CHONGQING, China, April 3, 2020 /PRNewswire/ -- China Xiangtai Food
Co. Ltd. (NASDAQ: PLIN) ("Company" or "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 definitive agreement (the
"Agreement") to acquire a 51% controlling interest in Chongqing Ji
Mao Cang Feed Co., Ltd. ("JMC"). JMC is a private enterprise
specializing in feed raw material sales and providing feed formula
solutions, and the acquisition is expected to help the Company
expand its market in Southwest
China.
As previously announced, the Company entered into a
non-binding Memorandum of Understanding (the "MOU") to acquire 51%
controlling interest in JMC, one of the leading feed suppliers in
southwest China. JMC has more than 200 customers in the farm
industry and nearly 100 customers in the feed production industry.
In 2019, JMC sold more than 200,000 tons of soybean meal,
exceeding $70,000,000 USD
(RMB 500 million) in sales. With the
Company's revenue of $102,545,152 in its last fiscal year,
PLIN expects this acquisition to increase its gross revenue by 70%
on an annual basis.
Pursuant to the Agreement, subject to certain milestones to be
achieved by JMC, the Company agreed to issue to JMC a total of
2,000,000 shares of the Company's ordinary share for consideration
equal to $7,420,000 over the next two
years.
Ms. Zeshu Dai, Chairwoman and CEO of China Xiangtai Food,
commented, "We are thrilled to enter into a definitive agreement
with JMC. Combining JMC's capability in feed raw material and
formula solutions with PLIN's commercial strength as a leading
provider of pork products will make a dramatic impact on our
penetration and expansion into China's southwest market. Looking ahead, we
will continue to implement the Company's growth strategy to create
value for our shareholders."
Mr. Xiaohui Wu, the President and Director of China
Xiangtai Food, added, "The acquisition of JMC will further enable
the Company to respond to the growing demand for pork in
China. We believe that our
business and profitability will benefit from this expanded vertical
integration of the industry supply chain and network. Further, this
transaction will accelerate our already impressive growth in this
vital market."
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 the farm industry and
nearly 100 customers in the 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.