Urban Tea (NASDAQ:MYT)
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6 Months : From Aug 2019 to Feb 2020
CHANGSHA, China, Nov. 7, 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 it has completed the acquisition of 51% equity interest in Hunan 39 Pu Tea Co., Ltd. ("39 Pu Tea"), a limited liability company organized under the laws of the PRC, and has entered into a set of variable interest entity agreements with 39 Pu Tea through Mingyuntang (Shanghai) Tea Co. Ltd., the Company's wholly foreign owned subsidiary organized under the laws of PRC.
Founded in April 2011 and headquartered in Hunan, China, 39 Pu Tea is engaged in product research and development, tea production, distribution, and tea cultural heritage projects. Its primary business covers the sale of loose-leaf teas and tea sets, management of tea culture clubs, holding tea ceremony trainings, and other tea-related product development. 39 Pu Tea's current major sales channels are through wholesale, retail, franchises, e-commerce marketplaces, and other storefronts.
Mr. Long Yi, Chief Executive Officer of Urban Tea commented, "The acquisition of 39 Pu Tea is an important strategic step of expanding our tea business operations and diversifying our sales channels; it will also help provide the consistent supplies of tea for our corporate brand stores of 'Your Ladyship Tea' and 'Buoyance Manor'. Upon the completion of the acquisition, the Company will be able to consolidate 39 Pu Tea's financial statements, resulting in an increase to the Company's assets and operating income. The acquisition will also improve and support the Company's existing business line of milk tea and bakery products, the brand's marketing, personnel training, and store operation. By centralizing the kitchen production management, warehousing and distribution system, the Company expects to have a solid foundation to establish an enhanced overall production chain for rapid future growth."
Mr. De'an Hu, CEO of 39 Pu Tea, said, "It is a great honor for 39 Pu Tea to be a part of the public company, Urban Tea. The completion of this acquisition will strengthen our brand recognition and our ability to drive growth together with Urban Tea. As 39 Pu Tea's management, we are confident in Urban Tea's strategic planning and will support our business partner with continuous contributions."
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, Mingyuntang (Shanghai) Tea Co. Ltd ("Shanghai MYT") which controls Hunan Mingyuntang Brand Management Company ("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: http://ir.h-n-myt.com/investor.
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.