Hongyun Group Generates Record Amount of Taxes, Profits in January-September

Source from:  Hongyun.com 10/29/2007

Hongyun Group in southwest China's tobacco-producing Yunnan Province - the second largest Chinese tobacco manufacturer - generated a record 17.3 billion yuan (2.3 billion U.S. dollars) in taxes and profits in the first nine months of 2007, a sharp increase of 33 percent year-on-year, with the output and sales volume of its big competitive Yunyan cigarette brand reaching 840,000 cases (42 billion cigarettes), and the Red Camellia 1.02 million cases (51 billion cigarettes). From January to September, the amount of taxes and profits from the production and sales of Yunyan also reached a record high of 11.3 billion yuan (1.5 billion U.S. dollars). Shortly after its incorporation on the basis of the merger of Kunming and Qujing Cigarette Factories in Yunnan, Hongyun Group, in line with the business development goals of China's tobacco industry and in light of its own realities and characteristics of business development, set a grand target in 2006 to spend some three years in increasing the annual amount of taxes and profits from the production and sales of Yunyan to over 10 billion yuan (over 1.33 billion U.S. dollars) and increasing the annual output of the Red Camellia to over 1 million cases (over 50 billion cigarettes). In early 2007, Hongyun Group moved up the time limit for fulfilling this target to the end of the year instead of the end of 2008, after defining 2007 as the year of its rapid growth. Judged by the current momentum of rapid growth, Hongyun Group is expected to see the annual output of Yunyan also increase to over 1 million cases (over 50 billion cigarettes) by the end of 2007. Moreover, Hongyun's leading subsidiaries based in Yunnan - Kunming Cigarette Factory, Qujing Cigarette Factory, Huize Cigarette Factory and Kunming Cigarette Branch Factory - are expected to generate over 20 billion yuan (2.67 billion U.S. dollars) in taxes and profits in the whole of 2007, an anticipated year-on-year increase of 40 percent or even higher. Enditem