China Tobacco International (HK) Company Limited (CTIHK) has alerted investors that preliminary unaudited figures point to a sharp slowdown for the six months ending 30 June 2026. Management expects group revenue to contract by approximately 25%–30% year on year, while profit attributable to equity shareholders is projected to fall by about 10%–15%.

The decline stems from two main factors: 1. Tobacco leaf imports: Tighter international trade conditions and shipment-timing issues curtailed volumes from key sourcing regions such as the United States, eroding both revenue and gross profit. 2. Cigarette exports: Process adjustments in China’s domestic duty-free channel delayed shipment schedules, dragging on sales in this segment.

The profit warning contrasts with CTIHK’s robust growth in recent years. From 2020 to 2025, revenue expanded from HK$3.48 billion to HK$14.58 billion, a compound annual growth rate (CAGR) of 33%, while profit attributable to equity shareholders climbed from HK$0.11 billion to HK$0.98 billion, a 56% CAGR. The group has broadened its tobacco-leaf footprint, launched cigar export platforms, and strengthened domestic duty-free partnerships, signing agreements with Zhuhai Duty Free International Limited and Shenzhen Duty Free (HK) Company Limited during the current period.

Management reiterated confidence in long-term prospects, citing ongoing efforts to refine global supply-chain layouts, deepen overseas market access, and enhance operational efficiency.

CTIHK will publish its full interim results by 31 August 2026. Investors are advised to exercise caution when dealing in the company’s shares.