China Tobacco International (HK) Company Limited (Stock Code: 6055) announced that the State Tobacco Monopoly Administration (STMA) will implement the Measures for the Administration of Tobacco Products in Domestic Duty-free Markets (the Regulations) on January 1, 2026, with a six-month transition period until July 1, 2026. According to the announcement, China Tobacco International Inc. (CTI) is designated as the sole enterprise qualified for state trading in export of cigarettes to the Chinese Domestic Duty-free Market.
Under existing Framework Agreements, the company procures cigarettes from relevant CNTC Group entities (the Counterparties) and exports them to designated Exclusive Operating Regions for Cigarettes, covering both the Overseas Duty-free Market and the Chinese Domestic Duty-free Market. The Stock Exchange previously granted waivers (the Existing Waivers) exempting these transactions from certain Listing Rule requirements. The company stated that these waivers remain effective notwithstanding the new Regulations.
For Counterparties lacking export qualifications, the announcement indicates that CTI will act as agent under newly established agency agreements to facilitate cigarette exports to the Chinese Domestic Duty-free Market. Costs resulting from these arrangements will be borne by the Counterparties. The company reported no expected material impact on revenue from the Exclusive Cigarettes Export Business and confirmed that pricing policies and overall transaction terms remain unchanged.
The existing state tobacco monopoly regime continues to necessitate the company’s arrangement with connected entities for the procurement and export of duty-free cigarettes. The company emphasized that the unique long-term structure of the Framework Agreements, coupled with the Existing Waivers, will help maintain stable operations and sustain revenues in the Exclusive Cigarettes Export Business.
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