Is SMOK Vaping Good?
Is SMOK vaping any good? The company focuses on vaping technology research and development, with strong emphasis on brand operation and brand building, while continuously launching quality new products. IVPS is a professional vaping manufacturer and brand
Is smok electronic cigarettes good? The company focuses on the research and development of e-cigarette technology, focuses on brand management and construction, and continues to launch high-quality new products
Avipus is a professional e-cigarette manufacturer and brand operator integrating research and development, production, sales and service. It adheres to the e-cigarette brand development idea, pursues independent and personalized e-cigarette products, and strives to dominate the e-cigarette consumer market and lead the e-cigarette consumption trend. The company has all categories of e-cigarettes from entry level to fever level, covering more than 80 million user groups as of 2016. The main products include smart e-cigarettes set, classic e-cigarettes set, DIY e-cigarettes, atomizers and various e-cigarette accessories. It owns two major brands: SMOK and KOOPOR. SMOK targets the mid-to-high-end market, and KOOPOR targets young people and focuses on high cost performance.
The company has strong new product development capabilities, is good at creating hot models, and quickly detonates the market. In 2016, the company's patented products SMOK brand's TFV8 atomizing core (atomizer consumables accessories) and Alien Kit (shaped set) ultra-large smoke e-cigarettes were launched. Both series of products adopt the latest technology in the industry. The products are fashionable in appearance, excellent in quality, and powerful in functions., they have been widely sought after in foreign markets and quickly become a hot product, and their performance has grown rapidly. The TFV8 atomizing core series products sold more than 1.1 million units in 2016, with sales revenue of 136 million yuan, accounting for 14.9% of the year's revenue; the Alien Kit series products sold more than 500,000 units in 2016, with sales revenue of 127 million yuan, accounting for 13.6% of the year's revenue.
Alien Kit series
The company focuses on dealer distribution and combines online direct sales. It mainly covers the markets of developed countries in Europe and America such as the United States, Britain, and France, and strives to deploy the domestic market. The company relies on distribution channels to establish a solid customer base; promotes products through online direct sales, and cooperates strategically with Jingdong, Tmall, Amazon, etc. to enhance the consumer experience. In 2016, the company increased overseas marketing and promotion efforts and successfully explored markets in Russia, South Africa and other places. Russia's export sales in 2016 were US$2.22 million, accounting for 1.6% of the year's revenue. The company's domestic sales include traders, offline wholesale, e-commerce platforms, etc. The company actively expands offline traders and increases e-commerce promotion efforts. Domestic sales have increased significantly. In 2016, domestic market sales revenue was 280 million yuan (+189%), accounting for 30.4% of the year's revenue.
SMOK Tmall flagship store
The company promotes online and offline multi-dimensional marketing and actively expands domestic and foreign channel resources. The company has strategic cooperation with world-renowned e-cigarette sales websites, using brand promotion such as Facebook, Twitter, official website, and WeChat, using well-known critics to promote products, and placing advertisements in major well-known industry forums to establish a mature and complete online marketing model. The company participated in well-known large-scale exhibitions in the United States, France, Germany, Britain, Russia and other countries, and vigorously promoted the company's latest technologies and products. Among them, nearly 2 million units of Alien variant suits under the newly developed and best-selling product SMOK brand were shipped.
Special-shaped suit details
Based on the characteristics of e-cigarettes that are conducive to social communication, the company caters to the individuality of consumers in the new era, pursues fashion and cool consumer psychology, and builds its own e-cigarette vertical social platform, Vaping Tour, with more than 600,000 registered fans, becoming the industry's largest global steam fan community. E-cigarettes are products that are highly dependent on actual experience. In addition to merchant promotion, consumers prefer to understand products through the way other users share experiences and obtain more objective and reference information. The company has created a Vaping Tour, an e-cigarette exchange community, cultivated a circle culture, gathered e-cigarette experts, and became a communication and interactive platform for e-cigarette enthusiasts.
The company keeps up with changes in consumer demand and continues to launch unique competitive products. The company was established in 2010 and founded its own brand SMOK, targeting the mid-to-high-end market; in 2011, it developed and launched the patented product“ dual-emitting disposable atomizer” (dual-emitting can obtain a larger amount of smoke), leading the e-cigarette market into the dual-emitting era; In 2012, the adjustable voltage product VMAX and its upgraded version ZMAX series were designed and produced, and e-cigarette products entered the era of adjustable voltage and power; In 2014, product design and research developed towards intelligent development, launching smart Bluetooth products BEC Pro and X CUBE BT50; In 2015, SMOK brand products, the 160-watt high-power fully temperature-controlled Bluetooth smart box (X CUBE II) and the revolutionary Fuwei 4th generation (TFV4) atomizer, created a new era of high-power and high-smoke; In July 2015, it launched KOOPOR, a cost-effective e-cigarette brand targeting young people, and launched two products, KOOPOR mini and Plus.# p#pagination title #e#
KOOPOR series products
The company has first-class R & D capabilities and a number of independent intellectual property rights. The company's R & D team has more than 40 senior electronic engineers and ID designers, including some e-cigarette scientific research backbones, has advanced scientific research laboratories, and invests a large amount of scientific research funds to provide support for scientific research and innovation. The company has leading research and development capabilities. As of the end of 2016, it has obtained 123 patents, including 54 utility model patents and 69 design patents. It has applied for 129 patents that have not yet been authorized, including 6 invention patents and 82 utility model patents., 41 design patents. The company's products have obtained high-standard certifications recognized by the industry such as CE, RoHS, and FCC.
The company benefited from the rapid growth of the e-cigarette market and maintained high growth in its performance. Total revenue: From 2014 to 2016, it was 50 million, 310 million (+528%), and 920 million (+200%) respectively. Net profit attributable to the parent company: From 2014 to 2016, it was 05 million, 50 million (+1,011%), and 190 million (+272%) respectively. Gross profit margin: 37.7%, 32.2%, and 30.4% respectively from 2014 to 2016. Net interest rate: 9.3%, 16.4%, and 20.3% respectively from 2014 to 2016.
The company's core technical personnel have rich experience and strong influence in the industry. According to the latest industrial and commercial information, Ouyang Junwei, chairman and general manager of the company, was born in 1989 and served as the marketing director of Shenzhen Siyongchuang Technology Co., Ltd. Company director Chen Wen (former chairman), born in 1986, with a bachelor's degree, served as marketing manager of Sanfu Co., Ltd. and supervisor of Shenzhen Siyongchuang Technology Co., Ltd.; Director Shen Jinwan, born in 1975, with a college degree, has successively served as an employee of the warehouse department of Shenzhen Linjian Electronic Industry Co., Ltd., an employee of the production department of Shenzhen Zhongxiexing Industrial Co., Ltd., and the director of Gongming Lanxin Hardware Products Factory in Bao 'an District, Shenzhen; Director Shen Cheng, born in 1988, has a college degree, and served as deputy manager of Shenzhen Siyongchuang Technology Co., Ltd.
On April 23, 2014, Shen Jinwan, Chen Wen, Shen Cheng, Ouyang Junwei, etc. acquired the shell company for 500,000 yuan (Shenzhen Xufeng Aluminum Technology Co., Ltd., established in 2010, its main business is the production and sales of aluminum products) 100% equity; on April 25, 2014, the shell company was renamed Shenzhen Avipus Technology Co., Ltd., its main business direction shifted to the research and development, production and sales of electronic atomizers, controllers and their parts technology; and was listed on the New Third Board in November 2015; in June 2016, 4 shares were transferred to all shareholders for every 10 shares and 6 yuan in cash; In May 2017, 18 yuan in cash was paid to all shareholders for every 10 shares increased by 23 shares; the listing was terminated in July 2017.
The company currently has 1 wholly-owned subsidiary, with 301, 554 and 402 employees at the end of 2014 - 2016. In 2016, the company strengthened internal management, sorted out and simplified work processes, improved work efficiency, and reduced the number of employees accordingly.
The company's shareholders (the data is derived from the company's 2016 annual report and is for reference only. According to the latest industrial and commercial data, the latest shareholding structure has changed)
The foreign market for e-cigarettes is in the ascendant, but the domestic market needs to be developed
E-cigarettes, also known as electronic atomizers, are similar in appearance and taste to cigarettes. They are a non-burning cigarette alternative product. E-cigarettes are composed of battery cells, microcomputer control circuits and program control, atomizer and cigarette bombs. They have similar appearance, smoke, taste and feeling to cigarettes. The main principle of the product is to provide energy through lithium batteries to atomize tobacco oil to produce smoke for use. The main role is to replace traditional cigarettes and assist in smoking cessation. E-cigarettes can refresh themselves, satisfy their cravings, and make smokers feel happy and relaxed. The biggest difference between e-cigarettes and traditional cigarettes is that they are not burned, have no toxic substances such as tar and heavy metals, and do not produce second-hand smoke.
Structure of e-cigarettes
The increasingly strong demand in Europe and the United States and domestic policy controls have made e-cigarette products present a global industrial chain pattern with the manufacturing center in China and the demand center in Europe and the United States. The upstream market of the e-cigarette industry chain mainly involves industries such as batteries, tobacco oil, heating components, and control circuits. The downstream demand market is mainly for smokers who need to quit smoking and replace traditional cigarettes. At present, most domestic e-cigarette manufacturers adopt OEM and ODM business models, that is, the manufacturers accept the entrustment of the consignor, undertake OEM production tasks, independently develop and produce e-cigarette products and product accessories, and label them with the consignor's brand trademark, without the need to directly connect with the market.
The appeal of e-cigarettes continues to increase, and there is broad space for future development
Environmental protection and health concepts are gradually popularized and the development of smoking cessation and tobacco control products is promoted. Governments and public organizations in various countries are increasingly paying attention to public environmental protection and health issues and enacting relevant laws and policies to control and ban smoking. People's health awareness will gradually increase, the tobacco consumption pattern will undergo major changes, and the market capacity of smoking cessation and tobacco control products such as e-cigarettes will further expand.# p#pagination title #e#
The e-cigarette consumer group accounts for a small proportion of total smokers, and the demand for e-cigarette products will be huge in the future. The number of smokers in China is about 350 million, and the number of smokers is 6 to 7 times that of the United States. However, the current domestic e-cigarette penetration rate is much lower than that of Europe and the United States, and the domestic market has huge room for development. The e-cigarette market is still blank in Russia, India and other countries with large smoking populations; even in mature markets such as Europe and the United States, due to insufficient market publicity, the current proportion of consumer groups in the overall proportion of smokers is still relatively small.
The value of traditional cigarettes continues to rise, and the cost performance of e-cigarettes has begun to become prominent. Affected by the vigorous tobacco control measures of various governments, the prices of traditional cigarettes continue to rise. With the advancement of technology and the advancement of large-scale production, the price of e-cigarettes is expected to become civilian. The smoking time of the e-cigarette is longer, and the e-cigarette atomizer and battery core can be reused. It can be used again only by replacing the disposable cigarette cartridge. The disposable cigarette cartridge of ordinary e-cigarettes has a lifetime equivalent to a pack of cigarettes, and its cost-effectiveness for long-term use is prominent.
Advances in e-cigarette technology have boosted product experience, attracted more consumers, and promoted e-cigarette sales. E-cigarettes are a comprehensive and strong technological product, involving materials science, electronic technology, aerodynamics, fluid mechanics, electroheating, etc. The development of basic disciplines promotes the improvement of e-cigarette technology and promotes the continuous progress of e-cigarette technology. From the original first-generation e-cigarettes to the current third-generation e-cigarettes, their safety, intelligence, taste diversity, smoking experience, etc. have been greatly improved.
Guided by customer needs and based on R & D strength, the company creates a variety of high-quality products
The company has extensively carried out research and development of new e-cigarette products and continued to launch innovative e-cigarettes. The company developed and launched its patented product dual-emitting disposable atomizer, which has led the e-cigarette market into the dual-emitting era; the independently developed and designed adjustable voltage VMAX and upgraded ZMAX series have led battery box device products to enter adjustable voltage and adjustable power era. With the continuous innovation of e-cigarette products, the company continues to launch new products and has developed more than 200 models of e-cigarette products.
Some of the company's e-cigarette products
The company focuses on customer needs, keeps a close eye on market trends, and promotes product research and development. The company pays close attention to the release and application of new technologies and new products, extensively conducts relevant information and materials, provides market information and new product trends based on product market research and analysis, organizes new product approval, and conducts research on new technology applications. Through technical research or new product project research and development, the company promotes the company's technological innovation and new technology application, and continuously develops and improves new products.
The company will incorporate more intelligent functions of e-cigarettes and plans to shift to a hardware + service model. The company's revenue and profits mainly come from sales of e-cigarette products. As R & D investment continues to increase, the company will incorporate more intelligent functions into e-cigarette products to further enhance the added value of products, and gradually shift its profit model to diversified methods such as hardware + services.
The company adopts a marketing model that combines independent + outsourcing production model, dealer distribution + online direct sales
The company independently produces e-cigarette controllers + collaborates with outsourcing to produce e-cigarette atomizers, making rational use of production capacity. The company's workshop receives materials according to orders, completes the assembly of controller products, and conducts inspection and warehousing; the warehouse dispatches materials to the outsourcing manufacturers according to the outsourcing orders. The outsourcing manufacturers process the nebulizer and other materials according to the entrustment, inspect and put them into storage. Before the company's outsourcing manufacturers start work, it fully communicates on the key quality points and key processes of product production. The outsourcing manufacturers will process the atomizer. The company supervises and inspects the production process, and tests and accepts the outsourcing products.
The company's suppliers are stable and the concentration is on the rise, ensuring the stability of raw material quality. The company's top five suppliers accounted for 46.2%, 56.1%, and 60.7% in total from 2014 to 2016. The main raw materials for the company's e-cigarette products include battery assembly materials, atomizer assembly materials and packaging raw materials. The raw materials for the production and assembly of batteries include control boards, protective plates, adapters, etc., the raw materials for the production and assembly of nebulizers include drip nozzles, large copper parts, etc., and the raw materials for packaging include cartons, cartons and other packaging products.
Purchase amount and proportion of the top five suppliers (unit: million yuan)
The company adopts a sales model that focuses on dealer distribution and combines online direct sales promotion. Dealer model: mainly aimed at major customers, relying on dealers to cover final customer groups around the world, with short supply cycles and fast capital flow. In the early days of the company, it mainly sold to overseas dealers through two major dealers, Avipos (Hong Kong) and Hong Kong Lemant; the company collected cooperation deposits from domestic dealers and authorized the sellers to sell the company's brand products in designated areas at the company's recommended retail price. Online direct sales: The company has strategic cooperation with world-renowned e-cigarette sales websites such as Jingdong, Tmall, and Amazon to enhance the consumer experience.# p#pagination title #e#
Company revenue by region (unit: million yuan)
The company's customer concentration has declined, reducing the risk of relying on major customers, which will help the company gain pricing initiative. From 2014 to 2016, the company's top five customers accounted for 98.8%, 35.3%, and 19.2% of revenue respectively.
Proportion of revenue from top five customers (unit: million yuan)
Note: IVPS Technology Co., Ltd. LIMITED) is a Hong Kong company controlled by Ouyang Junwei, a shareholder of the company and current chairman of the company. The company mainly relies on it to complete the overseas sales of e-cigarettes, forming a related transaction; on October 20, 2015, Avipus Technology Co., Ltd. was cancelled, and the corresponding business was completed by Avipus Hong Kong, a wholly-owned subsidiary of the company.
The company's products adopt a variety of pricing methods, which are priced from two perspectives: product life cycle and product positioning. The company prices according to the product type life cycle: it is divided into high price policy, discount pricing, price follow-up policy, and low price policy. Independent innovation and development of new products are put on the market. Due to their leading market and the supply exceeds demand, a high-priced strategy is adopted, and the pricing is set at 170%~200% of the cost; in the middle of product development, when the product is mature and the production capacity is stable, discount pricing is adopted, and the pricing is set at about 150% of the cost; During the mature period of product development, product competition is fierce. A price-following policy is adopted, and pricing is made with reference to similar products of competitors, and the pricing is set at 115%~130% of the cost; At the end of product development, a low-price policy is adopted, and sales pricing is based on the inventory situation, which is lower than the cost price or the cost price is cleared. The company also divides pricing according to product types and grades: independently develops high-end products, goes to the high-end market, adopts a high-price policy, and the pricing is 180% to 250% of the cost; mid-to-low-end products, follows a popular route, adopts a low-price policy, and the pricing is 120% to 160%.
The e-cigarette market performed outstandingly and its performance maintained high growth
Total revenue: From 2014 to 2016, it was 50 million, 310 million (+528%), and 920 million (+200%) respectively.
Net profit attributable to the parent company: From 2014 to 2016, it was 05 million, 50 million (+1,011%), and 190 million (+272%) respectively.
Gross profit margin: 37.7%, 32.2%, and 30.4% respectively from 2014 to 2016.
Net interest rate: 9.3%, 16.4%, and 20.3% respectively from 2014 to 2016.
The company is actively expanding, its profitability continues to increase, and its cash flow is good. The company's asset-liability ratio increased from 67.4% in 2014 to 74.0% in 2016. The level of leverage is relatively high, and the company adopts a more active expansion strategy; from the perspective of cash flow and current ratio, the company has good liquidity, from the perspective of accounts receivable turnover. From the perspective of high turnover rate, the ability to collect money is strong and income is basically reflected in cash; from the perspective of net interest rate growth rate, the company maintained rapid growth from 2015 to 2016.
Avipus is a professional e-cigarette manufacturer and brand operator integrating research and development, production, sales and service. It adheres to the e-cigarette brand development idea, pursues independent and personalized e-cigarette products, and strives to dominate the e-cigarette consumer market and lead the e-cigarette consumption trend. The company has all categories of e-cigarettes from entry level to fever level, covering more than 80 million user groups as of 2016. The main products include smart e-cigarettes set, classic e-cigarettes set, DIY e-cigarettes, atomizers and various e-cigarette accessories. It owns two major brands: SMOK and KOOPOR. SMOK targets the mid-to-high-end market, and KOOPOR targets young people and focuses on high cost performance.
The company has strong new product development capabilities, is good at creating hot models, and quickly detonates the market. In 2016, the company's patented products SMOK brand's TFV8 atomizing core (atomizer consumables accessories) and Alien Kit (shaped set) ultra-large smoke e-cigarettes were launched. Both series of products adopt the latest technology in the industry. The products are fashionable in appearance, excellent in quality, and powerful in functions., they have been widely sought after in foreign markets and quickly become a hot product, and their performance has grown rapidly. The TFV8 atomizing core series products sold more than 1.1 million units in 2016, with sales revenue of 136 million yuan, accounting for 14.9% of the year's revenue; the Alien Kit series products sold more than 500,000 units in 2016, with sales revenue of 127 million yuan, accounting for 13.6% of the year's revenue.
Alien Kit seriesThe company focuses on dealer distribution and combines online direct sales. It mainly covers the markets of developed countries in Europe and America such as the United States, Britain, and France, and strives to deploy the domestic market. The company relies on distribution channels to establish a solid customer base; promotes products through online direct sales, and cooperates strategically with Jingdong, Tmall, Amazon, etc. to enhance the consumer experience. In 2016, the company increased overseas marketing and promotion efforts and successfully explored markets in Russia, South Africa and other places. Russia's export sales in 2016 were US$2.22 million, accounting for 1.6% of the year's revenue. The company's domestic sales include traders, offline wholesale, e-commerce platforms, etc. The company actively expands offline traders and increases e-commerce promotion efforts. Domestic sales have increased significantly. In 2016, domestic market sales revenue was 280 million yuan (+189%), accounting for 30.4% of the year's revenue.
SMOK Tmall flagship store
The company promotes online and offline multi-dimensional marketing and actively expands domestic and foreign channel resources. The company has strategic cooperation with world-renowned e-cigarette sales websites, using brand promotion such as Facebook, Twitter, official website, and WeChat, using well-known critics to promote products, and placing advertisements in major well-known industry forums to establish a mature and complete online marketing model. The company participated in well-known large-scale exhibitions in the United States, France, Germany, Britain, Russia and other countries, and vigorously promoted the company's latest technologies and products. Among them, nearly 2 million units of Alien variant suits under the newly developed and best-selling product SMOK brand were shipped.
Special-shaped suit details
Based on the characteristics of e-cigarettes that are conducive to social communication, the company caters to the individuality of consumers in the new era, pursues fashion and cool consumer psychology, and builds its own e-cigarette vertical social platform, Vaping Tour, with more than 600,000 registered fans, becoming the industry's largest global steam fan community. E-cigarettes are products that are highly dependent on actual experience. In addition to merchant promotion, consumers prefer to understand products through the way other users share experiences and obtain more objective and reference information. The company has created a Vaping Tour, an e-cigarette exchange community, cultivated a circle culture, gathered e-cigarette experts, and became a communication and interactive platform for e-cigarette enthusiasts.
The company keeps up with changes in consumer demand and continues to launch unique competitive products. The company was established in 2010 and founded its own brand SMOK, targeting the mid-to-high-end market; in 2011, it developed and launched the patented product“ dual-emitting disposable atomizer” (dual-emitting can obtain a larger amount of smoke), leading the e-cigarette market into the dual-emitting era; In 2012, the adjustable voltage product VMAX and its upgraded version ZMAX series were designed and produced, and e-cigarette products entered the era of adjustable voltage and power; In 2014, product design and research developed towards intelligent development, launching smart Bluetooth products BEC Pro and X CUBE BT50; In 2015, SMOK brand products, the 160-watt high-power fully temperature-controlled Bluetooth smart box (X CUBE II) and the revolutionary Fuwei 4th generation (TFV4) atomizer, created a new era of high-power and high-smoke; In July 2015, it launched KOOPOR, a cost-effective e-cigarette brand targeting young people, and launched two products, KOOPOR mini and Plus.# p#pagination title #e#
KOOPOR series products
The company has first-class R & D capabilities and a number of independent intellectual property rights. The company's R & D team has more than 40 senior electronic engineers and ID designers, including some e-cigarette scientific research backbones, has advanced scientific research laboratories, and invests a large amount of scientific research funds to provide support for scientific research and innovation. The company has leading research and development capabilities. As of the end of 2016, it has obtained 123 patents, including 54 utility model patents and 69 design patents. It has applied for 129 patents that have not yet been authorized, including 6 invention patents and 82 utility model patents., 41 design patents. The company's products have obtained high-standard certifications recognized by the industry such as CE, RoHS, and FCC.
The company benefited from the rapid growth of the e-cigarette market and maintained high growth in its performance. Total revenue: From 2014 to 2016, it was 50 million, 310 million (+528%), and 920 million (+200%) respectively. Net profit attributable to the parent company: From 2014 to 2016, it was 05 million, 50 million (+1,011%), and 190 million (+272%) respectively. Gross profit margin: 37.7%, 32.2%, and 30.4% respectively from 2014 to 2016. Net interest rate: 9.3%, 16.4%, and 20.3% respectively from 2014 to 2016.
The company's core technical personnel have rich experience and strong influence in the industry. According to the latest industrial and commercial information, Ouyang Junwei, chairman and general manager of the company, was born in 1989 and served as the marketing director of Shenzhen Siyongchuang Technology Co., Ltd. Company director Chen Wen (former chairman), born in 1986, with a bachelor's degree, served as marketing manager of Sanfu Co., Ltd. and supervisor of Shenzhen Siyongchuang Technology Co., Ltd.; Director Shen Jinwan, born in 1975, with a college degree, has successively served as an employee of the warehouse department of Shenzhen Linjian Electronic Industry Co., Ltd., an employee of the production department of Shenzhen Zhongxiexing Industrial Co., Ltd., and the director of Gongming Lanxin Hardware Products Factory in Bao 'an District, Shenzhen; Director Shen Cheng, born in 1988, has a college degree, and served as deputy manager of Shenzhen Siyongchuang Technology Co., Ltd.
On April 23, 2014, Shen Jinwan, Chen Wen, Shen Cheng, Ouyang Junwei, etc. acquired the shell company for 500,000 yuan (Shenzhen Xufeng Aluminum Technology Co., Ltd., established in 2010, its main business is the production and sales of aluminum products) 100% equity; on April 25, 2014, the shell company was renamed Shenzhen Avipus Technology Co., Ltd., its main business direction shifted to the research and development, production and sales of electronic atomizers, controllers and their parts technology; and was listed on the New Third Board in November 2015; in June 2016, 4 shares were transferred to all shareholders for every 10 shares and 6 yuan in cash; In May 2017, 18 yuan in cash was paid to all shareholders for every 10 shares increased by 23 shares; the listing was terminated in July 2017.
The company currently has 1 wholly-owned subsidiary, with 301, 554 and 402 employees at the end of 2014 - 2016. In 2016, the company strengthened internal management, sorted out and simplified work processes, improved work efficiency, and reduced the number of employees accordingly.
The company's shareholders (the data is derived from the company's 2016 annual report and is for reference only. According to the latest industrial and commercial data, the latest shareholding structure has changed)
The foreign market for e-cigarettes is in the ascendant, but the domestic market needs to be developed
E-cigarettes, also known as electronic atomizers, are similar in appearance and taste to cigarettes. They are a non-burning cigarette alternative product. E-cigarettes are composed of battery cells, microcomputer control circuits and program control, atomizer and cigarette bombs. They have similar appearance, smoke, taste and feeling to cigarettes. The main principle of the product is to provide energy through lithium batteries to atomize tobacco oil to produce smoke for use. The main role is to replace traditional cigarettes and assist in smoking cessation. E-cigarettes can refresh themselves, satisfy their cravings, and make smokers feel happy and relaxed. The biggest difference between e-cigarettes and traditional cigarettes is that they are not burned, have no toxic substances such as tar and heavy metals, and do not produce second-hand smoke.
Structure of e-cigarettes
The increasingly strong demand in Europe and the United States and domestic policy controls have made e-cigarette products present a global industrial chain pattern with the manufacturing center in China and the demand center in Europe and the United States. The upstream market of the e-cigarette industry chain mainly involves industries such as batteries, tobacco oil, heating components, and control circuits. The downstream demand market is mainly for smokers who need to quit smoking and replace traditional cigarettes. At present, most domestic e-cigarette manufacturers adopt OEM and ODM business models, that is, the manufacturers accept the entrustment of the consignor, undertake OEM production tasks, independently develop and produce e-cigarette products and product accessories, and label them with the consignor's brand trademark, without the need to directly connect with the market.
The appeal of e-cigarettes continues to increase, and there is broad space for future development
Environmental protection and health concepts are gradually popularized and the development of smoking cessation and tobacco control products is promoted. Governments and public organizations in various countries are increasingly paying attention to public environmental protection and health issues and enacting relevant laws and policies to control and ban smoking. People's health awareness will gradually increase, the tobacco consumption pattern will undergo major changes, and the market capacity of smoking cessation and tobacco control products such as e-cigarettes will further expand.# p#pagination title #e#
The e-cigarette consumer group accounts for a small proportion of total smokers, and the demand for e-cigarette products will be huge in the future. The number of smokers in China is about 350 million, and the number of smokers is 6 to 7 times that of the United States. However, the current domestic e-cigarette penetration rate is much lower than that of Europe and the United States, and the domestic market has huge room for development. The e-cigarette market is still blank in Russia, India and other countries with large smoking populations; even in mature markets such as Europe and the United States, due to insufficient market publicity, the current proportion of consumer groups in the overall proportion of smokers is still relatively small.
The value of traditional cigarettes continues to rise, and the cost performance of e-cigarettes has begun to become prominent. Affected by the vigorous tobacco control measures of various governments, the prices of traditional cigarettes continue to rise. With the advancement of technology and the advancement of large-scale production, the price of e-cigarettes is expected to become civilian. The smoking time of the e-cigarette is longer, and the e-cigarette atomizer and battery core can be reused. It can be used again only by replacing the disposable cigarette cartridge. The disposable cigarette cartridge of ordinary e-cigarettes has a lifetime equivalent to a pack of cigarettes, and its cost-effectiveness for long-term use is prominent.
Advances in e-cigarette technology have boosted product experience, attracted more consumers, and promoted e-cigarette sales. E-cigarettes are a comprehensive and strong technological product, involving materials science, electronic technology, aerodynamics, fluid mechanics, electroheating, etc. The development of basic disciplines promotes the improvement of e-cigarette technology and promotes the continuous progress of e-cigarette technology. From the original first-generation e-cigarettes to the current third-generation e-cigarettes, their safety, intelligence, taste diversity, smoking experience, etc. have been greatly improved.
Guided by customer needs and based on R & D strength, the company creates a variety of high-quality products
The company has extensively carried out research and development of new e-cigarette products and continued to launch innovative e-cigarettes. The company developed and launched its patented product dual-emitting disposable atomizer, which has led the e-cigarette market into the dual-emitting era; the independently developed and designed adjustable voltage VMAX and upgraded ZMAX series have led battery box device products to enter adjustable voltage and adjustable power era. With the continuous innovation of e-cigarette products, the company continues to launch new products and has developed more than 200 models of e-cigarette products.
Some of the company's e-cigarette products
The company focuses on customer needs, keeps a close eye on market trends, and promotes product research and development. The company pays close attention to the release and application of new technologies and new products, extensively conducts relevant information and materials, provides market information and new product trends based on product market research and analysis, organizes new product approval, and conducts research on new technology applications. Through technical research or new product project research and development, the company promotes the company's technological innovation and new technology application, and continuously develops and improves new products.
The company will incorporate more intelligent functions of e-cigarettes and plans to shift to a hardware + service model. The company's revenue and profits mainly come from sales of e-cigarette products. As R & D investment continues to increase, the company will incorporate more intelligent functions into e-cigarette products to further enhance the added value of products, and gradually shift its profit model to diversified methods such as hardware + services.
The company adopts a marketing model that combines independent + outsourcing production model, dealer distribution + online direct sales
The company independently produces e-cigarette controllers + collaborates with outsourcing to produce e-cigarette atomizers, making rational use of production capacity. The company's workshop receives materials according to orders, completes the assembly of controller products, and conducts inspection and warehousing; the warehouse dispatches materials to the outsourcing manufacturers according to the outsourcing orders. The outsourcing manufacturers process the nebulizer and other materials according to the entrustment, inspect and put them into storage. Before the company's outsourcing manufacturers start work, it fully communicates on the key quality points and key processes of product production. The outsourcing manufacturers will process the atomizer. The company supervises and inspects the production process, and tests and accepts the outsourcing products.
The company's suppliers are stable and the concentration is on the rise, ensuring the stability of raw material quality. The company's top five suppliers accounted for 46.2%, 56.1%, and 60.7% in total from 2014 to 2016. The main raw materials for the company's e-cigarette products include battery assembly materials, atomizer assembly materials and packaging raw materials. The raw materials for the production and assembly of batteries include control boards, protective plates, adapters, etc., the raw materials for the production and assembly of nebulizers include drip nozzles, large copper parts, etc., and the raw materials for packaging include cartons, cartons and other packaging products.
Purchase amount and proportion of the top five suppliers (unit: million yuan)
The company adopts a sales model that focuses on dealer distribution and combines online direct sales promotion. Dealer model: mainly aimed at major customers, relying on dealers to cover final customer groups around the world, with short supply cycles and fast capital flow. In the early days of the company, it mainly sold to overseas dealers through two major dealers, Avipos (Hong Kong) and Hong Kong Lemant; the company collected cooperation deposits from domestic dealers and authorized the sellers to sell the company's brand products in designated areas at the company's recommended retail price. Online direct sales: The company has strategic cooperation with world-renowned e-cigarette sales websites such as Jingdong, Tmall, and Amazon to enhance the consumer experience.# p#pagination title #e#
Company revenue by region (unit: million yuan)
The company's customer concentration has declined, reducing the risk of relying on major customers, which will help the company gain pricing initiative. From 2014 to 2016, the company's top five customers accounted for 98.8%, 35.3%, and 19.2% of revenue respectively.
Proportion of revenue from top five customers (unit: million yuan)
Note: IVPS Technology Co., Ltd. LIMITED) is a Hong Kong company controlled by Ouyang Junwei, a shareholder of the company and current chairman of the company. The company mainly relies on it to complete the overseas sales of e-cigarettes, forming a related transaction; on October 20, 2015, Avipus Technology Co., Ltd. was cancelled, and the corresponding business was completed by Avipus Hong Kong, a wholly-owned subsidiary of the company.
The company's products adopt a variety of pricing methods, which are priced from two perspectives: product life cycle and product positioning. The company prices according to the product type life cycle: it is divided into high price policy, discount pricing, price follow-up policy, and low price policy. Independent innovation and development of new products are put on the market. Due to their leading market and the supply exceeds demand, a high-priced strategy is adopted, and the pricing is set at 170%~200% of the cost; in the middle of product development, when the product is mature and the production capacity is stable, discount pricing is adopted, and the pricing is set at about 150% of the cost; During the mature period of product development, product competition is fierce. A price-following policy is adopted, and pricing is made with reference to similar products of competitors, and the pricing is set at 115%~130% of the cost; At the end of product development, a low-price policy is adopted, and sales pricing is based on the inventory situation, which is lower than the cost price or the cost price is cleared. The company also divides pricing according to product types and grades: independently develops high-end products, goes to the high-end market, adopts a high-price policy, and the pricing is 180% to 250% of the cost; mid-to-low-end products, follows a popular route, adopts a low-price policy, and the pricing is 120% to 160%.
The e-cigarette market performed outstandingly and its performance maintained high growth
Total revenue: From 2014 to 2016, it was 50 million, 310 million (+528%), and 920 million (+200%) respectively.
Net profit attributable to the parent company: From 2014 to 2016, it was 05 million, 50 million (+1,011%), and 190 million (+272%) respectively.
Gross profit margin: 37.7%, 32.2%, and 30.4% respectively from 2014 to 2016.
Net interest rate: 9.3%, 16.4%, and 20.3% respectively from 2014 to 2016.
The company is actively expanding, its profitability continues to increase, and its cash flow is good. The company's asset-liability ratio increased from 67.4% in 2014 to 74.0% in 2016. The level of leverage is relatively high, and the company adopts a more active expansion strategy; from the perspective of cash flow and current ratio, the company has good liquidity, from the perspective of accounts receivable turnover. From the perspective of high turnover rate, the ability to collect money is strong and income is basically reflected in cash; from the perspective of net interest rate growth rate, the company maintained rapid growth from 2015 to 2016.
