China: HongyunHonghe Holds Workers'' Meeting, Focusing on Development

Source from:  HongyunHonghe Group  02/04/2013

HongyunHonghe Tobacco Group in southwest China's tobacco-producing Yunnan Province – the largest Chinese tobacco manufacturer – held the second meeting of its second Congress of Workers and Staffers (Members) on January 29-30, with the discussions focused on the development of competitive cigarette brands and future business development targets.

At the first plenary session of the meeting held on January 29, HongyunHonghe CEO Wu Yi delivered a working report entitled Adhering to the Development Orientation, Locking on the Development Targets, Firming Up Confidence, and Striving to Promote Leaf-Forward Development of HongyunHonghe at A New Starting Point.

Wu recalled in the working report that in 2012, HongyunHonghe produced 257.855 billion cigarettes (5.1571 million cases), with the market size of cigarette brands of HongyunHonghe gradually expanding to 253.245 billion cigarettes (5.0649 million cases). In the year, HongyunHonghe generated 58.741 billion yuan (9.33 billion U.S. dollars) in taxes and profits, up 17.34 percent year-on-year, with the average single-case amount of taxes and profits reaching a high of 11,861 yuan (1,883 U.S. dollars), up 18.18 percent year-on-year. Also in the year, HongyunHonghe generally realized balanced development of cigarette production and marketing, with structural improvement, increase of value, growth in efficiency and enhancement of the capacity. HongyunHonghe has succeeded in maintaining the first place in terms of the resources under unified planning by the tobacco industry of China, the second place in terms of the scope of brands, and the third place in terms of the annual amount of taxes and profits, and has continued to maintain a favorable trend of sustained, coordinated and common development.

In accordance with its competitive cigarette brands development targets, HongyunHonghe has determined its central work for 2013: With enlargement of the annual production capacity of the competitive Yunyan cigarette brand family as a priority, with structural promotion as a leading line, with high-end guidance as a crux and with stable enlargement of the scope of production as a support, the strategy of developing big competitive cigarette brands and fine products shall be promoted; and with enlargement as a basis, with fine workmanship as a pursuit and with strengthening of the capacity as a target, efforts shall be made to significantly improve the quality of products, well develop specifications of competitive brands, make all categories of products more famous and promote the grading of cigarette products of HongyunHonghe to higher levels, in striving to play a principal and leading role in the development of Chinese-style cigarette products.

The working report also makes clear the "3617" business development target of HongyunHonghe for the year 2013:

In 2013, HongyunHonghe will strive to increase the industrial sales volume of cigarettes of its Yunyan cigarette brand to a total of 180 billion cigarettes (3.6 million cases), increase the commercial wholesales of cigarettes of its Yunyan cigarette brand to a total of 100 billion yuan (15.9 billion U.S. dollars), and realize a net growth of 7 billion yuan (1.12 billion U.S. dollars) in taxes and profits.

The working report puts forward the working priority of HongyunHonghe in 2013 – to enhance "four capacities" and realize "promotion to higher levels in three respects".

Namely, in 2013, HongyunHonghe will make efforts to enhance its marketing capacity, and well manage the work of "attaching importance to five aspects" in a highlighted way; enhance its scientific-technological innovation capacity, and strive to realize "strengthening of seven aspects"; enhance its raw materials supply guarantee capacity, and focus energy on well doing four points of work; enhance its basic management capacity, and practically realize "deepening of five aspects"; promote its human resources development to higher levels; promote its safe development to higher levels; and promote the development of its "soft capacity" to higher levels.

HongyunHonghe Board of Directors Chairman Yao Qingyan delivered a summary speech at the closing ceremony of the meeting on January 30, in which he analyzed and expounded on the development and competition situation of the tobacco industry of China in terms of development targets, responsibility, quality and painstaking efforts; both opportunities and challenges faced by HongyunHonghe in increasing the annual cigarette production capacity of the Yunyan cigarette brand family to a high of 250 billion cigarettes (5 million cases); and the various tasks, targets and measures of HongyunHonghe in its business operation in 2013. Yao also put forward specific targets for business development, and a package of requirements for strengthening responsibility, attaching importance to quality control and making painstaking efforts to realize promotion in the new year. Enditem