CTIHK released its interim results, with shareholders' profit attributable to shareholders of HKD 706 million, an increase of 9.79% year-on-year

According to the Zhitong Finance APP, China Tobacco Hong Kong (06055) announced its interim results for the six months ending June 30, 2025, with revenue of HKD 10.316 billion, an increase of 18.52% year-on-year; profit attributable to shareholders of HKD 706 million, an increase of 9.79% year-on-year; basic earnings per share of HKD 1.02; and a proposed interim dividend of HKD 0.19 per share. For the six months ending June 30, 2025, the group's import volume of tobacco leaf products was 97,881 tons, an increase of 2,360 tons year-on-year, representing a growth rate of 2.5%; operating revenue was HKD 8.399 billion, an increase of HKD 1.597 billion year-on-year, representing a growth rate of 23.5%; gross profit was HKD 687 million, a decrease of HKD 57.6 million year-on-year, representing a decline of 7.7%. The increase in revenue was mainly due to the overall sales price of tobacco leaf products during this period being higher than the same period last year. The decline in gross profit was mainly affected by supply and demand dynamics, as the cost of tobacco leaves purchased from CBT increased more than the increase in sales prices, resulting in a decrease in gross profit margin compared to the same period last year. For the six months ending June 30, 2025, the group's export volume of tobacco leaf products was 38,476 tons, an increase of 4,347 tons year-on-year, representing a growth rate of 12.7%; operating revenue was HKD 1.156 billion, an increase of HKD 238 million year-on-year, representing a growth rate of 25.9%; gross profit was HKD 63.1 million, an increase of HKD 35 million year-on-year, representing a growth rate of 124.1%. The significant growth in performance was mainly due to: (1) strengthening the connection between supply and demand, actively expanding new markets and new customers, resulting in an increase in the export volume of tobacco leaf products year-on-year; and (2) accurately grasping the market supply and demand situation, continuously optimizing pricing strategies, effectively increasing the overall sales price and gross profit margin of tobacco leaf products during this period, leading to significant year-on-year growth in revenue and gross profit from the tobacco leaf export business