Beware of debt risks in the e-cigarette industry: How do the operating difficulties of a single enterprise affect the entire industry chain?

Beware of debt risks in the e-cigarette industry: How do the operating difficulties of a single enterprise affect the entire industry chain?

Debt risks in the e-cigarette industry are quietly approaching. Operational slowdown and debt undercurrents are intertwined. How does the predicament of one enterprise affect the entire industry chain?

Disclaimer:

[1] This article is limited to the global atomization industry research and does not involve any brand and product recommendations.

[2] This article is only used as a reference for the development of the global atomization industry and does not involve any capital market evaluation or investment advice. This article should not be used as any investment basis.

[3] The scope of this article is limited to the business field and does not involve any comments on regulatory policies.

Beware of debt risks in the e-cigarette industry

Operational slowdown and debt crisis undercurrent: How does the predicament of a single enterprise affect the entire industry chain?

In early 2024, the debt crisis of Aroma King, a well-known European e-cigarette brand, surfaced. Many OEM factories and logistics companies were involved, and the amount of default was as high as more than 100 million yuan. (For details, see the report of Two Supremes: Aroma King, a well-known European e-cigarette brand, was exposed to owe Chinese suppliers a huge amount of money)

In Aroma King's response to the Two Supremes, it admitted that the brand suffered economic losses due to quality control problems and is currently undergoing restructuring.