<strong>China: STMA Deputy Chief Inspects HongyunHonghe</strong>

Source from:  HongyunHonghe Group 06/27/2014

Deputy Director-General Zhao Hongshun of the State Tobacco Monopoly Administration (STMA) led a delegation to inspect HongyunHonghe Tobacco Group and its affiliated Kunming Cigarette Factory in southwest China's tobacco-producing Yunnan Province on June 10, hearing reports on operation and giving instructions on future business development.

The delegation also included STMA Investment Company General Manager Sun Guifang and STMA Tobacco Monopoly Department Deputy Director Guan Hongmei.

Accompanying the delegation on the inspection were Yunnan Provincial Tobacco Monopoly Administration (Tobacco Company) Deputy Director Zhao Quan, and China Tobacco Yunnan Industrial Co., Ltd. Deputy General Managers Gu Bo and Gao Xingzhi.

HongyunHonghe leaders including Gu Hong, Wang Jiashou and Tian Dongming, Board of Directors Secretary Luo Jianhua, and Kunming Cigarette Factory leaders Fan Xiao, Liu Hao, et al. received the delegation.

During the inspection, the delegation visited the leaf tobacco cutting line, cigarette rolling and packing line and distribution line as well as the cultural exhibition hall at Kunming Cigarette Factory, elaborately asking about the operation of equipment, the annual production capacity, cost control, quality control, etc.

In front of the leaf tobacco cutting line, Zhao asked in detail about control over water content in leaf tobacco cutting and the workflow of alcoholization of cut tobacco. Visiting the cigarette rolling and packing line, Zhao asked about relevant information on the efficiency of operation of the cigarette rolling and packing units there, and affirmed the elite tobacco manufacturing equipment and orderly production management at Kunming Cigarette Factory.

In ensuing talks held during the inspection, HongyunHonghe Board of Directors Chairman Gu Hong reported to the delegation the cigarette output, economic operation and the generation of taxes and profits by HongyunHonghe, and said that HongyunHonghe would actively plunge itself into reform launched by China Tobacco Yunnan Industrial Co., Ltd. Leading to "two unifications and two integrations".

"Two unifications" refer to unification of management by China Tobacco Yunnan Industrial Co., Ltd. over the businesses of marketing on the part of its affiliated Hongta Group and HongyunHonghe Tobacco Group and unification of new products research and development by the two groups. Meanwhile, "two integrations" refer to integration of the existing cigarette brands and integration of the existing enterprises engaged in business diversification under Hongta Group and HongyunHonghe Tobacco Group. The "two unifications and two integrations" both are intended to further optimize the distribution of resources in the interest of realizing sustainable, healthy and steady development of the tobacco manufacturing enterprises in Yunnan.

After hearing reports on the operation of HongyunHonghe, Zhao nodded in affirmation. He pointed out that HongyunHonghe needs to play a leading and model role in the crucial link of reform leading to "two unifications and two integrations" launched by China Tobacco Yunnan Industrial Co., Ltd. He expected HongyunHonghe to act as a model for supporting reform, and give full play to its role as a corporate vanguard with the first-rate manufacturing capacity and lean production management.  Enditem