam factory will be a non-combustible electronic cigarette that heats up. Other projects under development are also being progressed.


Below is the original Q&A transcript:


Question: How is the progress of the production base in Vietnam? Can you provide an overview of the project pipeline for the production base in Vietnam?


Answer: The company has completed registration procedures for establishing a company in Vietnam and has received approval documents such as the "Overseas Investment Project Filing Notice" from relevant departments. The decision to invest and build production capacity in Vietnam was made after considering various factors. The first mass-production project of the Vietnamese factory is for a heat-not-burn electronic cigarette, and other reserved projects are also under development. From the perspective of protecting the domestic electronic cigarette industry, companies like PMI cannot be allowed to establish production capacity within China's borders. Therefore, in terms of the supply chain, the company will relocate the production capacity of heat-not-burn electronic cigarettes to Vietnam to help secure orders, while production capacity for products such as smartphones and tablets that have good consumer markets in China will remain within the country.


Here is the translation to standard journalistic English: Original Q&A | Image source: 2FIRSTS


According to reports, Kunshan Kosen Technology Co., Ltd. was established in 2010. It is a high-tech enterprise specializing in the research and development, manufacturing, and service of precision structural parts. The company provides precision metal and plastic structural parts as well as assembly services for end products such as consumer electronics, medical devices, new energy vehicles, electronic cigarettes, and photovoltaic power generation, among others.


On March 31st, 2023, Cosun Technology issued a statement disclosing plans to invest $43 million in establishing a subsidiary in Vietnam. The actual investment amount will be subject to approval by Chinese and local regulatory authorities. According to market demand and business progress, the company will implement phased construction of its Vietnamese production base.


The company stated that since 2018, it has been continuously providing heating not burning electronic cigarette components to international major clients. The company's main focus for electronic cigarettes remains on heating not burning products, and the major client strategy remains unchanged.


Reference:


Investor Relations Activity Log Form for June 1, 2023.



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