On October 29th, an investor asked Shunho Corporation (002565) on an interactive platform about the company's technological reserves in the new tobacco direction. The investor noted that the actual annual revenue in this area is very small compared to expectations, and asked about the company's further planning in the new tobacco direction and how they plan to expand and strengthen related businesses. The investor also inquired about the current operating situation of Green E-Cigarette Technology, a joint venture between Shunho Corporation and Dongfeng Group, and whether there is potential for further collaboration. The investor raised the possibility of merging the two Hong Kong-listed companies involved in tobacco packaging and asked about Shunho Corporation's views and expectations on mergers and restructuring.
In response, Shunho Corporation stated:
The company is expanding its business in the new tobacco product sector through wholly-owned, controlling, and equity-participating companies, forming an industrial system. Currently, the company's controlling subsidiary Shenzhen Green Fresh has obtained the "Tobacco Monopoly Production Enterprise License" for e-cigarette OEM enterprises, while the equity-participating subsidiary Meizhonglian has obtained the "Tobacco Monopoly Production Enterprise License" for e-cigarette product manufacturers, and the company's wholly-owned subsidiary Shunho Yilong has obtained the "Tobacco Monopoly Production Enterprise License" for e-cigarette brand holders for domestic sales. Its "Yilong" brand e-cigarettes have successfully entered some retail stores in Beijing, Shenzhen, and Shanghai. The acquisition of the relevant licenses has further promoted the company's compliance layout in the new tobacco industry. In the future, the company will focus its efforts domestically, promoting the listing and sales of its e-cigarette brand "Yilong," actively seeking and strengthening cooperation opportunities with China Tobacco customers. On the other hand, it will also vigorously promote overseas processing and export business, establish a sound overseas sales network, and continuously explore overseas development and operation models.
The company currently holds a 60% stake in Shanghai Lvxin Electronic Technology Co., Ltd., with the remaining 40% owned by Guangdong Dongfeng New Materials Group Co., Ltd. The company is actively engaged in research and development, production, and branding of new tobacco products domestically and internationally. The company's controlling subsidiary, Shanghai Lvxin, serves as the main entity and platform for the implementation of new tobacco product-related businesses. Currently, Shanghai Lvxin Electronic is operating normally, and specific data related to its operations and strategic planning can be found in the company's relevant periodic reports.
The company pays close attention to the relevant policies issued by the government and actively monitors and studies the trends of these policies. The company always prioritizes the protection of the legitimate rights and interests of all shareholders, upholding an attitude of open cooperation for mutual benefit. In the future, the company will make strategic plans and layouts based on actual situations, industry characteristics, and market demands, continuously monitoring market opportunities and promoting high-quality development through appropriate capital operations. In the event of major events such as mergers and reorganizations, the company will fulfill its disclosure obligations in a timely manner in accordance with relevant regulations.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
