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HONG KONG SAR –
Media OutReach Newswire – 17 October 2024 – Hong Kong Chief Executive John Lee Ka-chiu issued the “Policy Address”, announcing a reduction in liquors tax: the custom duty for liquors with import prices over HK$200 will be reduced from 100% to 10%, and the portion HK$200 and below remains unchanged.
ZJLD Group Inc. (“ZJLD” or the “Company”, SEHK stock code: 06979. HK) expressed high appreciation for this new tax reduction policy. It not only benefits the entire liquors industry in Hong Kong but also has the potential to stimulate the local Food and Beverage, Tourism, and other high-value-added industries, thereby benefiting the local economy as a whole.
Chief Executive John Lee said that the adjustment of the liquors tax is a measure to “consolidate and enhance” Hong Kong’s position as an international trade center. The Chief Executive has also referenced the successful experience of abolishing the wine tax in 2008 to boost the wine trade and added that such a measure would promote the trade in the liquor business and drive the development of high-value-added industries such as Logistics and Warehousing, Tourism, and Premium F&B Business.
Data shows that compared to 2008, wine’s import and re-export value increased by 375% in 2023. In 2009, the number of wine trade-related companies in Hong Kong increased by 350, creating 1,000 new jobs. The industry’s revenue increased by 35% over two years after implementing the duty-free policy. Wine import volumes have also maintained steady growth, with the number of companies engaged in the wholesale of alcoholic beverages increasing from 310 in 2008 to 800 in 2023, according to government statistics. Meanwhile, the number of retail stores selling alcoholic drinks has increased from 140 in 2008 to 520 in 2023. Hong Kong ranks as the world’s third-largest wine auction center.
Mr. Paul Ng, the Executive Director and Head of International Operations of ZJLD Group, expressed, “The Hong Kong Government’s decision to lower the import duty on liquors will undoubtedly be a major boost for the industry, especially for the local premium baijiu market and its international trade. As the largest listed baijiu company headquartered in Hong Kong, we are well-positioned to seize this opportunity. In addition to relying on Hong Kong as a financing platform, we also view Hong Kong as a gateway for our global development. Many of the Group’s high-end products will benefit from the relevant policies,” He further analyzed, “On the one hand, we will pass on the benefits of the tax cuts to the market, allowing those who love and want to try Zhenjiu products to enjoy value-for-money and high-quality baijiu, thereby further expanding our brand’s influence and enhancing the capital market’s valuation of our Group. On the other hand, as an international financial center and a major tourism destination, Hong Kong’s wine auction, premium F&B, and hotel industries are thriving, with strong demand for quality baijiu. The tax reduction policy will undoubtedly drive further development of the entire industry ecosystem, thereby benefiting the public.”
Hong Kong is the springboard for Chinese baijiu to go global, and the adjustment of its tariff policy directly affects the initiative for Chinese baijiu companies to showcase and market their products in Hong Kong, thereby driving the growth of Chinese baijiu exports. ZJLD believes that this reduction in liquors tax will inject new vitality into the local and national baijiu market, promote the export competitiveness of baijiu, and help Hong Kong further consolidate its strategic position in the global baijiu trade. Meanwhile, many outstanding baijiu brands can leverage Hong Kong’s internationalized platform to radiate across Southeast Asia and global markets, jointly promoting the Chinese baijiu culture to the world and comprehensively strengthening international recognition and influence.
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