Grandshorestech subsidiary Yinrong Investment Co., Ltd. and Shenzhen Esun Technology Co., Ltd. entered into a strategic cooperation framework agreement on August 14.
Under the agreement, Yinrong and Shenzhen Esun intend to establish a joint venture company in Hong Kong to jointly expand their e-cigarette business to overseas markets. The registered capital of the joint venture company will not exceed HK$100 million. Yinrong and Shenzhen Esun will each own 50% of the joint venture company.
Yinrong and Esun will develop and sell canabidiol(CBD) and other types of cannabis electronic cigarettes approved by relevant laws and regulations; and sell other nicotine-containing and nicotine-free electronic cigarettes in the People’s Republic of China and overseas. Yinrong and Esun also cooperate to develop related electronic cigarette R&D centers and production bases in North America and Southeast Asia, and to create an electronic industry group that integrates R&D, filling, production and sales.
The agreement only provides a strategic cooperation framework between Yinrong and Esun, and does not constitute a legally binding contract or otherwise generate legally enforceable rights and responsibilities. All transactions to be carried out under this agreement (including the proposed establishment of a joint venture company) are subject to a final agreement between Yinrong and Esun.
Established in 2018, Shenzhen Esun Technology Co., Ltd. focuses on the research and development of atomization technology and the construction of large-scale healthy ecological circle based on atomization technology. It has mature products and continuous product iteration capability in the field of electronic cigarette. Shenzhen Esun is a member and executive director of the Electronic Cigarette Industry Committee of China Chamber of Commerce, and one of the leading enterprises in the electronic cigarette industry.
It is understood that on February 26, Esun YiStar announced it closed 10 million yuan angel financing round. Investors include the well-known venture fund Ploom Venture Capital and the world tobacco tycoon Royal Factory Joyetech. This round of financing is mainly used for research and development of Esun products, upgrading of atomization technology and sales channel construction. At the same time, YISTAR will be upgraded to ESUN. ESUN will also continue to upgrade product user experience, open up new online and offline retail channels, conduct accurate market analysis and fine operation, launch more products in the form of atomization, and accelerate the creation of a large healthy ecosphere of atomization.
The founding team of Esun is from the PMI, Huawei, Tencent and traditional electronic tobacco industry. It has strong R&D technology, is good at channel operation and marketing promotion, and has rich experience in Internet entrepreneurship management. Relying on the team’s experience in the electronic cigarette industry at home and abroad, as well as in the field of marketing, Esun has cooperated with local tobacco distributors worldwide.
The slogan Esun has been designated as “Esun to pursue better health”, which is the original intention of the research and development of Esun products. Many smokers have strong demand for alternative cigarettes, and this demand has been verified in Europe and the United States. With the maturity of technology and increased supervision, more and more consumers will turn their attention to electronic cigarettes. In response to the demand for smokers to replace cigarettes, Esun will launch the City Partner agency plan to help smokers to alter to a healthier lifestyle.
Grandshorestech (stock code: 1647) is mainly engaged in construction engineering, block chain industry and industry/medicine related business.
Grandshorestech provides integrated building services in Singapore, focusing on the maintenance and installation of machinery and electrical (mechanical and electrical) systems, including small-scale maintenance and renovation projects; and provides construction services in Singapore. They have over ten years of experience in providing maintenance services for various construction systems.
Starting in May 2018, Grandshorestech expanded its business to the area of block chains, expanding its capabilities in civil, mechanical and electrical engineering to high-end specialized services, such as data center design and construction, operation, maintenance, management and other high-performance data processing facilities and equipment related to block chains technology. Their aim is to produce synergistic effect for the existing business of the group.
In March 2019, the company further expanded its business to industrial and medical related fields, such as cultivation, processing of industrial cannabis and the application of its extracts in medical and consumer products.