State-Owned Factories: The Creators Behind a Legacy of Classic Puerh Teas
- LIU Huayu
- Jun 7
- 10 min read
Updated: Jun 8
Copyright reserved by Liu Huayu
Table of Contents
2.1. Kunming Tea Factory
2.2. Menghai Tea Factory
2.3. Xiaguan Tea Factory
2.4. Pu'er Tea Factory
3.1. Kunming Tea Factory
3.2. Menghai Tea Factory
3.3. Xiaguan Tea Factory
3.4. Pu'er Tea Factory
1. 唛号: The Mark Number
Although it is often known among overseas Puerh drinkers as a recipe code or formula number, its official name is mark number (唛号). In 1976, to standardize Puerh tea for export, Yunnan Province introduced this mark number system. The most common format is a four-digit code for compressed Puerh tea (such as cakes, bricks, and Tuochas), and it breaks down as follows:
✅ First two digits: the year the recipe was created, not the year of production.
For example, even if a tea was produced in 1998, if it follows the 1975 recipe, it would still carry the code 75.
✅ Third digit: the raw material grade used in the blend.
Puerh tea grades are based on the tenderness of the harvest: the lower the number, the more tender the harvest. A recipe made with raw material of grade 7 or 8 might be marked as 7 or 8 accordingly.
✅ Fourth digit: the code of the original factory that produced it:
1 = Kunming Tea Factory; 2 = Menghai Tea Factory; 3 = Xiaguan Tea Factory; 4 = Pu’er Tea Factory, etc.
❇️ For cakes pressed with iron mold, known as “Tiebing (iron cake)”, the mark number will have a letter “T” added in front, for example: T8613, T8633, T8653, T8673.
Other Formats
Besides the 4-digit codes, there are also:
✅ 5-digit codes for loose-leaf Puerh
First two digits = year of production; next two digits = raw material grade; final digit = factory code (e.g., 75341: recipe from 1975, grades 3–4, Kunming Tea Factory).
✅ 3-digit codes with a letter for small-package tea
First letter = packaging type (e.g., Y for small pack), first two digits = leaf grade, third digit = factory code (e.g., Y562 = small-pack tea, grade 5–6, Menghai Tea Factory).
Important Notes
Not all mark numbers follow these rules strictly. Starting from the late 1990s, the tea market was fully liberalized, leading to the emergence of numerous non-standard mark numbers, like 7262, 7222, 7042, and 7062, which are unrelated to raw material grade or the year of the recipe. For example, although some people believe that 7262 would be a recipe developed in 1972, in reality, the fermentation technique for Shou Puerh had not yet been mastered in 1972 — it only began to emerge gradually in 1973 — so it is unlikely that the recipe dates back to 1972.
Classic Examples
7542: recipe created in 1975, using grade 4 raw material, produced by Menghai Factory;
7572: recipe created in 1975, using grade 7 raw material, produced by Menghai Factory;
7581: recipe created in 1975, using grade 8 raw material, produced by Kunming Factory;
8653: recipe created in 1986, using grade 5 raw material, produced by Xiaguan Factory;
Etc.
2. The Historical Major Factories
Kunming Tea Factory (1), Menghai Tea Factory (2), Xiaguan Tea Factory (3), and Pu’er Tea Factory (4) were the four major producers in Yunnan Province, which created numerous classic recipes, establishing the legacy of Puerh tea we have today.
No factory codes beyond 4 were originally assigned at that time; however, after the systemic reforms in the 1990s, some experts and capital from these four major factories gradually moved into independent private enterprises, assigning themselves factory codes, which led to duplication of some codes beyond 4. For example, Fuhai Tea Factory (Menghai) assigned itself the code 6, while Gucha Tea Co., Ltd. (Pu’er) also uses the same code.
Nowadays, it is commonly recognized that:
1 = Kunming Factory; 2 = Menghai Factory; 3 = Xiaguan Factory; 4 = Pu’er Factory; 5 = Fengqing Factory; 6 = Fuhai Factory; 7 = Heilongtan Factory; 8 = Haiwan Factory; 9 = Langhe Factory; 0 = Liming Factory.
2.1. Kunming Tea Factory
Kunming Tea Factory traces its roots back to 1939, when it was founded as the Fuxing Experimental Tea Factory. After the founding of the PRC, it was nationalized in 1950 and renamed Kunming Tea Processing Factory. It wasn’t until 1960 that it officially became known as Kunming Tea Factory.
One of Kunming Tea Factory’s greatest contributions to Puerh history was the pioneering of modern Shou (ripe) Puerh fermentation techniques. In the 1970s, due to strong market demand from Hong Kong for “red liquor” Puerh, a type of artificially fermented Puerh imitating the flavor of well-aged Sheng (raw) Puerh, the Yunnan Tea Import & Export Corporation organized technical exchanges in Guangzhou, sending technicians from the Kunming, Menghai, and Xiaguan tea factories to learn fermentation practices. Technician Wu Qiying of Kunming Factory eventually developed the innovative “cold water fermentation” method after multiple experimental trials, successfully adapting the wet piling (Wo Dui) technique to Kunming’s climate. This breakthrough drastically reduced the time needed to convert Sheng Puerh into “aged Puerh” (later named Shou Puerh), eliminating bitterness and creating a smoother, richer flavor. Mrs Wu Qiying is now regarded as the founding figure of modern Shou Puerh fermentation technology.
In 1975, a critical point in Puerh history, Kunming Factory compressed a batch of fermented Puerh brick using a blend of grade 8 (20%), grade 9 (30%), and grade 10 (50%) raw materials. This marked the birth of the first batch of Shou Puerh bricks mass-produced through artificial fermentation — the #7581 Shou brick — which was specially made for export to the Hong Kong market at the time, although it appears to have come slightly later than the #7572 Shou cake created by Menghai Tea Factory. Considered the “Mother of Shou Puerh,” the #7581 formula became a market staple throughout the 1980s and 1990s and remains a classic in the Puerh world even today.
2.2. Menghai Tea Factory
In 1940, the Fohai Experimental Tea Factory was established, serving as the predecessor of Menghai Tea Factory. It was the first modern mechanized tea factory in China, but was soon forced to halt production in 1942 when Japanese forces invaded Burma, as it was located near the China–Burma border. In 1952, the Fohai Tea Factory resumed operations under the Yunnan branch of China Tea Company. Subsequently, Fohai County was renamed Menghai County, and the factory accordingly adopted the name Menghai Tea Factory.
Menghai Factory began Puerh fermentation tests since the late 1960s and, in 1973, visited the Guangdong Tea Import & Export Corporation to learn wet piling fermentation techniques together with Kunming Factory and Xiaguan Factory. In 1975, Menghai Factory developed its iconic #7572 Shou Puerh cake, launched the same year as Kunming Factory’s #7581 Shou Puerh brick. While the #7572 cake is considered an exemplar of Menghai-style Shou Puerh, its #7542 formula is an excellent Sheng Puerh recipe, from which many celebrated teas have been created. In addition, Menghai Factory has also produced many other highly acclaimed tea series, making it undoubtedly a powerhouse in the Puerh world.
Besides creating classic teas, Menghai Factory has also served as a cradle for tea experts, nurturing numerous entrepreneurs and influential Puerh brands. Zou Bingliang (founder of Haiwan Tea), Ruan Dianrong (founder of Six Famous Tea Mountains), and many other renowned tea figures all once worked at the factory.
2.3. Xiaguan Tea Factory
The predecessor of Xiaguan Tea Factory was the Kang-Zang Tea Factory, established in 1941, which mainly processed Jincha (mushroom-shaped tea) for distribution to the Tibetan region and Tuocha (nest-shaped tea) for Sichuan Province, as “Zang” means Tibet and “Kang” refers to Sichuan. After the founding of the PRC, the Kang-Zang Tea Factory was nationalized and came under the administration of the China Tea Corporation Yunnan Branch. In 1950, it was renamed Xiaguan Tea Factory. By 1955, several historic private tea businesses in the Xiaguan region, including Yongchangxiang, Fuchunhe, and Maoheng etc., were incorporated into the Xiaguan Factory, significantly strengthening its capabilities.
During the planned economy era, the major state-owned tea factories in Yunnan were assigned specific production roles: Kunming Factory focused on brick tea; Menghai Factory specialized in cake tea; Xiaguan Factory was tasked with producing Jincha, Tuocha and Bianxiao Cha (teas sold to border regions); and the subsequently established Pu’er Factory produced more loose-leaf tea. Today, Tuocha and Jincha remain the signature products of Xiaguan Factory, with its most representative products including the mushroom-shaped Jincha under the “Baoyan” brand, the Teji and Jiaji Tuocha under the “Songhe” brand, and the Qizi Bing (also known as Chi Tse Beeng), likewise under the “Xiaguan” brand.
2.4. Pu’er Tea Factory
Among the four major state-owned tea factories in Yunnan, the Kunming, Menghai, and Xiaguan Factories are often referred to as the “Three Magnates of Puerh,” while the Pu’er Factory has been comparatively less recognized. From the establishment of the Yunnan Branch of China Tea Corporation in 1950 until the 1970s, Yunnan’s tea production plans were primarily carried out by these three factories, as the Pu’er Factory had not yet been founded. The three magnates each had distinct production roles and were largely able to meet both domestic and export demands, maintaining a stable and workable system for over two decades. But why was there a need to break up this balance and establish a fourth state-owned tea factory? The answer lies in the historical context of the time.
In the early period, China Tea Corporation Yunnan Branch was not entitled to export tea. Instead, Puerh tea export was handled by the Guangdong Tea Import and Export Company. In addition to the Puerh from Yunnan, the Guangdong Company also sourced tea from Vietnam’s northern border regions. However, in 1973, as Sino-Vietnamese relations deteriorated, the central government stopped endorsing the procurement of tea from Vietnam, resulting in a shortfall in export supply. This was one of the key background factors.
Moreover, China Tea Corporation Yunnan Branch obtained independent export permissions in 1972, which allowed it to export without the involvement of the Guangdong Company, greatly encouraging tea cultivation and production across the province. Around the same time, after learning fermentation techniques in Guangdong, the three magnates finally developed Shou Puerh in 1975, which further increased the need for greater production capacity. As a result, the state-owned Pu’er Tea Factory was established that same year.
At the time, the existing factories already had clearly defined production roles: Kunming focused on brick tea, Menghai on cake tea, and Xiaguan on Tuocha. Therefore, Pu’er Factory was assigned a very specific role from the outset: to produce loose-leaf tea and to carry out the fermentation process of Shou Puerh. The loose-leaf tea produced by Pu’er Factory was primarily allocated to the other three factories for blending and compression, effectively making it a supplier of semi-finished raw materials. As a result, Pu’er Factory did not develop as many representative products of its own as the three magnates. This lack of distinct product identity is part of the reason why Pu’er Factory has appeared less prominent among the four major state-owned factories, although this does not imply a lower level of technology.
3. Evolution of the Former State-Owned Factories
With the passage of time, the state-owned Puerh factories no longer exist in their original form. However, through institutional reform and restructuring, all of them have continued as influential leading enterprises under different names, and of course, they still produce their classic recipes. Let’s sort out the connections between today’s Puerh magnates and the former state-owned factories.
3.1. Kunming Tea Factory
Kunming Tea Factory underwent multiple periods of suspension, restructuring, and mergers, especially when tea was removed from the planned economy system in the early 1990s. Subsequently, due to cost pressures and broader economic reforms, Kunming Factory declared bankruptcy in 1992. However, it did not fully cease operations in practice: some employees continued production independently by accepting private orders, including the classic #7581 brick.
After clearing out its remaining inventory, Kunming Factory officially announced the end of its operations in 1994 (although some sources claim 1996 or 1998). As Kunming Factory was a directly affiliated unit of China Tea Company (CNNP or Zhong Cha), during the following period China Tea authorized various other tea factories to use its “Zhongcha (中茶)” brand. Nonetheless, some argue that the “Zhongcha” trademark belonged to the parent company China National Native Produce & Animal By-products Import & Export Corporation (CNAPC, national level), and not to China Tea Company (provincial level); accordingly, that all “Zhongcha” brand items produced between 1994 and 2005, including the #7581 bricks, should be considered fakes.
At the end of 2005, China Tea rebuilt the Kunming Factory, now known as China Tea Yunnan Company and equipped with its own ecological tea plantations. It regained the rights to the “Zhongcha (中茶)” trademark in 2006 and, in the same year, resumed the production of #7581 brick using the 1998 inventory raw materials, among other products.
3.2. Menghai Tea Factory
In 1985, China relaxed restrictions on the production and sales autonomy of state-owned tea factories, allowing them to produce and sell tea independently after fulfilling their planned production quotas. Beginning in 1987, as the national tea market was gradually liberalized, China Tea Company issued a notice reclaiming ownership of the “Zhongcha” trademark, requiring all factories to cease using the brand unless they paid a licensing fee.
As a result, many tea factories in Yunnan began registering their own trademarks, sparking a wave of “trademark fever.” This period saw the registration of several now-famous brands, including Fengqing Factory’s “Feng (凤)” brand, Menghai Factory’s “Dayi (大益)” brand, and Xiaguan Factory’s “Songhe (松鹤)” and “Nanzhao (南诏)” brands, etc. Among them, the “Dayi” trademark (officially “Tae Tea”) was successfully registered in June 1989, marking the beginning of Menghai Factory’s independent brand identity, although the state-owned factory did not start using it until 1996.
Due to poor management, Menghai Factory suffered years of financial losses and was on the verge of collapse since the late 1990s. In 2004, the factory underwent restructuring and was sold to Yunnan Bowin Investment, controlled by Wu Yuanzhi, bringing an end to its state-owned era. Since then, the restructured Menghai Factory has operated as a privately owned company under the Dayi Group, starting a new and prosperous chapter.
3.3. Xiaguan Tea Factory
Xiaguan Factory's oldest brand “Baoyan” was registered in 1941 and had been used since the Kang-Zang Tea Factory era, but it was discontinued in 1952 due to regulations from the China Tea Corporation requiring all tea factories to use the unified “Zhongcha” trademark. From 1952 to 1990, all products from Xiaguan Factory bore the "Zhongcha" label.
Xiaguan Factory re-registered the “Baoyan” trademark in the early 1990s, when tea factories across Yunnan began registering their own trademarks. Thus, Xiaguan Factory entered its phase of brand development and also registered the new “Songhe (松鹤)”, “Baoyan (宝焰)” and “Xiaguan (下关)” brands. The "Songhe" brand has been widely used for Tuocha products, while "Baoyan" is frequently used for mushroom-shaped Jincha.
In April 2004, following an equity auction, Xiaguan Factory was restructured from a state-owned enterprise into a joint-stock private company, Yunnan Xiaguan Tuocha (Group) Co., Ltd. Among the four major state-owned tea factories, Xiaguan Factory is now the only one that still retains its original name.
3.4. Pu’er Tea Factory
Amid the “trademark fever,” Pu’er Factory registered the “Puxiu" (or "Pursue", 普秀) trademark in 1994.
In 2004, Hong Kong Changtai Industrial acquired Pu’er Tea Factory through a corporate restructuring and established Yunnan Puer Tea (Group) Co., Ltd. The company continued using the “Puxiu” brand, also known as Puxiu Group.
This collection of the most emblematic recipes from each of the four historic factories offers a journey back to the classic flavors of a bygone era while showcasing the distinct styles and craftsmanship of each factory.
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