China Tobacco International (HK) Ltd. signed three sets of agreements with China National Tobacco Corp. (CNTC) affiliates covering tobacco-leaf imports, tobacco-leaf export agency services, and cigarette exports to additional markets. The agreements take effect Jan. 1, 2027, and run through Dec. 31, 2029. The company will continue sourcing tobacco leaf from China Tobacco International (North America), handling export sales for CNTC affiliates, and purchasing cigarettes from four CNTC subsidiaries for overseas markets.
Annual purchase caps for tobacco-leaf imports are HK$1.5 billion ($191.6 million) in 2027, HK$1.75 billion ($222.6 million) in 2028, and HK$1.9 billion ($238.3 million) in 2029. Commission revenue caps for tobacco-leaf export agency services are HK$1.2 million ($156,800), HK$1.4 million ($174,700), and HK$1.5 million ($195,100), respectively. Cigarette purchases for additional export markets are capped at HK$18.2 million ($2.3 million), HK$20.4 million ($2.6 million), and HK$24 million ($3.1 million), respectively, with cigars expected to be the primary product category. The tobacco-leaf import and agency agreements require independent shareholder approval under Hong Kong listing rules. The company expects to issue a shareholder circular within 15 business days.
