IQOS Supplier Intretech: Core E-Cigarette Components Have Entered Mass Production, Not Involved in D

Yingqu Technology responded to two investor inquiries on July 18 via an investor interaction platform, both related to e-cigarette production and device project progress, including:
Q: Have the core components of e-cigarettes entered mass production? What is the progress of the device?
A: Hello. The core components of e-cigarettes have entered mass production, but the device products have not yet entered mass production. Thank you.

Q: Does your company involve disposable e-cigarette products?
A: Hello, the company mainly provides research and development and manufacturing of heat-not-burn electronic products. Thank you.
Regarding the progress of e-cigarette core components and device products, Yingqu Technology stated during an investor survey in May this year that the e-cigarette business performed well in 2022; the company secured the device project from e-cigarette clients in 2022, achieving full industry chain vertical integration from development design to precision plastic components to core components to device assembly, with mass production of the device project expected in Q3 2023.
When asked, "Is this device a 4th generation device? Does the company have any differentiated focus in product iteration compared to other suppliers like Venture?" Yingqu Technology clearly stated: "The e-cigarette device expected to enter mass production this third quarter belongs to the 4th generation product."
Previously, Ge Wu Consumer mentioned in a post titled "Philip Morris International's Supply Chain 'Circle of Friends'" that Yingqu Technology was established in May 2011 and has 43 wholly-owned or controlled subsidiaries both domestically and abroad, and has established partnerships with companies such as Logitech, Nestlé, PMI, WIK, Venture, 3Dconnexion, and Asetek.
In terms of cooperation with PMI, Yingqu Technology began supplying the IQOS device to the contract manufacturer Venture in 2014, which assembles its products with other components; subsequently, Yingqu Technology's plastic parts began supplying another IQOS contract manufacturer, Flex (Flextronics). According to Yingqu Technology's 2022 annual report, due to a 10% increase in revenue from PMI's new tobacco products in 2022, the company's revenue from precision components for e-cigarettes also grew.
Further Reading:
Public information shows that there are multiple suppliers for IQOS in China. Besides Yingqu Technology, which supplies injection-molded parts, there is also Fengjiang Battery, which supplies lithium batteries as a secondary supplier to IQOS, providing "FULLRIVER" brand batteries to IQOS's contract manufacturer Flex. The major customer situation in Fengjiang Battery's 2022 annual report shows that "Flex Mechanical Marketing (Malaysia) Ltd." is its largest customer, accounting for 49.51% of annual sales.
The supplier of precision metal structural parts is Kosen Technology, which has expanded its cooperation with PMI from interior parts to exterior structural parts, and its subsidiary Teliang also provides surface treatment services for PMI. The supplier of PCB boards is Dongshan Precision, which acquired the world's fifth-largest FPC manufacturer MFLEX and Flex's PCB subsidiary Multek in 2016 and 2018, respectively, entering and expanding its PCB business.
It is worth noting that not only is Yingqu Technology moving from core component production to device projects, but many other suppliers are also enhancing their supply chain participation, such as Dongshan Precision, which has also entered the research and development of HNB chips beyond supplying PCB boards.