The online e-cigarette code is strong, and it still gets us $200 million financing under supervision. Is the e-cigarette industry cool

On May 28, the National Health Commission released the China smoking health hazard report 2020, which showed that "there is sufficient evidence that e-cigarettes are unsafe and harmful to health." this may be regarded as a warning of the coming regulation.

The current e-cigarette market is confusing.

In addition, due to the lack of explicit provisions on the legal attributes of e-cigarettes, only 13% of the general commodity value-added tax is levied, while the comprehensive tax rate of cigarettes in China is 66.6%, which is a very big gap.

According to yooz grapefruit official disclosure, the financing fund is mainly used for offline new and old store support, expansion and new product R & D. As of May, the number of yooz grapefruit offline stores in China has exceeded 6000.

In fact, after e-cigarettes were banned from online sales at the end of October 2019, the news of e-cigarette brand financing almost disappeared. Some investors said frankly that e-cigarettes are too risky and easy to be killed by policies. They haven't paid attention to them.

Windfall profits and risks of addictive consumer goods

Large amount of financing and offline expansion, is shake cigarette oil formal, and is e-cigarette still crazy?

On the day after the release of the exposure draft, the market value of three related listed companies, fog core technology, SIMORE international and Yiwei lithium energy, decreased by 200 billion yuan.

This means that if you completely "refer to cigarettes", it may have two fatal effects on the e-cigarette business: one is monopoly, the other is heavy tax, which respectively corresponds to the current situation of random sales and low tax rate of e-cigarettes for a long time.

The pursuit of capital also confirms the "huge profits" of the market. The cost of electronic cigarettes is very low. It is understood that the cost of an electronic smoker is no more than 20 yuan, but the retail price is at least 200 yuan. As a high-frequency consumer goods, the price of a box of cigarette bombs is about 100 yuan, and its cost is less than 20 yuan.

"Among the unlisted e-cigarette brands, yooz grapefruit can be counted as the head. Compared with the valuation of US $2.4 billion and nearly 20 times the income before Yueke's listing, the current price of US $200 million is not high. In the face of high taxes in the future, how to use e-cigarettes and minimize the cost can we have more profit space."

In this regard, venture state asked a number of investment institutions that had invested in e-cigarettes for comment, but out of caution, all institutions did not respond.

According to tianyancha data, as of March this year, subject to industrial and commercial registration, a total of more than 3200 e-cigarette related enterprises in China have been cancelled or revoked. Among them, nearly 1000 enterprises were cancelled or revoked in 2020, accounting for about 31% of the total number of "dead" enterprises.