<strong>China: HongyunHonghe Holds Board of Directors Meeting</strong>

Source from:  HongyunHonghe Group  05/20/2013

HongyunHonghe Tobacco Group in southwest China's tobacco-producing Yunnan Province – the largest Chinese tobacco manufacturer – held on May 10 a Board of Directors meeting on a broad range of essential issues including production, operation and management.

In an address delivered at the meeting, HongyunHonghe CEO Wu Yi reported the situation of production, operation and management at HongyunHonghe in the January-April period.

The meeting sufficiently discussed the appointment and dismissal of senior executives, reform of the structure of interdepartmental management institutions, budgetary implementation, final financial accounting, prearrangement of wages, disposition of assets, donation, tender invitation, etc.

The meeting reviewed a number of proposals and put forward a package of constructive opinions and suggestions.

Also speaking at the meeting, Board of Directors Chairman Yao Qingyan emphasized that in face of pressure brought about by big competitive cigarette brands of China's tobacco industry to meet the "532" and "461"　development targets, HongyunHonghe, from the top to the bottom levels, needs to further understand the current situation, unify thinking, practically enhance the sense of crisis, the sense of responsibility and the sense of mission, wholeheartedly conduct business operation, seize all favorable opportunities, strive to solve hard technical problems, and go all out to practically and well manage all aspects of work, to ensure complete fulfillment of all targets and tasks for production, operation and management in the whole year, and to lay a solid foundation for HongyunHonghe’s realization of leap-forward development in the 2011-2015 five-year period.

Specifically, the　"532"　brands development strategy provides that in the 2011-2015 five-year period, the tobacco industry will strive to develop two well-known cigarette brands each with an annual output of 5 million cases (250 billion cigarettes), three each with an annual output of 3 million cases (150 billion cigarettes) and five each with an annual output of 2 million cases (100 billion cigarettes).

And, the "461" brands development strategy provides that in the 2011-2015 five-year period, the tobacco industry will strive to develop 12 highly influential cigarette brands – five each capable of generating over 40 billion yuan (6.35 billion U.S. dollars) in annual sales income, six each capable of generating over 60 billion yuan (9.53 billion U.S. dollars) in annual sales income, and one capable of generating 100 billion yuan (15.9 billion U.S. dollars) in annual sales income.

Over the past three years since their unveiling, the "532" and "461" strategies have both been largely put to implementation, with rapid growth of a number of well-known big competitive brands of Chinese-style cigarettes with clear definition and unique characteristics. Enditem