Yinghe Technology’s Vaping Business Generated Over RMB 1.4 Billion in H1 2023, Up 1477% Year-on-Year

On August 25, Yinghe Technology (300457) released its semi-annual report for 2023, showing that the company's electronic cigarette business achieved operating revenue of 1.433 billion RMB, a year-on-year increase of 1477%.

Yinghe Technology is the first listed company in the lithium battery equipment industry, possessing strong technical strength, manufacturing capability, and service ability. It is one of the few companies globally that can provide complete line solutions for lithium battery digital factories.

The electronic cigarette business of Yinghe Technology is mainly operated by its 51%-owned subsidiary Sikole.

Shenzhen Sikole Technology Co., Ltd. was established in 2013 and is a high-tech enterprise integrating independent research and development, sales, and production of electronic cigarettes. Its “SKE” brand has been exported to domestic and international markets in Europe and Southeast Asia, and it has now launched the new “Sikary” series.

Sikole's core technologies have independent intellectual property rights and are fully applied in three major fields: CBD, HNB, and applicable e-liquids. It has also passed multiple international certifications such as CE, ROHS, and FCC, providing ODM/OEM technical support services for electronic atomization equipment products to customers in over 200 countries and regions, with a distribution network covering more than 30 countries and regions worldwide.

Sikole has established a standard GMP dust-free workshop manufacturing center, meeting a million-level production capacity while providing higher quality.

It is reported that Sikole is currently in a rapid growth phase, with the explosive growth in the first half of the year attributed to the rapid expansion of its business in the UK. From its past performance, the growth rate has also been impressive. Last year, Yinghe Technology's electronic cigarette business achieved revenue of 546 million RMB, a year-on-year increase of 222.8%.

During the reporting period, to further seize opportunities in the European market and quickly respond to customer service needs, the company's board of directors has approved the establishment of a wholly-owned subsidiary in the UK.

With advantages in products, technology, and channel resources, Sikole has made breakthrough developments in market expansion in the UK, Germany, and other European countries this year.

Sikole is actively promoting the planning of new office and production sites to further enhance the market competitiveness and delivery capability of its electronic cigarette business.

Sikole has established a subsidiary in the UK, gradually achieving the goal of “based in the UK, radiating to Europe,” enabling it to quickly respond to pre-sales and after-sales service needs of electronic cigarette business customers.

Source: Compiled from Yinghe Technology's annual report, Sikole's official website, and others.