gippro has closed a 10 million yuan funding round
Is the e-cigarette industry still popular in China?
On January 5, it was reported that the e-cigarette brand gippro announced that it has closed a ten million yuan funding round. The investors are Jinjia Technology, Tongchuangweiye and Meilleure Health International. This round of financing will be mainly used for new product research and development, China marketing network and specialty store sales channel construction, and overseas sales channel expansion.
At the same time, Jinjia Group announced that the company intends to increase its capital by 3 million yuan in Shenzhen gippro Technology Innovation Co., Ltd. (hereinafter referred to as “Longwu Technology”), the parent company of gippro. Among them, 50,200 yuan was used to subscribe for the newly increased registered capital, and the remaining 2,499,800 yuan was included in the capital reserve of gippro Technology; it is planned to transfer 1.1% of the shares of Longwu Technology held by Ren Yi for 550,000 yuan. After the completion of the aforementioned transaction, the registered capital of Longwu Technology increased to RMB 2.5241 million, and Jinjia Technology held a 3.09% stake in Dragon Dance Technology.
It is reported that gippro Dragon Dance was established in Tokyo, Japan. The brand focuses on the research and development of industry-leading atomization technology and heat-not-burn technology. Products include various types of electronic cigarette devices, heat-not-burn appliances and non-tobacco consumables, as well as diversified CBD products. .
In recent years, many e-cigarette brands have completed financing. In December 2020, the China e-cigarette brand LAMI announced that it has received ten million US dollars in the first phase of investment from the Chaos Innovation Fund. The financing is funded by the Innovative Investment and financing platform Qunfengshe as an investment and financing consultant, and the funds obtained will be used to continue Deepen the layout of the entire industrial chain upstream of the e-cigarette supply chain, enhance the integration of scientific research resources, and expand the investment in the research and development system. In August 2020, MYX electronic cigarette has completed a round of financing. In July 2020, the e-cigarette retail channel brand “Laiyan” has recently completed an angel round of financing of millions of yuan, and the investor is Jidou Capital. This round of investment will be used for market development and operation upgrades to provide more e-cigarette practitioners with a systematic and digital sales platform.
According to Shen Meng, director of Chanson Capital, e-cigarettes are positioned as a healthy way of smoking, with a huge potential market and a large growth rate. This is one of the reasons why many e-cigarette brands have obtained financing.
However, prior to this, the country has reinvented the e-cigarette market, which has played a deterrent effect on standardizing market development. On November 1, 2019, the State Tobacco Monopoly Administration and the State Administration for Market Regulation issued the “Notice on Further Protecting Minors from E-cigarettes”, urging e-commerce platforms to close e-cigarette shops in a timely manner and provide e-cigarette products in a timely manner Off the shelf. In July 2020, the State Tobacco Monopoly Administration and the State Administration for Market Supervision and Administration issued the “Notice on Printing and Distributing the Action Plan for Special Inspections in the Electronic Cigarette Market” (hereinafter referred to as the “Notice”). The Law, the E-commerce Law, the Anti-Unfair Competition Law and other laws and regulations require special regulations, stricter regulatory measures and stricter governance measures, to comprehensively clean up the sale of Internet e-cigarettes, and comprehensively strengthen the regulation of Internet platforms to effectively protect the physical and mental health of minors.
With the tightening of national policies, electronic cigarette companies have also ushered in a reshuffle. According to the data from Tianyan Cha (a China company database), China’s current company name, business scope or brand name includes “e-cigarette, electronic vaporizer” and the status is an enterprise that is active, surviving, moving in or moving out (hereinafter referred to as “e-cigarette-related enterprises”) amount is over 13,000. Among them, 1,800 electronic cigarette related company certificates have been canceled or revoked.
However, China vape company registrations increased by 167% year-on-year in the first three quarters in 2020. This vape industry is still promising and full of hope.