At present, we hold or participate in a total of 4 electronic cigarette license enterprises, of which we actually control 3 and participate in 1
1、 The shareholding ratio is as follows:
Nicotine license: Shaanxi Ganghua Biotechnology Co., Ltd. holds 48.17% of the shares (already controlled)
Production and manufacturing license: Guangdong Jinlaite Intelligent Technology Co., Ltd., holding 100% of the shares (already controlled)
Domestic brand license: Shenzhen Flame High tech Co., Ltd., holding 100% of the shares (already under actual control);
Platinum (Shenzhen) Technology Co., Ltd. holds 2.4911% of the shares (equity participation)
2、 Scarcity of electronic cigarette licenses:
1. At present, nicotine licenses are the most scarce in China, with 12 nicotine licenses issued nationwide, no new additions, and regulated production capacity. Currently, Hong Kong and China rank among the top in terms of issued production capacity
2. Secondly, there are 46 domestic brand licenses issued nationwide with no new additions, and previously, Flame High products have been supplied to Hubei and Sichuan Tobacco, indicating a market foundation
3. Finally, over 400 production and manufacturing licenses have been issued nationwide, but currently there is a situation where the strong remain strong, and most small and medium-sized production enterprises are facing a situation where they have no orders to take on. The remaining production licenses are expected to become increasingly valuable in the future