Questions and Answers on the New Vape Regulations

On November 26 China's tobacco industry ushered in a historic revision of regulations. The Regulations for the Implementation of the Tobacco Monopoly Law were revised, and new tobacco products such as e-cigarettes were implemented with reference to the relevant provisions on cigarettes.

On the landing of this long-anticipated new regulations, concerned about the development of the electronic cigarette industry friends, want to invest in electronic cigarette stocks stockholders may have some doubts, I list a few of the more important questions, attached to my answers, there are improper, please enlighten me! Welcome to exchange in the comments section, reproduced please specify the source.

Q:When the new regulations come into force, is it a negative or a positive for the e-cigarette industry?

A: After the March 22nd exposure draft, the entire e-cigarette plate all the way down, it can be said that has been fully PRICE in the shortcomings of the impact. Now, the regulation change formally introduced, the shortcomings landed. With reference to the traditional tobacco management, the new tobacco industry will collect taxes in the future. Since ancient times, the government of an industry tax, equal to recognize the legitimacy of the status of the industry. Legislation first, in favor of regulating the development of the industry, is a major positive, especially good industry leaders. Subsequent to the regulatory rules, new tobacco national standards. In short, the new tobacco industry ushered in a historic opportunity, China's tobacco industry will usher in leapfrog development.

Q:Referring to the traditional tobacco management, levying a high tax affects demand?

A: Traditional tobacco is taxed at 50-60% and it doesn't stop the tobacco industry from making huge profits. After the new tobacco to obtain the status of legality, the industry penetration will grow by leaps and bounds. Imagine, tobacco overall profit profit trillion, e-cigarette penetration rate assumed 5%, divided into 50 billion in profit, enough to support several hundred billion enterprises, if the penetration rate further increase, the emergence of trillion market value of the enterprise is not surprising. Therefore, corporate income, profits are more than ten times or even hundreds of times increased.

Q:The new regulations fall on November 10,which is exactly the time that Huabao started,Will the latent disk crash?

A: The drop time is the leadership signing time, and the announcement time is not necessarily the same. Trading on inside information is the usual style of A-share. Even if there are prescient funds to take the lead, it does not necessarily smash the disk. Tobacco industry profits trillion level, the process of increasing penetration, will continue to give birth to hundreds of billions of market value or even trillion market value of the enterprise, as long as it is not a short-sighted investor, can see the future of the industry's huge growth space, to grasp the opportunity to invest in the development of the times.

Q:Regulations favorable to HNB,Positive atomization?

A: the entire new tobacco industry is a huge positive, atomized e-cigarettes is the highest degree of marketization of the line, the General Administration of Tobacco 25 meeting emphasized the need to give full play to the enthusiasm of the market players, the implementation of new forms of new industries and new technologies to implement prudent supervision. It can be seen, atomized electronic cigarettes will not be suppressed and restrictions. HNB is the most layout of the tobacco system line, the current domestic sales are not allowed, only exports, the introduction of the regulations led to the liberalization of the domestic sales of HNB is expected. However, there is no question of China Tobacco suppressing atomized e-cigarettes in order to develop HNB. Because, whether atomized or HNB is a new type of tobacco, the relationship between the two is not one and the other, similar to the relationship between Coca-Cola and Pepsi, will be collected according to the law of tobacco tax, are beneficial to the country, just a different route, will receive the regulation and encourage the development of the law.

Q:Based on the new regulations,e-cigarette sales need to obtain a license,the Is it a negative for brands like Yuekue?

A: favorable to the leading companies, will give the leading companies issued licenses. On the one hand, if the regulatory layer from the beginning does not want private brand owners to obtain a license, then the industry consultation meeting held in Shenzhen in mid-November, there is no need to invite a host of brand owners to participate. On the other hand, a leading company obtaining a license could have a demonstrative effect on stabilizing the industry. Personal speculation, may be issued to the brand license, stores based on the brand's license to apply for permission to operate. #p#Page title #e#

Q:E-cigarettes are hazardous to health, and will they be subjected to tougher regulation and suppression?

A: Accusations and smears against e-cigarettes have been common in recent years. It is a truth that smoking is bad for your health. Traditional tobacco causes many diseases and places a heavy burden on the health care system. New tobacco through new technology and new raw materials to reduce the harm caused by smoking, the real harm reduction effect. The key core is nicotine. Whether it is HNB or atomized e-cigarettes, the raw material nicotine needs to be added, either with nicotine extracted from tobacco leaves or with synthetic nicotine. People smoke because of the pleasurable sensation produced by nicotine, but they get sick because of the tar and other substances produced by burning tobacco. If you use natural synthetic nicotine, you can exclude the tar and other harmful substances to achieve real harm reduction.

Q:What will happen to the A-share e-cigarette sector on Monday?

A: E-cigarette plate stimulated by the news, has recently been rising in the divergence, which is a reflection of the community's understanding of e-cigarettes there are still huge differences. With the introduction of new regulations, the future of the national standard, social awareness of the e-cigarette industry will be improved, and gradually from disagreement to consensus. The price trend, leave it to the market.

Q:Which e-cigarette markers are favorable?

A: It is good for all e-cigarette companies. Because of the huge space for development, from the industry's profit margin, second to the new energy industry. It doesn't matter if it's good or bad, it's just a matter of running fast and running slow. Favorable in the industry chain has a monopolistic position and market share of the leading enterprises.