Core Insights - The high-end cigarette market is facing a significant decline in demand, with inventory turnover extending from 15 days to 45 days, indicating a liquidity crisis for retailers [1][3] - In contrast, low-end cigarettes priced below 20 yuan are experiencing a surge in sales, with a reported 8% increase in volume [3][13] Group 1: Market Trends - High-priced cigarette sales are projected to drop by 12% year-on-year in 2024, while low-priced cigarettes are gaining traction [3] - The shift in consumer behavior is attributed to increased financial pressures on workers, leading to a preference for cheaper alternatives [5][13] Group 2: Consumer Behavior - Many consumers, particularly those with high living costs and debt burdens, are opting for the cheapest cigarettes available [5][13] - The trend of consumption downgrade is evident among middle-class individuals who are forced to switch from premium brands to more affordable options due to financial constraints [5][13] Group 3: Regulatory and Cultural Factors - Stricter anti-smoking policies are being implemented across over 30 cities, contributing to a decline in high-end cigarette purchases [7] - The traditional office culture of sharing high-end cigarettes is diminishing, as more individuals prioritize health and refuse offers of cigarettes [9] Group 4: Demographic Shifts - Younger generations, particularly those born in the 90s and 00s, show a lower inclination to smoke compared to older generations, further impacting the demand for high-end cigarettes [11][13] - The overall decrease in smoking rates among youth is linked to rising cigarette prices and changing social dynamics [13]

Core Viewpoint - The introduction of new testing equipment at the Yunnan Tobacco Leaf Re-drying Co., Ltd. Xuanwei Factory marks a significant upgrade in tobacco leaf research, transitioning from traditional methods to a more advanced, multi-dimensional approach that incorporates mechanical and optical properties, thereby enhancing the quality and efficiency of tobacco processing [1][3][11] Group 1: Technological Advancements - The Xuanwei Factory has introduced a texture analyzer and a comprehensive tobacco testing platform, which signifies a shift from basic chemical analysis to a more detailed examination of mechanical characteristics and digital color detection [1][3] - Traditional methods focused on chemical composition and physical structure, but lacked the assessment of mechanical and optical indicators that affect the intrinsic quality of tobacco leaves [3][10] - The new equipment allows for precise measurement of key indicators such as tensile strength, adhesion, penetration strength, shear strength, and leaf stem bonding strength, overcoming the limitations of subjective visual assessments [5][10] Group 2: Data Collaboration - A collaborative database has been established between Xuanwei Factory and Zhejiang Zhongyan, which has enriched the quality characteristics database with over 2,000 sets of mechanical data and 6,000 sets of comprehensive testing data for the 2024 roasting season [7][8] - This data-driven approach enhances the efficiency of formula organization and provides robust support for the potential of "Li Qun" brand raw materials [8][10] Group 3: Process Optimization - The mechanical data obtained from the texture analyzer aids in providing targeted parameter adjustments for the re-drying process, helping to maintain the structural integrity of tobacco leaves and reduce breakage rates [10] - The optical data from the comprehensive testing platform contributes to controlling color stability, ensuring consistent quality in the appearance of finished tobacco products [10][11] - The collaboration between Xuanwei Factory and Zhejiang Zhongyan aims to build a joint research laboratory to further enhance innovation and establish a replicable model for raw material research [10][11]