Under the agreement, the joint venture will obtain exclusive distribution rights for specific e-cigarette brands within a designated region, primarily focusing on the Middle East market. The joint venture will distribute e-cigarette products from LOST MARY, a global e-cigarette giant, and will gradually expand its business presence in the Middle East market, starting with Saudi Arabia, Iraq, and Egypt. The Middle East e-cigarette market is projected to reach $3.5 billion by the end of 2025, with a compound annual growth rate of 21%.
In addition, another wholly-owned subsidiary of HSSP INTL (Alpha Six Three) has entered into a professional services agreement with a service provider to facilitate the registration and import of HEAPS e-cigarette products in Australia. Previously, this wholly-owned subsidiary established a branch in New Zealand in November 2024 to launch e-cigarette sales operations. The service provider will assist the company in completing the regulatory processes required to enter the Australian market and expand its presence there.
Chairman Lu Xiaoma stated that the booming development of the global new tobacco market and the company's latest moves demonstrate its determination to enter the new tobacco field.
In addition to business cooperation, and to better reflect the listed company's future business plans and development direction, the Board of Directors of HSSP INTL recommends changing the name of the listed company HSSP INTL to East Nova Holdings Limited. This name change proposal will be submitted to the upcoming Annual General Meeting for approval.
The partners of HSSP INTL this time are all industry giants.
The Middle Eastern partner, COTY, is a Dubai-based diversified investment holding company with strategic platforms in the alternative nicotine, technology, and retail sectors. Leveraging its extensive market network, regulatory expertise, and broad distribution and retail resources, COTY will support the joint venture in expanding into the high-growth markets of the Middle East.
E-cigarette giant HEAVEN GIFTS originated in 2007 and is one of China's earliest exporters of new tobacco products. As a leading company in the industry's overseas expansion, HEAVEN GIFTS established its independent trading platform in 2009, gradually becoming one of the preferred platforms for domestic e-cigarette products to go global. Between 2018 and 2021, HEAVEN GIFTS officially transformed from a channel trader into the owner of global brands, successively launching e-cigarette brands such as ELFBAR and LOST MARY. Today, HEAVEN GIFTS's business spans more than 100 markets worldwide, with over 100,000 retail outlets globally, serving more than 50 million adult users worldwide.
ELFBAR: Founded in 2018, ELFBAR has always been at the forefront of innovation. With a vision to create a smarter and more enjoyable vaping experience, ELFBAR deeply understands users' needs for natural flavors and personalized experiences.
LOST MARY: Committed to breaking the constraints of traditional product forms, embracing innovation in all aspects from technological exploration and product design to taste experience.
ELFLIQ: Committed to creating mesh-friendly e-liquid products with high flavor fidelity and consistency for users.
QUAQ: Founded in 2022 by seasoned technical experts in the electronic atomization industry. As of October 2024, it boasts its own laboratory, a professional R&D team of over 230 people, and more than 2,312 patent applications worldwide, and has become a key force driving innovation in atomization technology.
