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      In-depth analysis | Qianmu Duying: Looking at the e-cigarette industry investment from the perspective of Wall Street investment banks

      How does the capital market view the development of the e-cigarette market under the New Deal?

      Is e-cigarette still an investment outlet?

      On December 17, the "2021 Fifth International Electronic Cigarette Industry Summit Forum", guided by the China Electronics Chamber of Commerce and hosted by the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce, was successfully held in Shenzhen. With the theme of "Continuous Innovation, Breaking the Boundary, and Meeting the New Era of Atomization", this conference launched discussions on topics such as new e-cigarette policies, brand going to the sea, and capital outlets. It attracted more than 1,000 people to attend the conference, and the number of online viewers exceeded 400,000 passengers.

      Ms. Du Ying, the founder and CEO of ChillMist, was invited to attend the roundtable forum and discussed the roundtable with many industry leaders including Dr. Deng Ming, a new tobacco expert at Yunnan University, on the theme of "Strengthening Confidence, Carrying Forward the Future". At the roundtable forum, Ms. Du Ying shared her views on investment in the e-cigarette industry under the New Deal with her own investment banking perspective and experience in a very fluent English. After the meeting, Ms. Du Ying accepted interviews from many financial media reporters present and shared a lot of dry goods.

      (Reporter) Q: How should the capital market view the new development of e-cigarettes?

      (Du Ying) Answer: The capital market is a very big concept or a very huge industry. Capital is essentially a kind of power, the power to mobilize social production resources and distribute production factors, and is one of the most important media for forming social production relations today. From the perspective of the capital market, including banking, insurance, finance, and securities markets, or the primary, semi-market, and secondary markets of the securities market, the core point of the capital market is value discovery. For enterprises, the main function of the capital market is value discovery, and for individuals, it can be called wealth appreciation.

      As the e-cigarette industry under the rule of law society, first of all, our own industry is within the boundaries of legal permission, how to achieve a high degree of integration of compliance and business philosophy; specifically, in the tobacco monopoly law and the strict and highly centralized supervision of various countries Under the weight, how to predict how the regulatory policies will affect the operation of e-cigarette companies and the consolidation and enrichment of investor confidence, such as the e-cigarette industry in the process of cutting and fighting the original tobacco consumer groups The second is to meet the capital market’s demand for full competition, and to have a reasonable value interpretation of the policy content of the regulatory and governance toolbox used by the competent authority, such as targeted taxation policies. , Product quality supervision and consumer rights protection, etc.; Third, the capital market is very sensitive to information malleability, and the e-cigarette industry should surpass its own development castle, and continue to sublimate from a granular consumer group to a higher level of its own industry Quality improvement requirements, such as scenario modeling, consumer group differences, health responsibility commitments, etc., actively promote the elimination of potential risks and the management of existing risks, resist blind obedience to capital risks and drive out investment entities that do not conform to the "three views".



      (Reporter) Q: Will e-cigarettes still be an investment outlet after the New Deal?

      (Du Ying) Answer: One of the cores of the New Deal is to eliminate policy uncertain expectations and allow practitioners to communicate and cooperate with investors on the premise of fully aware of risks; at the same time, actively implement regulatory requirements and adhere to compliance management and development. Objectively speaking, investors are happy to see the implementation and confirmation of policy measures, so that they can continue to increase R&D investment and provide consumers with high-quality and differentiated products. The long R&D cycle, high investment, and uncertainty in market promotion also look forward to the refinement of policies and the fairness of regulatory mechanisms. At the same time, equity investment must also earnestly fulfill its social responsibilities, and must consider making more contributions to the long-term and healthy development of the industry and the protection of consumer rights and interests.

      Capital investment pays more attention to certainty. The original e-cigarette policy was not clear, but now the national policy is gradually becoming clear. All parties in the industry can conduct business under certain circumstances, which may be the most confident part of the follow-up of capital investment. China's e-cigarettes are the number one in the world, but the penetration rate of e-cigarettes is less than 2%. The orderly development of the e-cigarette market is naturally very attractive to capital.

      From the perspective of market channels, product expansion and new product launches in the new policy require approval, which is beneficial to companies with operational and technological advantages. Effectively curb the monopoly that appears to be similar to the problems caused by the disorderly expansion of capital in the Internet industry. The retail end will focus on multi-brand operations, curbing channel chaos such as excessive store expansion and proliferation of micro-businesses. This allows social capital to enter in an orderly and wide range, instead of having only a few choices and never entering. The development of the e-cigarette industry is inseparable from the progress of the values of the whole society, and is the beautiful pursuit of healthy living, individual consumption and fair market competition. Reasonable investors will judge from the long-term trend, and will be able to find interest and ignite hope from the diversified tentacles of the e-cigarette industry.


      With the recent intensive introduction of regulatory policies, the industry is expected to continue to develop in the norm. Compared with the previous industry policy vacuum period, new tobacco companies have a clearer direction for their efforts. However, if policy supervision, overall tax burden, etc. are close to traditional tobacco, and the impact of taxation cannot be transferred through the market fully pricing, the future industry The scale is difficult to expand, and the profit distribution pattern of each link may also undergo major changes. Under this new situation, enterprises should provide consumers with better products and services, actively contribute tax to the country, and achieve greater development opportunities under the new equilibrium. China's manufacturing industry is constantly upgrading. We are pleased to see that a number of Chinese manufacturing companies have flourished in the past ten years, creating China's absolute leading position in the global e-cigarette industry.

      ChillMist is a cutting-edge domestic brand. We will continue to explore on the road of harm-reducing new tobacco and increase investment in research and development. At the same time, we will actively deploy in the two directions of low temperature herb and herb atomization to provide more Diversified products. In the next 10 years, I hope that new tobacco brands like ChillMist will have the opportunity to move from China to the world. With the comprehensive strength of technological innovation, taste customization, and occupying the minds of consumers, it is hoped that they will create a globally competitive brand and become a value. Investors have good investment targets, actively contribute to the state's fiscal taxation, and strive to achieve the great rejuvenation of the Chinese nation.


      Rm 205,Tinno mobile building, Tongfa South Road, Xili community, Xili street, Nanshan District, Shenzhen, Guangdong, China, 518055

      +86 18018702424chillmist03@gmail.com

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