The implementation of the e -cigarette consumption tax on November 1st, from the perspective of the industry, this means that the last one is empty, and the electronic cigarette industry will be on track.

On November 23, the National Tobacco Monopoly Agency issued the "Notice on Limited Submitting Electronic Smooth Products, Mist, Electronic Tobacco and other limited delivery", and implemented limited management , Further refine the supervision of electronic cigarettes.

With the exclusion of policy uncertainty, the electronic cigarette industry has ushered in a new stage of development, and related companies have also bid farewell to the era of huge profits.

The latest third -quarter financial report released by Electronic Tobacco Enterprise Fog Core Technology (Yue Carving) shows that both net revenue and net profit have both declined. After the implementation of the consumption tax, the gross profit margin predicted will also face a decline.

Under the new policy, electronic cigarette companies also look for new growth points. In addition to layout overseas, the coffee tracks are the same as the overseas layout, the carved, magic flute, grapefront, etc.

After "boots landing", fog core technology will also usher in new challenges.

Decline in performance

Judging from the financial report, the performance of fog core technology in the third quarter does not seem to be ideal.

According to the financial report, the net income of fog core technology in the third quarter was 1.04 billion yuan, a decrease of 37.7%year -on -year, and half a month -on -month. Under the non -American general accounting standards, the adjustment of net profit was 330 million yuan, a year -on -year decrease of 27.4%, a decrease of a month -on -month decrease, a decrease from the previous month, a decrease of a month -on -month decrease. 25%.

As of the current 2022, the performance of Wuscin Technology is far from last year.

In early 2021, Wuxin Technology officially landed on the New York Stock Exchange. The market value of the first day reached 45.8 billion US dollars, or about 300 billion yuan. Its revenue also reached its peak in the first and second quarters of last year, with 2.4 billion yuan and 2.54 billion yuan, respectively.

In the first three quarters of this year, the net revenue of fog core technology was RMB 4.99 billion, a year -on -year decrease of 24.5%. Under non -American GAAP, the net profit was adjusted in the first three quarters of RMB 1.33 billion, a year -on -year decrease of 22.7%.

Wuxin Technology attributed the decline in performance to the implementation of new policies. Wang Ying, chairman and CEO of the Board of Directors of Wuxin Technology, said, "In the third quarter, the company was a new national standard for the successful transition until October 1, 2022. Preparation has reduced the shipments of old products and gradually shifted to new national standards. "

In April of this year, the "Electronic Tobacco Standard" was released and officially implemented on October 1st. It includes all the electronic cigarettes of all fruit flavors of the flavors of the foreground. The e -cigarette market subjects produced and operated shall obtain a tobacco monopoly license.

Fruit flavor electronic cigarette has always been loved by young consumers.

According to Ai Media Consultation 2021 in the first quarter of the development status and market research reports of the Chinese electronic cigarette industry, mentioned that among the many factors of electronic cigarette selection products, the taste ranks first, accounting for 70.9%.

Research data from the global e-cigarette industry development trend report from 2021-2022 shows that Chinese consumers prefer electronic cigarettes (60.9%) of flavors such as fruits and foods. Chinese consumers' favorite electronic cigarette flavors are fruit flavors (68.5%).

After the sale of fruit -flavored electronic cigarettes, the attractiveness of electronic cigarettes to consumers has also decreased significantly.

Electronic cigarette user Zhang Hao said that in 2018, he started trying electronic cigarettes under the recommendation of a friend. After without fruit cigarette bullets, he gave up the electronic cigarette.

"Isn't the electronic cigarette just for the fruit flavor?" In Zhang Hao's view, tobacco -flavored electronic cigarettes are not real smoke after all, and the taste is not good. It is better to smoke paper smoke directly.

Also affected are electronic cigarette retailers.

According to the regulations, starting from October 1, retailers, agents and dealers want to continue to operate, they must hold a tobacco specialty retail license. While increasing the sales threshold, there is no fruit -flavored smoke ammunition, and the sales of stores holding the stores have also declined significantly.

According to a survey by the new consumption of the Lan Cave New Consumption, 77%of the owners said that the national standards were sold poorly in October. , Less than 7%have made money.

According to the Beiqing Daily, when visiting the market in October, it was found that a small number of stores had been closed, and the word "transfer" was also posted.

A shop owner revealed that it turned out that he could sell a thousand yuan a day, and now sometimes has no business for a few days, and is considering whether to continue.

Another shop owner in Hunan said that after the sales of fruit taste were suspended, they began to find ways to transform. Combined with the experience of making coffee before, the store has renovated and started coffee.

Impact of consumption tax

"From November 1, 2022, 36%of the consumption tax on electronic cigarette manufacturers will adversely affect our profitability in the next few quarters," said Lu Chao Lu Chao Lu Chao.

It is not just a fog core technology. From the perspective of the industry, levy consumption tax means that the last profit of the electronic cigarette industry is exhausted, but it also means that the "era of huge profits" is ended.

On October 25, the Ministry of Finance, the General Administration of Customs, and the General Administration of Taxation jointly issued the "Announcement on the Consumption Tax of Electronic Cigarettes" (hereinafter referred to as the "Announcement"), which included electronic cigarettes into the scope of consumption tax collection and added electronic cigarettes to the cigarette tax. Visible.

The "Announcement" states that electronic cigarettes are calculated to calculate taxes from the price rate. The tax rate of the production (import) link is 36%, and the tax rate of the wholesale link is 11%.

Some people in the industry have analyzed that the opening of electronic cigarette consumption taxes is conducive to the stable development of the electronic cigarette industry. As some small and medium -sized electronic cigarette companies will withdraw from the market, the e -cigarette head companies that are currently occupying the market advantage.

Therefore, on the second day of the announcement of the consumption tax, the concept of electronic cigarettes soared, among which the fog core technology rose 42.98%, Simo International rose more than 20%, China Bolton rose more than 12%, Huabao International rose over 11%over 11% Essence

But at the same time, levy consumption tax also means that the profits of electronic cigarette companies are under pressure.

According to the "Announcement", the electronic cigarette consumption tax of the production link shall be paid by the trademark holding enterprise, which is the brand. For example, Simo International produces electronic cigarettes for the foundry of the carved brand, and the consumption tax is borne by the carved consumption tax.

But in the end, it was borne by the brand and the enterprise in the supply chain, or the product price increased by consumers directly. It has been guessed before.

After the consumption tax is officially launched, the retail price has risen.

In the early morning of November 1st, the national unified electronic cigarette transaction management platform updated the tax wholesale price and recommended retail price of national standard products, and major electronic cigarette brands have risen to varying degrees.

According to the Red Star Capital Bureau, the retail price of YOOZ grapefruit, magic flute, VTV, Xuejia, and Ono has increased to varying degrees of gains. Among them, YOOZ grapefruit. Before November, the retail price of a cigarette bullet was 70 yuan /Box, it has risen to 80 yuan/box. The price of a cigarette bomb of Magic Flute also increased from 99 yuan/3 to 130 yuan to 150 yuan.

Although the rise in retail prices will offset the impact of consumption tax to a certain extent, there is no fruity smoke bomb, coupled with the price of rising, some people in the industry predict that the business of the e -cigarette retail terminal is not optimistic in the long run.

In addition, according to the previous perspective of overseas tax burden experience and scenario analysis of China Thailand Securities (6.850, -0.03, -0.44%), the calculation price of the terminal is increased by 20%, and the proportion of gross profit in each link is unchanged. Then the gross profit of the serees, brand companies, channels, and retailers sells about 23.5%compared with the previous tax, and the gross profit margin has fallen by 22.5, 18.3, 11.9, and 12.1 percentage points compared with the pre -tax levy. The impact of the industrial and brand end is greater than wholesale and retail.

Find a new growth point

In the past, the electronic cigarette industry was recognized as a veritable "huge profiteering" industry.

According to public data, in 2021, the annual revenue of Wuxin Technology was 8.521 billion yuan, and net profit was 2.028 billion yuan; Electronic cigarette upstream supplier Simo International, with annual revenue exceeding 13.7 billion yuan, net profit of 5.443 billion yuan.

According to data from the research institution Euromonitor, in the three years from 2019 to 2021, the annual compound growth rate of the domestic industry of electronic cigarettes is close to 60%.

With the continuous improvement of policies, electronic cigarette companies that say goodbye to "profits" have also begun to find new growth points.

Going to sea is considered to be the focus of the future development of the domestic electronic smoke industry.

On the one hand, with the encouragement of policies, the electronic cigarette taxation policy clarifies the taxpayer export electronic cigarettes, applying the export refund (exemption) tax policy, and the export electronic cigarettes continue to enjoy a 13%tax refund policy in the future.

In 2019, Yueke began to explore overseas business. After half a year after entering the Southeast Asian market, Yueke occupied the top local electronic cigarette market, and quickly accumulated millions of consumers in more than 40 countries around the world.

Last year, Yue Ke accelerated its overseas layout, set up a new overseas business "Yue Ke International", and began to try localized operations.

At the same time, YOOZ Grapefruit, the second largest electronic cigarette brand in China, is also unwilling to show weakness. Earlier this year, YOOZ Grapefruit International CEO Chen Qian publicly stated that YOOZ Grapefruit will launch at least 20 new products overseas in 2022.

At present, YOOZ Grapefruit's overseas monthly sales have reached one -third of domestic monthly sales, and it is expected to exceed domestic monthly sales in 2022.

On the other hand, the demand for one -sex product overseas is huge.

According to ECIGINTELIGENCENCE, in the US market, from the first quarter of 2019 to the second quarter of 2021, the one -time electronic smoke category has increased from less than 100 species to nearly 2,000 species, an increase of about 20 times. The one -time smoke market in Canada, Britain, and Russia also took off quickly after 2019 and accelerated in 2021. Analysis of the calculation of the company's GIA, the compound growth rate of disposable electronic cigarettes during 2020-2027 was 7.7%.

In addition, according to the "Blue Book of Electronic Tobacco Industry in 2022", China's electronic cigarette industry is one of the representative industries that increased against the trend during the epidemic. In 2021, the export scale of electronic cigarettes reached 138.3 billion yuan, an increase of 180%year -on -year from 2020, and the growth rate was far exceeding the total exports of goods in the same period. It is expected that the total export of e -cigarette exports in 2022 is expected to reach 186.7 billion yuan, with a growth rate of 35%.

In addition, the electronic cigarette brand has unreasonably aimed at the coffee business.

In November last year, grapefruit began to develop coffee and opened the first coffee shop in Sanlitun, Beijing earlier this year.

Yue carved the coffee chain brand and oral atomization business in 2021. In May this year, it established a coffee research and development room in Baoan, Shenzhen. At present, the coffee business is led by the team led by co -founder Jiang Long, which is evident the importance of the company.

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Also in April of this year, the official account of Magic Flute released the poster of "Sun Coffee and Night Wine, Magic Flute in hand", officially announced the two categories of new boutique coffee and craft beer, focusing on creating electronic cigarettes, coffee, and craft beer as the creation One -piece united store.

But whether it is going to sea or coffee, in the face of strange markets and fields, new challenges will also come. Whether electronic cigarette brands can successfully transform under the "pain" brought by policies still need to make a question mark.