The development of Huaiyin Cigarette Factory can be roughly divided into three stages:

1. The first stage (1949-1978)

Huaiyin Cigarette Factory was founded in 1945 In 1949, it was formerly known as the "Huaxin Cigarette Factory". It was composed of three military factories affiliated to the New Fourth Army as the main body and was finally formed in 1949 after several mergers. After the founding of New China, Huaxin Cigarette Factory developed steadily. By 1963, Huaxin Cigarette Factory had 664 employees and produced 52,000 boxes of cigarettes annually. In the same year, China Tobacco Industry Corporation was established in Beijing and implemented "trust management" on the 54 designated cigarette factories across the country at that time. Huaxin Cigarette Factory was renamed "Huaiyin Cigarette Factory" and was affiliated with the Shanghai Branch.

Since the end of 1964, Huaiyin Cigarette Factory has been affiliated to the Bengbu Branch of China Tobacco Industry Corporation and the Huaiyin Light Industry Bureau. In the past 30 years from 1949 to 1978, although the development of Huaiyin Cigarette Factory had twists and turns, it was generally progressing. The main brands produced include "Huaxin", "Grand Canal", "Rose", "Harvest", "Qianli", "Circus", "Bai Feng", etc.

The scale of the tobacco factory has also undergone major changes. In 1949, the Huaiyin Cigarette Factory occupied an area of ??1,266.73 square meters, produced 4,000 boxes of cigarettes, and had 230 employees. By 1978, it occupied an area of ??87,218 square meters, had 1,095 employees, and produced 150,000 boxes of cigarettes.

2. The second stage (1979-1992)

In 1979, the "Rose" cigarettes produced by Huaiyin Cigarette Factory were recognized by the Ministry of Light Industry as a national light industry quality product and became Huaiyin cigarettes. The first "excellent" product in the history of the factory.

In 1982, the State Tobacco Monopoly Bureau and the Jiangsu Provincial Tobacco Monopoly Bureau were established one after another. The Huaiyin Tobacco Monopoly Bureau (branch) was also established on May 1, 1983. The Huaiyin Cigarette Factory was affiliated to Huaiyin City. Tobacco Monopoly Bureau (Branch).

In 1984, "Grand Canal" was rated as "Quality Product of Jiangsu Province".

In 1986, Huaiyin Cigarette Factory was listed as a national large and medium-sized backbone enterprise by the State Planning and Economic Commission.

In 1987, "Grand Canal" and "Rose" were rated as the best-selling brands of cigarettes in the country by China Tobacco Corporation.

In May 1988, Huaiyin Cigarette Factory was upgraded to a county-level unit and affiliated to Jiangsu Tobacco Monopoly Bureau (Company).

In 1992, the "Seventh Five-Year Plan" technical transformation project of Huaiyin Cigarette Factory passed the completion acceptance. In September of the same year, "Grand Canal" and "Romantic" were rated as "Famous Trademarks of Jiangsu Province". In this year, Huaiyin Cigarette Factory developed "Yipinmei" cigarettes to commemorate the opening of the Zhou Enlai Memorial Hall and began to put them on the market.

According to information released by the State Planning and Economic Commission, among the 200 enterprises in the country with the best capital profit tax rate and per capita tax rate in 1985, Huaiyin Cigarette Factory ranked third in capital profit tax rate and average annual profit tax rate. 19. In the same year, Huaiyin Cigarette Factory produced 384,000 boxes of cigarettes, with a total output value of 225 million yuan, and realized a total profit and tax of 190 million yuan, of which the profit was 13.67 million yuan.

In 1987, Huaiyin Cigarette Factory's "Grand Canal" produced 230,000 boxes, ranking third among single brands in the country. The Huaiyin Cigarette Factory produced 430,000 boxes of cigarettes throughout the year, the highest level in history. During this period, Huaiyin Cigarette Factory created historical glory.

In 1988, Huaiyin Cigarette Factory began to show a downward trend. In 1990, its output shrank to 325,000 boxes and began to suffer losses. In 1992, it fell to the lowest point in history. It produced 260,000 boxes of cigarettes throughout the year and suffered losses. 17.68 million yuan.

The reason why Huaiyin Cigarette Factory has undergone such changes is that in the early stages of the "Sixth Five-Year Plan" and "Seventh Five-Year Plan", it was satisfied with the annual increase in output and the steady increase in tax revenue. "The equipment is not afraid of getting old and is sufficient." That’s all; don’t seek newness in products, just be able to produce them” is the passive business philosophy. As a result, the company's information lags behind and investment in technological innovation is ignored. When the market changes, the company's products do not meet the market demand, the products are unsaleable, and they gradually fall into a loss-making situation.

3. The third stage (1993-1999)

From 1993, Huaiyin Cigarette Factory began to climb from the trough and embarked on the road of rapid development. The tax profits created by enterprises have increased by an average annual rate of 100 million yuan. In 1995, 300,000 boxes of cigarettes were produced, with a tax profit of 460 million yuan. In 1998, 300,000 boxes of cigarettes were produced, with a tax profit of 712 million yuan. In 1999, it is expected to produce 300,000 boxes of cigarettes, with a tax profit of 1 billion yuan, of which the profit was 3 billion.

When the economic benefits of the enterprise are growing rapidly, the sales volume of "Yipinmei" is also growing rapidly. It was 500 boxes in 1993, 15,000 boxes in 1995, 80,000 boxes in 1998, and is expected to be 160,000 boxes in 1999. During this period, in addition to "Yipinmei", the main products of Huaiyin Cigarette Factory also included "Huaxi Village", "Romantic", "Wuting", etc. "Huaxi Village" was rated as "National Premium Cigarette" in 1996. Since 1993, the company has faced the market, established a new order of determining production based on sales, accelerated the pace of technological transformation, and accelerated the implementation of famous brand projects, thereby achieving sustained, healthy and stable development.