China Tobacco International secures multi-year offshore sales deal

China Tobacco International (HK) Company Limited announced a new Offshore Sales of Tobacco Leaf Products Framework Agreement with buyers linked to CNTC, its ultimate controlling shareholder. The agreement, effective from August 29, 2025, until December 31, 2027, will see the group supply tobacco leaf products, including tobacco leaf, stem, scrap, reconstituted tobacco, and cut tobacco, to entities such as Bang Kang Cigarette Factory, Myanmar, Viniton Group Co., Ltd., and Lao-China Hongta Good Luck Tobacco Co., Ltd. These transactions are classified as continuing connected transactions under Listing Rules.

The proposed annual caps for these sales are HK$55.89m for the period from August 29, 2025, to December 31, 2025. This is projected to increase to HK$328.39m for the year ending December 31, 2026, and further to HK$380.04m for the year ending December 31, 2027. The directors anticipate a stable increase in exported tobacco leaf products due to rising demand and strategic business development.

The company's board, excluding Mr. Shao Yan due to his executive positions at CTIG, approved the agreement, deeming its terms fair, reasonable, and in the company’s and shareholders' best interests. The transactions will be subject to reporting and announcement requirements but are exempt from independent shareholders' approval as percentage ratios are between 0.1% and 5%.