Issue link: https://read.dmtmag.com/i/1547352
50 tobaccoasia Issue 6, 2026 November / December By Timothy Donahue Huabao International is adding finished heated tobacco products to an increasingly broad heat- not-burn (HNB) supply chain in Indonesia. The Hong Kong-listed company will acquire 100% of PT Broad Far Indonesia for approxi- mately RMB90 million (US$13.35 million), adding an Indonesian manufacturer of heat-not-burn tobacco sticks and an OEM/ODM supplier to the group. The acquisition comes as Huabao is already expanding production of HNB-related tobacco materials in Indonesia and ramping up r&d across the heated tobacco category. Under agreements signed on September 25, Huabao's wholly owned Nocton International Limited will acquire 99% of PT Broad Far Indonesia from Broad Far (Hong Kong) Limited for US$13.2196 million. Another Huabao subsidiary, World Concept Global Limited, will acquire the remaining 1% from Broad Far Limited. Upon completion, PT Broad Far Indonesia will become a wholly owned subsidiary of Huabao International, and its financial results will be consolidated into the group. PT Broad Far Indonesia was established in October 2021 and manufactures and sells HNB tobacco sticks in Indonesia. It also provides OEM/ODM manufacturing services. The transaction takes Huabao further downstream into a tobacco business that has histori- cally focused heavily on ingredients and materials, including reconstituted tobacco leaf, flavors, capsules, and other tobacco-related materials. That business has increasingly shifted toward next-generation tobacco products. Huabao said in its 2026 interim report that it has developed an r&d program focused on HNB and oral tobacco. Its HNB work includes cigarette core materials, cigarette design, and adaptation to heating systems, which the company says provides technical coverage from raw materials through finished products. Huabao Expands Heated Tobacco Footprint in Indonesia Huabao has made significant investments in Indonesia, including PT Warlbor International Indonesia, its principal reconstituted tobacco leaf manufacturing facility. Credit: Huabao "Huabao International is adding finished heated tobacco products to an increasingly broad heat-not- burn supply chain in Indonesia."