Shanghai Lvnxin Data Shows a Clear Decline in Overseas Vaping Markets

 Introduction: According to reports, Shanghai Lvnxin expects to achieve a net profit of 169 million to 200 million yuan from January to September 2014, a year-on-year increase of 10% to 30%. The performance change is attributed to its own market development and steady improvement in operating performance. Shanghai Lvnxin stated that the performance in the first half of the year continued to grow, benefiting from the ongoing resource integration in the vacuum aluminum paper industry, as well as the extension of downstream cigarette label printing business as a supplement, while actively promoting the development of the electronic cigarette business.

According to Chinese electronic cigarette news: On August 25, Da Zhi Hui Asta Communications reported that Shanghai Lvnxin released its semi-annual report on the evening of August 24, stating that in the first half of 2014, it achieved an operating income of 1.132 billion yuan, a year-on-year increase of 43.63%; net profit of 113 million yuan, a year-on-year increase of 22.01%; basic earnings per share were 0.16 yuan/share.

Shanghai Lvnxin stated that the performance in the first half of the year continued to grow, benefiting from the ongoing resource integration in the vacuum aluminum paper industry, as well as the extension of downstream cigarette label printing business as a supplement, while actively promoting the development of the electronic cigarette business.

Shanghai Lvnxin expects to achieve a net profit of 169 million to 200 million yuan from January to September 2014, a year-on-year increase of 10% to 30%, with performance changes attributed to its own market development and steady improvement in operating performance.

Shanghai Lvnxin's main business is aluminum-plated paper, and it continues to grow through an "internal + external" approach, maintaining the top market share in the country. At the same time, the company is actively exploring the electronic cigarette market, with frequent moves in the electronic cigarette business in recent months. In August, it continued to enter the cloud printing and smart machinery sectors, laying out new fields with far-reaching significance.

In the second quarter of 2014, the electronic cigarette business under Lorillard achieved revenue of 37 million USD, a year-on-year decline of 35%, indicating a decline in the overseas electronic cigarette market.

According to a research report by Everbright Securities on August 21, this situation is not entirely bad for excellent companies that treat the electronic cigarette industry as a business. On one hand, the industry's return to rationality will lead many non-compliant electronic cigarette companies to exit the market; on the other hand, Shanghai Lvnxin can use this time window to solidify the foundation of the electronic cigarette industry and prepare to face the industry's "return" with stronger competitive strength.