HongyunHonghe Meets on Spirit of NPC Session, Reports Situation of Operation

Source from:  HongyunHonghe Group 03/22/2010

The HongyunHonghe Tobacco Group in southwest China's tobacco-producing Yunnan Province - the largest Chinese tobacco manufacturer - held a teleconference on March 18 to study the spirit of the just-concluded third annual plenary session of the 11th National People's Congress (NPC), and to report the situation of economic operation of HongyunHonghe in the first two months of 2010.

The third annual plenary session of the 11th NPC was held in Beijing on March 5-14. It was a major gathering of the NPC - China's national legislature - taking place at a time when China is making continued efforts to deal with impacts of global financial crisis, maintain stable and relatively rapid economic development, and accelerate the process of shifting the mode of economic growth. In an address to teleconference, HongyunHonghe President Zhu Shaoming - who was a deputy to the NPC session on behalf of the tobacco industry of Yunnan - said that he feels honored to have attended the meeting, and that he also feels being under a glorious mission and great responsibility. What most deeply impressed him at the meeting were such phases as "determination and confidence, crises and mission, targets and orientation", according to Zhu. Zhu said that as HongyunHonghe still faces a harsh situation in business development this year, how to well implement the spirit of the NPC session in accordance with the practical work of HongyunHonghe is an imperative task. To this effect, Zhu put forward the following requirements: Firstly, it is imperative to clearly understand the current circumstance and the general situation, unify ideological understanding onto the target of development of the group, and make concerted efforts from the top to the bottom levels, in order to realize a shift of HongyunHonghe onto a powerful enterprise from a large tobacco manufacturer. Secondly, it is imperative to rectify the way of thinking, specify the development targets, start to formulate the development plan of HongyunHonghe in the 2011-1015 five-year period, attach importance to the definition of the development of competitive brands, specify the development guideline of HongyunHonghe, attach greater importance to the combination of immediate targets and medium-term targets with long-term targets, and make the work of development forward-looking and active. Thirdly, it is imperative to reform the structure of resources, give preference to the production of higher grade cigarettes, and find a new way of development suitable to the situation of HongyunHonghe. And fourthly, it is imperative to realize independent innovation, and strive to realize promotion to a higher level in a package of five respects. Speaking on the same occasion, Vice-President Xu Liwei of HongyunHonghe reported the situation of economic operation of the group in the first two months of 2010, saying that in the two-month period, HongyunHonghe saw all its economic targets grow steadily and show a favorable trend of development and operation: The sales of Grades One, Two and Three cigarettes went up year-on-year, with product sales concentrated onto core brands and key competitive brands. HongyunHonghe registered steady growth of both taxes and profits, with the payment of taxes going up year-on-year. In economic operation in a next period of time, Xu said that efforts should be made to ensure continued steady development, seize all development opportunities, promote business development despite difficulties, step up reform of the structure of existing cigarette products, rationally control the ratio of inventories to sales, earnestly study the cost of formula development, raise work efficiency, reduce the consumption of raw materials, strengthen control over costs and spending, strictly manage budgets on a full scale, strive to develop overseas markets, and promote basic management on a full scale, in order to pay the way for realization of the development targets of HongyunHonghe in the 2011-2015 five-year period. Enditem