China's Tobacco Industry Sees Steady Development in 2007

Source from:  China Tobacco 02/21/2008

The tobacco industry of China saw a steady development in 2007 year, registered balanced growth of both cigarette production and sales, and reasonable stocks. Cigarette products structure went up, price kept stable, and economic efficiency went up steadily in 2007. Prices of key brands kept steady, and had an excellent result in market. Key enterprises' competitiveness is increasing. Data and analysis Cigarette production Tobacco industry sold 2141.38 billion cigarettes in domestic market in 2007, up 5.9 percent year-on-year. Grade one, Grade Two and Grade Three cigarette occupies 5.88 percent, 7.22 percent and 19.99 percent in the whole industry respectively, up from 4.22 percent, 5.66 percent and 17.10 percent of last year respectively. Meanwhile, the average proportions of Grades Four and Five cigarettes in the total cigarette output of it were respectively 35.15 percent and 31.76 percent, down 0.78 percent and 5.13 percent from the levels of 35.93 percent and 36.89 percent in 2006. Cigarette sales Cigarette industry sold 213.95 billion cigarettes (42.7918 million cases) in 2007, up 5.1 percent year-on-year. Industry sold about 3.566 cases cigarettes per month in 2007, increased 0.201 million cases from 3.365 million cases of 2006. Top 10 cigarette brands of grade one sold 1.9814 million cases, occupied about 81.6 percent in 2.427 million case of the total sales volume of grade one cigarettes, up 5 percent from 76.6 percent of last year. Top 10 cigarette brands of Grade Two sold 2.0463 million cases, occupied about 69.39 percent in 2.9489 million case of the total sales volume of Grade Two cigarettes, up 4.84 percent from 64.55 percent of 2006. Cigarette inventories At the end of Dec. 2007, the cigarette inventories on the part of China's tobacco industry reached 122.02 billion cigarettes (2.44 million cases), kept in a normal level. In 2007, the average monthly cigarette inventories in the year standing at 2.65 million cases, increased 0.159 million cases from 2.491 million cases of 2006. Taxes and profits In 2007, the tobacco industry generated 388 billion yuan in manufacturing and commercial taxes and profits, an increase of 20 percent over 2005, with the amount of manufacturing taxes and profits going up 24.7 percent year-on-year, and with the amount of commercial taxes and profits going up 26.7 percent year-on-year. In the year, the tobacco industry earned over 160.3 billion yuan in manufacturing and commercial profits, an increase of 31.8 percent over 2005, with the amount of manufacturing profits going up 35.6 percent year-on-year, and with the amount of commercial profits reaching 99.8 billion yuan, up 29.6 percent year-on-year. Low grade cigarettes In 2007, cigarette industry produced about 700.31 billion cigarettes of low grade cigarette, decreased about 7.56 percent from the same period of last year. In the year, cigarette industry sold about 700.95 billion cigarettes (14.019 million cases), decreased 6.43 percent from the same period of last year. Key brands In 2007, cigarette industry produced 173 brands, decreased 53 from that of 2006. Industry produced 885 types cigarettes, decreased 194 from 1079 of 2006. By the end of 2007, there are two brands ( Hongmei and Baisha) , which production and sales volume over 2 million cases in China cigarette industry; there are 13 brands, which production and sales volume over 1 million cases, including Hongjinlong, Honghe, Hademen and Huangguoshu brands; there are 19 brands, which sales value over 10 billion yuan. Top 10 brands of popular brands have 37.8 percent of total cigarette industry, up 5.9 percent than last year. Enditem