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June 14 — The synthetic nicotine unit of Jincheng Pharmaceutical Group has secured China’s first production license for electronic cigarettes since the country brought them under tobacco regulations last November.
The State Tobacco Monopoly Administration(STMA) approved a tobacco monopoly license for Jincheng Pharmaceutical & Chemical, its Shandong province-based parent company said yesterday. More details, such as the permitted production volume, will be released once the wholly owned subsidiary receives the license.
The STMA also introduced new measures in March to regulate the e-cigarette industry, requiring atomizer and nicotine makers to secure tobacco monopoly licenses. They could apply from May 5, as the new regulations came into effect last month. And a new unified national platform to manage e-cigarette transactions will start tomorrow.
Shares of Jincheng Pharma [SHE: 300233] fell 4 percent to close at CNY33.70 (USD5) today, after surging by as much as 8 percent in the morning.
Jincheng Pharma specializes in medical intermediates and active pharmaceutical ingredients. Last November, it announced that Jincheng Pharmaceutical & Chemical secured a license to produce 200 tons of nicotine a year from the local regulator.
In the first quarter of this year, Jincheng Pharma’s net profit more than doubled to CNY112 million (USD16.6 million) from a year earlier, according to its latest financial report. Revenue jumped 57 percent to CNY953 million.
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