LISHUI, China, Sept. 29, 2021 /PRNewswire/ -- Farmmi, Inc.
("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products
supplier in China, today issued a
CEO update letter detailing an expansion of the Company's
addressable market through an acquisition, and its expectation for increased growth and
expanded opportunities. The full text of the CEO letter follows:
September 29, 2021
Farmmi has made tremendous progress over the past 20 years, as
we have built an industry leading agricultural brand specializing
in the production, processing, marketing and research of edible
fungi products. In addition to continuing deep cultivation of
edible fungi, we are constantly evaluating strategic options to
optimize and expand our business. We thank our investors for your
continued support as we continue to execute our business strategy
and navigate the added recent complexities related to the global
pandemic, logistics challenges and supply chain constraints across
We are in an even stronger position today than at any time in
our history, with improved financial results, a broader product
line, an even stronger balance sheet, and significantly more
meaningful long-term growth opportunities.
Our capital raises in 2021 have provided the momentum we needed to
reach many of the goals we have set for the near term. While
we are encouraged by Farmmi's prior achievements, we are even more
excited about the future as we enter a new phase of accelerating
Some of the bold steps we are taking to create greater
value for the Company and all Shareholders today and in the future
- Acquisition of Jiangxi Xiangbo Agriculture and Forestry
Development Co., Ltd. ("Xiangbo"): We have agreed to
acquire all the shares of Xiangbo for approximately RMB 70 million based on our decision to expand
Farmmi's forest related business. Xiangbo's subsidiary, Yudu County
Yada Forestry Co., Ltd. owns 1,4438.5 mu of economic forest in Yudu
County, Ganzhou City, Jiangxi
Province. Xiangbo primarily uses its acreage in the
cultivation and production of Moso Bamboo, Camellia Oleifera and
Chinese Fir trees.
- Moso Bamboo is the main source of water bamboo
shoots, which are not only a delicious food but also used in the
development of construction and industrial products.
- Camellia Oleifera is similar to olive oil and is
used the production of Camellia oil, which is a popular cooking oil
and used in the production and processing of other food products.
Camellia oil is also a preferred beauty product as a non-greasy,
moisturizer for both skin and hair, able to permeate deep into
lower layers of skin.
- Chinese Fir trees are specimen evergreens capable
of reaching 150 feet high and favored by wood processors for
plywood and many other products.
- The acquisition base effectively ensures the purity and quality
of camellia oil, and the forest land above will also become an
important raw material base for the company to sell high-quality
products in the future. At the same time, as the Chinese government
gradually formulates and implements policies to ultimately achieve
carbon neutral, the economic forests can actively participate in
Carbon-Sink Trade markets and other green markets.
- Expansion of Health and Wellness Business: In
September 2021, we established four
new subsidiaries. Zhejiang Yitang Medical Service Co., Ltd.,
Zhejiang Yiting Medical Technology Co., Ltd., Farmmi (Hangzhou) Health Development Co., Ltd., and
Zhejiang Farmmi Healthcare Technology Co., Ltd. We expect these new
subsidiaries to play an important role in our growth as we
accelerate development of Farmmi's new health and wellness
- Develop Health & Wellness Food Products: The
increasing number of people suffering from sub-health and chronic
diseases is driving higher demand for healthy food that may also
have medicinal properties or benefits. We are developing an
expanded product portfolio relying on the technical support of many
domestic and foreign scientific research institutions, and
developing a food homologous series of products.
- Care Management: As part of our market expansion
strategy, we plan to invest in rehabilitation and elderly care
management providers, which are benefiting from a spike in demand
related to China's aging
population. We expect this will be a major, multi-year trend and
- As an emerging industry, medical and health care is not only a
new driving force for the Company to cultivate and develop, but
also the key for the Company to win new competitive advantages in
- Community Group Purchasing Distribution Network: In
June 2021, we entered into an
investment and cooperation agreement (the "Agreement") to establish
a community group purchasing distribution network. This is an
exciting, rapidly developing business area, in which Farmmi is now
positioned to benefit from expected continued growth, and an
acceleration in the development and standardization of the
agricultural supply chain business.
- The Agreement between one of Farmmi's subsidiaries, and two
other partners, seeks to maximize potential upside by leveraging
each company's business platform and expertise, while reducing each
party's investment risk.
- Farmmi committed to investing RMB 5
million, accounting for 25% of the total registered capital
of the new company, while another partner committed to investing
RMB 12 million, accounting for 60% of
the total registered capital of the new company, and another
committed to investing RMB 3 million,
accounting for 15% of the total registered capital of the new
Taken together, we are excited to be in a new phase of growth
for Farmmi. We are actively pursuing an expanded business strategy,
with greater opportunities for revenue and profit growth, that
builds on the strong platform and demand we are continuing to
benefit from in the edible fungi market worldwide. We appreciate
and are thankful for the support of our
shareholders, as we remain focused on driving revenue and
profit growth, and creating even greater value for Farmmi and all
The above strategic upgrading and industrial layout involves the
fields of "Base - Processing - Supply chain - Medical and health".
Through continuous expansion and optimization, Farmmi will focus on
its main business advantages, continuously extend the industrial
chain, accelerate the layout of the Company's big health ecological
industrial system, improve profitability, and work to achieve
steady development. We believe that after the completion of the
above strategic layout, the Company will stride to a new stage of
development focused on driving revenue and profit growth, and
creating even greater value for Farmmi and all shareholders.
Thank you again to all Shareholders,
Ms. Yefang Zhang, Farmmi's
Chairwoman and CEO
About Farmmi, Inc.
Headquartered in Lishui, Zhejiang, Farmmi, Inc. (NASDAQ: FAMI), is an
agricultural products supplier, processor and retailer of Shiitake
mushrooms, Mu Er mushrooms, other edible fungi and other
agricultural products. For further information about the Company,
please visit: http://ir.farmmi.com.cn/.
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including the potential impact of COVID-19 on our
business within and outside of China and the size of the worldwide mushroom
market. These forward-looking statements involve known and unknown
risks and uncertainties and are based on current expectations and
projections about future events and financial trends that the
Company believes may affect its financial condition, results of
operations, business strategy and financial needs. Investors can
identify these forward-looking statements by words or phrases such
as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to" or other similar expressions. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and the Company
cautions investors that actual results may differ materially from
the anticipated results.
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SOURCE Farmmi, Inc.