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On January 29th, according to reports from various British media outlets, the regulatory authorities in the UK have made the formal decision to ban disposable e-cigarettes in an effort to address the issue of underage addiction to e-cigarettes.
According to reports, it is understood that this ban will be implemented under the 1990 Environmental Protection Act. Previous reports have shown that five million disposable e-cigarettes are discarded in the UK every week, and the cost of recycling these e-cigarettes is expected to reach 200 million pounds annually.
However, the ban does not cover e-cigarettes that can be refilled with oil and reused, nor does it include other smoking cessation tools such as nicotine patches and medications.
This ban has had a significant impact on two listed companies.
Smoore International (06969) started the morning with gains but later turned into losses. The decline further intensified in the afternoon session, resulting in a final decrease of 3.35% at the closing. The stock closed at HKD 5.19, with a trading volume of HKD 44.355 million.
The United Kingdom is one of the main markets for Smoore's disposable products. In particular, in November 2023, Smoore launched its UK disposable e-cigarette product FEELM 2.0 at the annual forum of the UK Vaping Industry Association (UKVIA). FEELM 2.0 promises to provide a thousand puffs experience through significant efficiency improvements. However, the recent decision by the UK regulatory authorities to officially ban disposable e-cigarettes signifies a setback for Smoore's disposable e-cigarette strategy in the UK.
Stock in Yinghe Technology (SZ:300457) opened low and continued to decline in the afternoon. By the closing bell, it had dropped 11.33% to 16.12 CNY per share, with a trading volume of 543 million CNY.
Yinghe Technology's subsidiary Sikary owns two major brands, "SKE" and "Sikary." The UK market is the main focus for Sikary, with "SKE" being one of the leading brands in the country. Their product range covers various categories such as pod systems, disposables, CBD, MODs, and nicotine salts. Sikary has been actively cultivating the UK market and has obtained TPD product certification in June 2022 for both the UK and Europe. In March 2023, they further established a fully-owned subsidiary in Manchester.
"UK Disposable E-Cigarette Ban" Series Report
Policy Updates
【1】UK Government Announces Ban on Disposable E-Cigarettes
【2】UK Disposable Ban Legislation: Ban or Overwhelming Support – Diverse Opinions Openly Discussed
Market Dynamics
【1】After UK Disposable Ban: Retailers Clearing Stock, Major Distributors Turning to E-liquids and Open-Systems
【2】UK Announces Disposable E-Cigarette Ban: Smoore and Yinghe Technology Stock Prices Decline
Various Perspectives
【1】Black Market or Opportunity? Insiders' Perspectives on UK Disposable Ban
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