Hongta Group Fruitful in Systemic Reform, Brands Development

Source from:  Hongta.com 02/23/2006

Hongta Group in southwest China's Yunnan Province - the largest Chinese tobacco manufacturer - has made great achievements in the reform of its management system and in the development of competitive cigarette brands over recent years. In 2005, Yuxi(The Jade Stream), Mount Hongtashan and Hongmei (The Red Plum Blossom) of Hongta Group were all rated among well-known Chinese brands. In the year, Hongta Group was rated among the 100 strongest Chinese enterprises and was rated as a most influential wealthy enterprise in China. Yuxi Cigarette Factory -- the tobacco manufacturing core of Hongta Group - won the title as a national-level civilized institution in China for the year 2005. After aquiring Chuxiong and Dali Cigarette Factories in the same province, Hongta Group has focused its energy on the development of leading competitive cigarette brands of the high, medium and low grades under the guideline of "further improving the quality of Yuxi, strengthening the capacity of Mount Hongtashan and enlarging the output of Hongmei," to meet the demands of consumers at all levels. In the year, the group managed to rapidly conduct reforms or readjustments in terms of mechanisms or systems, contributing to effectively promoting the capacity of the enterprise and its brands to suit the development of markets. In an effort to significantly improve the quality of products, Hongta Group has invested a great deal of human and material resources in the establishment of a system of leaf tobacco regarding, contributing to raising the purity of leaf tobacco for cigarette production. Moreover, the group has introduced a model of well-proportioned leaf tobacco threshing and redrying and the technology of biochemical treatment of leaf tobacco, raising the stability of quality of strips and suitability of leaf tobacco for technological processing, and ensuring the supply of high-quality leaf tobacco for its cigarette production. In early 2005, Hongta Group invested over 1 billion yuan (123 million U.S. dollars) in conducting three large-scale technical transformations, contributing to improving the quality of its cigarette products on a full scale. In 2005, Hongta Group succeeded in developing a series of new products, winning recognition of both consumers and markets with novel packaging and comfortable flavor. In the year, Hongta Group produced and sold 132.5 billion cigarettes (2.65 million cases), including 2.3 billion cigarettes (46,000 cases) exported, earning 22.8 billion yuan (2.81 billion U.S. dollars) in sales income, including 17.5 billion yuan (2.15 billion U.S. dollars) in taxes and profits. With its business development based on reliable marketing and successful operation, Hongta Group was in a trend of sustained, steady, sound and harmonious development throughout the year. Enditem