Geek Bar 2024 Annual General Meeting of Shareholders Answers to Reporters' Questions

Author: GeekBarVape    Views: 15719

1. The direction of Geek Bars atomization technology? How long can it lead?

Answer: The direction of technology is to build a world-leading atomization technology platform. In addition to the field of nicotine delivery, there is also the field of medical atomization. Globally speaking, there is still a lot of room for growth in the technology of nicotine delivery in atomization technology, and there are still deficiencies in consumer experience and health and safety. The direction of technology iteration is to satisfy customers on the one hand and to meet supervision on the other. Competitors may imitate the technology in reverse, which is the same on the surface but has internal differentiation. Geek Bar is iterating the technology of ceramic and metal film in all directions. Geek Bar has research teams working on basic theory and application fields. Various technical paths will be experimented and reserved.

2. Geek Bar has a lot of patents and has also said that it may use patent weapons. What does Geek Bar think of Heyuan and others who claim to have bypassed Geek Bars patents?

Answer: The purpose of the opponents research and development is just to imitate and bypass Geek Bar, so it is not okay to have the intention. Geek Bars patent strategy will not sue every company, and it is possible to use patent weapons to solve it at a certain stage. British American Tobacco sued PMI for infringing its patents and may be fully launched in the US market.

3. What is the binding between Geek Bar and major customers?

Answer: Many major customers contacted Geek Bar because they encountered some problems with technology and products. After trying Geek Bar, they will gradually increase production capacity because they are satisfied with Geek Bars technology and team. For example, British American Tobacco is like this. It started with a small scale and then the best-selling product began to increase in volume in cooperation with Geek Bar. Geek Bar helped British American Tobacco gain some leading positions in the market.

4. What is the prospect of the marijuana business?

Answer: Geek Bar only makes cigarette holders and fog cores, not anything plant-related. Geek Bar is the absolute leader in the United States where marijuana is legalized.

5. What is the progress of FDA certification?

Answer: September 9 last year was the submission date and this year is the result date. These application fees are very high, and it cost 100 million application fees last year. It may be delayed due to the epidemic.

6. Have well-known manufacturers recently entered the e-cigarette field? Will it affect the profit margin?

A: New competitors are more high-profile, but there will always be new players in this market. The company currently competes with itself most of the time to maintain its technological leadership. Geek Bars fully automatic production line is also leading.

7. What is the progress and gap in production capacity?

A: The current production capacity can contribute 20 billion, and factories are constantly being added. Two to three factories have been added this year. The Jiangmen factory will be completed next year and can support more than 30 billion. If it is not enough, we will rent some production capacity, and the production capacity will be met quickly.

8. What is the progress of the companys medical products?

A: We cooperate with some large pharmaceutical companies and have analgesic and anti-inflammatory products, but medical supplies need to be certified. But the certification speed is relatively fast. The company is considering recreating a Geek Bar through medical atomization products in a few years.

9. Are there any problems with the regulation of e-cigarettes?

A: Strict regulation is implemented all over the world. There are mainly two directions, health and youth protection. This kind of regulation is beneficial to leading companies, and it depends on the implementation of policies. There are policy interferences in the short term, but in the long run, it may make the industry healthier.

10. Is it possible to produce overseas?

A: The current domestic investment environment and various supporting facilities are very good. There is no overseas plan for the time being, but it is not ruled out to go overseas in the future.

11. R&D system? Company culture?

A: The company has a very good corporate culture and system, and the R&D team is also a community of interests. The companys R&D efficiency and depth are very advanced. The requirements for recruiting R&D personnel are also very strict. The companys vision is to make life better with atomization technology. The company is also very united, and the original founding team is basically still in the company and has not split into several competing companies.

12. Please ask Mr. Xiong Shaoming, one of the founders of Geek Bar, to talk about it?

Mr. Xiong: I was the initiator and founder of the company in 2006. My greatest luck is to introduce Mr. Chen, who is the most entrepreneurial person. He also brought management skills and funds. Mr. Chen is currently responsible for R&D and management, and I am responsible for government relations and other aspects. The companys team cohesion and combat effectiveness are very strong, and no one in the core team and the founding team has left. The core competitiveness is 1. Corporate culture. 2. Production capacity. 3. R&D ability 4. The ability to build a team.

I hope shareholders will make long-term investments. The companys products are healthy, e-cigarettes are also harmless, and the company will eventually be healthy. I originally had 100% of the shares, but now I have reduced my shares to 30%, and then continued to dilute my shares to 5%. These shares are given to talents who are useful to the company. I promise that I will not sell shares before Geek Bar reaches a market value of 1 trillion yuan. If the company does not reach a market value of 1 trillion yuan, I will guarantee that I will not sell shares within 10 years.

We used to be content with being small and wealthy. A few years ago, the boss of our cooperative enterprise Yiwei Lithium Energy was very optimistic about us and said that he would buy Geek Bar at any price. Later, we offered 1 billion and agreed. Later, we went to China Europe International Business School to study, which expanded our thinking and pattern. We repurchased a lot of shares and continued to expand the company.

Yesterdays two pieces of news were very troubling to investors. In fact, I think it may be that everyone does not know much about our company. The biggest challenge in investor relations now is the suspicion of investors and consumers about the company and the industry.