CHONGQING, China, March 26, 2020 /PRNewswire/ -- China Xiangtai
Food Co. Ltd. (NASDAQ: PLIN) (the "Company" or the "PLIN"), an
emerging growth company primarily engaged in pork processing in
China, today announced that the
Company, through its subsidiary Chongqing Jinghuangtai Enterprise
Management Consulting Co., Ltd., entered into a non-binding
Memorandum of Understanding (the "MOU") to acquire 51% controlling
interest in Chongqing Ji Mao Cang Feed Co., Ltd.("JMC"), a private
enterprise specializing in feed raw material sales and providing
feed formula solutions, to expand the southwest market in
China.
Pursuant to the MOU signed on March 23,
2020, PLIN proposed to acquire 51% controlling interest of
JMC, one of the leading feed sales companies in southwest
China. JMC has more than 200
customers in farm industry and nearly 100 customers in feed
production industry. In 2019, JMC sold more than 200,000 tons of
soybean meal, exceeding RMB 500
million (approximately $70,000
USD) in sales. Given the Company's revenue of fiscal year
2019 was $102,545,152USD, PLIN is
expected to increase 70% of revenue through this acquisition.
Ms. Jiaping Zhou, General Manager
of JMC, commented, "We are pleased to have an opportunity to start
a partnership with a Nasdaq listed company, and it is regarded as
an essential milestone in JMC's history. JMC stands to benefit
greatly from PLIN's senior experience and resources in the food
industry, and values PLIN's continued involvement as we look to
further expand JMC's profitability with the development of
production capability and enhancements to our distribution
channels."
Ms. Zeshu Dai, Chairwoman and CEO of China Xiangtai Food,
commented, "We are enthusiastic about partnering with JMC to
continue accelerating the growth of the Company. This move is in
line with our growing strategy of solidifying our industry position
by gaining additional market share and expanding our product
portfolio. With JMC's capability in feed raw material and formula
solutions, we can improve our industrial chain and our
competitiveness to position well for the expansion."
Mr. Xiaohui Wu, the President and
Director of China Xiangtai Food, added, "The integration between
the Company and JMC will further strengthen PLIN's dedication in
assuring people's basic needs, as well as highlight both companies'
efforts to fight for respective industry leading position in
Chongqing City and Sichuan Province. The robust marketplace not
only creates a new business model for industry chain enterprises to
unite and strategically increase profitability through maximizing
capability allocation, but also boosts competitiveness by providing
related supporting services throughout the industry chain."
About Ji Mao Cang Feed Co., Ltd.
Founded in 2012, Chongqing Ji Mao Cang Feed Co., Ltd("JMC"). is
a private enterprise specializing in feed raw material sales and
feed formula solutions. JMC has entered strategic alliances with
large grain and oil companies such as Sinograin, COFCO, Cargill,
Good Ocean, and Louis Dreyfus, and
has obtained general distributorship in Chongqing, Sichuan and other places. JMC has more than
200 customers in farm industry and nearly 100 customers in feed
production industry. In 2019, JMC had sold more than 200,000 tons
of soybean meal and reported a revenue of RMB 525 million and a profit of RMB 15 million.
About China Xiangtai Food Co., Ltd.
Headquartered in Chongqing,
China, China Xiangtai Food Co., Ltd, is a food company
primarily engaged in pork processing. The Company's operations span
key sections of the pork processing value chain, including
slaughtering, packing, distribution, and wholesale of a variety of
fresh pork meat and parts. Primarily focused on pork products, the
Company also offers other fresh and processed products, including
beef, lamb and poultries. Through its core values, the Company is
committed to maintaining the highest standards of food safety,
product quality, and sustainability to provide high-quality,
nutritious, and tasty food in a responsible manner through its
portfolio of trusted brands. For more information, please
visit http://ir.plinfood.com/.
Forward-Looking Statements
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. 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.
For more information, please contact:
Company Contact
Mr. Xiaohui Wu, President
China Xiangtai Food Co., Ltd.
Phone: +86-1860-117-0697
Email: ir@plinfood.com
Investor Relations Contact
Ms. Tina Xiao, President
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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SOURCE China Xiangtai Food Co. Ltd.