Electronic cigarettes are about to levy consumption taxes more than half a month in the second half of the aftermath, two things happened in the domestic e -cigarette brand.

The first one is at the end of October, the fog core technology (the parent company) in the annual environment, social and governance (ESG) score of the tobacco industry is ranked first in the global electronic tobacco company. Evaluation (CSA) was announced; the second was to release its third quarter financial report.

The former is a pavement of the latter. "(S & P) This assessment result reflects the recognition of the capital market for the company's performance of social responsibility and practicing sustainable development." In the third quarter financial report, Wang Ying, CEO of Wuscin Technology, said.

ESG is defined as one of the company's core advantages in the financial report by the fog core technology management. As the industry supervision is frequent, Wang Ying and management hopes to use such long -term indicators to boost the market's confidence in the company.

The financial report shows that the net revenue in the third quarter of 2022 was RMB 1.04 billion ($ 150 million), a year -on -year decrease of 37.7%. Under non -American GAAP, the net profit was adjusted in the third quarter to RMB 330 million (US $ 46.2 million), a year -on -year decrease of 27.4%.

However, investors are more concerned about the performance trend after the third quarter, and whether the company will have the actual measures to repurchase stocks. At the financial report, this part of the content was brought by Lu Chao, CFO of Wuxin Technology: "In the third quarter, the company's net revenue declined, which was mainly affected by the gradual suspension of old products. We believe that with the national standard product portfolio Continuously enrich, sales revenue will gradually resume. In the third quarter, the company continued to optimize various costs. The operating expenses under non -US General Accounting Guidelines decreased by 30.9%from the previous quarter. In view of November The impact of profitability, continuous cost reduction and efficiency will still be one of the company's strategic focus. "

The news of early electronic cigarettes and consumption tax was regarded by the outside world as the last busy in this industry. Therefore, many investors believe that the carving will copy the drama of Ruixing's "return of the king". Coincidentally, Wang Ying has recently launched a "wake -up" brand in the test of the water coffee industry.

However, unlike the coffee industry, after the implementation of multiple new regulations, factors such as advertising and limited production capacity have determined that it is difficult for the electronic cigarette industry to achieve leapfrog development. The new regulations have higher the entry threshold of the electronic cigarette industry, but it has also defined a ceiling for a long time in the future. The previous huge profits and high growth may be permanently drawn.

Those who fell into the altar with the industry's prospects were Wang Ying, who had been known as the "Queen of Electronic Tobacco". In the past year, the market value of fog core technology has shrunk by more than 90 %. According to the Hurun Rich List, from 2021 to 2022, Wang Ying's wealth fell from 71 billion yuan to 6.3 billion yuan, and the value of more than 60 billion yuan was reduced.

After the third quarter of the financial report was released, as of November 16, the US stocks closed, and the stock price of fog core technology closed at 1.44 US dollars, a drop of nearly 10%from the opening price on the same day.

The pessimistic expectations of the capital market make sense. Under the restrictions of policy restrictions, it is difficult to reproduce in contraction, overseas, and switching to the past.

For nearly two years after listing, the stock price of Wuxin Technology seemed to be on the roller coaster.

On January 22, 2021, Wuxin Technology officially landed on the New York Stock Exchange. The stock price rose sharply on the first day of listing, closing at $ 29.51/share, with a market value of 45.8 billion US dollars, equivalent to RMB 300 billion.

The stock price doubled on the day of listing directly ignited the enthusiasm of the market. However, since then, with the continuous introduction of fruiting policies such as fruit -flavors and new national standards, the stock price of fog core technology has also been burned like cigarettes.

Due to the severe stock price shrinking, Wuxin Technology was once nicknamed the "smoke" stock by shareholders. On October 7 this year, before half a month before the introduction of electronic cigarette consumption tax policies, the stock price of Wuxin Technology once fell to $ 0.94, not only "breaking net" (the stock price fell below net asset value), but also slipped to the edge of the delisting. Essence

On October 25th, the consumption tax policy that was regarded as the final negative consumption tax of electronic cigarettes was implemented, and the market pessimism was expected to be relieved to a certain extent. The stock price of fog core technology was restored to a certain extent, and it rose to about $ 1.6. The stock price of Wuxin Technology fell again.

Regarding the decline in revenue profits, Lu Chao said: "It is mainly affected by the gradual suspension of old products. We believe that with the continuous enrichment of the national standard product portfolio, sales revenue will gradually recover."

The gross profit margin is one of the few growth indicators. In the third quarter of this year, the gross profit margin of fog core technology reached 50%, an increase of 10.9 percentage points year -on -year. However, the electronic cigarette consumption tax levied on November 1 is not reflected in this quarter's financial report. It will be difficult to maintain this indicator next quarter. "In view of November, the impact of 36%of the consumption tax on the production of electronic cigarettes on the company's profitability, continuous cost reduction and efficiency will still be one of the company's strategic focus." Lu Chao said.

In addition, short -term market shocks also affect the long -term development of the industry. In the long run, the growth rate of the electronic cigarette market is not optimistic. The forward -looking research institute predicts that from 2022 to 2027, the compound growth rate of the domestic electronic cigarette market is only 3%.

Wang Ying made a handful of his hands, and his highlights were as short as the old Dongjia Uber China and Didi.

Wang Ying's resume is quite dazzling and belongs to the typical post -80s elite. In July 2002, Wang Ying graduated from the School of Economic and Trade at the School of Management of Xi'an Jiaotong University.

After the fast -moving and consulting, Wang Ying's next stop is the Internet. In the "taxi war" that sensation across the country, Wang Ying was at the forefront of the war. She was the general manager of Uber China Hangzhou. After the merger of Uber China, Wang Ying took over Liu Zhen and became Didi Youyou. The person in charge of the steps of the business department.

At that time, in the Internet war situation she was in, the eyes of the spectators gathered on Ma Huateng and Ma Yun, and on the "two horses" agents Cheng Wei and Chen Weixing, in the "unicorn catcher" Zhu Xiaohu; and in Uber China, After farewell to the stage of history, Wang Ying also left Didi, embarked on the road to entrepreneurship, and went to his own battlefield.

In January 2018, Wang Ying founded Shenzhen Wuxin Technology Co., Ltd., with her experience in fast -moving consumer, consulting, and the Internet, the company quickly stood out in the electronic cigarette industry.

Before and after Wang Ying's entrepreneurial, the track quickly poured into many players, such as Ono, which Luo Yonghao's participation, and YOOZ participated in the participation of the uncle Cai Yuedong, the first -mover advantage of the carving was not obvious.

After the online banning order took effect, the industry ushered in the first shuffling, and major brands began to make offline channels. Yue Ke rushed out of this round of reshuffle. "The streets are full of (electronic cigarettes) shops. There are two people in the three houses." road.

According to relevant industry data, there were nearly 190,000 domestic e-cigarette retail stores in 2021, of which 138,000 were authorized stores, 47,000 stores were specialized, and the collection stores were 5,000-7,000. Among them, the total number of Yueke brand stores is about 27,600, accounting for about 58.2% of the total number of market stores

After online ban on sale, the sales of electronic cigarettes are almost proportional to the store. According to the CIC report data, in the nine months of 2019 and 2020, according to the retail sales, the Chinese market share of Wuxin Technology is 48%and 62.6%, respectively. ,Number one.

Yueke was soaring all the way, and the blessing of capital was inseparable behind. In the year of entrepreneurship, Fogxin Technology Angel Ring financing received a total of 38 million yuan of investment from source capital, IDG capital, Sequoia China and other well -known institutions. In 2019, Wuscin Technology received two rounds of financing again, with a valuation of 2.4 billion US dollars after investment.

Under the blessing of capital, the fog core technology began to accelerate the IPO. In 2021, Wang Ying took the company that was established for less than 3 years to land on the New York Stock Exchange. On the day of listing, the stock price rose 146%. The closing price was 29.51 US dollars, and the total market value was as high as 45.8 billion US dollars, about 300 billion yuan.

The skyrocketing after listing attracted many media attention, and a oolong was also made. As some media misunderstood the proportion of Wang Ying's shareholding in the prospectus, the report of the "new Chinese woman richest man" was emerging endlessly.

Despite a oolong, Wang Ying still accumulated considerable wealth with listing. On the "2021 Hurun Global Better Entrepreneur List", Wang Ying ranked 8th with a value of 71 billion yuan, and she was the only female entrepreneur under the top ten on the list.

However, the highlight of the stock price has only been maintained for two months. At the end of March 2021, the Ministry of Industry and Information Technology reported that "electronic cigarettes plan to implement cigarettes for supervision". Within a week, the stock price of fog core technology fell below the issue price and fell from about $ 19 to less than $ 10.

Under the restrictions of the policy, the choice left to the electronic cigarette company is nothing more than three ways: shrinking, going out of sea, and transfer.

Wuscin Technology also begins to prepare for the upcoming performance impact. "In the third quarter, the company continued to optimize various costs. The operating expenses under non -US GE Accounting Guidelines decreased by 30.9%from the previous quarter." Lu Chao said.

In addition, the status of fog core technology has changed a lot from last year. According to the financial report data, as of September 30, 2022, the company's cash and cash equivalents, restricted cash, short -term bank deposits, nets, short -term investment, long -term bank deposits, nets and long -term investment securities were 16.405 billion yuan, which was compared to the same period last year. The 14.7203 billion yuan increased significantly.

In terms of asset structure, compared with the end of last year, the aquarium technology cash and cash equivalents have fallen sharply, and short -term bank deposits and the number of long -term investment securities have risen significantly. All changes are providing room for the company's follow -up operations.

Some analysts believe that the continuous introduction of policies has increased the threshold of the industry and limited the competition between peers. It is a benefit for existing electronic cigarette brands, especially as a head brand. However, increased deposits and reduced costs in all aspects, but various measures were released with pessimistic signals.

In addition to the shrinkage visible to the naked eye, the carving is also busy going to sea and switching to career.

In 2021, the new overseas business "Yue Ke International" was officially established, but no more data disclosure has been disclosed so far. At the end of June this year, the coffee brand launched by Wuxin Technology "wakes up" to Chengdu, but it will soon lose the following.

It is worth noting that at the telephone meeting after the financial report was released, investors did not wait for the repurchase news I wanted to hear. No repurchase may also mean that even if the industry is empty, Wuxin Technology is still uncertain about its prospects.

When some media interviewed Wang Ying, he asked: "After the development of the carving to a certain stage, if a state -owned enterprise wants to enter the Yue Ke, is it willing to accept it?"

Wang Ying's answer is very subtle: "The first time I went to the tobacco system to go to Hunan to smoke to investigate. As soon as I entered, I saw the" national interests supremacy, consumers supremacy ', which was particularly shocking. For a moment, I feel that there is no problem. In the past, in a foreign company, I said human nature, humanities, and care every day. As soon as I entered there, I saw the two lines, (I realized) each of us was a citizen, and tobacco was an important country. The source of tax ... I agree with these two sentences, and it will become the first judgment criterion for guiding. Therefore, it is not important who is shareholders. It is important that you must have a firm criterion to promote smokers around the world to a healthier life. Method change, this will not change. "

"National interests are supreme, consumers are supreme", from the first half of the sentence to work hard, and then the carving and the entire industry must be transferred to half a sentence.

To this day, uncertainty is still shrouded in Wang Ying's head of the former "e -cigarette queen". The only determination is that the industry's huge profits and the growth of plentiful are gone.