China: Jiangxi Tobacco Corp. Gets Good Report Card on Operation in 2006-2010

Source from:  TobaccoChina Online 01/10/2011

Jiangxi Provincial China Tobacco Industry Corporation - the operator of the tobacco industry in south China's Jiangxi Province - has recently reported that it earned an unprecedented 38 billion yuan (5.7 billion U.S. dollars) in total sales income in the 2006-2010 five-year period, including 22 billion yuan (3.3 billion U.S. dollars) in taxes and 2.8 billion yuan (418 million U.S. dollars) in profits. It was reported that in the 2006-2010 five-year period, Jiangxi Provincial China Tobacco Industry Corporation saw its annual cigarette production capacity steady grow to 55.9 billion cigarettes (1.118 million cases) in 2010 from 37.55 billion cigarettes (751,000 cases) in 2005, up 48.9 percent. It succeeded in enlarging its annual cigarette production capacity to 50 billion cigarettes (1 million cases) in 2008, two years ahead of the target set by the provincial government of Jiangxi. In the development of cigarette brands, Jiangxi Provincial China Tobacco Industry Corporation managed to focus all available resources on enlarging and strengthening its leading competitive Jinsheng cigarette brand. Through continued promotion of innovation of technology, brands and marketing, it realized sustained and steady development of Jinsheng. In the 2006-2010 five-year period, the total sales volume of Jinsheng went up by 119 percent, with the annual average growth reaching 24 percent. As a result, Jinsheng has become a leading competitive cigarette brand of China's tobacco industry and also a representative cigarette brand of the herbal aroma type in China. Along with increase of the annual production quotas for Jinsheng, and also along with further development of the Jinsheng brand family and continued improvement of the structure of Jinsheng brand cigarettes, Jiangxi Provincial China Tobacco Industry Corporation saw its economic efficiency keep increasing in the five-year period, with the amount of its taxes and profits growing to 6.21 billion yuan (927 million U.S. dollars) in 2010 from 3.1 billion yuan (463 million U.S. dollars) in 2005, up more than 100 percent. In particular, the amount of taxes paid by the corporation alone grew from 3.06 billion yuan (457 million U.S. dollars) in 2005 to 5.55 billion yuan (829 million U.S. dollars) in 2010, with a net annual increase of 500 million yuan (75 million U.S. dollars). In this way, Jiangxi Provincial China Tobacco Industry Corporation made great contributions to the socioeconomic development of Jiangxi Province in the 2006-2010 five-year period. Enditem