Zhongxiang Flavors COO Zhang Ziheng: the electronic atomization industry is a new revolutionary sect

Since the rise of the electronic cigarette vapor era in China in 2017, Mr. Zhang has been a supporter of well-known European and American e-cigarette brands such as Fengpai Hongbing (AVANT GARDE LIQUID), Aolou (VAPING OUTLAWS), and Million Red River (VERMILLON RIVER). As a familiar figure in the e-cigarette industry, he has shone brightly from a well-known partner to COO of Zhongxiang Flavors. Today, we bring you Mr. Zhang's recorded sharing to give everyone a deeper understanding of the Zhongxiang family.

The industry says that 2020 was a milestone for the electronic vaporization industry. How do you view this?

"Yes, after the tumultuous growth and elimination of many players in 2019, the industry entered a period of calm and objective growth in 2020. During this time, the industry reflected on previous issues and shortcomings, rethinking product and market positioning, as well as the industry's responsibility to society. This period of calm not only allowed us to think deeply but also standardized the industry, eliminating a batch of companies looking to make quick money, serving as a self-purification for the electronic vaporization industry.

If 2020 was a period of adjustment for the industry to undergo transformation, then 2021 is set to emerge as a butterfly. Many industry brands have gone public, representing the transition of the e-cigarette industry from naivety to maturity. Zhongxiang Flavors is a one-stop solution provider and manufacturer of e-liquid under the Borton Group, and we have also experienced such storms and pains, which has made us more determined and confident."

Zhongxiang Flavors is a one-stop solution provider and manufacturer of e-liquid under the Borton Group, but it is still not well known to the outside world. Can you introduce it?

"Indeed, Zhongxiang Flavors mainly serves as an upstream supplier, focusing on B2B business, so the public does not know much about us. Established in 2007 and officially launched in 2019, we focus on the e-liquid field. In 2019, relying on the technological strength and strong capital of Borton Group, the first Hong Kong-listed company in the flavor and fragrance industry, we officially started the research and production of e-liquid. In the past two years, Zhongxiang Flavors has carried out international PCT + domestic patents and industry-university-research cooperation, developing rapidly and reaping substantial rewards. The brands we have collaborated with have praised us, and we believe 2021 will break new records!"

The synthetic nicotine recently released by Zhongxiang has garnered a lot of attention.

"Yes, synthetic nicotine is one of Zhongxiang's latest research directions. On one hand, we are seeking new growth points and markets; on the other hand, as regulations in various countries become stricter, especially regarding tobacco products, the use of natural nicotine in e-cigarettes is increasingly restricted. Synthetic nicotine does not involve tobacco products, so it currently has no similar restrictions. If synthetic nicotine can indeed become a standard that distinguishes e-cigarettes from traditional tobacco, it would be a remarkable achievement. Although we cannot control policy changes, there are several things we can do: continuously optimize the production process of synthetic nicotine, ensure quality while improving mass production capacity, and continuously develop new technologies to reduce production costs. If synthetic nicotine can be popularized regardless of policy impacts, it would be a revolutionary step, and we can see its potential behind it."

What unique aspects does Zhongxiang have in the e-cigarette industry?

"Borton Group encompasses four core sectors: flavor and fragrance industry, biotechnology, electronic consumer products, and property management, making it a large modern enterprise group. As one of the world's four largest flavor and fragrance suppliers, we have financial and human resources, and we have provided flavors and fragrances to the tobacco industry for over 30 years. Zhongxiang has a strong flavoring system. With numerous market brands, consumers are increasingly focused on taste and the smoking experience, and Zhongxiang's R&D technology and strength are showcased here.

Borton has a natural raw material sharing platform, a high-tech platform, and world-leading manufacturing bases. We have our own flavor and fragrance industry chain and global procurement supply chain, with core raw materials developed independently, and core formula technology is controllable, achieving effective monitoring of the entire process from raw materials to semi-finished products to finished products. Zhongxiang's original research and development ensure high quality. Controlling raw materials is like a chef; both the freshness of the ingredients and the chef's skills are indispensable. Conversely, if the ingredients are not fresh or the skills are lacking, the food produced will not be delicious."

2020 marked the 30th anniversary of Borton Group, which is known in the industry as the 'Huangpu Military Academy of the e-cigarette world.' I believe the flavor and fragrance technology is also exquisite.

"Yes. Many well-known brands in the industry have collaborated with Borton, and many key personnel also come from Borton. Over the past 30 years, Borton has cultivated many top talents in the industry. As a Borton person, I feel quite proud. Zhongxiang is based on Borton's nearly 30 years of strong flavor and fragrance technology accumulation and globally leading e-liquid R&D technology. Our products have passed various authoritative certifications and tests, ensuring quality and safety comprehensively. We provide the safest and best e-liquids for global consumers, enriching their lives with flavor. A company that considers consumers thoughtfully has great appeal.

Borton Group is the first in China's flavor and fragrance industry to have a CNAS-accredited first-party testing laboratory. The entire analysis and testing center covers an area of 1,600 square meters and cost hundreds of millions, possessing nationally and internationally recognized quality management levels and technical testing capabilities. The testing reports issued by the laboratory within the scope of its accreditation will be recognized by over 100 countries and regions that have signed ILAC-MRA mutual recognition agreements with CNAS. With such good conditions at Borton Group, Zhongxiang will certainly do its utmost."

What are your expectations for 2021?

"The new year is just around the corner, so let me wish everyone a Happy New Year! May 2021 be prosperous and bring great changes. Zhongxiang has made ample preparations and has been providing healthy and enjoyable e-liquids for customers and the industry. May we continue to improve. 'Fragrance' accompanies you, and we will not disappoint your expectations!"