License renewals in July too? First batch of e-cigarette renewal approvals is out, with around 20 co

License renewals have become a hot topic recently.

Compared to last year's tension, some individuals are now expressing joy at being able to "strive for another two years."

Today, I saw news that the largest e-liquid manufacturers and leading OEM companies have announced successful license renewals, namely Hongfu Bio and Xingke Electronics. Hongfu Bio is currently a leading e-cigarette e-liquid manufacturer in Shenzhen, while Xingke Electronics is a top OEM. Xingke Electronics is a subsidiary acquired by Jinlong Electromechanical for 1.1 billion, and it handles most of Jinlong Technology's orders, supplying current leading disposable brand manufacturers. Last year, Jinlong Electromechanical signed contracts for electronic atomizers worth 870 million yuan, all of which were produced by Xingke Electronics. The license acquisition date last year was from July 11, 2022, to July 31, 2023, indicating that the first company has successfully renewed its license in July. This means that companies whose licenses expire in July have also seen their first successful renewal today.

(The validity period for the license obtained by this company last year)

This year, some news indicates that disposable products are surging globally, and the performance of some brands may continue to explode, which means that factory orders will also be significant. Surveys show that there are currently several companies in China capable of producing and selling 20 million units per month. Similarly, this year's global penetration rate for disposable products shows that many countries and regions are using disposables, with the U.S. at over 60%, the U.K. at 70%-80%, France/Germany around 50%, and the Middle East and Eastern Europe gradually becoming popular, while Southeast Asia is at 20%-30%, and Africa is expected to see high growth. All of this indicates that e-cigarettes are entering a fast-moving consumer era globally, and any company that captures the first wave will benefit from the growth period.

#01

Which companies have renewed their licenses in the first batch?

I specifically investigated the industry and found that 18 companies have successfully renewed their licenses. Below is the list; if any are missing, manufacturers are welcome to leave a message to inform this account.

(Temporary statistics list; if not counted, please submit to this account)

It is noteworthy that this time, major e-liquid manufacturers like Hongfu Bio have passed, as well as large order factories like Dongguan Xingke Electronics.

For example, Hongfu Bio, established in 2018, is one of the four major e-liquid giants in Shenzhen and also owns two proprietary brands, eULIQ and USALT. They frequently participate in international e-cigarette exhibitions overseas. They have in-depth cooperation with the largest brand IQOS.

In April this year, Hongfu Bio also officially signed a cooperation agreement for the LEAN MES project with Shenkete, focusing on digitalization and improving production quality.

(The author visited this company this year)

Additionally, Huajia Bio is also a leading company with high e-liquid production capacity and rapid growth, and it has announced its license renewal.

Bodun has also announced its renewal, with its Shenzhen company successfully renewing its license, mainly for domestic sales and export permits for atomization products.

(Successful license renewal)

This renewal mainly focuses on companies related to nicotine and atomization products, with fewer brand manufacturers renewing their licenses, and relatively few producers as well. This is related to the categories of companies that obtained licenses in the first batch last year.

From the list, companies like Huajia Bio, Yiguangnian Technology (VCAN), Benwu Technology, Rundou Pharmaceutical (Jingmen), Shenzhen Fanhua Life Sciences, Shenzhen Hengyun Biotechnology, Shandong Jincheng Pharmaceutical and Chemical, Hubei Heno Bio, Changning Dekang Bio Technology, Shenzhen Ruixiangyuan Bio, Dongguan Hongfu Bio, Shenzhen Weika Technology, Dongguan Haohong Electronics, Shenghai Electronics, Dongguan Xingke Electronics, Huizhou Xinhongwei Technology, and others have successfully renewed their licenses. Among them, Changning Dekang has obtained licenses for both nicotine and atomization products, and some nicotine companies have particularly increased their export permits, which brings expectations for overseas business expansion.

Many companies that have not yet renewed their licenses are paying attention to the difficulty of the renewal process. However, industry insiders indicate that as long as there are no violations, renewal is generally possible. As a concentration of global #p# pagination title #e# e-cigarette companies, Baoan has recently been promoting the renewal process for August.

Some individuals have also stated that in addition to production companies, licensed trading brand holding companies that obtain three-system certifications (referring to ISO9000 quality management system, ISO14000 environmental management system, OHSAS18000 occupational safety and health management system) are very important for subsequent renewals, as they need to obtain quality and safety-related qualifications.

Additionally, Shenzhen has recently strengthened training for export registration of e-cigarette trading platforms. At the same time, recent export quality guidelines have been issued, which will further standardize the development of overseas markets.

(Shenzhen has also recently strengthened export registration training)

#02

Will August be the main month for license renewals in Shenzhen?

I specifically researched the market and found that 80% of factories will concentrate on license renewals from August to October. During the survey, when asked, "Which month does your company belong to for license renewal?" over 70% indicated that the renewal period will be from July to October. Among them, 20% are after October, while August to October will be particularly concentrated, exceeding 30%.

(Survey data from this account)

The proportion of licenses obtained in June was only 5%.

According to the survey, last June, only over 30 companies obtained licenses, while the total number of companies that obtained licenses was over 600, making the proportion about 5%. It is currently unclear whether all of the more than 30 companies that obtained licenses last June have successfully renewed their licenses.

However, I learned from a factory that successfully renewed its license, Huizhou Xinhongwei Technology, that they stated, "This time, the renewal process is relatively simple, with not much documentation required. As long as there are no violations, renewal can basically be achieved."

From the list of companies that successfully obtained licenses last August, there were important companies such as Mikweier, BYD, Bodi, Klaipeng, Yuzu, Mirui, Hanqingda, Yunpu Xinghe (Jinjia), VTV, Shangze Bio, Qizheng Industrial, etc. At that time, 200 companies obtained licenses in August alone, and many leading companies emerged.

Regardless, the first batch of companies that obtained license renewals is also a symbol of strength, representing the ability to compete in the compliant market with licenses for overseas expansion, and will be important participants in the globalization process.

Coincidentally, at this time, many companies in Shenzhen and Dongguan will obtain licenses, marking a highlight moment for concentrated license renewals.

At this time, a new round of the market has arrived, and it is time to show "muscle" again, as more companies need to go out. Recently, I have learned from some manufacturers and brands that especially in September, more companies will go overseas for customer acquisition in the second half of the year, even for ground promotion. These regions include Europe, Germany, Poland, Russia, as well as some markets in the Middle East and Indonesia.