Jincheng Pharmaceutical: License amended, now permitted to export nicotine for e-cigarettes

Jincheng Pharmaceutical announced on July 16 that its wholly owned subsidiary, Shandong Jincheng Pharmaceutical Chemical Co., Ltd., recently received a Tobacco Monopoly Production Enterprise License (nicotine for e-cigarettes) issued by the State Tobacco Monopoly Administration. This newly issued Tobacco Monopoly Production Enterprise License includes changes to certain items in the original license. The new Tobacco Monopoly Production Enterprise License obtained by Jincheng Pharmaceutical Chemical modifies the production scale, permitted business scope, and validity period approved under the original certificate. The company is now permitted to legally engage in domestic sales and export of nicotine for e-cigarettes. Its production scale must not exceed the figures approved by the State Tobacco Monopoly Administration, and the validity period has been extended to June 30, 2025.

The acquisition of this Tobacco Monopoly Production Enterprise License is expected to have a positive impact on the company’s performance. On the one hand, it allows the company to expand production based on the newly approved production scale set by the State Tobacco Monopoly Administration. On the other hand, it enables the company to legally carry out export business for nicotine used in e-cigarettes and expand into overseas markets. The announcement also noted that there is still some uncertainty as to whether the additional production capacity applied for by the company will be approved by the State Tobacco Monopoly Administration. The company will promptly disclose specific developments after the transaction management platform is updated.