HQ
China
OWNERSHIP
State Owned
RANK
15
(out of 15)
FINAL SCORE
0.19
(out of 5)

Company Overview

CNTC is the world’s largest tobacco manufacturer, focusing on its home market of China. The company’s cigarette volume sales exceed two trillion sticks per year. CNTC is also active in cigars. It is noted that CNTC has engaged in heated tobacco products for export but no substantive presence was registered between 2017 and 2019. The company continues to make significant capital investments in high-risk product manufacturing facilities. During the review period 2017-2019, CNTC’s capital expenditure was focused on upgrading manufacturing, warehousing, and logistics.

Stance on Harm Reduction

CNTC has not established a harm reduction policy or commitment. At the 2017 National Tobacco Working Conference, the general manager of CNTC, Chengxing Ling, stated: “In 2017, it is necessary to create new advantages in international competition for new types of tobacco products. We will closely follow the policies, technologies and market developments of new types of tobacco products globally and conduct in-depth product research and development of major new types of tobacco products.” CNTC claims to be cooperating with the government in reaching the target of reducing the smoking rate for people over 15 years old to 20% by 2030. However, the increase of its annual cigarette sales targets in 2018 implied an opposite position.

Notable Performance

0

Strategy and Management

CNTC has stated no commitment to tobacco harm reduction and does not prioritize a transition to reduced-risk products.
0

Product Sales

CNTC is the largest cigarette manufacturer in the world and it registered volume sales growth in cigarettes during the review period.
0

Capital Allocation

CNTC allocates financial resources mainly to the development of high-risk products in China.
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Product Offer

CNTC offers only high-risk tobacco products, predominantly cigarettes.
0

Marketing

CNTC does not offer a marketing policy outside of conforming to Chinese laws and regulations.
0

Lobbying and Advocacy

As a state-controlled company, CNTC has close interactions with the government and regulators. However, it does not disclose how this relationship is managed, or the details of any dialogue.

Net Value Sales

In 2019
High-Risk Products
100.0%
Reduced-Risk Products
0.0%

Products Offered

In 2019
High-Risk Products
3
Reduced-Risk Products
0

Capital and R&D Investment

Over 2017-2019
High-Risk Products
99.7%
Reduced-Risk Products
0.3%

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