Urban Tea (NASDAQ:MYT)
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1 Year : From Feb 2019 to Feb 2020
CHANGSHA, China, June 18, 2019 /PRNewswire/ -- Urban Tea Inc. (the "Company", "we" or "Urban Tea") (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, announced today that the Company plans to establish a production, training and research institute center (the "Center") located at No.7, Kangpeng Road, Liuyang Economic Development Zone, Hunan 410331, China.
The Center is part of the Company's effort to expand its production, training, research and product development capabilities to meet the growing demand for the Company's products and provide streamlined logistical support. The Company expects to replicate its business model in selected foreign markets.
The Company estimates it will invest RMB10 million to set up the Center, and anticipates that the Center will cover an area of over 2,000 square meters. The Center is expected to include a research and development center, a training center, a production center in accordance with relevant State Food and Drug Administration regulations, a fridge facility and food warehouse. The Company intends for the Center to focus on research and development on new beverages, light meals and bakeries to be offered by the Company in the future. The Company designed the Center to meet the needs of the growing business ecosystem of food production, food refrigeration, cryopreservation, distribution, and product quality in and around the Hunan Province. The Center will also be equipped to launch multiple product promotions across different regions, product distribution and centralized employee training.
"The Center is expected to begin construction in June 2019 and be fully operational by December 2019," said Kan Lu, Chief Financial Officer of Urban Tea. "The construction of the Center is an important milestone in the Company's development process by centralizing many of the Company's functions, and thus allowing us to reducing costs and continue our growth. In the future, we plan to establish production Centers in other cities in China. We strive to lay a solid foundation and expand rapidly while maintaining and steadily building upon our infrastructure."
About Urban Tea, Inc.
Urban Tea, Inc. is an emerging specialty tea product distributer and retailer headquartered in Changsha City, Hunan Province, China. Through its wholly owned subsidiary, Shanghai Ming Yun Tang Tea Limited ("Shanghai MYT") which controls Hunan Ming Yun Tang Brand Management Co., Ltd. ("Hunan MYT"), the Company currently market a wide range of trendy tea drinks, light meals, and pastries targeting China's new urban generation in Hunan province. Our products are focused on not only their taste but also their aesthetic presentation and health benefits. Our products are currently being offered via our own stores. We expect to start selling our products in our managed and JV stores in mid-2019. For more information, please visit: ir.h-n-myt.com.
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
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SOURCE Urban Tea Inc.