Xiaoqingxu Fully Acquired by Songwu Technology, Is Songsong Co. Positioning for a Domestic Brand?

Recently, Ge Wu Consumption observed that Shenzhen Huoyan High-Tech Co., Ltd., a licensed e-cigarette company, has undergone a change in equity. According to Tianyancha information, its previous shareholders Zhang Li, Ni Xing, Yang Hongjun, Shanghai Zhongshan Small Enterprise Management Partnership (Limited Partnership), and Shanghai Zhonglixin Enterprise Management Partnership (Limited Partnership) have all withdrawn their shares in August.

At the same time, Gan Jingqiang has been appointed as the executive director and general manager, and Yu Dezhi as the supervisor. Currently, Shenzhen Huoyan High-Tech Co., Ltd. has become a wholly-owned subsidiary of Shenzhen Songwu Technology Co., Ltd. Meanwhile, Huzhou Jinqian Equity Investment Partnership (Limited Partnership) holds 99% of its shares, while Guangdong Xiaosong Technology Co., Ltd. holds 48% of the former, as shown in the image below:

Relevant information shows that Guangdong Xiaosong Technology Co., Ltd. is a listed company on the A-share market (Xiaosong Co., Ltd. 002723). According to information mentioned in Xiaosong Co., Ltd.'s public Q&A, "The company fully leverages its business advantages and utilizes the platform of the listed company for endogenous and exogenous layout, constructing a full industrial chain layout for the e-cigarette business in terms of nicotine for e-cigarettes, atomization materials, heating wires for e-cigarettes, production/processing, and brand ownership."

Ge Wu has sorted through public information and learned that Xiaosong Co., Ltd. has obtained the "Tobacco Monopoly Production Enterprise License" (e-cigarette processing enterprise); in 2021 and 2022, it successively invested in Bode Technology and the nicotine production enterprise Ganghua Bio. In the first half of 2023, it invested in the atomization material production enterprise Zhenghe Bio through the industrial fund it participated in. Currently, it has launched multiple e-cigarette products overseas.

On the other hand, Shenzhen Huoyan High-Tech Co., Ltd. is also a licensed e-cigarette company. It has been approved to sell the e-cigarette brand "Xiaoqingxu" in the domestic market, as well as the overseas e-cigarette brand xfeel. Industry insiders have revealed that its domestic brand "Xiaoqingxu" has been listed on the unified trading management platform for e-cigarettes in multiple provinces.

Regarding this event, Ge Wu attempted to verify with relevant personnel, but the other party declined to comment, stating that everything is subject to the official announcement. However, based on the current information regarding the equity changes mentioned above, if the transaction between Huoyan High-Tech and Songwu Technology is completed, it may signify that Xiaosong Co., Ltd.'s e-cigarette industry layout will further add this important piece of the domestic brand puzzle.