Weike Technology: E-cigarette business accounts for 4%, with limited impact from FDA warning list

On July 26, Weike Technology (301196) issued multiple replies on an investor interaction platform, including the following:

Q: Hello, Board Secretary. Recently, several Chinese e-cigarette companies were placed on the U.S. FDA import alert list. Will this have any related impact on the company?

A: Weike Technology: Dear investor, hello! The company’s e-cigarette business accounts for a relatively small share, and the U.S. FDA’s e-cigarette import alert list has limited impact on the company. Thank you for your attention.
Q: How are the company’s sales of e-cigarette-related products, and what percentage of total revenue do they account for? Disposable e-cigarettes have been very popular recently. Will this have a positive effect on the company’s performance?
A: Weike Technology: Dear investor, hello! The company’s e-cigarette business accounts for only about 4%, which is a relatively small share. In addition, the e-cigarette products involved in the company’s business are not disposable e-cigarettes, so the popularity of disposable e-cigarettes does not affect the company’s performance. Thank you for your attention.
Q: Does the company have any plans in the disposable e-cigarette segment?
A: Weike Technology: Dear investor, hello! At present, the company mainly provides customers with mouthpieces, housings, and lighter accessories for heat-not-burn e-cigarettes. These are not disposable e-cigarette products. Thank you for your attention.

In a previous article, “A Further Look at PMI’s Supply Chain Network: ‘Prosperity Spreads,’ with Expanding Coverage,” GeWu Consumer reviewed IQOS domestic suppliers and mentioned the following:

Xiamen Weike Molding Technology Co., Ltd. was established in 2005 and is mainly engaged in the R&D, design, manufacturing, and sales of precision injection molds, providing product solutions and end products directly or indirectly to Fortune Global 500 clients.

According to Weike Technology’s prospectus, the main customer for its e-cigarette accessories is Yingqu Technology. From 2018 to 2020 and from January to June 2021, Yingqu Technology was one of Weike Technology’s top five customers. Yingqu Technology is the IQOS injection-molded parts supplier mentioned by GeWu Consumer in “PMI’s Supply Chain Network” — in a sense, Weike Technology entered the IQOS supply chain through Yingqu Technology.