Weekly Highlights from the Global Vaping Industry (Issue 102)

1. Shenzhen Bao'an Rewards E-Cigarette Companies for Outstanding Contributions in the First Half of the Year<\/strong><\/p>

On August 24, the Bao'an District Bureau of Industry and Information Technology in Shenzhen issued a notice regarding the application for contribution rewards for the first half of 2023. The notice states that the bureau is now conducting the application process for contribution rewards for the first half of 2023.<\/p>

The application criteria are: companies must be large-scale industrial enterprises legally operating in Bao'an District; e-cigarette companies that have obtained a tobacco monopoly production license and are among the top 20 in terms of value-added contribution in the first half of 2023.<\/p>

2. China’s E-Cigarette Exports Reach 6.639 Billion Yuan in July<\/strong><\/p>

Trade data for e-cigarette exports in July 2023 has been released. According to the General Administration of Customs, the export value of e-cigarette products (including e-cigarettes and similar personal vaporization devices, as well as other nicotine-containing non-combustible products) in July was 6.639 billion yuan (approximately $1 billion), a year-on-year increase of 14.81% and a month-on-month increase of 0.97%.<\/p>

3. Hohhot Police Successfully Dismantle Cross-Province E-Cigarette Trafficking Chain<\/strong><\/p>

Recently, the Ecological Environment and Food Drug Crime Investigation Team of the Yuquan District Branch of Hohhot Police successfully dismantled a major cross-province e-cigarette trafficking chain and seized three illegal e-cigarette production sites. Hohhot police sent work teams to Shenzhen, Dongguan, Shantou, and other places for long-term investigations and evidence collection over more than five months.<\/p>

On the afternoon of August 22, five arrest teams from Shenzhen and Hohhot coordinated to successfully apprehend six suspects, dismantle three illegal e-cigarette production sites, and seize two e-cigarette production machines and over 10,000 pieces of semi-finished e-liquid, as well as over 40,000 e-cigarettes, valued at over 5 million yuan.<\/p>

4. Smoore Releases 2023 First Half Financial Report: Overseas Revenue Exceeds 90%<\/strong><\/p>

On August 21, Smoore International released its performance report for the first half of 2023. The report shows that the company’s revenue for the first half of the year was 5.123 billion yuan, a 9.4% decline compared to last year, but the adjusted net profit was 758 million yuan, demonstrating the company’s robust operational strength.<\/p>

5. FDA Issues Warning Letters to 15 Online E-Cigarette Retailers<\/strong><\/p>

On August 23, the U.S. Food and Drug Administration (FDA) issued warning letters to 15 online retailers, cautioning them against selling and distributing unauthorized e-cigarette products, which were packaged to resemble cartoon toys, stationery, and beverages appealing to young people.<\/p>

Dr. Brian King, director of the FDA's Center for Tobacco Products, stated that the design of these products is shameless and shocking, attempting to target children. The 15 retailers have 15 business days to respond, take corrective actions, and prevent future violations, or the FDA may take further actions such as bans, seizures, and/or civil fines.<\/p>

6. U.S. E-Cigarette Manufacturer Juul Labs to Lay Off 30% of Workforce<\/strong><\/p>

According to Reuters, the second-largest e-cigarette manufacturer in the U.S., JUUL<\/strong> Labs, plans to lay off 30%, reducing its workforce by about 250 employees to around 650, which will save $225 million in operating costs.<\/p>

Last month, Juul submitted a PMTA authorization application for a next-generation e-cigarette to the FDA. Juul is currently awaiting the FDA's final decision on whether its products can continue to be sold in the U.S. market.<\/p>

7. Altria Requests U.S. Ban on Import and Sale of Juul Products<\/strong><\/p>

Altria Group's e-cigarette brand Njoy has requested the U.S. International Trade Commission (ITC) to ban the import and sale of Juul products, including its currently sold e-cigarette devices and pods<\/strong>, on the grounds of patent infringement.<\/p>

Njoy mentioned in the lawsuit that Juul has engaged in trade violations related to the sale of imported products that infringe U.S. Patent No. 11,497,864 and U.S. Patent No. 10,334,881.<\/p>