Shunhao Unable to Proceed with HNB E-Cigarette Manufacturing and Export Business Due to National Policy Restrictions

Nov.07.2024

Shanghai Shunho New Materials Technology Co., Ltd stated that due to national policies on e-cigarette production and operation, it is currently unable to carry out OEM and export business for heat-not-burn (HNB) e-cigarette cartridges domestically.

Recently, investors inquired on an investor interaction platform about Shanghai Shunho New Materials Technology Co., Ltd (002565.SZ): whether the company has any collaborations with international tobacco companies like British American Tobacco, Japan Tobacco, and Korea Tobacco in terms of tobacco packaging or e-cigarette devices and pods.

They also asked if the company's controlling or participating subsidiaries engage in OEM and export of HNB e-cigarette pod business. Additionally, investors expressed interest in whether Shunho Corporation has established business partnerships with Philip Morris International (PMI) and Imperial Tobacco.

In response, Shanghai Shunho New Materials Technology Co., Ltd. provided the following statement:

The client mentioned in your first question maintains a cooperative relationship with our company in the packaging field.

Due to national policies on e-cigarette production and operations, it is currently not possible to carry out OEM and export business for heat-not-burn (HNB) e-cigarette cartridges domestically. The company will continue to monitor relevant national policies in the future and will work on strengthening its presence in the e-cigarette industry chain, including production, branding, OEM, and export. Leveraging industry development opportunities, the company aims to maximize its brand and technical processing advantages to secure a greater market share.

As of now, the company has not entered into any business cooperation with the client mentioned in your third question. For specific information regarding the company's clients and partners, please refer to the periodic reports disclosed by the company in designated media channels.

References:

[1] 互动易

#E-cigarettes #Asia #China #Major companies

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