The cigarette factory was built in 1919. Formerly known as "Shang Qingtian" with Shanghai and Tianjin Cigarette Factory, it occupies an important position in the history of tobacco development in China. The current Qingdao Cigarette Factory has developed into the largest cigarette factory in North China with an annual production scale exceeding one million cases. It is a large-scale backbone enterprise in the Chinese tobacco industry and a key state-owned enterprise determined by the State Council.

Qingdao Cigarette Factory is also the first large-scale cigarette industry technological transformation project of Tianxing Enterprises. The project has a total of 28 combined air-conditioning units with a contract value of 13.888 million yuan. It opened the era when Tianxing enterprises greatly occupied the cigarette industry market.