Original title: Behind the production license of electronic cigarettes, more attention should be paid to the scale of access
Securities Times reporter Yu Shengliang
Jincheng Medicine and Rundu Co., Ltd. successively announced that they have received a decision on the approval of the tobacco monopoly license issued by the State Tobacco Monopoly Administration. This is the first batch of companies in China to announce that they have obtained the e-cigarette monopoly production license, which is of great significance. Behind this license, it should also be concerned about the approved production scale, which is very important and may determine the market supply and demand conditions, as well as the market position of an individual enterprise.
Judging from the issuance of e-cigarette retail licenses, the country is relatively loose in terms of e-cigarette retail access. Most of the stores that opened e-cigarettes before can obtain licenses. New companies are not allowed to enter the wholesale link, only existing tobacco companies. Large-scale private e-cigarette companies will obtain licenses in four fields, including brand operation, manufacturing, e-liquid production, and nicotine production.
It is understood that the producers of nicotine and e-liquids are currently obtaining production licenses. Jincheng Pharmaceutical and Rundu Co., Ltd. both produce synthetic nicotine, and a number of companies have obtained production qualifications, but no official announcement has been made. Brand operators and enterprises in the manufacturing process are the top priority of the entire electronic cigarette industry chain. The leaders of the entire industry are produced in these two fields, and it is not yet time to issue certificates. There is still some time before the official implementation of the new regulations on October 1, and there is still plenty of time.
Jincheng Pharmaceutical is not important in the electronic cigarette industry. Jincheng Pharmaceutical is engaged in the synthetic nicotine business and plans to expand the electronic cigarette business. It is still a new entrant in the electronic cigarette business. It can obtain a tobacco monopoly license, indicating the threshold for tobacco monopoly license. Not too high. A large number of companies that have been working in the industry for many years and have a certain weight can also obtain production licenses if not expected. Although the entry barrier is not high, if you do not get a license, you will have no place in the industry. You can imagine the weight of this license.
Jincheng Pharmaceutical has an annual production qualification of 200 tons of synthetic nicotine. According to the latest regulations of Chinese laws, synthetic nicotine is not allowed to be used in domestic electronic cigarette sales, but can be used for export. Jincheng Pharmaceutical has not announced the scale of the production license, and perhaps the government has not refined it now. But this information is particularly important. In addition to the qualification and access license, the e-cigarette industry also licenses the production scale. If the approved access scale is large enough, there is nothing to worry about. The fear is that the access production will be reduced.
Not only the e-liquid and nicotine links, but also in the manufacturing and branding links, the production capacity approval system may also be used. The government strictly restricts production capacity, and new production capacity must be approved by the government. If the government restricts access to e-liquid production or e-cigarette production capacity, there may be a situation where supply is too low and the entire industry is in short supply, and the entire industry chain will suffer a serious blow. Different treatment from thick and thin, tilting the production capacity approval may determine the rise of some enterprises and the decline of some enterprises.
(Editor in charge: Wei Jingting)