CTIHK (06055) has reached an agreement with China Tobacco International to maintain its position in the duty-free cigarette business in China.

CTIHK(06055) announced that the company has noticed the release of the "Management Measures for Tobacco Products in the Domestic Duty-Free Market (Draft for Solicitation of Comments)" by the State Tobacco Monopoly Administration on July 25, 2025. According to the preliminary understanding of the company, based on the regulations and current laws in China, the only enterprise with the qualification for state-operated trade in tobacco imports and exports is China Tobacco International Limited. The company is actively in negotiations with China Tobacco International, and has reached a consensus on maintaining the company's position as the exclusive distributor of cigarettes purchased from China Tobacco Corporation Group for sale exclusively in the domestic duty-free market in China (domestic duty-free cigarette business). The implementation of this consensus depends on: (1) the effectiveness of the regulations, with China Tobacco International becoming the sole wholesaler in the domestic duty-free market; and (2) the company must comply with applicable laws and regulations, including the "Listing Rules" and any applicable exemptions. Currently, the company is engaged in the exclusive cigarette export business, procuring cigarettes from China Tobacco Corporation Group for sale exclusively in duty-free markets in Thailand, Singapore, Hong Kong, Macau, and the domestic duty-free market in China. In the fiscal year 2024, about 10% of the group's revenue came from the domestic duty-free cigarette business in China. The regulations do not affect the company's exclusive cigarette export business outside of the domestic duty-free cigarette business in China.