Category: Featured

RLX Results Impacted by Pandemic
RLX Technology reported net revenues of CNY1,71 billion ($270.4 million) for the first quarter ended March 31, 2022, compared with RMB2.4 billion in the same period of 2021. Gross margin was 38.3 percent, down from 46 percent in the same period of 2021. U.S. GAAP net income was RMB687.1 million, compared with a U.S. GAAP net loss of RMB267 million in the same period of 2021. Non-GAAP net income was RMB361.8 million, compared with RMB610.5 million in the same period of 2021.
“During the first quarter of 2022, we continued to focus on our core strategy and maintain our leading position in the industry while preparing for the anticipated regulatory changes,” said Ying (“Kate”) Wang, co-founder, chairperson and CEO of RLX Technology, in a statement.
“As the new regulatory framework has come into effect and detailed implementation measures have been released, we are proactively adapting our business to the new market environment by applying for the relevant licenses and developing qualified products that meet the requirements of the most recent national standards. We believe that, by leveraging our leading research and development abilities, we are able to launch market-leading products that conform to the national standards and satisfy our users’ needs.
RLX Technology attributed the decline in net revenues to the impact of the Covid-19 pandemic on its factory in Shenzhen, which limited the company’s production and shipment volumes.
“Our cash position remains solid, which will support us as we navigate the market dynamics and agilely adjust our business to the fluctuating macro environment,” said Chao Lu, chief financial officer of RLX Technology. “Looking ahead, we will remain focused on the business elements under our control, such as product innovation, cost optimization and operating efficiency, to reinforce our fundamentals and position ourselves to seize future opportunities. As always, we are committed to delivering sustainable growth for our shareholders in the long run.”
May 21, 2022
FDA Names New CTP Director

Photo courtesy of Robert Califf’s Twitter
The U.S. Food and Drug Administration has named Brian A. King as the new Center for Tobacco Products (CTP) director.
“After a robust executive search, I have selected Dr. Brian A. King as FDA’s new Center for Tobacco Products Director,” Robert Califf wrote on Twitter. “Dr. King brings extensive and impressive expertise in tobacco prevention and control and has broad familiarity with FDA from his more than 10-year tenure at CDC.”
King is the deputy director for research translation in the Office on Smoking and Health (OSH) within the National Center for Chronic Disease Prevention and Health Promotion at the Centers for Disease Control and Prevention. In this capacity, he is responsible for providing scientific leadership and technical expertise to CDC/OSH, the lead federal agency for comprehensive tobacco prevention and control.
King joined the CDC in 2010 as an epidemic intelligence service officer before which he worked as a research affiliate in the Division of Cancer Prevention and Population Sciences at Roswell Park Comprehensive Cancer Center in Buffalo, New York. During his time at Roswell Park, his primary research focus related to tobacco prevention and control.
King has worked for over 15 years to provide sound scientific evidence to inform tobacco control policy and to effectively communicate this information to key stakeholders, including decision makers, the media and the general public. He has authored or co-authored over 200 peer-reviewed scientific articles pertaining to tobacco prevention and control, was a contributing author to the “50th Anniversary Surgeon General’s Report on Smoking and Health,” was the lead author of CDC’s 2014 update to the evidence-based state guide, “Best Practices for Comprehensive Tobacco Control Programs,” and was the senior associate editor of the 2016 Surgeon General’s report, “E-cigarette Use Among Youth and Young Adults” and the 2020 Surgeon General’s report, “Smoking Cessation.” He was also the renior official for the CDC’s emergency response to the 2019 outbreak of e-cigarette, or vaping, product use-associated lung injury.
King holds a doctorate degree and a Master of Public Health degree in epidemiology from the State University of New York at Buffalo.
May 20, 2022
Senator Calls on U.S. FDA to End Enforcement Discretion

Photo: Tobacco Reporter Archive
In a speech on the Senate floor, U.S. Senator Dick Durbin blasted the U.S. Food and Drug Administration for its delays in completing its public health review of e-cigarette premarket tobacco product applications (PMTAs). The deadline for the FDA to finish reviewing e-cigarette applications was Sept. 9, 2021, more than eight months ago.
On June 13, the regulatory agency submitted an update on the agency’s review of e-cigarette applications and stated it will not finish reviewing e-cigarettes until July 2023 and that products under review may continue being sold.
“These companies have flooded the market with addictive devices. Companies like Juul, partially owned by the tobacco companies, understand that they’ve promoted their products to children,” Durbin said, according to a release from his office. “For years, none of these products were legally authorized. Who was supposed to be the cop on the beat? The Food and Drug Administration, but they were nowhere to be found.”
In March, Durbin led a bipartisan letter with 14 of his colleagues calling on the FDA to finish its review of e-cigarettes immediately; reject applications for e-cigarettes, especially kid-friendly flavors, that do not prove they will benefit the public health; and clear the market of all unapproved e-cigarettes.
“I am calling on the FDA to immediately halt its enforcement discretion and remove all unauthorized e-cigarettes from the market,” Durbin stated. “Don’t allow Juul and other tobacco companies one more day of endangering our children. Stop cowering before Big Tobacco’s highly paid lawyers.”
May 20, 2022
Feelm Commits to Net-Zero Emissions

Photo: Parradee | Adobe Stock
Feelm, a division of China-based vaping hardware manufacturer Smoore International, released its “Race to Zero” roadmap to carbon neutrality. Feelm stated that its plan brings forward the company’s ambitions to achieve net-zero carbon emissions by 2050 in its direct production activities and indirect purchased energy, according to a company press release. The company has also made a commitment to use renewable energies in at least 30 percent of its total energy consumption by 2030.
“As one of China’s first atomization tech brands to make a carbon neutrality commitment, Feelm pledges to reach net zero in full supply chain and full product lifespan by developing sustainable products, improving energy efficiency with automated production, supporting the supply chain in decarbonization, and increasing renewable energies and eco-friendly materials,” the press release states. “Feelm, being the world’s largest closed vape system solution provider, plays a significant role in the global vaping supply chain.
“On the one hand, it provides millions of global consumers with premium product experience by virtue of partnership with vaping brands around the world; on the other hand, Feelm has been leading a sustainable revolution in the supply chain.”
Beginning in 2019, Feelm pioneered a number of green vaping solutions. The company won the iF Design Award 2020 for its disposable paper e-cigarette, which is made up of spiral composite paper tubing that improves “the degradability rate to approximately 76 percent of the total volume” compared to the plastic used in traditional vaping products.
Feelm is also set to unveil another eco-friendly non-nicotine disposable e-cigarette at Vaper Expo U.K. 2022 in late May. The new device was awarded the Red Dot Award for Product Design 2022. Its external structure is composed of recyclable and reusable aluminum foil. It looks similar to a paper foil pouch that also serves as a packaging bag, which reduces the amount of packaging materials.
“In addition to developing sustainable products, Feelm has also partnered with suppliers to develop and encourage utilizing biodegradable materials while optimizing the water, electricity and gas consumption management,” the release states. “Feelm is also working with global customers to promote the recycling and reusing so as to explore a feasible path toward carbon neutrality for the product lifespan and the supply chain.”
May 20, 2022
Cigarette Health Warnings Effective Date Postponed Again

Photo: Tobacco Reporter Archive
On May 10, the U.S. District Court for the Eastern District of Texas issued an order in the case of R.J. Reynolds Tobacco Co. et al. v. United States Food and Drug Administration et al., No. 6:20-cv-00176 to postpone the effective date of the “Required Warnings for Cigarette Packages and Advertisements” final rule.
The new effective date of the final rule is July 8, 2023. Pursuant to the court order, any obligation to comply with a deadline tied to the effective date is similarly postponed. For example, the FDA strongly encourages entities to submit cigarette plans as soon as possible but no later than Sept. 8, 2022.
This is not the first time the new health warnings have been delayed. The rule was most recently delayed to April 9, 2023, after being postponed multiple times before this over the past few years. The rule was originally supposed to go into effect in 2021.
Additional details on the rule, as well as the new effective date and recommended date for submission of cigarette plans, can be found on the FDA’s website.
May 19, 2022
BAT Launching glo in Cyprus

Photo: Tobacco Reporter Archive
BAT is launching its tobacco-heating product glo in Cyprus, according to The Cyprus Mail. The launch is expected to contribute to the economy and society in Cyprus, boosting employment with new jobs while supporting the country’s network of retailers and distributors.
“BAT is on a transformation journey to build ‘A Better Tomorrow’ by reducing the health impact of our business,” said Vitalii Kochenko, general manager of BAT Hellas responsible for the markets of Cyprus, Greece, Malta and Israel. “We are proud to bring innovation and technology to the local market with BAT’s tobacco-heating product, putting Cyprus amongst the markets that the international group of BAT has chosen for this launch.”
Glo hyper+ in Cyprus is BAT’s latest iteration of its tobacco-heating product. The device combines BAT’s latest tobacco-heating technology, induction heating, and will be accompanied by neo demi slim sticks, which are specially designed to be used with this device.
May 19, 2022
22nd Century Begins Integration of GVB

Photo: chokniti | Adobe Stock
22nd Century Group has begun integration of GVB Biopharma, which it acquired on May 13, 2022, according to a company press release. As a contract development and manufacturing organization (CDMO), GVB is a market share leader in hemp-derived active ingredients for the nutraceuticals, pharmaceutical and consumer goods industries. 22nd Century has posted a presentation, which includes an overview of GVB’s business operations, the strategic benefits of the acquisition, and strengths of the combined companies, on the “Investors” section of its website.
“We are excited to welcome the GVB team into the 22nd Century family,” said James A. Mish, 22nd Century’s CEO. “Together, we believe 22nd Century now provides the most complete hemp/cannabis solution in the world, from receptor science and transformative plant genetics to finished ingredients and CDMO formulated products that meet the most exacting standards required by global consumer products and pharmaceutical companies. We can now offer complete, vertically integrated cannabinoid manufacturing technologies, creating industry-leading scale and cost efficiency alongside our proprietary hemp/cannabis plants designed to bring the commercially desirable traits and stable genetics critical to realizing the full potential of this exciting market.”
May 19, 2022
Steady Footfall on First Day of WT Europe

Bulgaria’s deputy minister of agriculture, Momchil Nekov, opened the WT Europe exhibition in Sofia this morning. Describing the economic importance of tobacco to Bulgaria, along with the challenges and opportunities facing the business, Nekov stressed his government’s commitment to an orderly development of the sector.
The event appeared to be well attended, with considerable crowds lining up to register when the Inter Expo and Congress Center opened its doors this morning. With more than 50 exhibitors, WT Europe is the first tobacco event to take place in Europe as the Covid-19 pandemic recedes, and many visitors said they relished the opportunity to meet people in person again following two years of lockdowns and video conferences.
Show organizer Quartz Business Media said it was elated with the interest in its event. “We have experienced steady footfall all morning and look forward to two days of productive networking,” said Sales Director Colin Case. Several visitors commented on the high quality of attendees, a factor they said made attending the show more than worth their while.
In addition to the exhibition, Quartz Business Media had put together an engaging conference with expert speakers from Euromonitor, the International Tobacco Growers Association and Universal Leaf Tobacco Co., among other prominent organizations.
May 18, 2022
Study: E-Cigs Help Pregnant Smokers Quit

Photo: seksanwangjaisuk | Adobe Stock
New research reveals that e-cigarettes are as safe to use as nicotine patches for pregnant smokers trying to quit and may be a more effective tool.
Quitting smoking is difficult. For smokers who become pregnant, not quitting smoking in pregnancy can increase the risk of outcomes including premature birth, miscarriage and the baby having a low birth weight, according to a story in The Guardian.
“Many pregnant smokers find it difficult to quit with current stop smoking medications, including nicotine patches, and continue to smoke throughout pregnancy,” said Francesca Pesola, an author of the new study who is based at Queen Mary University in London.
While e-cigarettes have been found to be more effective than nicotine patches in helping people quit, Pesola noted there has been little research into their effectiveness or safety among pregnant women despite an increase in use by expectant mothers.
Writing in the journal Nature Medicine, Pesola and colleagues describe how they randomly assigned 569 pregnant smokers to use e-cigarettes and 571 to use nicotine patches—a form of nicotine-replacement therapy that can already be prescribed during pregnancy. The participants were, on average, 15.7 weeks pregnant and smoked 10 cigarettes a day.
Only 40 percent of those given e-cigarettes and 23 percent of those given patches used their allocated product for at least four weeks. However, both uptake and duration of use during the study was higher among those given e-cigarettes.
After excluding participants who self-reported not smoking but who used nicotine products other than those allocated to them—for example, those in the group given patches who used e-cigarettes—the team found those given e-cigarettes appeared to do better at quitting smoking.
May 18, 2022
PMI Releases New Integrated Report

Photo: Tobacco Reporter Archive
Philip Morris International released its third annual Integrated Report, which includes an updated Statement of Purpose, a new environmental, social and governance (ESG) framework as well as detailed information about PMI’s strategic vision, performance, governance and value creation model. The content was informed by a formal sustainability materiality assessment conducted in 2021.
“Sustainability and business performance are fully interrelated and mutually reinforcing. Our actions—grounded in data, science and facts—speak louder than words. PMI is committed to serving as an agent of change and advocate of positive values. We understand that our business must become a provider of effective alternatives to continued smoking for adult smokers who don’t quit. To achieve this, we are positioning ourselves at the forefront of consumer centricity, technology, science and innovation. With an eye to the long term, we are also expanding our business into areas beyond tobacco and nicotine, such as wellness and healthcare,” said Jacek Olczak, CEO of PMI, in a company press release.
The company’s 2021 sustainability materiality assessment helped identify the ESG issues on which PMI should prioritize and focus its resources. PMI subsequently redesigned its ESG framework, recognizing two distinct topic areas: those related to PMI’s products and those related to its business operations. This distinction forms the basis of PMI’s new approach to sustainability, which consists of eight clear impact-driven strategies that aim to address its most material ESG topics. These eight strategies—four aimed to address the impact of PMI’s products and four aimed to address the company’s operational impact—are accompanied by a robust framework of nine governance-related factors.
“I’m proud to be able to say that our executive compensation program now reflects our commitment to put sustainability at the core of our corporate strategy,” said Emmanuel Babeau, chief financial officer at PMI. “PMI’s Sustainability Index aligns us even further with the interests of shareholders and other stakeholders, forming a strong link between our executive compensation practices and the company’s short-[term] and long-term ESG performance.”
May 18, 2022