E-Cigarette Battery: EVE Energy’s First-Half Performance Fell 10% as the E-Cigarette Market Turned V

Introduction: It is reported that on the evening of August 27, EVE Energy released its 2014 semiannual report, stating that in the first half of the year it achieved operating revenue of RMB 503 million, up 24.03% year-on-year; net profit of RMB 52.3239 million, down 9.92% year-on-year; and basic earnings per share of RMB 0.13.
Heated Tobacco News reported: according to the DZH Aastocks News Agency on August 27, EVE Energy released its 2014 semiannual report on the evening of August 27, stating that in the first half of the year it achieved operating revenue of RMB 503 million, up 24.03% year-on-year; net profit of RMB 52.3239 million, down 9.92% year-on-year; and basic earnings per share of RMB 0.13.
EVE Energy said that its primary lithium battery business continued to grow, achieving operating revenue of RMB 261 million, up 24.87% year-on-year; its lithium-ion battery business achieved operating revenue of RMB 141 million, down 19.23% year-on-year; its electronic products business achieved operating revenue of RMB 56.2138 million; and its e-cigarette products business achieved operating revenue of RMB 43.9898 million.
EVE Energy stated that the growth in its primary lithium battery business was mainly driven by increased demand from markets such as intelligent transportation and bank dynamic password devices. The year-on-year decline in the lithium-ion business was due to adjustments in the e-cigarette market, which reduced demand for lithium-carbon batteries. The electronic products business generated sales during the reporting period following earlier R&D and preparation by EVE Electronics. The e-cigarette business came from McWell, which was acquired in the first quarter of 2014 and consolidated into financial statements starting in the second quarter.
Primary lithium batteries are one of EVE Energy’s core strengths. Traditional sectors such as smart meters maintained stable growth, while emerging sectors including intelligent transportation, RFID, and bank dynamic password cards grew rapidly and became major highlights for the company. At the same time, supported by government policies, the industrial energy storage and new energy vehicle markets are expected to drive rapid growth in energy storage lithium batteries.
The e-cigarette market experienced rapid growth starting in late 2012 and was viewed positively by the market. However, beginning in early 2014, demand for open-system vaping devices surged quickly, impacting the traditional e-cigarette market and slowing its growth. As open-system devices became widely accepted by consumers, many traditional e-cigarette brands began shifting toward sales of these products, while international tobacco giants also started actively entering the market. A market reshuffle was expected in 2014.