<strong>China: HongyunHonghe Board of Directors Chairman Inspects Xinjiang Cigarette Factory</strong>

Board of Directors Chairman Gu Hong of HongyunHonghe Tobacco Group led a delegation to inspect Xinjiang Cigarette Factory of HongyunHonghe in northwest China's Xinjiang region on October 22, requiring the factory to strengthen management, raise efficiency and promote corporate development with fine performances.

Gu Hong paid on-site visit to the various production workshops at Xinjiang Cigarette Factory and held talks with managers at the middle level and higher there. Director Cheng Zhenxi of Xinjiang Cigarette Factory reported to the delegation the situation of production and operation of the factory in the January-September period, progress in the execution of the project of relocation and technological transformation of the factory, the work of basic management of the factory, etc.

Gu Hong pointed out that after its relocation from Kuytun in northwestern Xinjiang to the regional capital city of Urumqi, Xinjiang Cigarette Factory has undergone great changes, expressing heartfelt gratitude to the staff members and workers of the factory for their efforts on behalf of the leadership of HongyunHonghe.

Gu Hong required Xinjiang Cigarette Factory to strengthen internal regulation and management, practically raise economic efficiency, strengthen efforts for promoting the work of basic management, particularly efforts in terms of the work of lean management and benchmarking, etc, sufficiently understand the great significance of the planning for reform leading to "two unifications and two integrations" launched by China Tobacco Yunnan Industrial Co., Ltd., strengthen human resources development, care for the life of employees, and promote development of both China Tobacco Yunnan Industrial Co., Ltd. and HongyunHonghe with practical actions and fine work performances.

"Two unifications" refer to unification of management by China Tobacco Yunnan Industrial Co., Ltd. over the businesses of marketing on the part of its affiliated Hongta Group and HongyunHonghe Tobacco Group and unification of new products research and development by the two groups. Meanwhile, "two integrations" refer to integration of the existing cigarette brands and integration of the existing enterprises engaged in business diversification under Hongta Group and HongyunHonghe Tobacco Group. The "two unifications and two integrations" both are intended to further optimize the distribution of resources in the interest of realizing sustainable, healthy and steady development of the tobacco manufacturing enterprises in Yunnan. Enditem