Financial Performance - The company reported a revenue of HKD 1.2 billion for the fiscal year 2023, representing a 15% increase compared to the previous year[1]. - The company achieved a revenue of HKD 11,836,221 thousand for the year 2023, representing a 42% year-on-year increase compared to HKD 8,324,205 thousand in 2022[12]. - Total revenue for the year ended December 31, 2023, was HKD 11,836,221 thousand, an increase of 9.9% from HKD 10,747,897 thousand in 2022[188]. - Operating profit for 2023 reached HKD 1,026,455 thousand, up 46.5% compared to HKD 700,672 thousand in 2022[188]. - Net profit for the year was HKD 692,373 thousand, representing a 49.2% increase from HKD 464,160 thousand in the previous year[188]. - The net profit attributable to equity holders of the company was HKD 598,773 thousand, a 60% increase from HKD 374,905 thousand in the previous year[12]. - Basic and diluted earnings per share increased to HKD 0.87 from HKD 0.54, reflecting a growth of 61.1%[188]. - The gross profit margin improved to 40%, up from 35% in the previous year[1]. - The company reported a gross profit of HKD 1,088,324 thousand, which is a 35.0% increase from HKD 806,389 thousand in 2022[188]. Market Expansion and Strategy - The company expects a revenue growth of 10% for the next fiscal year, projecting a target of HKD 1.32 billion[1]. - New product launches are anticipated to contribute an additional HKD 200 million in revenue in 2024[1]. - The company is expanding its market presence in Southeast Asia, aiming for a 25% market share by 2025[1]. - A strategic acquisition of a local competitor is expected to enhance operational efficiency and increase market penetration[1]. - The company is committed to expanding its market presence in non-China markets and enhancing the competitiveness of its products[13]. - The company plans to enhance its operational capabilities and focus on sustainable development to ensure stable cash flow and long-term returns for shareholders[15]. - The company aims to explore investment and acquisition opportunities that create synergies with its strategic and business goals[15]. Supply Chain and Procurement - The company has established a long-term supply agreement with key suppliers to ensure product availability and cost stability[1]. - The company is focusing on improving the efficiency of its supply chain and optimizing pricing strategies to enhance profitability in the tobacco leaf business[15]. - The procurement transaction amount for tobacco leaf products during the reporting period was HKD 249.1 million, accounting for approximately 3.2% of the total procurement amount for tobacco leaf products[64]. - The total procurement amount from related party transactions at the issuer level was HKD 3,088.5 million, which is approximately 27.6% of total procurement during the reporting period[37]. Related Party Transactions - The total revenue from related party transactions at the issuer level was HKD 8,079.0 million, accounting for approximately 68.3% of total revenue during the reporting period[37]. - The total revenue from related party transactions at the subsidiary level was HKD 965.5 million, representing about 8.2% of total revenue during the reporting period[37]. - The company has established exclusive and long-term supply framework agreements for both imported and exported tobacco leaf products, which are indefinite unless terminated by the company[39][42]. - The company has been authorized by the Stock Exchange to be exempt from strict compliance with annual caps for sales transactions under the imported tobacco leaf products framework agreement[41]. Financial Position and Assets - Current assets net value increased to HKD 2,216.0 million as of December 31, 2023, from HKD 1,824.1 million as of December 31, 2022[29]. - Total assets amounted to HKD 6,740.4 million as of December 31, 2023, compared to HKD 6,370.5 million as of December 31, 2022[33]. - Total liabilities decreased to HKD 4,045.1 million as of December 31, 2023, from HKD 4,132.9 million as of December 31, 2022[33]. - The debt-to-equity ratio was 0.92 as of December 31, 2023, compared to 0.94 as of December 31, 2022[34]. - The current ratio improved to 1.55 as of December 31, 2023, from 1.45 as of December 31, 2022[34]. Governance and Compliance - The company emphasizes compliance and governance, with independent non-executive directors bringing diverse experience from various industries[102]. - The independent non-executive directors confirmed that the continuing connected transactions were established under fair and reasonable terms and in accordance with regulatory agreements[93]. - The company has established an ESG task force to collect and report annual ESG data and monitor compliance with relevant laws and regulations[113]. - The company has maintained compliance with corporate governance standards and has adopted applicable principles from the Corporate Governance Code[138]. Employee and Management - The company will continue to invest in talent development and employee welfare to enhance workforce productivity and creativity[14]. - The company has a strong management team with extensive experience in finance and tobacco industry, including Qian Yi, who has 14 years of experience in the tobacco sector[105]. - The workforce comprises 281 full-time junior employees, 30 full-time middle management, and 12 full-time senior management, with a gender distribution of 84.10% male and 15.90% female among junior staff[161]. Risks and Challenges - The group faces risks from global anti-smoking movements and increasing consumer health concerns, which may lead to a decline in overall demand for tobacco products[112]. - Seasonal fluctuations may impact the group's performance, making it misleading to rely solely on revenue comparisons across different periods within the fiscal year[112]. - The export business of new tobacco products may encounter challenges due to evolving regulatory interpretations and implementations, potentially hindering growth[112]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.32 per share, which is a 60% increase compared to HKD 0.20 per share in the previous year[12]. - The company paid dividends of HKD 138,336,000 to equity holders, an increase from HKD 117,586,000 in the previous year, reflecting a commitment to returning value to shareholders[193].

港股公司报告 | 公司深度研究 中烟香港（06055） 证券研究报告 2024年04月 16日 投资评级 国内外需求回暖，践行走出去战略，中烟独家国际业务平台有望实 现高质量增长！ 行业 必需性消费/食物饮品 6个月评级 买入（维持评级） 一、中烟香港：中国烟草旗下独家国际业务平台，内生外延双轮驱动 当前价格 10港元 目标价格 17.2港元 中烟香港是中国烟草总公司（CNTC）指定的从事国际业务拓展平台及相关贸易业 务的独家营运实体，控股股东为中国烟草总公司及中烟国际集团有限公司。公司 独家运营烟叶制品进出口、卷烟出口至两国两地免税店及中国内地境内关外免税 基本数据 店、新型烟草制品出口等业务，并通过收购中烟巴西，开启巴西经营业务，进一 港股总股本(百万股) 691.68 步拓展深化产业链布局，提升盈利能力。2023年，公司实现营业收入118.36亿港 港股总市值(百万港元) 6,916.80 元，同比增加 42%，实现归属于公司权益持有人的净利润 5.99亿港元，同比大幅 每股净资产(港元) 3.61 增加 60%，此外，公司拟派发截至 2023年 12月 31日年度末期股息每股 0.32港 资产负债率( ...

公司动态 2024 年 3 月 15 日 中烟香港（6055.HK） 证券研究报告 食品饮料 业绩大幅增长 中烟香港（6055.HK）是中烟集团旗下唯一上市平台，主营烟叶进出口、卷烟出口、 投资评级： Xx 未评级 新型烟草出口业务。公司23年业绩突破历史新高，收入118亿港元，同比增长42%， 目标价格： 未评级 净利润6.9亿港元，同比增长49%，增长强劲。我们认为在全球烟叶供小于求的背 景下，公司仍将保持量价齐增的趋势，预期未来仍有稳健的增长。此外公司也计划 现价(2024-3-14)： 10.68港元 逐步提高派息比率，增加股东回报。当前PE-TTM仅为11x，推荐关注。 报告摘要 进口业务增速较高，量价齐升。23年烟叶进口业务为80.8亿港元，同比增长49%， 总市值(百万港元) 7,387.14 进口数量11.7万吨，同比增长27%，进口均价6.89万港元/吨，同比增长16.8%，实 流通市值(百万港元) 7,387.14 现了量价齐升。销量增长一方面受到国内烟叶需求增长的推动，另一方面22年发送 总股本(百万股) 691.68 的货物延迟到23年才到岸确认收入，带来收入的短期波动。并且，由于全球 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 21.3 HKD, compared to the current price of 10.94 HKD, indicating a potential upside of over 20% [1]. Core Views - The report highlights that the company has experienced significant growth in cigarette and new tobacco exports, with expectations for accelerated expansion in 2024. The company reported a revenue of 11.836 billion HKD in 2023, a year-on-year increase of 42.19%, and a net profit of 599 million HKD, up 59.72% year-on-year, exceeding previous profit forecasts [1]. Summary by Sections Revenue Breakdown - The company’s revenue sources include: - Tobacco leaf product exports generated 1.652 billion HKD in 2023, a decrease of 22% year-on-year, accounting for 14.0% of total revenue [1]. - Tobacco leaf imports saw revenue of 8.079 billion HKD, a 49% increase year-on-year, making up 68.3% of total revenue [1]. - Cigarette exports reached 1.209 billion HKD, a substantial increase of 876% year-on-year, contributing 10.2% to total revenue [1]. - New tobacco product exports generated 130 million HKD, an 18% increase year-on-year, accounting for 1.1% of total revenue [1]. - Operations in Brazil yielded 766 million HKD, a 41% increase year-on-year, representing 6.5% of total revenue [1]. Profitability Metrics - The gross profit margins for various segments were reported as follows: - Tobacco leaf exports had a gross margin of 2.7%, up 0.1 percentage points year-on-year [1]. - Tobacco leaf imports had a gross margin of 9.1%, down 2.4 percentage points year-on-year [1]. - Cigarette exports achieved a gross margin of 13.6%, an increase of 3.1 percentage points year-on-year [1]. - New tobacco products had a gross margin of 4.4%, up 1.5 percentage points year-on-year [1]. - Brazilian operations reported a gross margin of 18.4%, down 2.5 percentage points year-on-year [1]. Future Outlook - The company is positioned as the exclusive international business platform for China National Tobacco Corporation, which is expected to benefit from ongoing overseas expansion and potential acquisitions. The report anticipates revenue growth for 2024, 2025, and 2026 to be 13.636 billion HKD, 15.277 billion HKD, and 17.197 billion HKD respectively, with net profits projected at 695 million HKD, 778 million HKD, and 913 million HKD [1].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 11,836,221, representing a 42% increase compared to HKD 8,324,205 in 2022[2] - Gross profit increased by 35% to HKD 1,088,324 from HKD 806,389 year-on-year[2] - Net profit for the year was HKD 692,373, a 49% increase from HKD 464,160 in the previous year[2] - Operating profit rose to HKD 1,026,455, up 46% from HKD 700,672 in 2022[4] - The company reported a basic and diluted earnings per share of HKD 0.87, up from HKD 0.54 in the previous year[2] - The company's pre-tax profit for the year was HKD 615,629, with a net profit of HKD 464,160 after tax expenses of HKD 151,469[20] - The company's profit before tax for 2023 was HKD 859,059,000, an increase from HKD 615,629,000 in 2022, representing a growth of approximately 39.5%[30] - Net profit attributable to equity holders grew by 60% to HKD 598.8 million, supported by growth in tobacco products and interest income[56] Dividends - The company proposed a final dividend of HKD 0.32 per share, a 60% increase compared to HKD 0.20 per share in 2022[2] - The proposed final dividend is HKD 0.32 per share for the year ended December 31, 2023, compared to HKD 0.20 per share for 2022, totaling approximately HKD 221.34 million based on 691,680,000 shares issued[68] - The annual general meeting will be held on May 17, 2024, to approve the proposed final dividend[69] Revenue Sources - Revenue from leaf products sales reached HKD 10,496,971,000, up from HKD 8,089,659,000 in the previous year, marking a growth of about 29.8%[13] - The company generated approximately HKD 8,079,031,000 from a single customer, which accounted for over 10% of total revenue, compared to HKD 6,338,681,000 from two customers in 2022[14] - Revenue from external customers in China (excluding special administrative regions) increased to HKD 9,015,260 in 2023, up from HKD 5,517,101 in 2022, representing a growth of 63.5%[21] Costs and Expenses - Financing costs increased significantly by 97% to HKD 167,396 from HKD 85,043[2] - The cost of goods sold amounted to HKD 10,694,104 in 2023, compared to HKD 7,480,270 in 2022, indicating an increase of 42.5%[26] - Employee costs, including director remuneration, totaled HKD 102,807 in 2023, slightly down from HKD 103,105 in 2022[25] - The depreciation expense for owned properties and equipment was HKD 19,989 in 2023, compared to HKD 19,320 in 2022[26] Assets and Liabilities - Total assets less current liabilities amounted to HKD 2,742,782, an increase from HKD 2,294,526 in 2022[6] - Non-current assets totaled HKD 2,695,292, compared to HKD 2,237,590 in 2022[8] - The total assets for the reporting segments amounted to HKD 6,740,395,000, while total liabilities were HKD 4,045,103,000[19] - The total liabilities reported were HKD 4,132,931, with total assets amounting to HKD 6,370,521 as of December 31, 2022[20] - The group's current assets increased to HKD 2,216.0 million from HKD 1,824.1 million in 2022[58] Market and Business Strategy - The company continues to focus on expanding its export business for leaf products to Southeast Asia, Hong Kong, Macau, Taiwan, and Europe[15] - The company plans to focus on "internal growth and external expansion" in 2024, emphasizing the construction of a capital operation platform and innovative business development[50] - The company aims to optimize the procurement model for cigar tobacco leaves to enhance sales and gross profit, capitalizing on the growing domestic demand[50] - The company will strengthen pricing capabilities and stabilize the supply of imported tobacco leaves while enhancing profitability from exported tobacco leaves[50] - The company is committed to expanding its market presence and innovating business models to increase development space across various business lines[50] Compliance and Governance - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the current accounting period[11] - The company has complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2023[71] - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance for the year ended December 31, 2023, confirming that the financial statements are prepared in accordance with applicable accounting standards[73] Other Financial Metrics - Interest income rose significantly to HKD 99,181 in 2023, compared to HKD 31,757 in 2022, marking an increase of 212.5%[23] - The effective tax rate for Hong Kong profits tax was maintained at 16.5% for both 2023 and 2022[28] - The nominal tax calculated based on the applicable tax rate for the profit before tax was HKD 188,912,000 in 2023, compared to HKD 147,932,000 in 2022, reflecting a rise of about 27.6%[30] - The total current tax liabilities for 2023 were HKD 67,002,000, compared to a liability of HKD 38,819,000 in 2022, representing an increase of about 72.5%[31] Segment Performance - The import volume of tobacco leaf products reached 117,216 tons in 2023, an increase of 25,252 tons or 27% year-on-year, with revenue of HKD 8,079.0 million, up by HKD 2,654.3 million or 49%[45] - The export volume of tobacco leaf products decreased to 70,509 tons, down by 25,022 tons or 26%, with revenue of HKD 1,652.2 million, a decline of HKD 470.1 million or 22%[46] - The export volume of cigarettes surged to 2,803,867 thousand sticks, an increase of 2,420,560 thousand sticks or 631%, with revenue of HKD 1,208.7 million, up by HKD 1,084.9 million or 876%[47] - The export volume of new tobacco products reached 677,310 thousand sticks, an increase of 174,920 thousand sticks or 35%, with revenue of HKD 130.0 million, up by HKD 19.8 million or 18%[48] - CBT's exports of tobacco leaf products outside China amounted to 32,396 tons, an increase of 3,149 tons or 11%, with revenue of HKD 766.3 million, up by HKD 223.1 million or 41%[49]

Financial Performance - China Tobacco International (HK) reported a revenue of HKD 1.2 billion for the first half of 2023, representing a 15% increase compared to the same period last year[6]. - The company achieved a net profit of HKD 300 million, which is a 20% increase year-over-year[6]. - Revenue for the six months ended June 30, 2023, reached HKD 7,743.999 million, a 100% increase from HKD 3,869.412 million in the same period last year[14]. - Gross profit for the same period was HKD 745.345 million, reflecting a 70% increase compared to HKD 439.618 million in the previous year[14]. - The company reported a pre-tax profit of HKD 625.673 million, up 69% from HKD 369.208 million year-on-year[14]. - The net profit for the period was HKD 510,540 thousand, representing an 83.6% increase compared to HKD 277,746 thousand in the previous year[109]. - Basic and diluted earnings per share rose to HKD 0.66, compared to HKD 0.32 for the same period in 2022[109]. - The company's total assets as of June 30, 2023, were HKD 6,254.0 million, a slight decrease from HKD 6,370.5 million at the end of 2022[28]. - The company's capital debt ratio improved to 0.89 as of June 30, 2023, from 0.94 at the end of 2022[28]. Revenue Growth and Market Expansion - User data indicates a growth in customer base by 10%, reaching 1.5 million active users[6]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[6]. - Future guidance estimates a revenue growth of 10-15% for the full year 2023[6]. - The mainland China market contributed HKD 6,607,111 to total revenue, a substantial increase from HKD 2,616,959, marking an increase of around 152%[125]. - Revenue from tobacco leaf products sales reached HKD 7,469,818, up from HKD 3,824,917, indicating an increase of about 95% year-over-year[124]. - Revenue from new tobacco products amounted to HKD 33,895, compared to HKD 26,729 in the previous year, reflecting a growth of approximately 27%[124]. Product Development and Innovation - New product development includes the launch of a reduced-risk product line, expected to contribute an additional HKD 200 million in revenue by the end of 2024[6]. - The company has allocated HKD 100 million for research and development in innovative tobacco products over the next two years[6]. - A new marketing strategy is being implemented, aiming to increase brand awareness by 30% within the next year[6]. Operational Efficiency and Supply Chain - The company aims to enhance operational efficiency and strengthen supply chain resilience amid market fluctuations[15]. - Strategic acquisitions are being considered to enhance supply chain efficiency, with a focus on companies in the tobacco processing sector[6]. - The management is actively seeking potential acquisition targets to bolster growth and improve overall operational management[15]. Related Party Transactions - Total revenue from related party transactions at the issuer level amounted to HKD 6,448.2 million, representing approximately 83.3% of total revenue during the reporting period[32]. - Total procurement from related party transactions at the issuer level was HKD 1,015.8 million, which is approximately 14.6% of total procurement[32]. - The pricing policy for imported tobacco leaf products includes a markup of 6% over the price paid to suppliers, with a 3% markup for specific brands[35]. - The company has established exclusive operating and long-term supply framework agreements for both imported and exported tobacco leaf products, which are indefinite unless terminated by the company[34][37]. Financing and Investments - Financing costs surged by 140% to HKD 72.4 million, compared to HKD 30.1 million in the same period of 2022, mainly due to increased bank loan interest rates[25]. - The net proceeds from the initial public offering amounted to approximately HKD 904 million, with a net price of approximately HKD 4.72 per share[93]. - 45% of the net proceeds, equating to HKD 406.8 million, is allocated for investments and acquisitions that complement the group's business[34]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending June 30, 2023[102]. Employee and Corporate Governance - The employee costs incurred by the group for the six months ended June 30, 2023, amounted to HKD 28.3 million, compared to HKD 22.8 million in 2022[92]. - The group had 36 employees in Hong Kong and 232 employees in Brazil as of June 30, 2023, compared to 31 and 214 employees, respectively, as of December 31, 2022[92]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[103]. - The independent non-executive directors confirmed that the continuing connected transactions were established in the ordinary and usual course of business and were fair and reasonable[88].

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 7,743,999, representing a 100% increase compared to HKD 3,869,412 for the same period in 2022[2]. - Gross profit increased by 70% to HKD 745,345 from HKD 439,618 year-on-year[2]. - Profit for the period attributable to equity holders of the company rose by 109% to HKD 456,952, compared to HKD 218,978 in the previous year[2]. - The company reported a pre-tax profit of HKD 625,673, which is a 69% increase from HKD 369,208 in the same period last year[2]. - Basic and diluted earnings per share increased to HKD 0.66 from HKD 0.32, reflecting a significant growth in profitability[2]. - The group reported customer contract revenue of HKD 7,743,999 thousand for the six months ended June 30, 2023, a significant increase from HKD 3,869,412 thousand in the same period of 2022, representing an increase of approximately 100%[15]. - Revenue from leaf products sales reached HKD 7,469,818 thousand, up from HKD 3,824,917 thousand year-on-year, indicating an increase of about 95%[15]. - The group generated revenue of HKD 6,607,111 thousand from mainland China, a substantial rise from HKD 2,616,959 thousand in the previous year, reflecting an increase of approximately 152%[16]. - The gross profit for the reporting segments totaled HKD 745,345 thousand, with a pre-tax profit of HKD 625,673 thousand for the six months ended June 30, 2023[19]. - The net profit for the six months ended June 30, 2023, was HKD 277,746,000, reflecting a rise from HKD 218,978,000 in the same period of the previous year, which is an increase of about 26.8%[21][27]. Financial Position - Total assets as of June 30, 2023, amounted to HKD 5,761,811, a slight decrease from HKD 5,900,080 at the end of 2022[6]. - Net assets increased to HKD 2,616,489 from HKD 2,237,590 at the end of 2022, indicating a strong financial position[9]. - The group’s total assets for the reporting segments amounted to HKD 6,254,002 thousand, while total liabilities were HKD 3,637,513 thousand as of June 30, 2023[19]. - The company reported a total asset value of HKD 6,370,521,000 as of June 30, 2023, compared to HKD 5,541,491,000 as of December 31, 2022, showing growth in asset base[21]. - The total liabilities as of June 30, 2023, were HKD 4,132,931,000, compared to HKD 4,132,931,000 as of December 31, 2022, indicating stability in the company's financial structure[22]. - The capital debt ratio improved to 0.89 as of June 30, 2023, from 0.94 at the end of 2022[50]. Expenses and Costs - The company’s financing costs surged by 140% to HKD 72,365 from HKD 30,125, highlighting increased borrowing costs[2]. - Administrative and other operating expenses rose by 29% to HKD 76,978 compared to HKD 59,898 in the previous year[2]. - The company incurred financing costs of HKD 72,365,000 for the six months ended June 30, 2023, compared to HKD 30,125,000 for the same period in 2022, reflecting an increase in financing expenses[23]. - Financing costs surged by 140% to HKD 72.4 million, primarily due to increased bank loan interest rates[46]. Other Income - Other income net increased by 51% to HKD 29,671 from HKD 19,613, contributing positively to overall financial performance[2]. - The net other income for the six months ended June 30, 2023, was HKD 29,671,000, compared to HKD 19,613,000 for the same period in 2022, indicating an increase in other income sources[22]. Market and Product Performance - The new tobacco products segment generated revenue of HKD 33,895 thousand, compared to HKD 26,729 thousand in the previous year, marking an increase of approximately 27%[15]. - The group’s revenue from the export of cigarettes was HKD 240,131 thousand, a significant increase from HKD 17,568 thousand in the same period last year, representing an increase of approximately 1265%[15]. - The group’s operations in Brazil generated revenue of HKD 275,459 thousand, reflecting the ongoing expansion in that market[19]. - The export volume of cigarettes surged to 562,943 thousand sticks, an increase of 497,969 thousand sticks or 766% year-on-year[38]. - Revenue from cigarette exports reached HKD 240.1 million, an increase of HKD 222.6 million or 1,267% year-on-year[38]. Strategic Initiatives - The company plans to continue its dual-driven development strategy focusing on both external and internal growth, including potential acquisitions[41]. - The company aims to optimize its supply chain and expand into new markets to enhance business development opportunities[42]. IPO and Fund Utilization - The net proceeds from the IPO amounted to approximately HKD 904 million, with a net price of about HKD 4.72 per share[55]. - 45% of the net proceeds, approximately HKD 406.8 million, is allocated for investments and acquisitions to enhance the group's business[56]. - 20% of the net proceeds, approximately HKD 180.8 million, is designated to support the ongoing development of the group[56]. - Another 20% of the net proceeds, also approximately HKD 180.8 million, is intended for strategic collaborations with other international tobacco companies[56]. - 10% of the net proceeds, amounting to HKD 90.4 million, is allocated for general working capital[56]. - 5% of the net proceeds, approximately HKD 45.2 million, is aimed at improving procurement and sales resource management[56]. - As of June 30, 2023, a total of HKD 459.4 million has been utilized from the net proceeds[56]. - The remaining funds are expected to be used by June 30, 2025, according to the group's best estimates[56]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[60]. - The company is ultimately controlled by China National Tobacco Corporation[63]. - The company was listed on the Hong Kong Stock Exchange on June 12, 2019[63]. - The company operates subsidiaries including China Tobacco International Brazil Ltd., established on June 6, 2002[63]. - The board of directors includes both executive and independent non-executive members[65]. - The company adheres to the Corporate Governance Code as per the Hong Kong Listing Rules[63]. - The company has established various committees including the Nomination Committee and the Remuneration Committee[64]. - The company’s shares are classified as ordinary shares[64]. - The company operates in multiple regions including Hong Kong and Macau[63]. - The company uses multiple currencies including Hong Kong dollars, US dollars, and Brazilian reais[64]. - The company is subject to the Listing Rules of the Hong Kong Stock Exchange[63].

Financial Performance - The revenue for the year 2022 was HKD 8,324,205,089, an increase of 3.2% compared to HKD 8,064,115,900 in 2021[33] - Gross profit for 2022 reached HKD 843,935,426, significantly up from HKD 445,228,752 in 2021, indicating a strong improvement in profitability[33] - The net profit after tax for 2022 was HKD 464,158,522, representing a 49% increase from the adjusted 2021 net profit of HKD 311,370,660[33] - The pre-tax profit for 2022 was HKD 615,628,975, down from HKD 773,736,022 in 2021[33] - The company achieved a profit of HKD 464 million for the year ended December 31, 2022, representing a year-on-year growth of 49%[35] - Profit attributable to equity holders reached HKD 375 million, a year-on-year increase of 26%[36] - Total revenue for the year ended December 31, 2022, grew by 3% to HKD 8,324.2 million, while costs decreased by 2% to HKD 7,480.3 million[47] - Gross profit for the year increased by 90% to HKD 843.9 million, driven by vertical integration and growth in the import of cigar leaf products[47] - The profit attributable to equity holders for the year increased by 26% to HKD 374.9 million, up from HKD 296.8 million in 2021, while the group's profit rose by 49% to HKD 464.2 million from HKD 311.4 million in 2021[52] Expenses and Costs - Administrative and other operating expenses rose to HKD 187,254,172 in 2022, compared to HKD 138,847,877 in 2021[33] - Financing costs increased to HKD 85,042,976 in 2022, up from HKD 25,593,469 in the previous year[33] - Administrative and other operating expenses rose by 35% to HKD 187.3 million, primarily due to increased transportation costs and the inclusion of CBT's performance post-acquisition[47] - For the year ended December 31, 2022, the group's financing costs increased by 232% to HKD 85.0 million compared to HKD 25.6 million in 2021, primarily due to increased bank loan interest and other financing costs[48] Market Strategy and Outlook - The company is focused on expanding its market presence and enhancing its product offerings through strategic acquisitions and partnerships[5] - Future outlook includes continued investment in new product development and technology to drive growth in international markets[5] - The company plans to enhance its capital operation platform and pursue strategic acquisitions aligned with its development goals[38] - The company aims to strengthen its market share in the new tobacco products sector and increase the contribution of its proprietary brands[38] - The company is actively expanding its new tobacco product export business and optimizing its supply chain to mitigate geopolitical risks[38] - In 2023, the company plans to enhance the development of new tobacco products and restore rolled cigarette exports, while optimizing the supply chain and exploring strategic partnerships for mergers and acquisitions[46] - The company aims to strengthen its market presence in emerging markets and enhance brand competitiveness in the international market for new tobacco products[46] Supply Chain and Procurement - The company is exploring long-term supply agreements with tobacco leaf customers and suppliers to improve supply chain stability[38] - The company is responding to the upgrading trend in the domestic cigar market by enhancing its procurement capabilities and negotiating better pricing for cigar leaf materials[38] - The company has established exclusive and long-term supply framework agreements for both imported and exported tobacco leaf products, which are indefinite unless terminated by the company[64][67] - The procurement transaction amount for tobacco leaf export business during the reporting period was HKD 2,066.7 million, accounting for 100% of the total procurement volume for tobacco leaf export business[73] - The procurement transaction amount for cigarette export business during the reporting period was HKD 131.6 million, approximately 100% of the total procurement volume for cigarette export business[80] - The procurement transaction amount for new tobacco products export business was HKD 107.0 million, accounting for 100% of the total procurement volume in this segment[85] Related Party Transactions - The total revenue from related party transactions at the issuer level amounted to HKD 5,425.2 million, representing approximately 65.2% of the total revenue for the reporting period[62] - The total revenue from related party transactions at the subsidiary level was HKD 1,093.0 million, accounting for about 13.1% of the total revenue for the reporting period[62] - The total procurement from related party transactions at the issuer level was HKD 2,445.1 million, which is approximately 28.3% of the total procurement for the reporting period[62] - The total procurement from related party transactions at the subsidiary level reached HKD 1,666.8 million, representing about 19.3% of the total procurement for the reporting period[62] Corporate Governance and Compliance - The company has maintained compliance with the Corporate Governance Code throughout the fiscal year ending December 31, 2022[191] - The board consists of nine members, including independent non-executive directors, ensuring compliance with listing regulations[195] - The independent non-executive directors confirmed that the continuing connected transactions were conducted in the ordinary and usual course of business and on terms that are fair and reasonable[121] - The independent financial advisor confirmed that the permanent continuing connected transactions were conducted according to the relevant pricing regulatory notices and the company's internal pricing policies[124] - The independent financial advisor also verified that fixed-term continuing connected transactions and those with Alliance One Group were established under fair and reasonable terms[124] Sustainability and Social Responsibility - The company is committed to sustainable development and has integrated ESG management into its operations, focusing on reducing energy consumption and enhancing supplier management[39] - The management team emphasized the importance of sustainability initiatives, aiming for a 40% reduction in carbon footprint by 2025[129] - The company has established an environmental, social, and governance (ESG) team to oversee compliance with relevant laws and regulations[153] Employee Relations - The group emphasizes the importance of employee relations and aims to provide competitive compensation and professional training to attract and retain talent[151] - The group has adopted a performance-based bonus system as part of its employee compensation management policy[151] Shareholder Information - The company proposed a final dividend of HKD 0.20 per share for the year ended December 31, 2022, compared to HKD 0.17 per share for the previous year[156] - As of December 31, 2022, the company's distributable reserves amounted to HKD 653.6 million, an increase from HKD 413.3 million as of December 31, 2021[157] - The ultimate controlling shareholder, China Tobacco, has committed not to engage in any business that competes with the company, ensuring compliance as of December 31, 2022[170] Future Investments and Financial Planning - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $100 million allocated for potential deals[129] - The company has not identified any significant legal or regulatory violations that could materially impact its operations in Hong Kong or Brazil as of December 31, 2022[155] - There are no plans for significant investments or capital assets as of December 31, 2022[182]

Financial Performance - China Tobacco International (HK) Company Limited reported a significant increase in revenue, reaching HKD 1.2 billion, representing a 15% year-over-year growth[10]. - For the six months ended June 30, 2022, the company's revenue was HKD 3,869,411,941, a slight increase of 1.5% compared to HKD 3,813,759,146 for the same period in 2021[20]. - Gross profit for the same period was HKD 452,449,775, significantly up from HKD 188,194,326, reflecting a gross margin improvement[20]. - The company reported a net profit of HKD 277,746,275 for the first half of 2022, down 54.5% from HKD 609,364,157 in the previous year[20]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were HKD 0.32, compared to HKD 0.89 for the same period in 2021, a decline of approximately 64.0%[116]. - Operating profit for the six months ended June 30, 2022, was HKD 399,332,747, significantly higher than HKD 111,115,154 in the previous year, indicating a substantial increase in operational efficiency[116]. - The pre-tax profit for the same period was HKD 369,208,146, resulting in a net profit of HKD 277,746,275 after tax expenses of HKD 91,461,871[138]. Market Expansion and Strategy - The company has expanded its user base, with a 20% increase in active customers, totaling 500,000 users[12]. - For the upcoming fiscal year, the company projects a revenue growth of 10% to HKD 1.32 billion, driven by new product launches and market expansion strategies[14]. - China Tobacco International plans to enter new markets in Southeast Asia, targeting a 5% market penetration within the next two years[10]. - The company is investing HKD 200 million in research and development for new tobacco products, aiming to capture a larger market share[8]. - The company has established a strategic partnership with local distributors to enhance its distribution network, aiming for a 10% increase in market reach[14]. Supply Chain and Acquisitions - The company has completed the acquisition of a 51% stake in Alliance One Brazil, enhancing its supply chain capabilities[12]. - The company is focusing on strategic acquisitions and enhancing supply chain collaboration to improve profitability and operational efficiency[21]. - The group plans to continue identifying and analyzing potential acquisition targets to enhance operational efficiency and effectiveness[27]. - The group aims to strengthen collaboration with China Tobacco Brazil and its subsidiaries to improve overall operational efficiency[27]. Financial Position and Assets - The total asset value of the group as of June 30, 2022, was HKD 6,208.2 million, an increase from HKD 4,766.6 million as of December 31, 2021[91]. - The group's cash and cash equivalents as of June 30, 2022, were HKD 2,024.1 million, up from HKD 1,659.0 million as of December 31, 2021[91]. - The total liabilities of the group as of June 30, 2022, were HKD 4,106.3 million, compared to HKD 2,783.2 million as of December 31, 2021[91]. - The capital-to-debt ratio as of June 30, 2022, was 1.00, an increase from 0.66 as of December 31, 2021[91]. Revenue Sources and Transactions - Total revenue from related party transactions during the reporting period amounted to HKD 2,606.5 million and HKD 583.7 million, representing approximately 67% and 15% of total revenue, respectively[41]. - The company has established exclusive operating and long-term supply framework agreements with China National Tobacco Corporation for both import and export tobacco leaf businesses, which are indefinite unless terminated by the company[46]. - The company has entered into long-term supply agreements with various entities under China National Tobacco Corporation for the export of tobacco leaf products[46]. Sustainability and Corporate Governance - China Tobacco International is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 15% over the next three years[12]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ending June 30, 2022[109]. - The independent non-executive directors confirmed that the related party transactions were conducted on normal commercial terms and were fair and reasonable[87]. Employee and Operational Changes - As of June 30, 2022, the company had 30 employees in Hong Kong and 199 employees in Brazil, an increase from 181 employees in Brazil as of December 31, 2021[96]. - The group did not engage in any significant acquisitions or disposals during the six months ended June 30, 2022[92].

Financial Performance - The company reported a revenue of HKD 8,064,115,900 for the year ended December 31, 2021, a significant increase from HKD 3,484,672,085 in 2020, representing a growth of approximately 131%[113] - Gross profit for the year was HKD 445,228,752, compared to HKD 141,593,676 in the previous year, indicating a gross margin improvement[113] - The company achieved a net profit after tax of HKD 717,361,844, up from HKD 106,120,529 in 2020, reflecting a substantial increase of approximately 576%[113] - For the year ended December 31, 2021, the group's revenue increased by 131% to HKD 8,064.1 million compared to HKD 3,484.7 million in 2020[127] - Gross profit for the same period rose by 214% to HKD 445.2 million, driven primarily by a significant increase in imported tobacco products[128] - Net profit, excluding the gain from the deemed disposal of joint ventures, increased by 193% to HKD 311.4 million, up from HKD 106.1 million in 2020[135] Acquisition and Expansion - The successful acquisition of China Tobacco Brazil was completed, marking the company's first cross-border acquisition post-listing, enhancing its operational capabilities[115] - The acquisition of China Tobacco International Brazil was completed, with revenue from tobacco leaf exports to regions outside China reaching HKD 314.7 million, a year-on-year increase of 8,182%[125] - The acquisition of the entire issued and outstanding quotas of China Tobacco Brazil was completed on November 26, 2021, for a total consideration of USD 63.4 million[138] - The acquisition of China Tobacco Brazil Group is expected to enhance the company's business diversification, reduce reliance on CNTC Group, and improve overall profitability and bargaining power[139] - The group aims to enhance its capital operation platform and actively seek potential acquisition targets to achieve leapfrog development[117] - The group plans to actively seek acquisition opportunities aligned with its strategic goals, focusing on potential mergers and restructuring[126] Tobacco Export and Import Business - The tobacco leaf export business reached a historical high, while the import business showed signs of recovery, demonstrating effective supply chain management[115] - In 2021, the group exported 101,663 tons of tobacco leaf products, a year-on-year increase of 19,650 tons, representing a growth of 24%[120] - The group's revenue from tobacco leaf exports reached HKD 2,296.8 million, up by HKD 363.0 million, a growth of 19%[120] - The import volume of tobacco leaf products surged to 97,248 tons, a significant increase of 74,782 tons, marking a growth of 333%[121] - Revenue from tobacco leaf imports reached HKD 5,177.9 million, an increase of HKD 3,827.1 million, representing a growth of 283%[121] - The group exported 463,460 thousand sticks of cigarettes, an increase of 33,606 thousand sticks, reflecting a growth of 7%[123] - Revenue from cigarette exports was HKD 173.2 million, up by HKD 15.1 million, a growth of 10%[123] - The export volume of new tobacco products reached 454,770 thousand sticks, a substantial increase of 289,780 thousand sticks, representing a growth of 176%[124] - Revenue from new tobacco product exports was HKD 101.6 million, an increase of HKD 63.3 million, reflecting a growth of 165%[124] Financial Position and Debt - The group’s net current assets as of December 31, 2021, stood at HKD 1,585.3 million, compared to HKD 1,553.8 million at the end of 2020[137] - As of December 31, 2021, the total assets of the group amounted to HKD 4,766.6 million, an increase from HKD 3,804.8 million in 2020[143] - The group reported a total debt of HKD 2,783.2 million as of December 31, 2021, compared to HKD 2,058.8 million in 2020, resulting in a capital debt ratio of 0.66[143] - The group had a cash and cash equivalents balance of HKD 1,659.0 million as of December 31, 2021, slightly up from HKD 1,634.3 million in 2020[143] - The group’s financing costs surged by 1,607% to HKD 25.6 million, primarily due to interest expenses from bank loans and lease liabilities[132] Employee and ESG Initiatives - Employee career development and health have been prioritized, with the implementation of a multi-channel career development system and professional training programs[115] - The company is actively engaging in ESG initiatives, including supplier traceability management and promoting green development practices[115] Related Party Transactions - The group’s related party transactions during the reporting period generated total revenue of HKD 5,178.9 million, accounting for approximately 64.2% of total revenue[149] - The procurement from related parties amounted to HKD 2,963.7 million, representing about 38.9% of total procurement during the reporting period[149] Pricing Policies and Framework Agreements - The company has established a long-term supply framework agreement for the export of tobacco leaf products, with a procurement transaction amount of HKD 2,234.1 million, representing 100.0% of the total procurement volume for the export business[158] - The pricing policy for imported tobacco leaf products is based on a formula where the price (P) is determined as P = A × 1.06, with A being the price from suppliers[151] - The company has established exclusive long-term supply framework agreements for the export of cigarettes with various entities under China National Tobacco Corporation[159] - The pricing formula for procurement of tobacco leaf products is P = A × (1 - applicable markup ratio), where A is the selling price to independent third parties[156] - The pricing policy for high-end and other categories of duty-free cigarettes stipulates that the export price for high-end cigarettes must not be lower than 35% of the domestic non-tax transfer price, while for other duty-free cigarettes, it must not be lower than 45%[165] - The company has established exclusive and long-term supply framework agreements for new tobacco products export business with relevant entities under China National Tobacco Corporation, with no specified termination date unless terminated by the company[170] Agency Agreements and Future Projections - The company has established a new tobacco leaf export agency agreement for the period from November 17, 2021, to November 16, 2024, to continue promoting its tobacco leaf sales agency business[184] - The projected transaction amounts for the leaf product sales agency business are capped at HKD 4.7 million, HKD 0.4 million, HKD 3.0 million, HKD 3.3 million, and HKD 3.6 million for the respective periods from 2021 to 2024[187] - The estimated transaction amounts under the offshore supply framework agreements are projected to not exceed HKD 2,800 million for the year ending December 31, 2021, and HKD 490.2 million for the period from January 1, 2024, to November 16, 2024[180]