Our Businesses
Consumer Products
SIHL owns two premier consumer products companies -- Nanyang Tobacco and Wing Fat Printing -- both well established with excellent reputation and prominent position in the tobacco and printing market respectively. The consumer products sector continued to provide steady earnings and cash flow for SIHL and supported its long term business development.
Nanyang Brothers Tobacco Co. Ltd
SIHL holds 100% equity interests in Nanyang Tobacco. The revenue and net profit of Nanyang Tobacco during the year were HK$1,815 million and HK301 million, respectively, representing an increase of 26.8% and 65.3%, respectively. This is mainly due to its commitment to the strategy of “lowering of inventories and prioritizing the price”, which has effectively guided various markets to manage their inventories, and the implemented measures have shown promising initial results.
Nanyang Tobacco is actively expanding its business in the international market. In 2023, its Malaysia factory was officially put into operation. This is Nanyang Tobacco’s first overseas factory. It has cooperated with large cigarette companies to complement each other's advantages, laying a solid foundation for future incremental growth.
In addition, Nanyang Tobacco continues to enhance its production capacity through new technologies and continuously improve production techniques and craftsmanship. By introducing advanced production equipment, automated systems, and digital technology to switch production lines, the company can adapt to and meet market demands more quickly and effectively.
The Wing Fat Printing Co. Ltd
SIHL holds 94.29% equity interests in Wing Fat Printing. Wing Fat Printing's revenue and net profit during the year was HK$1.549 billion and HK$84.91 million, respectively, decreasing by 12.2% and 31.4% year-on-year, respectively. The decrease in profits was mainly due to the overall shrinkage of the end-consumer market after the epidemic and weakening demand from core customers of the paper-packaging and the moulded-fibre businesses. Faced with various challenges, Wing Fat Printing promptly adjusted its strategy and reversed the decline of its core business in the first half of the year to a certain extent by inwardly converging its core customer service competitiveness. In addition, the Company has vigorously promoted cost reduction, efficiency improvement, and expense control, and relied on technological innovation to fully promote the incubation of new environmentally friendly products and cultivate the blue ocean market in an orderly manner.