On the evening of January 10, Xiaodong (002723.SZ) issued an announcement that the company's participating industrial fund Huzhou Jingan equity investment partnership (limited partnership) ("Huzhou Jinan") recently signed the electronic smoke liquid fluid The "Equity Transfer Agreement" of the supplier Shenzhen Zhenghe Biotechnology Co., Ltd. (referred to as "Zhenghe Biological"), Huzhou Jingan will hold 20%of the equity of Zhenghe Bio. This marks that Xiaosong's layout of the electronic cigarette industry chain has fallen again, and it also reflects the company's confidence and determination to firmly develop the electronic cigarette industry.

According to the announcement, Zhenghe creatures are electronic smoke liquid suppliers that integrate electronic tobacco liquid liquids in the development, production, sales, and processing services. "Production Enterprise)" can legally produce and sell electronic smoke in China, and has a certain competitive advantage in the industry.

This is also the layout of Electronic cigarette upstream business in the past year in the past year. Since the investment in the biological layout of Hong Kong Chinese biological deployment in 2022, this time it has once again increased electronic smoke. The complete coverage of the core industry links such as cigarettes, atomized, and electronic smoke products has consolidated the core competitiveness of the company's electronic cigarette business, and helps the company continue to build the layout of the entire electronic cigarette industry chain.

In recent years, Xiao Song has continued to implement the category expansion and channel expansion strategies for the implementation of small appliances business, and has achieved a relatively complete business layout in the company's key development of the electronic cigarette field. The company has equipped the electronic cigarette business with professional R & D, production, brand and sales teams, established a production workshop that meets production needs. More than 20 electronic cigarette trademarks have been registered at home and abroad, and dozens of independent research and development have been launched to the market. The electronic fellow model has established a mature operating mechanism suitable for the development of the company. More importantly, Xiao Song also participated in the domestic electronic cigarette brand and reached strategic cooperation with them. The two parties have reached a strong coordination in various aspects such as brand agency distribution and research and development, which greatly strengthened the competitiveness of the two parties in the e -cigarette industry.

Recently, there are obvious signs of domestic consumption recovery, and the superimposed electronic cigarette industry has entered the development of benign compliance. The electronic cigarette industry in my country is expected to usher in a wave of continuous improvement in this year. China Galaxy Securities also stated that it is expected that my country's electronic cigarette industry will be standardized and stable under the China Tobacco system in the future. The product standards, qualification applications, and retail shops in the industry will constitute barriers, and the industry is expected to achieve centralized concentration. It can be seen that with the gradually deepening layout of the electronic smoke industry chain, the company is expected to form a barrier of electronic cigarette business with obvious advantages to further accelerate the expansion of the scale of the new tobacco business, and to inject strong power into the company's competition in the e -cigarette track competition in the competition of e -cigarette tracks Essence