IQOS component supplier Mindea: Deepening expertise in heated tobacco to raise market share and sale

On July 25, Mindea [301268] replied to investor questions on the investor interaction platform. The original response is as follows:

Q: Could you briefly introduce the company’s business related to vaping products?

A: Hello. At present, the company mainly supplies structural components for heat-not-burn tobacco device holders to Philip Morris, the world’s largest tobacco group. Mass production for this project began in the second half of 2019. Strictly speaking, it does not fall under the category of e-cigarettes. In addition to Philip Morris, the company is also continuing discussions with other global tobacco giants regarding potential cooperation. The company hopes to continue deepening its presence in the heat-not-burn tobacco industry, increase its market share, and improve sales performance. Thank you.

In our previous GeWu Consumer article, “A Further Look at PMI’s Supply Chain ‘Circle of Friends’: ‘Those Who Prosper First Help Those Who Prosper Later,’ with Ever-Widening Coverage,” we also reviewed Mindea’s role as a Philip Morris International supplier:

Founded in 2004, Mindea is engaged in the design, R&D, production, and sales of precision structural components and molds. Headquartered in Nanshan District, Shenzhen, the company was listed on the ChiNext board of the Shenzhen Stock Exchange in 2022. Its prospectus disclosed that its structural components for vaping device heating units are used in IQOS products, with the main products sold being heating unit structural components for IQOS 2.4 and IQOS 3.0.

In a June 2022 reply to investors, Mindea mentioned that its consumer products mainly include magnesium alloy structural components for heat-not-burn tobacco device holders, among which the magnesium alloy structural components for IQOS holders account for the largest share of its consumer product business. Based on its disclosed information, Mindea’s products account for roughly 30% to 60% of PMI’s supply share for similar structural components.

Mindea is a tier-two supplier for IQOS, providing structural components for vaping device heating units to IQOS’s two major contract manufacturers, Flex and Venture. Flex and Venture are Mindea’s third- and fifth-largest customers, respectively.