China Tobacco Hong Kong: Annual profit attributable to parent company expected to increase by no less than 30%, with the growth of gross profit from export of new tobacco products being one of the main reasons

China Tobacco Hong Kong: Annual profit attributable to parent company expected to increase by no less than 30%, with the growth of gross profit from export of new tobacco products being one of the main reasons

On December 16, China Tobacco Hong Kong (06055) announced that the group expects to achieve an increase of not less than 30% in the profit attributable to the company's equity holders in the year ending December 31, 2024 (this year). One of the main reasons for the increase is the increase in the gross profit amount of the export business of new tobacco products.

On December 16, China Tobacco Hong Kong (06055) released a positive profit forecast. Due to the deepening of existing businesses, efforts to develop new businesses, and continuous improvement of comprehensive profitability, the group expects to achieve an increase of not less than 30% in the profit attributable to the company's equity holders in the year ending December 31, 2024 (this year) compared with 2023.

The announcement stated that the main reasons for the increase in the company's profit attributable to equity holders this year compared with the 2023 forecast are as follows:

(1) In terms of tobacco leaf product import business, the proportion of Brazilian tobacco leaf products with higher gross profit margin arriving at Hong Kong this year increased compared with the same period last year, and the overall sales unit price increased, which led to an increase in the gross profit amount of this business;

(2) In terms of cigarette export business, the Group continued to optimize the cigarette business structure, increase the proportion of self-operated business, effectively improve the gross profit margin, and achieve a significant increase in the gross profit amount of this business;

(3) In terms of Brazilian operating business, the proportion of finished tobacco leaf sales with higher sales unit price increased significantly this year, and the sales unit price of Brazilian tobacco leaf products increased, which led to a significant increase in the gross profit amount of this business;

(4) In terms of tobacco leaf product export business, the Group actively organized marketable sources, optimized pricing strategies, effectively improved gross profit margin, and achieved a significant increase in the gross profit amount of this business;

(5) In terms of new tobacco product export business, the Group continued to optimize its operating model and continuously improved gross profit margin, which led to an increase in the gross profit amount of this business.