China Tobacco Hunan Industrial Co. Realizes Growth in Cigarette Production, Sales

Source from:  TobaccoChina Online 02/06/2013

China Tobacco Hunan Industrial Co., Ltd. in south central China’s Hunan Province realized coordinated growth in cigarette production and sales in 2012, with its economic efficiency continuing going up significantly, and with two of its leading competitive cigarette brands – Baisha and Furongwang – both meeting the ambitious "532" and "461" brands development strategies of China’s tobacco industry.

In 2012, China Tobacco Hunan Industrial Co., Ltd. produced 179.35 billion cigarettes (3.587 million cases), up 3.3 percent year-on-year, and produced 51.335 billion cigarettes (1.0267 million cases) under license, with its cigarette exports reaching a high of 2.45 billion cigarettes (49,000 cases). In the year, the corporation generated 52 billion yuan (8.26 billion U.S. dollars) in taxes and profits, up 23.6 percent year-on-year.

Leading competitive cigarette brands of the corporation showed a trend of robust development in 2012, and realized solid progress in going on international markets. In the year, the commercial sales volume of Baisha topped 150 billion cigarettes (3 million cases), and the commercial sales income of Furongwang topped 60 billion yuan (9.53 billion U.S. dollars). As a result, both Baisha and Furongwang met the ambitious "532" and "461" brands development strategies of China’s tobacco industry in the year.

In a work report delivered at the 2010 national tobacco work conference held in Beijing, Director-General Jiang Chengkang of the State Tobacco Monopoly Administration (STMA), for the first time ever, put forward the "532" and "461" brands development strategies.
The "532" development strategy provides that in a period of five years or longer, efforts will be intensified to develop two well-known cigarette brands each with an annual output of 5 million cases (250 billion cigarettes), three each with an annual output of 3 million cases (150 billion cigarettes) and five each with an annual output of 2 million cases (100 billion cigarettes).
And, the "461" development strategy provides that by the year 2015, efforts will be intensified to develop 12 highly influential cigarette brands each capable of generating over 40 billion yuan (5.9 billion U.S. dollars) in annual sales income, including six each capable of generating over 60 billion yuan (8.8 billion U.S. dollars) in annual sales income, and one capable of generating 100 billion yuan (14.8 billion U.S. dollars) in annual sales income.

In 2013, China Tobacco Hunan Industrial Co., Ltd. will make continued efforts to realize new development of both Baisha and Furongwang, with the single-case amount of sales income of Baisha expected to go up by 1,000 yuan (159 U.S. dollars), and with the annual production capacity of Furongwang expected to reach 67.5 billion cigarettes (1.35 million cases).

In the new year, China Tobacco Hunan Industrial Co., Ltd. will strive to strengthen its capacity of guaranteeing the supply of high-quality leaf tobacco for cigarette production. With innovation of brands, reduction of the content of tar and other harmful substances and solution of bottleneck problems in raw materials supply as priorities, China Tobacco Hunan Industrial Co., Ltd. will manage to strengthen scientific-technological innovation, strengthen internal management and supervision, ensure observation of both law and regulations in both production and operation, further strengthen the establishment of its investment management company and logistics center, foster new points of economic growth, strengthen the development of a corporate culture and human resources, and strengthen the soft development capacity of the corporation, in order to lay a solid foundation for realizing the target of increasing the annual production capacity of Baisha to 250 billion cigarettes (5 million cases) and the annual production capacity of Furongwang to 100 billion cigarettes (2 million cases) by 2015. Enditem