Eve's Shares Fail to Rise After Chinese Battery Maker Clears Out E-Cigarette Ties
Liao Shumin
DATE:  Mar 24 2021
/ SOURCE:  Yicai
Eve's Shares Fail to Rise After Chinese Battery Maker Clears Out E-Cigarette Ties Eve's Shares Fail to Rise After Chinese Battery Maker Clears Out E-Cigarette Ties

(Yicai Global) March 24 -- Shares of Eve Energy remained low after the Chinese firm, which has a stake in vaping firm Smoore International Holding, admitted that it makes batteries used in e-cigarette atomizers amid the tightening regulatory environment.

Eve Energy’s stock price [SHE: 300014] was 2.1 percent down at CNY68.15 (USD10.50) this morning after plunging nearly 15.9 percent yesterday.

The lithium battery maker, however, doesn't manufacture or sell e-cigarettes, the Guangdong province-based firm said in a statement on an investor platform yesterday.

On March 22, the Ministry of Industry and Information Technology revealed its plan to classify electronic cigarettes as tobacco products, which could have a huge impact on the booming market.

Eve Energy is also tied to the sector in other ways. The company said on March 17 that it has a 32.4 percent stake in Smoore, a major vaping technology firm. The latter's stock price [HKG: 6969] closed 27 percent lower yesterday. Meanwhile, shares of a big vape flavors maker, China Boton Group [HKG: 3318], fell 23 percent.

Vaping equities' declines prompted traditional tobacco firms' stock price surges yesterday but some of those gains were lost today. China National Tobacco's listed unit China Tobacco International rallied by nearly 24 percent yesterday, after which they were 3.5 percent down today. Huabao Flavours & Fragrances [SHE: 300741] was over 9 percent lower today after closing 4.8 percent higher yesterday.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Eve Energy,Smoore International,E-Cigarette